My name is Nick Guarino. For more than 30 years, I’ve been one of the most controversial market analysts and commodities traders in the world. I am also a convicted felon: In 1992, I served 18 months in a federal penitentiary for wire and securities fraud. My enemies on Wall Street and in the government contend that I am a fraud and a charlatan, out to steal people’s money. The truth is, I publish very expensive investment newsletters that cost as much a $5,000. Many people do that, of course, but my viewpoint is so radical and extreme – I believe Wall Street is a giant casino rigged in favor of the big investment banks and insiders – I am clearly a public menace. I believe people’s core wealth should be invested in U.S. Treasury bills, foreign currencies and virtually nothing else.
Plus, U.S. government regulators are hypocrites: They target small investment advisors like myself for charging $5,000 for their newsletters… and then let their friends at the big Wall Street investment banks and brokerages go Scot-free when they wipe out people’s life savings.
Rightly or wrongly, I contend that most of my legal problems stem from what I do for a living — which is to expose the lies and manipulations that Wall Street uses to fleece small investors out of their life savings. I believe that my 1992 jail sentence was set up by Bill Clinton’s powerful friends in the Federal government, to get me out of the way just long enough for Clinton to be elected — but I’ll tell you more about that in a moment.
More recently, in 2004, I was ordered by a Federal court (without trial) to cease publishing my advisory newsletter, The Wall Street Underground, or risk being once again thrown into jail.
The Commodities Futures Trading Commission, the federal agency charged with enforcing laws regulating the futures industry, contended that I was functioning as an “unregistered” Commodities Trading Advsior (CTA), not a newsletter publisher protected by the First Amendment — even though I never touched anyone else’s money and never gave individualized advice. (I only published a newsletter.)
This wasn’t the first time government regulators had gone after newsletter publishers: Similar efforts in the 1980s to “regulate” stock newsletters by the SEC had been overturned by the U.S. Supreme Court, in the famous Lowe decision, but the CFTC, which regulates commodities and not stocks, claimed it was not bound by the First Amendment protections offered by Lowe.
The bottom line is that I was forced to pay literally millions of dollars in attorneys’ fees and fines if I ever wanted to publish again… but I did and now I am legally allowed to speak the truth as I see it, at least for now.
So, you might say I have a checkered past. But here’s what you may not know: I have accurately predicted some of the most significant market events in the past 30 years — including…
… … Bill Clinton would be impeached — and his financial dealings in Arkansas, including questionable commodities trades involving Hillary and the largest employer in the state, would be exposed.
… Gold would soar from $325 an ounce to above $900. It hit that price on January 15, 2008 at the London Fix. As I write these words, it has topped $930 an ounce. (At the same time I said gold was the bargain of the century, Wall Street called it the “barbaric relic of the past.”)
… The dollar would fall to its lowest level in decades. I begged my subscribers to buy Euros. Since then Euros have soared over 50% against the dollar;
… The housing market bubble would pop and real estate prices would tumble. Housing values would plunge. I told anyone who would listen to sell every piece of real estate they owned, anywhere in the world — and that they would be able to buy it back later for 10¢ on the dollar. Housing prices have fallen faster this year than at any time in history, with the worst yet to come;
… Sub-prime mortgages were a scam that would collapse and wipe out millions. I said people who were practically drooling on the mortgage application were buying $400,000 homes with no money down…and that this was just the start of the bad-mortgage meltdown. I warned people to get completely out of debt. I said the greatest debt orgy the world has ever seen would topple the U.S. financial system.
… The stock market would rally to new highs, and then have its biggest crash ever.
For each of these predictions, I was labeled a lunatic by Wall Street’s so-called “experts” — an out-of-control “rogue” trader who was preying upon the gullible.
The “experts” on Wall Street and in the Federal government knew better: Dot.com stocks would continue going up forever… gold was a “barbaric relic of the past”… mutual funds were safe… and we’re running out of oil. Some said that I am merely a “Perma-Bear” and, after all, a stopped clock is right once every 24 hours.
But here’s what they don’t want you to know: My lunatic predictions made many of my subscribers a lot of money. Not all of them, to be sure — but many of them. I can’t give you specifics because the Federal government claims that, unless I print out every single trade recommendations I’ve ever made, I will be committing “fraud” and they can throw me in jail. (That is how the Feds now censor information they dislike: If you leave out any detail of anything you ever wrote, you’re committing “fraud” and guilty of a felony.)
But let me put it this way: If you had bought gold when I told people to, when it was selling for $260 an ounce, do you think you would have made money when it rose to over $1,000 an ounce, as I predicted it would?
In any event, here is my side of the story… the story Wall Street and Federal regulators don’t want you to know…
The Untold Story of the Man Wall Street Tried to Silence
When the world last heard from me, back in late 2003, everything was going extremely well.
My analysis of the markets was right on target. My trading recommendations had never been better. Many subscribers to my premium services told me they were making enormous amounts of money.
Wall Street painted me as a rogue and an outlaw. But my loyal subscribers knew I was giving them analysis and recommendations they couldn’t get anywhere else.
Most important of all, my message was getting out to a much larger audience.
We had launched a successful radio show, Radio Free Wall Street. I was broadcasting on some of the largest radio stations in the country. Including America’s biggest talk radio stations, such as WABC from the heart of Wall Street in New York, and KTLA in Los Angeles.
Millions of people were hearing me each week. They were learning the lies, misinformation and outright fraud being foisted upon average investors — both by Wall Street and its conniving politicians in the Federal government.
They were hearing a radically contrarian message, that no one else was telling them. I warned them over and over again about the derivatives time bomb that would soon wipe out the U.S. economy. People were loving my message…
Then, out of the clear blue sky, all hell broke loose… and I was running for my life…
The Clintons, Whitewater & Government Harassment
As you may know, throughout the 1980s I owned a commodities brokerage firm headquartered in New York’s World Trade Center. We also had offices in Houston, Texas, and, of all places, Harrison, Arkansas.
At the time, I was considered one of the most successful commodities traders in the world -– and still am in elite circles.
I knew all the big money players in Arkansas. Many, including Bill Clinton and “friends,” wanted to invest with me. I always turned them down. They did not like that. But because of my contacts there, I knew the inside story on Whitewater, the Arkansas banking scandals, even Bill’s winning way with the ladies.
In 1987, I got tired of being harassed by regulators, who constantly questioned my track record. Our clients knew my track record was true. Our brokers knew. So did our auditors. So did a independent newsletter analyst from Silver and Gold Report: they checked every trade, and then publicly admitted we were right.
But the regulators refused to accept the astonishing results we had achieved. Even when we gave them documented proof. They made my life hell.
That’s why I decided to close down my brokerage firm, and return investors all of their money. Then I sailed off in my yacht to the Cayman Islands. I decided I would never again be in a regulated business or touch other people’s money.
Five years later, I was shocked when, out of the blue, just as Bill Clinton was making his run for president, I suddenly found myself charged with mail and wire fraud. The charges were not related to my commodities brokerage firm, but to a gold and silver business I had started in 1980 in Arkansas. It had gone out of business when I retired in 1987. The federal government claimed I committed “fraud” (there’s that omnipresent Federal charge again!): in fact, the business had simply gone under. The State of Arkansas looked at the same facts in 1988 and concluded I had done nothing wrong and closed the case.
But “fraud” is a difficult charge to defend yourself against. That’s why the Feds use it when they can’t find any evidence of real wrongdoing, but still want to go after people they dislike. (Just ask Scooter Libby or Martha Stewart.)
If anything you say, in any public document, can be proven inaccurate or “misleading” — even if done inadvertently or over insignificant matters — you’re cooked. In any event, to avoid a protracted battle that could last a decade, I agreed to a plea bargain and served 18 months in federal prison. I now regret that decision. I should have fought the bastards.
To this day, I believe I was railroaded over an unfortunate business failure, put in prison just long enough so I couldn’t tell the world what I knew about the Clintons. The way I say it, Bill went to the White House and I went to the big house.
When I got out in 1993, I wanted to clear my name. And I must admit, I wanted revenge.
I did two things:
(1) I wrote a book titled The Impeached President, that was quoted by such luminaries as Michael Isikoff of Newsweek in his book Uncovering Clinton. I revealed what really happened with Whitewater, the Rose Law Firm, Madison Guaranty and Hillary Clinton’s remarkable ability to make 10,000% profits in cattle futures (with the help of the state´s biggest corporation, Tyson Foods). I exposed Monica Lewinsky, predicted Clinton would be impeached; and
(2) I launched a new financial newsletter, The Wall Street Underground, to reveal the crimes and financial misdeeds of Bill and Hillary Clinton and their cronies on Wall Street. My goal was to show the little guy how he could get ahead and make money. Even while the whole system was stacked against him.
We broke stories the big boys desperately did NOT want told. We explained to ordinary investors how Wall Street really works.
We exposed the dot.com scam. That’s where Wall Street tricked ordinary people into putting their retirement nest eggs in worthless dot.com stocks. Stocks Wall Street insiders knew had no profits and could soon go broke.
We named names. Years before federal prosecutors charged them, we predicted just which CEOs and Wall Street brokers would go to prison.
And we did more than that. We showed small investors how to get even. How they could use the same insider trading techniques to potentially make fortunes as gold soared… the U.S. dollar plummeted… and “name brand” stocks wiped out.
Not surprisingly, we were investigated by government regulators almost from the moment we started.
Almost like clockwork, the bureaucrats tried to shut us down. People who did business with us were given secret federal subpoenas. They were ordered to produce boxes of documents, private telephone and bank records, the whole nine yards.
Our computers were seized, our business records scrutinized. Our vendors were threatened if they kept doing business with us. They were warned not to even tell us what the government was up to.
But each time, our lawyers successfully defended our right to publish. For two simple reasons. We were publishers, fully protected (we naively believed) by the First Amendment. And we always followed the letter of the law.
We quickly hired the best attorney in the business: the man who in 1985 won the landmark Supreme Court decision against the government, called the Lowe Decision. (Lowe vs. SEC, 1985.)
Lowe affirmed the right of financial publishers, like us, to give our opinions about the market and specific trade recommendations — without censorship from the government.
With one caveat. We could only give impersonal financial advice. We couldn’t give recommendations to individuals based on their specific situation. That would make us a broker.
My publisher was so concerned, that every issue of our publication, every advertisement, every posting on the website ran through our legal team. He wanted to make sure we obeyed the letter of the law.
The lawyers assured us over and over again that we were lily-white clean. We put in legal disclaimers… revealed my “criminal” past… told subscribers to never trade with more than you can afford to lose and never with more than 10% of your liquid net assets.
Most important of all: We NEVER touched anyone’s money, never gave personal advice. Time and again our lawyers affirmed our rights to publish. Both to the regulators and to our publisher.
WSU was a great success. It was my life’s work. I loved every word of every issue. The regulators constantly tried to deny us our right to publish. But our attorneys always quickly backed them down. Simply by proving that we complied with the law.
Still, as we took on Wall Street, the harassment got worse. We reported major scandal after scandal. With 150,000 subscribers, we became the largest financial newsletter in the business.
Our trade recommendations could swing markets. They were picked up and disseminated by lots of wannabes. And we had a fair share of trading successes. Many subscribers wrote to tell us of the huge profits they made.
The bigger we got — the more successful our trading recos — the more Wall Street and the regulators attacked.
In 1998, we were the first financial newsletter to publish on the Internet. We were the first premium publication on the web. That let us deliver massive amounts of info to subscribers, nearly instantly.
It was so new, many people didn’t have computers or high-speed Internet connections. So we offered an Internet-ready computer to all subscribers as a free bonus. We also arranged a high-speed data line, free of charge.
Another disaster. The company that provided the computers scammed us. They weren’t able to connect to the Internet. Of course they refused to honor their guarantee. So we bought a second computer for subscribers who received faulty computers. That was the price of innovating.
Despite all this, we kept growing. Wall Street did not like it. They felt THEY were the only ones who should give trading recommendations.
They especially thought only they should make real money. They did not like anyone revealing their schemes. They hated it that we were telling people to sell stocks, not buy. And they hated it even more when they saw small investors making enormous profits off of their secret scams.
Our website hosting company was threatened. Under pressure, they demanded we move our website. We tried to find out what was going on. They wouldn’t tell us. That’s when we learned that we had to have multiple secure servers, in diverse locations. We were making quite a stink in the markets. Our enemies wanted us silenced.
Too much was at stake. We had to be stopped. The kid gloves came off.
Up until this time, the government had failed in all its legal actions against us. But when I began revealing the derivative scheme — Wall Street’s biggest, most profitable scam ever — all that changed.
It was them or me. The smear campaign and dirty tricks started in earnest. You know, the Federal government is the biggest debtor of all. They need Wall Street to keep financing their deficits. You can imagine what happened.
In 2003, the Commodities Futures Trading Commission (CFTC) — the federal government agency that regulates the futures industry — took advantage of the post-9/11 paranoia and the draconian Big Brother police powers that came in its wake.
The Feds came down on us like a ton of bricks.
CFTC regulators insisted we were not publishers, like other financial newsletters or the Wall Street Journal. We were NOT protected by the First Amendment. No, the CFTC said, other financial newsletters and newspapers were exempt from its broker regulations…but we were not.
According to the CFTC, we were unregistered “commodity trade advisors” — even though we followed all the CFTC’s regulations for what they called “exempt” publishers…never touched a penny of subscribers’ investment money… and never, ever, EVER gave personalized advice.
In other words, the CFTC claimed we were subject to the same rules as futures brokers and, thus, under the CFTC’s jurisdiction.
What’s more, the CFTC said the famous Lowe decision — which did not allow government to censor or regulate financial publications — didn’t apply to them.
Our lawyers consider this the most outrageous assault on the First Amendment they’ve ever seen. They are certain it will be overturned some day by the U.S. Supreme Court. Just a few millions dollars in attorneys fees…five or ten years of litigation…and the whole matter will be cleared up, my attorneys said.
There is just one problem. None of us has that much time.
CFTC agents raided our contractor’s office in Kansas. Computers were impounded. Our bank accounts were frozen. They threatened and intimidated employees of our independent contractors, who did printing and customer service. It got ugly.
Roderick, the organizational genius behind us becoming an international publication, sold out and bailed out. He paid a fifty thousand dollar fine, took his millions in profits, and retired.
Then the Feds detonated a nuclear bomb on us. They got a lone judge to issue what’s called a Mareva injunction against us. Normally they reserve this solely for drug cartels and terrorists.
Without a trial or even an independent investigation, this allowed the Feds to freeze all our assets anywhere in the world — and actually prohibit us from publishing altogether! Yes, I was prohibited by court order from writing. Under threat of prison I could not publish one single word.
It’s hell when your life’s dream becomes a nightmare
One day we were exposing Wall Street scams, showing subscribers how to make fortunes. The next we were ordered to cease publication altogether, or face a contempt of court citation and jail.
I could not publish or speak to my closest friends about futures, the markets or the economy. It was the most outrageous gag order ever issued. So much for the First Amendment!
There was no finding of wrongdoing. No trial. No independent investigation.
Instead, the CFTC met secretly with the judge. We were not even there: they made their wild accusations “in camera,” that is, in private. With no defense from us, the judge accepted the charges at face value.
Our bank accounts were seized. Every single account of ours was frozen. All credit card corporate accounts shut down.
They cut off funds we needed to pay the attorneys. No money, no defense. An attorney told me, “my clients are 100% innocent until proven broke.” Well, we were definitely proven broke, up the creek without a paddle.
The Feds threatened radio stations that carried our weekly show “Radio Free Wall Street.” Though we had a huge, growing following, the stations had no choice. We were cancelled.
They put pressures on our printers. Our service companies. Our fulfilment houses and Internet hosting servers. All were warned to stop working with us. Everyone that had anything to do with us was threatened and scared. Many did and said whatever they needed, to protect themselves.
I can’t blame them. They had families and mouths to feed. It was sad to watch business relationships established for decades come to an abrupt halt. Many had promised us that “we are with you all the way no matter what.” When the shit hit the fan they ran for cover.
We were unable to pay our bills, prohibited from publishing. The end!
I was devastated. Up to that time, I had faith in our legal system. I guess you could say I am now over my naïve stage. I hope you get over yours real soon, and it does not cost you as much as it cost me.
Imagine waking up one day and all your accounts are frozen. Your credit and debit cards are turned off. Your business is closed. You are prohibited from publishing or talking about the markets in any way, shape or form. Your publisher cannot even cash a check, never mind write one.
All this is done in secret. You are not guilty of any crime. But you are unable to meet your accusers or rebut their allegations. (We never even made it to court.) By freezing everyone’s bank accounts, shutting down your business, the Feds make sure you cannot pay your attorneys. Bank accounts you have for years are closed. Nobody will open a new one for you.
Almost overnight, we went from being the biggest financial newsletter in the world, to zero. Nothing.
I was humiliated and destroyed. I lost most everyone and everything. Even my wife left me!
The Government confiscated millions of dollars. Former friends, partners and associates put as much distance as they could between us. Everyone associated with us was scared to death. I was guilty…of telling the truth.
The bureaucrats under Wall Street’s thumb were interested in one thing and one thing only. By hook or by crook, they wanted me silenced. They said they would drop all action if I agreed to stop writing and publishing.
I flat out refused! I could no more stop writing, analysing and commenting on the markets and the economy than Einstein could stop doing math.
I was sure that sooner or later the gag order would be lifted. I was not about to give up my constitutional rights to publish, in the interests of expediency and money.
How We Survived
It was a nightmare. But we lived on. For awhile, friends helped us pay legal bills and survive. But the millions they gave us were not enough.
For years I had preached the need to have diversified accounts. I urged you to keep greenbacks stuffed in your mattress. To have hidden hoards of gold and gold coins.
Without all that, I would not have been able to survive these past four years.
I am partly to blame for all this. After two attempts on my life…after serving 18 months in prison as a result of bogus charges brought by the Clinton Administration.. ..after having made enemies of the most powerful men in the U.S. government and Wall Street…I naturally led a very James Bond existence outside the U.S. No one knew where I lived.
Everything I did required secrecy. This doesn’t always make for a smooth business operation. We called ourselves the Wall Street Underground. That is precisely what we were.
The good news is that the injunction was finally lifted. Case closed.
WSU was put out of business by then. I faced huge fines. I look at it this way. The cost for me to talk to you again is over $10 million. It’s well worth it if I can show you how to save your life savings from the biggest wipeout ever — and just maybe show you how to make millions in the process.
Listen: I realize I’m no angel. I started out my professional life as a commodities trader. We’re not choir boys. Commodity traders buy and sell billions on a daily basis. I’ve made mistakes in my life.
But let me tell you: Precisely because of the circles I move in… the contacts I have… the billion-dollar deals I’ve seen… I know how the financial world really works from the INSIDE.
I know how crooked they are. I told you for years that the markets are rigged, and that we know how they are rigged. Millions of former homeowners are learning (at great cost) how right I was.
That’s why I’m the only person alive who can show you how to turn the tables on the Wall Street bastards — and is willing to do so. Before they reduce you to mere land surfs, as Warren Buffet put it.
And that is why I’ve decided to risk my life once again and come out of hiding. My case with the CFTC is now closed. I am now “allowed” to publish again, if I do not make any futures or futures-option related recommendations.
Which is fine for you and me. These days, the futures markets have been supplanted by other, even better ways to trade. You get fantastic leverage — so you can make tons of money — with tiny, completely limited risk.
Sub-prime wipeout is just the
start of the real crisis
My friends, everything I was predicting four years ago is now coming to pass. We’re on the verge of financial Armageddon.
What you’ve heard about the present financial crisis is just the tiny tip of the iceberg. It is far, far worse than merely a sub-prime mortgage crisis.
Every financial institution in the country is at risk. Many are already technically broke. Derivatives have wiped them out. That is why they are desperately letting foreign investors give them billions of dollars. It’s the only way they can shore up their capital.
Our biggest financial institutions — that hold the IOU’s of damn near everyone in America — are quietly being taken over by the Chinese Communist government and the Arab oil cartels. Do you really think they have any other ideas in mind than making Americans their economic slaves, modern-day share croppers?
Again I remind you of Warren Buffet’s warning: Americans are becoming land surfs.
They have a plan. If you have any savings or investments, you are vulnerable. Their plan is to take your money, and make it their money. To take your assets and make them their assets. To take their losses, and make them your losses. To take your life savings, and in its place put worthless derivatives.
Make no mistake: the collapse of the U.S. mortgage industry and housing market is just the start. The entire global banking system sits on the same derivatives house of cards. It is about to topple over.
HUNDREDS OF TRILLIONS of dollars will be wiped out. It’s going to be the Great Depression, “tech wreck” and Enron fiasco all rolled up into one — times TEN!
I know you have seen the stories about the billions of dollars in losses the biggest financial institutions have recently taken. I know you have seen the bailouts… the Fed’s panicked rate cuts…the meltdown in the stock and housing markets. This is just the leading edge of a tsunami wipeout.
The U.S. dollar is not plummeting to new lows by accident. Insiders in Beijing, Berlin and London are bailing out of U.S. dollars. They are taking hundreds of billions of dollars, that are at risk from derivatives, out of the U.S. financial system.
They are drooling at the opportunity to buy America’s assets at 10 cents on the dollar. In fact, they have already started. They are quietly taking over our biggest banks and brokerage firms. All at fire sale prices.
The big-money people know what’s coming. They’re getting out of derivatives and derivatives-backed assets.
As usual, the little guy will get stuck with the bill. The average American investor is going to be the big loser.
As we speak, Wall Street bankers are handing off these worthless derivatives to you. They are stuffing them in your money market accounts. Your retirement accounts. Your brokerage account and your bank.
The billionaires will make more billions. Why do you think Warren Buffett has been selling U.S. dollars for years?
The typical American worker will see his life savings wiped out. He will lose his home, his new car, his job, his retirement accounts and everything he has worked for.