A Federal Affaire

A Federal Affaire

a novel of love

death and

the Federal Reserve

by Victor Sperandeo & Alvaro Almeida
Two Volumes— Preface plus 1,572 pages— Hardbound
Library of Congress Catalog Card Number: 99-93805
ISBN: 0-9671759-0-9

A baneful Chairman of the Federal Reserve’s Board of Governors, a beautiful woman uniquely capable of playing on his vices, and a brilliant Wall-Street trader with a plan to crash the markets by using inside information from the central bank touch off an explosive mixture of ambition, revenge, and idealism— sending shock waves across America’s economic and political landscape.

Why You Want to Read This Book

CRA$HMAKER is more than an exciting story about an engineered crash of the Federal Reserve System and the markets that could actually happen. It also offers a stimulating education in the philosophy and practice of limited, constitutional government, and in the free-market economics of money and banking.

You may love what you read in CRA$HMAKER— or hate it— but when you are finished you will understand contemporary American government, and the forces behind it, as never before. And you will know why America is no longer “the land of the free”, who is responsible, and what needs to be done before Americans forfeit forever the “Blessings of Liberty” that the Founding Fathers bequeathed to them in the Constitution of 1787.

“Byzantine” comes first to mind when I try to describe the plot of Cra$hmaker, but how else could one recount an intricate tale of monetary machinations? The plot is superbly drawn, like spider webs laid on spider webs, subtle and compelling. Most astonishing is the authors’ grasp of monetary mechanics, a weapon in the hands of the evil peculiar to our age: minds that thirst only for power. What a rare book! Cra$hmaker delights, entertains, and instructs. Franklin Sanders— The Moneychanger Newsletter and gold and silver money trading company—

About the Authors

VICTOR SPERANDEO has been dubbed “Trader Vic” and “the ultimate Wall Street pro” by Barron’s. He has written about his highly successful trading strategies in Trader Vic— Methods of a Wall Street Master (John Wiley & Sons, Inc., 1991) (with T. Sullivan Brown) and in Trader Vic II— Principles of Professional Speculation (John Wiley & Sons, Inc., 1994).

In CRA$HMAKER, Victor Sperandeo draws from his years of experience on Wall Street a brilliant trading strategy that uses the Federal Reserve itself to bring down not only the markets, but also the political Establishment.

Although so far only fiction, his strategy could become fact sooner than anyone thinks, if only the right circumstances developed.

ALVARO ALMEIDA is the nom de plume of an attorney who has won several landmark cases in the Supreme Court of the United States. He has also written numerous monographs and journal articles.

Fortunately for readers of CRA$HMAKER, his four degrees from Harvard did not disable him from delving into the depths of American constitutional law and history, and unearthing the truth about the Federal Reserve System.

Only authors with their backgrounds and imaginations could have set this story to paper— and it took them more than five years to do it.

Move over Atlas Shrugged, CRA$HMAKER is here! This magnificent work should be tackled at once over a long weekend so that you may relish its wonderful discourses on economics, politics and religion interwoven with an intriguing plot. But this book is more than an exciting read. While fictional, it offers every thinking American the BEST analysis of the most profound social question of our time: will freedom or slavery be our future? Liberty lovers will find the theme of CRA$HMAKER one to be seriously considered. Lowell H. Becraft, Esq., Attorney for The Wallace Institute


With creation of the Federal Reserve System in 1913, and destruction of the constitutional monetary system based on silver and gold in the 1930s, Congress surrendered tremendous discretionary power over America’s economy to a few men and women in the highest echelons of the nation’s central bank:

  • Power that America’s Founding Fathers withheld even from the government, because they understood — and feared — its potential for abuse.

  • Power that an egotistical, dynamic, and designing Chairman of the Federal Reserve’s Board of Governors might concentrate in his own hands.

  • Power that such an unscrupulous man might misuse for base and even malicious personal reasons.

  • Power that others might find a way secretly to manipulate, so as to transform the Federal Reserve from a mechanism for “fine tuning” the economy into a guided missile for mass destruction.

In CRA$HMAKER, what America’s greatest statesmen tried to prevent finally comes to pass. With a vengeance.

A flight of fantasy? Hardly. As the epigraph to CRA$HMAKER emphasizes:

Se non è vero è ben trovato.
If it isn’t true, it’s well founded.

The story tells why:

Disgusted with the scandal-ridden, corrupt Administration of Ashley Ranscum, the majority of Americans has boycotted the voting booths, leaving a smaller-than-ever minority to elect Robert Cosgrove to the Presidency.

Once again, however, apparently nothing has changed except the officeholders’ faces and political labels. Cosgrove’s Administration seems to be simply another amoral regime adept at selling the government’s favors to special-interest groups in exchange for campaign contributions and other forms of political support.

Although disenchanted and demoralized, common Americans are not deceived. They realize that their country suffers from a deep-seated political and moral sickness. And many fear that this disease will soon produce the most dreaded symptom of all: economic hard times.

Distrustful of sly, sleazy politicians, and disgusted with overbearing, intrusive bureaucrats, Americans are starving for new ideas— searching for decent, honest, patriotic leadership— yearning for freedom— whether they know it or not, hoping for a return to the principles the Founding Fathers embodied in the Constitution. Nevertheless, psychological inertia prevents a majority from embracing radical reform without the prod of some economic or political crisis.

At this point appears an unknown, unlikely hero: Dominic Ancona. Through honesty, integrity, and hard work, Dominic has risen from the rough neighborhoods of Brooklyn to become a successful Wall-Street trader. A self-made man, he trusts in individual freedom, the market economy, and the gold standard. He has yet to find, however, what he will treasure beyond gold: the love of his life.

His antagonist, Crolian Allen Stillwell, is Chairman of the Board of Governors of the Federal Reserve System. While he amassed a fortune in the private sector, Stillwell championed the free market and the gold standard. Now, concerned only with perpetuating and expanding his personal power, he supports the Federal Reserve and opposes any reform that might lessen the banking cartel’s authority. Expressing his lust for power in the most personal way, Stillwell is an inveterate predator of beautiful women.

Dominic’s fateful struggle with Stillwell begins by chance, when the Chairman engineers an unexpected change in the Federal Reserve’s policy, imposing a million-dollar loss on the Wall-Street trader in the stock and futures markets. Angered by the blatantly political nature of Stillwell’s move, Dominic realizes that America will never be safe from manipulations of her economy until the power-hungry Chairman is driven from office, and the Federal Reserve replaced with a constitutional monetary system based on the precious metals.

Shortly thereafter, at a speech in which he attacks the Federal Reserve, Dominic meets Lara Bernot, a physically stunning, intellectually scintillating research economist and political scientist. To Dominic’s delight, she is a proponent of the free market— and despises Stillwell, too. Exactly why, though, she does not divulge— until, much later, her past puts all their lives on the line.

Dominic and Lara devise a “sting” to trick Stillwell into destroying the central bank. Relying on her secret knowledge of the Chairman’s past, Lara proposes to lure him into attempting to seduce her. Once she has established a close— but false— personal relationship with him, Lara will maneuver Stillwell into making a sudden shift in the Federal Reserve’s policy— a change the markets do not expect, but Dominic does. By setting up a huge trade based on this information, Dominic will crash the markets and garner an immense profit.

Dominic and Lara hope that, by discrediting the Federal Reserve, the crash will create the conditions necessary for Americans to support a thoroughgoing transformation of the relationship between government and the economy. So they also plan to plow Dominic’s profits from the crash into a major political effort in the next election, in order to pack Congress with people who will push through disestablishment of the Federal Reserve, institution of a constitutional monetary standard, abolition of individual income taxes, and other radical economic reforms.

That was their plan. But even they could not foresee how it would turn out ...

For they were not the only actors on the stage. Meet just a few of the others with whom Dominic, Lara, and Stillwell must deal:

  • Don Carlo Canona— the Sicilian mafioso who wants a shot at insider trading through the Federal Reserve. He has his own ideas about true justice, and how best to execute it. Why is Dominic even more concerned about Don Carlo than he is about Stillwell?

  • Julian Maxfield— the CEO of a global agribusiness who seeks power and pleasure in almost equal proportion. He aims to grab the top spot in the New World Order, even if he has to sacrifice the Federal Reserve System to get it. Can he reach his destination by going through Russia?

  • President Robert Cosgrove— who, all his political life, has doggedly served the Establishment. Now, as Commander in Chief, the Vietnam veteran has to rethink where his true loyalties lie. Will he risk assassination for the wrong choice?

  • Elisabeth Trilling— the ravishing, hotblooded redhead who wants to be more than Stillwell’s mistress. She fears that he has set a course for self-destruction. Can she turn him from it?

  • Frazier “Bat Masterson— the CIA operative who coordinates an economic sneak attack against Russia. Although Masterson and Stillwell are working together, can the Chairman depend upon a spymaster who may be even more amoral and duplicitous than he is?

  • General Aleksandr Volianov— the charismatic Russian military hero whom the Communists want dead, and average Russians hope will take control of their country. Will he support a gold standard, or side with the New World Order?

  • Élèna Dohnal— once an economic advisor to the Central Committee of the Czechoslovakian Communist Party. Why does Stillwell desperately want to forget her, but will risk his life remembering?

  • Theodore Wexler— Stillwell’s ambitious administrative assistant. To advance his career, he needs to cultivate his boss; but he hates Stillwell’s wife even more than she despises him. Can he find a way to kill two birds with one stone?

    The Many Faces of CRA$HMAKER

    CRA$HMAKER is not just a story about the weaknesses — economic, political, even philosophical— of the Federal Reserve System that could turn out to be all too prophetic. It is also an old-fashioned thriller. Here is an excerpt from the chapter entitled

    Explanations Later

    “You conniving little whore!” Zemenek growled at her through clenched teeth, seeing his predicament. “I saved you from getting yours from Grymski at one end; but Ill pump it into you at the other!” he yelled, waving the muzzle of the CZ 75 back and forth in the general direction of her forehead, as he moved towards her intimidatingly.

    “You dare not murder either of us, Pavel,” Lara retorted, emboldened by observing that he had reflexively engaged the safety on the pistol and removed his finger from the trigger guard, and now held the weapon almost horizontally in one hand, not vertically in two— a stance out of character for a practiced gunman who intended to hit his target. “Tomic needs both of them alive,” she mimicked his intonations in perfect Czech, to Zemenek’s amazement. “Do Dominic and I both know where it is? Or does only one of us know? And which one? No, you cannot kill us, Pavel. And you cannot turn us over to Tomic, either, to denounce you. That leaves only one alternative. And you know what it is. You had better think very, very carefully. And quickly. Your time is running out,” she added slowly, word by word, for effect.

    And yours as well, you witch,” Zemenek spat back in frustration, switching in his mounting confusion from one language to another. “You know what Tomic will do to get the truth out of you.”

    “Not necessarily, Pavel. We can offer him twenty million for our lives,” Lara observed dryly. “What can you offer for yours?

    He would never take it!” Zemenek spit back.

    “Are you so sure?” she twisted the knife of doubt once more in his already knotted stomach. “But you are sure of what you want to do. A bird in the hand, Pavel. Twenty million dollars and a little bird in the hand,” she lured him further into a fog of conflicting emotions. Perplexed, Zemenek slowly lowered the pistol to his side, wondering what to do, to say, even to think, next.

    The three stood a few feet apart, statues bathed in the cold light, still but for their frosty breaths, mute— Zemenek, trying to tie up the loose ends of his confusion; Dominic, suddenly realizing Lara had understood everything that had transpired that night; and Lara, spinning more threads for the web she was weaving around Zemenek.

    Nodding in Dominic’s direction, Lara broke the silence. “He will tell you about the money, Pavel.”

    Zemenek turned his head towards Dominic, taking his eyes off Lara. “Well? Tell me.”

    “Ah,” Dominic began, not knowing what Lara wanted him to say, “well, it’s ... ah ... just as she said. On Monday, we can get ...” He stopped and looked over at Lara.

    Zemenek looked, too— to see her two hands aiming the cavernous muzzle of a small pistol directly between his eyes, while the front sight of his weapon pointed uselessly at the ground.

    “Drop it,” she ordered.

    “Where ... where did you get that?” Zemenek asked.

    Drop it,” she ordered again, leaning towards him, the muzzle of her pistol mutely seconding her command.

    “That’s not real,” he tried to dismiss her threat with a nervous laugh.

    “Try it.”

    Zemenek’s eyes gauged the space between the two duelists. “You can’t hit me with that popgun at this distance,” he scoffed, hoping he was right, but suspecting a woman who had carried a Colt Combat Commander with a Bar-Sto barrel could prove him wrong.

    “Try me.”

    “I’ll get off a couple of shots before I go down,” he warned her.

    “With hardball in your head?”

    Staring into the black barrel of Lara’s pistol, the CZ 75 shaking in his hand as he wavered between surrender and a desperate shoot-out, Zemenek did not notice Dominic inching closer and closer to him across the frozen ground.

    “Last chance,” Lara announced. “Drop it or die.”

    Besides keeping its readers’ attention, CRA$HMAKER also enlightens and educates. Here is an excerpt from a speech Dominic gives to an audience at a university in the chapter entitled

    A Hidden Agenda

    “...The Fed’s real purpose— its hidden agenda— is to facilitate government spending through inflation. To avoid imposing politically intolerable levels of taxation to pay for the spending that returns them to office election after election, politicians rely on the Fed to confiscate wealth from the public through inflation. Inflation’s a hidden tax, and lessens the cost of borrowing by enabling the government to pay its debts in depreciated currency.”

    After a sip of water, Dominic continued. “For the system to work, however, implementation of its inflationary policy must be unpredictable— and therefore surreptitious and deceitful. Thus, the Fed’s an economic stealth bomber.” The audience laughed. “That may appear to be an extreme metaphor,” Dominic responded to the reaction. “Nevertheless, it’s accepted wisdom on Wall Street. Why? Let me introduce two key terms: forecasting and discounting.”

    “If the market can forecast what the Federal Reserve intends to do, then it can discount— in layman’s terms, preempt, frustrate, or even nullify— the Fed’s actions. For example, if the market knows the Fed will increase the supply of money a month from today, producers will start today to raise prices of goods and services in anticipation of the increases in their suppliers’ prices, and in consumers’ incomes, that they expect will follow growth of the money supply. The Fed, on the other hand, would like any price increases to come well after the spurt in the supply of money, because the ability of its inflationary policy to stimulate the economy depends on a lag. So, when the market forecasts and discounts the Fed’s actions, they lose their effectiveness. Conversely, when the Fed deceives the market, the more likely the Fed will achieve its desires. This explains why the Fed asserts political independence from Congress and the Treasury, why it refuses to operate according to fixed rules, and why it makes its decisions in secret— because the Federal Reserve’s ability to deceive depends on its power; and its power depends on its ability to deceive.

    CRA$HMAKER will also challenge its readers’ preconceived notions, and push them to think seriously about the Constitution, money and banking, the true nature of financial markets, and the relationships between government and a free economy, between politics and patriotism, and especially among government, business, and crime.

    As the authors explain in their Preface:

    ... Crashmaker goes beyond Lord Acton’s observation that all power tends to corrupt, to the conclusion that contemporary political power is nothing less than organized corruption in which government, business, and crime knowingly and intentionally merge—and not simply at the margins. Predictably, therefore, America’s mainstream intellectuals will revile Crashmaker as “paranoiac” and “extremist”.

    This characterization will have some historical basis. For Crashmaker stands, without apology, upon the shoulders of the original and greatest of American political “paranoids” and “extremists”: the Founding Fathers, for whom government was a dangerous instrument to be closely confined by natural law and moral strictures, legislatures were self-interested judges in their own case, and factions— what contemporary America knows as special-interest groups—were threats to the Republic’s stability.

    The Founders would have denounced the modern-day Marxism of irredeemable, legal-tender paper currency emitted by a monopolistic banking cartel, and graduated individual income taxes, not only as “extreme”, but even as impossible under the Constitution they designed to protect and preserve personal liberty and private property.

    Now, however, mainstream politicians and judges, as well as intellectuals, see nothing amiss in paper money and income taxes, while contending that to return to the Founders’ Constitution is impossible.

    Crashmaker’s theme, however, is that such a national renaissance is no less possible than it is desirable, necessary, and even urgent if America is to survive as the Founders intended and common Americans desire.

    By reading CRA$HMAKER, you can decide who’s right— the Founding Fathers, or the people who support the Federal Reserve, income taxes, and the other paraphernalia of what Lara Bernot calls America’s modern gangster government.

    Thanks for visiting the CRA$HMAKER website.

    Now, what do you intend to do about it?

    If what you’ve just perused convinces you that CRA$HMAKER is unlike any other political novel you’ve ever read...

    if the idea of touching off a nationwide popular revolt with the sparkof a single man’s lust intrigues you...

    even if you’re boiling with indignation that anyone would actually propose to turn out to pasture the Federal Reserve, the income tax, Social Security, and other sacred cows of today’s Welfare State...

    then you need this book— for entertainment, for education, for an emotional jolt.

    Revel in it or revile it — but read it you must!

    To order your own hardcover two-volume CRA$HMAKER set, please click on the book icon below.

    © 2000 by Victor Sperandeo and Alvaro Almeida