A Warning

… or rather, another warning.

There can only be so many warnings till the trap door slams shut. This latest warning is as candid and plainly spoken as is humanly possible.

What remains to be seen is whether or not we the people can see the consequences of this warning because, I guarantee you, consequences there will be and none will be good for society.



That Sentinel [a brokerage] failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers,” U.S. Circuit Judge John D. Tinder wrote in the ruling

For those of you that may be unfamiliar with this case, Sentinel was a brokerage that invested funds on behalf of other brokerages. Due to some trades that turned sour, Sentinel eventually went bankrupt. The investigation that followed revealed that Sentinel commingled the funds of its clients with its own funds. In other words, Sentinel made use of the private property of its clients for its own use.

The problem is that one of the rules for running a brokerage is that the firm’s own funds must be completely separate from client funds just so that in the event of bankruptcy, clients can be made whole. Here, you have all sorts of concepts ranging from private property law to fiduciary duty that come into play.

This case is very similar to the most recent cases of MF Global and PFG Best.

This ruling throws the door wide open to any number of actions on behalf of financial entities that till recently could clearly be defined as illegal if not criminal. No longer.

Although Sentinel or MF Global or PFG best may not be familiar to you, they nevertheless concern you because these are the entities that are entrusted with the funds that you and me pay daily in order to make our lives function in the manner we have been promised they should function.

When you make a contribution to your pension fund, when you pay VAT, when you pay excise, when you pay for a license to do something, when you pay your property taxes, when you pay municipals taxes and, indeed, when you pay your income taxes, these funds are entrusted to entities that make use of entities like the three mentioned above.

Once again. Regardless of whether you are involved in investment or finance, this ruling touches the very core of those features of Western society based on personal freedom, private property and impartial justice for all. You can be a carpenter or a fisherman, you can be a doctor or a lawyer, you may be a teacher or a secretary, this ruling concerns you intimately. As a consequence of this ruling, the fruit of your work has been pledged to the finance industry without recourse.

Like in several instances prior to today, the courts are bending the law and throwing out of the window centuries of precedent just so a handful of financial institutions can appropriate all vestiges of wealth left in the hands of society.

There can only be so many warnings till the trap door slams shut.

Your wealth, your savings and your freedom are at risk and today the state has decreed that you belong to the finance industry.

This ruling is nothing short of saying: “let them eat cake”!



2 Responses to “A Warning”

  1. Patrick Donnelly Says:

    The only reason that a genuine tried and tested solution has not yet been applied, is that there remains so much to be pillaged.

    Once there is nothing left, those who have lost among the elite will be wiped out, leaving the winners to profit from the debt forgiveness.

    Nothing new here, move on!

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