Jul 26 2023

The CDBD Crisis of 2025

Armstrong Economics Blog/Cryptocurrency Re-Posted Jul 26, 2023 by Martin Armstrong

QUESTION:

1. Due to the draconian rules the US digital currency shall operate under, would you consider the coming US digital currency to be the worst form of currency—worst store of value—worst asset to hold, and if so would it be better to get entirely out of cash before the US Dollar is canceled and the digital currency introduced?
2. When the US Dollar is canceled, will the entire value of all bank and brokerage accounts be automatically converted by banks and brokerage firms to the new digital currency?
3. Do you think there will be draconian rules, such as digital ID’s, instituted to be able to access the internet in 2025 to be able to access and cash out of bank and brokerage accounts?
4. What use will it be to invest in anything post 2024 if money in brokerage and bank accounts automatically becomes digital currency subject to draconian rules with draconian rules to access or take possession of the funds in one’s bank or brokerage account?
5. In the interview you did on May 20th you mentioned “they” are talking about bank bail-in’s. Aside from bank accounts, could bail-in’s be done from people’s brokerage accounts?
6. If one does not “opt in” to the new digital currency and if every legal financial transaction from the point the US introduces the digital currency must be made via the new digital currency, how will one be able to pay their taxes and property tax and will such a person lose their house and their assets be confiscated for not paying their taxes and property tax if they choose not to take part in the digital currency, digital ID and digital health pass?
7. Do you think inheritance will come under rules so draconian that sane children would prefer to forgo their inheritance rather than opt into anything that could harm their health and limit their freedom? Or do you think “they” will just abolish inheritance altogether?
Would you recommend putting all assets and accounts in one’s children’s names now, to avoid this possible scenario as far as it can be avoided?
8. During World War 3, if the US gets nuked or if at any time in the future there is an EMP attack or a severe cyber-attack and the grid goes down for an extended period of time, what shall become of bank and brokerage accounts?
Thank You Sir

D.I.

ANSWER: Undoubtedly, this entire scheme of digital currencies will be the death of Western Civilization. The Founding Fathers prohibited Direct Taxation which was repealed during the Marxist movement toward creating the Income Tax. Once the income tax was imposed, the government then needed to know everything you did. That is why the Founding Fathers prohibited any form of direct taxation. Now even a journalist, if he fails to comply with the demands of the government, is targeted by the IRS. This allows them to go after anyone unless you are the son of a senile president who does as he is told. So yes, this will be the WORST currency in human history and it will be the final nail in the coffin of freedom.

They will most likely cancel all currencies AFTER the US 2024 election. It will need to be coordinated to prevent capital flight. Whatever is in bank accounts or brokerage accounts will be re-denominated in the new digital currency. The IMF is pushing hard to replace the dollar with its version. The likelihood of the collapse of the IMF and world institutions will probably arrive in 2031.

Big Tech will comply. They are already stripping us of our freedom of speech. This will become IMPERATIVE to oppress all freedom in hopes that they can establish this new totalitarian state which is the dream of Klaus Schwab and his band of merry thieves at the World Economic Forum. So the Internet will be highly monitored and restricted.

The point of investments post-2024 will be to hold on to tangible assets. They will make the transition from one currency to the next.

As far as bail-in’s being applied to people’s brokerage accounts the answer is yes. That was already done by Judge Martin Glenn who presided over M.F. Global bankruptcy and created the first BAIL-IN without Congressional Authority. He was the first one to engage in FORCED LOANS by abandoning the rule of law to help the bankers and protect Corzine from losses by taking client accounts to cover M.F. Global’s losses. That is no different from what we saw in Cyprus. He simply allowed the confiscation of client funds when in fact, the rule of law should have been that the bankers were responsible and M.F. Global’s losses, and it should have been reversed. Never should the client’s funds be taken for M.F. Global’s losses to the NY Bankers.

You will have NO “opt out” avenue. Taxes and commerce will all be digital. This is why they are pushing 5G in order to create instant transfers to enable them to replace cash transactions.

Regarding inheritance, the LEFT is also ready to push behind the curtain that upon death, everything should belong to the state. I fear this will only unleash civil war. Nevertheless, there is the crazy leftist in Australia proposing just that. It is unfair for one person to have wealth and another nothing. Concerning putting all assets and accounts in one’s children’s names now, avoiding this possible scenario as far as it can be avoided carries tremendous risk. It all depends on your country. When I bought a house 30 years ago, I simply added my children’s names. Today, you can’t do that, for it becomes taxable to them.

While we cannot rule out tactical nuclear weapons, the risk of an EMP attack will be devastating. That will wipe out the economy and take down the internet. The prospect of whatever you have in an account could simply vanish. That is one primary reason I am against the whole crypto-CBDC agenda, for in times of war, an EMP could devastate an adversary. I think this simply warns you should have some old silver coins pre-1965.

Jul 26 2023

The Rising Civil Unrest Thanks to WOKE

Armstrong Economics Blog/Civil Unrest Re-Posted Jul 26, 2023 by Martin Armstrong

Indeed, Go Woke = Go Broke. Bezos is going to lose $100 million with the Washington Post, which has also lost its mind trying to move so left, they are losing readership every day. One has to wonder when those in the media will wake up and realize that such things as family values exist. The businesses that have embraced WOKE are being targeted, and rightly so. You do not use your business to push an agenda.

People ask me to write about one religion v another. We have readers of every faith, ethnicity, race, and gender. We share a common bond. Government is ALWAYS the enemy throughout recorded history. That is why there are so many revolutions.

This entire WOKE agenda is undermining the very fabric of civilization. It is dividing the people into groups so we do not join together to see the common enemy. While all of these people seem to be so caught up in patting each other on the back for their anti-Democratic, anti-family, and anti-culture positions, they have failed to comprehend that they are really creating discrimination against the Gay community by pushing this transgender promotion without ever looking at the consequences. Those who identify as transgender are less than half a percent of society. Yet they demand to be called a woman, and everything else must change for them. That is reverse discrimination.

PM Trudeau of Canada is obviously unable even to understand the problem. You cannot be pro-Transgender & pro-women’s rights simultaneously. The two have become mutually excludable. As I have said before, Thailand is the sex-change capital of the world. There are plenty of Transgenders there, and there is no discrimination. The difference is that the Transgenders call themselves Ladyboys – they do not demand that women can no longer be identified, and mothers are just birthing machines – nothing more. So what is next? Mother’s Day will become offensive to someone, so we must change it to birthing person’s day?

In pushing the transgender mantra, they are discriminating against women. Girls are losing in every sport because some guy, who can’t win in a male competition, claims he is now a woman and comes in first. Mothers are no longer a mother because they are just birthing machines. Then we have a Supreme Court Justice who claims she cannot define even what a woman is anymore.

The Blue States have lost their minds. Thank God I left New Jersey. Contributing even 10 cents in taxes to this state is so offensive, for they have abused their power and are tearing down the family unit. This government is blocking parents from knowing that a minor has been manipulated into thinking they should change their gender. When I was just a teenager, I started smoking because everyone else was doing it. You do things at those ages to prove yourself for manhood. I lost a friend in 9th grade to alcohol poisoning because drinking was cool. If someone should nude photos of someone under 18 and talk about having sex, you would see them charged with child molesting. Is it OK for teachers to indoctrinate children at such a young age and then hide it from their parents?

I am sorry. These people are SICK. They are making it highly dangerous for simply gay people, who are all starting to be thrown into this same category because our politicians have lost their minds.

Jul 26 2023

The House Oversight Committee and Biden Investigation

Posted originally on July 25, 2023 | Sundance

CTH has never pretended or played the game of pretending, but several people have discussed the House Oversight and Government Reform Committee against the backdrop of the Joe and Hunter Biden investigation. Thus, some general reminders about inside DC politics are perhaps valuable.

The House Oversight and Government Reform Committee, hereafter called the House Oversight Committee or HOC, has a very specific function in DC that too few understand. Once again, let us be clear while trying to explain decades of false information founded upon arcane legislative outlooks.

This article is specific only to the House Oversight Committee.

Within Washington DC, the HOC has a very specific and unique function. What Fox News is to corporate conservative punditry, so too is the HOC to the same DC system of pretending. The House Oversight Committee is the “Chaff and Countermeasures” committee. The HOC operates for both parties with the same mission.

In recent years, the appearances by various DC politicians on the Sean Hannity show should serve as a key indicator for the Chaff and Countermeasures operation. If the politician is on the Hannity ‘tick-tock’ show, you are watching countermeasures. We are not yet at the point where this is widely understood, it will be for the next generation to look back and expose it.

♦ HOC – The House Oversight Committee was/is created by the House legislative leadership to make money for the party in control of the Chair. When the House Speaker is notified of a DC corruption issue, inside his/her office they will often be heard saying, “give it to oversight.” The intent of that instruction is to give the issue to the HOC, so they can hold hearings, create soundbites and fundraise from the issue.

Making money for the party in control of the Chair is the primary function of the House Oversight Committee. The HOC does not exist to create accountability or oversight; the HOC exists to exploit the issue for fundraising and satiate the base voters of the party in control of the Chair. The HOC presents the illusion of accountability by constructing soundbites and member performances which are then broadcast on television for appearances to the voting audience. It is essentially theater.

The HOC is a “general oversight’ committee, not a committee of “specific jurisdiction.” Thus, the HOC is the vehicle where Democrats and Republicans publicly display their political initiatives, frame their narratives and then broadcast them on MSNBC, CNN (Democrats) or FOX NEWS (Republicans).

Depending on the issues at hand, the HOC committee members are generally those performance actors best known to the audience of both parties. This is not accidental; this is by design. Again, for emphasis, I am only talking about the HOC, a “generalized oversight” committee. Only this specific committee has this specific mission.

A hot button topic enters the committee ecosphere. Specifically trained staffers and performance artists, uniquely qualified to put on theatrical productions (both parties), are then deployed to assist the representatives in creating the soundbites that hopefully will go viral and assist them with fundraising and opportunities to say, “here’s what we are doing.” Outlining this construct is not an exhibition in cynicism; this is the reality of what the HOC is designed and created to do.

When you see the HOC performing at their best, you will see lots of soundbites created.

The Chair of the HOC is always part of the House Speaker’s close inner circle. From that association you will discover by training, by habit and by consequence, the HOC framework is developed to sustain the process itself as an end result.

The questioning is the sum total of all accountabilities. The performance is the interview; the conversation is the point; the smoke is the fire.

Oversight, in the HOC framework of narrative creation, has evolved into reveling in the endless process (a fundraising proposition) and, as a consequence, it completely ignores the end point, misses the bottom line, doesn’t actually SEE the subject matter, and never actually applies accountability toward what might be discovered. This is why you end up with high blood pressure, frustrated with the questions not asked, and throwing bricks at the screen or monitors when viewing.

The point of HOC hearings is to create what are now described as “viral moments” that can be used to generate money. The second, and lesser objective, is to give the illusion of accountability while not actually ever holding anyone or anything accountable. See prior HOC reference points like Fast and Furious, IRS targeting, Benghazi, the Twitter Files of the most recent Hunter and Joe Biden bribery schemes.

If you watch the HOC Twitter hearing through the prism of expecting some form of accountability for the pay-to-play corruption, you will be frustrated and disappointed. However, if you watch the HOC hearings through the prism of how well the panelists will do at raising money from their performances, then you can evaluate the effectiveness – the proverbial winning and losing.

The HOC is designed by House leadership to perform the same basic function for both Democrats and Republicans. The HOC committee assignments are selected based on the theatrical skills of each representative.

This is not to say the motives of the members are sullied or impure, it is simply to point out the motive of the committee itself is to generate fundraising from the skillsets of the members on the committee.

Once you fully grasp what the intent of the House Oversight Committee is about, and once you drop the expectation that any accountability in oversight is the intent, then you can watch the performances through the entertainment prism of partisan politics and genuinely enjoy them. There are, after all, some exceptional soundbites and moments created by the hearings themselves.

The HOC is called the “Chaff and Countermeasures” Committee, because that’s essentially what the committee does. The committee gives the appearance of targeting, steers the target to a controlled destination, and then distracts the audience from the outcome of accountability.

If sunlight is achieved, meaning the Mainstream Media cannot ignore the issue as presented and questioned, and if the general public become more familiar with the controversial subject matter or topic at hand, and if the party of the Chair can fundraise from the issue, then the committee has succeeded. However, if you are looking for something to change as an outcome of any HOC hearing, you will be disappointed.

All of the insiders in Washington DC know this to be true; but, when discussing the HOC specifically, the insiders cannot violate the DC code of omerta and make this reality a part of the public consciousness. To make this operational mission widely understood is to diminish the financial value of it.

Jul 25 2023

Ukraine Complete Disaster – Neocons Lose Again?

Armstrong Economics Blog/Ukraine Re-Posted Jul 25, 2023 by Martin Armstron

Ukraine is a complete disaster. I have been warning that our sources from UKRAINE, not Russia, have been warning that the country is on the brink of collapse. The American Neocons are being confronted with the fact that there NEVER was any chance that Ukraine would defeat Russia and putting this high-heel questionable gender dancer in high heels in charge of war was in itself a war crime. There is absolutely no war Ukraine can win anything. This is why Zelensky has been so desperate o drag in NATO because he knows they cannot retake the Donbas no less defeat Russia. The American Neocons were hoping to weaken Russia so they could contrive some scheme to justify going in for the kill.

There are rumblings behind the curtain now that a peace deal has to be struck of Ukraine will collapse if their own troops do not rise up and assassinate Zelensky for his profiteering and slaughter of his own people. After all, numerous Roman generals found themselves in a position where they did not want to fight so they assassinated their leader. In the case of Maximinus I (235-238AD), his own men, humiliated by their defeat, now entered the tent of Maximinus and murdered him. To demonstrate their new loyalty to Rome, they cut off his head and sent it to Rome. This was no isolated incident. It became rather common for the troops when ordered to fight a wrong war, turned to assassinate their own general.

The fact that the Wall Street Journal on July 23rd wrote:

“Western military officials knew Kyiv didn’t have all the training or weapons—from shells to warplanes—that it needed to dislodge Russian forces. But they hoped Ukrainian courage and resourcefulness would carry the day.”

The fact that this even appeared in the press shows that there is discontent behind the curtail. All we have heard to date are lies about how Russia is weak and losing. That is precisely the opposite of the truth and that is info from Ukraine – NOT Russia. Zelensky has kept up a false image of victory only to keep the money flowing into Ukraine. The population of Ukraine had stood at about 36 million before the war. At least 500,000 are now dead and the real number of Ukrainians who have fled their home may now exceed 10 million. Zelensky has destroyed his country all for the Donbas which was never Ukrainian territory nor occupied by Ukrainians. This has been a proxy war against Russia and Zelensky has BETRAYED HIS OWN PEOPLE for a handful of silver.

Selensky’s dream of selling Ukraine to Blackrock is really disgusting. He has had no problem letter his country brun because the more that burns, the greater the rebuilding project. He has been bragging that this will be the biggest investment opportunity for Europe with no mention of how many Ukrainians must die for he dream. Many have compared him to Nero letting Rome burn so he could build his grand golden palace.

Poland is likely to take Western Ukraine in the outcome here. That was their territory 1918-1945 and the Ukrainians slaughtered more than 100,000 Polish simply for ethnic cleansing. What is not given a lot of attention is that within Ukraine, there are ethnic Polish and Hungarians who have also been abused by the Ukrainians. The Ukrainians did far worse than just killing Polish for which they have refused to ever apologize.

The Polish Association of Memory of Victims of Crimes of Ukrainian Nationalists documented 135 methods of torture and murder practiced by Ukrainian Nazis. Poland officially called the Ukrainian actions genocide. The Ukrainians have been protected by the CIA for decades ONLY because they hated Russians. They continue to protect the Ukrainian Nazis only because they are waging war against Russia.

The Ukrainians were unprecedented in their war crimes during WWII and the sheer outright cruelty one would expect only exists in some B-Rated horror movies. This included:

Running children through with stakes
Cutting a person’s throat and pulling their tongue out through the hole
Sawing a person’s torso in half with a carpenter’s saw
Cutting open the belly of a woman in an advanced stage of pregnancy, removing the fetus, and replacing it with a live cat, before sewing up her abdomen.
Cutting open a pregnant women’s abdomen and pouring in broken glass
Nailing a small child to a door.

In retribution, Ukraine is likely to lose the Western provinces to Poland. As I have said before, Ukraine had finally achieved sovereignty. They have thrown that all away for their hatred of Russians when in fact the

What the Ukrainians overlook is that Stalin’s seizure of the food from Ukraine and their starvation have two MAJOR factors they do not want to acknowledge.

(1) Stalin was not Russian, he was from Georgia.

(2) Stalin’s right-hand man proposed starving Ukraine and he was Ukrainian – NOT Russian.

Lazar Kaganovich (1893-1991) was in charge of taking the food from Ukraine. Some say he was Jewish and sought retribution against the anti-Jewish attitude in Ukraine. His real name was KAGANOVICH, LAZAR MOISEYEVICH. He joined the Communist Party in 1911 and became a member of the Kiev committee of the party in 1914. The following year, he was arrested and restricted to residence in Kabana. He fled Ukraine and lived in various parts of Russia under the false name of Kaganovich. There he played an active role in the October Revolution in the Red Army. He rose to be the right hand of Stalin and then convinced Stalin to take the food from Ukraine most likely as retribution for his arrest.

Ukraine is a very troubled country. Its people suffer under propaganda and Bandera’s philosophy was pure hatred and ethnic cleansing. In speaking with some very naive Ukrainians, they were told they had to fight for Russia and would not stop with the Donbas. Now they will lose a lot and the West is more likely to be taken by Poland. The only peace deal will be to surrender the Donbas to Russia. Odessa at best would be a neutral demilitarized city to allow access to a port for exports. Zelensky is desperately still seeking to get NATO to intervene and now escort their grain exports. He will never be satisfied until he creates world war III. The entire population of Ukraine stands at best 0.4% – not even half of one percent of the world population.

Jul 24 2023

The CBDCs Are Coming

Armstrong Economics Blog/Cryptocurrency

Posted Jul 23, 2023 by Martin Armstrong

COMMENT #1: Hi Marty
I forgot to mention the ATMS nearby where I live right now.. I use a Credit Union and their withdrawal limit at the ATM at the branch no less has always been $400 these past couple of years. So I would go to the Wells Fargo ATM nearby down the road where I could withdraw $1000 in cash. The machine would ask you if you wanted a mix of 50s and 20s or all 20s.
Well, this past week I went to the WF ATM where I have not gone for quite some time, many months. To my surprise, the withdrawal limit has been reduced from $1000 to $600.
So there you go they are slowly turning the screws to try to cage us all in.
Best
Alice

REPLY: I opened an account at one of the top 5 just for convenience since it was down the street from me. Since COVID, I noticed they closed that branch and many others. If you move to CBDCs, then banks no longer need branches for you can deposit a check on your phone, and they want to eliminate safe deposit boxes because they think people hide cash there.

Jul 23 2023

British Banks Close Accounts for Political Views – Wait for CBDC Currency to Appear

Armstrong Economics Blog/Cryptocurrency Re-Posted Jul 23, 2023 by Martin Armstrong

We have a very serious problem. Banks, Media, and Tech Companies seem to be all pushing for the end of all our civil and human rights. The truth has come out now that the Coutts Bank closed down Nigel Farage’s accounts, and it had NOTHING to do with his finances that they told everyone. That seems to be a serious case of slander and libel. If they would do this to Nigel, how many others are finding their accounts closed?

Here in the good old USA, a gold dealer just informed me that his credit line has been terminated – not because he did not pay. The excuse was that they preferred it to go to zero, not back and forth. It seems as though rumbling of this nature in the USA is increasing. Others who have cash businesses like a bar are finding that they are being discriminated against because they take in cash. Even priests are having their accounts shut down for political reasons.

It appears that the bankers are gearing up for the new CBDC system where all cash is eliminated. The government seems likely to let the banks impose a social credit score and claim it is not the government doing that, so it is not unconstitutional. I suppose they intend to prevent people from paying for medicine or buying food if banks shut down their accounts for whatever pretend reason. I guess that will be the new slow-death penalty for disagreeing with the new narrative that COVID was just the trial run for these days.

Jul 23 2023

IRS SWAT Team – Hunt for Taxes

Armstrong Economics Blog/The Hunt for Taxes Re-Posted Jul 23, 2023 by Martin Armstrong

The story about what looked like a SWAT team was a swarm of armed IRS Agents that stormed into a business in Florida has gone viral. Many point to this as see what happens when you give IRS agents lethal power. I think this needs clarification, and everyone knows I am opposed to arming IRS agents. Nevertheless, there is a HUGE distinction between income taxes and payroll taxes. One you owe personally, but the other is theft if you collected it from employees and did not send it to the IRS, which makes you a TRUSTEE.

Back in the 1970s, I had two armed IRS agents come in with guns and handcuffs. They said I owed payroll taxes. I said wait a minute; my accountant handles all of that. I called him on the phone, and he then said put me on with them. He said he writes the checks on payroll himself and sends them in. It just so happened I was getting refund checks often. One had just come in, and it was on my desk. I said if I owe you, people, money, why do I keep getting refund checks? They looked at the check, and it had some code they recognized that denoted it was a refund for payroll taxes. It turned out to be a computer error on their part, and every time we would send in the payroll taxes, it kept trying to apply it to one month where I owed $2 and something refunded the rest. But they were to me personally, so I had no idea there was any distinction. They left, and I had to pay interest for cashing the checks that I someone should have known was their mistake.

A few years ago, again, I got a refund check and just deposited it. Once more, I was charged interest and penalties this time because I should have known it was an IRS mistake. The third mistake was that they put a lien on my house, and I never even got a bill. Once again, they failed to credit a payment I had sent in the previous year, but it took months to get the lien lifted.

My three encounters with the IRS have always been mistakes on their part. Only the first involving payroll taxes was I confronted by armed IRS agents, and that was simply because payroll taxes puts you in a position as a trustee where you collected the money for the government. I hope that armed IRS agents are confined to this category. I no longer cash refund checks. I have to pay penalties and interest because knowing when the IRS makes a mistake is my burden.

To clarify this armed assault on a business, it was Elite Payroll Solutions. This was not a company that was behind in paying its taxes. This is why the assault was more of a SWAT team; in this case, they were supposed to collect payroll taxes for small businesses and send them to the IRS. That places this in the TRUSTEE category, which is different from simply not paying your income tax.

A word to the Wise – Use only the Big Payroll Companies, not a small one that beats the price.

Jul 23 2023

Report Showing Massive Dark Money Group Funneling Large, Potentially Foreign, Cash Donations into Biden Super PAC

Posted originally on the CTH on July 22, 2023 | Sundance

As the network of Joe and Hunter Biden’s financial influence scheme through various LLC’s and dummy corporations continues to puzzle investigators, a similar scenario arises within the political campaign fundraising for Joe Biden’s Super PAC.

Fox News digital has some of the preliminary information extracted in a recent article [SEE HERE] and when you couple those big donations with the information previously shared by James O’Keefe [SEE HERE], what emerges is a system of top-down money laundering.

(Via Fox) – A super PAC crowned as the primary outside committee backing President Biden’s re-election efforts has received large sums from a dark money nonprofit that has acquired tens of millions of dollars from a mysterious entity, Fox News Digital has discovered.

Biden and his confidants elevated the Future Forward super PAC as the central outside political fundraising vehicle to back his candidacy, the New York Times reported. Senior White House adviser Anita Dunn told the publication it “really earned its place as the pre-eminent super PAC” to support his 2024 efforts.

“In 2020, when they really appeared from nowhere and started placing advertising, the Biden campaign was impressed by the effectiveness of the ads and the overall rigorous testing that had clearly gone into the entire project,” Dunn said.

In recent years, The Future Forward PAC’s related nonprofit arm, Future Forward USA Action, has pushed tens of millions of dollars into the super PAC’s coffers while concealing its donors’ identities. These actions could continue during the 2024 cycle, which means the public would remain in the dark about major benefactors financially assisting the leading outside group backing Biden as the election draws closer.

While Future Forward USA Action hides its contributors, Fox News Digital has discovered that a significant amount of its cash was passed through a web of dark money nonprofits overseen by the Arabella Advisors consulting firm, adding an extra layer of secrecy that further masks its original donors. One such Arabella-managed entity, however, appears to have flown entirely under the radar. It contains no online presence outside its incorporation records and tax forms.

The shadowy group, called the Impetus Fund, quietly formed in Washington, D.C., on July 1, 2020, records show. According to its tax documents, Ezra Reese, an attorney at the Elias Law Group, acts as the group’s president. Its board consists of three other individuals, including general counsel Saurabh Gupta, who is Arabella Advisors’ chief legal counsel and compliance officer, and secretary Andrew Schulz, who formerly served as general counsel of the Arabella-managed New Venture Fund but appears to have moved to the Adler & Colvin law firm.

During the 2020 election cycle, the Impetus Fund received $67 million from what appears to be a single anonymous donor, its tax forms show. It turned around and disbursed nearly all of its cash to a handful of nonprofits such as America Votes, Center for Voter Information, Vote Tripling Action Fund, ACRONYM and the Cooperative Impact Lab. (read more)

So large sums of money come into the network from a small group. That money is then transferred through various mysterious entities into smaller groups, albeit still receiving large sums of money. The smaller groups then need to launder the money into directed objectives and goals.

This is where James O’Keefe’s research starts to take on a context.

“The O’Keefe Media Group broke its first story investigating what appears to be a national plot to utilize senior citizens matching a similar profile as vehicles to launder millions of dollars into political campaigns.” [link]

James O’Keefe uses publicly available FEC data to locate donors who are reported to have given thousands of donations to Act Blue. However, the people listed on the FEC reports have no idea why there is a massive difference between the number, frequency and scale of their contributions, compared to their actual donations. The differences are massive.

One of the possible explanations is that people inside ACT BLUE use previous organic donor activity to fraudulently launder donations that come from larger networks.

By breaking up large donations into smaller amounts, it gives the appearance of a larger support base (small donors) and washes the fingerprints away from the identity of the originating large donor, individual, group or institution.