Do you know how to integrate the following equation ?

Do you even know what that means, “to integrate” the following equation ?
Do you recognize this equation ?

If the answer to ANY of these questions are no then you have no business trading in wall street. If you are responsible for a pension account, pull it out now and put it into something a little more sane. Legally of course this is not investment advise, but merely a “No duh” statement.

Get to know what and who Quants are on Wall Street. They are not the bad guys. However, they work for the big boys. Because of this, the big banks have so much more of an advantage then you, the little guy/gal, will ever have.

Presenting your movie of the month:
Quants: The Alchemists of Wall Street

This post is technical in nature. It is intended for our more advanced audience.
If this confuses you, please tune into Dollar Dazed every Tuesday on NinaGround.com
to get up to speed on how the banking system works [or rather doesn't]!

According to this report [pdf link], titled:
Federal Reserve Bank
of Atlanta
Financial Statements as of and for the Years
Ended December 31, 2008 and 2007, and
Independent Auditors’ Report

It states, amongst other things including material weaknesses and deficiencies at the fed, that the Federal Reserve uses the FAM account system– as opposed to GAAP.

From this report:

Accounting principles for entities with the unique powers and responsibilities of a nation’s central bank have not been formulated by accounting standard-setting bodies. The Board of Governors has developed specialized accounting principles and practices that it considers to be appropriate for the nature and function of a central bank. These accounting principles and practices are documented in the Financial Accounting Manual for Federal Reserve Banks (Financial Accounting Manual or FAM), which is issued by the Board of Governors. All of the Reserve Banks are required to adopt and apply accounting policies and practices that are consistent with the FAM, and the financial statements have been prepared in accordance with the FAM.

It goes on to say:

Differences exist between the accounting principles and practices in the FAM and generally accepted accounting principles in the United States (GAAP), primarily due to the unique nature of the Bank’s powers and responsibilities as part of the nation’s central bank. The primary difference is the presentation of all SOMA securities holdings at amortized cost rather than using the fair value presentation required by GAAP.
U.S. government, Federal agency, and GSE securities, and investments denominated in foreign currencies comprising the SOMA are recorded at cost, on a settlement-date basis, and are adjusted for amortization of premiums or accretion of discounts on a straight-line basis. Amortized cost more appropriately reflects the Bank´s securities holdings given the System’s unique responsibility to conduct monetary policy.

One other statement that is of interest is that on page three we find this statement:

Because of the inherent limitations of internal control over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

I wanted to bring this quote into the discussion before delving fully into FAM because without this statement, it is easy to want to believe that the reports coming out of the Federal Reserve have some ounce of truth to them.

If this statement is indeed true, and I don’t believe Deloitte & Touche, LLP were dishonest in the least, than shouldn’t an audit of the New York and Washington D.C fed, along with the board of governors be MANDATORY on a 24 month basis.

Let’s return back to the first couple of quotations. The Federal Reserve does not use GAAP according to this report from the Atlanta Fed. They use FAM. How is it that they get away with this? Every business in the US is required to use one account standard, and yet the Fed has their own?

So what’s the big difference?

The difference is that GAAP is based on valuing assets by market value, where as the Federal Reserve gets the amortize their assets. If you though Enron’s mark to market was bad, that isn’t even the 1/2 of what the Fed can legally do!

So, you might be wondering, where can I see the FAM standard?

Look no further than here!

http://www.federalreserve.gov/monetarypolicy/files/BSTfinaccountingmanual2009.pdf

Be sure to save this to your computer.
You can right click and hit save.
I understand this article has been a bit long and highly technical, but please try to understand that this is how the fed gets away with what it gets away with.

You may have seen the tax honesty movement make such claims as:

• There is no law that compels the average American worker to pay an Income tax!
• The IRS is not part of the government!
• Many other random claims.

While there is merit  to the claim that the IRS is not part of the Government, there is no merit to there being no law which compels you to pay an income tax.

Here is our radio show where we break this down for you:
Only the first segment is on the IRS. The last segment reminds you of what we talked about in the first segment.
One of these days we would love to have the time to transcribe these episodes.

Please excuse the background noise, Nina has the nose of a ninja and was scooping up cat poop.
She really is does do animal rescue.

Here are the notes that prove our point:

• Code is law! See BLACK’S LAW DICTIONARY ABRIDGED SEVENTH EDITION:
  code. 1. A complete system of positive law, carefully arranged and officially promulgated; a systematic collection or revision of laws, rules, or regulations <the Uniform Commercial Code>. Strictly, a code is a compilation not just of existing statutes, but also of much of the unwritten law on a subject, which is newly enacted as a complete system of law. — Also termed consolidated laws. 2.(usu. cap.) The collection of laws and constitutions made by order of the Roman Emperor Justinian and first authoritatively published in A.D 529 (with a second edition in 534). Contained in 12 books, the Code is one of four works that make up what is now called the Corpus Juris Civilis. — Also termed (in sense 2.) Legal Code. See CODEX; CORPUS JURIS CIVILIS.
• USC TITLE 26
  See Title 26 Subtitle A > CHAPTER 1 > Subchapter A to find out how you are compelled.
• The only reason why Whitey Harrell got off is because the jurors were unaware that Code means a collection of laws.
• Most of the time, the courts hold that the IRS has the power to enforce its code.
• Here is a FAQ for common IRS Myths. Please note, that I have not read through this entire FAQ and there may be information that I may decided to refute at a latter date. The “signal to noise” ratio on the aforementioned FAQ is more accurate then not.
• P.L. 99-514 (Tax Reform Act of 1986)[PDF] P.L stands for Public Law.
  This further drives a nail into the  “no law” argument.

On the third point I just made, here is the video . Watch carefully, The District Attorney was sloppy.
They failed to inform the Jury what the definition of Code is:

If you still aren’t convinced, then see what happens if you fail to pay your taxes and end up with a competent jury!
By the way, Whitey Harrell is still being harassed by the IRS. He is now in his second lawsuit by the IRS!

See this: http://www.judici.com/courts/cases/case_information.jsp?court=IL054025J&ocl=IL054025J,2006CM215,IL054025JL2006CM215D1
You might argue that the IRS is only allowed due to the 16th Amendment.
True, however even if the 16th Amendment were to be repealed, it wouldn’t matter much anyway.

Since 1933 this country has been bankrupt and has operated under Emergency War Powers Act.
source:Here for now.

We will link to a better source when time allows.

It is worth noting that Ron Paul’s brother  ,Wayne Paul, is on record on Alex Jone’s The Obama Deception as making this same claim.

The real shocker is what it would take to fix this economic mess and the injustices of the Federal Reserve Fiat System; put your “intellectual seat belts” on, it’s a bumpy ride.

At the very least, the following would have to happen:

• Abolishing the Federal Reserve System
• Revoke the UN Charter in San Francisco
• Refuse to Rejoin the UN when it is reformed in a different country
• Account for all of our gold (and get it out of the IMF SDR scam system)
• Re-establish the department of Treasury
• Abolish the Department of Homeland Security (the treasury is a function of DHS since 9/11/2001)
• Come out of a State of Emergency.

There are many more steps then the above listed ones.

However, without all of the above being done, we have very little chance of getting out of this rabbit hole.
I don’t have the space in this blog post to go through all these points.
These points will be address on a one by one basis, so check back soon!

We did a radio show a few weeks back on this topic.
Here is the speech from Dr. Rima E. Laibow, M.D that we used in the show.

Please watch this video and understand what is at stake.
If you in even the slightly way care for your own health and or the health of your family, it is worth all 40 minutes of your time.

Don’t forget to go to http://healthfreedomUSA.org and fill out the petition they have on that site.
It is no ordinary petition, it is a legal challenge to the FDA to stop Codex Alimentarius.

Today’s show was on James Traficant, Jr.

He was a Rep from the state of Ohio from 1985 until 2002.
He was voted out of congress in 2002.

From Wikipedia:

On April 15, he was convicted of 10 felony counts including bribery, racketeering, and tax evasion.

After Traficant’s conviction, the House Ethics Committee heard sworn testimony broadcast on C-SPAN^[13] – from a patent-holding test pilot who has a Top Secret security clearance – about the DOJ’s brush-off his whistle-blowing about tax fraud and Torricelli money-scrubbing by the Cafaro Company of Youngstown, and about criminal prosecutorial misconduct and attempted witness tampering by the DOJ in the Traficant case.

Ohio Congressman [now Governor] Ted Strickland was so disturbed by these sworn and televised allegations of DOJ misconduct that he publicly called for an investigation.^[14] But DOJ ‘internal affairs’^[15] ignored Strickland, never investigating either the sworn military earwitness affidavit^[16] or the attorney billing records ^[17] that corroborated the dates/times of harassing witness tampering phone calls testified to on C-SPAN and in the affidavit.

The House Ethics Committee recommended that Traficant be expelled from Congress. On July 24 the House voted 420-1 to expel him. Gary Condit was the lone “no” vote, and nine members voted “present”. Among those who voted present was Ron Paul. Surpisingly Kucinich voted to expel Traficant.

Although Paul voted present and not against him, he had this to say about Traficant in July of 2002:

source: http://www.house.gov/paul/congrec/congrec2002/cr072402b.htm

“Mr. Speaker, many of Congressman Traficant’s actions are impossible to defend. Mr. Traficant likely engaged in unethical behavior. I hope all my colleagues would join me in condemning any member who abused his office by requiring staff to pay kick-backs to him and/or do personal work as a condition of employment. I also condemn in the strongest terms possible using one’s office to obtain personal favors from constituents, the people we are sent here to represent. Such behavior should never be tolerated.“

“However, the most disturbing accusations concern the possibility that Mr. Traficant was denied basic due process by not being allowed to present all of his witnesses at the trial. This failure raises serious questions whether Mr. Traficant had the opportunity to present an adequate defense. These questions are especially serious since one of the jurors from Mr. Traficant’s criminal trial told the Cleveland Plain Dealer that had he heard the testimony of Richard Detore at Mr. Traficant’s trial, he would have voted “not guilty.”“

Some of Traficant’s most powerful statements:

United States Congressional Record, March 17, 1993 Vol. 33, page H-1303 Speaker-Rep. James Traficant, Jr. (Ohio)

addressing the House: “Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in World history, the U.S. Government.

We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise. It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 – Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only. The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund.

All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers.

With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States.

This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America.

This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: “The U.S. Secretary of Treasury receives no compensation for representing the United States.”

These are later statements by Traficant:

TITLE:EASIER TO FIND ELVIS THAN A GOOD FACTORY JOB HERE IN AMERICA November 12, 1997

Mr. Speaker, Kodak is laying off 10,000 workers. Now if that is not enough to overexpose your most recent negative, Fruit of the Loom is cutting 3,000 jobs and moving to Mexico. Unbelievable. It is getting easier to find Charlie Trie and Elvis than it is to find a good factory job here in America.

Beam me up. I think it is time for Congress to ask themselves a very simple little commonsense question: If our trade program is so great, why does Japan not do it? Think about that.

I yield back all the balance of jobs and say one last thing here. From snapshots to long johns, American workers just keep getting their assets kicked.

SOURCE: http://traficant.com/

house video of the 2002 Traficant proceedings!

part1

part2:

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