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Throw Them All Out 

16 November 2011 

Do you know America's top politicians exit their office with millions more than credible based on their salaries and perhaps some patient investing? Do you know how they achieve that? Nobody has directly and fully answered that question until Throw Them All Out was published.


The book, freshly published on November 15, 2011, was written by Peter Schweizer, a research fellow at the Hoover Institution, Stanford University, and a consultant to the White House Office of Presidential Speechwriting between 2008 to 2009.


In the light of Schweizer's investigation, one of the biggest scandals in American politics is waiting to explode:


The full story of the inside game in Washington shows how the permanent political class enriches itself at the expense of the rest of us.


Insider trading is illegal on Wall Street, yet it is routine among members of Congress. Normal individuals cannot get in on IPOs at the asking price, but politicians do so all the time. The Obama administration has been able to funnel hundreds of millions of dollars to its supporters, ensuring yet more campaign donations. An entire class of investors now makes all of its profits based on influence and access in Washington.


Peter Schweizer has doggedly researched through mountains of financial records, tracking complicated deals and stock trades back to the timing of briefings, votes on bills, and every other point of leverage for politicians in Washington. The result is a manifesto for revolution:


America's Permanent Political Class must go!


More details at

Citizen John (

When I go to the election booth, I don't see the option, "None of the above," below the candidate names.


The `Permanent Political Class' makes rules for itself. Members with no time to meet small business constituents do not spare any trouble to legally enrich themselves through earmarks, real estate deals, securities violations, trading on inside information, self-dealing with stimulus funds and literally every budget item.


DC is a profit center for them and all those that support them in various capacities, as they use government to enforce sophisticated pay-to-play and don't-make-no-waves rules. There is little incentive for them to leave Washington, which is one reason they became the permanent political class.


Schweizer cites popular officials that play the IPO (Initial Public Offering) game. For example, he shows how Nancy Pelosi, the 60th Speaker of the United States House of Representatives with an estimated net worth of $58 million, bought 5,000 shares of V (Visa) at the privileged IPO price $44. This trade showed a profit immediately and the shares went up to about $88 in a matter of days. However, Pelosi worked on major legislation that if it had not been killed in the body she led, would have had a strong negative affect on the price right at that time. The rest of us can't do it because we're subject to strict conflict of interest rules, unlike lawmakers. Plus, we're not invited to participate in IPOs until after the price is run up.


According to US law, if you're an elected official and you sit on an important committee, you are allowed to trade on the information that comes to you or even results from your committee-related decisions. It stands to reason that if you're on the banking committee, you probably trade bank stocks, playing it both long and short. If you're a staffer, you may accumulate sensitive information and sell it to hedge funds. A lot of careerists trade on non-public information.


This book is a manual on ways to give money legally to elected officials. One big story is how Congressman Spensor Bachus used a private meeting with Fed Chair Bernanke and Treasury Secretary Paulson. Bachus was in the role of Ranking Member on the House Financial Services Committee. He used the dire information presented to him in this meeting to bet heavily that the market would go down, using option trades. Bachus, working with Bernanke and Paulson from July 2008 to November 2008, scalped $50K out of the falling market. The book has lots of war stories like that.


While Throw Them All Out is our wake up call, it is also a potential training guide for future politicians. After all, Congress is unlikely to change the substance of rules that allow them to make a killing year on year. We should not aspire to do what they do. This would land the rest of us in prison and earn their contempt for us.


Hassan Z. Brockovich Sr.:

According to author's earth-crushing investigation, the permanent political class is in power in Washington, D.C., because average Americans are all just lazy, stupid and unmotivated, while the political class is savvy, aggressive and very ambitious. I could not agree more; after all, how can you explain that the political class keeps lying to the average voter...yet the average voter keeps sending them back every election cycle to Washington, D.C., to screw them over some more?!?!?

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