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Friend of gold Jim Sinclair, and executive to a mining firm with
interests in Tanzania, put it so well. He captures the theme of this article
when he said, "It is the constant drop in the dollar's usage as a
contract mechanism internationally. No one sees this but it is the Hammer of
Thor on the head of the dollar." The rejection of the USDollar in global trade will mean the end of the abused
privilege in a currency turned toxic. Its rejection is the marquee event in
the financial world for 2013, following isolation. It is unstoppable and all-encompassing, certain to have geopolitical consequences,
as it alters the economic and financial landscape in harsh ways much like a
band of violent marauders brandishing machetes alter the neckline of their
victims. See the Tonton Macoute
in Haiti. The greenback is cornered; it is done!
The central bankers and sovereign wealth fund managers are running
scared. The Official Monetary & Financial Institutions Forum (OMFIF) is a
forum of central banks, sovereign funds, financial policy makers, and market
participants. It recently issued a report on the global monetary system,
emphasizing the possibility of a major breakdown in international monetary
relations as a result of the currency wars, which hinder productivity. It
accepts that the present system is collapsing. It argues a formal role for
gold is required to play in international finance. But they turn to the
despised corrupt savage callous Intl Monetary Fund, and its broken currency
vehicle, the discredited discarded SDR basket. They will be swept aside
despite eyes partly open.
The opponents to financial hegemony have spent the last four years in
planning a new order that can viably sustain the global trade system without a USDollar at its central role.
On one side, foreign nations must avoid the toxic effect of the asset bubble USTreasury Bond as the core to their banking systems. On
the other side, foreign nations must react to the accelerating threat to
their national economies from both a uniform cost inflation effect and a
rising currency effect that punishes strength, success, and prudence. The
Competing Currency War has reached a new elevated fever pitch, with the major
central banks delivering powerful damage to each other while defending
themselves. The unintended consequences have been a predictable unfolding
of events to the sound money gold crowd, with years of warning and even a
label given to the conflict. It comes as an unwelcome surprise to the
mainstream sheeple crowd, still entangled in the
paper wealth corner. The process continues, the
pathogenesis relentless as paper securities erode in value. The world is
slowly coming to the realization that only a Gold Standard can cure the world
of its financial cancer from metastasized paper insecurities. The contact
of Silver will cleanse the hand that has held paper since 1971, when the era
of modern chronic unsolvable financial crisis was born. That is, unsolvable
without a primary role for Gold itself, the despised stable metal. Gold is
the ultimate currency.
SHOCK YEAR 2013
So the Jackass call is that 2013 will see the USDollar
finally isolated and put in a position for rejection. It might not suffer a
sudden death, but it will be corralled after being identified as the toxic
agent flowing within the global financial arteries. However, the quarantine
will be conducted in an extraordinarily clever fashion. Since the United
States and United Kingdom, with its loyal court of followers in Western
Europe, control the global banking system, the sovereign bond system, and the
FOREX currency system, even the commodity markets including Gold &
Silver, the solution had to be loaded with innovation if not guile. The
alternative to the USDollar as a solution had to be
formulated and planned as a counter-attack, but done so outside the oversized
pockets of strength where the Anglo bankers ply their trade and controls.
As many trade partners have been public about their objectives, when two
parties come together to conduct trade, no rational reason can dictate that
the USDollar should be used as a vehicle to settle
trade, when both parties are located halfway across the globe. The New York
and London bankster crowd cannot dictate Gold's new
role, when their vaulted gold supplies are being vacated to points in Asia,
when their vault contents are demanded in official accounts for return, when
their past gold shipments have been contaminated with tungsten. These banksters are being outed as
criminals.
The end to US & UK hegemony is coming. It will arrive like a grand
lasso cast around the set of trade partners seeking a fair system. Their
proffered solutions will be ignored, like the QE lunacy in the United States
and the ESM lunacy in Europe, both discredited totally. The IMF will not play
a role in the next chapter. The irony is thick and inescapable. If the Anglo
bankers insist on NOT considering, using, and relying upon Gold as a currency
of utmost validity, robustness, and strength, then the rest of the world
will devise a system for trade settlement that will evolve toward gold
itself. The settlement of trade will not therefore pass through either the
banking system or the currency marts. The solution will come in global
trade that no longer requires the USDollar, but
rather a simpler system where value is perceived more clearly, where the two
participants will transact as peers, where payments will not rely upon the
big banks, where the ignored super currency Gold is the basis. The deceptions
of paper-based IOUs will be averted. The corruption in the banker shell games
will be cast aside. The USDollar will be isolated,
ignored, shunned, then put to death by the Americans
themselves during its uncontrollable fever.
THE KEY: NON-USDOLLAR TRADE
The grand hint to the end-around solution in search for a USDollar alternative has been
in front of the nose for several years, dating back to the China-Brazil
bilateral swap deal in 2005. Little attention has been given a long sequence
of similar bilateral swap deals that have centered upon the Chinese Yuan for
initiating and settling trade. Nation after nation have lined up with the
Beijing leaders to conduct trade in something akin to a credit card account
based in Yuan currency, which converges toward zero over time on balance.
Trade is initiated by one side delivering goods. The swap facility is tapped.
Trade goes in the other direction, and the swap facility is credited toward
zero. Numerous nations have signed up with China on such bilateral swap
facility deals that enable brisk trade, in essentially a barter framework.
The word barter is never used, since it might upset the powerful banker
groups that shuffle bonds and currencies like so much stained wampum and
contaminated salt at the corrupted trading posts. With Russia, South
Korea, Japan, Iran, India, and Australia onboard with Chinese Yuan swap
deals, one must suspect that a critical mass of perhaps half of global trade
is conducted outside the USDollar shadow. This is a
growing critical mass that acts much like scattered pylons on which to place
a new trading platform. The key is that the collection of bilateral trade
conducted by China is no longer done in USDollars.
The objections are openly stated, that nations do not find it obligatory to
settle trade in a third-party currency like the USDollar,
especially when the US central bank is flooding the system with USDollars of highly suspicious origin but with very
certain negative ramifications on the value of nationally managed reserve systems.
The other big more recent hint is that Turkey is serving as a test site for
trade settlement in Gold. Ankara bazaars are providing Gold in giant
quantities, used in satisfying trade payments. So far the sleep Anglo bankers
consider it minor, and operating in the Iranian
shadows. They are wrong.
An important dynamic must be made clear. In the past decades as
nations engaged in trade, in particular with crude oil, the trade was settled
in USDollars. Therefore nation after nation
accumulated USTBonds in their surplus reserves
account as part of banking systems. They followed the lead set forth by the
Saudis as they managed the Petro-Dollar functions. The Saudis recycled their
surplus funds into USTBonds, so as to keep the
balance of FOREX currencies intact even as massive imbalances built up
quickly over time. As a result, the entire world of major nations, the
global producers and traders accumulated USTBonds
within their banking systems. The norm became USTreasurys
with which to build national banking systems. So the Saudi-led
Petro-Dollar established global trade done in USDollar
terms, even outside the energy market. In a sense, their reserves management
as agreed upon between the USGovt and Saudi royals
(King Fahd), induced the global trade participants
to follow suit and create banking systems built upon USTBonds
also. All that is changing, since the Chinese Yuan swap facilities have taken
on critical mass globally. However, the final blow to the USDollar
will come from standard non-energy trade being settled outside any US$-based
terms. The practice is accelerating, initiated in Asia, but spreading
westward fast, urged along with a giant push in response to the Iran trade
sanctions. Every action brings about an equal and opposite reaction.
The crux of the non-US$ trade vehicle devised as a
USDollar alternative will be the Gold Trade Note.
It will enable peer-to-peer payments to be completed from direct account
transfers independent of currency, and most importantly, not done through the
narrow pipes and channels controlled by the bankers with their omnipresent
SWIFT code system among the world of banks. The Gold Trade Note will act
much like a Letter of Credit, serve as a short-term bill, and maybe even push
aside the near 0% short-term USTreasury Bills that
litter the banking landscape. Any bond or bill earning almost no interest
is veritable clutter. The zero bound USTreasurys
open the door in a big way for replacement by a better vehicle. The new trade
notes will involve posted gold as collateral, whose entire system for trade
usage will bear a massive gold core that also will include silver and
platinum, maybe other precious metals. The idea is to avoid the FOREX
systems, to avoid the USDollar, and to avoid the
banks as much as possible in a peer-to-peer system that can be executed
between parties holding Blackberry devices or simple PC to complete the
payments on transactions. If Gold is ignored by the corrupt bankers, then
Gold will be the center of the new trade system and the solution in providing
a globally accepted USDollar alternative.
Do not be surprised to see the Chinese Yuan later as interchangeable
with the Gold Trade Note. But first the Yuan must be convertible into the
many major currencies actively traded in the world. Numerous reports have
come in recent weeks that the Yuan currency will soon have a gold backing,
yet unconfirmed. My expectation is for the Chinese Yuan eventually to be
interchangeable with the Trade Note. That will signal its implicit gold
backing. While many events and steps are not known, and many surprises will
be thrust on stage, the guiding pathways are slowly coming to light.
CURRENCY WAR AMONG CENTRAL BANKS
The Competing Currency War has grown in intensity. The competitive
devaluations of currencies is causing severe damage
among the major players. National reserves are suffering loss, while growing
in size to dangerous levels. Protection of export trade has become of
paramount importance. Nations are speaking openly through their central banks
about the distress and urgency of the worsening situation. Russia has
directly identified the currency battles as war. Nations are acting in their
best self-interest, and in the process defying other nations, rendering them
harm. With Switzerland and Japan enduring the brunt of the currency wars,
look for them to each arrive at the conclusion that a Gold Standard would
eliminate many problems. They are important pivotal nations. Successful
nations and safe haven nations are put at great risk, even punished by having
their floating currency rise. Great distortions are occurring as the Euro is
propped, the beneficiary of colossal USDollar swap
facility influx in the $trillions. The nearly constant US DX currency index
is a lie, a false soothing signal that all is well. In fact, the USDollar is seeing instability with several currencies
within the index.
The list of nations undergoing active currency intervention is growing
markedly. Currency manipulation actions are routine, each action inviting a reaction
by other nations. It is not just Japan and the United States, the usual
suspects. It is Luxembourg, Switzerland, South Korea, Sweden, Norway, and
Brazil. Heck, even the venerable England has taken steps to create a Chinese
Yuan swap facility. They do not wish to be left out when the Yuan becomes a
more global currency, with full convertibility. London is aiding the path to
a convertible Yuan. Who'd a thunk it? London wishes
to remain a major trading center. Look for someday soon a Chinese Govt Bond auction denominated in Yuan, the offering
managed by London banks. Such a development is not welcome news for New York,
which must be seething with anger and flush with disgust. This is the more
than a currency war, but rather a global currency tumult and transformation,
with grand tectonic shifts, on the disruptive path to a return of the Gold
Standard.
Some important events within the financial wars over control of money
and determination of value is underway. Many details
are analyzed in the January issue of the Gold & Currency Report for the
Hat Trick Letter. Big disruptions are coming very soon to both the FOREX
currency market and the Gold market. Gold price breakouts will occur in
various currencies, but not in US$ terms, the defended bunker. The new
dangerous phase of the competing currency war has the propped Euro keeping
the US DX index up, since the Euro has an absurd overweight in the queer
index (artifact of past era). The Gold price rise will come like a sudden
burst of wind. The speculators who trade Gold based solely on the DXY index
will not understand the processes going on behind the scenes. They will be
greatly surprised and taken off guard by the poweful
upward move in Gold when it arrives. Watch for the Swiss and Japan to knock
on the door for entrance in the Eastern Alliance, which will produce the USDollar alternative. It requires a critical mass for
success. The stress felt in these two nations will motivate their pursuit of
the USDollar alternative solution. They are being
seriously wounded by the fiat paper currency system with floating rates.
Russia spoke out viscerally on the growing global awareness of an open
currency war. Events are not of a fresh war, but rather a climax. Russia's
central bank head Alexei Ulyukayev seems only recently
aware of the battles among central bankers that have raged for a few years.
The climax could result in a Gold Standard implemented in place, with the
Anglo-Americans deposed. The practice of competitive devaluation has turned
routine. All actions taken by individual nations invite quick reactions by
affected partners. Conversely, the successful nations do not tolerate
punishment with a higher exchange rate. A return to gold in a central role
would provide reward instead of punishment. This is the currency war
entering the final phase, where the Gold Standard could potentially emerge as
the global solution. The returned imposition of the standard would enable
successful nations to garner more gold as reward (see Norway, Switzerland),
and punish sluggish wayward parasitic sclerotic socialist nations which run
chronic trade deficits by sending them to the Third World. Recall the
shattered objective made in 2009 by central bankers. Their vacant call was
reiterating just three months ago, to refrain from competitive devaluation of
currencies. No nation refrained, as it is total empty rhetoric. When
pressured and under attack, individual nations will act in their own domestic
best interests, to defend their industries, to fight to survive.
The world has NEVER seen so much direct currency intervention and
protective action taken by central banks. History is being made. The currency
tremors augur some truly historical events, with the return of the Gold
Standard coming, although by indirect means via trade settlement. By
consequence the FOREX currencies and their crumbling bond foundation will be
indirectly declared ruined, toxic, and unworthy of widespread global usage as
a monetary platform. Some important events
highlight the Competing Currency War clashes:
- Brazilian Finance Minister Guido Mantega first dubbed a currency war in 2010 in open
terms, engaging the richer nation. He must be credited with the initial
challenges and confrontations of the major central bank powers.
- Luxembourg Prime Minister Jean-Claude Juncker complained of a dangerously high Euro. Its
7% gain against the USDollar in the past six
months poses a fresh threat to the EuroZone
economy. The European Central Bank states that it is not prepared to
favor a weaker currency.
- Switzerland has been blocking the Franc
appreciation against the Euro since September 2011. Their central bank
balance sheet has gone over 70% of GDP, but will fail to achieve any
success. Great losses await in the blowback.
- The central bank of Norway (Norges
Bank) has received pressures from the finance ministry, in reaction to a
strong Krone currency. The ministry urges more accommodation, and not to
continue conducting a tight fiscal policy. The Krone has been rising due
to a responsible government, and long
successful North Sea oil project with about $1.6 trillion held in
sovereign wealth funds.
- The central bank of Sweden wishes to execute a
rate cut in order to avert a stronger Krona currency. The Riksbank head has argued for deeper rate cut than
the 0.25 basis point enacted. They
prefer the basic self mutilation method.
- Japan has reignited new major battles, as newly
elected Prime Minister Shinzo Abe urged a more
aggressive central bank, turning it into more of a political arm. The
result has been an 11% Yen decline since December against the USDollar. Their 22-year interventions are a total
disaster, and example to observe. Expect Japan to join forces with the
Chinese in common goals.
- The Bank of Korea has formally stated an urgent
response is needed to defend against the falling Japanese Yen. Concern
is over the harmful impact to exports and investor confidence. Their
finance ministry wishes to put forward an agenda item at the G-20 talks
in Moscow, on adverse effects of monetary easing in the United States, Europe,
and Japan. Expect South Korea to join forces with the Chinese, as they
diversify out of USTBonds.
SWITZERLAND POISED FOR GRAND LOSSES
The official program launched by the Bank of Japan delivered some
powerful blows to the Swiss bankers and their lunatic peg against the Euro
currency. Defense of Japanese industry has translated into outsized losses
for the Swiss central bank portfolio, simply put. Extreme risk continues
to rise toward a break point in Switzerland. Their Euro-Franc peg cannot be held firm. As the Euro continues to crumble
(regardless of exchange rate), investors are flocking to the Swiss hills. The
Swiss National Bank cannot hold the 120 declared peg. Their short Franc
position and long Euro position, with other major currency long positions
from some diversification (like into the Japanese Yen), will assuredly break
as each major nation manages according to their own national priorities. The
urgent Euro defense has prompted other nations to take defensive action. The
war is on. A new phase has begun, with damage done to other nations rising. The
Swiss Natl Bank has converted itself to an
ill-fated hedge fund in danger of massive losses. Its losses are mounting.
Its reserves from Franc defense are in the 75% range of their national GDP, the
size of their economy. The Euro-Franc peg is doomed
to fail, with gigantic losses to come in the cascade of ruin. Note that the
Japanese Yen has moved down hard in four months time,
and continues down.
A look at a 50-year chart (shown in the January Hat Trick Letter paid
reports) should cause alarm, since the trend over two generations appears to
be in the early phase of an important reversal. The JapYen is falling rapidly by designed pressure from their
central bank, which has been politicized radically in recent weeks. Massive
losses are coming from the Swiss bets on the Yen, along with catastrophic
losses from an explosive upward move in their own SwFranc
currency. The focus of the Competing Currency War right here right now
should be squarely on the Swiss and Japanese. They are at war with each
other, blowing up the Swiss reserves. The Swiss thought they were acting
prudently by diversifying out of the Euro and into the British Pound and
Japanese Yen. The BPound is down from 163 on
January 1st to 156 today, almost a 5% decline in merely five weeks. The JapYen is down strong, from 129 in late September to 107
today, falling with powerful momentum. The Asian currency is down a monstrous
17% in the last four months. Japan is trying to push down their currency in
order to make cheaper their exports. On the other hand, England is just
falling apart, in a nasty recession.
The Swiss National Bank went all in three times and counting in the
last several months, with heavy commitments to defend against a fast rising
Swiss Franc currency. The Swiss have a truly massive and deadly commitment,
seen by the size of their central bank balance sheet. It is like a giant boil
on the Swiss face. Details of the interventions are full of intrigue, if not
highlights of the futility. Huge losses await the small nation dominated by
its banks. The bankers have gone coo-coo, like their clocks. Compare. The USFed has a big balance sheet, equal in size to over 20%
of the USEconomy size, as measured by GDP. The Euro
Central Bank goes further, with a balance sheet of 30% of GDP for the EuroZone. The Swiss take it to a new level, two to three
times larger. The balance sheet of the Swiss National
Bank contain assets amounting to about 75% of the Swiss GDP. They have
literally bet the bank on three separate occasions recently. The nation
is small, but the carried risk is staggering, enough to collapse their
financial system. It is already badly damaged from a) the loss of secret
private accounts, b) the loss from underwriting mortgages in Eastern Europe,
and c) the loss from US$-based toxic bonds. Next comes potentially
catastrophic losses from currency regime defense, compounded by legal
challenges on Allocated Gold Accounts with accompanying multi-$billion
lawsuits kept quiet.
The big irony in the Jackass viewpoint is that the Swiss will become a
key force as an important swing vote. The potential is there for a hidden
role. They might join the global gold-backed currency movement that replaces the
USDollar in trade settlement. This
is the currency war entering the final phase, where the Gold Standard could
potentially emerge as the global solution. Imagine Switzerland with its
impressive flow of funds into the Swiss hills, seeking safe haven from the
collapse of Europe. A Gold Standard would mean that gold bullion would follow
the flow of funds, the exact opposite impact as the current situation for the
historical land of banks. So Switzerland could serve as a big swing state in
the financial sector, like Turkey could serve as a big swing state in the
trade settlement sector.
G-20 FLASH POINT
Rumor is circulating in London that neither the United States nor the
United Kingdom will attend the G-20 Meeting in Moscow. Refusal to attend
by the Anglos would open a giant gate to coordinate plans by the leading
Eastern nations (trade participants) on the new trade settlement system with
attendant platforms. Rather than creating a new and better currency, they
are more likely to establish a gold-backed trade settlement process that will
render the USDollar obsolete. Failure to attend by
the US-UK tagteam of financial fascists would
ignite the Eastern-led consortium on motivation toward the launch of the new
system in a more open public vocal manner with press conferences. The Third
World awaits the nations that refuse to become part of a growing critical
mass in global trade, which desires a more fair and equitable system of trade
settlement. It is coming, but awaits a climax of collapse.
TAINTED GOLD CHART
The Jackass finds little value in the Gold chart, the object of
criminal control. Honestly, rarely is the so-called official gold price
checked for months. By happenstance, it flashes across the television screen
when the bumblers on the financial news networks are silenced by my mute
button. Their gold price is controlled within a boring false range of
meaningless that does not attract my attention or interest. The actual
Gold price is 10% higher than the posted COMEX corrupted price, in many parts
of the world where it is actively traded in volume, with authentication and
verified bars bearing certification. Much of the New York and London gold
is either stolen or confiscated, their stated inventory as full of fiction as
the economic reports. Moreover much of the exported Anglo gold has tungsten
centers. Their gold bars are as imaginary and contaminated as their sovereign
bonds and mortgage bonds. So the Jackass sticks with the gold and currency
wars, the developments by the stubborn resistant East, and trends toward the
sunset of the USDollar after it is cornered like a
rat. Ignored are the marquee billboards with false prices from leveraged
fraud, naked shorting (see the Big Four US Banks), theft of client accounts
awaiting delivery (see MFGlobal), surrogate wars to
confiscate foreign gold accounts (see Libya), and raids of the Gold ETFund often called the bullion central bank kitty. The
Jackass refuses to permit syndicate whores and harlots to define virginity or
purity, or to set the price of taking a lady out to dinner, a show, and
whatever follows. The entire pack of Western bankers can go to hell, whose
doorkeeper prince of darkness is their object of worship in rituals.
REQUIEM FOR THE NATION
A sweeping captivating question will dominate in 2013: What happened
to the United States? The answer cannot be made simple. As preface, the key
to comprehension must bring focus to extreme banker thefts in the multiple
$trillions, which began in a virtual theft of the bulk of the national home
equity in the mortgage bond fraud. The problem is far more pervasive, if any
degree of depth is to be grasped. It was the refusal to liquidate the broken
sacred banks steeped in criminal activity, the extreme corrosion to the
economy from adopted sanctioned urgently requested hyper monetary inflation,
the burdensome war costs hidden within the mammoth unfixable federal budget
deficits, the compromised Congress whose constituents are lobbyists, the
cancerous growth of the state which is realized in higher taxes, onerous regulations,
an expansive welfare network, and a forced tiresome war on terrorism that
conceals a broad confiscation of gold hoards during a global capture of the
narcotics trade, upon which the New York banks are hopelessly dependent. A
military element has been prevalent in the breakdown, an extension of the
Fascist Business Model into the business sector. It saw impunity of big banks
from prosecution, devotion to war, permission of narcotics by the security
agencies, the obfuscation of liberty as it vanished, the perversion of
patriotism (including honor guards at sporting events), the subjugation of
the press, the salute to an aggressive national socialism (often dubbed nazi by the enlightened). Enter systemic failure from
a military standpoint.
The short answer on what went wrong would cite the departure from the
Gold Standard, the advent of war beginning with Vietnam War and continuing
through the Cold Soviet War and transitioning into a deceptive War on Islamic
terrorism. The overly strong and active US labor unions caused a reaction to
seek Asian outsources. The overly dominant financial sector led to dependence
upon a series of aberrant asset bubbles, each and every one blessed by the
wayward heretic US central bank, which owns a giant responsibility in the
systemic failure in progress. The devotion to war has resulted in an added $3
trillion in the USGovt deficit just since 2003, and
half the overall $17 trillion in total. A deadly decision was made in late
1999 that assured the demise of the nation, questioned by few, never having
sat well with those in possession of an active economic brain stem. The
discharge of the bulk of US factories to Asia, mostly to China, sent the
legitimate income producing capability away, only to be replaced to a deeper
dependence upon asset inflation. The resulting deficits for the USGovt cannot even remotely be repaid, nor
even financed. Creditors have fled. The forced endless 0% rate is kept in
place to enable debt service itself. Enter systemic failure from an political and fiscal standpoint.
When the Hat Trick Letter began in May 2004, the Jackass was very
clear that the US housing market and mortgage finance sector would eventually
enter a bust period. Due to the extreme dependence by the USEconomy
on home equity extraction and bond security trades, the nation would enter a
period of deadly insolvency followed by systemic failure since no monetary
policy could pull the nation out of the toxic quicksand. It had no traction
in industry from which to derive stimulus of low interest rates. Imagine a
car spinning its engine with a Weimar stamp on the block, whose RPMs rise
multiples past the red line of danger, whose transmission spins the bank-made
tires endlessly, creating a din of noise and a thick mist of burning oil, but
whose wheels have no connection to the roadway. No critical mass of industry
means no locomotion for the USEconomy,
as simple as that. Besides, the United States cannot compete on a wage basis
with Asia, nor a union basis, nor on a government regulatory basis, and
increasingly on a quality basis. Enter systemic failure from an industry
standpoint.
In the last couple years, the systemic failure has extended from the USFed hyper monetary inflation, which kills capital
itself in a manner that not 5% of economists comprehend.
Central bank monetary policy to print nearly unlimited amounts of money,
including funds destined for Europe, and to keep the official lending rate at
the zero bound has resulted in a rising cost structure with no discernible
increase in wages or income. Worse, the accumulated funds in savings and
pensions earn nothing, therefore go negative when
price effects are factored. The corrosive cost effect and the wet blanket
savings effect on the USEconomy perpetuate the
recession that has been firmly in place since 2008. No recovery has
occurred in five years, despite the chatter and deception and lunatic
pronouncements from the policy makers, compromised bankers, and poor excuses
for economists (banker harlots & promoters). The USGovt
deficits are covered over 80% in volume by the printing press with a Weimar
nameplate. Foreign USTBond investors have vacated
the auction pits and other financial premises. The reliance upon interest
rate derivatives has been exposed, starting last spring and summer 2012 in
JPMorgan admissions, in order to keep the absurdly ultra-low official
interest rates in place. Enter systemic failure from a financial
standpoint.
The cast of leaders has converted treason into a facade of patriotism,
as they defecate and urinate on the tree of liberty, preparing their drones
and black aircraft for assaults on cities. The battles politically remind a
history student of a localized conflict between Nazism and Stalinism, with a
surefire blend in targeting the population with a parade of assaults typical
of each camp. Anyone who has overlooked that Neo-Con means Neo-Nazi, and the
march to Socialism in the other party has a striking tone of Soviet
Collectivism, simply misses the big trend in American politics. The FEMA Camp
influx for indoctrination, along with psychotropic drug treatment for those
who fail to salute, should convince the masses a bit more. Events in the sky
over Miami and Houston in the past week should do more than awaken, even
frighten, as they spread to other cities. The collection programs for guns
will be eclipsed by collection of private pension funds and perhaps gold
itself. The exit strategy for the US Federal Reserve might be extremely
simple, enabled by the heavy Big Brother hand. Over $19 trillion in
private pension funds in IRAs, 401ks, and Keoughs
might be forced out of their current positions and dragged into a new special
USGovt Bond that is backed by unwanted USTBonds racked by QE storms and worthless USAgency Mortgage Bonds racked by lost collateral that
the big US banks eagerly dumped on the USFed.
The $3 trillion central bank toxic balance sheet could be passed onto the
gullible helpless and victimized American public. Their only real choice is
to flee, like the USTBond creditors.
Self-protection will be deemed unlawful, either for personal safety or
financial security. Speaking out in opposition will be deemed unpatriotic, if
not subversive. Orwell, Huxley, and Thoreau are watching the obscene steps
taken by the state. For some reason, fond memories of Richie Havens strumming
his guitar and belting his tunes about freedom have been running in my mind
for weeks, an icon from the 1970 decade, which produced the best music ever
created in rock & roll.
Jim Willie CB
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nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.
"I
have been a Hat Trick subscriber since 2005. I consider your publication
beyond excellent. It is indispensable to understanding the mega-trends of the
past such as the housing bust, bank insolvency, monstrous US Government
$trillion debt, the Fed's QE to infinity with no feasible exit strategy, and
more. Essentially, your analysis exposes and documents the massive corruption
ruining the future of young and old alike in America. A simple thank you is
really not sufficient to express my deep appreciation of the time and effort
you put into the Hat Trick Letters."
(ElaineW in California)
"A
Paradigm change is occurring for sure. Your reports and analysis are historic
documents, allowing future generations to have an accurate account of what and
why things went wrong so badly. There is no other written account that
strings things along on the timeline, as your writings do. I share them with
a handful of incredibly influential people whose decisions are greatly
impacted by having the information in the Jackass format. The system is
coming apart on such a mega scale that it is difficult to wrap one's head
around where all this will end. But then, the universe strives for
equilibrium and all will eventually balance out."
(The Voice,
a European gold trader source)
"It
has been my hope that the financial collapse would occur within a slower time
frame, like a year from now. I have followed your articles on various sites
for a while, and have to say that you are very perceptive and accurate as
well as analytical.You have been more accurate,
detailed and thorough than others, and your Big Picture analysis is usually
spot on. I have noticed that it often becomes public news 3 to 6 months
later. It is not easy connecting all the dots and understanding the
implications one event has on everything else, then interweaving all the
threads to grasp that big picture. I don't usually spend the money for a
subscription,
but I feel your information is vital to know."
(KathyN from Arizona)
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