WHITE COLLAR CRIME 
AND 
THE ONGOING ECONOMIC DEPRESSION 

Frank Smith (aka "Atocha") 


The question is as obvious as a thousand foot tall pregnant gorilla at a 
championship chess match. Yet, no one has asked THE question. The silence is 
deafening. The silence is absolute because answering the pregnant gorilla 
question truthfully, gives birth to the realities of institutionalized white 
collar crime in our stock markets, corporate America, Wall Street and in the 
highest levels of government and banking. Establishment criminology defines 
government white collar crime as "illegal and socially injurious cooperation 
between governments and corporate institutions..." (White Collar Crime- 
http://faculty.newc.edu/toconnor/392/spy/whitecollarcrime.htm) Widespread, 
systemic and long standing government white collar 'pump and dump' stock 
market crime is precisely what unravels from a truthful answer to the 
pregnant gorilla question. 

Sheeple, sheeple; gather around and listen, for this one is for you! 

THE PREGNANT GORILLA QUESTION 

QUESTION: Why, why, why, did corporate America and Wall Street resort to 
creative, deceptive and fraudulent business accounting and financial 
reporting practices in the mid and late l990s in order to create the 
illusion of phony corporate profits? 

ANSWER: With the hindsight of Enron, Global Crossing, WorldCom, etc., it is 
becoming increasingly conclusive that Corporate America and Wall Street 
resorted to deceptive and WHITE COLLAR CRIMINAL financial reporting 
practices creating phony corporate profits because much of corporate America 
could no longer earn its traditional real business profits due to an ongoing 
business and economic depression! 

THE PREGNANT GORILLA 

The 'Pregnant Gorilla' is a business and economic depression that descended 
on the United States during the mid and late 1990s. Major accounting 
problems involving profits at WorldCom dated at least as far back as 1996. 
And four years ago in June, 1998, Frank A. J. Veneroso wrote about the 
economic and corporate problems already created by the 'strong dollar 
policy". (www.gold- eagle.com/gold_digest_98/veneroso062498.html) Burdened 
with both debt and a political 'strong dollar policy', increasingly United 
States corporations could no longer make their historical real profits and 
corporate America slid into an economic depression. The essence of an 
economic or business depression is when many longstanding business operating 
profits become horrendous operating losses. 

As we now learn, week by week, that is what certainly happened to an 
increasingly significant portion of corporate America during the mid and 
late 1990s. THE 'SMOKING GUN' PROOF OF A REAL ECONOMIC DEPRESSION IS IN THE 
SECRET TRUTHFUL FINANCIAL STATEMENTS OF CORPPORATE AMERICA. 

THE PREGNANT GORILLA GIVES BIRTH TO OFFSPRING 

Business and economic depressions give birth to many very unpleasant 
characteristics that are the unavoidable consequences and 'offspring' of 
substantial business operating losses and bankruptcies. As many business 
profits publicly turn to losses, unemployment rises. Business financial 
statements publicly disclose the corporate financial losses. Bankruptcies, 
repossessions and foreclosures rise. Wall Street 'experts' inform the public 
of the financial problems of each corporation. With the reduction of 
constant dollar tax revenues and the increase in expenses, governments are 
thrown into budget deficits. Many sectors of the stock markets crash. The 
news media routinely features new bankruptcies and stunning new corporate 
operating losses. Consumer confidence is shaken and consumer spending 
contracts. Loan defaults increase. Many banks become financially stressed. 
Homelessness increases. Senate and Congressional oversight committees 
disclose wrongdoing that was driven by corporate financial desperation or 
corporate greed. 

THE POLITICAL DILEMMA 

In the 1990s, it was either truthfully acknowledge an economic depression 
with honest accounting; or, knowingly, deliberately, willfully and 
criminally create phony accounting corporate 'profits' en masse in order to 
conceal from the American people the reality of a business and economic 
depression. It was a political dilemma criminally resolved by a political 
decision of the Clinton Presidency. The same political dilemma faced a newly 
inaugerated President Bush. 

His presidency chose to continue the Clinton deception of a 'strong 
economy'. All the while, the private Federal Reserve Bank maintained a 
policy that accommodated the increase of financially unsound debt necessary 
in order to maintain the prosperity illusion by criminally manipulating and 
price fixing financial markets. The administration and Congress criminally 
manipulated federal budget accounting with "off budget" expenses. The public 
was deceived with criminally falsified economic data. The consequences of 
the Clinton/Bush/Greenspan political decisions in favor of willfully and 
systematically criminally deceiving the American people in economic data 
reporting and in criminal federal budget reporting, is now corporation by 
corporation belatedly becoming public knowledge. 

TRICKLE DOWN CRIMINALITY 

This generation has demonstrated that the 'trickle down' theory in economics 
has a parallel 'trickle down' theory in criminal behavior. The 
institutionalized accounting criminalization of federal government "off 
budget" expenses has trickled down from the White House and Congress to 
criminal "off budget" expenses for corporate America. The self-serving 
institutionalized falsification of federal government economic reports has 
trickled down from the White House to self-serving false reporting by 
corporate America; and, 'pump and dump' on Wall Street. The criminal price 
fixing of financial markets by the Secretary of the Treasury and the Federal 
Reserve Bank has trickled down to criminal price fixing of stocks and stock 
markets by Wall Street. The looting of the federal treasury by pork barrel 
politics has trickled down to the looting of corporations by corporate 
management. 

The 'trickle down' theory in economics maintains that "a rising (economic) 
tide lifts all boats". The 'trickle down' theory in criminology has 
demonstrated that "a criminally corrupt Presidency, Congress, and Federal 
Reserve Bank results in the criminal corruption of a nation's corporations 
and institutions". 

POSITIVE SUGGESTIONS FOR REFORM 

Congresspersons at the WorldCom hearings asked for suggestions of what could 
be done in order to prevent future Enrons and WorldComs. Honorable 
Congresspersons, here are my suggestions in response to your questions. 
First, decriminalize the federal budget by eliminating "off budget" 
expenses. Second, eliminate the political fabrication of false federal 
economic data. Third, stop the United States government and the Federal 
Reserve Bank from secretly or openly price fixing financial markets, 
especially the gold, silver, currency, bond and stock markets. The criminal 
behaviors of the Enrons, WorldComs, and Wall Street are simply 'trickle 
downs' of the same behaviors by Presidents, Congress, and the Federal 
Reserve Bank. 

Fourth, in order to eliminate the institutionalized theft of purchasing 
power by the Federal Reserve Bank fiat currency, implement the 
Constitutional provision of gold and silver as circulating money. Fifth, in 
order to eliminate the institutionalized theft of purchasing power by 
fractional reserve banking, eliminate the Federal Reserve bank and 
fractional reserve banking. Sixth, end the Congressional looting of the 
United States Treasury by pork barrel politics. With these suggestions, I 
humbly suggest that Congress removes institutionalized and structural theft 
from the highest levels of government and banking. I would even seriously 
consider a seventh suggestion: Federal legislation that would make every 
elected federal office holder unable to run for re-election. 

In all honesty, each and every one of we the people of the United States 
share the responsibility for the Enronization of America. We have been 
unwilling to pay the price in order to maintain liberty and human dignity at 
home. We the people have also been comatose and allowed ourselves to become 
sheeple. We must free our sheeple in a lawful and Constitutional manner, or 
die in our effort. I personally have made that commitment. Well my 
Congresspersons. You very nicely talk the talk on TV. 

But, are you willing to walk the walk. Are you willing to openly defy the 
primary rule of United States politics: "To get along, go along!"? Are you 
willing to die as a lawful whistleblower and lawful reformer of corruption 
at the top? Will you join me in that commitment of "life for liberty"; and, 
set about to decriminalize our government, our corporations, our currency, 
and our banking institutions? I petition all Americans to make that 
conscious commitment of "life for liberty" that is necessary in order to 
become whistleblowers and again live as a free people. Have no illusions. 
Many will pay terrible prices for being whistleblowers to deaf ears. 

MAKING THE GORILLA DISAPPEAR 

In order to sustain the politically advantageous illusion of a strong 
economy, our state and federal governments gave corporate America and Wall 
Street years of freedom from prosecution for many criminal behaviors. 
Federal and state regulators, Democrats and Republicans, the private Federal 
Reserve Bank, establishment economists, corporate America, Wall Street, and 
the establishment news media, engaged in the very essence of white collar 
crime. 

They jointly engaged in "illegal and socially injurious cooperation between 
governments and corporate instuitions" in order to make the pregnant gorilla 
of economic depression disappear from corporate financial statements and 
from the thoughts of most Americans. The 'social injury' of white collar 
crime fell on criminally deceived investors in United States stock markets 
that saw their purchasing power collapse with their stock prices. The 
'social injury' was a deliberately engineered and grandiose 'pump and dump' 
stock market bubble. 

Illusionist David Copperfield made the Statue of Liberty 'disappear' from 
public view for minutes. Illusionists Clinton, Bush, and Greenspan made the 
gorilla of an economic depression 'disappear' from public view for years. We 
live in a time of Hobbesian illusionists and the financial rape of the 
American people. 

MAKING THE GORILLA OFFSPRING DISAPPEAR 

The gorilla 'offspring' of sharply rising unemployment was erased by 
statistically focusing on the newly unemployed and by removing many existing 
unemployed from the official unemployment statistics. The gorilla 
'offspring' of corporate statements of financial distress was erased by 
criminally changing real corporate financial losses into accounting 
'profits'. The gorilla 'offspring' of declining corporate sales were erased 
by the criminal accounting of "wash sales" between corporations artificially 
increasing the sales of both corporations. 

The gorilla 'offspring' of rising personal bankruptcies was addressed by new 
bankruptcy laws that made bankruptcy a less helpful and less likely 
alternative for Americans in severe financial distress. The gorilla 
'offspring' of Wall Street 'experts' disclosing corporate financial problems 
to the public was erased by Wall Street 'experts' at firms like Merril Lynch 
praising, promoting and selling to the American people the stocks of 
financially distressed American corporations. Wall Street disclosure of 
corporate wrongdoing, instead became Wall Street 'pump and dump'. 

For their own 'pump and dump' financial enrichment, Wall Street firms 
promoted financially crippled stocks as sound investments during an economic 
depression. The gorilla 'offspring' of government budget deficits was erased 
from public awareness by simply officially declaring that many government 
expenses are "off budget" expenses. The gorilla 'offspring' of a stock 
market crash was delayed by Wall Street hyping and 'pumping' stocks into a 
stock market bubble. The Wall Street delayed gorilla 'offspring' of a stock 
market crash was greatly controlled in severity of collapse by the Federal 
Reserve Bank using The Monetary Control Act of 1980 in order to secretly 
purchase stocks as deemed necessary. The Gorilla 'offspring' of defaulted 
bank loans was erased from public awareness by rolling over bad loans into 
new and larger unrepayable loans. 

By the same tactic of rolloverism of unsound bank loans, the Gorilla 
'offspring' of financially distressed banks was erased from public view. The 
Gorilla 'offspring' of news media disclosures of the financial distress of 
corporations was erased by self-imposed media political censorship. The 
financial media generally 'pumped' the stock market bubble instead of 
disclosing the corporate and economic problems. The gorilla 'offspring' of 
shaken consumer confidence was erased by one and all constantly telling us 
that 'the consumer is still buying'. Gorilla 'offspring' such as rising 
foreclosures and rising homelessness were erased by either ignoring them; 
or, by making them seem unimportant. 

The goriilla 'offspring' of criminal business practices being prosecuted was 
erased by coooperative regulators and crime busters who decided to "see no 
evil, hear no evil, say no evil". The Gorilla 'offspring' of Senate and 
Congressional oversight committes blowing the whistle was erased by the 
corporate campaign contribution bribery and purchase of the majority of our 
senators and congresspersons. Our economists, with palms upturned, joined 
our senators and congresspersons in the bribery lines that dole out 
excellent job benefits. 

WITH THE ALTERNATIVE OF POLITICAL HONESTY 

What would have happened if President Clinton had chosen the truthful 
alternative? What would have happened if the federal and state politicians 
and government regulators, corporate America, the news media, economists, 
and Wall Street publicly reported truthful profit and loss statements with 
non-criminal accounting and non-deceptive financial and economic reporting 
practices? The news headlines of the 1990s would have been entirely 
different! The reported news would have been about corporate business losses 
and corporate bankrupticies in the deepening economic depression. 

In the late 1990s, truthful unemployment statistics would have quickly 
reached economic depression levels as honest financial reporting and 
accounting lead to the public bankruptcy of many of the blue chips of 
corporate America. This would have set in motion a deflationary debt 
liquidation spiral that fueled itself. There probably would have been the 
confiscatory deflation noted in Argentina by Hans F. Sennholz in order to 
save the big banks from their losses on corporate loans. The stock markets 
would have crashed and Wall Street would have become an impoverished Skid Row. 

With the Clinton alternative of political honesty; the topic of conversation 
of the 1990s would have been the location of the newest soup kitchens and 
bread lines for the unemployed and homeless; instead of, IPOs. 

THE CRIMINAL ILLUSION OF ECONOMIC PROSPERITY MELTS 

The criminally crafted political illusion of economic prosperity is now 
shattering primarily because many corporations have consumed their liquid 
resources and their cash flow can no longer pay their bills. A corporation's 
inabilitay to pay its debts in a timely manner is one gorilla 'offspring' 
that can not be erased by false accounting, comatose elected oversight 
committees and administrative regulators, and false news media reports. 
Democrats, Republicans, Presidents, Congresspersons, the Federal Reserve 
Bank, regulators, accountants, Wall Street, economists, and the news media 
implemented and supported the criminal illusion of economic prosperity 
during an economic depression. 

It was an increasing corporate inability to pay debts that finally shed 
light and public knowledge on the truth. And now, those who implemented and 
supported the criminal illusion boldly march to the forefront in condemning 
the illusion with mock anger and mock righteous indignation. Their arrogant 
hypocrisy documents their contempt for we the people of the United States. 
Our Hobbesian leaders treat us as mindless sheeple to be fleeced and 
financially butchered in our stock markets for their gladitorial amusement 
and financial gain. Greenspan, Clinton and Bush are practicing disciples of 
Thomas Hobbes; and, the primary financial butchers of the American people. 

THE GORILLA OF AN ECONOMIC DEPRESSION IS REAL 

A very real economic depression descended on the United States in the mid 
and late l990s and continues to deepen. The evidence of this economic 
depression is abundant. First and foremost, we now know that many real 
corporate profits turned into severe corporate operating financial losses 
that were not reported to the public. Instead of truthful public disclosure, 
widespread corporate operating financial losses were often falsely reported 
to the public as substantial corporate profits. The prima facie evidence of 
a business and economic depression starting in the United States in the 
1990s is the all too often extreme and dramatic shift from corporate profits 
to severe corporate financial losses during the 1990s. 'The proof of the 
pudding is on the vest'. 

The 'smoking gun' proof of a real business and economic depression starting 
in the United States in the 1990s is in the secret truthful financial 
statements of many blue chip businesses of corporate America. 

Supportive evidence is abundant. Essentially all major financial segments of 
the American economy have become burdened with unrepayable debt. This 
creates a lack of creditworthiness necessary for further sufficient sound 
credit expansion in order to fund the increasing compound interest costs of 
existing governmental, business and personal debt. Debt service by more 
unsound debt had choked off sustainable economic growth. The post WWII debt 
expansion had finally exhausted all creditworthy avenues of continued debt 
expansion. There were simply no more creditworthy debtors left. Repayable 
debt and purchasing power were forced into deceleration and contraction 
because of a lack of creditworthy debtors willing to borrow. 

As a small business entrepreneurial wholesaler for decades, I have 
personally witnessed the widespread decline in the financial health of many 
mom and pop businesses. Bankruptcy filings and home foreclosures are 
dramatically increasing in many areas. Our trade deficit is out of control. 
This economic depression has been further deepened in severity by the 
Greenspan/Clinton/Bush 'strong dollar'/'gold cap' criminal manipulation and 
price fixing of many financial markets, especially the gold, silver and 
currency markets. The criminally and artificially created 'sound dollar' 
forced much domestic production and employment overseas because the 
overvalued dollar greatly increased production costs at home to the point 
where domestic production could not compete in world markets. This 
supportative evidence, and much more supportative evidence, is not needed. 

It is very simple. In the 1990s, corporate America increasingly resorted to 
phony accounting profits because in the ongoing United States economic 
depression corporate America was no longer able to earn the REAL profits of 
the past economic expansion. THE SMOKING GUN PROOF OF AN ECONOMIC DEPRESSION 
IS IN THE SECRET TRUTHFUL FINANCIAL STATEMENTS OF CORPORATE AMERICA. 

THE ORWELLIAN PARADOX 

If the politicians will ever allow honest economic historians, they will 
write about the paradox that a criminally manipulated 'pump and dump' stock 
market bubble occurred in the 1990s during an economic depression. The 
Orwellian knowledge and application of two classic experiments in Social 
Psychology on conformity (Asch, l951) and obedience (Milgram, l963) turned 
most of the American people into sheeple. As a result of the application of 
behavioral and mind control techniques established in experimental academic 
Social Psychology, stock market investors believed criminally falsified 
corporate profit and loss statements as they flocked to the financial 
slaughterhouse on Wall Street. 

The Greenspan words, "irrational exuberance", are a blatant Federal Reserve 
attempt to conceal Federal Reserve criminality in the stock market 'pump and 
dump' bubble by scapegoating the American people for the world's largest 
stock market white collar criminal illusion for the criminal transfer of 
wealth from the people to the powerful elite. It was the ultimate stock 
market 'pump and dump' that was perpetrated on such a grandiose scale that 
even P. T. Barnum would blush. And Greenspan blames the criminal stock 
market 'pump and dump' on the irrational exuberance of the victims? 

In ancient Rome, the Emperor Nero fiddled while Rome burned. The Federal 
Reserve Bank Emperor Greenspan promoted pouring gasoline (debts that created 
more dollar units) on the 'pump and dump' fire while the economy of the 
United States burned. The Federal Reserve pumped the debt 'pump' in the 
'pump and dump'. 

The de facto financially bleeding corporate balance sheets, and the de facto 
corporate bankruptcies of the 1990s, were hidden from the public and 
bankruptcy courts by institutionalized deceptive, fraudulent, and criminal 
financial reporting. As a necessary ingredient of governmental white collar 
crime, government regulators en masse cooperated by "see no evil, hear no 
evil, say no evil". Career government regulators 'get along by going along'; 
or, they risk their careers. 

Wall Street played an important role in both the deception and the 'pump' 
with its Pro Forma earnings, EBITDA, its "estimates game", and in its 
promotion to stock investors of de facto financially bleeding and bankrupt 
corporate stocks at Rolls Royce prices. Even now, in 2002, the phony 
accounting trickles out to public knowledge one corporation at a time as 
individual corporations with cash flow problems become unable to pay their 
bills. 
(Politicians call that "a soft landing" for the economy.) 

THE LONG TERM COST OF A SHORT TERM ILLUSION. 

The most grandiose criminal stock market 'pump and dump' in the history in 
stock markets was built upon government protected deceptive and false 
corporate financial reports. The grandiose 'pump and dump' was implemented 
by Social Psychology knowledge on conformity and obedience. And the stock 
market 'pump and dump' was funded by an orgy of Federal Reserve pumped 
technological debtism that shall further impoverish countless future 
generations (www.gold- eagle.com/editorials-02/smithf020202pv.html). In 
order to maintain the illusion of economic prosperity, United states 
financial markets, especially derivatives, became massive engines of 
unprecedented debt creation. 

Purchasing power created by debt creation, instead of by profits from 
producing goods and services, is purchasing power destroyed by future debt 
liquidation. Atocha's Supreme Law of Purchasing Power: "Purchasing power 
gained by debt creation is always equaled (cumulatively) by purchasing power 
lost by debt liquidation". (www.gold- 
eagle.com/editorials-02/smithf011402.html) The future shall be primarily 
noted for the 'bewildering' world wide loss of purchasing power as the 
historically unprecedented scope of debts engineered by the Federal Reserve 
Bank is liquidated. 

The long term cost of the Greenspan, Clinton, Bush short term political 
illusion of economic prosperity in the midst of an economic depression shall 
be many additional decades of abundant abject poverty and hunger in the 
United States. Liquidating the massive debts that funded the political 'pump 
and dump' illusion of prosperity will liquidate purchasing power on a scope 
currently unimaginable by the American people. 

POLITICAL NECESSITY 

Where was the SEC, CFTC, FBI White Collar Crime Unit, and all the other 
crime busters during the tidal wave of deceptive, fraudulent and criminal 
financial reporting by corporate America? Where were the prosecutors, 
judiciary, legislators, and crime busters during the widespread criminal 
price fixing of our stock markets, the price fixing of the gold and silver 
markets, and the price fixing of other financial markets; by Alan Greenspan 
and the Federal Reserve and the United States Treasury? 

Just ask Reginald H. Howe (www.gold- 
eagle.com/editorials-00/howe121000.htm.) and and Bill Murphy of GATA 
(www.gold- eagle.com/gold_digest_02/murphy013002.html)! Howe and Murphy 
have, at great personal sacrifice, created authoritative documented 
historical records. All Americans, including myself, are deeply indebted to 
Howe and Murphy for their exhaustive documentation for the historical 
record. By political necessity, the legislators, crime busters and the 
judicial system were the deliberate cooperative paragons of "see no evil, 
hear no evil, and say no evil." 

Federal political re-elections are frequently won first and foremost by a 
strong domestic economy. To serve the motives of political re-elections, the 
Great Depression of the 1990s had to be concealed from the American people. 
Deliberate, severe, rampant and blatantly criminal phony corporate and 
government accounting and financial statements became a perceived political 
necessity for the future re-elections of Presidents Clinton and Bush Jr., 
senators, and congresspersons. Presidents of both major political parties 
repeatedly avowed the strength of the economy and affirmed (the Federal 
Reserve criminal price-fixing of) the 'stong dollar'/'gold cap' policy. That 
phony accounting in order to sustain the illusion of a prosperous and sound 
economy encompassed both corporate America and federal and state governments. 

The Federal Reserve white collar criminal price fixing of the 'strong 
dollar' policy financially disemboweled corporate America and many of her 
employees, and retirees on corporate pensions. The Federal Reserve Bank and 
the United States Treasury committed unknown amounts of the peoples physical 
gold to 'lease and sale' surrogates in order to artificially depress the 
dollar price of gold as 'evidence' of a strong and prosperous economy. The 
peoples gold, confiscated in l933, is probably still on the books as 'leased 
out'; but, realistically, most of it is to never return. 

Congruent with the Federal Reserve Bank/United States Treasury criminal 
price fixing of the gold/dollar ratio, the accounting illusion of corporate 
prosperity enabled the falsely manipulated price fixing of American stocks 
and American stock markets. Government and Federal Reserve white collar 
crime (the 'sound dollar/'gold cap' policy that criminally price fixed the 
gold/dollar ratio) disemboweled corporate America with an overvalued dollar. 
At the same time; that government white collar crime protected criminally 
fraudulent corporate financial reports, the Federal Reserve Bank engineered 
a mega 'pump and dump' bull market bubble in the prices in American stocks 
and American stock markets. 

QUESTION? How can "off budget" expenses be legitimate for the United States 
government and other government agencies and at the same point in time be 
illegitimate for corporate America? The contradiction was resolved at the 
highest political levels by the de facto legitimatization of corporate "off 
budget" expenses. The de facto legitimatization of corporate "off budget" 
expenses was knowingly, deliberately and willfully implemented by 
politically necessary deaf, blind, and mute regulators, elected oversight 
committees, and administrative watchdogs and crime busters. 

Yet today, as the truth comes out, those same cooperative blind, deaf, and 
mute lap dogs of criminal financial reporting and stock market price fixing 
howl with academy award winning righteous indignation. Suddenly the 
criminal's sleeping lap dog barks like a Pitt bull dog. Long silent Senators 
and Attorney Generals who remained comatose during the years of criminal 
illusion of economic prosperity and the criminal illusion of 'real' 
corporate earnings, now posture outrage before the television cameras. 

Are you beginning to get the picture? 

The shepherds used Social Psychology in order to turn we the people into 
conforming and obedient sheeple. Next, the shepherds rounded up the sheeple, 
herded them to the slaughterhouse, and fleeced them. Then, the shepherds 
financially butchered the sheeple. Now, the same shepherds are outraged and 
they are your friends. And don't forget: Re-elect your caring friends, the 
shepherds. 

THE STATUE OF LIBERTY 

The illusionist David Copperfield, made the Statue of Liberty apparently 
'disappear' for a few minutes. Greenspan, Clinton, Bush, the Congress, 
accountants, economists, the regulators, and the news media, made a 
nationwide economic depression apparently 'disappear' for years! This 
largest illusion and governmental white collar criminal stock market 'pump 
and dump' con in the history of stock markets, required the active 
participation of the White House, the Federal Reserve, Congress, the 
judiciary, regulators, Wall Street, corporate CEOs, CFOs and their staffs, 
corporate Boards of Directors, economists, the news media, accountants and 
other financial reporters. 

The participation of all was necessary in order to control the minds and 
thoughts of the sheeple and in order to maintain the illusion of booming 
prosperity so as to financially rape stock investors in the world's largest 
stock market 'pump and dump' crime. No single group could have become 
whistleblowers or the whole illusion would have evaporated. What bound them 
so absolutely together in crime? Greed? Fear? Both? 
For the illusion to hold fast so tightly, it would seem that the answer 
would have to be "both". This raises extremely disturbing Orwellian 
questions about the true nature of America. 

David Copperfield made the Statue of Liberty 'disappear' for a few minutes. 
Greenspan, Clinton, and Bush enabled an economic depression to 'disappear' 
for years; from financial balance sheets, the news media, and public 
knowledge. With the implementation of the Social Psychology knowledge of the 
Asch and Milgram experiments on human conformity and obedience; Greenspan, 
Clinton and Bush enabled liberty to disappear. 

THE WALL STREET 'PUMP', IN 'PUMP AND DUMP' 

Wall Street has massively practiced four separate 'pump' techniques that 
deceptively inflate the public perceptions of corporate earnings. The first 
Wall Street deceptive 'pump' technique is to report "Pro Forma earnings" 
which omit various business expenses and thus excel at turning truthful 
corporate financial losses into highly pumped 'profits'. The second Wall 
Street deceptive 'pump' technique is EBITDA. That stands for Earnings Before 
Interest, Taxes, Depreciation and Amortization. EBITDA also excels at 
turning truthful corporate financial losses into highly pumped 'profits'. 
The third Wall Street deceptive 'pump' technique is "the estimates game". 

By low ball Wall Street "estimates" of corporate financial performances 
being exceeded, the negative of corporate financial losses turned into a 
glowing positive--- "Wow! They beat the estimates." This shifts the 
measuring of corporate financial performances from 'profits or losses' to 
how the corporations performed compared to the estimates. 
The fourth documented Wall Street 'pump' technique has been Wall Street 
brokers, on management orders, pushing and promoting the public purchase of 
de facto bankrupt stocks such as Enron. Of course, the establishment news 
media, falsified and criminal corporate accounting and financial statements, 
and Federal Reserve debt accommodation also played major roles in the 'pump'. 

THE 'PATRIOTIC PUMP' 

Our politicians took advantage of our 9-11 deaths in order to give us the 
'patriotic pump' as part of the overall white collar criminal 'pump' in 
'pump and dump'. There are many versions of the 'patriotic pump'; but, they 
go something like this: "Defeat the terrorists, buy American stocks." Even 
our own heroic dead are put to use for increasing white collar criminal 
'pump and dump' stock market profits. I literally cry at the political use 
of our 9-11 deceased for the increasing of criminal pump and dump stock 
market profits. Be sure that with the greatest respect and humility, I honor 
and salute our fire fighters and all the others who died during the 9-11 
terrorism. I would never think to criminally financially profit by their 
deaths. 

If we are to fight the war against terrorism by buying de facto bankrupt 
corporate stocks at Rolls Royce prices; then, we shall lose the war. 

RATIONAL EXUBERANCE 

I suggest to you that Greenspan's "irrational exuberance" was quite 
"rational exuberance" in response to years of massive institutionalized Wall 
Street pumping of financial deceptions combined with corporate criminal 
accounting practices and news programing and delivery controlled by social 
psychologists.. 

Wall Street pumping, corporate criminal accounting, and establishment 
financial media use of Social Psychology knowledge in order to create human 
conformity and obedience (sheeple); resulted in a rational public being 
predictably financially slaughtered. 

Mr. Alan Greenspan: "How can you blame the rational crime victims for the 
commission of the crimes? 

CRIMINAL EXUBERANCE 

Mr. Alan Greenspan, I believe that it was not the 'irrational exuberance' of 
stock market investors that created the stock market bubble. No! I believe 
that it was "criminal exuberance" by White Collar pump and dump criminals; 
and, that the stock market bubble was funded by the irrational exuberance of 
a Federal Reserve manipulated debt bubble! The Federal Reserve pumped the 
debt pump during the 'pump and dump' pump. 

Mr. Alan Greenspan: "Have you no shame?" 

WHITE COLLAR CRIME 

People world wide, and their pension funds, bought American stocks in de 
facto financially bleeding and bankrupt corporations at rationally exuberant 
price levels because of: 1) Blatantly falsified corporate financial reports; 
2) A Wall Street supporting library full of Wall Street 'pump and dump' 
deceptions and falsehoods; 3) The establishment news media use of Social 
Psychology techniques, and 4) a debt bubble wetnursed by the Federal Reserve 
that created fertile ground for stock market and real estate bubbles. The 
result of this greatest of all criminal stock market illusions is that 
people of the world bought United States stocks at economic boom prices 
during an economic depression. This is the white collar crime of "price 
fixing" at its worst. It has been, and still is, the largest planned and 
deceptive governmental white collar criminal stock market transfer of 
purchasing power in the history of stock markets. 

This white collar con and crime was not performed by the equivilent of a 
single cat burglar working alone. No. The financial rape of the holders of 
United States stocks was the orchestrated and coordinated crimes of the 
governmental/political/banking/Wall Street/corporate power structure of the 
United States. Our cited definition of governmental white collar crime is: 
"... 
illegal and socially injurious cooperation between governments and corporate 
institutions.." It may well be that for thousands of years, the price fixing 
and 'pump and dump' of United States stocks and stock markets by the 
grandiose Greenspan, Clinton, Bush illusion of economic prosperity will be 
the textbook classic case of governmental white collar crime. 

In my opinion, our United States government, our banks including the private 
Federal Reserve Bank, our stock and financial markets, our corporations, and 
our establishment news media are institutionally criminally corrupt. I can 
reason no other rational conclusion in the face of such overwhelming public 
evidence. In my humble opinion, the evidence criminally convicts "beyond a 
reasonable doubt". If we Americans are not willing to die at the hands of 
our own government for liberty; then we shall forever remain sheeple in 
Orwell's Animal Farm. 

A TREE FALLS 

If a tree falls in the forest, and no one hears the sound, did it really 
happen? 
If much of corporate America bleeds financial losses; or, goes belly up in a 
1990s Great Economic Depression; and, accountants and the news media do not 
report it, did it really happen? 

What is more important? Perception or reality? When it comes to financial 
markets, in the short run perception is much more important than realilty. 
But, illusionary perceptions falsely created by Wall Street pumping, 
criminal corporate accounting, the Federal Reserve Bank pumping debt, and 
news media social psychologists; eventually erode. Then, ever so slowly, 
truthful perceptions of reality emerge. Corporation by corporation, one at a 
time, we are now at the very beginning of that decades long process of 
perceptions changing from financial illusions to economic reality. 

ONE SCANDAL AT A TIME.... 

The alllegations of stock market scandals are slowly stripped naked for 
public view, one stock at a time: Enron, WorldCom, Adelphia, Xerox, Ford, 
assorted airlines, Global Crossing, Tyco, Halliburton, Merril Lynch, Reliant 
Energy, Martha Stewart, Arthur Anderson, Kmart, Krispy Kreme, Compaq, Cisco, 
Trump Hotels, Quest, Merck, and many others. They are a diverse lot. The 
allegations vary from criminal accounting by Enron to insider trading by 
Martha Stewart. 
Yet, each of the individual allegations have a common denominator: GREED. 
Many of the allegations involve concealed DEBT. And collectively, the 
allegations portend of massive, widespread, minutely orchestrated, and 
institutionalized, stock market WHITE COLLAR CRIME. 

We have now entered the transition phase between 'pump' and 'dump'. Wall 
Street still pumps some stocks while other stocks are being dumped by 
financial news media allegations. I expect this rotation phase to last for 
years. 

'So, listen up folks, its not too late. You can increase the mortgage on 
your house and still buy pumped up stocks. The stock market bottom is in! We 
have a V shaped recession. No, wait, we never had a recession! Happy days 
are here again! Economic recovery is just around the corner! Remember that 
you only have three investment choices: Stocks, bonds, or cash. And in 
stocks you have three choices: Large cap, medium cap, and small cap. That is 
called "diversification". 

And when you buy, remember your 'sell stops' so that Wall Street can 'run 
the stops'. Don't forget, use margin. That way you can get margin calls 
until you live in a tree. Have you hugged a tree lately? We are going to 
pass a new law: "Regulators will see evil, regulators will hear evil, and 
regulators will say evil." The new law is just thirteen words; but, it will 
solve everything! You can't buy stocks without a Wall Street expert because 
you are too dumb. Have I got some shorts for you in the commodity futures 
market: Short wool and lamb chops! A banker gave me an insider tip that we 
are about to be flooded with wool and lamb chops. Don't forget to buy paper 
gold and silver. My name is Nero, and I love to watch things burn! Have I 
got a good stock for you, they make eyeglasses for left footed people. They 
have the patent. They will make you rich! You can't let that opportunity to 
get rich pass you by. Even if I am wrong, stock market losses are great. 

Think about how much they reduce your taxes. I have another surefire stock 
market winner for you. This business just got the copyrights on bumber 
stickers for: "We can legislate wealth"; "We can legislate integrity"; "We 
can legislate betrayal"; "We can legislate hypocrisy"; and, "We can 
legislate greed". Another business has the copyright on toilet paper for 
Congress. On every sheet will be printed a Code of Ethics. Their stock 
should be a ten bagger. By the way, is the use of Social Psychology 
techniques for creating public conformity and obedience (sheeple) ethical? I 
am from Merril Lynch and I have some stocks that you have to buy. This 
corporation has the patent on making lipstick for pigs. It is tasty and you 
can even put it on your pork chops. Impress your friends at the next BBQ. 
This paragraph is just a wee bit of satirical humor, so don't take it 
seriously. 

Just laugh. Oh, have I got the stock for you, the company makes electonic 
shepherd's hooks that can shock people with ten thousand volts. The electric 
zap makes people laugh, if it doesn't kill them. The world needs more 
laughter, don't you agree? Since the economy is hurting, we are going to 
enrich the nation by passing a new law that makes sand legal tender money. 
That way, everyone will have all the money that they want. What? It is too 
late? The Federal Reserve Bank already did that, only they used air instead 
of sand? You know that if we placed a federal tax on air that we could 
balance the budget. Now just sign right here on the dotted line, give me all 
the dollars that you can beg, steal, or borrow, and repeat after me: 
"Baaaaaaaah". 

AMERITINA 

Now let's shift from tears of laughter to tears of sorrow. An inevitable and 
delayed, but much more severe and prolonged collapse in purchasing power 
shall be the price paid for the rollover debt and the new debt funding that 
sustained the accounting illusions of corporate prosperity. The frantic 
price manipulated gradiose 'pump and dump' stock market bull market dance of 
the 1990s was funded by Federal Reserve pumped technological debtism. 

The result of the technological explosion in debt will be the economic 
Argentinization of the United States. America shall be a northern hemisphere 
Argentina, 'Ameritina'. (www.gold- 
eagle.com/editorials_02/smithf052802pv.html) Please prepare your family for 
the coming of "Ameritina'. 
(www.gold-eagle.com/editorials-02/smithf021902pv.html) That preparation 
requires that you learn the Social Psychology knowledge on conformity and 
obedience so that you can deprogram your mind and again be a free person 
instead of being caged, fleeced, and financially slaughtered sheeple living 
in Orwell's Animal Farm. 

SUMMARY 

QUESTION: Why did American corporations, Wall Street, and our government 
resort to years of institutionalized and government protected deceptive and 
white collar criminal accounting for corporations? 

ANSWER: American corporations resorted to criminal accounting in order to 
avoid bankruptcy courts. Wall Street resorted to the business financial 
deceptions of pro forma, EBITDA, and "estimates", in order to conceal 
corporate losses resulting from an ongoing economic depression so as to sell 
to stock investors near worthless stocks at Rolls Royce prices (the white 
collar crime of price fixing). The political motive of our government 
protecting criminal accounting was to win political re-elections because of 
a publiclly perceived prosperous economy. 

The Wall Street motive of profit from stock market 'pump and dump' price 
fixing combined with the government motive of political incumbants winning 
re-election. 
With shared mutual self-interest, they coordinated the implementation of the 
criminal illusion of a 'sound economy' that was so financially injurious to 
stock holders. It was classic academic governmental white collar crime. All 
of the three necessary academic elements of "governmental white collar 
crime" are clearly present: 1) Illegal behavior, 2) cooperation between 
corporate institutions and governments, and 3) socially injurious 
consequences. 

De facto bankrupt corporations avoided the bankruptcy courts for a few more 
years of plundering corporate assets by top management. Wall Street got rich 
on 'pump and dump'. The incumbant politicians got re-elected. Blindly 
trusting sheeple, as stock market investors, got financially raped in a 
criminal 'pump and dump' stock market. 


WHAT DO YOU SAY? If a tree falls and no one hears the sound, did it really 
happen? If corporations sustain business financial losses, and accountants 
post the losses as profits, did the financial losses really happen? If many 
American business profits turn into losses in a Great Economic Depression, 
and accountants do not record the losses, and the television news media does 
not report the financial losses or the economic depression, did the economic 
depression really happen? 

Think. Answer these questions using only your own mind. If you go to anyone 
else for help in answering these questions you are sheeple. That makes you 
Wall Street financial road kill on the hoof. Each and every American has a 
choice to make: Will they personally make a commitment of "life for 
liberty"; or, will they live as sheeple on Orwell's Animal Farm? 

DISCLAIMER: This essay is an exercise of my freedom of speech, and it is 
solely my opinions that are provided only for intellectual stimulation and 
educational purposes. Consistent with my background in criminology and 
entrepreneurship, this essay is primarily a criminology paper on 
governmental white collar criminal practices involving businesses, stock 
markets, and other monetary and financial markets. Each email will be read 
and greatly appreciated. However, without staff, time considerations 
unfortunately dictate that most will not be answered. The contents are not 
intended as investment advice.