Viewpoint: Wall Street’s addiction

July 1, 1993

Viewpoint: Wall Street’s addiction

By By Joe Baker, Senior Editor

What’s really going on—on Wall Street? The Department of Justice, back in the ’90s, estimated $100 billion in drug money is laundered in this country every year. Experts say that money flows through our financial markets.

Former Wall Street investment banker Catherine Austin Fitts puts the figure between $250 and $350 billion annually. Fitts pointed out that the multiplier effect of that amount of money laundered would mean $1.5 trillion a year in U.S. cash transactions from the drug trade.

Why don’t we hear about all this? Corporations that trade on Wall Street, including most of those implicated in money laundering, have stock values based on annual net profits. This is known as the “price to earnings pop” or the price-earnings ratio. The multiplier effect on stock values can be as much as a factor of 30 or more.

If a big corporation like GE were to have an additional $10 million in net profits based on the drug trade, the net increase in the stock value could be as much as $300 million. GE owns NBC. Considering that “if,” do you think accurate reporting about the drug trade and the CIA’s involvement in it would be allowed to hurt GE’s stock value?

The high level of drug revenue moving through the markets has the effect of inflating through the multiplier nearly all equities. For instance, Disney owns ABC. Its mammoth retail, resort and entertainment empire also benefits from the “drug multiplier.” Ronald Reagan’s CIA director, William Casey (Iran-Contra Scandal), was chief counsel to Cap Cities Broadcasting. Casey’s law firm represented Cap Cities when it bought ABC in 1985.

The network’s anchor, Peter Jennings, had been broadcasting a series of investigative reports on the CIA and drugs when the buyout took place.

Jennings had refused to be cowed by pressures coming from Casey, according to some investigators. As soon as the SEC approved the buyout, Jennings was silenced. ABC became known as “the CIA network.”

That lesson was not lost on Ted Turner and Time-Warner, the founder and new owner of CNN, respectively. Intense pressure was brought to bear on them by Henry Kissinger, Colin Powell and John Singlaub after the CNN report of Sarin gas being used against American defectors in 1998 and linking the CIA to the incident.

All major media corporations in the country trade on Wall Street. There are no independents.

In 1999, Richard Grasso, then-president of the New York Stock Exchange, went to Colombia to meet with a representative of the FARC, the Revolutionary Armed Forces of Columbia, the dominant leftist rebel group in the country. Officially, Grasso was bringing a “message of cooperation” from the U.S. financial community. Fitts said unofficially it related to continued infusion of cocaine capital into our financial system, alleges Fitts.

Back then, Fitts observed: “Drug capital provides low-cost capital, but not as much as the liquidity generated by the belief that in America, the government’s word and our contracts are reliable and enforced by the rule of law. Grasso’s trip underscores the fact that if we do not flip our model soon, we are headed into a tipping point when the unhealthy drives out the healthy to implode the entire financial system.

“Chairman Grasso’s trip says to me that organized crime dollars have replaced petrodollars as the American financial system’s number one circulatory disease, and our addiction to drug profits is increasing our risk of a financial heart attack,” Fitts said.

She proved a good prophet. We are in financial tachycardia.

Former naval intelligence officer and government whistleblower Al Martin, states it very bluntly. “This whole planet—every nation, every treasury, all business and industry, all capital marketplaces—is drowning in a sea of defaulted debt,” he said.

Martin reports that what remains of Global Crossing, the telecommunications giant that collapsed in a mammoth bankruptcy, has been snapped up by the Chinese investment group Hutchison Whampoa, reputedly tied to the Chinese Army. Martin said Hutchison Whampoa is under majority ownership of the Pilgrim Investment Trust, which is controlled by the Bush family. Hutchison Whampoa is the company that won out in a deal to gain control of the Panama Canal.

Martin said the Bush strategy is to short the market, knowing your own policies are going to cause it to fall, then take the profits from those short sales and put it in offshore accounts and hedge them with gold. When the value of the dollar is low and the cost of gold high, you convert the dollars and use them to buy up failed corporations for a few cents on the dollar.

That, Martin says, is what George Bush Sr. meant when he spoke of “the continuous consolidation of money and power into higher, tighter and righter hands.”

While all this, and the erasing of civil liberties, is taking place, the American people seem to be on Prozac. Dark times are descending on the former “land of the free.”

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