Categories » ‘Banking Fraud’
February 26th, 2014 by olddog
By Thorsten Polleit
on February 26, 2014
Credit is a wonderful tool that can help advance the division of labor, thereby increasing productivity and prosperity. The granting of credit enables savers to spread their income over time, as they prefer. By taking out loans, investors can implement productive spending plans that they would be unable to afford using their own resources.
The economically beneficial effects of credit can only come about, however, if the underlying credit and monetary system is solidly based on free-market principles. And here is a major problem for today’s economies: the prevailing credit and monetary regime is irreconcilable with the free market system.
At present, all major currencies in the world — be it the US dollar, the euro, the Japanese yen, or the Chinese renminbi — represent government sponsored unbacked paper, or, “fiat” monies. These monies have three characteristic features. First, central banks have a monopoly on money production. Second, money is created by bank lending — or “out of thin air” — without loans being backed by real savings. And third, money that is dematerialized, can be expanded in any quantity politically desired.
A fiat money regime suffers from a number of far-reaching economic and ethical flaws. It is inflationary, it inevitably causes waves of speculation, provokes bad investments and “boom-and-bust” cycles, and generally encourages an excessive built up of debt. And fiat money unjustifiably favors the few at the expense of the many: the early receivers of the new money benefit at the expense of those receiving the new money at a later point in time (“Cantillon Effect”).
One issue deserves particular attention: the burden of debt that accumulates over time in a fiat money regime will become unsustainable. The primary reason for this is that the act of creating credit and money out of thin air, accompanied by artificially suppressed interest rates, encourages poor investments: malinvestments that do not have the earning power to service the resulting rise in debt in full.
Governments are especially guilty of accumulating an excessive debt burden, greatly helped by central banks providing an inexhaustible supply of credit at artificially low costs. Politicians finance election promises with credit, and voters acquiesce because they expect to benefit from government’s “horn of plenty.” The ruling class and the class of the ruled are quite hopeful that they can defer repayment to future generations to sort out.
However, there comes a point in time when private investors are no longer willing to refinance maturing debt, let alone finance a further rise in indebtedness of banks, corporations, and governments. In such a situation, the paper money boom is doomed to collapse: rising concern about credit defaults is a deadly enemy to the fiat money regime. And once the flow of credit dries up, the boom turns into bust. This is exactly what was about to happen in many fiat currency areas around the world in 2008.
A fiat money bust can easily develop into a full-scale depression, meaning failing banks, corporations filing for bankruptcy, and even some governments going belly up. The economy contracts sharply, causing mass unemployment. Such a development will predictably be interpreted as an ordeal — rather than an economic adjustment made inevitable by the ravages of the preceding fiat money boom.
Everyone — those of the ruling class and those of the class of the ruled — will predictably want to escape disaster. Threatened with extreme economic hardship and political desperation, their eyes will turn to the central bank which, alas, can print all the money that is politically desired to keep overstretched borrowers liquid, first and foremost banks and governments.
Running the electronic printing press will be perceived as the policy of the least evil — a reaction that could be observed many times throughout the troubled history of unbacked paper money. Since the end of 2008, many central banks have successfully kept their commercial banks afloat by providing them with new credit at virtually zero interest rates.
This policy is actually meant to make banks churn out even more credit and fiat money. More credit and money, provided at record low interest rates, is seen as a remedy of the problems caused by an expansion of credit and money, provided at low interest rates, in the first place. This is hardly a confidence-inspiring route to take.
It was Ludwig von Mises who understood that a fiat money boom will, and actually must, ultimately end in a collapse of the economic system. The only open question would be whether such an outcome will be preceded by a debasement of the currency or not:
The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation, which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion and thus bring about the crisis. The depression follows in both instances.
A monetary policy dedicated to averting credit defaults by all means would speak for a fairly tough scenario going forward: depression preceded by inflation. This is a scenario quite similar to what happened, for instance, in the fiat money inflation in eighteenth-century France.
According to Andrew Dickson White, France issued paper money
seeking a remedy for a comparatively small evil in an evil infinitely more dangerous. To cure a disease temporary in its character, a corrosive poison was administered, which ate out the vitals of French prosperity.
It progressed according to a law in social physics which we may call the "law of accelerating issue and depreciation." It was comparatively easy to refrain from the first issue; it was exceedingly difficult to refrain from the second; to refrain from the third and with those following was practically impossible.
It brought … commerce and manufactures, the mercantile interest, the agricultural interest, to ruin. It brought on these the same destruction which would come to a Hollander opening the dykes of the sea to irrigate his garden in a dry summer.
It ended in the complete financial, moral and political prostration of France — a prostration from which only a Napoleon could raise it. 
Note: The views expressed in Daily Articles on Mises.org are not necessarily those of the Mises Institute.
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Thorsten Polleit is chief economist of the precious-metals firm Degussa and co-founder of the investment boutique Polleit & Riechert Investment Management LLP. He is honorary professor at the Frankfurt School of Finance & Management and adjunct scholar of the Mises Institute. He was awarded the 2012 O.P. Alford III Prize in Libertarian Scholarship. His website is www.Thorsten-Polleit.com. Send him a mail. See Thorsten Polleit's article archives.
You can subscribe to future articles by Thorsten Polleit via this RSS feed.
 Ludwig von Mises. Interventionism: An Economic Analysis. Irvington-on-Hudson, N.Y.: Foundation for Economic Education, 1998. P. 40.
 Andrew Dickson White. Fiat Money Inflation in France, How It Came, What It Brought, and How It Ended. D. Appleton-Century Company Inc., New York and London: D. Appleton-Century, 1933. S. 66.
At one point in my life I had enough creditability with the younger men working around me, which resulted in many asking me how a working man could have a nice home like mine, two almost new vehicles, and no debt at 35. This is of course not an accomplishment to brag about, but to these young men it seemed like I must have done something illegal to accomplish. I told them that I had always kept my debt repayment no higher than fifty percent of my cash flow, which gave me room to maneuver my assets and provide for savings. I could have started out buried in debt as they did but it just never made sense to me to be bent over a barrel for half my life. As my business grew, I never borrowed money to operate on, and only borrowed for capital expansion (equipment that was needed to increase cash flow) I shopped around for the lowest interest and lowest prices and never purchased the best of everything. Most products needed to run a business can be located at better prices than what the biggest suppliers sell. I could go on and on about this subject, but few people will take advice that will cause them to wait until they can buy what they want without borrowing the money to buy it. Therein lies the snake that poisons they’re life. They invent excuses why they can’t. Young man/woman take this to the bank, adjust your finances so you can put 25% of your net pay in savings every week, and only use it for medical emergencies. Put you’re saving’s in something that increases in value, or earns as much interest as you would have to pay to borrow it, and don’t think you cannot buy a house without a mortgage because I did it, and it can still be done. WARNING:
Elbow grease required!
February 25th, 2014 by olddog
Stockman – $500 Trillion Derivative Bomb Threatens The World!
Today David Stockman warned King World News that a terrifying $500 trillion derivative bomb threatens the entire world. He also went on to caution about a second danger facing the world. KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman had to say in part II of a series of powerful interviews that will be released today.
Stockman: “I think the great ticking time bomb is interest rate swaps. The last time I checked they were in the range of $500 trillion. Who knows what’s lurking underneath the surface there?….
Stockman: “The single greatest danger is that the game the central banks are playing today will come to an abrupt and destructive end. That’s the danger because the whole system is now running off the short-run maneuvers, liquidity, and guidance that the central banks are injecting into the market every day. The danger is that one of these days the whole system will fail because it is unnatural and artificial, and when that happens it’s going to be a pretty difficult (and chaotic) time.” read more!
Just think a moment, the International Investment Bankers have been sucking our country dry for more years than anyone on earth has lived. Does that make sense folks? when will the people understand they simply cannot have a life of total leisure, we must spend time learning what is going on in our government and discuss what to do about it. By now, the entire world could have financial security if it were not for these blood suckers. Please for the sake of your children and Grand children get off your ass and learn. If I can find and learn what is wrong with the world, there is no excuse for anyone to remain ignorant. There is a way to fix the world. KILL THE BANKERS, and confiscate their wealth! Does that offend you? You don’t seem to get upset when the bankers have millions killed in their wars, while you work in their war factories though, do you? Wake the hell up America!
February 13th, 2014 by olddog
This article was written by Koos Jansen and originally published at In Gold We Trust
These financial industry giants lived through all the wealth cycles of the past 100 years and more. What used to be long term wealth investments evolved to the day-trading, making money activities, with a top in the year 2000. Then the financial industry morphed rapidly into the absurd High Frequency Trading. All wealth is now a spooky derivative of what it once was. Debt rules!
The US was the biggest gold reserve holder in the entire world, with 28,000 metric tons of gold in its vaults (60% of the world's total gold reserves). Most, if not all, of that gold disappeared from the UST, whilst the financial industry and the debt driven economy, expanded. First there was the London Gold Pool selling central bank gold reserves, then in 1974 Louise Auchincloss Boyer discovered that N. Rockefeller was selling UST Fort Knox gold. Three days later she fell out of her window (July 3, 1974).
Immediately afterwards a Fort Knox propaganda tour was organized. All gold fever stopped in 1980. Stock markets started their rise to the moon. Fifteen years later, the European System of Central Banks started their gold sales. Stock markets reached for the stars and suddenly The Queen made a propaganda tour through the London gold vaults (Dec, 2012). Now, China, Russia and other pro gold states (BRICS Development Bank) are accumulating the scare residues of available physical gold. The debt driven Western economy is in stagnation and the global debt crisis remains unsolved.
Where has all the physical bullion gold gone? Where is it concentrated after 45 years of distribution and very low paper gold prices? Hard to say, but the main flow of physical gold went certainly from West to East. Simply because the Western financial (pseudo) wealth industry was rising since 1980 and that made physical gold obsolete, in particular for the average Western man on the street.
The MSCI emerging market index is declining and never reached the Dow/Nasdaq/S&P heights. Physical gold has flown to these Eastern emerging (mostly surplus producing) markets whilst Western deficits are still rising. An upside down world,…or not. European banks have a $ 3.4 trillion exposure to the weak emerging markets who are suffering from brutal $ withdrawals. China's shadow banking is enormous and dangerous. The entire world has multiple fundamental reasons to embrace physical gold as a wealth asset, but only an extremely small minority keeps accumulating physical gold. The bulk of physical gold is now in the very strong hands of Western and Eastern giant dynasties and a relative very small group of gold wealth connected individuals. They all continue to accumulate, whatever the paper price of gold may discourage. They all anticipate the same looming catastrophe: pseudo-wealth destruction!
The Far & Middle East stores its wealth in physical gold and the West keeps going for financial industry pseudo-wealth and paper gold for making more (debt)money. This gold imbalance will increase strongly the more the gold price declines! Declining gold prices must encourage the further accumulation of risk assets. The Western giants don't care that Joe sixpack has no gold. They must feed their financial industry pseudo-wealth (buy stocks and debt paper). The Western giants, with trainloads of physical gold, don't care that the scarce left-overs of available physical gold flows cheaply to the East. When the pseudo-wealth comes to an end and the East will say physical gold is the real store of wealth, the Western giants with gold in their vaults, remain wealthy. Then the whole (political) economic story restarts from scratch.
The giant dynasties *are* the financial industry. They produce and control the bulk of the debt-driven pseudo-wealth. The FED is even providing liquidity for Mario's ECB (swaps). That's why their balance sheet is diverging. Euro-land is in fact still $-land.
China's present gold policies are building a base to take over the paper gold pricing from the dollar's financial regime. The valuation of physical gold must be totally delinked from currency and risk assets. China wants an orderly and open Rimini gold market with satisfactory gold market laws as to protect all wealth assets. A gold market where all underground speculative activities are strictly forbidden. They invite all foreigners to gradually participate in this gold market with emphasis on the free floating valuation of physical gold. This is in 100% contrast with the de facto dollar's gold pricing and gold policies. The dollar system doesn't want your wealth assets to be protected with gold. One day, the masses will embrace China's gold policies and leave the international $-reserve for what it never was (hard currency). The Western giants, indeed anticipated this all along with stealth accumulation of physical gold in their private vaults. They know the day of reckoning comes near.
The time has come to s&%t or get off the pot. If you have any investments at all in paper instruments or currency, convert them to cash and buy gold and silver NOW! You will never see your savings mature if their in dollars and you expect to live another year. Who do you know personally that has lost their money in hard commodities? Gold has thousands of years of history supporting its value retention and appreciation. Likewise silver, which is a much better investment for the common man with less than a $million to invest. If you are living pay-check to pay-check sell everything you can do without and buy ammo, guns, shovels, heritage seeds, and various other necessities for when the SHTF. Your dollars will wither away just like your youth, only much faster now. It’s time to get off your backside and learn how to live in a post dollar America. Barter will be the common mans money system before you are five years older.
February 3rd, 2014 by olddog
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January 21st, 2014 by olddog
By Michael Snyder
Did you know that financial institutions all over the world are warning that we could see a "mega default" on a very prominent high-yield investment product in China on January 31st? We are being told that this could lead to a cascading collapse of the shadow banking system in China which could potentially result in "sky-high interest rates" and "a precipitous plunge in credit". In other words, it could be a "Lehman Brothers moment" for Asia. And since the global financial system is more interconnected today than ever before, that would be very bad news for the United States as well. Since Lehman Brothers collapsed in 2008, the level of private domestic credit in China has risen from $9 trillion to an astounding $23 trillion. That is an increase of $14 trillion in just a little bit more than 5 years. Much of that "hot money" has flowed into stocks, bonds and real estate in the United States. So what do you think is going to happen when that bubble collapses?
The bubble of private debt that we have seen inflate in China since the Lehman crisis is unlike anything that the world has ever seen. Never before has so much private debt been accumulated in such a short period of time. All of this debt has helped fuel tremendous economic growth in China, but now a whole bunch of Chinese companies are realizing that they have gotten in way, way over their heads. In fact, it is being projected that Chinese companies will pay out the equivalent of approximately a trillion dollars in interest payments this year alone. That is more than twice the amount that the U.S. government will pay in interest in 2014.
Over the past several years, the U.S. Federal Reserve, the European Central Bank, the Bank of Japan and the Bank of England have all been criticized for creating too much money. But the truth is that what has been happening in China surpasses all of their efforts combined. You can see an incredible chart which graphically illustrates this point right here. As the Telegraph pointed out a while back, the Chinese have essentially "replicated the entire U.S. commercial banking system" in just five years…
Overall credit has jumped from $9 trillion to $23 trillion since the Lehman crisis. "They have replicated the entire U.S. commercial banking system in five years," she said.
The ratio of credit to GDP has jumped by 75 percentage points to 200pc of GDP, compared to roughly 40 points in the US over five years leading up to the subprime bubble, or in Japan before the Nikkei bubble burst in 1990. "This is beyond anything we have ever seen before in a large economy. We don't know how this will play out. The next six months will be crucial," she said.
As with all other things in the financial world, what goes up must eventually come down.
And right now January 31st is shaping up to be a particularly important day for the Chinese financial system. The following is from a Reuters article…
The trust firm responsible for a troubled high-yield investment product sold through China's largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million)product matures on Jan. 31, state media reported on Friday.
Investors are closely watching the case to see if it will shatter assumptions that the government and state-owned banks will always protect investors from losses on risky off-balance-sheet investment products sold through a murky shadow banking system.
If there is a major default on January 31st, the effects could ripple throughout the entire Chinese financial system very rapidly. A recent Forbes article explained why this is the case…
A WMP default, whether relating to Liansheng or Zhenfu, could devastate the Chinese banking system and the larger economy as well. In short, China’s growth since the end of 2008 has been dependent on ultra-loose credit first channeled through state banks, like ICBC and Construction Bank, and then through the WMPs, which permitted the state banks to avoid credit risk. Any disruption in the flow of cash from investors to dodgy borrowers through WMPs would rock China with sky-high interest rates or a precipitous plunge in credit, probably both. The result? The best outcome would be decades of misery, what we saw in Japan after its bubble burst in the early 1990s.
The big underlying problem is the fact that private debt and the money supply have both been growing far too rapidly in China. According to Forbes, M2 in China increased by 13.6 percent last year…
And at the same time China’s money supply and credit are still expanding. Last year, the closely watched M2 increased by only 13.6%, down from 2012’s 13.8% growth. Optimists say China is getting its credit addiction under control, but that’s not correct. In fact, credit expanded by at least 20% last year as money poured into new channels not measured by traditional statistics.
Overall, M2 in China is up by about 1000 percentsince 1999. That is absolutely insane.
And of course China is not the only place in the world where financial trouble signs are erupting. Things in Europe just keep getting worse, and we have just learned that the largest bank in Germany just suffered " a surprise fourth-quarter loss"…
Deutsche Bank shares tumbled on Monday following a surprise fourth-quarter loss due to a steep drop in debt trading revenues and heavy litigation and restructuring costs that prompted the bank to warn of a challenging 2014.
Germany's biggest bank said revenue at its important debt-trading division, fell 31 percent in the quarter, a much bigger drop than at U.S. rivals, which have also suffered from sluggish fixed-income trading.
If current trends continue, many other big banks will soon be experiencing a "bond headache" as well. At this point, Treasury Bond sentiment is about the lowest that it has been in about 20 years. Investors overwhelmingly believe that yields are heading higher.
If that does indeed turn out to be the case, interest rates throughout our economy are going to be rising, economic activity will start slowing down significantly and it could set up the "nightmare scenario" that I keep talking about.
But I am not the only one talking about it.
In fact, the World Economic Forum is warning about the exact same thing…
Fiscal crises triggered by ballooning debt levels in advanced economies pose the biggest threat to the global economy in 2014, a report by the World Economic Forum has warned.
Ahead of next week's WEF annual meeting in Davos, Switzerland, the forum's annual assessment of global dangers said high levels of debt in advanced economies, including Japan and America, could lead to an investor backlash.
This would create a "vicious cycle" of ballooning interest payments, rising debt piles and investor doubt that would force interest rates up further.
So will a default event in China on January 31st be the next "Lehman Brothers moment" or will it be something else?
In the end, it doesn't really matter. The truth is that what has been going on in the global financial system is completely and totally unsustainable, and it is inevitable that it is all going to come horribly crashing down at some point during the next few years.
It is just a matter of time.
December 27th, 2013 by olddog
Introduction by Jefferson’s Voice
We have many heroes in our midst and some of the most tireless and courageous are those who have been very active in the 9/11 Truth movement for over ten years. It is impossible to overstate the importance of recognizing the magnitude of damage done to the American republic from the 9/11 false flag attack. It was the fulcrum event launching the global war on terror resulting in the deaths of thousands of US soldiers, disabling many more, killing millions of innocent civilians in the middle east and devastating the lives of tens of millions. The effects at home have been nothing short of catastrophic as (1) a steady metastasis of an encroaching police state eviscerates our Constitution and civil liberties; (2) a black hole of military expenditures accelerates America's trajectory into fiscal insolvency; and (3) as an event that provided a smokescreen for large scale criminal activity to include financial and corporate crime.
The 9/11 false flag could be said to be the second major coup, after JFK's assassination, to be foisted on a mostly unsuspecting American public ultimately intended to deprive us of our God given rights to freedom, dignity, and self determination, gifted to us by the greatest minds of the Enlightenment and the countless men and women who made the ultimate sacrifice for generations of Americans. 9/11 spawned a form of malignant cancer on our civilization that must be exposed now at this critical juncture in our collective history.
Thankfully, the 9/11 Truth movement is still working hard to educate the public and has written extensively and produced documentaries to that end. The most recent 9/11 Truth film "September 11: The New Pearl Harbor" is a brilliant example, utilizing expert researchers who "knock it out of the ballpark" and thus shame disinformation propagandists as establishment buffoons. While the subject matter is sobering, to say the least, never before have I relished an opportunity to cheer on the "good guys". Please watch the documentary in full and then share this with everyone you know and in as many internet forums and networks as you possibly can so we can come together as one voice to defend our basic human rights.
May God bless those fighting the good fight for Truth, Justice, and Freedom.
Go to this link and SAVE IT then click on PLAY NOW
Here are links from a different source if you have problems with the one above.
There have been several good films and videos about 9/11. But the new film by award-winning film-maker Massimo Mazzucco is in a class by itself.
For those of us who have been working on 9/11 for a long time, this is the film we have been waiting for.
Whereas there are excellent films treating the falsity of particular parts of the official account, such as the Twin Towers or WTC 7, Mazzucco has given us a comprehensive documentary treatment of 9/11, dealing with virtually all of the issues.
There have, of course, been films that treated the fictional official story as true. And there are films that use fictional stories to portray people’s struggles after starting to suspect the official story to be false.
But there is no fiction in Mazzucco’s film – except in the sense that it clearly and relentlessly exposes every part of the official account as fictional.
Because of his intent at completeness, Mazzucco has given us a 5-hour film. It is so fascinating and fast-paced that many will want to watch it in one sitting. But this is not necessary, as the film, which fills 3 DVDs, consists of 7 parts, each of which is divided into many short chapters.
These 7 parts treat Air Defence, The Hijackers, The Airplanes, The Pentagon, Flight 93, The Twin Towers, and Building 7. In each part, after presenting facts that contradict the official story, Mazzucco deals with the claims of the debunkers (meaning those who try to debunk the evidence provided by the 9/11 research community).
The Introduction, reflecting the film’s title, deals with 12 uncanny parallels between Pearl Harbor and September 11.
The film can educate people who know nothing about 9/11 (beyond the official story), those with a moderate amount of knowledge about the various problems with the official story, and even by experts. (I myself learned many things.)
Mazzucco points out that his film covers 12 years of public debate about 9/11. People who have been promoting 9/11 truth for many of these years will see that their labors have been well-rewarded: There is now a high-quality, carefully-documented film that dramatically shows the official story about 9/11 to be a fabrication through and through.
This is truly the film we have been waiting for.
Part I, II, and III
Availability: The film is freely available to the world at:
This series of films should be watched by every person in America, and I mean if you do not do everything in your power to watch it and then demand everyone you know watch it, then you are not worthy of calling yourself an American. We can no longer tolerate the people sitting on their hands while America burns to the ground.
December 21st, 2013 by olddog
By Michael Gaddy email@example.com
“I submit that the United States government is under the control of psychopaths; and the infestation is nearing completion; the point at which nothing can stop the oncoming violence.” ~Jack Mullen, 2011
If we are to truly understand the meaning of the above quote it is necessary I believe to differentiate between what is referred to as “primary psychopaths” and ‘secondary psychopaths.” A primary psychopath is a person who is genetically predisposed to the personality traits of a psychopath and this category appears to be more violent than the secondary psychopaths who are more a product of their environment.
In most instances, either psychopath appears to be outwardly “normal;” both primary and secondary psychopaths have no sense of ethics or the rights of others. If this does not describe to a “T” the current and former administrations of this country including bureaucrats, members of Congress and the Supreme Court, I don’t know what does. If they go into government service normal, they certainly become a product of their environment or they are ignored.
Need we say more than the admitted to police state that we now live under; the ever increasing war on Individual Rights as guaranteed by our Creator and defined in our Bill of Rights; the abnormal number of people incarcerated in our prison system; continued false flag events; immoral wars and torture waged on citizens of other countries; bank bailouts, vaccinations; GMOs; the perversion of our education system to one of indoctrination, huge cases of mortgage fraud initiated by the very banks who were bailed out from their irresponsible lending practices using taxpayer dollars and the constant attacks on our right to protect ourselves and our families; just to name a few.
The government lied about the circumstances of the attack on Pearl Harbor; they lied about the Gulf of Tonkin incident; they lied about the Oklahoma City bombing; they lied about TWA 800; they lied about Ruby Ridge; they lied about Waco and they lied about 9/11. The very essence of government is fear and the lie. The very tools used most often by psychopaths.
It is relatively simple to understand why most Americans do not want to believe for a moment that our government is staffed by a group of psychopaths but the evidence is hard to refute.
What are the characteristics of a psychopath according to mental health professionals? Compare the ones listed below to what you see from day today in our elected officials; bureaucrats; federal, state and local, and law enforcement personnel.
1. Uncaring or coldhearted.
2. Lack of social emotions such as shame, guilt and embarrassment.
3. Irresponsibility or the blaming of others.
4. Superficial charm.
5. Untruthfulness, insincerity or outright lying.
6. Inflating the truth for selfish reasons.
7. Overconfidence and boastfulness.
8. A lack of realistic goals; Irritable and aggressive.
If you are still having problems believing we are governed by psychopaths and that once normal people are aligned with government they become “secondary psychopaths,” please consider the following:
Government supposedly operates with “consent of the governed” or in other words government in all its various forms is our employee. Consider for a moment what your reaction would be if one of your employees; attempted to have you put in prison on perjured testimony; sent your children to fight your neighbors based on lies; stole your property and your money; vaccinated your children with poison; attempted to poison your food supply; used your money to indoctrinate your children while claiming to educate them; tried to steal your home; stole your money and gave it to their bank; told you how much water you could put in your toilet and tried to take your guns—just to name a few?
How long would you allow an employee who did even one of the above mentioned acts of tyranny to remain in your employ? Would you have serious reservations about their mental state? For what reason would you continue to offer them employment?
A must read book on this subject is: Political Ponerology: A science on the nature of evil for political purposes, by Andrew M. Lobaczewski. Here are a few relevant quotes from his seminal work.
“In a pathocracy, all leadership positions must be filled by individuals with corresponding psychological deviations, which are inherited as a rule. However, such people constitute a very small percentage of the population and this makes them more valuable to the pathocrats.
Under such conditions, no area of social life can develop normally, whether in economics, culture, science, technology, administration, etc. Pathocracy progressively paralyzes everything. Normal people must develop a level of patience beyond the ken of anyone living in a normal man's system just in order to explain what to do and how to do it to some obtuse mediocrity of a psychological deviant who has been placed in charge of some project that he cannot even understand, much less manage. This special kind of pedagogy – instructing deviants while avoiding their wrath – requires a great deal of time and effort, but it would otherwise not be possible to maintain tolerable living conditions and necessary achievements in the economic area or intellectual life of a society. Even with such efforts, pathocracy progressively intrudes everywhere and dulls everything.
Therefore, to mitigate the threat to their power, the pathocrats must employ any and all methods of terror and exterminatory policies against individuals known for their patriotic feelings and military training; other, specific "indoctrination" activities such as those we have presented are also utilized. Individuals lacking the natural feeling of being linked to normal society become irreplaceable in either of these activities.
The phenomenon of pathocracy matures during this period: an extensive and active indoctrination system is built, with a suitably refurbished ideology constituting the vehicle or Trojan horse for the purpose of pathologizing the thought processes of individuals and society. The goal – forcing human minds to incorporate pathological experiential methods and thought-patterns, and consequently accepting such rule – is never openly admitted. This goal is conditioned by pathological egotism, and the possibility of accomplishing it strikes the pathocrats as not only indispensable, but feasible.” (Emphasis mine)
Sometimes the only way to understand what we already know but can’t explain is to read the words of others. I now understand why Zbigniew Brzezinski fought so hard to stop the publication of Mr. Lobaczewski’s book; Brzezinski being the “New World Order” person that he is. Never forget Brzezinski was responsible for providing 500 million of our taxpayer dollars to the Muslim Brotherhood back during the Carter administration. Brzezinski had no fear of "stirred-up Muslims" it seems.
If we as a country continue to allow psychopaths to control our government, we are destined to be found on the scrapheap of history but first will come the awful acts of genocide and democide that have been the trademark of psychopathic tyrants throughout recorded history as is fully documented in the book “Death by Government” by R. J. Rummel.
Again, the choice is ours: Liberty or slavery, genocide and democide?
Have you voted or supported a psychopath for public office lately? Perhaps you have voted for the lesser of two psychopaths?
If, as Mr. Gaddy states, government operates only with the consent of the governed, let it be known that those ass holes in Washington
DO NOT HAVE MY CONSENT!
They are the most cowardly scum-bags alive and deserving of all things foul, painful, and disgusting.
December 19th, 2013 by olddog
By Ron Ewart
“There are those that recognize a wrong and act to right it. There are those who "see" the wrong, but do nothing. But unfortunately there are way too many of those who don’t "see" anything at all.” -Ron Ewart
If you were standing on the railroad tracks and you saw a train bearing down on you at high speed, what would you do? If your child was playing next to a cliff and you saw him chasing a ball towards the cliff, what would you do? If burglaries and thefts were rising in your neighborhood, what would you do? If bullies and thugs took over your town, what would you do? If a man confronted you on the street and demanded your money, what would you do? In most cases you would act swiftly to get out of the way, save your child, take action to stop the neighborhood crime, confront the bully and resist the robber from stealing your money ….. or would you?
What if your neighbor came over one day and said, I need more of your property and I am moving my fence twenty feet onto yours and I'm not going to pay you a dime, what would you do? If your boss said that he has established a new policy of welfare and has decided to take a percentage of YOUR paycheck (not his) and give it to the poor, what would you do? If you were part of an organization that existed on private donations and the board members decided that they were going to use fear, intimidation, threats, lies and propaganda to increase donations, what would you do? If you were a deacon of a church and you discovered that the other deacons were using parishioner money for their own use, or grossly wasting that money, what would you do? If the local school board decided that they were going to include in the curriculum for your children, a course on Earth's salvation that required teaching the kids that their parent's lifestyle was environmental heresy and should be condemned, what would you do?
In all of the above cases, a normal, reasonable and prudent person would set about to right the situation, one way or another and if necessary, he would enlist others to help him, because a normal, reasonable and prudent person has a sense of what is right and wrong. When they see a wrong, they try to right it, provided they have the courage to face those who desire to continue the wrong for their own benefit, or a hidden agenda.
The Revolutionary War righted a wrong and declared freedom in America. The War of 1812 was a continuation of the Revolutionary War and our winning it prevented America, once again, from falling under British rule. The Civil War righted an egregious wrong and ended black slavery ….. well sort of. The first and second World Wars righted international wrongs against human life, dignity and individual rights. These wrongs were righted by courageous leaders and individuals who knew that they might have to make the ultimate sacrifice to right those wrongs.
Today, we have a litany of wrongs that need to be righted, right here in America. We have government perpetrating on the people the same "wrongs" that we mentioned above, that a normal, reasonable and prudent person would take immediate action to right, when the wrong was recognized.
Why then would the normal, reasonable and prudent people of America turn their heads when their government commits the same wrongs as the neighbor, the bully, the boss, the board members, or the deacons, but on a much grander scale? Why indeed!
Americans, by the millions, are getting hammered by Obama Care through no fault of their own. Why do they take it? Why isn't there a massive uprising? Why aren't lawsuits flying all over the place? Why aren't the people demanding that heads roll with the large, unified voice of millions?
Our school children are being brainwashed and indoctrinated by a federal government-created curriculum (Common Core Standards, Race To the Top and No Child Left Behind programs) that emphasize socialism, collectivism and multi-culturalism. Why aren't the parents crying foul? Why don't they take over the local school boards and reverse this garbage? Why aren't they at the state legislatures creating all kinds of Hell? Do they just not care ….. or are they afraid?
Landowners are being treated like criminals and going to jail for minor code violations on THEIR property. They are forced to fight a tyrannical government, whether it be local, state, or federal, all on their own. They seldom win. But you never hear of these individual battles waged against an arrogant and abusive government, a government that has become the master instead of the servant, a government that blatantly ignores the constitutional limits on its power.
The IRS targets conservatives for political purposes and the president and congress promise a full and complete investigation. The FBI says they are investigating. Nothing happens. Why aren't the people, en masse, demanding answers and not taking a "we're-investigating" as the answer? Why aren't IRS officers, employees and agents being tried in court, fined and incarcerated for long periods for their known criminal acts? Why do Americans tolerate this injustice? Do we enjoy being slaves to the IRS? Have we all become cowards and unwilling to challenge tyranny when it arises?
Four of our diplomats are killed in Benghazi well over a year ago, due to government negligence and neglect. No one in government provided the necessary security, asked for by the diplomats. No one came to their rescue during the attack. No one is being held accountable for the criminal negligence that allowed the attack to happen. Congress is investigating. The Obama Administration is stonewalling and obstructing. Nothing is happening. No one is fired. No one is in jail. Where is the outcry for four dead brave Americans who paid the ultimate price because their government failed them? Have we lost our courage to right a wrong when we recognize it?
Then there are the Fast and Furious and the NSA scandals. In the Fast and Furious scandal, U. S. Attorney General Eric Holder, the top law enforcement officer of America, has been shielded by his boss, our liar-in-chief Barack Hussein Obama, who has declared executive privilege and won't release the documents that Congress has requested to find out who the Hell allowed Fast and Furious to happen in the first place. One of our brave border agents was killed by one of those guns in this gun- running scandal. Has anyone been fired? Has anyone gone to jail? Holder lied to Congress, which is a crime, but he gets off scot-free. The Congress seems to be powerless to stop him or put him in jail for this crime.
The NSA says it isn't spying on us, but it probably is, based on releases by ex-NSA staffer Edward Snowden, who now resides in Russia fearing for his life. Is he a patriot or a traitor? We don’t know. The public simply does not know the depths of NSA spying and how much data it is really collecting. NSA Chief James Clapper lied to Congress and that's a crime. But he is running around loose, free as a bird, telling the public that the NSA isn't really spying on us. Yeah, and President Obama says you can keep your doctor and your health care plan and health care costs are going to go down! Sure!
Why aren't Americans rising up by the millions to find out the truth? Once again, why haven't there been multiple lawsuits by harmed individuals over these egregious violations of our constitutional rights? There should be class action lawsuits exploding all over the place? Why aren't there?
Winston Churchill said at a time of great sacrifice and often quoted: “If you will not fight for right when you can easily win without bloodshed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves."
We do not believe that America is in the grips of cowardice because after all, we are Americans. We have a chance to right these wrongs peacefully, before the only action left to us is war. But do we have the will, the courage, the commitment and the resources to right these wrongs before war is our only option? Or, "Will we have to fight when there is no hope of victory, because it is better to perish than to live as slaves."
The abject failure of Obama Care has opened millions of eyes to the flawed policies of liberals and progressives that have foisted these policies upon all Americans, doing great harm. If we do not act on this knowledge with the courage of our convictions and quit trying to compromise our beliefs because liberals have more votes, then we will have let over 200 years of freedom slip through our fingers. Ladies and gentlemen, there are other ways to fight these criminals, than at the ballot box.
Future generations will damn us for our cowardice in the face of danger because they will say we knew and did nothing. They will ultimately pay the price in money and eventually in blood, if we let them down.
If the people are afraid, as so many Americans are, and let the bully (government) win, the bully will win all the time and the bully is winning and has been winning for over 100 years ….. not just for the 5 years under the Obama regime. It's the people that let the bully win, out of fear and cowardice. Unless the people stand up en masse, as we are "standing up" with our articles, there will be no restoration of freedom.
Let us all promise that in the year 2014 and from then on, courage will return to those who have allowed easy times and a chicken in every pot to cloud their vision about the huge price that was paid for their freedom and the price that now must be paid to reclaim it, because we chose to look the other way when tyranny raised its ugly head.
In closing, we want to wish each of our readers a very special Christmas holiday with friends and family, at a time of giving and love, as well as the religious celebration it was designed to be for 150 years.
This will be our last article for the year 2013. We will take up the torch of freedom starting on the first Sunday of January, 2014. In the interim, we encourage you to take the time to visit our two websites that are dedicated to the protection of our property rights (http://www.narlo.org) and to exposing the arrogance, fraud, abuse and corruption of the IRS (http://www.attackwatchspies.com). Each website contains a wealth of valuable information and not just for rural landowners, or disgruntled taxpayers.
In liberty, until Sunday, January 5, 2014 …..
© 2013 Ron Ewart — All Rights Reserved
Ron Ewart, a nationally known author and speaker on freedom and property issues and author of his weekly column, "In Defense of Rural America", is the President of the National Association of Rural Landowners, (NARLO) a non-profit corporation headquartered in Washington State and dedicated to restoring, maintaining and defending property rights for urban and rural landowners. Mr. Ewart can be reached by e-mail for comment at firstname.lastname@example.org, or by 'phone at 1 800 682-7848.
December 15th, 2013 by olddog
By Stephen Lendman
It's the world's largest financial market. It trades around $5 trillion daily. It's more than all global equity markets combined. It operates round-the-clock. It's manipulated for profit. More on that below.
Grand theft reflects official Wall Street policy. It's longstanding. High crimes go unpunished. Bankers make money the old-fashioned way. They steal it. They do it lots of clever ways.
They do it through fraud, grand theft, market manipulation, front-running, misrepresentation, scamming investors, naked short selling, precious metals price suppression, controlling Washington, getting open-ended low or no interest rate bailouts when needed, and assuring world financial capitals are banker occupied territories.
They do it artfully. Few people know what's going on. Scandals rarely surface. Budding ones are usually buried. Little more than dust gets kicked up. Headlines disappear in short order.
In June 2012, JPMorgan Chase CEO Jamie Dimon testified before the Senate Banking Committee. He discussed his firm's trading losses at the time.
It was more of a homecoming than grilling. Washington is Wall Street occupied territory. Regulators don't regulate. Oversight is absent.
Investigations rarely happen. Initiated ones are whitewashed. Criminal fraud is institutionalized. It's encouraged, not curbed.
Congress, the administration, SEC, and credit rating agencies incestuously collude with giant banks and other major financial institutions. Whatever they want, they get.
Wall Street never had it so good. Senators didn't lay a glove on Dimon. His grand theft business model wasn't discussed.
Former bank regulator/financial fraud expert Bill Black's book titled "The Best Way to Rob A Bank Is To Own One" explains well.
He coined the term "control fraud." It lets corporate officials commit grand theft. Finance capital never had it so good. Trillions of dollars are stolen. Nothing intervenes to stop it.
MF Global (MFG) looted customer accounts. Former Goldman Sachs chairman/CEO Jon Corzine ran operations.
MFG faced a run on its holdings. In October 2011, it filed for Chapter 11 bankruptcy protection.
Months before doing so, it moved hundreds of millions of dollars in customer money from its US brokerage unit to Bank of New York Mellon Corp.
It looted them. It used client money to speculate, pay down debt and cover losses. It committed grand theft. It's longstanding Wall Street practice.
Why not when rare punishments at most are wrist slaps. Top Wall Street officials aren't punished. They free to steal again.
Markets are rigged. Movements up or down aren't random. The
Wall Street controlled Fed and high-level insiders manipulate them for profits.
Washington facilitates their lawlessness. It does it with business friendly legislation. It does it with similar executive orders. It does it by turning a blind eye to the worst of what goes on.
Market rigging is longstanding practice. It's part of the system. On March 18, 1989, Ronald Reagan's Executive Order 12631 created the Working Group on Financial Markets (WGFM).
It's commonly called the Plunge Protection Team (PPT). Officials involved (or their designees) include:
• the President;
• the Treasury Secretary as chairman;
• the Fed chairman;
• the SEC chairman; and
• the Commodity Futures Trading Commission chairman.
PPT's "Purposes and Functions. Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets."
"(T)he Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events (pertaining to the) October 19, 1987 (market crash and consider) recommendations that have the potential to achieve the goals noted above; and
(2)….governmental (and other) actions under existing laws and regulations….that are appropriate to carry out these recommendations."
Government and Wall Street collude. They manipulate markets doing so. They move them up and down. Enormous profits are made both ways. Most people don't know what goes on.
Wall Street/Washington invisible hands work better than Adam Smith imagined. They do it in dirty ways unknown in his day.
Mythology holds that prices move up or down randomly. Market forces do so, it's claimed. Manipulation isn't mentioned.
It's commonplace. It's longstanding. Tools are much more sophisticated than earlier. Computer technology facilitates blatantly illegal practices.
The 1934 Gold Reserve Act created the Treasury's Exchange Stabilization Fund (ESF).
Section 7 of the 1944 Bretton Woods Agreements made its operations permanent.
The Treasury runs the Fund. Congressional oversight is bypassed. Manipulation keeps sharp dollar fluctuations up or down from disrupting financial markets.
Treasury operations include stabilizing foreign currencies, extending credit lines to foreign governments, and guaranteeing money market funds against losses up to tens of billions of dollars.
In 1995, Clinton provided Mexico a $20 billion peso credit stabilization line. It did so in time of crisis.
Earlier administrations extended loans or credit lines to various other countries. Current US lending to the IMF tops $35 billion.
Years earlier it was $57 billion. In 2009, Congress expanded contributions by $108 billion. The Treasury's web site states:
"By law, the Secretary has considerable discretion in the use of ESF resources."
"The legal basis of the ESF is the Gold Reserve Act of 1934."
"As amended in the late 1970s….the Secretary (per) approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities."
In other words, the Treasury maintains a slush fund. It uses it for whatever purposes it wishes. It manipulates markets. It operates secretly.
In 1999, the Counterparty Risk Management Policy Group (CRMPG) was established. It followed the Long Term Capital Management (LTCM) crisis.
CRMPG manipulates markets beneficially for Wall Street giants. It lets them collude through large-scale program trading. Doing so manipulates markets up and down advantageously.
Troubled giants get bailed out. Ordinary people get sold out. The process repeats as needed. A secret FDIC plan involves looting bank accounts.
Depositor theft may follow. Doing so is called bail-ins. It's code language for grand theft.
Ordinary people and richer ones have trillions in bank accounts. It's low-hanging fruit. It's a treasure trove begging to be looted. Legislative shenanigans may legitimize it.
Cypriot officials did it. Canada approved it. So did Eurozone member states and New Zealand. It's theft by other means.
Leading US banks warned about charging depositors. They may do so if the Fed cuts interest it pays them on bank reserves.
Imagine being charged for checking, savings and/or money market accounts. Depositors already earn virtually nothing on them. Penalizing them further may follow.
Libor markets are rigged. It's an acronym for London Interbank Offered Rate. It's a fundamental rate-setting benchmark. It's set daily between UK banks for overnight to 12 month durations.
It's produced for ten currencies with 15 maturities. It represents the London market's lowest cost of unsecured funding. It's the primary global short-term rate benchmark.
In the 1980s, it began expanding exponentially in importance. London's status grew as an international financial center. It's the world's largest.
It handles over 20% of all international bank lending. More than 30% of foreign exchange transactions go through London.
Demand grew for an accurate measure of the real rate at which banks and other financial institutions could borrow from each other.
It affects the price and availability of capital. The higher Libor goes, the greater the borrowing cost for business, individuals, real estate and other loans.
When things work right, operations are hardly noticed. When trouble occurs, all hell breaks loose.
Libor rigging affects countless trillions of dollars. Amounts involved exceed global GDP multiple times over.
Predatory banks manipulate things advantageously. Practices are too corrupted to fix. The longer they go unaddressed, the more harm done.
Financial giants, central bankers and complicit politicians bear full responsibility. Dirty policies persist out-of-control.
Libor rigging is one of many manipulative market practices. Systemic corruption breeds more of the same. An illusion of stability conceals business as usual.
Gold and other precious metals markets are rigged. Naked short selling offsets rising bullion demand. Prices are driven lower.
Naked shorts reflect what sellers don't have. It's illegal. It persists anyway. Bullion prices would be much higher otherwise. Eventually they'll rise to their true value. When remains to be seen.
QE reflects Fed market rigging. Treasuries and mortgage-backed securities are bought. Too-big-to-fail banks hold enormous amounts of junk. Fed buying substitutes dollars for toxic assets.
Banks get lots of cash to speculate. Markets are manipulated up in response. It's artificial. It's not real. It can't last. It continues until bubbles eventually pop.
Foreign exchange markets are rigged. On October 12, The Economist headlined "The FX is in," saying:
It's "been a dreadful couple of years for financial benchmarks." Banks rig libor. "Commodities prices from crude oil to platinum have been the subject of allegations and inquiries."
Authorities now scrutinize global foreign exchange (FX) markets. Trillions of dollars are involved daily. "(S)uspect banks have tampered with those, too."
On October 4, Reuters headlined "Switzerland probes banks over possible forex rigging." FINMA said it's "currently (investigating) several Swiss financial institutions in connection with possible manipulation of foreign exchange markets."
It's coordinating with regulators in other countries. "(M)ultiple banks around the world are potentially implicated."
UBS is Switzerland's largest bank. It was fined $2.7 billion for market rigging. Credit Suisse may be involved. So are major Wall Street banks.
Bloomberg said major ones use advance customer order knowledge to push through trades manipulatively.
They colluded with other banks doing so. FX markets are poorly regulated. Most trading takes place away from exchanges. It's a shadowy anything goes realm.
Price rigging is standard practice. Hundreds of banks trade currencies. Four dominate the market: Deutsche Bank, Citigroup, Barclays and UBS.
Concerns center around what's known as the "London Fix." It's a daily snapshot of currency prices.
Enormous shifts happen during a 60-second window before 4PM London time. It's when markets are especially liquid.
Banks set a certain rate for trades of one currency against another. Shortly afterwards, prices revert to normal rates.
Forex traders call the practice banging the close. It reflects blatant market manipulation. Betting the right way yields huge profits in seconds.
A fraction of a cent is all it takes. Trading involves a measure called a "pip." It represents one basis point or 1/100th of 1%.
Multiple trades near the London Fix can yield enormous profits. Repeating the process many times daily multiplies it hugely. A few pips in the right direction is all it takes.
The so-called WM/Reuters (WMR) rate works as follows. It's when "more than 40% of daily global FX trading is done. It's the nearest thing to a closing price in a 24-hour, self-regulated market."
Unwary traders are fleeced big time. Banks know big trades they'll execute on behalf of others.
Moving forex prices ahead of the fix yields big profits. Major banks do it at the expense of unsuspecting clients.
According to New York University's Stern School of Business Professor Marti Subrahmanyan:
"There's no policeman. These things have sort of fallen through the cracks. Foreign exchange is really nobody's kind of baby."
Major forex traders collude in electronic messaging groups. They're called "the bandits club" and "the cartel."
They profit at the expense of clients. They do so by manipulating markets up or down. Regulators do virtually nothing to stop it.
Investigations come and go. Minor penalties at most are imposed. It's part of the system. It shifts enormous wealth to major players.
Forex trading is a buyer's beware market. Traders call it the wild west. Volatility is valued. Sharp rice movements create profit opportunities. Stability minimizes them.
Manipulation is part of the system. Forex trading shenanigans reflect grand theft. Who said crime doesn't pay?
Stephen Lendman lives in Chicago. He can be reached at email@example.com.
His new book is titled "Banker Occupation: Waging Financial War on Humanity."
Visit his blog site at sjlendman.blogspot.com.
Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.
It airs Fridays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.
December 4th, 2013 by olddog
By Peter Schiff
Having replaced savings with debt on both the national and individual levels, I think it's well past time for Westerners to take a few lessons from our creditors in the East. Many Americans consider gold a "barbarous relic," but in Asia, the yellow metal remains the bedrock of individual savings plans. This means that either greater than half of the world's population are barbarians, or they've held onto an important tradition that our culture has forgotten.
A Culture of Gold
One of the most important elements of Eastern gold demand is that it is not limited to educated investors or the higher classes, as often seems to be the case in the West. Throughout Asia, no matter one's social status, precious metals are the first assets people choose to protect their wealth. There is not even a glimmer of doubt about the enduring value of hard money.
A recent Bloomberg article quotes a Chinese woman, "I don't know anything about the stock market and I don't have enough money to buy property, so I figured gold is the safest choice."
Some might write off this philosophy as naïve, but her logic is founded in centuries of tradition, borne of hard-won experience. The same goes in India and across South Asia, where gold is an essential part of local religious customs. From wedding dowries to temple offerings, gold carries a caché in Asia that most Westerners can't fathom.
Consider the US as a comparison. Here, newlyweds are more likely to receive a house full of fancy appliances than any assets that might form the foundation of long-term financial independence.
After a couple of generations of US-dollar dominance, Americans have become lazy with our wealth. While we exploit our economic power by going into debt for fancy cars, big-screen TVs, and expensive smart phones, our creditors are steadily stockpiling gold.
A River of Gold from West to East
Asia's love affair with gold became worldwide news when the price of the yellow metal dropped last April. Asian consumers saw the price drop as a fortunate buying opportunity, and metals dealers were swamped with orders for both bullion and jewelry. Premiums skyrocketed across the continent, but this did not slow demand.
With all this demand, shouldn't gold's global spot price have continued rising? Unfortunately, many Westerners were selling into the Eastern demand. In fact, the stagnant spot price concealed a historic transfer of real wealth.
The rising price of gold over the past decade had lured many Western investors into the paper gold market through precious metals exchange-traded funds (ETFs). To ETF investors intent on fast growth rather than long-term capital preservation, the recent drop in price was viewed as a sell signal, not an opportunity.
By the end of September, gold ETFs had sold off about 700 metric tons of physical gold – more than half of it in just the second quarter. The World Gold Council reports that the majority of these outflows have been absorbed by Asian demand.
However, Western selling was enough to keep the global spot price from recovering. Instead of more capital flowing into gold, it was the gold itself which was flowing from Western financial institutions to Eastern households.
The latest data shows that consumer demand for physical gold in the first three quarters of 2013 hit a historical record of 2,896.5 metric tons. 90% of the year-over-year increase in this demand came from Asia and the Middle East.
Meanwhile, Americans have been distracted by one record high after another in the domestic stock market.
When reporting on Asian gold demand, the Western media tends to focus on nations like India, which has practically declared war against gold buyers this year in a misguided attempt to curb its trade deficit.
The Indian government raised tariffs on the metal to a record 10%, and now requires importers to re-export 20% of their gold. India's central bank even went as far as asking temples around the country to divulge how much gold they were storing, though many refused.
Thailand and Vietnam have taken similar steps to subdue their populations' gold demand, even though the primary outcome has been to increase gold smuggling.
These governments' measures have received the most attention because they fit nicely into the Western narrative that gold is an old-fashioned asset that does more harm than good in modern economies. But the truth is that the only ones harmed by gold are Western governments!
Last month, China officially surpassed India as the world's largest consumer of gold. Unlike New Delhi, Beijing is encouraging its citizens' gold lust by easing restrictions on the gold trade. The People's Bank of China (PBOC) is preparing to expand the number of businesses allowed to import and export gold on a large scale. It has also increased the amount of tax-free gold citizens are allowed to bring into the country.
Meanwhile, China is finally pulling away from the US dollar. A month after China's government news agency called for a "de-Americanized world," a deputy governor at the PBOC said, "It's no longer in China's favor to accumulate foreign-exchange reserves."
Simply put, China is planning to wind down its own stimulus program of buying US dollars, and instead allow the value of the yuan to appreciate. In preparation for this shift, China has been diversifying its foreign exchange reserves into gold. The PBOC has not released official numbers on its gold reserves since 2009, but experts have begun to speculate that its current holdings are far larger than previously estimated.
A Rude Awakening
This is the time when the West realizes that its great reservoir of wealth has run dry, as the gold has all flowed East.
When China stops buying US Treasuries, the Fed will remain the only major buyer of US debt. This will drive interest rates up, thereby sticking the US government with obligations it cannot possibly fulfill. Ultimately, this will be the death knell for the dollar, as the Fed will be forced to significantly expand its QE program to assume the role as Treasury-buyer of last resort.
Mom-and-pop gold buyers throughout the East probably do not understand all the subtleties of the foreign exchange markets, but an undying appreciation for gold is built into their culture. Make no mistake: the East is the engine of the 21st century global economy – and it is riding on rails of gold.
This holiday season, consider breaking with our recent Western tradition of giving gifts of no enduring value. Instead, take the opportunity to turn some of your paper dollars into gifts that will still have value when your kids are grown.
Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, best-selling author and host of syndicated Peter Schiff Show. He is Chairman of Euro Pacific Precious Metals, a gold and silver dealer selling reputable, well-known bullion coins and bars at competitive prices.
Many American’s are afraid to buy Gold and or Silver because they are afraid their government will eventually confiscate it, and they have good reason to fear their government, as they have made no secret of their intentions to steal the people wealth. Look at how many pension funds are being taken and that is just for starters. Neither do Americans trust other Nations governments to stand up to ours and allow us to invest in foreign accounts. So, what’s the solution?
“Government is instituted for the common good; for the protection, safety, prosperity, and happiness of the people; and not for profit, honor, or private interest of any one man, family, or class of men; therefore, the people alone have an incontestable, unalienable, and indefeasible right to institute government; and to reform, alter, or totally change the same, when their protection, safety, prosperity, and happiness require it.”- John Adams
"If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be."-Thomas Jefferson
The problem in America is not the government; the real problem in America is a spineless, ignorant, apathetic citizenry.
The unanimous Declaration of the thirteen united States of America,
When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shown, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.
The above escape from tyranny is how this Nation was born, and is what the present government is denying you.
STAND UP AND START OVER AMERICA!
Jefferson’s Voice says
Sadly, money is the most powerful organizing principle in our society because most people have lost a sense of the eternal values we must live by to live free and dignified lives. This self-defeating behavior could be said to be due to the dumbing down, mind control, and exploitation of hard-wired greed. There are also elements of apathy and self-entitled narcissism.
Central banking may be the main tool used to control us but no economic system, however egalitarian and fair rationed based it may be said to be, can protect us from ourselves when our minds are weak, distorted, and controlled. There are no economic panaceas. We do know from experience that centralized control is never responsive to our inherent need to live as free souls and never fully transparent and thus centralized systems of control are always prone to corruption and abuse.
Like most things in life, a liquid form of exchange in an economy (“money”), can be a double-edged sword. Apathy and ignorance is the problem. Jefferson was right, “If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.”
December 2nd, 2013 by olddog
Watch this eleven minute video by FutureMoneyTrends.com
By Mac Slavo
Few economic analysts truly understand the underlying fundamentals of the global economy and their impact on the workings of the world. Fewer still are willing to share that knowledge withthe general public and advise others on how toshield themselves against a destabilization of the system as we have come to know it.
Bud Conrad of Casey Research is one of those who does, and in the interview below with Future Money Trends he discusses the end result of the manipulations currently being executed by our government, central banks, and financial institutions.
Despite what we’ve be told is the case, they have fixed absolutely nothing. Our national debt has grown, millions have already been impoverished and millions more will be soon. The next crisis is imminent.
The complex of potential future problems will be based on the same problems that caused the 2008 downturn… too much government debt, too much private debt and a collapse of that debt when it can’t be paid, creating a new economic crisis.
Look at the big long-term future of our economic situation… I have predicted, that in my lifetime, the US government issue of currency can’t be trusted.
It will implode and will issue a new currency to replace the dollar. That will destroy an awful lot of debts.
It will give the government a new leg, and if they can base it on something like gold it will, both, be very bullish for gold and create new confidence. If they create a new paper system like the old paper system it’ll die just like a Banana republic [like] Argentina about every ten years later.
With that… I am saying in my lifetime we’ll see the demise of the dollar and certainly before that we’ll see gold at $10,000 an ounce.
This critical information for those who want to understand what’s happening behind the scenes and how those schemes will affect the future of our economic and monetary systems:
What’s important to understand is that the manipulation is rampant, as Bud explains in the interview above, and it will soon be revealed in the form of widespread collapse of our economic and financial systems.
Consider the monetary calamity that must occur in order for gold to rise to $10,000 an ounce, and understand that whatever causes such a price spike will be an unprecedented event in human history. It won’t just be gold that’s rising, but any tangible asset essential to survival or the flow of commerce.
Acquire those assets now at a fair price – while you still can.
Any investment you presently have that does not payoff in a hard commodity is shortly going to amount to ZERO, nothing, nada! You may have millions of dollars in the bank, and their only worth a loaf of stale bread. Don’t be ignorant enough to keep your dollar denominated investments any faster than you can convert them to physical gold, silver, or most other physical commodities. If you’re in denial about the dollar crash, you’re a fool. Your financial survival, or death, is only a matter of time, but it’s coming sure as hell. I pity you fools who believe it is disloyal to dump your dollars. Dollars have been nothing but a tool to rob you of your wealth!
November 25th, 2013 by olddog
By Tyler Durden
The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed's comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow once QE entered its terminal phase (for however briefly before the plunge in the S&P led to the Un-taper). After all, the Fed's policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset "tightening financial conditions", right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors.
In other words, just like Europe is already toying with the idea of NIRP (and has been for over a year, if still mostly in the rhetorical and market rumor phase), so the Fed's IOER cut would also result in a negative rate on deposits which the FT tongue-in-cheekly summarizes "depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households."
If cutting IOER was as much of an easing move as the Fed believes, banks should be delighted – after all, according to the Fed's guidelines it would mean that the return on their investments (recall that all US banks slowly but surely became glorified, TBTF prop trading hedge funds since Glass Steagall was repealed, and why the Volcker Rule implementation is virtually guaranteed to never happen) would increase. And yet, they are not:
Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.
Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.
“Right now you can at least break even from a revenue perspective,” said one executive, adding that a rate cut by the Fed “would turn it into negative revenue – banks would be disincentivised to take deposits and potentially charge for them”.
Other bankers said that a move to negative rates would not only trim margins but could backfire for banks and the system as a whole, as it would incentivise treasury managers to find higher-yielding, riskier assets.
“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the danger is that banks are pushed into riskier assets to find yield.”
All of the above is BS: lending has never been a concern for the Fed because if it was, then one could scrap QE right now as an absolute faiure. Recall that as we showed recently, the total amount of loans and leases in commercial US banks has been unchanged since Lehman, with the only rise in deposits coming thanks to the fungible liquidity injected by the Fed.
TOTAL DEPOSITS 7.3 TRILLION – LOANS 7.3 TRILLION
TOTAL DEPOSITS 9.5 TRILLION – LOANS 7.3 TRILLION
TOTAL BANK RESERVES 2.2 TRILLION
Furthermore, contrary to what the hypocrite banker said that "the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed's reserves are used to push the market higher most recently in "What Shadow Banking Can Tell Us About The Fed's "Exit-Path" Dead End."
What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM's CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit.
Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed's point of view) purchase inert assets like gold or Bitcoin.
Which brings us back to the first sentence and the Fed's now massive Catch 22: on one hand, should the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson.
On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk position.
When the banks start charging depositors, watch the Bankers start massive investments in Bitcions, which will be followed by many disgruntled depositors, resulting in a massive price increase in bitcoins. When it’s high enough the bankers will cash out leaving behind massive losses for the remaining bitcoins holders.
By Robert Wenzel
I just spent two hours today with Bitcoin expert Trace Mayer and Vitalik Buterin, head writer atBitcoinMagazine.com, who have been in San Francisco for a couple of days.
It's always a pleasure to talk to Trace, who I consider one of the foremost Bitcoin experts. He bought a ton of bitcoins at 25 cents (and lower). I asked him if he was a billionaire yet, and he just smiled.
During our meeting he outlined the fascinating supply and demand dynamics of Bitcoin. There are currently 12 million bitcoins outstanding but Trace makes the case that the actual number of bitcoins in the float is much smaller.
For example, he believes that most of the bitcoins that the FBI grabbed at the time of Ross Ulbricht's arrest were not bitcoins that belonged to Ulbricht, but were coins that belonged to active buyers and sellers on Silk Road. Thus, these active coins are now in the hands of the FBI and are out of the float.
But more intriguing, Trace tells me he believes that between 3 million to 6 million of bitcoins will never trade again, because they were purchased early on and those who purchased them have forgotten the passwords to gain access to them. Thus, the true Bitcoin float maybe only between 6 million and 9 million bitcoins.
Given the amount of hedge fund money that is now entering the Bitcoin arena (He told me that at a meeting he attended in NYC that a Goldman Sachs analyst was even in attendance studying how GS can get into the Bitcoin game.), Trace believes that Bitcoin is headed to $3,500. A trader friend of mine thinks it will head to $10,000, before it crashes to zero.
I continue to believe that Bitcoin has many of the aspects of a pump and dump scheme and agree with Peter Schiff that it is Tulipmania 2.0, but I don't think the last tulip has been sold.
It is a very risky trade, but there is probably more upside here.
In the EPJ Daily Alert, I will have more details about Bitcoin and what Trace told me about when he plans to start selling and why. It's great timing advice for Bitcoin traders. LET THE BUYER BEWARE!
November 23rd, 2013 by olddog
By Paul Craig Roberts
Federal Reserve and Wall Street Assassinate US Dollar
Since 2006, the US dollar has experienced a one-quarter to one-third drop in value to the Chinese yuan, depending on the choice of base.
Now China is going to let the dollar decline further in value. China also says it is considering undermining the petrodollar by pricing oil futures on the Shanghai Futures Exchange in yuan. This on top of the growing avoidance of the dollar to settle trade imbalances means that the dollar’s role as reserve currency is coming to an end, which means the termination of the US as financial bully and financial imperialist. This blow to the dollar in addition to the blows delivered by jobs off shoring and the uncovered bets in the gambling casino created by financial deregulation means that the US economy as we knew it is coming to an end.
The US economy is already in shambles, with bond and stock markets propped up by massive and historically unprecedented Fed money printing pouring liquidity into financial asset prices. This month at the IMF annual conference, former Treasury Secretary Larry Summers said that to achieve full employment in the US economy would require negative real interest rates. Negative real interest rates could only be achieved by eliminating cash, moving to digital money that can only be kept in banks, and penalizing people for saving.
The future is developing precisely as I have been predicting.
As the dollar enters its death throes, the lawless Federal Reserve and the Wall Street criminals will increase their shorting of gold in the paper futures market, thereby driving the remnants of the West’s gold into Asian hands.
PBOC Says No Longer in China’s Interest to Increase Reserves
By Bloomberg News – Nov 20, 2013
The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policymakers will rein in dollar purchases that limit the yuan’s appreciation.
“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting.
When it finally goes down, over half of this country is going to panic and Martial Law will be in full Force. No electric, gas, travel, food, or anything else to sustain life. The preppers will shoot you as soon as you approach their house, if our hero soldiers have not already done it.
November 9th, 2013 by olddog
By MARTIN CRUTSINGER AP Economics Writer
Chairman Ben Bernanke said Friday that the Federal Reserve is drafting rules to close large insolvent banks without bringing down the broader financial system, one of many steps regulators must take to prevent another financial crisis.
Bernanke said the absence of a process to deal with systemically important institutions in 2008 left regulators facing the "terrible choices of a bailout or allowing a potentially destabilizing collapse." His comments were made at a conference sponsored by the International Monetary Fund.
The financial overhaul law passed by Congress in 2010 gave regulators better tools to close down large financial institutions, he said. The Fed and other regulators are working to implement those rules now.
"Our continuing challenge is to make financial crises far less likely and, if they happen, far less costly," Bernanke said.
At the IMF conference, Bernanke was asked about whether enormous growth in student loan debt could trigger a future financial crisis. He said that the debt was a drag on the economy but not a threat to the overall financial system.
Student loans prevented many Americans from buying homes or making other big-ticket purchases, he noted. But the bulk of the debt is backed by the federal government, so financial institutions would not be at risk from widespread defaults, he said.
"I don't see it affecting the ability of the financial system any time soon," Bernanke said. "But it is a serious issue and more thought needs to be given to helping people make better choices."
Bernanke did not make any comments during his appearance about current economic conditions or the Fed's interest rate policies.
Sounds to me like some serious cogitation has been going on in the I.M.F. – D.C. sausage factories. Watcha think folks, will they sacrifice the Lamb of Gold? Don’t forget, they can fart longer than we can hold our breath!
November 8th, 2013 by olddog
By Benjamin Fulford
Some kind of paradigm changing event in the US is imminent, according to multiple sources. Three US agency sources, two from the Pentagon and one from the CIA, all say something very big is going to happen in the United States but none of them were sure exactly what it will be. The Pentagon had already taken over the FEMA camps and was going to put all the politicians from Washington D.C. there, one source said. Another, at Pentagon Military intelligence, confirmed “there was a lot of activity and confusion within the military,” a sign of something big going on but, he was not sure exactly what.
He added that for some reason all the FEMA coffins had been moved to Puerto Rico and were being displayed on Puerto Rican TV stations. The CIA source, for his part, said they were going to shut down the US power grid on November 11th.
In another sign something unusual was going on the US armed forces radio station in Japan broadcast a statement last week that the “US military did not have a budget for 2014.”
A top level Chinese government representative also reported that an agreement had been reached to release vast amounts of funds to finance a major campaign to end poverty and stop environmental destruction.
After receiving the call from the Chinese source, this writer called to US Embassy in Tokyo, Japan to ask if the government of the United States supported setting up a new development agency to carry out a multi-trillion dollar campaign to end poverty and stop environmental destruction.
In what seems to be a direct reply, a Pentagon military intelligence agent in Japan met this writer and asked if President Barack Obama could be included in the campaign. He said that despite Obama’s “weird metrosexual lifestyle” and despite the fact his father was an American communist and not a Kenyan politician as advertised, they supported Obama because he stopped World War 3 from starting in the Middle East.
In response he was told that if the cabal was defeated by the White Dragon Society and its allies, the US military would receive more funding that it does now and would be asked to help in the campaign to fix the planet. As far as Obama was concerned, the representative was told his fate is up to the American people and the US military industrial complex.
In any case, the United States is under enormous external pressure to get its act together.
The NSA scandal is one example. Here we have a US defector in Russia revealing secrets about US spying on its allies. The result is heavy criticism on the US regime by supposed allies such as the German, French and Spanish governments, a clear sign the Europeans are moving closer to Russia and distancing themselves from the US.
The other big move against the US last week came when Russia sent two strategic nuclear bombers to Venezuela after which Venezuela immediately took over US owned oil rigs in the country.
The Chinese did their bit by announcing they had surrounded the US with nuclear submarines that could annihilate the entire continental United States. They have also been aggressively investing in new energy technology and will pioneer a post-oil world.
In the old oil powers fortress of the Middle East as well, the Russians are continuing to jump into the US vacuum. Turkey, supposedly a NATO country, is negotiation a customs union with Russia, buying missiles from China and rounding up and removing Mossad agents spying on Iran from Turkey. Egypt too is buying missiles and other weapons from Russia and offering the Russians a naval base.
Last week when Israeli forces attacked Syria, the US armed forces immediately informed the Russians of this fact, infuriating the Israelis and making it clear that the United States armed forces are no longer going to fight wars for Israel. As a result that country will have to reach a deal with its neighbours and with Russia if it is to remain a viable entity.
The long term plan, according to an Eastern European Illuminati grandmaster, is to create a loose federation of Muslim states anchored by Turkey at one end and Egypt on the other. In this plan, Israel is expected to eventually become a Jewish autonomous region inside this federation.
The totalitarian rulers of Saudi Arabia, for their part, need to remind themselves of the Arab saying: “One day the stick is in your hand, the next day it is in your ass.”
What all this means is that the oil money from both the Middle East and South America will no longer be recycled into the banks that own the Federal Reserve Board thus dooming the Rockefeller/Bush petrodollar.
That is why the US Congress last week suddenly passed a bill allowing the big US banks to once again create infinite amounts of funny money using derivatives.
Of course the US military is upset about all this but, the answer is that the world wants them to go into Washington D.C. and Wall Street and remove the parasitical gangsters who have caused so much misery to the people of the world, including the American people.
After that, the US military industrial complex will get generous funding to do things like protect endangered species, fight bandits as well helping put to an end to various forms of planetary rape such as over-fishing and the destruction of rain forests. That is exactly what is about to happen, the pentagon and agency sources hint. The sources also say the cabal members and their families, who had planned to hide in underground bases while they killed everybody else, will instead find themselves confined in the FEMA camps. If that does not happen, the noose will only get tighter until it does. The people of the world are sick and tired of the criminal behavior of the US rogue regime.
If the US power grid is shut down on November 11th, it will mean no internet, no TV and no ATMs. If this event does happen, and if it is managed by the good guys, it can thus be used to render impotent two of the cabal’s main weapons, the control of the distribution of money and the use of mass propaganda. The system could then be rebooted minus all the hysterical nonsense and fake news that it has been churning out recently.
The coordinated attempts by cabal slave governments in Japan, the US and the UK to drastically curtail press freedom are signs of cabal desperation, not cabal power. They have lost control of the plot and somehow think they can put the genie back into the bottle by cutting off the truth. That is not going to happen.
The cabal appointed leaders in Canada, the UK and Japan are under attack on multiple fronts. In Canada a corruption scandal is closing in on Bush slave appointee Stephen Harper. In the UK, the passage of a draconian press law has triggered a massive anti-government campaign. In Japan, the gangsters who used to work for the cabal are no longer doing so, meaning the Japanese Parliamentary acting troupe will be reading from a new script. That has already been seen with the announcement last week of joint Japanese Russian military maneuvers. Expect more soon.
The end game of all this will be world peace.
Plus, if we are lucky, and it turns out alien races have been blockading us because of our criminal leadership, once we attain world peace we might be allowed off the planet and we will get the chance to explore the universe. If not, we will just have to work on making this planet really nice and fun.
October 23rd, 2013 by olddog
By Dave Hodges
There is one undeniable fact that is emerging from the world of international finance, if you want to retain the money that you have earned, you are going to have to leave the country or you are going to have to overthrow the bankers that have hijacked your government.
I will not mince words, this means revolution in which your primary foe will be DHS and their 2.2 billion rounds of newly acquired ammunition and their 2700 armored personnel carriers. There is no middle ground, it is either fight or acquiesce. And the bad guys know this and this is why they have a plan to incrementally steal your money under false pretenses so as not to alert the masses and rouse them into a state of revolution. .
How We Got In the Present Mess
The threat to your financial well-being has far less to do with the persistent and incremental theft of your money by the Federal Reserve, which has resulted in the value of your dollar eroding to a value of less than 4 cents over the past 100 years. The present day threat has to do with the outright theft of your bank account by new IMF policies.
These same bankers, who have deflated the dollar and wrecked the economy, are coming after your pensions, as I have written about; and now the banksters want your bank accounts.
The IMF Is the Enforcer of the Global Elite
IMF director, Christine Lagarde, has been recklessly advocating for a wholesale seizure of 10% of all accounts in the Eurozone, but because there may be riots and even a revolution if there are wholesale bail-ins, the IMF has settled on a more incremental plan of economic subjugation in a which a 10% tax will implemented against all bank account holders in order to pay down the debt.
What the IMF and the central bankers are not telling you is that the debt can never be paid down because the primary source of the debt comes from the derivatives market which totals a minimum of one quadrillion dollars which is 16 times the entire value of the planet. In short, these banksters are merely trying to stay one step ahead of the burning bridge by stealing your pensions and bank accounts. And does anyone truly believe that these banksters will stop at looting just 10% of your bank account? When does 10% become 20%, which becomes 30%, which becomes 100%? This will be followed by the bankers issuing a neo-feudalism style of welfare to all citizens. Mark my words America, the 10% “tax” is just the starting point.
Selling the “Tax” As a Tax on the Rich
The ultimate “gold-digger”
The IMF has repackaged Lagarde’s recommendation for a 10% tax on all banking accounts and is recommending that all developed countries make up their debt load by “taxing the rich”. This is the same game, just a different name. This game of semantics is based upon the belief that the people of ordinary means will accept a 10% initial hit on their savings so long as the rich are sharing in the pain. Really? Since when have the rich ever shared in the burden for anything? Last year, Warren Buffet bragged that his secretary paid more tax than he does. The rich do not pay tax, they are allowed by the IRS to accept payment for their services in off-shore foreign banks that the IRS does not solicit information from. You and I do not have access to the same tax evasion schemes because it often takes a minimum of $30-50 million dollars to open such an account in places like the Cayman Islands. Therefore, when Lagarde’s IMF tells you that you are going to be taxed (i.e. 10% of your bank account stolen) at the same rate as the rich, do not believe Lagarde and the IMF because they are lying through their teeth.
The coming global tax will be instituted through the central bank of each nation. This means that in the US, the Federal Reserve Banks of Bank of America, Wells Fargo, JP Morgan Chase et al., will be impacted. This means that the tax-dodge banks used by the global elite in the Cayman Islands will be exempt from this “tax” because they are not under the direct authority of a central bank.
Ask yourself, when you have been standing in the teller lines at the Bank of America, how many times have you seen Bill Gates, David Rockefeller, Warren Buffet, George Soros and Donald Trump in the same teller line next to you? These banksters will not pay one dime in tribute to the IMF. This entire burden, just as it is with the tax system, will be paid by the middle class of each nation. The elite do not bank where you do.
Global Elite Finance As a Second Language
If you want to truly understand where this is headed, you must become fluent in the language of the global elite and the first prerequisite understanding that you must acquire is that no developed nation is taxing the rich to any significant degree. A nation can say they are taxing the rich and they can even pass laws which state that they are taxing the rich, but no nation is truly taxing the rich. If a nation was to decide to actually to tax the rich, the money of the rich, and their corporate assets, would leave that country so fast that your head would spin because the developed nations of the world are in a race to the bottom in terms of recruiting corporations to relocate to their country by offering corporations and their elite owners huge tax incentives while passing along the corporate and banking debt load to what’s left of the middle class. Therefore, what does tax the rich really mean?
The New Version of Taxing the Rich
The statement, taxing the rich means that the elite are going to introduce what appears to be a universal program which will, on the surface, appear to tax everyone the same in order to pay for the massive debt that is crushing every country on the planet, namely, the derivatives debt.
In the last section of the 10% tax requested, in the IMF report, on page 58, it states the following:
“The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth... Simulations show that maintaining the overall budget at a level consistent with the IMF staff’s medium-term advice would bring the average debt ratio to about 70 percent of GDP by 2030, although in a few countries it would remain above 80 percent. However, the large debt stock, the uncertain global environment, weak growth prospects, and the absence of well-specified medium-term adjustment plans in systemic economies like Japan and the United States complicate the task.“
The Expatriation Option
This above-mentioned IMF analysis tells you quite clearly that their “debt reduction” plan is coming to Japan and the United States. So, perhaps you will decide like record numbers of Americans have already done, that it is time to go to a country such as Costa Rica or Norway and take your money with you. While it is true that you might be able expatriate to one of these countries, taking the bulk of your money with you is going to be a fundamental problem.
JP Morgan Chase has announced that they are stopping international wire transfers from private accounts and are limiting account holders to less than $50,000 cash withdrawals. In the past couple of days, HSBC (America) has announced the same basic policies. I expect that within the next 30 days, the Bank of America and Wells Fargo will follow suit. This is clearly a move designed to prevent capital flight from the United States so that the bankers will have easy access to your funds. Let’s take a big picture view, shall we? There can be no other conclusion than this nation’s megabanks are locking up the money supply that they have control over in preparation of implementing the 10% “tax” on you money.
Even if you decide to give your money one small extra layer of protection and move it into a credit union, and then move your money out of the country, your efforts will largely fail. Because the $50,000 transfer prohibition applies to the transfer of your money to domestic banks as well. The banks are telling you that they own your money, and legally they are correct. Very soon, this expatriation option will disappear.
Your Bank Account Has No Protection
The FDIC has only about $25 billion in its deposit insurance fund, which is mandated by law to keep a balance equivalent to only 1.15% of insured deposits. If a banking collapse were to be on the near horizon, the banksters are not going to notify you because they would not want to incite a bank run. With only 1.15% of all deposits being insured by the FDIC, your money would be left vulnerable and only the elite would be warned as they quietly transfer their money to a safer haven. How do I know this? Because this is exactly what my research discovered on the money movements preceding the Gulf oil spill, as it ws revealed that on the morning of the explosion, Goldman Sachs issued a “put option for preferred insiders” in Transocean (the owner of the Deep Water Horizon oil rig) and the elite had their stock profit margin guaranteed while everyone else took a financial bath! This is the undeniable pattern of the global elite.
Additionally, your bank account has been collateralized against the derivatives debt. The bankruptcy reform laws stemming from the Bankruptcy Reform Act of 2005, derivatives counter-parties are given preference over all other creditors and customers of the bankrupt financial institution, including FDIC insured depositors. This gives what the experts call “super priority” in terms of the line of succession from which to collect bankruptcy monies. Bank of America has conspicuously co-mingled their derivatives debt with your savings account and as such they have every legal right use your money to cover their debt. Oh, they would never do that you say? I have bad news for the uninformed, they already have done that very thing. In the MF Global debacle, the reason that MF Global customers lost their segregated account funds was because the MF Global debt load was caused primarily because of their derivatives debt which, under bankruptcy laws, gave derivatives claimants super-priority in the bankruptcy proceedings. In short, you do not matter.
A Message to All Police State Surveillance Grid Employees
Hey NSA, while you are watching us, the IMF is watching your pensions and bank accounts.
To all of you in the NSA who are spying on Americans to determine who has been naughty or nice, your banks accounts and pensions will soon be gone as well. To all military and police, the same is true for you too. It does not make sense for any American to go along with this tyranny. Why would you people fight on the side of those who would rob you blind at the end of the day? Expatriate or Fight? The options are narrowing very quickly.
Tick, tick tick…..It is 5 seconds to midnight.
October 21st, 2013 by olddog
By Jon Christian Ryter
An excerpt from the book, Whatever Happened To America?
In 1917 Woodrow Wilson's Congress enacted the Trading With the Enemy Act to regulate—not forbid—trade with belligerent nations. The language of this piece of legislation defined precisely who was, and who was not, an enemy of the United States. Specifically excluded from that classification were the citizens of the United States. That was an oversight that would be corrected three days after Franklin D. Roosevelt assumed the mantle of the presidency on March 6, 1933.
During the first 100 days of Roosevelt's administration, Congress passed a litany of legislative programs ostensibly designed to stimulate the economy and send America back to work. Most of this legislation was expediently enacted with about as much congressional forethought as the Emergency Banking Relief Act. A great deal of it, like the Agricultural Adjustment Act, the National Industrial Recovery Act and the Congressional Gold Repeal Joint Resolution, violated the Constitution of the United States, and portions of those acts would be declared unconstitutional by the U.S. Supreme Court in 1935.
The first of three laws designed to wrest control of the United States away from the States and the people was engineered on May 9, 1933. This law, enacted without a single Congressman or Senator reading it and after only 40 minutes of debate in both houses of Congress, by both parties was the Emergency Banking Relief Act.
There were at least two reasons Roosevelt didn't want Congress looking too closely at the language of the Emergency Banking Relief Act. First, it restructured the banking system of the United States and placed even more monetary control in the hands of the central bankers. Second, it gave Roosevelt war powers control over the United States of America in peacetime. But most important, it changed the language of the Trading with the Enemy Act, effectively classifying the citizens of the United States as the enemies of their own central government. And, it did one other thing. It granted Roosevelt (or whomever would follow him into the White House) the right to redefine the ownership of private property in the United States.
Such redefinition was necessary since the war powers authority Roosevelt was being accorded to deal with the national emergency granted him the right to seize the property of those who failed to comply with the laws which were being enacted. The right to seize the property of American citizens without due process would be one of the paramount weapons the government would continue to use long after the emergency expired. It would be a much-used weapon by the Internal Revenue Service, which has not hesitated to seize any asset or property of any American citizen without due process since 1934. In the last few years, that right has also been assumed by State and federal police agencies who now seize the assets of drug dealers and those charged with violations of the RICO act at the time of arrest, not conviction. Gone forever is the presumption of innocence until guilt is proven beyond a reasonable doubt.
Municipalities do the same when they seize the vehicles driven by johns arrested for seeking the illicit pleasures of prostitutes in hundreds of sting operations launched each year by countless brigades of city and county police agencies throughout the country. All such laws, regardless of their deterrent qualities, and regardless if they are upheld by the courts, violate the Constitution of the United States because they deny the accused the right to due process before seizure takes place—an inalienable right they possess under the Constitution of the United States.
It is a troubling sign of our times that courts of law in America, regardless of the compelling interest of society to eradicate the proliferation of illegal drugs that are taking such a devastating toll on human life and dignity while breeding all other forms of crime from petty larceny to murder, would wantonly violate the Constitution of the United States under the guise of providing a safer and more secure America.
The redefinition of private property rights is found in Senate Document 43 that examined, and attempted to justify, the ramifications of the powers delegated to the President under the War Powers Act albeit after-the-fact. On page 9 of that document, the Senate brazenly declared: "The ultimate ownership of all property is in the State; individual so-called 'ownership' is only by virtue of the Government, i.e., law, amounting to mere user…" That particular facet of Document 43, further clarified by Senate Report 93-549, has become codified by precedent.
As the Senate began to examine exactly what powers they had granted the President by amending the Trading With the Enemy Act on March 9, 1933, they concluded that: "Under these powers the president may: seize property; organize and control the means of production; seize commodities; assign military forces abroad; institute martial law; seize and control all transportation and communication; regulate the operation of private industry; restrict travel, and in a plethora of particular ways, control the lives of all American citizens." (Senate Report 93-549.)
It is important to note that every dictatorship in the modern world has abrogated the rights of private ownership, seized property at will, organized and controlled all production within its society, seized and controlled the transportation infrastructure of the nation, nationalized communications to censor the free expression of opinion and restricted the movement of its citizens. This is usually done with an internal passport which the citizens of every authoritarian country are required to carry with them at all times. Whenever these steps are taken by any government, democracy dies a bittersweet death and totalitarianism is born in the ashes of lost freedom.
The Roosevelt brain trust, in paving the way for Roosevelt to implement his New Deal programs, privately acknowledged that most of the economic and social programs they were constructing even before Roosevelt assumed the White House would be legally problematic when viewed in the context of the constitutionality of a United States president's authority in peacetime. In times of war, the Constitution allows for the broadening of presidential powers by the Chief Executive to deal with extraneous, albeit temporary, emergencies that seriously threaten the security and welfare of the nation.
However, in 1933 America was not at war. It was a dilemma the brain trust would quickly solve by modifying the Trading With the Enemy Act of 1917 to include any national emergency. In doing so, it was also necessary to redefine the enemy since the extraneous authority granted the President under the terms of Public Law 91 was directed only at the enemies, and allies of the enemies, of the United States. A peacetime application of the Trading With the Enemy Act without some form of universal modification that would allow Roosevelt to apply the tenets of that law against the citizens of the United States would be meaningless.
Public Law 1, stemming from H.R. 1491, will long be remembered both as the bill nobody read and the legislation that gave the President of the United States dictatorial power over America. As Americans, many of us criticize those citizens who blindly vote for candidates based solely on their political affiliation without possessing any knowledge of the issues at stake in the election in which they are casting their ballots. Yet, in the Congress of the United States, on March 9, 1933, those we elected to represent us before the federal government of the United States did precisely that very thing themselves. Is it any wonder the electorate of America has a herd mentality?
What happened that day in 1933 is more terrifying than the stock market crash and the ensuing Depression combined. Clearly those we elected, and continue to elect, no longer represent the constituents who placed them in office and have not for several years. Most career politicians have been institutionalized and clearly represent only the interests of big government and the special interest groups that contribute massive amounts to keep them in office so they can manipulate the reins of government from behind the scenes in the name of the general public they are sworn to serve.
The special session of Congress that met on March 9, 1933 did so because the President of the United States called them to address a national emergency of such extraordinary proportions that it required extraordinary legislation to cope with the crisis. If that fact, in and of itself, was not a red flag (pardon the pun), the failure to read the legislation being considered for rushed passage (another red flag), or the preamble of the legislation itself should have been.
"Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary speedily to put into effect remedies of uniform national application.
TITLE I. Section 1. The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made, or issued by the President of the United States or the Secretary of the Treasury since March 4, 1933, pursuant to the authority conferred by subsection (b) of section 5 of the Act of October 6, 1917, as amended, are hereby approved and confirmed."
A very large red flag was being waved.
The Emergency Bill begins with an admission that the new President and his Treasury Secretary had already broken the law; and were now seeking not only retroactive exoneration for those deeds, but absolution from future infractions of the Constitution as well. Clearly, Roosevelt and Attorney General Homer Cummings did not want Congress scrutinizing the bill too closely because some of the very subtle textual changes they made in their revisions of the Act of October 6, 1917 might not stand up under the light of day.
Many Congressmen believed the only revisions were those found in Section 5(b) (italicized). "During time of waror during any other period of national emergency declared by the President, the President may, through any agency he may designate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of license or otherwise, any transactions in foreign exchange, transfers of credits between or payments by banking institutions as defined by the President, and export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency, by any person within the United States or any place subject to the jurisdiction thereof…"
In fact, the Act of October 6, 1917 expressly forbade the President from interfering in banking transactions executed wholly within the United States. Furthermore, Public Law 91, Chapter 106, declares itself to be "An Act to define, regulate, and punish trading with the enemy, and for other purposes" none of which dealt with citizens of the United States, clearly defined by Section 2(c): "(c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any nation with which the United States is at war, other than citizens of the United States…" Again, we see the same exclusion. As defined under the Act of October 6, 1917, American citizens were exempted from the classification of an "enemy." However, in the Roosevelt version, the only people under scrutiny for punitive action are American citizens or those who haplessly fall within the jurisdiction of the United States government. Roosevelt sought, and was granted by Congress, power to engage in an economic war against the people of the United States.
It may well be that the only use Roosevelt intended to make of the expanded war powers authority was to protect his Administration from any potential problems that could have arisen from assuming prerogatives he did not legally possess when he closed the banks over which he had no Constitutional authority. More likely than not, either he or his brain trust or both realized that his far-reaching socialist agenda to nationalize the industrial base of America would usurp not only the separation of powers between the executive, judicial and legislative branches of the federal government, but would create insurmountable sovereignty issues between the federal government and the States as well. Realizing that, possessing supra-wartime powers would weigh heavily in disputes with either the States or with Congress.
On September 14, 1976 Congress passed H.R. 3884, the National Emergencies Act (50 USC 1601), Public Law 94-412, to terminate the broad powers previously granted to the President. Exempted from the law were any and all actions taken before the bill became law; or, any fines, assessments or penalties due the government from those actions.
However, what Congress erased with one hand, it rewrote with the other. The only thing permanently taken from the President was autonomy. Section 201.(a) granted virtually the same powers to the Congress, which must now authorize the President to declare states of national emergencies that he could formerly do without their consent.
This slight of hand was important to Congress because it allows Congress, through a concurrent resolution, to terminate any state of emergency declared by the President. Retained, almost in its entirety, was the infamous Section 5(b) which classified the citizens of the United States as enemies of their government. The Trading With the Enemy Act has now been duly codified, and is now a permanent part of the U.S. Federal Code. And the American people have permanently been classified as enemies of their federal government.
Order the book: Whatever Happened to America?
© 2004 Jon C. Ryter – All Rights Reserved
October 19th, 2013 by olddog
By Mac Slavo
“Economic martial law will be declared… restrictions will be set on the amounts, times and frequency of withdrawals.”Forecaster Gerald CelenteTrends Journal – Summer 2011
We hope you’re paying attention.
If there were ever a red flag warning about the economic and financial destruction to come, JP Morgan Chase Bank began flying it this morning.
In a shocking report from Infowars we learned that mega-behemoth Chase has issued letters to thousands of business customers indicating that they will no longer be allowing international wire transfers or cash deposits, withdrawals in excess of a $50,000 monthly cap.
Chase Bank confirmed to Infowars that all business account holders were being subjected to these new regulations. Given that even a relatively small grocery store or restaurant is likely to turnover more than $50k a month in cash payments, this appears to be part of a wider move to shut down businesses who mainly deal in cash.
When Mike Adams of Natural News received the same letter he contacted Chase Bank and was able to confirm the new policies.
According to Chase, “everything is fine,” and customers need not worry.
Their response was that these changes were being implemented “to better serve our customers.” They did not explain how blocking all international wire transfers would “better serve” their customers, however.
Chase Bank specifically denied any knowledge of problems with cash on hand, or government debt or any such issue. They basically downplayed the entire issue and had no answers for why capital controls were suddenly being put into place.
This is nothing short of a capital control, which is an economic strategy designed to limit the transfer of money. It is a strategy implemented only during times of economic or financial distress, most often as a precursor to wealth seizures by the state.
Be warned, Chase bank is the first of likely many banks to begin the lock-down of the financial wealth of private individuals in the United States of America.
The new restrictions are particularly ironic because JP Morgan Chase (along with other large banking conglomerates) is a primary shareholder, and thus owner, of the Federal Reserve, which has been responsible for sending trillions of freshly printed dollars outside of the country over the last several years.
There is absolutely no legitimate reason for why one of the world’s biggest banks just restricted the outward flow of cash from domestic businesses to their international contacts, especially considering that we are repeatedly told we live in a globalized world where we need to learn to work with our foreign partners.
It makes no sense.
Unless, of course, you stop to consider that the United States is and has been on the brink of collapse, literally, for nearly a decade. This was first confirmed in January of 2011 in a letter to Congress by then Treasury Secretary Tim Geithner when he spoke of the U.S. debt ceiling.
Even a very short-term or limited default would have catastrophic economic consequences that would last for decades.
Most recently, the U.S. Treasury Department reiterated the seriousness of any misstep in our trillion-dollar debt spending:
In the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth
Think about the recent USDA letter to state food stamp directors, in which they noted that lack of funding would lead to a complete freeze on Supplemental Nutritional Assistance Program distributions to millions of people. Within 24 hours of such a move the entire country from coast-to-coast would be awash in rioting, looting and violence.
This is how close we are.
As we noted, Congress and the President “saved” us yet again in the 11th hour. But we are only pushing out the timeline on the inevitable.
The government knows this – as evidenced by the warnings of the Treasury Department.
The mega-banks know this as well.
And several years ago trend forecaster Gerald Celente warned that this is exactly how it would happen and it would come on the heels of a rogue terror attack that may involve direct targeting of the U.S. populace through violence, or cyber attacks that attack our banking system or take down the U.S. power grid:
Bank holidays will be called, the US and other fragile economies will crumble, gold and silver will soar, and already-troubled currencies will crash. Economic martial law will be declared. Introduced as a temporary measure, once in place it will remain in place (like the curfews and draconian security precautions installed by despots and dictators everywhere). Civil rights will be suspended and, particularly in America, Homeland Security, already intolerably intrusive, will achieve an Orwellian omnipresence.
With banks closed and economic martial law in place, restrictions will be set on the amounts, times and frequency of withdrawals. As we have cautioned before, it will be essential to have a stash of cash on hand. Even though governments will devalue their currencies, it will happen in stages.
Piece by piece, day by day, intrusion after intrusion, the end game should be coming into focus.
Take the following warning from Mike Adams seriously because ignoring it will have severe consequences for you and yours.
This is happening, folks! The capital controls begin on November 17th. The bank runs may follow soon thereafter. Chase Bank is now admitting that you cannot use your own money that you’ve deposited there.
This is clearly stemming from a government policy that is requiring banks to prevent cash from leaving the United States. Such policies are only put into place when a huge financial default event is expected.
It may not happen tomorrow, or next month, or next year. But the consumer paradigm in which we live, the relative peace and stability we experience… it will all come crashing down.
The time to insulate yourself is right here and now.
They are preparing for what they know is coming.
You should be too.
Yes, I’m aware this is about business accounts, and not private checking and savings accounts, but this is exactly how the Bankers operate. They cut little pieces out of your freedom one at a time until you have bled to death. Consider the history of Government/Banker relationships and their past actions before you go back to sleep. One day you will wake up with an empty account, with no recourse available. American’s must stop being apathetic and begin being proactive in securing their assets from future tyranny. Why wait for them to steal you blind?
Read the related article at http://anationbeguiled.wordpress.com/2013/10/19/it-
October 17th, 2013 by olddog
Those who bank with JP Morgan Chase are nuts to keep their deposits there. And so the unwinding of the banking system begins (publicly – it began privately long ago). Marilyn Barnewall
By Mike Adams,
(NaturalNews) I admit that when I saw today's breaking news on InfoWars.com about Chase Bank limiting cash withdrawals and banning international wire transfers, I was skeptical. Many readers didn't believe it, either. So just to check it out, I called my own accounting team to ask if we had received a similar letter from Chase, announcing that no international wire transfers would be allowed after Nov. 17th.
Sure enough, we were sent the same letter! I've posted a JPG image of the letter below so you can read it for yourself.
Or Click here to see the hi-res scan of this letter. This is the letter that we received directly from Chase. This is not secondhand information.
The letter clearly states that beginning November 17:
• All international wire transfers will be disallowed.
• All cash activity, including cash withdrawals and deposits, will be halted at "$50,000 per statement cycle." How are businesses who deal with a lot of cash (such as restaurants) supposed to function under such restrictions?
Chase Bank representatives told Natural News "everything is fine"
We called and spoke with Chase Bank to ask why these capital controls were being implemented on November 17th.
Their response was that these changes were being implemented "to better serve our customers." They did not explain how blocking all international wire transfers would "better serve" their customers, however.
Chase Bank specifically denied any knowledge of problems with cash on hand, or government debt or any such issue. They basically downplayed the entire issue and had no answers for why capital controls were suddenly being put into place.
Dropping the hammer on capital controls
This is the beginning of the capital controls we've been warning about for years. Throughout history, when governments are on the brink of financial default, they begin limiting capital controls in exactly the way we are seeing here.
Following that, governments typically seize government pension funds, meaning the outright theft of pensions for cops, government workers, etc., is probably just around the corner.
Finally, the last act of desperation by governments facing financial default is to seize private funds from banks, Cyprus-style. The precedent for this has already been set in Cyprus, and when that happened, I was among many who openly predicted it would spread to the United States.
This is happening, folks! The capital controls begin on November 17th. The bank runs may follow soon thereafter. Chase Bank is now admitting that you cannot use your own money that you've deposited there.
This is clearly stemming from a government policy that is requiring banks to prevent cash from leaving the United States. Such policies are only put into place when a huge financial default event is expected.
More updates to follow. Stay tuned to Natural News for intelligent analysis of why this is happening. We are already receiving word that this may have something to do with the "Dodd-Frank Wall Street Reform and Consumer Protection Act" and we are looking into it further.
Here's the letter we received:
Watch and see if this does not spread to all banks and credit unions before the end of 2013. Please wake up to the fact that, WE DO NOT HAVE ANY PROTECTION FROM OUR GOVERNMENT AND THEY ONLY WORK FOR THE INTERNATIONAL INVESTMENT BANKING CARTEL, and you can take THAT to the bank! AMERICA IS GOING BELLY UP within months, AND WE CANNOT STOP IT. Send this notice to all your contacts. CONVERT YOUR LIQUID ASSETS TO GOLD AND SLVER NOW! And always remember, if you can’t touch it, you don’t own it.
October 16th, 2013 by olddog
By Paul Craig Roberts
In less than 2 days, if the Treasury secretary can be believed, the Treasury will not have enough money to pay all its bills and will have to prioritize. This doesn’t mean default, as interest on Treasury bonds, notes, and bills will be right up there with the military and NSA. If Washington defaults on its bonds, Washington’s power will be gone with the wind regardless of whether the Treasury pays the military.
Whatever the outcome, Washington has already cooked its goose. Washington’s prestige and credibility have been hammered.
China, Washington’s largest foreign creditor, has responded to Washington’s inability to govern itself with a call for a de-Americanized world. The state news agency, speaking for the Chinese government, said that the “days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place.”
China does not mean by “a new world order” the conspiratorial concept popular on the American right-wing. What the Chinese government means is a departure from the American world order based on the US dollar as world reserve currency and US financial imperialism.
China has clearly had enough of Washington’s hubris, arrogance, and irresponsibility as the lack of diplomatic language makes clear: “Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas.” In addition Washington has provoked “regional tensions amid territorial disputes, and waged unwarranted wars under the cover of outright lies.”
China announced that it has discounted the value of US Treasuries held as collateral against futures trades, and China and the European Central Bank have arranged a currency swap in preparation of a US default.
The head of the IMF declared on NBC that Washington must honor its signature and uphold its financial promises.
Clearly, the fact that the “superpower” is less than 48 hours away from being unable to finance its red ink has made the world nervous of American financial leadership.
I believe that at the last minute the crisis will be resolved and, if not, that neither the Federal Reserve nor the White House will permit a default on public debt. Either the Fed will extend a loan to the Treasury or Obama will implement one of the presidential directives put on the books by George W. Bush. Nevertheless, the government’s shutdown and the specter of a Washington default have made a deep impression on the world. Washington’s power has been diminished permanently.
Washington’s economic embarrassment came close on the heels of being exposed as a liar and blocked from attacking Syria. Neither the American people, nor the UN, nor the British Parliament, nor NATO, nor the Russian government would tolerate another Washington act of naked aggression.
With comeuppance following comeuppance, the diminished superpower will be showing less arrogance in the future.
Now that the rest of the world has stood up to Washington, the American people need to stand up to the executive branch, take back their civil liberties, close down the police state, break up the media conglomerates and reestablish an independent press.
SEND THEM BACK TO KENYA