Categories » ‘Debt Bubble’
July 31st, 2015 by olddog
Lies, Damned Lies, and Forensic History
As regular consumers of alternative media have likely noticed, China’s voracious appetite for gold has been reported on ad nauseam in the wake of the 2008 Depression. Endless geopolitical and economic analysts have mused about the implications of Chinese gold accumulation, with most concluding (perhaps prematurely) that some form of gold-backed Yuan is on the horizon. Some extend this scenario further, optimistically declaring that the BRICS NDB (New Development Bank) and AIIB (Asian Infrastructure Investment Bank), led by China, will usher in a “New Golden Era” of progress and prosperity, spelling the end of the Western model of Central Banking tyranny.
The reason for this transfer of precious metals from West to East by the Anglo-American Establishment, these pundits prognosticate, is a simple and tragic combination of incompetence and malfeasance. The aged and corrupt West must end, and in the wake of its destruction, the Phoenix of the East must rise.
Does this narrative, however, have any basis in reality when viewed within the context of history? How have institutions traditionally defined as “Globalists” participated in satiating China’s gold fever? Is the hand of the Red Shield, infamously and intimately involved in the metals market for over 200 years, at work, even in the East?
And what, ultimately, do the answers to these questions spell for the “BRICS Saviour” meme?
To begin answering these questions, we must analyze the history of the London Bullion Market Association (LBMA) and the ignominious “Precious Metals Fix” that makes it all possible.
The (Global) Fix Is In
In 2010, the alternative finance community was set ablaze by the revelations of bullion trader turned whistleblower Andrew MacGuire, contending that JPMorgan and HSBC, operating as agents for the Federal Reserve, had suppressed the price of precious metals in an effort to silence the “Canary in the Coal Mine” amidst unprecedented money printing. By using managed selloffs via algorithmic trading bots, bullion banks drove down the price of “electronic/paper” metals certificates at the COMEX, effectively capping their price and ultimately driving them down to new 5-year lows.
The Commodities Futures Trading Commission (CFTC) deemed MacGuire’s claims credible enough to warrant further investigation; led by Bart Chilton, the CFTC’s probe into silver price manipulation ended in September of 2013 with the stunning declaration that no illegal activity had occurred:
Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets. – CFTC Statement
What many fail to realize is that the CFTC’s conclusion is technically correct. JPMorgan and HSBC were not acting in violation of any legal structure; they were, in fact, merely implementing the dictates of the long-standing LBMA Metals Fix:
Already we can identify the hand of the Anglo-American Establishment at work by way of the East India Company. The LBMA’s commentary on the nearly global “Silver Standard” of the 17th and 18th Century is not without consequence; the British Empire’s domination of the gold market of the era made subjugation of nations like China and India, rich in silver wealth, notoriously difficult to colonize.
The Opium Wars changed this nearly overnight. Beyond the engineered addiction and mercantile foothold the opium trade gave the East India Company in China, it also made way for the wholesale looting of China’s silver wealth:
From China, the Company bought tea, silk and porcelain. The Chinese wanted silver in return. Over the next 100 years tea became a very popular drink in England, and there was a fear that too much silver was leaving the country to pay for it. To stop this happening, the Company became involved in a triangular trade by smuggling opium (a highly addictive and illegal drug) from India into China.
The Company grew opium in India. They were looking for something that the Chinese would accept instead of silver, to pay for the goods they bought at Canton. Opium was a valued medicine which could deaden pain, assist sleep and reduce stress. But it was also seriously addictive and millions Chinese became dependent on the drug. – British Library
With China gutted of her material wealth, the Chinese silver standard came to an end in November of 1935, a mere decade before the implementation of the first truly “Global Gold Standard,” the Bretton Woods agreement.
The path was set for a worldwide metals price-fixing mechanism, and the LBMA was more than happy to provide. Front-running the Bretton Woods agreement by decades, the LBMA’s own gold fix – run by N.M. Rothschild – was officially established in 1919:
By the LBMA’s own admission, the Rothschilds maintain this price fixing mechanism to the present, and seemingly, the sole beneficiary of their recent price suppressing actions is none other than China, the very country looted of monetary metals a century ago. Is this a rare act of benevolence from the Rothschild family, or do they have big plans for the East’s new-found wealth in the coming World Order?
The British analogue to the Council on Foreign Relations, Chatham House, seems to suggest the latter.
Chatham House Rule and the Gold-Backed SDR
Established in the wake of World War I at the Paris Peace Conference, the Royal Institute of International Affairs was created. Fulfilling the dream of the Last Will and Testament of Cecil Rhodes, the RIIA also birthed its more widely known American outpost, the Council on Foreign Relations. Its headquarters, Chatham House, have become the RIIA’s colloquial moniker.
As what many would contend is the world’s premier “Think Tank,” Chatham House has been far from bashful in exploring a wide range of topics, and in the wake of the “Great Recession,” gold and the IMF’s “Special Drawing Rights” (SDRs) have been chief among them. While national Central Bankers like Ben Bernanke have been vocal in their opposition towards a remonetization of gold, the supranational level represented by groups like the IMF, Bank for International Settlements, the CFR, and Chatham House have been far more accommodating towards the idea of a return to a “partial gold standard.” Chatham House has gone so far as to create the “Chatham House Gold Taskforce” designed explicitly to examine gold’s role in a “multipolar World Order.”
This task force has yielded a number of fascinating forecasts. Take, for example, these 2011 comments by Lord Meghnad Desai, the Indian-born, British-naturalized member of the House of Lords and Chatham House member in a paper entitled, “Gold, the SDR, and Other Matters.” Desai remarks:
Far from challenging gold’s role as a monetary metal, Chatham House is recommending the exact opposite: Nothing less than a gold-backed SDR to take the place of the dollar as World Reserve Currency, with calls for the IMF to make legal the monetization of gold. All this coming from a man who is a Professor at the Keynesian London School of Economics, lecturing chiefly on econometrics and Marxian Economics. Quite the curious blend of ideology, no? Desai’s commentary is far from the only (seemingly) pro-precious metal rhetoric born of the “Chatham House Gold Taskforce.” Also included in the report were the writings of one Catherine Schneck of the University of Glasgow, entitled, “Adding Gold to the Valuation of the SDR,” directly echoing Baron Desai’s recommendation:
Schneck, perhaps directly referring to Chinese gold acquisition, makes specific note of the RMB’s current exclusion from the SDR in the paper’s introduction. The inclusion of the RMB in the article also seems to imply that “reducing the USD weighting” as called for in bullet point 3 could indeed be “in favour” of the RMB in the future, overtly stating that the Euro, Pound, and Yen are unfit for the task:
Allowing the IMF to issue more SDRs than they have gold hearkens back to the era of bank-issued Gold Certificates and their eventual monetary debasement; not a new scheme by any means. Nor are “residual” gold claims, which were commonplace during the Bretton Woods era. The last statement, “not include any right to sell SDR for gold,” would effectively ensure that gold could never be redeemed by “citizens” from banks, assuring gold coinage would never actually circulate.
A pseudo-gold standard if there ever was one.
The Chatham House Gold Taskforce’s premier publication, “Gold and the International Monetary System,” maintains the more typical Newspeak of Globalist documents with its somewhat reserved analysis; its most revealing passages, however, greatly reinforce the thesis already outlined herein.
The document reiterates the “rising China” narrative, noting that China’s recent advancements in the form of the recently-launched Shanghai Gold and Silver Exchange are a “small step” in subverting the dollar as the World Reserve Currency:
Ultimately, the Chatham House Gold Taskforce concludes that, while the RMB is a strong contender for reserve currency status, it still lacks one major prerequisite for the role – Inclusion in the IMF’s SDR basket:
Chatham House also seems to advocate a digital, cryptographic version of gold as opposed to physical notes. Perhaps as a direct response to the rise of cryptocurrencies like Bitcoin and BitGold, perhaps as the implementation of a “One World” digital currency as foretold by Nicholas Rockefeller, Chatham House devotes an entire section of its policy paper examining “digital gold.”
So it seems that the Anglo-American Establishment has lofty aspirations for China’s gold hoard and the RMB after all. Regardless of the manner by which China’s reunion with precious metals has manifested, however, this Globalist plot coming to fruition is still dependent upon Chinese participation.
Is there any evidence to suggest that China desires inclusion into the SDR basket? Would they allow the West to use their gold as collateral against the SDR (or something akin to it) as a reserve currency as opposed to the Yuan?
Enter stage East.
Crouching PBOC, Hidden Bank for International Settlements
Meet the latest actor in our twisted drama, Zhou Xiaochuan:
A Globalist by any objective metric, Xiaochuan is the head honcho at the People’s Bank of China, effectively the Janet Yellen of Eastasia. Readers, look into the eyes of this man. If anyone were to lead the world’s return to “sound money,” a BRICS without usury, and a gold-backed Yuan utopia of gold-plated puppies and kittens, by necessity, it would have to be China’s most powerful Central Banker.
Think he can pull it off?
Unfortunately for those still steeped in the milieu of the “BRICS Saviour Paradigm,” I don’t think he particularly wants to. He probably never has, as long before Xiaochuan began China’s purchase of Rothschild “fire sale” gold via the LBMA, he joined the Board of Directors of the Bank for International Settlements.
For readers not yet aware of the specific role the BIS has to play in the “Rings Within Rings” structure of the Anglo-American Establishment, it is referred to by Georgetown Professor, Globalist insider, and whistleblower Carroll Quigley as the “apex” of the “powers of financial capitalism.”
The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.
The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank…sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world. Professor Carroll Quigley, Tragedy and Hope
It is to this “apex” which Xiaochuan counts himself as a proud member of, and it is via this “apex” which he published his official position on Chinese precious metals, the future of the Yuan, and the SDR. The title of this BIS paper? “Reform The International Monetary System,” and its vision for the future isvirtually identical to that of Chatham House and the Anglo-American Establishment.
Xiaochuan makes mention of the Silver and Gold Standards of the past, right before discussing the “creative reform” necessary to save the global monetary system.
If the Yuan is to become a gold-backed currency (let alone the World Reserve Currency), it will not be accomplished by the desires of the People’s Bank of China. It is not the RMB that Xiaochuan applies these grandiose aspirations to, but the IMF and its Special Drawing Right:
The PBOC’s recommendation for the SDR as a supra-national reserve currency
Presumably, a world in which the SDR is a “super-sovereign reserve currency” would also include the Yuan in the SDR currency basket. At least, it will if Xiaochuan and Chatham House have anything to say about it. And of all those shiny kilo bars of gold and silver recently re-homed to Shanghai?
Zhou would have them priced in SDRs in international trade. It seems the PBOC would see the Shanghai Gold Exchange as a mere clearing house as opposed to a physical exchange devoted to pricing outside the LBMA fix.
Xiaochuan’s damning statements as head of the PBOC and BIS Board Member are not his first documented foray into international financial debauchery. Precious metals researcher and forensic historian Charles Savoie contends that Zhou Xiaochuan had participated in the wholesale liquidation of “paper” silver contracts at the behest of the LBMA. If true, this would have effectively lowered the price of silver from 2000-2004 in favor of the COMEX pricing mechanism.
The Gold Anti-Trust Action Committee (GATA) pressed the LBMA on potential silver price manipulation via Chinese silver liquidation, much to the chagrin of Jeffrey Christian of the CPM Group, who referred to China’s paper silver dumping as a “myth.” A masterful PR move in providing an alibi of sorts for Xiaochuan’s silver manipulation, as the CPM Group is a 1986 spin-off of none other than the criminal banking syndicate known as Goldman Sachs.
The same Goldman Sachs that, in 2003, coined the term BRICS and “forecast” the rise of Brazil, Russia, India, China, and South Africa in a paper entitled, “Dreaming With BRICs: The Path to 2050.” Bear in mind, this is a full four years before the BRICs even existed.
What incredible foresight the analysts at Goldman have! Or perhaps it’s insider knowledge? Maybe even assistance in drafting the BRICs “vision?” Whatever the case, it is this “BRICS Dream,” the dream of Goldman Sachs, that the United Nations Conference on Trade and Development reference when calling on the BRICS bank to fund “sustainable development” projects throughout Asia:
Some, when faced with the evidence of widespread collusion between financial Elites of West and East, paraphrase a passage of Sun Tsu’s The Art of War – “Keep your friends close, your enemies closer,” and perhaps this is indeed the ultimate goal of the People’s Bank of China.
But a similar American saying also comes to mind: “Don’t let the fox inside the hen house.”
Has the fog before the eyes of Free Humanity begun to dissipate? Hopefully enough to realize that the BRICS “anti-hegemon” are no friends of human autonomy. In viewing the BRICS NDB’s recent appointments to upper management, the organization’s participants are barely distinguishable from World Bank and IMF rosters, and while the controlled demolition of China’s financial crisis just begins to emerge, so, too, will the pre-arranged monetary “solution” to the woes it shall create, as outlined throughout this article.
An end to the “Debt and Death” paradigm will not come from national, supranational, or hierarchical structures, but from those seeking Freedom themselves. Unparalleled advancements in decentralization of trade and manufacturing. Truly local agricultural independence. Open-source software, not to mention news. Modern pioneers in liberty are already making great strides in these and many other fields, and it is from these men and women which hope springs eternal.
Not Zhou Xiaochuan’s Globalist gold hoard and whatever “New World” monetary paradigm will be foist upon us in the wake of the next financial crisis.
Blogging under the pseudonym of Rusticus, the author and freedom activist operates a website tracing the machinations of the Anglo-American Establishment throughout history while simultaneously documenting the process of creating a truly off-grid homestead. (www.statelesshomesteading.com)
This article may be re-posted in full with attribution.
July 29th, 2015 by olddog
By Rory Hall
Earlier today I was speaking with Dave Kranzler and we fell into a discussion regarding the current state of gold and silver. This is how I described everything to Dave as we talked:
Beginning in December, as Dave pointed out in Is The Global Financial System On The Brink Of Collapse?something happened in the derivatives market and I believe something broke and there has been an ongoing smoldering fire just under the surface. The criminals at the too big to prosecute mafia organizations, formerly known as banks, have been doing their level best to keep the fire from coming to the surface. The desperate behavior by the Central Planners reeks of the unmistakable scent of fear. If you think the Wall Street criminals aren’t scared right now, then explain this:
I’ve never seen so many sophisticated Wall Street’ers this scared in my entire career. – This comment comes from a very well-connected Wall Street/DC insider and is in reference to how illiquid the bond markets have become –InvestmentResearchDynamics
Subsequent to whatever it was that blew up behind the scenes in December, a smallish bank in Austria blew up and filed for bankruptcy. Approximately two weeks later, a bank in Germany began having problems due to the derivatives associated with the Austrian bank.
In April we learn, by way of Mr. Steve St. Angelo of the SRSRocco Report, the gold and silver miners are beginning to have serious cash flow problems and output is slowing down. We also learned, from Mr. Jeff Brown when we interviewed him on Shadow of Truth, that China had been removing silver ore directly from the miners. We believe this was to supplement their solar program which requires approximately 90% of the silver that China mines internally; leaving them virtually nothing to create silver bullion coins, medallions, silver bars or ingots for investment purposes. We also learned that India is also following the same line as China and has undertaken a massive solar energy program for their country. Currently, we do not have the information regarding how much silver India is pulling from the market but we do know their silver bullion imports have exploded in 2015.
On July 5, the Prime Minister of Greece, Alexis Tsipras, decides to hold a referendum and allow the people of Greece to decide if they want to stay in the EuroZone and continue using the Euro as their currency. The Syriza Party, of which Mr Tsipras is a member, was elected with 35% majority, for the specific purpose of ending of austerity. As many people know, Greece has experienced enormous economic problems since joining the EuroZone and has taken on approximately $350 billion worth of debt from the IMF. The people of Greece voted, by a margin of 61% to 39%, to leave the EU and stop using the Euro. The Prime Minister responded by telling the Greek people, they would NOT be leaving the EuroZone and would in fact be taking on more debt from the IMF and would continue using the Euro!! The Greeks responded accordingly and have been protesting, rioting and various other nasty things since this happened. I don’t blame them one bit.
The second week of July 2015 the US Mint sells completely out of American Silver Eagles. This was unannounced, no forewarning was given at all. Usually if supplies become tight the Mint, in the past, has moved to allocated (read rationed) sales to the wholesalers. Not this time. The Mint opened their doors (figuratively) for business and before lunch had announced they were sold out and promptly closed their doors!
The following week China announces, for the first time in five years, their current Official gold holdings. The increase was greeted with little enthusiasm as no one actually believed the amount announced. Most analysts believe the amount of gold held by China is much higher than they are willing to share with the world.
Then a very curious thing happened. With all of the bullet points above as a back drop, four days after China makes their announcement of current gold holdings, someone or something triggered a massive selloff of gold futures. 716,000 ounces of gold, approximately 3% of annual global gold mining production, was sold in approximately 1 minute’s time. WOW!!! Why would this happen at this time unless something was very, very wrong? China just announced they had increased their holdings, the global economy is in trouble and someone decides that now is the opportune time to unload 3% of global gold in 1 minute!! Does that make sense to you? Does that sound like the act of a desperate, trapped rat? It does to me.
It seems like something else other than a derivatives event happened in December 2014 which has broken in the gold and silver markets. It seems like something unprecedented is about to make a grand entrance. I am not 100% sure, but I know this: if you don’t have several months worth of cash, food, water and security on hand you better make a move and you better make it quick. Fall is coming, and there have been way too many people saying that fall of 2015 something is going to change; the picture seems pretty clear….
July 28th, 2015 by olddog
By Ron Paul
The drama over Greece’s financial crisis continues to dominate the headlines. As this column is being written, a deal may have been reached providing Greece with yet another bailout if the Greek government adopts new “austerity” measures. The deal will allow all sides to brag about how they came together to save the Greek economy and the European Monetary Union. However, this deal is merely a Band-Aid, not a permanent fix to Greece’s problems. So another crisis is inevitable.
The Greek crisis provides a look into what awaits us unless we stop overspending on warfare and welfare and restore a sound monetary system. While most commentators have focused on Greece’s welfare state, much of Greece’s deficit was caused by excessive military spending. Even as its economy collapses and the government makes (minor) cuts in welfare spending, Greece’s military budget remains among the largest in the European Union.
Despite all the hand-wringing over how the phony sequestration cuts have weakened America’s defenses, the United States military budget remains larger than the combined budgets of the world’s next 15 highest spending military’s. Little, if any, of the military budget is spent defending the American people from foreign threats. Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe. America will never get its fiscal house in order until we change our foreign policy and stop wasting trillions on unnecessary and unconstitutional wars.
Excessive military spending is not the sole cause of America’s problems. Like Greece, America suffers from excessive welfare and entitlement spending. Reducing military spending and corporate welfare will allow the government to transition away from the welfare state without hurting those dependent on government programs. Supporting an orderly transition away from the welfare state should not be confused with denying the need to reduce welfare and entitlement spending.
One reason Greece has been forced to seek bailouts from its EU partners is that Greece ceded control over its currency when it joined the European Union. In contrast, the dollar’s status as the world’s reserve currency is the main reason the US has been able to run up huge deficits without suffering a major economic crisis. The need for the Federal Reserve to monetize ever-increasing levels of government spending will eventually create hyperinflation, which will lead to increasing threats to the dollar’s status. China and Russia are already moving away from using the dollar in international transactions. It is only a matter of time before more countries challenge the dollar’s reserve currency status, and, when this happens, a Greece-style catastrophe may be unavoidable.
Despite the clear dangers of staying on our recent course, Congress continues to increase spending. The only real debate between the two parties is over whether we should spend more on welfare or warfare. It is easy to blame the politicians for our current dilemma but the politicians are responding to demands from the people for greater spending. Too many Americans believe they have a moral right to government support. This entitlement mentality is just as common, if not more so, among the corporate welfare queens of the militarily-industrial complex, the big banks and the crony capitalists as it is among lower-income Americans.
Congress will only reverse course when a critical mass of people reject the entitlement mentality and understand that the government is incapable of running the world, running our lives and running the economy. Therefore, those of us who know the truth must spread the ideas of, and grow the movement for, limited government, free markets, sound money and peace.
This article provided courtesy of the Ron Paul Institute for Peace and Prosperity.
How many of you remember my past warning about building a one hundred million re-educated people force as the only possible way to defeat this foreign owned imposter government we live under. Are you still ignorant of the truth to consider it treason to survive? TAKE THIS TO THE BANK FOLKS, EITHER YOU PARTICIPATE IN RE-EDUCATING EVERY ONE YOU CAN, OR THE REST OF YOUR SHORT LIFE WILL BE HELL ON EARTH!
July 20th, 2015 by olddog
By Joshua Krause
As America continues to descend into a vicious police state, many have wondered how it all came to this. The easiest answer to that question, is that we let it happen. No matter how brutal a regime may be, tyrants never come to power unless they gain the approval, or at least the indifferent consent of their people.
So the real question is, how come so many people seem absolutely complacent in the face of our crumbling cultural values, and the steady march of tyranny? Even worse, how can so many people revel in it? It seems like the number of people who truly value freedom are severely outnumbered by idiots and power tripping busybodies. Granted, the number of people who want to be free has grown in recent years, but they’re still few and far between when compared to the glut of grovelling masses that we share the world with.
Here’s the awful answer to that question, and the dirty truth that most people can’t bring themselves to admit. Most people love freedom, but only as an idea. They like the idea that they can do whatever they want, they admire the archetype of the rugged individualist, and everyone loves underdogs and rebels. In other words, people love the banners and symbols of freedom, but do they love freedom in practice?
I would argue that no, many of them don’t. As strange as it may sound, most people really struggle with having freedom. Let me provide an example, of which there are many in the field of marketing.
In the year 2000, two psychologists conducted a study on how the number of choices we have affects our behavior. They went to a supermarket and displayed 24 different gourmet jams on a table, and provided $1 coupons to see how much interest it garnered. They did the same thing the next day, but instead of 24 jams, there were only 6. The large display attracted much more interest, but the small display generated 10 times as many sales.
Maybe you think that study is inconsequential, and I wouldn’t blame you for thinking that, but let me share another case that will clarify my point. One of the psychologists who conducted that study, did another study on the differences between end-of-life care in the United States and France. She interviewed parents in both countries who had children on life support. In France, the doctor makes the decision as to whether or not a child is taken off life support, and in the United States it is the parents’ decision.
She talked to these parents a year after their children had died. The American parents were much more distraught over their decision to pull the plug. They still had nagging doubts about whether it was the right decision to make, and they felt like they had “executed” their children. The French parents, on the other hand, didn’t feel nearly as bad about the situation. They were well on their way to coping with the tragedy.
The point I’m trying to make here is that most people don’t like having choices, despite how much they’ll argue to the contrary. The more choices they’re given, the more likely they are to not like the choices they have or make. There’s much more doubt about whether or not that choice was correct, which leads to some pretty counter-intuitive conclusions. You can measure how free you are by the number of choices you have, and most people claim to love freedom, but in many cases those people are happier when they have fewer, or no choices. I think most people are simply happier without freedom, which is unfortunate and sad to say the least.
And that is why so many people accept tyranny, and why it will always be a problem for the human race. Because tyranny is so much easier than freedom. It is acquiescence. It means giving up. Tyranny is for quitters, and it amounts to handing over the reins to someone else. Most people are happier when they don’t have a choice, and they don’t even realize it.
However, there is another way to look at this odd human behavior.
There was another interesting fact that was gleaned from that study. The American parents who had chosen to take their sick children off life support, still regretted their decision. But when asked if they would have had it any other way, most of them claimed that they would have still made the same decision. Their decision made them unhappy, they knew it made them unhappy, but when they were asked if they would have rather let the doctor make that choice, they all said no.
And that right there is an example of people who truly want freedom, and not just the rosy idea of freedom. Those who truly want freedom are willing to accept the painful struggle of having a choice in life, and prefer it to the ignorant bliss that comes with not having a choice. However, it was only applicable to that particular situation. Would those same parents prefer to have a choice in every other aspect of their lives?
Unfortunately, that kind of person is a rare bird these days. If you could ask everyone in the world about their ethics and political beliefs, you’d probably find a wide variety, but most of them would have one thing in common. There’s always some part of their lives that they are willing to relinquish to a “higher authority,” and that part differs depending on their ideology. Most people don’t really want the full freedom package.
So it’s up to the rare few who really want freedom, without compromise, to make it a reality for themselves. The human race will always teeter on the edge of a tyrannical abyss, because there is an inherent weakness in our species. We’re happier when we don’t have so many choices (or freedom), which means that accepting tyranny is easy for us. It takes all our strength and moral fiber to rise above it, because we default towards tyranny (which is defined by the lack of choice in our lives) when we stop caring. It’s our natural inclination.
Just as human weakness and apathy leads to ignorance, violence, and hatred, it also destroys freedom. And the political and financial elitists of the world want you to give in to your weaknesses, and fall back on those baser instincts. They want you to give up. They want you to yearn for a simple life, where your choices are taken care of by someone else. They want you to be a slave.
But do you really want that? Do you have the strength to make that choice?
Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger.
This article may be re-posted in full with attribution.
July 18th, 2015 by olddog
By Eric Zuesse
http://www.esm.europa.eu/pdf/ESM Treaty consolidated 13-03-2014.pdf
That’s the treaty establishing (which was originally done in 2012) the ultimate lending-fund for what the EU now officially considers to be a permanent economic crisis in Europe, of member-nations that are experiencing “severe financing problems,” and that are therefore continually ripe for asset-stripping by aristocrats.
It’s called the European Stability Mechanism.
It’s anything but that. Here is what it actually does:
In other words: it establishes the European bureaucracy to serve global aristocrats, so as to help them asset-strip the European populations of corrupt member-nations. These bureaucrats get transferred back-and-forth between this bureaucracy and the big financial institutions (which also are dependent upon the same billionaires), so that these bureaucratic servants of the aristocracy can themselves gradually emerge as aristocrats, basically joining (now becoming principals, no longer merely agents of) the aristocratic financial war stripping the public.
Here are some key provisions of this “Treaty,” or Europe’s (or the EU’s) new constitution:
Article 34. Professional secrecy. The Members or former Members of the Board of Governors and of the Board of Directors and any other persons who work or have worked for or in connection with the ESM shall not disclose information that is subject to professional secrecy. They shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy.
Article 35. Immunities of persons. 1. In the interest of the ESM, the Chairperson of the Board of Governors, Governors, alternate Governors, Directors, alternate Directors, as well as the Managing Director and other staff members shall be immune from legal proceedings with respect to acts performed by them in their official capacity and shall enjoy inviolability in respect of their official papers and documents. …
Article 36. Exemption from taxation. 1. Within the scope of its official activities, the ESM, its assets, income, property and its operations and transactions authorised by this Treaty shall be exempt from all direct taxes. …
It’s a “Mechanism” (basically, a government) to transfer to the aristocracy the public’s assets, which are the lands and pensions and healthcare and educational systems, which, in a democracy, are supposed to serve the public, but which, in an aristocracy, serve instead the billionaires. In Europe, aristocrats are still in charge.
For example, one confidential document, dated 11 June 2013, “Real Estate Based Asset Financing for the Hellenic Republic,” has this:
“The Hellenic Republic [Greece] holds a diverse collection of assets, many of which have been scheduled for sale as part of its commitments under the Memorandum of Understanding (MoU) between the European Commission, the International Monetary Fund, the European Central Bank [the three members of ’The Troika’], and the Hellenic Republic. The sale of state-owned assets is a one-off opportunity to raise capital for the Hellenic Republic [to be able to repay banks, which had lent to Greece at an 18% interest rate — and thereby already enriched aristocrats heavily at the public’s expense — and now retrospectively taxpayer-guaranteeing those junk bonds, which global aristocrats had bought through those banks, granting these 18%-interest-rate junk bonds a retrospective AAA+ equivalent taxpayer-guaranteed status, courtesy of the politicians who were supposed to have represented the public].”
Furthermore: “This would help increase the privatisation proceeds beyond the amount currently forseen in the MoU. The majority of the real estate is undeveloped land, with substantial potential,” which “potential” won’t be enjoyed by the Greek public via a future improved Greek national economy and increased tax-income into the Greek Government, but instead enjoyed by global aristocrats, who will be buying that “undeveloped land” now, before its value soars — so that aristocrats will be in on the rip-offs of the Greek public, both coming, and, now, going.
The document specifies that, “A large part of the Greek real estate portfolio is suitable for tourist development, and given Greece’s climate and leisure and holiday potential this is the key source of potential value for investors.” In other words: whatever desperate Greeks will still remain in Greece after all of the stripping of the assets of the state, will now become available, at rock-bottom subsistence wages, to serve tourists, while the billionaire owners, throughout the world, will be reaping the profits, from that land (including the beaches and new hotels), and from their slaves there (serving those tourists). This is commonly called “the free market”: the more desperate and poor the public (the Greeks serving those tourists) are, the more profit the aristocracy (the owners of those resorts) will receive. After Barack Obama’s coup overthrew Ukraine’s democratically elected President in February 2014, Ukraine’s soaring debt is already being treated this way (being set up for privatization), even before Ukraine joins the EU (if it ever will). Similarly, privatization followed the junta that Obama protected (if he didn’t even place them into power) in Honduras in 2009.
There is nothing basically new about this. Benito Mussolini introduced privatization in Italy during the 1920s. Admiring his success with that wealth-transfer to aristocrats, Adolf Hitler then took it up in Germany during the 1930s.
Nowadays, this is called “libertarianism” in the United States, and “neoliberalism” in Europe. It’s just standard economic theory, being put into political practice. Another term for it is “austerity” (as the public calls it), or (to employ the economist’s euphemistic phrase for it) “fiscal consolidation.”
What Mussolini and Hitler started, is now being put into practice increasingly around the world, but it is no longer overtly called “fascism.” Mussolini and Hitler were defeated in WW II, and so the label “fascist” needed to be changed, but the aristocracy, which financed fascists’ rises, has by now emerged victorious (in the U.S. and not only in Europe), using deceit (including these new labels), instead of relying upon mere bombs and guns. There are enough fools (‘libertarians,’ or believers in ‘the free market,’ etc.), so that victory comes far cheaper via such deceits (mental coercion) than via violence (physical coercion — coercion against the body). (But, of course, war, too, can be profitable.)
The entirety of the ‘Greek bailouts’ is bailouts of the aristocracy, not of the public; it’s just like America’s ‘Wall Street bailouts,’ which bailed out the banksters instead of the cheated MBS investors and homeowners. The ‘Greek bailouts’ were actually loans, not ‘bailouts’ at all; and after the loans turned sour, taxpayers were forced to buy them from the aristocrats, who were the ultimate recipients of the actual bailouts. The lenders never bailed anybody out, but instead were bailed out by the public. However, in the Greek case, the people who are blamed are the Greek public, who are being stripped. After all, such blame-the-victim is the natural response, for believers in ‘the free market.’ But it would be like blaming the stripped pension funds, and the underwater homeowners, for having caused the bailouts of Wall Street. Calling them ‘bailouts of Greece’ is the reverse of what they actually are, which is an ongoing stripping of the Greek public. (Other European publics should be angry against the aristocrats they’re bailing out, not against the Greek public, who never benefited from those loans, and who aren’t the people that socked away some or all of those borrewed funds into Swiss or other accounts abroad.) It’s like blaming a raped woman for having been raped. That’s conservative, in the extreme. It’s fascist.
The EU’s dictatorship is by the aristocracy, against the public. It’s just like the U.S. dictatorship — competing parties, both or all of which represent the aristocracy, against the public; none representing the public, against the aristocracy. Conservatives support it, because they support the aristocracy. (A reader replied to this, “it isn’t just the doctrinaire conservatives that support the new aristocracy it is the majority of the public”; but the majority of the public is conservative, they’re devoted to myths; so, that’s not contradicting my assertion, it’s just restating the tragedy.)
This is why inequality is high, and soaring. Democracy is disappearing.
Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.
July 15th, 2015 by olddog
By Michael Rivero
In the good old days, after George Washington and the boys won the war to free us from the bank of England’s predatory and impoverishing practices, they set up a “revolutionary” economic system. The government created and issued all the public currency, spending it into circulation to purchase what the government needed, then after the currency circulated through society to fuel commerce, was taxed back to the government to balance the books.
Banks existed, of course. But they were kept off to one side, and use of the banks was optional for the people of the United States. It was possible to go through one’s entire life without dealing with a bank if one chose to do so.
This system not only reserved the choice whether to use the bank to the people, but it was a stable system, because as debt increased, the people could voluntarily choose to stop borrowing from the bank! That was one of the most important freedoms won during the revolution; the freedom to say “no” to the banks!
Then, in 1913, a corrupt Congress and a corrupt President changed the structure of the nation’s economy and stole your freedom to say “no”! The economic system was reverted to a mirror of that same system the nation fought a revolution to be free of. The power to issue money was taken away from the government and given to the bankers and from that day onward, ALL money in circulation was created as the result of a loan at interest from the bankers to the government, to business, and to the people. There is no exception. Every dollar paid in salary, spent to purchase food or gas, or paid in taxes, began as an interest bearing loan. There is no money in circulation in the United States that did not start out as a loan at interest from the bankers at the privately-owned Federal Reserve system.
From that moment on, the freedom of the people to refuse to borrow from the banks and to refuse to pay interest was stripped away. To participate in the commerce of the United States at all means being forced to use money loaned at interest, to the profit of the bankers and the impoverishment of the public. Your freedom to say “no” was stolen by Congress in 1913, without your permission and before you were born.
When you have lost the freedom to say “no”, when you have no choice but to pay a percentage of your earnings as interest to the bankers whether in private debt or taxes to cover the gargantuan debts by the US Government itself, you are a slave to the bankers. And because more money is owed to the bankers than actually exists, because of the interest charged on the loan that created the money, the debt-slavery is permanent! No matter how hard you work, no matter how much you sacrifice, the debt can never be paid off. The system is intentionally designed to trap the nation’s population permantly in unpayable debt, to make them slaves to that debt and to the bankers. This is the purpose behind the design of the Federal Reserve, the International Monitary Fund, the European Central Bank, and indeed every private central bank issuing the public currency as a loan at interest. This is why today every nation is drowning in created debt, and slaved to the private bankers. That is the reason for ever increasing taxes and decreasing benefits; to pay the bankers their unpayable interest on the public currency.
For that enslavement to succeed, your right and freedom to refuse that bank’s interest-bearing money must be stripped away. The government must force you to use that private central bank’s currency, loaned to you at interest, via the Legal Tender Laws. Therein lies your slave chains. You are ordered by the government, on pain of prison, to use the banker’s money, and to pay the interest charged by the bankers through your taxes.
Free people have the right to say “no.” Free people have a right to decide for themselves what medium of exchange they will use and to choose not to involve the bankers!
There is no freedom without the freedom to say “no.” Slaves cannot say “no” when ordered to surrender the products of their labor to their masters.
You are a slave.
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit.We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” — Woodrow Wilson 1919
Slavery exists only because the slaves have been taught to believe that slavery is the way the world is supposed to be. Beliefs are chains used to enslave free people. No chains of steel ever bound a human tighter than the chains made of the beliefs with which we are indoctrinated while young in the state schools and the churches.
Slaves used to be held prisoner by their belief in rule by divine right. Then the slaves regained their freedom when they realized that divine right is only an illusion created by the enslavers to trick the people into obedient servitude.
Then slaves were held prisoner by their belief in rule by chattel ownership of one’s body. Then the slaves regained their freedom when they realized that one person owning another is an illusion created by the enslavers to trick the people into obedient servitude.
Today the modern slaves (that is YOU) are held prisoner by their belief in compound interest; that they owe money that never existed to repay money created out of thin air. And you modern slaves will regain your freedoms when you realize that private central banking is just another illusion created by the enslavers to trick you into obedient servitude.
July 9th, 2015 by olddog
By Dave Kranzler
When a thoroughly corrupt government wants to try and hide something from the public, they exert an all-out effort to misdirect and cover-up. The financial markets are no different. It’s been obvious to anyone with one good eye and one brain cell that the puppet-masters behind the Wall Street/DC “curtain” have been propping up the Dow/S&P 500 and exerting forceful downward pressure on the price of gold and silver. Why gold and silver? Because gold and silver, for 5,000 years, have been the world’s “alarm system” alerting everyone when something is terribly wrong.
I remember vividly 2008. Many of you were not involved in the precious metals markets. Inexplicably, the manipulators smashed gold and silver down from their bull market highs in March 2008 very quickly. Silver was smashed down to $8 after hitting $21 in March. I remember staring at the futures screen wondering what would stop JPM from taking silver down to zero?
Shortly thereafter AIG and Goldman de facto collapsed and the rest is history, including the fact that former Goldman CEO, Hank Paulson, was “coincidentally” sitting in as Secretary of the Treasury and “coincidentally” came up with a plan for the taxpayers to bail out Goldman Sachs. Paulson, after all, was still sitting on about a quarter of a billion dollars worth of warrants on Goldman stock. This, after he was allowed to sell his GS stock worth $100s of millions on a tax-free basis. Just a little “benefit” the elitists bestow upon themselves when their brethren appoint them to a Government post.
Here’s a graph that shows the similarities between what happened to gold in a short period of time in 2008 and what has happened since peaking at $1900 in 2011:
It’s pretty easy to see the similar trading pattern with gold in 2008 compared to the period the summer of 2011 through the fall of 2012. The only difference is that there was a massive rise in the use of OTC precious metals derivatives that began a couple years ago which has enabled the Fed/Treasury/banks to keep a tight lid on the price of gold and silver and has enabled the criminals running this country to promote a “narrative” of economic recovery. It’s been nothing but one big lie.
Here’s what happened today with gold and silver:
How is it that day after day gold and silver get smashed when the NY Comex floor trading opens? Does it seem odd that, nearly everyday for the last 4+ years, that at 8:20 a.m. EST all of a sudden the world decides to unload paper gold and silver positions?
How is it at all possible that the price of gold and silver are collapsing like this when China has imported a record amount of gold in the first half of 2015? China and India combined are importing more gold than is being produced on a daily basis. India is importing by far a record amount of physical silver. These countries require the physical delivery of the metal they buy. It’s not good enough for the bullion banks to offer free vault storage in London or NYC. The misrepresentation of the true, intrinsic price of gold and silver by the NY and London paper markets is perhaps the greatest fraud in history.
The criminality operating in the U.S. financial markets has become all-pervasive. The markets just ooze with unfettered theft and wealth confiscation. The Government doesn’t just “look the other way.” The Government is the criminal cartel. Just look at where all the key appointees in a position to enforce the Rule of Law come from. The Treasury, Justice Department, the SEC – they all come from Wall Street firms or the law firms that make $100’s of millions defending Wall Street firms. It’s the American version of the Sicilian Mafia running our system!
It’s obvious what is happening to anyone who cares to look at the truth. This is the end of the end-game. Perhaps Greece has triggered it but it’s irrelevant. The entire world is over-bloated with catastrophically unpayable amounts of debt. The IMF has told us that Greece can’t possibly repay its debts. Huh? Does the IMF really think the United States can repay its debt load? Greece has $350 billion of sovereign-issued debt. The United States has over $18 trillion in “on-balance-sheet” sovereign-issued debt. It has at least $200 trillion of contingent sovereign-issued liabilities.
The only difference between Greece and the United States is that the United States can unilaterally print its own money. Literally in unlimited amounts. Ben Bernanke stated that fact in 2002: “But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.” LINK
The system is collapsing. It has been collapsing. I believe it’s quite possible that we are seeing the final stages of the end game. China’s stock market is down 30% since early June. The prices of oil and copper are crashing. As I wrote yesterday, oil and copper are the quintessential beacons of relative economic activity. If their prices are crashing, so is economic activity.
After trading in positive territory overnight, the S&P 500 suddenly plunged shortly before the NYSE opened:
China suspended trading in its stock market last night. But how is this any different from key HFT ECN’s “breaking” when the market is about to go off a cliff? As Zerohedge always tauntingly reports, the market “breaks:
” Broken Market Ignites Momentum
Coincidentally, the market never seems to “break” when it‘s spiking inexorably higher on some fictitiously prepared “good” economic report. Let’s see if the market “breaks” today in order to stop that waterfall plunge at the open.
Of course, if it doesn’t, are you prepared for the devastating consequences of a collapse?
You can read more from Dave Kranzler at his site
where this articlefirst appeared.
This article may be re-posted in full with attribution.
Are Big Banks Using Derivatives To Suppress Bullion Prices?
Paul Craig Roberts and Dave Kranzler
We have explained on a number of occasions how the Federal Reserves’ agents, the bullion banks (principally JPMorganChase, HSBC, and Scotia) sell uncovered shorts (“naked shorts”) on the Comex (gold futures market) in order to drive down an otherwise rising price of gold. By dumping so many uncovered short contracts into the futures market, an artificial increase in “paper gold” is created, and this increase in supply drives down the price.
This manipulation works because the hedge funds, the main purchasers of the short contracts, do not intend to take delivery of the gold represented by the contracts, settling instead in cash. This means that the banks who sold the uncovered contracts are never at risk from their inability to cover contracts in gold. At any given time, the amount of gold represented by the paper gold contracts (“open interest’) can exceed the actual amount of physical gold available for delivery, a situation that does not occur in other futures markets.
In other words, the gold and silver futures markets are not a place where people buy and sell gold and silver. These markets are places where people speculate on price direction and where hedge funds use gold futures to hedge other bets according to the various mathematical formulas that they use. The fact that bullion prices are determined in this paper, speculative market, and not in real physical markets where people sell and acquire physical bullion, is the reason the bullion banks can drive down the price of gold and silver even though the demand for the physical metal is rising.
For example last Tuesday the US Mint announced that it was sold out of the American Eagle one ounce silver coin. It is a contradiction of the law of supply and demand that demand is high, supply is low, and the price is falling. Such an economic anomaly can only be explained by manipulation of prices in a market where supply can be created by printing paper contracts.
Obviously fraud and price manipulation is at work, but no heads roll. The Federal Reserve and US Treasury support this fraud and manipulation, because the suppression of precious metal prices protects the value and status of the US dollar as the world’s reserve currency and prevents gold and silver from fulfilling their role as the transmission mechanism that warns of developing financial and economic troubles. The suppression of the rising gold price suppresses the warning signal and permits the continuation of financial market bubbles and Washington’s ability to impose sanctions on other world powers that are disadvantaged by not being a reserve currency.
It has come to our attention that over-the-counter (OTC) derivatives also play a role in price suppression and simultaneously serve to provide long positions for the bullion banks that disguise their manipulation of prices in the futures market.
OTC derivatives are privately structured contracts created by the secretive large banks. They are a paper, or derivative, form of an underlying financial instrument or commodity. Little is known about them. Brooksley Born, the head of the Commodity Futures Trading Corporation (CFTC) during the Clinton regime said, correctly, that the derivatives needed to be regulated. However, Federal Reserve Chairman Alan Greenspan, Treasury Secretary and Deputy Secretary Robert Rubin and Lawrence Summers, and Securities and Exchange Commission (SEC) chairman Arthur Levitt, all de facto agents of the big banks, convinced Congress to prevent the CFTC from regulating OTC derivatives.
The absence of regulation means that information is not available that would indicate the purposes for which the banks use these derivatives. When JPMorgan was investigated for its short silver position on Comex, the bank convinced the CFTC that its short position on Comex was a hedge against a long position via OTC derivatives. In other words, JPMorgan used its OTC derivatives to shield its attack on the silver price in the futures market.
During 2015 the attack on bullion prices has intensified, driving the prices lower than they have been for years. During the first quarter of this year there was a huge upward spike in the quantity of precious metal derivatives.
If these were long positions hedging the banks’ Comex shorts, why did the price of gold and silver decline?
More evidence of manipulation comes from the continuing fall in the prices of gold and silver as set in paper future markets, although demand for the physical metals continues to rise even to the point that the US Mint has run out of silver coins to sell. Uncertainties arising from the Greek No vote increase systemic uncertainty. The normal response would be rising, not falling, bullion prices.
The circumstantial evidence is that the unregulated OTC derivatives in gold and silver are not really hedges to short positions in Comex but are themselves structured as an additional attack on precious metal prices.
If this supposition is correct, it indicates that seven years of bailing out the big banks that control the Federal Reserve and US Treasury at the expense of the US economy has threatened the US dollar to the extent that the dollar must be protected at all cost, including US regulatory tolerance of illegal activity to suppress gold and silver prices.
Financial Intelligence Report: No Way!
Contributing Editor: Bob RinearI
I know it is “All Greece, all the time” but I need to go off on something else right now, because along with all the other things that bothers me, this rates at the top of some of my lists. I want to present an article by The Intercept that sums up the bulk of the issue.
After failing to criminally prosecute any of the financial firms responsible for the market collapse in 2008, former Attorney General Eric Holder is returning to Covington & Burling, a corporate law firm known for serving Wall Street clients.
The move completes one of the more troubling trips through the revolving door for a cabinet secretary. Holder worked at Covington from 2001 right up to being sworn in as attorney general in February 2009. And Covington literally kept an office empty for him, awaiting his return.
The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Lobbying records show that Wells Fargo is still a client of Covington. Covington recently represented Citigroup over a civil lawsuit relating to the bank’s role in Libor manipulation.
Covington was also deeply involved with a company known as MERS, which was later responsible for falsifying mortgage documents on an industrial scale. “Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JPMorgan Chase and several other large banks,” according to an investigation by Reuters.
The Department of Justice under Holder not only failed to pursue criminal prosecutions of the banks responsible for the mortgage meltdown, but in fact de-prioritized investigations of mortgage fraud, making it the “lowest-ranked criminal threat,” according to an inspector general report.
For insiders, the Holder decision to return to Covington was never a mystery. Timothy Hester, the chairman of Covington, told the National Law Journal that Holder’s return to the firm had been “a project” of his ever since Holder left to the join the administration in 2009. When the firm moved to a new building last year, it kept an 11th-story corner office reserved for Holder.
Holder’s critics charge that he made a career out of institutionalizing “Too Big to Prosecute” rules within the department. In 1999, as a deputy attorney general, Holder authored a memo arguing that officials should consider the “collateral consequences” when prosecuting corporate crimes. In 2012, Holder’s enforcement chief, Lanny Breuer, admitted during a speech to the New York City Bar Association that the department may go easy on certain corporate criminals if they believe prosecutions may disrupt financial markets or cause layoffs. “In some cases, the health of an industry or the markets is a real factor,” Breuer said.
Rather than face accountability for their failures, the incentive structure of modern Washington is designed to reward both men. Breuer left the department in 2013 to rejoin Covington. Holder is set to become among the highest-earning partners at the firm, with compensation in the seven or eight figures.
Okay, now the fact of the matter is that virtually every high ranking official ends up in a plush office job in some big corporation. That’s not news at all. But what truly drives me out of my head is this guy Holder, who didn’t make ONE, not ONE banker walk the plank for blowing up the financial system, heads right back to the Very bankers he protected and what does the Media have to say about it? NOT A WORD.
Now wait, because it gets better. (or worse, depending on your particular mood). Take a look at this line– The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Well, isn’t that interesting? JP Morgan and Citi have both been blatant manipulators of the precious metals markets; called out about it many times and not a word gets spoken.
Well I’ll “spoke” it. Holder is a criminal. He aided and abetted criminal activity while in office, and he’s going back to a law firm that has had criminal bankers as clients. Let’s talk JPM for a minute. Ted Butler has repeatedly sent proof to JPM and regulators about their holding illegal amounts of paper sales of silver. He’s never heard a peep in response. If Ted was wrong, wouldn’t they at least slap a slander suit on him? You bet they would.
Zero-hedge has put out some good work about Citi and JPM recently. In fact, based on the OCC’s derivative update, JPM had literally cornered the commodity derivatives complex, when from “just” $226 billion in total Commodity exposure, JPM’s notional soared by 1,690% in one quarter to $4 trillion, or about 96% of total. How on earth can that be legal?
But this is even more interesting to me…Citi’s “precious metals” derivative book, saw a 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!
Now add that up, with the savaging that gold and silver have been going through recently and what do you come away with? It is obvious that these two outfits are responsible for the utter insanity that is indeed the silver market especially. Right now it costs about 21 dollars an ounce to mine and refine silver. Yet on Tuesday morning they beat silver down by over 5% in one session, down to 14 bucks an ounce. In a free market, with no manipulation, could that even be possible??
ABSOLUTELY not. There is NO doubt what so ever that both of these situations are in direct response to the mess that is indeed Greece and the fears of a contagion spreading through the euro-zone. They simply do NOT want people trading paper dollars for gold and silver, or any true tangible commodity and they took over the market to make sure no one does.
Read that again so you truly understand the scope of the fraud and illegality of what we’re witness to. Citi and JPM together hold 90% of all commodity and precious metals derivatives, in the very quarter that Greece was about to stir up major fears of the Euro-zone imploding. So to keep anyone from trading out of Euro’s, or doing electronic swaps of Euro’s into gold or silver or copper holdings, they beat the snot out of all of it. You will indeed KEEP your worthless paper money, and they are making sure of it.
And Holder is going right back to the very outfit that worked with these criminals. How utterly fitting! A criminal, going back to serve criminals. It makes me sick.
Disclaimer!!!!! Must Read!!!
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June 25th, 2015 by olddog
Foundation of global government cemented with passage of secretive bill
June 24, 2015
One of the most devastating blows to US sovereignty since the country’s founding was dealt today as the Senate handed President Obama his Trans-Pacific Partnership victory.
Despite massive opposition from the American people, Tea Party Republicans and a majority of Democrats, Obama was granted fast-track authority by a 60-38 vote.
Sections of the TPP published by Wikileaks have revealed the treaty’s vast influence over multiple areas including individual rights, internet freedom and even the rule of law itself. Unelected corporate boards and the President can now wield unprecedented control over almost every aspect of human activity.
“If you read, write, publish, think, listen, dance, sing or invent; if you farm or consume food; if you’re ill now or might one day be ill, the TPP has you in its crosshairs,” Wikileaks’ Julian Assange wrote.
Secret TPP chapters regarding immigration also grant President Obama an even greater ability to erode the country’s Southern border.
“Obama will be able to finalize all three of the Obamatrade deals, without any Congressional input…” notes Breitbart.
The TPP, which covers 12 countries and more than 40% of the world’s economy, will place North America under the same global government structure as the European Union, where laws are increasingly crafted outside of public influence.
WAKE THE HELL UP AMERICA
The scumbags in congress/senate have just sold us out completely, and there is no possibility of recourse as there is no possibility of organizing a rebellion without secret communication. All of the brave men and women who have been warning you to take action will now be hunted down and disposed of. There is no active constitution or common law left, and the military has been sanitized of patriots. Even with my extraordinary vocabulary of foul verbal expressions I find myself unable to express how putrid this travesty of justice is. And the most horrible part of all this is the majority of Americans have not the courage to stand up and refuse to obey. America has just committed suicide with their complacency. They are just plain stupid, and congress/senate is full of the most degenerate sons of bitches on earth. I hope those bastards die of the most agonizing/painful disease known to humanity.
May 30th, 2015 by olddog
By James Holbrooks
On June 2 a federal judge will decide whether or not the 600-strong Mongols Motorcycle Club can continue to use their logo. Uncle Sam considers biker gangs to be criminal enterprises and wants to be able to go after them like they would any other. Patches are a big deal to clubs, and a win for the government would be a major blow to the Mongols. What’s more, a nasty precedent would be set. One the feds could use against other clubs in the future.
The Mongols are mounting a First Amendment defense, claiming a ruling against them would violate their right to free speech. They’re correct, of course, and in a world of absolute adherence to the Constitution the case would never go before a judge in the first place. But that’s not how the game is played. As we’ve seen time and time again, the nobility are more than willing to change the rules as they see fit.
If fact, in the realm of the government’s war on gangs, the tactic being employed against the Mongols isn’t even the most egregious, Constitutionally speaking. Take a look at what’s happening in Southeast Texas. Last week a Port Arthur teen—and alleged member of a street gang called Surenos 13—was sentenced to nearly a year in jail for violating something called a “gang injunction.” This is the first time the region has utilized this particular law enforcement tool and the teen is the first to be prosecuted under it.
Gang injunctions got their start in California in the 1980s. They were used to create so-called “safe zones” where gang members were forbidden from associating. The legal justification behind them is that gang activity constitutes a public nuisance and therefore violates the law. But these injunctions aren’t just about association. They can also prevent members from wearing certain colors or owning certain items or any number of other wholly arbitrary actions. Whatever law enforcement considers gang activity, essentially.
In the case of the Port Arthur teen, there was a grand total of 37 restrictions placed on him and eight other members of Surenos 13. Among them are bans on things such as staying out after 9:00 PM, possessing aerosol paint cans, and committing crimes. Yes, they actually made it illegal to commit crimes. The kid now in a cage was popped, in part, for the villainous offense of possessing a cell phone while operating a motor vehicle.
And therein lies the rub. Because it’s not illegal to have a phone in your pocket while driving down the road or to have a couple of cans of spray paint in your backpack or to do any of the other myriad activities these gang injunctions might happen to restrict. Well, crimes are illegal, I suppose. But that’s ridiculous on its face. Point is, under the Constitution we as free individuals are supposed to be left alone to do as we will, so long as we don’t harm others. Them’s the rules. Or so we were brought up to believe.
Actually, them’s more than the rules. The Constitution is supposed to tell us who we are. We’re supposed to tear up and grow warm with pride upon reading the words. We’re a great people, after all, born of a great yearning for freedom, and the words are the proof of it. And so on and so forth. Never mind the fact that no one alive today signed the thing and so the obligation to adhere to it doesn’t actually exist. If you choose to prescribe to the fabricated idea of what America is—and there are a great many of us who don’t—then everything, by necessity, hinges upon the Constitution.
So what does it say about us as a country when our political class continuously reinterprets its own founding document to suit the needs of the moment? More importantly, what does it say about us as a people who stand idly by as it happens? None of it…the wars of conquest abroad, the rising police state at home, the torture going on just about everywhere…technically, none of it is allowed to be happening. And yet here we find ourselves, caught between a Constitution-free zone and a free speech cage.
The First Amendment says we have the right to peacefully assemble. The Privileges and Immunities Clause of Article IV says we have the right to travel. They might as well tell us to go piss up a rope. Ask those nine members of Surenos 13 about it. Ask them about safe zones and curfews and restrictions on association. Or go ask the Mongols about patches and the meaning of symbols. While you’re at it, whip out the flag and see if you get any laughs. Because America as it stands today is a bad joke. And the Constitution is the punchline.
James Holbrooks is a professional writer and editor. You can find his work atHolbrooksWordsmithing.com where this article first appeared. Follow James on Twitter.
This article may be re-posted in full with attribution.
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May 28th, 2015 by olddog
By Martin Armstrong
I have been warning for some time that government was eyeing up pensions. The amount in private pension funds is about $19.4 trillion. The question that has been debated in secret behind the curtain is how to justify to the people taking that over. I have been warning that if this is seized by government, it will come after 2015 Just how that is to be accomplished was finally settled by the Supreme Court without any justification constitutionally.
The US Supreme Court ruled last week in the unanimous, 8-page decision in Tibble v. Edison holding that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly. That is simply astonishing since there is no constitutional requirement for even government to provide social benefits. The Supreme court held in HARRIS v. McRAE, 448 U.S. 297 (1980) it was explained that the constitution is negative not positive. There is no duty imposed upon the state to provide a program for that would convert the constitution from a negative restrain upon government to a positive obligation to provide for everyone.
If we take the fact that the constitution is NEGATIVE and was a restrain upon government, then this latest ruling is completely unfounded. Monday’s unanimous ruling sends a warning to employers that they now must improve their plans and it is now an obligation to project employees. This comes just in time for then the next step is government to seize private funds and prosecute employers who choose badly a fund manager. This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own. This creates a very gray area wide enough to justify public seizure of pension funds under management.
This ruling will have a dramatic impact upon investment management and we have already received calls asking about using our model for management purposes since it has one of the longest track records that can be verified in the industry. What this ruling imposes is a tremendous duty upon the plan fiduciary who must now back up his decision with proof. This may also have the impact of foreclosing new fund managers from entering the business since they will lack the track record.
Yet this decision is even deeper. It sets the stage to JUSTIFY government seizure of private pension funds to protect pensioners. When the economy turns down and things get messy, they are placing measures in place to eliminate money in and physical dimension, closing all tax loopholes, shutting down the world economy with FATCA, and preparing for the final straw of Economic Totalitarianism with the Supreme Court reversing its entire construction of the Constitution to impose a duty upon employers to ensure the 401K plans perform in a world where interest rates are going negative. You really cannot make up this level of insanity.
The message here is not that all 401(k)s are bad or too expensive. In fact, costs have fallen 30 percent over the past decade as more plan sponsors turn to low-cost passive investing options. But this can be highly dangerous for to lower costs they turn to government debt where there is no need for fund management decisions. Yes, when I did hedge fund management, the cost was 5% annually plus 20% performance. That cost went to staff around the world that had to monitor positions and the world economy on a 24 hours basis. You paid also NOT to trade for most losses took place when traders were bored are would trade to try to make money when there was nothing to be done. Our track record was the best ever in the industry with the lowest drawn down perhaps in fund management. But that risk reduction cost money.
Today, costs vary widely. Plans with more than $100 million in assets usually have total annual costs below 1% whereas the biggest plans usually are below 0.50%. In small plans, the costs can be as high as 2% today. The focus is now on cost – not performance.
Financial service companies can charge a range of management, administrative, marketing, distribution and record-keeping fees for 401(k) plans. Plan sponsors can assume the costs, but employees are paying at least 85% of all fees typically. It is true that most workers do not know they pay the bulk of the share of costs. A 2011 AARP survey found that 71% of retirement savers do not think they pay any investment fees at all. It is true that the fees make a huge difference in returns over time. However, this drive to lower costs has also lowered the quality of funds management.
The U.S. Department of Labor estimates that a 1% point difference on a current account balance of $25,000 will reduce total accumulations by 28% over 35 years, assuming average returns of 7% and no further contributions. The focus is all on these management fees without any consideration of the problem. Trying to manage money varies according to the size of the fund. The more you gather, often the lower the performance because the markets are not unlimited. You can pick up the phone and say “sell at the market” when you have a $100 million fund, you cannot do that with a $100 billion fund. So the management fee was also a means to reduce the number of clients and it was never a question of unlimited capacity to trade. The numbers on performance would decline with greater amounts of money under management for the manager lost flexibility.
The Supreme Court case clearly shows that lack of understanding of the industry yet the battle centered on the 401(k) plan’s use of retail-class mutual funds when less-expensive institutional shares were available. The difference between those classes typically is 25 basis points. This will now put pressure on large plans to cut costs further but will not have much impact on smaller plans. That is because big plans have the buying power to negotiate better deals but at the same time they are the easy target for lawyers making them much more attractive targets for litigation.
Cutting management fees to the bone may in fact set the stage for massive losses for many of the older better traders are now just resigning. The quality of the funds management is more likely than not going to decline noticeably.
Between the court ruling and the Obama administration’s push for stronger fiduciary rules send a strong message that government can much easier seize the pension fund management industry of course to “protect the consumer”.
Reprinted from Armstrong Economics.
May 1st, 2015 by olddog
How can there be any semblance of freedom when there are tanks in the streets, military encampments in cities, Blackhawk helicopters and armed drones patrolling overhead?
It was for this reason that those who established America vested control of the military in a civilian government, with a civilian commander-in-chief. They did not want a military government, ruled by force. Rather, they opted for a republic bound by the rule of law: the U.S. Constitution.
Unfortunately, with the Constitution under constant attack, the military’s power, influence and authority have grown dramatically. Even the Posse Comitatus Act of 1878, which makes it a crime for the government to use the military to carry out arrests, searches, seizure of evidence and other activities normally handled by a civilian police force, has been weakened by both Barack Obama and George W. Bush, who ushered in exemptions allowing troops to deploy domestically and arrest civilians in the wake of alleged terrorist acts.
Now we find ourselves struggling to retain some semblance of freedom in the face of police and law enforcement agencies that look and act like the military and have just as little regard for the Fourth Amendment, laws such as the NDAA that allow the military to arrest and indefinitely detain American citizens, and military drills that acclimate the American people to the sight of armored tanks in the streets, military encampments in cities, and combat aircraft patrolling overhead.
Making matters worse, we find out that the military plans to use southwestern states as staging grounds for guerilla warfare drills in which highly-trained military troops equipped with all manner of weapons turn American towns and cities in quasi-battlefields. Why? As they tell us, it’s so that special operations forces can get “realistic military training” in “hostile” territory.
They’ve even got a name for the exercise: Jade Helm 15.
Whether or not Americans have anything to fear from Jade Helm 15, a covert, multi-agency, multi-state, eight-week military training exercise set to take place this summer from July 15 through Sept. 15, remains to be seen.
Insisting that there’s nothing to be alarmed about, the Washington Post took great pains to point out that these military exercises on American soil are nothing new. For instance, there was Operation Bold Alligator, in which in which thousands of Marines and sailors carried out amphibious exercises against “insurgent” forces in Georgia and Florida. Operation Robin Sage had Green Beret soldiers engaging in guerrilla warfare in North Carolina. And Operation Derna Bridge sends Marine special forces into parts of South Carolina and the National Forest.
Yet if Americans are uneasy about this summer’s planned Jade Helm 15 military exercises, they have every right to be.
After all, haven’t we been urged time and time again to just “trust” the government to respect our rights and abide by the rule of law only to find that, in fact, our rights were being plundered and the Constitution disregarded at every turn?
Let’s assume, for the moment, that Jade Helm 15 is not a thinly veiled military plot to take over the country lifted straight out of director John Frankenheimer’s 1964 political thriller Seven Days in May, as some fear, but is merely a “routine” exercise for troops, albeit a blatantly intimidating flexing of the military’s muscles.
The problem arises when you start to add Jade Helm onto the list of other troubling developments that have taken place over the past 30 years or more: the expansion of the military industrial complex and its influence in Washington DC, the rampant surveillance, the corporate-funded elections and revolving door between lobbyists and elected officials, the militarized police, the loss of our freedoms, the injustice of the courts, the privatized prisons, the school lockdowns, the roadside strip searches, the military drills on domestic soil, the fusion centers and the simultaneous fusing of every branch of law enforcement (federal, state and local), the stockpiling of ammunition by various government agencies, the active shooter drills that are indistinguishable from actual crises, the economy flirting with near collapse, etc.
Suddenly, the overall picture seems that much more sinister. Clearly, as I point out in my new bookBattlefield America: The War on the American People, there’s a larger agenda at work here.
Seven years ago, the U.S. Army War College issued a report calling on the military to be prepared should they need to put down civil unrest within the country. Summarizing the report, investigative journalist Chris Hedges declared, “The military must be prepared, the document warned, for a ‘violent, strategic dislocation inside the United States,’ which could be provoked by ‘unforeseen economic collapse,’ ‘purposeful domestic resistance,’ ‘pervasive public health emergencies’ or ‘loss of functioning political and legal order.’ The ‘widespread civil violence,’ the document said, ‘would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.’”
At what point will all of the government’s carefully drawn plans for dealing with civil unrest, “homegrown” terrorism and targeting pre-crime become a unified blueprint for locking down the nation?
For instance, what’s the rationale behind turning government agencies into military outposts? There has been a notable buildup in recent years of SWAT teams within non-security-related federal agencies such as Department of Agriculture, the Railroad Retirement Board, the Tennessee Valley Authority, the Office of Personnel Management, the Consumer Product Safety Commission, the U.S. Fish and Wildlife Service and the Education Department. As of 2008, “73 federal law enforcement agencies… [employ] approximately 120,000 armed full-time on-duty officers with arrest authority.” Four-fifths of those officers are under the command of either the Department of Homeland Security (DHS) or the Department of Justice.
What’s with all of the government agencies stockpiling hollow point bullets? For example, why does the Department of Agriculture need .40 caliber semiautomatic submachine guns and 320,000 rounds of hollow point bullets? For that matter, why do its agents need ballistic vests and body armor?
Why does the Postal Service need “assorted small arms ammunition”? Why did the DHS purchase “1.6 billion rounds of hollow-point ammunition, along with 7,000 fully-automatic 5.56x45mm NATO ‘personal defense weapons’ plus a huge stash of 30-round high-capacity magazines”? That’s in addition to the FBI’s request for 100 million hollow-point rounds. The Department of Education, IRS, the Social Security Administration, and the National Oceanic and Atmospheric Administration, which oversees the National Weather Service, are also among the federal agencies which have taken to purchasing ammunition and weaponry in bulk.
Why is the federal government distributing obscene amounts of military equipment, weapons and ammunition to police departments around the country? And why is DHS acquiring more than 2,500 Mine-Resistant Armored Protection (MRAP) vehicles, only to pass them around to local police departments across the country? According to the New York Times:
[A]s President Obama ushers in the end of what he called America’s “long season of war,” the former tools of combat — M-16 rifles, grenade launchers, silencers and more — are ending up in local police departments, often with little public notice. During the Obama administration, according to Pentagon data, police departments have received tens of thousands of machine guns; nearly 200,000 ammunition magazines; thousands of pieces of camouflage and night-vision equipment; and hundreds of silencers, armored cars and aircraft. The equipment has been added to the armories of police departments that already look and act like military units.
Why is the military partnering with local police to conduct training drills around the country? And what exactly are they training for? In Richland, South Carolina, for instance, U.S. army special forces participated in joint and secretive exercises and training with local deputies. The public was disallowed from obtaining any information about the purpose of the drills, other than being told that they might be loud and to not be alarmed. The Army and DHS also carried out similar drills and maneuvers involving Black Hawk helicopters in Texas, Florida, and other locations throughout the U.S., ostensibly in order to provide local police with “realistic” urban training.
What is being done to protect the American populace from the threat of military arms and forces, including unarmed drones, being used against them? Policy analysts point to Directive No. 3025.18, “DefenseSupport of Civil Authorities” (issued on Dec. 29, 2010), as justification for the government’s use of military force to put down civil unrest within the United States.
Why is FEMA stockpiling massive quantities of emergency supplies? On January 10, 2014, FEMA made a statement enlisting the service of contractors who could “supply medical biohazard disposal capabilities and 40 yard dumpsters to 1,000 tent hospitals across the United States; all required on 24-48 hour notice.” This coincides with other medical requests seeking massive amounts of supplies, such as “31,000,000 flu vaccinations,” “100,000 each of winter shirts and pants and the same for summer” and other goods and services requests as well like tarps, manufactured housing units, and beverages. And why does the TSA need $21,000 worth of potassium chlorate, a chemical compound often used in explosives?
Why is the Pentagon continuing to purchase mass amounts of ammunition while at the same time preparing to destroy more than $1 billion worth of bullets and missiles that are still viable?
Moreover, what is really being done to hold the Pentagon accountable for its doctored ledgers, fraud, wasteand mismanagement, which has cost the taxpayer trillions of dollars? According to Reuters, “The Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China’s economic output.”
Given the similarities between the government’s Live Active Shooter Drill training exercises, carried out at schools, in shopping malls, and on public transit, which can and do fool law enforcement officials, students, teachers and bystanders into thinking it’s a real crisis, how much of what is being passed off as real is, in fact, being staged by DHS for the “benefit” of training law enforcement, leaving us none the wiser? These training exercises come complete with their own set of professionally trained Crisis Actors playing the parts of shooters, bystanders and victims in order to help schools and first responders create realistic drills, full-scale exercises, high-fidelity simulations, and interactive 3D films.
Given that Americans are 110 times more likely to die of foodborne illness than in a terrorist attack, why is the government spending trillions of dollars on “national security”? How exactly is the $75 billion given to various intelligence agencies annually to keep us “safe” being spent? And why is the DHS giving away millions of dollars’ worth of federal security grants to states that federal intelligence agencies ruled have “no specific foreign or domestic terrorism threat”?
Why is the government amassing names and information on Americans considered to be threats to the nation, and what criteria is the government using for this database? Keep in mind that this personal information is being acquired and kept without warrant or court order. It’s been suggested that in the event of nuclear war, the destruction of the U.S. Government, and the declaration of martial law, this Main Core database, which as of 2008 contained some 8 million names of Americans, would be used by military officials to locate and round up Americans seen as threats to national security, a program to be carried about by the Army and FEMA.
Taken individually, these questions are alarming enough. But put them together and they add up to the kind of trouble that the American founding fathers not only warned against but from which they fought to free themselves.
Indeed, when viewed collectively, they leave one wondering what exactly the U.S. government is preparing for and whether American citizens shouldn’t be preparing, as well, for that eventuality when our so-called “government of the people, by the people, for the people” is no longer answerable to “we the people.”
April 17th, 2015 by olddog
By Michael Snyder
Did you know that the number of publicly traded companies declaring bankruptcy has reached a five year high? And did you know that Chinese exports are absolutely collapsing and that Chinese economic growth in 2014 was the weakest in over 20 years? Even though things may seem to be okay on the surface for the global economy at the moment, that does not mean that big trouble is not percolating just under the surface. On Wednesday, investors cheered as stocks soared to new highs, but almost all of the economic news coming in from around the planet has been bad. The credit rating on Greek debt has been slashed again, global economic trade is really slowing down, and many of the exact same financial patterns that we saw just before the crash of 2008 are repeating once again. All of this reminds me of the months leading up to the implosion of Lehman Brothers. Most people were feeling really good about things, but huge trouble was brewing just underneath the surface. Finally, one day we learned that Lehman Brothers had “suddenly” collapsed, and then all hell broke loose.
If the economy is actually “getting better” like we are being told by the establishment media, then why are so many big companies declaring bankruptcy? According to CNBC, the number of publicly traded companies declaring bankruptcy has hit a five year high…
The number of bankruptcies among publicly traded U.S. companies has climbed to the highest first-quarter level for five years, according to a Reuters analysis of data from research firm bankruptcompanynews.com.
Plunging prices of crude oil and other commodities is one of the major reasons for the increased filings, and bankruptcy experts said a more aggressive stance by lenders may also be hurting some companies.
It is interesting to note that the price of oil is being named as one of the primary reasons why this is happening.
In an article entitled “Anyone That Believes That Collapsing Oil Prices Are Good For The Economy Is Crazy“, I warned about this. If the price of oil does not bounce back in a huge way, we are going to see a lot more companies go bankrupt, a lot more people are going to lose their jobs, and a lot more corporate debt is going to go bad.
And of course this oil crash has not just hurt the United States. All over the world, economic activity is being curtailed because of what has happened to the price of oil…
In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club.
Now that oil prices have dropped by half to $50 a barrel, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.
If oil and other commodity prices remain depressed, the trend will cut demand for everything from European government debt to U.S. real estate as producing nations seek to fill holes in their domestic budgets.
But it isn’t just oil. We appear to be moving into a time when things are slowing down all over the place.
In a recent article, Zero Hedge summarized some of the bad economic news that has come in just this week…
Mortgage Apps tumble, Empire Fed slumps, and now Industrial Production plunges… Against expectations of a 0.3% drop MoM, US Factory Output was twice as bad at -0.6% – the worst since August 2012 (and lamost worst since June 2009). This is the 4th miss in a row.
If we are indeed heading into another economic downturn, that is really bad news, because at the moment we are in far worse shape than we were just prior to the last recession.
To help illustrate this, I want to share with you a couple of charts.
This first chart comes from the Federal Reserve Bank of St. Louis, and it shows that after you adjust for inflation, median income for the middle class is the lowest that it has been in decades…
This next chart shows that median net worth for the middle class is also the lowest that it has been in decades after you adjust for inflation…
The middle class is being systematically destroyed. For much more on this, please see this recent article that I published. And now we are on the verge of another major economic slowdown. That is not what the middle class needs at all.
We are also getting some very disturbing economic news out of China.
In 2014, economic growth in China was the weakest in more than 20 years, and Chinese export numbers are absolutely collapsing…
China’s monthly trade data shows exports fell in March from a year ago by 14.6% in yuan terms, compared to expectations for a rise of more than 8%.
Imports meanwhile fell 12.3% in yuan terms compared to forecasts for a fall of more than 11%.
This is a clear sign that global economic activity is slowing down in a big way.
In addition, Chinese home prices are now falling at a faster pace then U.S. home prices fell during the subprime mortgage meltdown…
It appeared as though things went from bad to worse nearly overnight; China’s National Bureau of Statistics said that contrary to hopes that there would be a modest rebound, the average new home price in China fell at the fastest pace on record in February, from the previous year.
Reuters reported that average new home prices in China’s 70 major cities fell 5.7 percent, year to year, in February – marking the sixth consecutive drop after January’s decline of 5.1 percent.
Things continue to get worse in Europe as well.
This week we learned that the credit rating for Greek government debt has been slashed once again…
Standard & Poor’s has just cut Greece’s credit rating to “CCC+” from “B-” with a negative outlook.
S&P said it expected Greece’s debt to be “unsustainable.” It cited the potential for dissolving liquidity in the government, banks and economy.
And according to the Financial Times, we could actually be on the verge of witnessing a Greek debt default…
Greece is preparing to take the dramatic step of declaring a debt default unless it can reach a deal with its international creditors by the end of April, according to people briefed on the radical leftist government’s thinking.
The government, which is rapidly running out of funds to pay public sector salaries and state pensions, has decided to withhold €2.5bn of payments due to the International Monetary Fund in May and June if no agreement is struck, they said.
So I hope that those that are euphoric about the performance of their stock portfolios are taking their profits while they still can.
Huge trouble is percolating just under the surface of the global economy, and it won’t be too long before the financial markets start feeling the pain.
March 13th, 2015 by olddog
By Brandon Smith
Consumer spending in the U.S. accounts for approximately 70 percent of gross domestic product, though it is important to note that the manner in which “official” GDP is calculated is highly inaccurate. For example, all government money used within the Medicare coverage system to pay for “consumer health demands,” as well as the now flailing Obamacare socialized welfare program, are counted toward GDP, despite the fact that such capital is created from thin air by the Federal Reserve and also generates debt for the average taxpayer. Government debt creation does not beget successful domestic production. If that was a reality, then all socialist and communist countries (same thing) would be wildly enriched today. This is simply not the case.
That said, the swift decline in manufacturing jobs in the U.S. over the past two decades, including a considerable 33 percent overall decline in manufacturing jobs from 2001 to 2010, leaves only the consumer and service sectors as the primary areas of employment and “production.” The service sector provides about three out of every four jobs available in America, according to the Bureau of Labor Statistics.
The truth is that America actually produces very little that is tangible beyond Big Macs, pharmaceuticals and the occasional overpriced fighter jet that doesn’t function correctly and is filled with Chinese parts. All three will kill you at varying degrees of speed…
In the first part of this article series, I discussed the true state of global demand, along with the unstable situation within numerous indicators from exports to retail. Swiftly falling global demand for raw materials as well as consumer goods is an undeniable reality. This is a distinct problem in terms of the U.S., which has been, up until recently, the primary consumption driver for much of the world. As I plan to show, U.S. demand is about to fall even further into the abyss as real unemployment and personal debt take their toll.
Now, it is probably important to address the lies presented in the mainstream and by the BLS in terms of unemployment statistics because even after years of alternative analysts debunking establishment stats and how they are calculated, we STILL end up hearing the same arguments parroted by disinformation agents and unwitting useful idiots.
Such people continue to parade around boasting about the latest BLS reports on job creation claiming that “all is well” because the unemployment rate has dropped to 5.5% and all other talk to the contrary is “doom and gloom.” So, once again, I must relate the fact that the current BLS numbers are an utter sham.
Official unemployment stats are arrived at through disingenuous methods of calculation that were introduced in the 1990s, just before the bursting of the dot com bubble; the introduction of artificially low interest rates, which created the derivatives crisis; and the steady derailment of the U.S. financial system, which has occurred ever since.
So who is actually counted as employed and who is NOT counted as employed by the BLS?
Of the 102 million working-age Americans without work today, only 8.7 million are counted by the BLS as unemployed. Out of all working-age Americans, over 92 million are without jobs and are not counted by the BLS as unemployed. Why?
Well, if you ever read establishment-leaning propaganda websites like Factcheck or Poltifact, the argument is essentially that these 92 million Americans are not counted because they “refuse to participate,” not because they can’t find adequate employment and not because the government is misrepresenting the numbers. Yes, that’s right, 92 million Americans don’t count because they clearly must not want work.
So, first, I would ask how it is that the BLS comes to the conclusion that nearly one-third of the U.S. population does not want to work? Is it through its so called “household surveys?” Surveys, just like public polls, can be easily manipulated to affirm any particular bias merely by changing how questions are phrased. I would certainly love to see the raw data from such polls before the BLS adds its own spin.
Second, even if such claims were true and tens of millions of Americans did not want to work, why would this matter? Shouldn’t they still be counted as unemployed in order to draw the most accurate picture of our economic situation? Wouldn’t 92 million Americans apparently on a long-term labor and productivity strike have a severe negative effect on real GDP? And obviously, they must be surviving somehow. Wouldn’t 92 million people eventually require government assistance through food stamps and welfare? Does none of this matter to the BLS in terms of the overall economic picture?
Third, if the assertion is that 92 million people do not want jobs, then by extension the BLS would have to show that those millions of people could in fact get a job if they simply tried. Where are these tens of millions of jobs that Americans are refusing to apply for and what do they pay?
Fourth, a common misrepresentation attached to the claim of “refusal to participate” is that many of these Americans are teens in school (16 to 18) and possible “retirees” (55 or older). The BLS and the mainstream media simply assume these people do not want a job and should not be counted as unemployed. Of course, the BLS includes such people in its stats when they DO have jobs. So, according to the BLS, if you are 16 or 55 or 65 and you have a job, then you count. If you are 16 or 55 or 65 and don’t have a job, then you don’t count. See how that works?
Fifth, millions of Americans are losing long-term unemployment benefits every quarter and are being removed from BLS statistics. Many of them are not teens or retirees. These are average-working-age adults who now no longer have any real launch pad to progress in their career or life, and who should be fully motivated to obtain work if jobs are so readily available. Again, where are these jobs that said prime-working-age people refuse to accept?
The BLS also invariably discounts the number of working-age Americans who enter the market as well when boasting of jobs created to the public. Job growth numbers do not weigh the number of new participants each month with the number of supposed jobs made available, thus creating a misconception about how many new jobs are actually needed to keep the economy functional.
Another important factor to observe in government labor statistics is the issue of part-time work. When the BLS releases its monthly stats on unemployment, it does not widely promote or discuss the fact that 18 percent to 20 percent of those labeled “employed” are considered “part-time employed.” The BLS defines “part-time employed” as anyone who works 1 to 34 hours per week. Yes, if you work one hour per week, you have helped to bring down the overall unemployment rate of the U.S. to a fantastic 5.5 percent, even though you likely have zero ability to support yourself financially, let alone a family.
What does the 5.5 percent unemployment number actually represent on a fundamental level where the real world actually matters rather than the world of hypothetical calculations? Not a damn thing. The number is absolutely and unequivocally meaningless.
If one were to calculate unemployment using pre-1990s methods, as websites like Shadowstats.com do, counting U-6 measurements as well as the underemployed, you would come up with a U.S. jobless rate closer to 23 percent.
Many of those workers in the service sector on the higher end of the part-time and full-time spectrum still cannot support themselves adequately due to falling wages, rising prices and growing debt obligations, which brings me to the next problem at hand.
Beyond unemployment as a destroyer of consumer demand, there is also personal debt. Much of the focus within the mainstream and even alternative economics revolves around national debt (I will cover the many lies surrounding national debt in my next article). However, effects on fundamental demand are far clearer when one examines household liabilities. According to averages supplied through government stats (meaning the real numbers are likely far worse), the average American household suffers from between $10,000 to $15,000 in credit card debt, $155,000 in mortgage debt and $32,000 in student loan debt.
Americans owed nearly $12 trillion overall in 2014, an increase of 3.3 percent over 2013. Declines in some debts, including a decline in credit card debts since 2011, are attributed to numerous defaults, not repayments.
What we have here is a deadly fiscal combination; namely the combination of real unemployment at permanently high levels and real personal debt at unsustainable levels. This is the core reason behind the collapse in global demand that was discussed in the first installment of this series. With U.S. consumers no longer able to support their historical consumption habits and with the inflexible skeleton of the U.S. economy in particular dependent on past consumer dynamics, the system has little financial plasma left circulating.
This is not necessarily a new trend; but 10 years ago, Americans were able to offset their dwindling buying power by taking on massive debts through easy Federal Reserve fiat fueling questionable bank loans. They no longer have this option; thus, consumption is going to degrade (and is degrading) to the point that the current financial structure, stuck in its rigid and fragile dynamic, will collapse. There is no way around it.
As stated in my last article, the numbers given here are in most cases establishment-generated statistics. A common argument among state apologists and propagandists is that we in the alternative economic field should be labeled “hypocritical” if we debunk some mainstream stats while using others as reference points. I would make clear yet again that it is the contradictions within the government’s own numbers and claims that alternative analysts are most concerned with. My view is that when mainstream numbers actually reflect negative economic trends, they should be multiplied according to other prominent factors. That is to say, when the government bureaucrats and fantasy masters finally admit things are bad, they are actually much worse than indicated.
Some mainstream statistics are outright fraudulent; some are half true; others are factual yet hidden in plain site from the general public. In between the lines of all of this information, good and bad, alternative economists attempt to discern as much foundational truth as possible. As this series continues, I believe readers new to the Liberty Movement, as well as longtime activists, will come to view a wider and fuller picture of our fiscal situation and come to the same conclusion I have – That the manner in which we live today is about to drastically change, and that this coming change is being hidden from us deliberately by those who wish to use a tactic of financial shock and awe to their ultimate advantage.
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February 25th, 2015 by olddog
A Joint Initiative of GordonTLong.com and CliffKule.com
CURRENT FINANCIAL REPRESSION INITIATIVES
(MONEY MARKET FUND GATES (SEC REGULATIONS)
- **FRA POST: Central-Planners Herd Money Market Funds Into Government Financing
- **FRA POST: Fund managers now have the Legal Right to ‘suspend redemptions’ by the you on your Money Market Funds
- “Redemption Gates” for Money Market Funds Acting Man —“The adoption of ‘redemption gates’ effectively means that money market fund boards will be able to suspend the property rights of their customers. Once again, this creates a big disadvantage for the money market fund industry in favor of banks, since demand deposits will continue to lack such ‘redemption gates’, in spite of the fact that banks are de facto unable to actually pay out all demand deposits, or even a large portion of them, ‘on demand’. It is an interesting detail that retail customers are to be exempt from this regulation based on the idea that they are basically too addled to react to crisis conditions. Why are such regulations held to be required at all? Are regulators implying that the system has not been ‘made safe’ by adopting several telephone book-sized tomes of additional regulations?”
- SEC Votes Through Money Market Exit Gates Zero Hedge — the SEC has adopted the news rules designed to curb the risk of money market investor runs .. “Among the changes, funds will have to switch to a floating share price instead of the current $1/share (hence the term breaking the buck). But the key part: ‘The SEC’s rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption ‘gates’ and fees in times of market stress.” .. suggests this may send money market investor rushing out & into other asset classes – the SEC, the Federal Reserve & the U.S. Treasury hope that asset class is stocks to keep the stock market rising .. “Clearly, everyone understand that the only purpose behind implementing ‘gates’ is to redirect the herd. And with some $2.6 trillion in assets, money markets can serve as a convenient source of ‘forced buying’ now that QE is tapering if only for the time being. The only question is whether the herd will agree to this latest massive behavioral experiment by the Fed, and allocate their funds to a stock market which is now trading at a higher P/E multiple than during the last market peak.”
- ALERT: Pull Your Money From Money Markets Now! Economic Policy Journal
- U.S. SEC poised to adopt reforms for money market funds Reuters
- Fund managers on alert over money market shake-up FT –The SEC is looking to drive money market funds to only government securities, especially institutional money market funds – this means money market funds will be helping to pay for the government debt .. The SEC is also planning to allow fees and restrictions on redemptions in times of stress, but it is not clear how widely these will be applied across the money markets – FT: “Any restrictions on redemptions may not be severe at first, but the regulations will only become more restrictive over time. Don’t waste time thinking you are going to monitor the situation and get out later. Get out now, when the getting is easy.”
Do you know the difference between a money market fund and a money market account? CNBC Personal Finance Reporter Sharon Epperson explains the big difference
BAIL-IN (GLOBAL – G20 LEGISLATION)
- Australia: ‘Bail in’ Rules May Be Inevitable In Australia – August 22, 2014 Bail in’ rules may be inevitable, says David Murray of the Financial Systems Inquiry Chair in Australia .. “It appears there’s a wide consensus that bail-in would considerably expand the buffer, would further assist in the mechanisms for the protection of depositors, and importantly would create a system where it is less likely that the government would be dragged into a crisis.” .. Australia may have little choice but to adopt “bail-in” rules that expose bank creditors to losses, due to our dependence on foreign capital .. more financial repression.
- Canada: Department Of Finance Releases Proposal For Canadian Bail-In Regime Canada’s government is looking to implement a bail-in regime to limit exposure to a government bailout – the idea is for troubled banks to shaft bank depositors of their bank deposits first .. “The G-20, including Canada, endorsed the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions in 2011, a set of best practices for the resolution of financial institutions which contemplates the establishment of a bail-in regime.”
**FRA POST: Federal Reserve & Congress Talk “ENHANCED PRUDENTIAL STANDARDS”
CAPITAL CONTROLS (CASEY RESEARCH ON COMING CAPITAL CONTROLS)
**FRA POST: Indebted Governments Will Resort To Capital Controls
1: IMF Endorses Capital Controls
Bloomberg reported in December 2012 that the “IMF has endorsed the use of capital controls in certain circumstances.“ This is particularly important because the IMF, arguably an even more prominent institution since the global financial crisis started, has always had an official stance against capital controls. “In a reversal of its historic support for unrestricted flows of money across borders, the IMF said controls can be useful…” Will individual governments jump on this bandwagon? “It will be tacitly endorsed by a lot of central banks,”says Boston University professor Kevin Gallagher. If so, it could be more than just your home government that will clamp down on storing assets elsewhere.
2: There Is Academic Support for Capital Controls
Many mainstream economists support capital controls. For example, famed Harvard Economists Carmen Reinhart and Ken Rogoff wrote the following earlier this year:
Governments should consider taking a more eclectic range of economic measures than have been the norm over the past generation or two. The policies put in place so far, such as budgetary austerity, are little match for the size of the problem, and may make things worse. Instead, governments should take stronger action, much as rich economies did in past crises.
Aside from the dangerously foolish idea that reining in excessive government spending is a bad thing, Reinhart and Rogoff are saying that even more massive government intervention should be pursued. This opens the door to all kinds of dubious actions on the part of politicians, including—to my point today—capital controls.
“Ms. Reinhart and Mr. Rogoff suggest debt write-downs and ‘financial repression’, meaning the use of a combination of moderate inflation and constraints on the flow of capital to reduce debt burdens.” The Reinhart and Rogoff report basically signals to politicians that it’s not only acceptable but desirable to reduce their debts by restricting the flow of capital across borders. Such action would keep funds locked inside countries where said politicians can plunder them as they see fit.
3: Confiscation of Savings on the Rise
“So, what’s the big deal?” Some might think. “I live here, work here, shop here, spend here, and invest here. I don’t really need funds outside my country anyway!” Well, it’s self-evident that putting all of one’s eggs in any single basket, no matter how safe and sound that basket may seem, is risky—extremely risky in today’s financial climate. In addition, when it comes to capital controls, storing a little gold outside one’s home jurisdiction can help avoid one major calamity, a danger that is growing virtually everywhere in the world: the outright confiscation of people’s savings.
The IMF, in a report entitled “Taxing Times,” published in October of 2013, on page 49, states: “The sharp deterioration of the public finances in many countries has revived interest in a capital levy—a one-off tax on private wealth—as an exceptional measure to restore debt sustainability.”
The problem is debt. And now countries with higher debt levels are seeking to justify a tax on the wealth of private citizens. So, to skeptics regarding the value of international diversification, I would ask: Does the country you live in have a lot of debt? Is it unsustainable? If debt levels are dangerously high, the IMF says your politicians could repay it by taking some of your wealth.
The following quote sent shivers down my spine…
The appeal is that such a task, if implemented before avoidance is possible and there is a belief that is will never be repeated, does not distort behavior, and may be seen by some as fair. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away.
The IMF has made it clear that invoking a levy on your assets would have to be done before you have time to make other arrangements. There will be no advance notice. It will be fast, cold, and cruel. Notice also that one option is to simply inflate debt away. Given the amount of indebtedness in much of the world, inflation will certainly be part of the “solution,” with or without outright confiscation of your savings. (So make sure you own enough gold, and avoid government bonds like the plague.)
Further, the IMF has already studied how much the tax would have to be: The tax rates needed to bring down public debt to pre-crisis levels are sizable: reducing debt ratios to 2007 levels would require, for a sample of 15 euro area countries, a tax rate of about 10% on households with a positive net worth. Note that the criterion is not billionaire status, nor millionaire, nor even “comfortably well off.” The tax would apply to anyone with a positive net worth. And the 10% wealth-grab would, of course, be on top of regular income taxes, sales taxes, property taxes, etc.
4: We Like Pension Funds
Unfortunately, it’s not just savings. Carmen Reinhart (again) and M. Belén Sbrancia made the following suggestions in a 2011 paper:
Historically, periods of high indebtedness have been associated with a rising incidence of default or restructuring of public and private debts. A subtle type of debt restructuring takes the form of ‘financial repression.’ Financial repression includes directed lending to government by captive domestic audiences (such as pension funds), explicit or implicit caps on interest rates, regulation of cross-border capital movements, and (generally) a tighter connection between government and banks.
Yes, your retirement account is now a “captive domestic audience.” Are you ready to “lend” it to the government? “Directed” means “compulsory” in the above statement, and you may not have a choice if “regulation of cross-border capital movements”—capital controls—are instituted.
5: The Eurozone Sanctions Money-Grabs
Germany’s Bundesbank weighed in on this subject last January:
“Countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.”
The context here is that of Germans not wanting to have to pay for the mistakes of Italians, Greeks, Cypriots, or whatnot. Fair enough, but the “capital levy” prescription is still a confiscation of funds from individuals’ banks or brokerage accounts.
Here’s another statement that sent shivers down my spine:
A capital levy corresponds to the principle of national responsibility, according to which tax payers are responsible for their government’s obligations before solidarity of other states is required.
The central bank of the strongest economy in the European Union has explicitly stated that you are responsible for your country’s fiscal obligations—and would be even if you voted against them! No matter how financially reckless politicians have been, it is your duty to meet your country’s financial needs.
This view effectively nullifies all objections. It’s a clear warning.
And it’s not just the Germans. On February 12, 2014, Reuters reported on an EU commission document that states:
The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis.
Reuters reported that the Commission plans to request a draft law, “to mobilize more personal pension savings for long-term financing.”
EU officials are explicitly telling us that the pensions and savings of its citizens are fair game to meet the union’s financial needs. If you live in Europe, the writing is on the wall.
Actually, it’s already under way… Reuters recently reported that Spain has
…introduced a blanket taxation rate of .03% on all bank account deposits, in a move aimed at… generating revenues for the country’s cash-strapped autonomous communities.
The regulation, which could bring around 400 million euros ($546 million) to the state coffers based on total deposits worth 1.4 trillion euros, had been tipped as a possible sweetener for the regions days after tough deficit limits for this year and next were set by the central government.
Some may counter that since Spain has relatively low tax rates and the bail-in rate is small, this development is no big deal. I disagree: it establishes the principle, sets the precedent, and opens the door for other countries to pursue similar policies.
6: Canada Jumps on the Confiscation Bandwagon
You may recall this text from last year’s budget in Canada:
“The Government proposes to implement a bail-in regime for systemically important banks.”
A bail-in is what they call it when a government takes depositors’ money to plug a bank’s financial holes—just as was done in Cyprus last year.
This regime will be designed to ensure that, in the unlikely event a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.
What’s a “bank liability”? Your deposits. How quickly could they do such a thing? They just told us: fast enough that you won’t have time to react.
By the way, the Canadian bail-in was approved on a national level just one week after the final decision was made for the Cyprus bail-in.
Have you considered why the Foreign Account Tax Compliance Act was passed into law? It was supposed to crack down on tax evaders and collect unpaid tax revenue. However, it’s estimated that it will only generate $8.7 billion over 10 years, which equates to 0.18% of the current budget deficit. And that’s based on rosy government projections.
FATCA was snuck into the HIRE Act of 2010, with little notice or discussion. Since the law will raise negligible revenue, I think something else must be going on here. If you ask me, it’s about control.
In my opinion, the goal of FATCA is to keep US savers trapped in US banks and in the US dollar, in case the US wants to implement a Cyprus-like bail-in. Given the debt load in the US and given statements made by government officials, this seems like a reasonable conclusion to draw.
This is why I think that the institution of capital controls is a “when” question, not an “if” one. The momentum is clearly gaining steam for some form of capital controls being instituted in the near future. If you don’t internationalize, you must accept the risk that your assets will be confiscated, taxed, regulated, and/or inflated away.
What to Expect Going Forward
- First, any announcement will probably not use the words “capital controls.”It will be couched positively, for the “greater good,” and words like “patriotic duty” will likely feature prominently in mainstream press and government press releases. If you try to transfer assets outside your country, you could be branded as a traitor or an enemy of the state, even among some in your own social circles.
- Controls will likely occur suddenly and with no warning. When did Cyprus implement their bail-in scheme? On a Friday night after banks were closed. By the way, prior to the bail-in, citizens were told the Cypriot banks had “government guarantees” and were “well-regulated.” Those assurances were nothing but a cruel joke when lightning-fast confiscation was enacted.
- Restrictions could last a long time. While many capital controls have been lifted in Cyprus, money transfers outside the country still require approval from the Central Bank—over a year after the bail-in.
- They’ll probably be retroactive.Actually, remove the word “probably.” Plenty of laws in response to prior financial crises have been enacted retroactively. Any new fiscal or monetary emergency would provide easy justification to do so again. If capital controls or savings confiscations were instituted later this year, for example, they would likely be retroactive to January 1. For those who have not yet taken action, it could already be too late.
- Social environment will be chaotic.If capital controls are instituted, it will be because we’re in some kind of economic crisis, which implies the social atmosphere will be rocky and perhaps even dangerous. We shouldn’t be surprised to see riots, as there would be great uncertainty and fear. That’s dangerous in its own right, but it’s also not the kind of environment in which to begin making arrangements.
- Ban vs. levy. Imposing capital controls is a risky move for a government to make; even the most reckless politicians understand this. That won’t stop them, but it could make them act more subtly. For instance, they might not impose actual bans on moving money across borders, but instead place a levy on doing so. Say, a 50% levy? That would “encourage” funds to remain inside a given country. Why not 100%? You could be permitted to transfer $10,000 outside the country—but if the fee for doing so is $10,000, few will do it. Such verbal games allow politicians to claim they have not enacted capital controls and yet achieve the same effect. There are plenty of historical examples of countries doing this very thin
Keep in mind: Who will you complain to? If the government takes a portion of your assets, legally, who will you sue? You will have no recourse. And don’t expect anyone below your tax bracket to feel sorry for you.
POLICY CONTROLS (Monetary, Fiscal, Public & Tax Policy)
- January 2015 Financial Repression – New IMF Paper on The Liquidation of Government Debt New IMF paper by Carmen Reinhart & M. Belen Sbrancia .. presents how public debt is often reduced through the use of financial repression – a tax on bondholders & savers via negative or below market real interest rates .. from abstract:High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or below-market real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for government debt .. Financial repression is most successful in liquidating debt when accompanied by inflation. For the advanced economies, real interest rates were ne gative ½ of the time during 1945–1980. Average annual interest expense savings for a 12—country sample range from about 1 to 5% of GDP for the full 1945–1980 period. We suggest that, once again, financial repression may be part of the toolkit deployed to cope with the most recent surge in public debt in advanced economies.”
- October 2014 – Financial Repression is Very Low Interest Rates for a Very Long Time The 16th annual Geneva Report by the International Centre for Monetary and Banking Studies & written by senior economists including 3 former senior central bankers, predicts interest rates across the world will have to stay low for a “very, very long” time to enable households, companies, & governments to service their debts and avoid another crash .. The report’s authors expect interest rates to stay lower than market expectations because the rise in debt means that borrowers would be unable to withstand faster rate rises .. “Global debt-to-GDP is still growing, breaking new highs .. At the same time, in a poisonous combination, world growth and inflation are also lower than previously expected, also – though not only – as a legacy of the past crisis. Deleveraging and slower nominal growth are in many cases interacting in a vicious loop, with the latter making the deleveraging process harder and the former exacerbating the economic slowdown. Moreover, the global capacity to take on debt has been reduced through the combination of slower expansion in real output and lower inflation.”
- October 2014 – Financial Repression is the likely approach for Governments to pay down debt Great insightful article on financial repression by Daniel Amerman .. questions how the U.S. federal government can pay down its enormous debt .. sees 4 primary options that the government can take: 1) Decades of austerity with higher taxes and lower government spending. 2) Defaulting on government debts. 3) Inflating away the value of the debt through rapidly slashing the value of the currency. 4) Using “Financial Repression”, a process that is complex enough that the average voter never understands how it works, thus allowing governments to use this potent but subtle method of taking vast sums of private wealth, year after year, decade after decade, with almost no political consequences. The essay reminds readers the 4th option is the likely approach, points out the world took this approach in the 1940s through the 1970s to pay down government debt .. “Because of the sheer size of the problem – most of the population must be made to participate, year after year. Financial Repression therefore uses an assortment of carrots and sticks to ensure that investors have little choice but to participate – on a playing field that has been rigged against them as a matter of design – even if they are among the small minority who are aware of what is being done to them.”The essay covers 4 areas of financial repression: 1) Inflation (Shearing #1) 2) Negative Real Interest Rates (Shearing #2) 3) Funding By Financial Institutions (Fence #1). 4) Capital Controls (Fence #2).
- September 2014 – Governments Implementing Financial Repression International Man article on how western world indebted governments need money, how they will protect the big banks at the expense of the citizens with financial repression .. The International Monetary Fund (IMF) published a horrifying paper, called The Fund’s Lending Framework and Sovereign Debt. That paper in turn was based on one from December 2013, called Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten .. The December 2013 document, right at the start, says that financial repression is necessary: “The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression .. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt overhangs.” .. The IMF report goes on to say: “Governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand .. Domestic defaults, restructurings, or conversions are particularly difficult to document and can sometimes be disguised as ‘voluntary’ .. The Fund would be able to provide exceptional access on the basis of a debt operation that involves an extension of maturities .. That means that 30-day notes can be instantly turned into 30-year bonds.” – this last sentence means the ability to change 30-day notes into 30-year bonds, effectively holding the money captive for a much longer period of time
- Monetary Policy & Financial Repression in Britain, 1951 – 59 New book coming out by William Allen on Monetary Policy and Financial Repression in Britain, 1951 – 59 .. this book explores the politics of formulating monetary policy in the 1950s, the tools implementing it & discusses the parallels between the present monetary policy & that of 1951 .. “Drawing on official archives, this study describes how monetary policy was decided on, implemented and communicated at a time when the government was struggling with massive post-war debts while maintaining welfare and military spending and cutting taxes. It discusses the roles of the Governor of the Bank of England, Cameron Cobbold, and of successive Chancellors R.A. Butler, Harold Macmillan, Peter Thorneycroft and Derick Heathcoat Amory, and Macmillan’s continued dominance of monetary policy after he became Prime Minister. It explains the intimate relationships between monetary policy, government debt management and fiscal policy, and the use of ‘financial repression’.”
- Low Interest Rates & Inflation To Address Financial Repression Article points out the worse things get on the European financial/economic crisis, the more pressure there is on the European Central Bank (ECB) to print money – stocks will likely go up as this happens on the anticipation that the ECB will given in & start money printing .. “The ECB would print money and use it to buy eurozone government bonds, in order to prop up the region’s banking sector, and to encourage more risk-taking by lenders and investors. Of course, any hint of more money-printing always cheers the market, and European stocks reacted well to the news.” .. the article points to how U.S. & UK stocks have similarly reacted positively on all the money printing .. whether all this money is good for the economy or whether it even benefits the economy in any positive way is another question .. the article emphasizes the approach of financial repression taken by the U.S. & UK in keeping interest rates down & allowing inflation to rise in order to pay off some government debt via inflation, rather than by defaulting or cutting back spending .. most western world governments are in this bind, so that “we could see interest rates staying lower than markets expect for some time. And in the longer run, we could see a lot more inflation than we’ve been used to as well” .. in terms of investing, the article suggests sticking with countries that are looking to do more money printing & that have relatively inexpensive stock markets, such as Europe or Japan.
- This Is Going To Destabilize The Entire World Financial System Ronald-Peter Stoferle, Incrementum AG “Bond prices in practically all industrialized nations are near all-time highs. Never before have interest rates been this low on a global basis. If one examines these events more closely, it becomes clear that the underlying problems cannot be solved by global zero interest rate policy, but that the natural selection process of the market is instead being undermined .. Interest rates are the heart, soul and life of the free enterprise system .. This truth is however veiled and distorted at the moment. Governments, financial institutions, entrepreneurs and consumers that are acting in an uneconomic manner are thus kept artificially afloat. As a result, instead of them being punished for their errors, these errors are perpetuated. Protraction of this process of selection leads to a structural weakening of the economy, and a concomitant increase in the system’s fragility .. Declining interest rate levels make a gradual increase in public indebtedness possible, while the interest burden (as a share of government spending) does not grow .. Without negative real interest rates, the steadily growing mountains of debt would long ago have ceased to be sustainable. Central banks are increasingly prisoners of the policy of over-indebtedness .. Central banks and governments are currently trying to create an increase in prosperity out of nothing. Such a monetary perpetuum mobile would be quite desirable for humankind, however, historically such attempts have at best led to a brief sugar high followed by a major hangover.
- Alasdair Macleod On The Markets: Keep Calm & Carry On “Investment is now all about the trend and little else. You never have to value anything properly any more: just measure confidence. This approach to investing resonates with post-Keynesian economics and government planning. The expectations of the crowd, or its animal spirits, are now there to be managed. No longer is there the seemingly irrational behaviour of unfettered markets dominated by independent thinkers. Forward guidance is just the latest manifestation of this policy. It represents the triumph of economic management over the markets .. Doubtless there is a growing band of central bankers who believe that with this control they have finally discovered Keynes’s Holy Grail: the euthanasia of the rentier and his replacement by the state as the primary source of business capital. This being the case, last month’s dip in the markets will turn out to be just that, because intervention will simply continue and if necessary be ramped up .. But in the process, all market risk is being transferred from bonds, equities and all other financial assets into currencies themselves; and it is the outcome of their purchasing power that will prove to be the final judgement in the debate of markets versus economic planning.”
- The Fed’s Financial Repression At Work: How Big Blue Was Turned Into A Wall Street Slush Fund David Stockman — “IBM is a poster child for the ill-effects of the Fed’s financial repression. In effect, the Fed’s zero interest rate policies are telling big companies to issue truckloads of debt and use the proceeds to buyback shares hand-over-fist. That way fast money speculators on Wall Street are appeased by the resulting share price lift, and top executives collect bigger winnings on their stock options.”
- Time For Regime Change At The Eccles Building: Interest Rate Pegging Is Destroying Capitalism 07-13-14 David Stockman
- BoJ To Engage In ‘Financial Repression'; We Stay Long USD/JPY – BNPP 07-11-14 eFX News “Japan now has one of the highest inflation rates in the G10. Our economists expect the BoJ to engage in ‘financial repression’ to restrain the rise in JGB yields that results from Japan’s fiscal dynamics,” BNPP says as a rationale behind this view. “A larger overshoot in Japan’s inflation rate would also see the yen weaken. If inflation gets out of hand, we could, our economists suggest, see an ‘operation twist’ policy in Japan – similar to that witnessed in the US. This would entail aggressive purchases of JGBs coupled with interest rate hikes to stave off inflation. The resultant inversion in the yield curve, along with the upside shock to inflation, is a risk scenario for Japan and the ensuing adverse growth-inflation paradigm would necessarily entail a weaker yen,” BNPP argues. “In addition, a re-allocation in the government pension investment fund (GPIF) and a likely pick-up in Japanese outflows will mean JPY weakens,” BNPP adds.
- Expropriation Is Back – Is Christine Lagarde The Most Dangerous Woman In The World? Zero Hedge
- Norway Sovereign Wealth Fund Unveils “New Strategy” – Buy 5% Of Every European Stock 06-24-14
- Boston Consulting Group Study September 2011
- Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten – December 2013 IMF
- Extending Maturities on Bonds – 05-22-14 IMF
MyRA – More About Getting Votes Than Helping Middle Class
The Three Stooges Debunk myRA – Zero Hedge
The MyRA Propaganda Begins A Start To A Secure Retirement Promises Treasury Secretary
Obama To Unveil Treasury IRAs, Or Planning For A Post-Monetization World
The Next Shoe To Drop On Your Retirement Account
Default, Deflation and Financial Repression
ECB Seriously Considering Negative Interest Rates; New Central Bank Mottos
First It Was Bail-Ins And Now EU Sees “Personal Pension Savings” As “Plug” For Banks
Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit
We Are From The Government And We Are Here To Offer You A No Risk, Guaranteed Return Investment Product
Theft Is Deflationary – Especially The Crony-CapitalistState Kind
When Saving Interest Rates Go Negative
REGULATORY CONTROLS & ENFORCEMENT
- U.S. Pushing Banks On Dodd-Frank Act To Make It Easier For Government To FREEZE YOUR MONEY – Financial Repression Via Regulations “The U.S. wants big banks to simplify their Dodd-Frank Act resolution plans so it’s easier for government to freeze your money.” .. Bloomberg reports on the progress made by Wall Street banks developing their “living wills” as part of the Dodd-Frank Act legislation attempting to minimize “too big to fail” banks .. Bloomberg: “The Federal Reserve and Federal Deposit Insurance Corp. told 11 of the largest U.S. and foreign banks, including JP Morgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), that they botched their so-called living wills. The agencies ordered the banks to simplify their legal structures and revise some practices to make sure they can collapse without damaging the wider financial system.” Jim Rickards:
- Fischer worries about macroprudential policy– 07-10-14 FT Mr Fischer’s most interesting remarks relate to his experience with macroprudential policy in Israel. Israel’s bank supervisor used a range of tools to restrict mortgage lending and try to avert a housing bubble. Mr Fischer draws three lessons:
- Prohibiting Banks From Paying Interest On Demand Deposits Regulation Q
- Basel Accord II and III – 05-16-14 Cliff Küle
PUBLIC & PRIVATE PRESSURES & PENALTIES
Charting The Death Of The Saver
Placing the Government Debt on the back off Savers & Pensioners
(ie the 75M Baby Boomers About to Retire)
February 12th, 2015 by olddog
Over the past decade, there has been only one other time when the value of the U.S. dollar has increased by so much in such a short period of time. That was in mid-2008 – just before the greatest financial crash since the Great Depression.
A surging U.S. dollar also greatly contributed to the Latin American debt crisis of the early 1980s and the Asian financial crisis of 1997. Today, the globe is more interconnected than ever. Most global trade is conducted in U.S. dollars, and much of the borrowing done by emerging markets all over the planet is denominated in U.S. dollars. When the U.S. dollar goes up dramatically, this can put a tremendous amount of financial stress on economies all around the world. It also has the potential to greatly threaten the stability of the 65 trillion dollars in derivatives that are directly tied to the value of the U.S. dollar.
The global financial system is more vulnerable to currency movements than ever before, and history tells us that when the U.S. dollar soars the global economy tends to experience a contraction. So the fact that the U.S. dollar has been skyrocketing lately is a very, very bad sign.
Most of the people that write about the coming economic collapse love to talk about the coming collapse of the U.S. dollar as well. But in the initial deflationary stage of the coming financial crisis, we are likely to see the U.S. dollar actually strengthen considerably.
As I have discussed so many times before, we are going to experience deflation first, and after that deflationary phase the desperate responses by the Federal Reserve and the U.S. government to that deflation will cause the inflationary panic that so many have written about.
Yes, someday the U.S. dollar will essentially be toilet paper. But that is not in our immediate future. What is in our immediate future is a “flight to safety” that will push the surging U.S. dollar even higher.
This is what we witnessed in 2008, and this is happening once again right now.
Just look at the chart that I have posted below. You can see the the U.S. dollar moved upward dramatically relative to other currencies starting in mid-2008. And toward the end of the chart you can see that the U.S. dollar is now experiencing a similar spike…
At the moment, almost every major currency in the world is falling relative to the U.S. dollar.
For example, this next chart shows what the euro is doing relative to the dollar. As you can see, the euro is in the midst of a stunning decline…
Unfortunately, most Americans have absolutely no idea how important all of this is. In recent years, growing economies all over the world have borrowed gigantic piles of very cheap U.S. dollars. But now they are faced with the prospect of repaying those debts and making interest payments using much more expensive U.S. dollars.
Investors are starting to get nervous. At one time, investors couldn’t wait to pour money into emerging markets, but now this process is beginning to reverse. If this turns into a panic, we are going to have one giant financial mess on our hands.
The truth is that the value of the U.S. dollar is of great importance to every nation on the face of the Earth. The following comes from U.S. News & World Report…
In the early ’80s, a bullish U.S. dollar contributed to the Latin American debt crisis, and also impacted the Asian Tiger crisis in the late ’90s. Emerging markets typically have higher growth, but carry much higher risk to investors. When the economies are doing well, foreign investors will lend money to emerging market countries by purchasing their bonds.
They also deposit money in foreign banks, which facilitates higher lending. The reason for this is simple: Bond payments and interest rates in emerging markets are much higher than in the U.S. Why deposit cash in the U.S. and earn 0.25 percent, when you could earn 6 percent in Indonesia? With the dollar strengthening, the interest payments on any bond denominated in U.S. dollars becomes more expensive.
Additionally, the deposit in the Indonesian bank may still be earning 6 percent, but that is on Indonesian rupiahs. After converting the rupiahs to U.S. dollars, the extra interest doesn’t offset the loss from the exchange. As investors get nervous, the higher interest on emerging market debt and deposits becomes less alluring, and they flee to safety. It may start slowly, but history tells us it can quickly spiral out of control.
Over the past few months, I have been repeatedly stressing that so many of the signs that we witnessed just prior to previous financial crashes are happening again.
Now you can add the skyrocketing U.S. dollar to that list.
If you have not seen my previous articles where I have discussed these things, here are some places to get started…
“Guess What Happened The Last Time The Price Of Oil Crashed Like This?…”
“Not Just Oil: Guess What Happened The Last Time Commodity Prices Crashed Like This?…”
“10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW”
The warnings signs are really starting to pile up.
When we look back at past financial crashes, there are recognizable patterns that can be identified.
Anyone with half a brain should be able to see that a large number of those patterns are unfolding once again right before our eyes.
Unfortunately, most people in this world end up believing exactly what they want to believe.
No matter how much evidence you show them, they will not accept the truth until it is too late.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
AS I’VE SAID BEFORE
December 23rd, 2014 by olddog
Posted by arnierosner
Written By Anna von Reitz
At first base you learned that what you have been thinking of as “your government” is in fact a private, foreign, for-profit governmental services corporation called the UNITED STATES. This entity is owned and operated by the INTERNATIONAL MONETARY FUND, which is an agency of the UN. The UNITED STATES, INC. has fifty “STATE” franchises doing business as the “STATE OF OHIO” and the “STATE OF WISCONSIN” and so on, just as Burger King or Sears or Dairy Queen have local franchises.
An earlier private, for profit governmental services corporation known as the United States of America, Incorporated, functioned from 1868 to 1933 when it entered into bankruptcy reorganization and remained in Chapter 11 from 1933 to July 1, 2013. It had fifty “federal state” franchises operating as the “State of Ohio” and “State of Georgia” and so on, too—-all part of the “Federal Reserve System”. The Federal Reserve was organized under the auspices of a foreign nation calling itself the United States of America (Minor) composed of what are more normally thought of as the “federal territories and possessions”—-Guam, Puerto Rico, American Virgin Islands, American Samoa, et alia.
So at the same time during most of your life there have been two “federal governments”—that is, “federal” governmental services corporations— operating side by side in collusion to defraud you. When FDR bankrupted the United States of America, Inc. he and his “Governors”— the federal State franchise owners—pledged the “good faith and credit” of “their states and the citizenry thereof” as “sureties” backing the debts of the bankrupt corporation during its reorganization.
The UNITED STATES, INC. took up where the United States of America, Inc. left off, and simply passed through all its charges for services directly to the presumed sureties—- us. The problem is that we never consented under conditions of full disclosure to be “federal” states nor “federal” citizens. It was merely self-interested “policy” of these corporations and their creditors to “presume” that we were all “voluntary sureties” and to plunder our estates and “indebt” us for their spending.
They never told us all the lies and processes they employed to justify and accomplish this identity theft and fiduciary trust fraud used to usurp our natural position as beneficiaries of our own estates and to instead name their corporations as both the comptrollers and beneficiaries of our labor, our lives, our relationships, our businesses, our homes, and our land.
Now, you are going to learn and thoroughly understand that part of it.
Let’s use the name of the present “Secretary of the Treasury”—- “jacob joseph lew” as the name in our example, in hopes that he may get the point.
First, let’s look at Secretary Lew’s birth state: New York.
This is the original “State of New York” one of the original Thirteen (E)states that joined together as the united States of America. Notice that “united” is just an adjective describing a union or association or as they put it, a “perpetual confederation” of these landed “(E)states” The actual name of this country is the “States of America”. The actual and still very much in effect document binding the states together is The Articles of Confederation (1781).
Any idea that any “Constitution” dissolved or replaced the Articles of Confederation is a self-serving lie perpetuated by those who would defraud and enslave you. The “Constitution” —-the real Constitution— is an equity contract and public trust indenture that neither describes the states in terms of their geography nor binds them together in any way except as mutual subscribers to the governmental services to be provided by the “contract government”.
The 1824 Edition of the Webster’s Dictionary clearly states that the word “federal” was a synonym for “contract”, a usage and convention used repeatedly in relation to other documents of the time. It will help you to de-program if every time you see the words “federal government” you instead insert “contract government”—-for that is what it is. It is and has always been a foreign, maritime entity under contract to provide nineteen enumerated governmental services to the subscribing American states. The Constitution, like all Constitutions, is a debt agreement stipulating the services under contract, the limits of the authorities granted, and the payment terms.
This commercial contract is NOT what created your country and formed the Union of States. It merely helped to “perfect” the Union by providing common defense, common currency, and common administration of certain mutually agreed upon services. It also set common limits on the “federal government” in its administration of these mutual services to be provided to the subscribing states.
When we talk about a “state”, even a geographically defined “state” we must be aware that we are talking about a fictional entity. It doesn’t really exist, except via social agreement and convention. In truth there are no state borders established by God, no painted line etched by Heaven to separate New York from New Jersey, and when you go to Court and are accused or judged by anything calling itself the “State of New York” or “STATE OF NEW JERSEY” it is not the land and water of these states that levels the charges or claims to be injured or rises up to accuse you.
All such “States” are fictional in nature, including the original States of the Union bound together by The Articles of Confederation.
Little baby “jacob joseph lew” is born on the land of the American organic, geographically defined New York State. He is given his individual name— his “given name” which is “jacob joseph” by his parents and he inherits his family surname “lew” from his father. Properly, his name as a living baby must be either denoted in all small letters as shown here, or he must be described, as in “Joseph-Jacob of the House Lew”. These are the only proper and lawful ways to name a living freeborn child, and it has been that way since the days of ancient Rome. He is born as a civilian on the jurisdiction of the land, and as a natural –born American, he has complete civil authority. Even as a baby little jacob joseph lew possessed more civil authority on the land of New York State than the entire federal government, but he was blissfully unaware of that fact.
So we’ve already learned some important arcane information here: how to properly and lawfully name a living baby, how to name a land-based geographically defined “state”—-it’s “New York State”— versus a legal fiction political state—the “State of New York” created by social agreement and convention. Little jacob-joseph:lew was thus born on the land of New York State, and, at the same time, inthe State of New York.
We’ve already determined that he was born on the land as a civilian and with complete civil authority on the land, but what does this additional status of being born in the “State of New York” confer? We walk on the land and we swim in the water. This second, political status falls under maritime jurisdiction. Jacob-joseph is still a civilian, so the “State of New York” operates in civil maritime.
To denote this fundamental difference in jurisdiction between the land and the sea, jacob joseph lew’s name on the land is “restyled” as “Jacob Joseph Lew”.
So you now have one baby, two names, and two completely separate jurisdictions— jurisdictions that are as absolutely and endemically separate from each other as the land and the sea.
Civil maritime is the jurisdiction in which merchant mariners and commercial “vessels” trade and sail the seas, so perhaps it is not awfully surprising that Federal Title 7 considers “Jacob Joseph Lew” a “vessel” and the Internal Revenue Code describes him as a warrant officer in the Merchant Marine Service when he exercises his “office” as a “withholding agent” working for an offshore Puerto Rican trust operated under the name “JACOB JOSEPH LEW”.
This third version, “JACOB JOSEPH LEW” appears shortly after “Jacob Joseph Lew” is “registered” by agents under contract to the Federal Reserve System as a vessel belonging to the United States of America, Incorporated.
Say, what? Yes, those nice people at the New York Bureau of Vital Statistics aren’t working for the New York State. They are working for the State of New York. And the “State of New York” is a “federal state franchise” of the United States of America, Incorporated, which was owned and operated by the Federal Reserve System under the auspices of a foreign nation calling itself “the United States of America (Minor)”—–though they very rarely bother to include the word (Minor). This “other United States” is composed of a consortium of “American” “States” more often thought of as federal territories and possessions, including Guam, Puerto Rico, American Samoa, American Virgin Islands and “Other Insular States”. It’s a private corporation organized under the auspices of a foreign country operating “state” franchises in our midst.
All your life you have never used your real name or enjoyed your birthright or your God-given freedom, because these interlopers came to your Mother under conditions of non-disclosure and self-interested deceit by committing fiduciary trust fraud, they pushed your Mother to unknowingly donate you as chattel “entrusted” to their corporation— their “state” franchise” doing business as the “State of New York”, which allowed them to claim that you were “voluntarily” renouncing your birthright status as a civilian on the land of the New York State, and agreeing instead to be “enfranchised” and made “subject” to the “territorial jurisdiction” of the United States of America (Minor).
In one stroke, your misled and purposefully entrapped Mother gave this foreign, for-profit, private “State” franchise of the bankrupt United States of America, Incorporated (and their owners, the Federal Reserve Banks) legal title to you. Mrs. Lew was never told anything about the nature of the paperwork she was signing, but the “State of New York” became the trustee of little jacob joseph lew. And their very first act was to abuse the right of usufruct— the right of trustees to use the name of the beneficiary, so long as no harm is done to the beneficiary or their reputation.
You be the judge of the ultimate harm they have done to you and millions of others.
They immediately “redefined” jacob-joseph (and you) as a “US citizen” subject to the whims of the “United States Congress” acting as the government of the United States of America (Minor), a foreign, maritime, legislative democracy. This removed him— literally kidnapped him—from his natural jurisdiction on the land of New York State where he was born free and entitled to all his Natural and Unalienable rights—-and “subjected” him—as in “subject to a king” to the laws and jurisdiction of this foreign nation and its “territorial jurisdiction” and also made him a “surety” for the debts of the same “United States Congress” and the bankrupt “United States of America, Incorporated”. They enslaved him and you and millions of others.
Instead of acting as his Trustee, the “State of New York” acted as a predator and changed the baby’s name to “Jacob Joseph Lew”. This is the way he was taught to refer to himself and the way he was taught to sign his name and that allowed the legal presumption that he was knowingly and willingly and voluntarily operating in their foreign civil maritime “territorial jurisdiction” as a “vessel in commerce” belonging to the “State of New York” —a franchise of the bankrupt United States of America, Incorporated, organized under the auspices of the United States of America, (Minor).
This is a sophisticated form of identity theft carried out against unsuspecting women and babes in their cradles by international banking cartels operating governmental services corporations under conditions of gross self-interested fiduciary trust fraud and deceit.
Next, the operators of this fraud scheme issued bonds based on jacob-joseph’s estimated lifetime earnings, next, they had the baby born on the land declared “legally dead” and committed probate fraud against him, then, they acted as creditors against his earthly estate and filed maritime salvage liens against his “vessel” for his estimated “share” of the expenses of the United States of America, Incorporated—-known as the “National Debt”.
All this was done to jacob-joseph and to you and virtually every other child born on the land of the State of America before anyone left grade school. You were systematically entrapped, defrauded, kidnapped, transported to a foreign jurisdiction, suffered identity theft and mischaracterization, and were robbed of your natural rights and immunities by corporations in your employment and by individuals and institutions pretending to “represent” your lawful government and to act as your “trustees”.
This was done without your knowledge or consent on the basis of Third Party contracts (entered by the Franklin Delano Roosevelt Administration and your Mother) and under conditions of semantic and material deceit resulting in tainted, unilateral, undisclosed and grossly inequitable contracts serving to demean and enslave you.
After they killed off the baby born on the land via this legalized identity theft, the perpetrators settled in as parasites to feed off your labor and to “hypothecate” debt against your land, your homes, your businesses and everything else naturally belonging to you. The hired help— governmental services corporations merely under contract to provide stipulated services to the States—stole your identity, your credit cards, and your earthly estate—and proceeded to lord it over you, all without your knowledge or consent.
The facts of the fraud are revealed by “your” Birth Certificate, which is actually your fraudulent Death Certificate. Look at this document closely. It is issued by the Registrar, an Officer of the Probate Court— proof positive that your earthly estate has been probated. It is issued on bond paper, representing a debt and “promise to pay” bonds that have been issued based on the value of your earthly ESTATE, all numbered and securitized to benefit the United States of America, Incorporated and the very bankers and lawyers and politicians responsible for this deplorable criminality. It is issued to your given name styled in all capital letters, or in our example, to “JACOB JOSEPH LEW”.
This particular incorporated entity is an ESTATE trust created under Washington, DC Municipal Statute, Chapter 2, Vital Statistics, Section 7-201, paragraph 10. It is created under the auspices of the Washington, DC Municipality, a separate, independent, international city-state ruled as a plenary oligarchy by the members of the US CONGRESS, which acts as a Board of Directors for the UNITED STATES, INCORPORATED, which as you learned at First Base, owned and operated by the INTERNATIONAL MONETARY FUND, an agency of the UNITED NATIONS CORPORATION.
Right now, because the bankruptcy of the United States of America, Incorporated, finally settled on July 1, 2013, the parasites are setting up shop with new hosts—-the United Nations City State located in New York State. They are booting up a new “FEDERAL RESERVE” under UN auspices and launching a new UNITED STATES OF AMERICA, INCORPORATED, and attempting to roll over the old ESTATE trusts operated under names styled as in “JACOB JOSEPH LEW” and to “redefine” what is left of “you” as a transmitting utility operated as “JACOB J. LEW”.
If we don’t put a stop to this craziness ourselves every commercial corporation and petty despot on earth will be misusing our names and naming legal fiction entities after us and claiming to have contracts and relationships with “them” and us that don’t exist and accusing us of owing their debts or owing them for services we never ordered, and similar outrages.
We will have not only the New York State and the State of New York (old Federal Reserve version) and the STATE OF NEW YORK (IMF version) and NEW YORK (their latest outrage), but we will have The state of new York, and the State of new York, and the New State of York and the State of New york and the new state of york, and as many permutations of style and spelling and order of words you can imagine —–all of which are created for the sole purpose of semantic deceit, identity theft, and criminal fraud.
It’s time to bluntly accuse these false trustees of the crimes they have committed and continue to commit against the Americans, Australians, Canadians, most Europeans, Japanese, and others who have been victimized by the same or very similar “Systems” of fraud and enslavement perpetuated by these international banking cartels, the Bar Associations, and criminal politicians.
Right now, the push is on to “consolidate sovereign debt” and use it as leverage against all the nations and governments of the world and to give control of this leverage to the handful of evil geniuses running the UNITED NATIONS CORPORATION. The problem is that no such legitimate debts exist, and because of the fraud involved, no valid claims can be addressed to any of the people of any country. This mammoth faux pas and accounting nightmare has been caused by criminally corrupt governments, bankers, and lawyers—-and yes, by people who have been complacent and who have bought into the propaganda and the lies spun by these self-interested con artists for generations.
Now you know how the spiders spin their webs and you know how you wound up “removed” to Puerto Rican jurisdiction, paying debts you don’t owe, and so much more.
Tell your friends. Tell your neighbors. Set up your Grand Juries. Elect your Sheriffs and Judges to execute the Law of the Land against these hyenas. Boycott them and refuse service and refuse to pay any taxes for unwanted services. Serve your Notices to the members of Con- Gress that they do NOT “represent” you and do NOT represent your organic state. Do the same with the so-called Governors. Don’t let anyone or anything “represent” you. Show up and present yourself. Bring suit against the probate court for fraud perpetuated against you. File liens and commercial affidavits against these corporations, judges, clerks, lawyers, bankers, politicians—-the whole kit and caboodle. They aren’t “public officials”. None of them have taken a single proper oath of any public office. They are nothing but private corporate “officers” impersonating lawful public officials—-criminals, in other words. They are all con artists knowingly or unknowingly occupying vacated public offices and abusing the assumed “powers” of those offices for private gain.
Most of all, inform the sheriffs, police, provost marshals, militia members, and members of the military. Educate them so that they have no excuse for condoning, supporting, or enforcing the “acts” and “orders” of these charlatans.
December 1st, 2014 by olddog
There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but this time the stakes are even higher.
When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing effect on financial markets. As you will read about below, energy companies now account for approximately 20 percent of the junk bond market. And a junk bond implosion is usually a signal that a major stock market crash is on the way. So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street.
It would be difficult to overstate the importance of the shale oil boom to the U.S. economy. Thanks to this boom, the United States has become the largest oil producer on the entire planet.
Yes, the U.S. now actually produces more oil than either Saudi Arabia or Russia. This “revolution” has resulted in the creation of millions of jobs since the last recession, and it has been one of the key factors that has kept the percentage of Americans that are employed fairly stable.
Unfortunately, the shale oil boom is coming to an abrupt end. As a recent Vox article discussed, OPEC has essentially declared a price war on U.S. shale oil producers…
For all intents and purposes, OPEC is now engaged in a “price war” with the United States. What that means is that it’s very cheap to pump oil out of places like Saudi Arabia and Kuwait. But it’s more expensive to extract oil from shale formations in places like Texas and North Dakota. So as the price of oil keeps falling, some US producers may become unprofitable and go out of business. The result? Oil prices will stabilize and OPEC maintains its market share.
If the price of oil stays at this level or continues falling, we will see a significant number of U.S. shale oil companies go out of business and large numbers of jobs will be lost. The Saudis know how to play hardball, and they are absolutely ruthless. In fact, we have seen this kind of scenario happen before…
Robert McNally, a White House adviser to former President George W. Bush and president of the Rapidan Group energy consultancy, told Reuters that Saudi Arabia “will accept a price decline necessary to sweat whatever supply cuts are needed to balance the market out of the US shale oil sector.” Even legendary oil man T. Boone Pickens believes Saudi Arabia is in a stand-off with US drillers and frackers to “see how the shale boys are going to stand up to a cheaper price.” This has happened once before. By the mid-1980’s, as oil output from Alaska’s North Slope and the North Sea came on line (combined production of around 5-6 million barrels a day), OPEC set off a price war to compete for market share. As a result, the price of oil sank from around $40 to just under $10 a barrel by 1986.
But the energy sector has been one of the only bright spots for the U.S. economy in recent years. If this sector starts collapsing, it is going to have a dramatic negative impact on our economic outlook. For example, just consider the following numbers from a recent Business Insider article…
Specifically, if prices get too low, then energy companies won’t be able to cover the cost of production in the US. This spending by energy companies, also known as capital expenditures, is responsible for a lot of jobs.
“The Energy sector accounts for roughly one-third of S&P 500 capex and nearly 25% of combined capex and R&D spending,” Goldman Sachs’ Amanda Sneider writes.
Even more troubling is what this could mean for the financial markets.
As I mentioned above, energy companies now account for close to 20 percent of the entire junk bond market. As those companies start to fail and those bonds start to go bad, that is going to hit our major banks really hard…
Everyone could suffer if the collapse triggers a wave of defaults through the high-yield debt market, and in turn, hits stocks. The first to fall: the banks that were last hit by the housing crisis.
Why could that happen?
Well, energy companies make up anywhere from 15 to 20 percent of all U.S. junk debt, according to various sources.
It would be hard to overstate the seriousness of what the markets could potentially be facing.
One analyst summed it up to CNBC this way…
“This is the one thing I’ve seen over and over again,” said Larry McDonald, head of U.S strategy at Newedge USA’s macro group. “When high yield underperforms equity, a major credit event occurs. It’s the canary in the coal mine.“
The last time junk bonds collapsed, a major stock market crash followed fairly rapidly.
And those that were hardest hit were the big Wall Street banks…
During the last high-yield collapse, which centered around debt tied to the housing sector, Citigroup lost 63 percent of its value in the following 60 days, Kensho shows. Bank of America was cut in half.
I understand that some of this information is too technical for a lot of people, but the bottom line is this…
Watch junk bonds. When they start crashing it is a sign that a major stock market collapse is right at the door.
At this point, even the mainstream media is warning about this. Just consider the following excerpt from a recent CNN article…
That swing away from junk bonds often happens shortly before stock market downturns.
“High yield does provide useful sell signals to equity investors,” Barclays analysts concluded in a recent report.
Barclays combed through the past dozen years of data. The warning signal they found is a 30% or greater increase in the spread between Treasuries and junk bonds before a dip.
If you have been waiting for the next major financial collapse, what you have just read in this article indicates that it is now closer than it has ever been.
Over the coming weeks, keep your eye on the price of oil, keep your eye on the junk bond market and keep your eye on the big banks.
Trouble is brewing, and nobody is quite sure exactly what comes next.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
September 23rd, 2014 by olddog
BY I M POWER / WEDNESDAY, 17 SEPTEMBER 2014 / PUBLISHED IN ABSOLUTE DATA
The Economist: Mainstream globalist propaganda reveals East/West conflict is a farce
published on redifinggod blog, on September 15, 2014
For anyone who might still believe that the US/NATO versus Russia/BRICS geopolitical confrontation is real…
…here is a little blast from the past…
…It is the cover from the January 9, 1988 issue of The Economist magazine. Note the phoenix rising from the ashes of burning national currencies, including the dollar.
The cover relates to an article on pages 9-10 titled Get ready for the phoenix, which foretold the financial drama we are now watching unfold in real time. Upon stumbling across them, I found the cover art and the article so striking that I thought they might be an online forgery, so I verified their authenticity with a research librarian at the Newspaper and Current Periodical Room of the Library of Congress. Both the cover and the article are quite real. Here are some excerpts (not necessarily in the order in which they appear in the article)…
>>> THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century…
…The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power…
…The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF…
…Governments are far from ready to subordinate their domestic objectives to the goal of international stability. Several bigger exchange-rate upsets, a few more stock-market crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice…
…Pencil in the phoenix for around 2018, and welcome it when it comes. <<<
It’s all there: the SDR “cocktail” (basket) of currencies, the IMF’s central role, and the need to create “exchange rate upsets, stock-market crashes, and economic slumps” to make the public accept it. Seeing such an accurate forecast/blueprint, one wonders who was behind its publishing. So if we look into The Economist magazine, we find it is headquartered just a few blocks from the City of London and is owned by The Economist Group, which itself is owned by some rather interesting characters…
“The Economist Group is 50% owned by Pearson PLC via The Financial Times Limited. The bulk of the remaining shares are held by individual shareholders including the Cadbury, Rothschild, Schroder, Agnelli and other family interests as well as a number of staff and former staff shareholders.”
Beyond the Rothschild and Agnelli families, who are widely rumored to be part of the Illuminati, the Schroder family is particularly worth noting. The Schroders (also spelled Schroeder) are an old German ruling class family from Hamburg. One of the Schroder brood, Johann Heinrich Schroder, settled in London and founded J. Henry Schroder & Co. (now known simply as “Schroders,” one of the UKs largest investment banks) back in 1818. Later, in 1923, the firm expanded into New York by establishing J. Henry Schroder Banking Corporation. It is here that they joined with the Rockefeller family through Avery Rockefeller.
According to Avery’s bio…
“In 1928, Rockefeller joined the storied J. Henry Schroder Banking Corporation and became Assistant Treasurer in 1931. On 8 July 1936, Rockefeller co-founded Schroder, Rockefeller & Co., Inc. Its purpose was to take over the underwriting and general securities business formerly carried out by the J. Henry Schroder Banking Corporation.”
Schroder, Rockefeller & Co. is widely viewed as having been an integral part of the globalist bankers’ financial support infrastructure for the Nazis. And another of the Schroders, Johann Heinrich’s great-grandson, Baron Kurt von Schroeder
(shown here in his Nuremberg picture)…
…played a pivotal role..
“Schroeder was an important member of the Freundeskreis der Wirtschaft, which provided Adolf Hitler and his party with enough financial support to survive through the early 1930s. He also hosted a critical meeting on 4 January 1933 between Papen and Hitler that eventually led to Hitler’s appointment as Chancellor of Germany.”
The Nazis had (and continue to have) deep ties to the Anglo-American banking establishment, and also to The Economist. So this article came from a publication connected to the supposed “Nazi/Zionist Cabal.” Keep this in mind as we take a look at what that Cabal’s supposed enemies, the Chinese, are saying about the currently-unfolding global financial drama.
The Blueprint Revealed
I recently ran across a China Daily article titled Bracing for next big financial crisis, written by Giles Chance (a former World Bank staffer who is a professor at the Guanghua School of Management at Peking University). I strongly recommend following the link and reading the entire article, because it succinctly lays out the globalist plans and talking points for the next economic crisis. Once you correct for the article’s spin, it tells you everything. Here are some select passages, with my commentary added in brackets…
>>> Above the central banks, including the PBOC [People’s Bank of China], stands the Bank of International Settlements in Basel, Switzerland, which oversees the activities of national banking and monetary systems. The integration of markets and economies in a globalized world has given the BIS an increasingly important role in providing global financial stability… <<<
[So here we have a Chinese propaganda organ telling us that the BIS is in charge of all the central banks, including China’s. This is in spite of the fact that the BIS was a joint creation of the London bankers and the Nazis (who are supposedly the bad guys the BRICS are fighting). I will share more about the BIS later in the article.]
>>> In 2007, the year before the financial crash, the BIS warned that the global financial system was becoming overstretched and that the banking systems in the developed world were coming under pressure. But although the BIS has great influence, it does not have the power to compel any central bank. It can advise and warn, but it cannot give orders, and it does not issue its own money. As we know, the Federal Reserve Bank of New York and the European Central Bank in Brussels did not act on the well-timed warning from the BIS. <<<
[This passage establishes the BIS’s wisdom and foresight, as opposed to the foolishness of the national central banks. It also carries the implication that the BIS should be given the power to compel the national central banks to follow its wise guidance. Not mentioned is the fact that the financial crash was deliberately triggered by the very bankers he’s writing about, and that the foolishness of the national central banks’ responses was quite calculated. It allowed the banksters to harvest enormous wealth from the public and set up the pretext for the global institutions to step in and “provide stability.”]
>>> Against that background, you would expect today that if the BIS issued another warning, the world would pay attention. At the end of June, BIS General Manager Jaime Caruana gave a speech at its headquarters that contained a strong note of caution: “A new policy compass is needed to help the global economy step out of the shadow of the global financial crisis…” <<<
[By “a new policy compass,” he means a transition from the current dollar-based global financial system to the new, more centralized SDR-based multipolar/multilateral financial system]
>>> In his speech, Caruana blamed the continued dependence by the advanced economies, led by the United States, on ultra-loose monetary policy in place of the necessary deep-seated structural changes. <<<
[Here, he’s setting up the Federal Reserve (and the EU and Japan) to take the blame.]
>>> Caruana’s warning was reinforced by William White, head of the Economic Review and Development Committee at the headquarters of the Organization for Economic Co-operation and Development in Paris. As one of the very few experts who accurately forecast the 2008 crash, while head of research at the BIS, White is listened to with respect around the world.
In a recent interview, he said: “Riskfree bond rates are at enormously low levels, spreads are very low … it all looks and feels like 2007. And frankly, I think it’s worse than 2007…” <<<
[Here, another “wise” person from the BIS is warning that we’re approaching another financial crisis (that he and his buddies are engineering). It’s pretty easy to be a forecaster when you’re in on the plan. So if this year looks and feels like 2007, will next year be the next 2008?]
>>> But the US Federal Reserve Bank, the controller of the dollar-based global economy, does not agree with the BIS or William White. Several days after Caruana’s speech, Fed Governor Janet Yellen made it clear that she does not think that extremely low interest rates were the main culprit in the 2008 financial crisis, nor constitute the main problem now. <<<
[This is a very instructive passage. Note how the author specifically mentions the “dollar-based global economy.” Also note how he again paints the Federal Reserve as the morons who won’t listen to the sage globalists at the BIS. In this, he is setting up Janet Yellen for her upcoming scapegoat role, and he is tying interest rates to what will bring her down. The author says all this while failing to disclose that Janet Yellen is a member of the Board of Directors of the BIS, as is PBOC governor Zhou Xiaochuan]
>>> The disagreement between these two powerful financial institutions, the BIS and the New York Federal Reserve, has increased the risk that markets will crash as interest rates rise. Can China’s stability withstand another financial crash? Or would China emerge stronger? <<<
[Bingo! Here we are shown the trigger for the next financial crisis: Yellen will raise interest rates either “too soon” or by “too much” and crash the markets. “If only the wise BIS had had the power to rein in the Fed’s foolishness sooner, we could have avoided this,” they’ll say. Now let’s read on and see if China will emerge stronger.]
>>> China certainly has economic problems… But the forward-looking, courageous determination of its government to grasp some important nettles in its economic reform program will make it a key part of any solution to another Western financial crisis. <<<
[Here, the author does the requisite ass-kissing to his Chinese hosts, then boldly states that China will be “a key part of any solution to another Western financial crisis.” Solution, as in problem – reaction – solution. And the article has already shown us who caused the problem part of the equation: the unruly Western central banks, especially the Fed.]
>>> With the BIS and the US Federal Reserve Bank on opposite sides of the fence about global financial stability, the likelihood of another global financial crisis grows. But next time would indeed be different, because Western taxpayers would refuse to pay for another huge bank bailout, as they did in 2008-09. <<<
[So again, in case you missed it: BIS = good = wise = solution and US Federal Reserve Bank = bad = problem = another global financial crisis.]
>>> The emerging world, led by China, is economically in a much stronger position relative to the advanced countries than six years ago. Although in 2009 China may not have expected its sudden promotion to world power status, the country’s emergence since the crash as a global pillar of growth has significantly increased its global influence. <<<
[China didn’t expect its promotion to world power status? Au contraire, they knew it was coming because the globalists promised it to them, just like they promised what comes next…]
>>> Another crash on Wall Street would reinforce the attraction of the renminbi as a store of value and anchor of stability for other regional currencies…
It would underpin China’s global appeal as a peaceful force for stability in a volatile and troubled world, and hasten the re-engineering of shareholding in the major organizations of global governance, particularly at the World Bank and the IMF. Prepared or not, in the event of another crash China would find itself in a position of even greater global leadership and responsibility than today. <<<
[So here we are told that the next crash will be China’s gateway to top dog status, and it will “hasten the re-engineering of shareholding in the major organizations of global governance, particularly at the World Bank and the IMF.” This is exactly what I’ve been warning about. When the next crash comes, watch them break out their gold and other commodities to underwrite the global financial system in exchange for the governance changes.]
Now that we are done de-spinning the article, there are two things it brings up that deserve to be examined: the BIS and the Fed’s raising of interest rates…
The Bank for International Settlements (BIS)
This is the cover art for the BIS Archive Guide…
…It proudly features Montagu Norman (the Bank of England Governor from 1920-1944, circled in pink) and Hjalmar Schacht (the President of the Reichsbank from 1923-31 and 1933-39, and Hitler’s Economics Minister from 1934 – 1937, circled in red). You’ll hear more about these two a little later in the article. But first, let’s have a look at a little piece of BIS history…
>>> Between 1933 and 1945 the BIS board of directors included Walther Funk, a prominent Nazi official, and Emil Puhl, who were both convicted of war crimes at the Nuremberg trials after World War II, as well as Hermann Schmitz, the director of IG Farben, and Baron [Kurt] von Schroeder, the owner of the J.H.Stein Bank, which held the deposits of the Gestapo. There were allegations that the BIS had helped the Germans loot assets from occupied countries during World War II.
As a result of these allegations, at the Bretton Woods Conference held in July 1944, Norway proposed the “liquidation of the Bank for International Settlements at the earliest possible moment”. This resulted in the BIS being the subject of a disagreement between the American and British delegations. The liquidation of the bank was supported by other European delegates, as well as the United States (including Harry Dexter White, Secretary of the Treasury, and Henry Morgenthau), but opposed by John Maynard Keynes, head of the British delegation.
Fearing that the BIS would be dissolved by President Franklin Delano Roosevelt, Keynes went to Morgenthau hoping to prevent the dissolution, or have it postponed, but the next day the dissolution of the BIS was approved. However, the liquidation of the bank was never actually undertaken. In April 1945, the new U.S. president Harry S. Truman and the British government suspended the dissolution, and the decision to liquidate the BIS was officially reversed in 1948. <<<
So why were the British bankers so opposed to shutting down a bank with strong Nazi ties, you ask? Well, have a look at this UK Telegraph article (use this Internet Archive link if the direct link isn’t working)…
I recommend reading the whole article, as it contains more juicy information than I can include in this post. Here are the most relevant excerpts for the topic at hand (with my comments in brackets)…
>>> The BIS was founded in 1930, in effect by Montagu Norman and his close friend Hjalmar Schacht, the former president of the Reichsbank, known as the father of the Nazi economic miracle. Schacht even referred to the BIS as “my” bank. The BIS is a unique hybrid: a commercial bank protected by international treaty. Its assets can never be seized, even in times of war. It pays no taxes on profits…
A key sentence in the Bank of England documents is found on page 1,295. It reads: “The general attitude of the Bank of England directors of the BIS during the war was governed by their anxiety to keep the BIS to play its part in the solution of post-war problems”… [the bankers created the problem (World War 2), and they used the BIS to institute their solution (more centralized control of the world’s financial systems)]
…And here the secret history of the BIS and its strong relationship with the Bank of England becomes ever more murky.
During the war the BIS proclaimed that it was neutral, a view supported by the Bank of England. In fact the BIS was so entwined with the Nazi economy that it helped keep the Third Reich in business. It carried out foreign exchange deals for the Reichsbank; it accepted looted Nazi gold; it recognized the puppet regimes installed in occupied countries, which, together with the Third Reich, soon controlled the majority of the bank’s shares.
Indeed, the BIS was so useful for the Nazis that Emil Puhl, the vice-president of the Reichsbank and BIS director, referred to the BIS as the Reichsbank’s only “foreign branch”…
Every other month it hosts the Global Economy Meetings, where 60 of the most powerful central bankers, including Mark Carney, Governor of the Bank of England, meet. No details of meetings are released, even though the attendees are public servants, charged with managing national economies.
The BIS also hosts the Basel Committee on Banking Supervision, which regulates commercial banks, and the new Financial Stability Board, which coordinates national regulatory authorities. The BIS has made itself the central pillar of the global financial system. <<<
Speaking of these Global Economy Meetings, guess who attends them? According to the BIS website…
“The GEM comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP. The members of the GEM are the central bank Governors from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom and the United States and also the President of the European Central Bank and the President of the Federal Reserve Bank of New York. Governors from several other central banks attend the GEM as observers.”
So as you can see, beyond the public theater offered in Ukraine and the Middle East, and beyond all the East versus West propaganda offered in the mainstream and alternative media, China and the BRICS are dancing to the tune of the BIS puppet-masters just like everyone else. There is NO CONFLICT between “Nazi/Zionist” transatlantic bankers and BRICS bankers. In fact, Chinese and Russian banks (along with everyone else) are in the process of implementing the Basel 3 bank reforms put out by the Basel Committee on Banking Supervision, which is hosted by the BIS.
According to this China Daily article…
“Under China’s implementation of Basel III guidelines, systemically important banks need a minimum Tier 1 capital ratio of 9.5 percent, with total buffers of 11.5 percent, before the end of 2018.”
…and according to this Russia Today article…
“Basel III – a new set of global banking standards scheduled to come into force in Russia this year – should become another stimulus for the country’s lenders to rely on its own funds rather than State support. One of the key Basel III requirements is tighter rules for a banks’ own capital.”
The whole East versus West propaganda campaign is aimed at giving the hypnotized public a fairytale storyline for all the changes they’re going through. It also offers them scapegoats on whom they can pin all their problems. The international bankers are going to crash the current system and blame it on the Federal Reserve, then they’re going to introduce the BRICS as the heroes who save the day.
In fact, part of the purpose for the recent creation of the BRICS Bank is to give the BRICS a lifeboat while the West founders from the crash. The BRICS Contingent Reserve Arrangement…
“is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.
The objective of this reserve is to provide protection against global liquidity pressures. This includes currency issues where members’ national currencies are being adversely affected by global financial pressures.
The Bank would also provide assistance to other countries suffering from the economic volatility in the wake of the United States’ exit from its expansionary monetary policy.“
All this being said, when will the crash begin, and how long will it last? Given that the last crash lasted from 2007-2009 and contained a shocking “Lehman Moment,” it stands to reason that the next crash would also be a slow-motion train wreck with an even more shocking Lehman Moment. If the propaganda setup for the collapse is any indicator, the train wreck and New Lehman Moment will involve the raising of the Fed interest rate by Janet Yellen and perhaps a black swan event like a false-flag cyberattack or terrorist attack.
Looking at the interest rate component, the Fed will be meeting this Tuesday and Wednesday (September 16-17), and that could give us an indication of when things might kick off. The general consensus of the Fed watchers seems to be that interest rates will go up starting in the summer of 2015, with some estimates saying as early as March 2015. Will this start the train wreck? And since the BRICS bank isn’t scheduled to start lending until 2016, the New Lehman might not happen till then. But then again, they can always surprise us.
August 2nd, 2014 by olddog
Over a year ago I published an essay entitled ‘The Linchpin Lie: How Global Collapse Will Be Sold To The Masses’. This essay addressed efforts by the ever malicious Rand Corporation to create a false narrative surrounding the possibility of global collapse. Linchpin Theory, as it was named by it’s originator and Rand Corp. employee, John Casti, is I believe the very future of propaganda.
Every engineered crisis needs a clever cover story, and in Linchpin Theory, we are told that all human catastrophe is a mere natural product of the “over complexity” within various systems. Yes, there is no accounting of false flag geopolitics or elitist conspiracy, no acknowledgment of deliberately initiated chaos; such things do not exist in the world of “linchpins”. Rather, the Rand Corporation would have us believe that the world is a massive game of Jenga, and the supporting pieces just remove themselves from the teetering structure by magical and coincidental causality.
Today, the linchpin lie is now being carefully inserted into the mainstream narrative. I can’t say I was shocked to hear Alan Greenspan use its basic premise when he recently stated that:
I have come to the conclusion that bubbles…are a function of human nature. We don’t have enough observations, but my tentative hypothesis to what we’re dealing with is that both a necessary and sufficient condition for the emergence of a bubble is a protracted period of stable economic activity at low inflation. So it is a very difficult policy problem. I do believe that central banks that believe they can quell bubbles are living in a state of unrealism.
It is important that we understand what Greenspan is actually doing here. The former Fed chairman is asserting that economic bubbles like the derivatives bubble of 2008 are a “natural function”, like the seasons, and are out of the control of central bankers. The truth is that central bankers have never tried to “quell” economic bubbles, they have been deliberately creating them in order to position the global economy into a crisis which they can then exploit. Greenspan is not only diverting blame for all the past and future economic crashes central banks have engineered, he is also setting the propaganda stage for a great change in the dynamic of the central banking concept – what the IMF’s Christine Lagarde calls the “global economic reset”.
The current central banking structure gives the illusion of separation and sovereignty. Most people who have not researched the nature of the international banking cartel believe that the Federal Reserve, for instance, is a separate national entity from the Central Bank of Russia, or the Central Bank of China. They believe that these institutions act of their own accord rather than in concert with each other. The reality is, there is no Federal Reserve. There is no Central Bank of Russia. There are no separate entities. There are no Western banks and there are no BRICS. All of these banking edifices are merely front organizations for global financiers, as Council on Foreign Relations insider (and friend to the Rockefellers) Carroll Quigley made clear in his book, Tragedy And Hope:
It must not be felt that the heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks.
A “global economic reset”, I suspect, will consist of a grand shift away from covert cooperation between central banks to an OPENLY centralized one world banking system, predicated on the concepts put forward by the IMF and led by the Bank for International Settlements, which has always been behind the scenes handing down commandments to the seemingly separate central banks of nations.
In order for this “reset” to be achieved, however, the establishment needs a historically monumental distraction. A distraction so confounding and terrifying that by the time the public has a chance to examine the situation rationally, the elites have already tightened the noose.
I have been warning ever since the beginning of the derivatives/debt collapse of 2007/2008 that the international financiers and globalists who created the artificially low interest rates and fiat lending bonanza would one day be required to fashion a considerably dangerous event in order to trigger the final collapse of the dollar based monetary system and replace it with a new currency (or basket of currencies), along with a new centralized financial authority.
This distracting event would have to rely on three very important strategies in order to succeed –
1) The use of what I call the “scattershot effect”; a swarm of smaller crises growing exponentially until it blurs together to create one dynamic calamity.
2) The use of multiple false paradigms in order to confuse the masses and pit them against one another in an absurd fight over fake and meaningless causes.
3) The use of deceptive benevolence on the part of the financial elite as they tap dance in to act as global “mediators”, ready to save the public from itself.
The end result would be a new brand of “world war” rather unique to history.
When most people imagine WWIII, they immediately envision images of nuclear bombs and mushroom clouds; however, I believe that when world war erupts, it may progress far differently from our cinematic assumptions. Regional conflicts are very likely, there is no doubt, but if one places himself in the shoes of the elites, one realizes that all out mechanized nuclear Armageddon is not really necessary to achieve the desired result of global governance.
Economic warfare alone could be extremely effective in initiating full spectrum fiscal implosion as well as mass starvation, mass panic, and mass desperation. All the signs lead me to believe that financial combat and 4th generation warfare will be used in the place of large armies and missiles.
The Scattershot Effect
Consider the sheer scope and number of crisis situations that have reached explosive proportions just in the past six months.
Syria continues to destabilize due to ISIS insurgents supported by the U.S., Saudi Arabia, and Israel; it is a horrifying storm which is now bleeding into other nations such as Iraq.
Iraq is on the verge of complete disintegration as the same western organized ISIS moves towards the outskirts of Baghdad.
Libya has imploded, with the American embassy evacuated, as well as the French and British, as various militias battle for supremacy.
The Ukraine crisis is nearing mutation into another beast entirely after the attack on Malaysian flight MH17. In just the past week, the EU has instituted sanctions against Russia, fighting has become even more fierce around Donetsk, Russia has been accused of firing artillery into Ukraine, and the U.S. now claims that Russia has violated the terms of the Intermediate Range Nuclear Forces treaty.
In the meantime, the Federal Reserve continues to taper QE3 while ignoring the unprecedented equities bubble they have birthed in the stock market, as well as refusing to answer the question as to who will actually buy U.S. Treasury debt if they do not? Our secret friend from Belgium? And what if this secret friend is, as I suspect, actually the IMF/BIS global loan shark duo? What then? Do we become yet another third world African-style debtor owing our very infrastructure to a financial bureaucracy on the other side of the world?
And what about the Baltic Dry Index, one of the few measures of global shipping demand that cannot be manipulated by outside money interests? Well, the BDI is back down to historic lows, falling 65% since January, signaling that the so-called “economic recovery” is not at all what it is cracked up to be.
Add to this the deluge of illegal immigration on the southern border, aided by the Obama Administration, as well as possible presidential impeachment and lawsuit proceedings, and you have a recipe for total chaos of the fiscal variety.
If the first six to seven months of 2014 have been this frenetic, how bad will the next six months be?
We are all aware of the prevalence of the false Left/Right paradigm in American politics. Hopefully most people in the Liberty Movement understand, for example, that any impeachment or lawsuit proceedings against Barack Obama will be nothing more than a crafted circus designed to accomplish nothing – a con game to placate conservatives with useless top-down solutions while the country burns around their ears.
There are other false paradigms that are not so clear to some, though…
The false Israel/Hamas paradigm has certainly duped a particular subsection of Americans and even a few patriots, even though it is historical fact that the creation of Hamas itself was funded and supported by the Israeli government. Why do Israeli politicians put money and arms at the disposal of Muslim extremist groups like Hamas and ISIS, only to enter into brutal conflict with them later? Could it be that the Israeli government does not have the best interests of the Israeli people at heart? Could it be that Israel is being used by internationalists as a catalyst for chaos? It is vital that we question the intentions behind such contrary actions in the Middle East.
Why has the U.S. government (Democrats and Republicans), Saudi Arabia, and Israel put support behind the ISIS caliphate in Iraq after spending decades of time, billions in resources, and thousands of lives, attempting to overrun and dominate the region? Why are these governments creating enemies that will later try to harm us?
It is all about false paradigms; dividing the masses into numerous conflicting sides and pitting them against each other when they should be fighting against the elites.
The false East/West paradigm is perhaps the most dangerous lie facing free men today. It is a lie that may very well define our generation if not our century. I have outlined in multiple articles the substantial evidence that proves beyond a doubt that Russia and China are members of the globalist agenda, and that the tensions between our two hemispheres are completely fabricated.
The latest announcement of a BRICS bank to rival the IMF is yet another scheme to perpetuate the illusion that the elites of these nations are at odds. In fact, the BRICS conference mission statement makes it clear that developing nations have no intention of breaking from the IMF (and certainly not the BIS). Instead, the BRICS bank is meant to provide “leverage” to “force” the IMF to become more inclusive, and hand over more power and participation. Vladimir Putin had this to say at the latest summit:
In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this.
Brazilian President Dilma Rousseff insisted that the BRICS were not seeking to distance themselves from the Washington-based International Monetary Fund:
On the contrary, we wish to democratize it and make it as representative as possible…
Putin and the BRICS commonly rail against the “unipolar” financial system revolving around the U.S. dollar, but in the end they are only controlled opposition, and their solution is to place even more power into the hands of the IMF (a supposedly U.S. government controlled institution), creating a truly unipolar world order. If the U.S. loses its IMF veto status this year due to lack of allocated funds, and the BRICS dump the dollar as world reserve, this may very well happen.
As sanctions between Russia and the U.S. snowball, a perfect rationalization for a dollar decoupling will be created that very few people would have believed possible only a few years ago. It is only a matter of time before fiscal warfare escalates to destructive levels. Russia will inevitably cut off gas exports to the EU, and the BRICS will inevitably drop the U.S. dollar as a world reserve standard.
The U.S. relationship to the EU is also currently being presented as dubious, and this is not by accident. Failing relations between America and Germany are yet more theater for the masses to chew on. Western allies have been spying on each other for decades, but somehow the exposure of CIA activities in Germany is shocking news? The NY Fed suddenly attacks Deutsche Bank, seeking expanded monitoring and regulation? Germany’s business interests are highly damaged by U.S. sanctions against Russia? It would seem as though someone is trying to create an artificial divide between elements of the EU and the U.S.
I believe that the narrative is being prepared for a faked financial breakup between the U.S. and many of its former allies, isolating the U.S., and destroying the dollar, but to what end? To answer that question, we must ask WHO ultimately benefits from these actions?
The Rise Of The Hero Bankers
In June of last year, the Bank for International Settlements, the central bank of central banks whose history began with the financial support of the Third Reich, released a statement warning that “easy money” from central banks was creating a dangerous bubble in stock markets around the world.
The IMF, too, has been pushing warnings of stock bubble collapse into the mainstream.
In June of this year, the BIS, a normally obscure and secretive organization, released another statement pronouncing that government had been led into a “false sense of security” by easy monetary policy and low interest rates, making the world economy perpetually unstable.
For an organization so covert and occult, the BIS sure has become rather candid lately. Frankly, I agree with everything they have said. However, I do not agree with the hypocrisy of the BIS, which dominates the decisions of all of its member banks, publicly criticizing policies which it most likely scripted itself. Why would the BIS suddenly denounce fiscal methods it used to promote? Because the BIS is setting itself up as the great prognosticator of a collapse that IT HELPED ENGINEER.
After the great financial war has subsided, and the people are suitably poverty stricken and desperate, it will be institutions like the BIS and IMF that swoop in to “save the day”. Their offer will be to consolidate economic control into the hands of an elite group of bankers “not affiliated” with any particular nation state, thereby insulating them from “political concerns”. The argument will be that national sovereignty is a bane on the back of humanity. They will claim that the catastrophe will continue until we “simplify” and streamline our economic and political systems. They will present themselves as the heroes of the age; the ones who predicted the crisis would occur, and the ones who had a solution ready to save the day (after sufficient death and destruction, of course).
As long as people remain obsessed with false paradigms and faux enemies, the establishment’s goal of complete centralized dominance will be predictably attainable.
If we change our focus to the internationalists as the true danger instead of playing their game by their rules, then things will become far more interesting…
You can contact Brandon Smith at: firstname.lastname@example.org. Alt-Market, where this article first appeared, is an organization designed to help you find like-minded activists and preppers in your local area so that you can network and construct communities for mutual aid and defense. Join Alt-Market.com today and learn what it means to step away from the system and build something better.
If we change our focus to the internationalists as the true danger instead of playing their game by their rules, then things will become far more interesting… !!!!!! Well now, isn’t it strange that this old high school drop out has been saying the same thing for years.
ELIMINATE THE ELITE BANKERS BEFORE IT’S TOO LATE.
July 15th, 2014 by olddog
By Tony Cartalucci
When the special interests who created and direct the agenda of the European Union disagree with member states, the true nature of this supranational enterprise becomes painfully apparent – one of dictatorial special interests pursing regional policy that benefits none of its individual member states. No example of this can be clearer than the dispute that has emerged over the construction of Russia’s South Stream natural gas pipeline set to run through Bulgaria, Serbia, Hungary, and Italy.
The pipeline produces a large number of benefits for each of the nations it passes through, as well as for energy markets on either end of the pipeline. For the people and governments of these nations set to benefit most from the pipeline, the deal is an attractive, long-term investment. For the special interests that have created and currently direct the EU – on the other hand – it poses as a direct threat to their designs of continued expansion and corporate-financier hegemony beyond the collective borders of today’s EU.
For the hegemon, coexistence and collaboration are not options – thus the benefits of the South Stream pipeline escape them. Instead, these hegemonic special interests seek to control their own pipeline and energy markets on either side of it, and this can be seen developing along several fronts including the Southern Corridor Project, beginning in Azerbaijan along the Caspian Sea.
Energy and foreign policy expert Sinan Ulgen of the US government and corporate-financier funded Carnegie Europe think-tank complained about the disparity between the EU Commission’s stance, and that of individual EU member states in an Anadolu Agency (AA) article titled, “Russian South Stream gas pipeline divides EU,” stating:
“…the EU’s main concern about South Stream is that the project would increase its dependence on Russian gas. Last year a third of its consumed gas was supplied by Russia.
Additionally the AA article would state:
While the European Commission opposes Russia’s South Stream gas pipeline project, certain EU countries like Austria and Italy continue to openly support the world’s most expensive pipeline project, which aims to transport Russian gas by bypassing Ukraine.
For the last two years, Russia has signed bilateral agreements with Italy, Bulgaria, Serbia, Hungary, Greece, Slovenia, Austria and Croatia for the construction of the South Stream gas pipeline, which is estimated to cost nearly US$40 billion according to the Moscow Times. Gazprom recently announced however that it was abandoning construction of the Italian portion of the pipeline.
These agreements were deemed a breach of EU anti-trust law by the European Commission in December. And, in April, following the annexation of the Crimean peninsula by Russia, the European Parliament voted for the South Stream project to be stopped.
AA would also cite another corporate-financier funded think tank, Chatham House – also complaining about EU members pursuing their own interests in contradiction to the EU Commission’s dictates. The unelected EU Commission appears to be pursing its own extraterritorial geopolitical pursuits ahead of those of the individual member states and their respective populations. That corporate-financier funded “think tanks” are focused on this “divide” and championing the EU Commission’s agenda over that of the individual EU members it allegedly represents fully exposes the EU for what it truly is, a dysfunctional supranational dictatorship.
And what is done in the name of the EU by its institutions like the EU Commission, which admittedly does not represent the best interests or desires of those it claims to represent, unfortunately and perhaps unfairly reflects on the EU as a whole. For example, and as part of the energy debate, the current EU support of the regime occupying Kiev, Ukraine, taints all of Europe, even as many EU member states attempt to move cautiously or even in opposition to the greater agenda the EU Commission and others are pursuing.
While the EU promotes itself as a bastion of freedom, stability, and prosperity, it appears increasingly more like a hegemonic bloc, dictating to, rather than acting as a representative of, the European people. The slogan “Toward a Europe Whole and Free” rings hollow when the EU Commission begins dictating policy to individual states, and curtailing progress that benefits both individual nations and their people.
The EU, in this light, appears more of an autocratic oligarchical consolidation of regional power and resources, not a democratic collaboration between nations. A slogan like “Toward a Europe Whole and Free” appears then to represent Europe, but only from the perspective of special interests seeking to loot the region collectively, rather than nation-by-nation. The dysfunction and dictatorial nature of the EU Commission and other apparatuses within the supranational bloc serve as a cautionary example for other nations seeking to construct their own alliances – from Asia’s ASEAN-AEC (Asian Economic Community), to regional alliances between Russia, China and with nations along their peripheries.
Alliances that include obligations that usurp national sovereignty are not alliances at all, they are hegemonic infiltration by special interests who would rather see a village place their valuables in a single safe for them to crack and loot, rather than take the time and trouble to rob each individual home. Europe must decide whether it will continue along a path of internal conflict with its alleged EU representatives tainting their collective populations, cultures, and histories, or reform the EU into an institution that allows collaboration and national sovereignty to exist in tandem.
Tony Cartalucci, Bangkok-based geopolitical researcher and writer, especially for the online magazine “New Eastern Outlook”.
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