aside Will The Real Hillary Clinton Please Stand UP? Part IX (1979 Commodity Trading Scandal)

clinton-early-yrs-hillary_pic_1For a review of the past few blogs: Hillary Rodham Clinton came of age in the 1970s when the feminist movement was at its peak. She was the only female student in her 1973 Yale Law School graduating class. One of her earlier jobs was as a staffer in the U.S. House Judiciary Committee involved in investigating Watergate in 1974. Then in 1975 Hillary Clinton moved to Arkansas to be close to her boyfriend, Bill Clinton. And this is where she was one of two female faculty members of the University of Arkansas. It was around this time that she started the University’s first free legal aid group.

It is important for Millennials to understand that a trailblazer like Hillary Clinton would have faced resistance from men who were uncomfortable with women who were breaking down barriers in male dominated professions.

Three major republican trumped up scandals regarding Hillary Clinton date back to her early adult years of 1974-1975. ALL HAVE BEEN THOROUGHLY DEBUNKED BY CREDIBLE NEWS OUTLETS AND AS DETAILED IN MY PRIOR BLOGS. Hillary Rodham Clinton was not fired from her Watergate staffer position in 1974; she did not deliberately write a misleading Watergate legal brief while hiding pertinent documents in 1974; and she did not volunteer to handle a rape case in 1975 where the perpetrator got off while she laughed about it.

clinton-great-photo-bc-hrc-merlin_34321-3077The Fall of 1975 is when Bill and Hillary Rodham Clinton were married; and in 1976 she joined the prestigious Little Rock Rose Law Firm where she became the first female partner while Bill Clinton became the attorney general of Arkansas.

And then 1978 marks the year, when the then Attorney General Bill Clinton became the governor of Arkansas and when the White Water saga began. As per the Washington Post White Water scandal time line in 1978, “Arkansas Attorney General Bill Clinton and Hillary Clinton join with James B. and Susan McDougal to borrow $203,000 to buy 220 acres of land in Arkansas’ Ozark Mountains. They soon form the Whitewater Development Corp., intending to build vacation homes.”

House on Midland ST. Little Rock:When They Were There: 1980-82 What They Paid For It: $112,000 What Was Going On in Their Lives: Mrs. Clinton partly used the proceeds from her investments and her savings to put a $60,000 down payment on the home, in the city’s Hillcrest district, purchased in the dark days after Mr. Clinton lost his re-election bid for governor. She built wooden bookshelves in a sunny office (which locals joke was the first Clinton Library) and converted the attic into a room for Chelsea, who celebrated her first birthday and learned to walk there.
House on Midland ST. Little Rock:When They Were There: 1980-82
What They Paid:  $112,000
What Was Going On in Their Lives: Mrs. Clinton partly used the proceeds from her investments and her savings to put a $60,000 down payment on the home, in the city’s Hillcrest district, purchased in the dark days after Mr. Clinton lost his re-election bid for governor. She built wooden bookshelves in a sunny office (which locals joke was the first Clinton Library) and converted the attic into a room for Chelsea, who celebrated her first birthday and learned to walk there.

In the meantime and before the White Water scandal took hold, there occurred another incident which would be fodder for future inquiries. Opponents and the press would eventually be questioning how the Arkansas couple, Mr. and Mrs. Clinton were able to afford the home they purchased in Little Rock, based on their combined incomes. The speculation and innuendo ended when Hillary Clinton proved that around 1978- 1979, she successfully invested in cattle futures which allowed her to purchase their home after he lost the governorship election in 1980. He ran again in 1982 and won.

Then she was investigated by opponents and the press as to how she earned huge profits in the commodities market and if she used her own funds to invest.

Arkansas Governor's Mansion
Arkansas Governor’s Mansion

Claire McCabe addresses this issue in her 3/13/15 Quora article, “What is the real story behind the Hillary Rodham Clinton cattle futures controversy? She references sources as 1994 Seattle Times; By Angie Cannon, Frank Greve Knight-Ridder Newspapers: AP: Washington Post: Los Angeles Times: Newsday.

Question: She turned $1,000 into $100,000 over 10 months never having traded futures before and never to do so after. Was she assigned winning trades or was this legitimate profitably aggressive trading?

” The disclosure that Hillary Rodham Clinton parlayed $1,000 into nearly $100,000 through highly speculative commodities trading may create political embarrassment for the Clintons. But the information released by the White House covering investments in 1978 and 1979 also appears to support the couple’s contention that they had done nothing illegal or unethical in the trades.”

clinton-good-young-photo-hillfirst“Mrs. Clinton, whose commodity trading came during the early years of her husband’s political career and before Ronald Reagan was elected president, was guided through the risky trades by James Blair, a friend and top lawyer for one of Arkansas’ most powerful companies, Tyson Foods Inc. She also “talked to other people” and read the Wall Street Journal to research her trades, a White House official said.”

“Commodities trading, which involves anticipating the future value of a commodity, is done on margin – meaning that it takes only a small amount of money to control a large contract. Mrs. Clinton made dramatic gains by investing in live cattle futures, which are contracts linked to an anticipated future value of 40,000 pounds of slaughter-ready beef cattle.”
“Commodity trading is generally thought to be extremely risky, because if the market goes down, an investor can be liable to come up with the full amount. But a skilled trader, or one with special knowledge of a market, can reap millions of dollars.”

MINOLTA DIGITAL CAMERA of Clinton's Washington DC home
MINOLTA DIGITAL / of Clinton’s Washington DC home

There were other people who made the money she did,” said Levitt, but they were lucky, and their timing was perfect. As a new player, he added, “she had to have one heck of a good advisor or one very good broker.”

“Chuck Levitt, senior livestock analyst at Alaron Trading Corp. in Chicago (said). “It just so happened that she caught the biggest cattle market boom in history and at just the right time.”

“Herds had shrunk for four years and inflation was soaring in 1978-1979, said Levitt. Prices on virtually all commodities were “in a very strong upward trend.” The White House released the information in part to rebut allegations that Mrs. Clinton did not put up any of the money herself.” (Newsweek backed off this story.) “Her spokeswoman, Lisa Caputo and John Podesta said Mrs. Clinton “put up her own money, invested in her own accounts and assumed the full risk of loss.”

“Mrs. Clinton initially invested $1,000 in cash on 10/1/1978. in an account in Springdale, Arkansas, office of the Ray E. Friedman & Co. commodities brokerage of Chicago. By Oct. 12, she made $5,300 and reinvested the $6,300 in several transactions. In a series of trades through the rest of 1978, she accumulated profits of $49,069, offset by losses of $22,548. Her net gain at $26,521 in 1978. In 1979, Mrs. Clinton continued trading in this account with profits of about $109,600, offset by losses of about $36,600. Her net gain for 1979 was $72,996.”

8 comments

  1. Reblogged this on It Is What It Is and commented:
    For the feminist out there …. dear ladies!!
    “Hillary Rodham Clinton came of age in the 1970’s when the feminist movement was at its peak.”
    …. remember this November!!

    • Dear Horty, It is now only a month away from D-Day. I am definitely watching tonight’s debate. Thanks a million times over for your support and for this reblog. Hugs, Gronda

        • Dear Horty, I hope you are having a grand time with Angelika in your travels. There is a definite family likeness between the two of you. It looks like DT is planning to bring up Bill Clinton’s indiscretions tonight. I can’t wait for HRC to punch back where it hurts. Hugs, Gronda

  2. Gronda, thanks for doing these pieces. Unfortunately, the carefully crafted caricature of HRC is engrained in too many minds. That is her biggest opponent. In case Trump does drop out, people need to focus on her many positives and the platform which recognizes climate change, environmental and social justice issues. Plus, her economic plan is rated much more favorably than Trump’s by multiple economic firms and organizations. Keith

    • Dear Keith, I don’t believe for a second that DT is stepping down. You are right that HRC’s negative caricature however unfair is something she has to deal with now and in the future. Those who hate her will vote for DT.

      Ciao, Gronda

      • Gronda, I agree he won’t step down as his ego would not permit it. I was pleased to see a number of professional athletes who said about Trump please don’t refer to your comments as locker room talk, as none of them have heard that kind of talk in a locked room. Although the producer of a The Apprentice has threatened law suit if any one releases outtake comments by Trump, apparently there is worse commentary made by him.

        To me the biggest lie of the last few days is Trump saying this does not represent who is. Based on what I have read, it is précisely who he is.
        Keith

        • Dear Keith,

          He will rue the day when he told Anderson Cooper, after multiple questions, that he never acted in a way as he described his behavior in the 2005 tapes. Frankly, this is one time that I do believe every word he said. Now, we wait and see what happens as women come forward to challenge those words.

          Ciao, Gronda

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