In Babylon's Banksters I wrote about the Gaussian copula formula of Dr. David Li and how that was used by Wall Street banksters to create a whole new kind of financial security instrument: the credit default swap. One of the securities used as collateral - as we all know by now - were home mortgages. Add to that mix banksters who are totally corrupt, wholly given over to greed, and in bed with corrupt politicians, and what do you get?

You get Mel Brooks' comedy film and Broadway musical, The Producers. I have to admit, until I read the following article, I had never thought about it in this way, but this fellow lays it all out as best as anybody:


As the author of that piece notes, the two characters in The Producers, a washed-up Broadway producer and his fame-hungry accountant - played by Zero Mostel and Gene Wilder in the original movie release, and by Nathan Lane and Matthew Broderick in the movie remake, modeled more closely on the actual Broadway musical - decide they can make money by producing a total disaster of a play, and over-subscribing it, i.e., selling thousands of precentage points to several investors, and then, when the play flops, make away with a fat profit, leaving the investors none the wiser.

Well, in the movie, the producer and his crooked accountant find the very worst play they could possibly find to stage in liberal New York - a real dog called "Springtime for Hitler" written by an unrepentant Nazi - and then, to really sink the play's chances, decide to produce it as a musical, hiring a gay director to stage the whole thing complete with chorus and dancers goosestepping their way across Europe while singing outrageous lyrics in praise of Hitler. So elegantly and exquisitely bad and mis-staged is the whole production - the opening chorus alone is worth the price of the movie in either version - that the result is not, as they had hoped, a total failure, but rather, a Broadway success. And of course, with that, the crooks are caught when their over-subscription is found out. In the movies, of course, the two crooks go to prison.

Hence our writer's analogy: the crooked banksters did essentially the same thing, selling the same home mortgage over and over again as components in the huge bundles of securities called credit default swaps, committing fraud on a massive scale, but, like the Producers, hoping that the market would not go south and leave them caught with their fraud exposed. But the market did go south, and the fraud was exposed when several banks, each thinking it owned the mortage on a property no longer making payments, foreclosed on the property. Woops.

Well, the author's point in the article linked above is well-taken. It was a simple and elegant scheme, and might have worked if the whole thing hadn't gone south. But it made me think of how the whole principle could be usefully employed elsewhere, like Bin Laden's over-subscribed death, for example.  How many times has he died? Well, most recently it appears that a fraud has been perpetrated, and is being exposed as such by any number of people pointing out holes in the story, and the possibilities - some more plausible than others - that he died earlier.

In short, the "war on terror" was over-subscribed, and deliberately so.

The problem here is - as the author of the linked article also observed - that the big European banks, Deutsche Bank in particular, seem alive to the fact that they were defrauded, and are perhaps behind the scenes wreaking some sort of revenge (and is this why the big German bank just bought the New York Stock Exchange?). So that raises another question: what sort of "retaliation" for the over-subscribed death(s) of Bin Laden will be in the works?

Perhaps the question is a moot one, for the bottom line is, we're watching theater, and a badly scripted one at that.



Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. marcos anthony toledo on July 2, 2011 at 1:23 pm

    Thank you mr.Farrell for putting on the remake of The Producers by the way there is a 1950s tv show title Racket Squard that had a episode like the scenario in both movies and stage show in that version you had a stage producer with a line of flops but in the tv show his partner in crime was his leading lady in his plays and the name of the play in the scam was title Uncle Toms Penthouse could this show have inspired Mel Brooks or were they both drawing on the same source material. As for the Germans using economics as revenge they are experts in that when Germany got stuck with the bill for WW1 they went into state sponsored counterfeiting which lead to the Great Depression and WW2 follow by the Cold War and you know the rest.

  2. Jay on July 1, 2011 at 5:07 pm

    Today I read a story that prosecutors are having serious doubts about the accuser’s story. Hmm … The day he was arrested was the day the USA deficit broke the $14.3 trillion legal limit under IMF regulations. Instead of headlines stating “USA OFFICIALLY BANKRUPT, IMF TO TAKE OVER” we had “IMF PRESIDENT ACCUSED OF RAPE.” They got him out of the way long enough for the Fedsters to overcome that inconvenience and get on with their crime spree…

  3. nick on May 25, 2011 at 6:40 pm

    Joseph, have you read this academic paper by Vladimir Z. Nuri?
    “Fractional Reserve Banking as Economic Parasitism”

    Biology, Physics, Finance and Economics are brought together much like your work. He lays out some thermodynamic equations to look at money as an energy system.

    This paper looks at the history of money and its mod-
    ern form from a scientific and mathematical point of
    view. The approach here is to emphasize simplicity.
    A straightforward model and algebraic formula for a
    large economy analogous to the ideal gas law of ther-
    modynamics is proposed. It may be something like a
    new F = ma rule of the emerging econophysics field.
    Some implications of the equation are outlined, de-
    rived, and proved. The phenomena of counterfeiting,
    inflation and deflation are analyzed for interrelations.
    Analogies of the economy to an ecosystem or energy
    system are advanced. The fundamental legitimacy
    of “expansion of the money supply” in particular is
    re-examined and challenged. From the hypotheses
    a major (admittedly radical) conclusion is that the
    modern international “fractional reserve banking sys-
    tem” is actually equivalent to legalized economic par-
    asitism by private bankers. This is the case because,
    contrary to conventional wisdom, the proceeds of in-
    flation are not actually spendable by the state. Also
    possible are forms of “economic warfare” based on
    the principles. Alternative systems are proposed to
    remediate this catastrophic flaw.

    The 62 page pdf can be downloaded from a quick google search.

    • Joseph P. Farrell on May 26, 2011 at 8:03 am

      Looks very good…no I wasn’t familiar with it but thanks for posting!!!

  4. Jon on May 24, 2011 at 7:30 pm

    To take this discussion even further afield than it already is, it occurred to me that the ban on incandescent bulbs might have something to do with tungsten and the phony gold market. Maybe they need to use more tungsten for fake gold bars, and that is why they are banning the bulbs….supply issues.

    Just a thought…

  5. Lee on May 24, 2011 at 6:18 am

    I m over reacting at all! Just saying that Mr. Farrell prides himself on meticulous research and I don’t see that done here. An as you say he’s drawing an analogy between the three, I don’t see it. That doesn’t mean I’m attacking him or that I was offended just the opposite. Sometimes what you put in print doesn’t come across the way you meant it. But your meaning comes through loud and clear: a-na-o-gy noun. REALLY! I didn’t known that! As John Lennon once wrote ” how do you sleep at night ” might be apropos to this situation. Your in over your head reaching for stuff that isn’t there!

    • Joseph P. Farrell on May 24, 2011 at 7:09 am

      You’re perfectly within your bounds… I’m not offended nor did I feel attacked. I am just speculating a bit.

      • Lee on May 24, 2011 at 8:51 am

        Thank you for your kind reply. I do enjoy your books and your interviews on the Byte show in fact Im listening to the Cosmic War series for the second time and finding that I missed some info. Keep up the good work and the interviews on The Byte Show.


  6. Lee on May 23, 2011 at 11:06 am

    Well your trying to tie this article in relation to the banker rapist REALLY! Where’s the correlation! Or should we as Grace Slick said: ” go ask Alice when she’s 10 feet tall ” Your trying to draw the parallel between banking scandal in the mortgage market to the the movie ” The Producers ” to the banker rapist.REALLY! Or maybe we could ask Kenny Rodgers when he sang ” just dropped in to see what condition my condition was in ” How do you draw a corollary between the three? Where is the consistencies between what the banker rapist did to what the bankers are doing to the play The Producers? You must admit if for you this is quite a stretch! I’m a little disappointed considering you pride yourself on meticulous research and I fear you have done no research at all.

    • Ridge on May 23, 2011 at 6:01 pm

      He is drawing an analogy. The girl was allegedly raped by a banker and the middle class was “raped” by bankers pulling the same stunt as the characters in The Producers.

      a·nal·o·gy Noun
      1. A comparison between two things, typically on the basis of their structure and for the purpose of explanation or clarification.
      2. A correspondence or partial similarity.

      You seem to be overreacting. As Mel Gibson would ask, Do you have a dog in this fight? If you do I can see why you would be so sensitive about this issue. But just because someone is offended by something, it does not follow, that no one should be allowed to discuss it.

  7. Concerned Friend on May 23, 2011 at 10:36 am

    Correct me if I am wrong, but I thought it was the Deutsche Borges Group (the holding company owning the actual Deutsche Borges exchange) that was purchasing NYSE-Euronext? Unless Deutsche Bank is financing the merger/acquisition?

    • Concerned Friend on May 23, 2011 at 10:36 am


  8. Jay on May 23, 2011 at 7:05 am

    I think it a bankster marketed lie to simply say that those credit default swaps simply included mortgages–there was a lot of other side bets falsely insured by those cdos. And the fact that we’re not ever going to see what was in them is a much bigger problem than simple mortgages.

  9. Dashiell Cabasa on May 23, 2011 at 6:30 am


    I was listening to your interview Dr, Farrell about your book on LBJ and the Kennedy murder and you were quoting that ‘springtime for Hitler’ chorus and I was laughing along and thinking…kind of sums it all up really, as thats exactly what all this is one way and another. Given the other titbits of info about everything from lauch windows on de Fuhrer’s birthday to the fraud on Wall Street lol
    ‘Spring timeeee for hit-lerrr and Shermany…’ kick , turn, kick

  10. Spirit Splice on May 23, 2011 at 5:35 am

    Sadly, the theater is what ends up in the history books and the next generation is none the wiser.

    • Diamantis on May 23, 2011 at 10:35 am

      yes thats a quotable bit of wisdom.
      .. and in the same theatrical ‘operation’; thats why we ended up with Shakespeare, when Marlowe was made to ‘exit’

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