MF Global Continues to Undermine the Financial Markets

MF GLOBAL CONTINUES TO UNDERMINE THE

US FINANCIAL MARKETS & THE RULE OF LAW

The trustee overseeing MF Global's liquidation has come out and

confirmed that the amount of customers’ funds of the failed brokerage

are now expected to be at least $1.6 billion. This gap has now risen

from the previous estimate of $1.2 billion. This is the biggest financial

crime perhaps in history far worse than Madoff. This is the outright

theft of client funds that nobody is being called to account for no less

the recipients of such funds being made to return them. The collapse of

MF Global, which was headed by former Goldman Sachs CEO, Senator,

and New Jersey Governor, Jon Corzine, was the eighth-largest

corporate bankruptcy in U.S. history.

About $1.2 billion previously reported as missing has been traced to

customer accounts and banks. The US Regulators are investigating only

whether MF Global tapped into client money from clients' accounts as its financial condition worsened.

They are ignoring the fact that it was trading with client money prior to the last few days. Brokerage

Houses are required to keep customer money separate from the firm's money but that is simply not

being enforced in the instant case. Judge Glenn has a history of ignoring the law. In the case of Princeton

Economics, a public mutual fund was under management at Deutsche Bank. He seized the entire public

mutual fund without tracing any alleged assets, and made all the customers in the public fund PROVE

the money they put into the fund was theirs. As any lawyer what is the law. If a receiver is going to seize

assets, he has to prove he has a right to do so. Martin Glenn reversed the law, proved NOTHING of the

sort, was prepared to confiscate depositor’s money to help New York Bank as he is again doing right

now, and made people prove it was their own money. Every investor in the public fund had to sign an

affidavit swearing it was their money. And they made this guy a judge.

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About $700 million in customer money is located in Britain. Here the US Trustee, James Giddens, is in a

legal dispute over that money with the British administrator overseeing the liquidation of MF Global's

division in London. A large portion of customer accounts that have been affected are from California,

Florida, Illinois, New York and Texas. These amount to about 40% of all claims and represent funds that

belonged to farmers, ranchers and other business owners who utilized MF Global for hedging their

production. Under no circumstances should the clients be losing ANYTHING. The banks that accepted

the funds AS A MATTER OF LAW should have been compelled to return them. When the courts in New

York only protect the NY Banks, you have to be nuts to have any money there.

The Movie, which I believe will be called the Oracle rather than the Forecaster because it translates

better, despite the first hand impression that it is about just Martin Armstrong, is not quite true. It is a

piece on the Financial Crisis we face – the Sovereign Debt Crisis, and the only Solution available. While

there have been proposals of even returning to a gold standard, these are noble steps that will not solve

the problem. It really does not matter what money is, there will not be enough of it to pay the debt and

the unfunded liabilities going forward. This is a film about the Greatest Economic Crisis post-Fall of

Rome. It is a film so important to our survival and the survival of our progeny that the funding for this

piece is global and it will be released around the world. Since Princeton Economics was by far the largest

corporate and institutional advisory in the world, I have agreed to be the focal point around which the

story is told. This is a story that has to be told in order to save the day after tomorrow. We all know

something is wrong. It is time we deal with this crisis head on. The debate will begin with this feature

film. It will force governments to start addressing the issue they all just ignore.