The unknown 20 trillion dollar company
 

The unknown 20 trillion dollar company
The NewsLog of Flemming Funch
The unknown 20 trillion dollar company

by Flemming Funch

There is a busy little private company you probably never have heard about, but which you should. Its name is the Depository Trust & Clearing Corporation. See their website. Looks pretty boring. Some kind of financial service thing, with a positive slogan and out there to make a little business. You can even get a job there. Now, go and take a look at their annual report. Starts with a nice litte Flash presentation and has a nice message from the CEO. And take a look at the numbers. It turns out that this company holds 23 trillion dollars in assets, and had 917 trillion dollars worth of transactions in 2002. That's trillions, as in thousands of thousands of millions. 23,000,000,000,000 dollars in assets.

As it so turns out, it is not because DTCC has a nice website and says good things about saving their customers money that they are trusted with that kind of resources. Rather it is because they seem to have a monopoly on what they do. In brief, they process the vast majority of all stock transactions in the United States as well as for many other countries. And - and that's the real interesting part - 99% of all stocks in the U.S. appear to be legally owned by them.

In the old days, when you owned stocks you would have the stock certificates lying in your safe. And if you needed to trade them, you needed to get them shipped off to a broker. Nowadays that would be considered very cumbersome, and it would be impractical to invest via computer or over the phone. So the shortcut was invented that the broker would hold your stocks instead of you. And in order for him to legally be able to trade them for you, the stocks were placed under their "street name". I.e. they're in the name of the brokerage, but they're just holding them in trust and trading them for you. And you're in reality the beneficiary rather than the owner. Which is all fine and dandy if everything goes right. Now, it appears the rules were then changed so the brokers are not allowed any longer to put the stocks in their own name. Instead, what they typically do is to put the stocks into the name of "Cede and Company" or "Cede & Co" or some such variation. And the broker might tell you that it is just a fictitious name, and will explain why it is really more practical to do that than to put it in your name.

The problem with that is that it appears that Cede isn't just some dummy name, but an actual corporation that DTCC controls. And, well, if you ask anybody about this, who actually knows about it, they will naturally tell you that it is all a formality. To serve you better, of course. And, well, maybe it is. DTCC seems like a nice and friendly company. It is a private company, owned by the same people (major U.S. banks) who own the Federal Reserve Bank. And if they all stick to their job, and just keep the money and your stocks flowing smoothly, I'm sure that is all well and good. But if somebody at some point should decide otherwise, and there's a national U.S. emergency and/or the U.S. government becomes unable to pay its debts, well, they might just not give you your stocks back. Because legally they own them. Something to think about.

An fascinating article about this whole thing is here. I will include it at the bottom too, in case it should disappear. Not that I can vouch for or agree with everything the guy is saying, and some of it is a little whacko, but obviously he's been researching this quite a bit. You'll find very little about it on the net otherwise.
& etc..

http://ming.tv/flemming2.php/__show_...010-000923.htm

phew this isnt about my drug cartel

Oh, ok.

For a second there I thought you had hacked my stats remote. :1orglaugh

I didnt finish reading the whole thing but are they interested in Adult Businesses? Have em call me .... we need those trillions here ;-)

Very interesting read

interesting read:2 cents:

Interesting..

Sounds very interesting, I had wondered about that before. Will give it a read for sure.

in short. you don't actually own anything that the powers to be can't take from you on a whim, you aren't worth anything and can be reduced to 0 in the flash of a second, and you only think you life is free. freedom is something long since gone in the world for all but ver very few extremely rich people. ain't life great?

really interesting.

Oh Noz! Yeah the feds gunna steal your stocks! Run for the hills - Hide! they've got mind reading brain waves too!

This is why we have legal guns in the USA !

The founders knew they would be needed again some day !

Somebody that gets it.... :thumbsup

anybody see the comments left by people? This is really shocking (if it's true...) !
this is http://www.zeitgeistmovie.com/main.htm material

22 Sep 2008 @ 15:32 by James Carter @64.111.55.240 : INHERENT NATIONAL BANKRUPTCY
is the pasted article of interest ??? Jim
*************
*****************INHERENT NATIONAL BANKRUPTCY

We are all familiar with a Ponzi scheme. The operation promises investors that money put into control of the operators will return high interest on the money invested. Unfortunately, the confidence game promises to pay more interest than the scheme generates, if the scheme generates any interest or gain whatsoever. The scheme will last as long as more suckers are found whose invested money will pay for the inflated interest due and payable to earlier investors.

The Federal Reserve operates a Ponzi scheme. Congress can pay for federal expenses with funds collected from taxes, but congress is never satisfied with this amount. The desire to buy votes from special interest groups and financially motivate campaign contributors, (or a credit card that does not have to be paid) induces congress-critters to spend more, and this is identified as deficit spending. To finance this deficit, the Federal Reserve will create on their accounting books a line of credit equal in the amount of the bills, bonds, or notes the congress authorized; i.e., the Fed receives the interest-bearing obligation on the full faith and credit of the United States and in return checks written by government agencies will be honored by the banking system. The accumulated deficits are identified as the national debt.

It must be observed the amount of money in circulation is increased by the amount of the principal (actually it is a line of credit for Congress that is generated) but the amount promised to be repaid is the principal AND the interest. The interest is never created but it is promised to be repaid. It is impossible. If this arrangement is based upon a contract, which it undoubtedly is, it can never be fulfilled. A contract that is impossible to fulfill is void upon its inception; it is an act of fraud.

The scheme will survive only as long as more principal is generated to pay the interest. This action only postpones the ultimate time of a much larger reckoning. If purchasers of the new debt cannot be found, the interest must be paid from previously generated principal and the scheme quickly collapses like any Ponzi scheme. Astute purchasers will demand a higher rate of interest than inflation (resulting from the creation of new principal) or they will suffer a loss of actual wealth. The increase in interest will always be greater than the increase in principal because of compounding effects; i.e., the more the principal increases, the more the interest increases.

Every ?dollar? in circulation has been created by deficit spending with interest is being paid as a result of the creation. If all of the dollars in the world were used to buy back the bills, bonds, and notes, a national debt would still exist---in the amount of all interest generated with accumulated compound interest since the Fed was created ---but no ?dollars? would exist outside of the Fed?s vaults to repay the debt. The Fed, as majority holder of federal debt, would have a claim on the wealth of the United States citizens, but the citizens have no money to pay the debt. Confiscation of all real assets pledged as collateral (the full faith and credit of the United States) would be in order. Foreclosures on Fannie Mae and Freddie Mac mortgages guaranteed by the federal government could put real estate under the control of the Fed. A feudal society with the Fed owners acquiring vast real estate could be created.

But ownership of real estate is really not the object of the financial centers. The object is money. The dealing of foreigners who have claims on U.S. dollars has already surfaced. Sell the infrastructure, such as seaports, toll-roads, airports, bridges, buildings, etc., to foreign nations. Hawaii has many Japanese landlords. After assets are sold, the taxpayers are required to lease them back or pay for their use.

To make the scheme appear legitimate, the Fed sells a large percentage of new bills, bonds, and notes with the help of the U.S. Treasury. That removes much of the currency generated by the scheme from circulation. Japan, China, and the United Kingdom hold $1.3 trillion of the total U.S. debt. Ref. [link] How much of this debt holding has been required by financial and government policies to gain approval of trade status for the past 40 years is unknown. It should be apparent that if Japan and China attempt to sell the obligations to support their economy, it would precipitate a world wide tsunami. The purchase of US debt ties all nations into a global economy.
Several South American countries use the U.S. dollar as their currency. If one nation starts selling, the entire house of cards will fall. The recent invasion of Iraq is theorized by some sources as retaliation for an economic policy designed to remove the dollar as the international reserve currency for oil. Iran has recently taken a similar action and Washington is again threatening hell-fire and brimstone.

At this time, the national debt exceeds $9.5 trillion. The government holding is $4.1 trillion, the public holding is $4.4 trillion, and the holding by the FED is down to $740 billion. Securities held by OASDI, Hospital Trust fund, Disability Fund, and the Retirement Fund account for $3.28 trillion of the U.S. government holding in non-marketable form. Major private holdings include banks, pension funds, and mutual funds. More than one-half of the private held debt, $2.3 trillion, is held by foreign and international investors. Ref. [link] Tables OFS-1,2, FD-1,2,3.

Interest on the national debt for the past year has exceeded $430 billion dollars. Ref. [link]
At the approximate 5% going rate on national debt, the Fed receives $37 billion per year for providing Congress with an open-ended credit card. Meanwhile, a debt of $35,000 has been imposed on every man, woman, and child in the U.S. The off balance sheet obligations for Medicare, Medicaid, SS, etc., raises government debt to over $150,000 per person.

The national debt has increased $2.4 trillion since 2003. As many have written, the creation of money by deficit spending is the source of inflation. Those closest to the money printing press will live better than those further away, and the farmers, as a class, are the most distant from the new money. This new money is a subtle way the wealth of the nation is confiscated from the people, and the people, for the greater part, are completely unaware of their loss. Each year, 4% to 8% of assets held by the citizens and valued in dollars is confiscated by the government through inflation.

Some sources suggest the Fed has never been audited. That is not totally accurate. The 350 page copy of the 2006 Annual Report to Congress by the Board of Governors, (ref. [link] ) contains considerable information on the financial status and revenue transfers of the banks, branches, and the system, including interest earned from holdings of national debt. No information is found that suggests an audit of specie holdings claimed as assets nor is payment to owners detailed nor any payment of corporate taxes. The audit of financial records is signed by KPMG, LLP, at pages 303. 313, 319, and by PriceWaterhouseCoopers at page 321. All federal government entities are audited by the GAO, are they not?

All real estate owned by the Fed is subject to local property taxes and the tax bills can be verified at the county assessors office. The 2006 Annual Report lists $33 million (page 286) was paid in real estate taxes. The Federal Reserve bank in Kansas City joined other local businesses a few years ago in a legal challenge to a state-wide property re-evaluation. Real estate owned by the federal government is not subject to local property tax.

Salaries of employees are, with few exceptions, set by the Fed with paychecks drawn on the Fed; they are not government civil service employees paid from the U.S. Treasury. The Fed also has their own private retirement program. The Fed is not listed in government pages of telephone books. The Fed is a privately owned, nationally incorporated for-profit business. The window-dressing of seven appointed governors for fourteen year terms is from a Fed pre-approved list.

The private ownership of the Fed has been documented by Eustace Mullins in SECRETS OF THE FEDERAL RESERVE published in 1952. Ref. [link] The New York based owners/shills were identified and ultimate ownership was traced to the Rothschilds of Europe. Congressman McFadden had gone to his grave unsuccessful after his 1930?s attempt to determine the owners. Congressman Larry McDonald was reportedly preparing legal action against the Fed in 1983 when flight KAL 007 that he was on disappeared under mysterious conditions. Ref. [link] President Kennedy?s Executive Order #11110 to circulate interest-free currency into circulation is taunted by the informed political right as a factor in his death. Ref. PLAUSIBLE DENIAL by Mark Lane; HIGH TREASON by Robert J. Groden.

....rest is to long to post on GFY unfortunatly...
read it online

Ha. My mom screwed them then, as she still has some of the old certificates from stock she bought a LONg Time ago.

lol, well they publish an annual report:

http://www.dtcc.com/downloads/annual...007_report.pdf

They actually processed 1.86 QUADRILLION in transactions. Wow big numbers are scary.

Looks to me like they are a 30 billion dollar company with about 1.6B in gross revenue last year. They had an accounting profit of 31 million dollars last year and has 11 billion dollars in cash.. most of it belonging to participants (ie investment brokerages).

You can have all your stock certificates held in your name, Cede & co is the "street name" that is used by the brokerages to facilitate transactions. I guess for those of you who like to hide cash in your mattress, gold in your walls and sleep with a shotty under your pillow - the stock market's not for you.

Long story short, there's a whole lot of paranoia and misinformation here. Amazing how people will believe anything they see in an internet movie. I'm going to make an internet movie called "give all your monies to me".

If anything, their trading platform for OTC credit derivatives could be blamed for letting things get out of hand by facilitating and settling these trades so efficiently

Just because they moved 20 trillions doesn't mean they are worth that much.

They are probably not even worth 0.1% of that.

:2 cents:

Actually, this is pretty amazing: In 2007, DTCC settled the vast majority of securities transactions in the United States, more than $1.86 quadrillion in value. DTCC has operating facilities in New York City, and at multiple locations in and outside the U.S.

wack the dog with art kind of report :)

wow, very enlightening. thanks for sharing

If by "enlightening" you mean completely inaccurate, filled with erroneous figures and crack-pot assumptions and conjectures - then ya, the article is very enlightening :upsidedow