We have become a bully nation, which promotes dollar hegemony, "free" trade and globalization from our Bully Pulpit at the White House. Our political and economic policies are so toxic that we must resort to hooliganism and warfare to promote our objectives. That is because the Illuminati profit from conflict. Every major war of the twentieth century was completely unnecessary and were all totally contrived by these reprobates and sociopaths. Every such war was started by the war-mongering, elitist-controlled press with lies and fabrications about nonexistent or greatly exaggerated atrocities, leading up to some triggering event to get everyone on board the war wagon.
Whether is was an assassination (Archduke Ferdinand - WWI), a sneak attack we knew about and did nothing to prevent (Pearl Harbor leading to WWII and 911 leading to the War in Afghanistan and the Second Gulf War), ships blown up in harbors (the "USS Maine" - Spanish-American War in 1898) or attacked at sea (Gulf of Tonkin Incident - Vietnam), regions or countries invaded (Korean War and First Gulf War), etc., etc., etc., each and every one of these wars and conflicts was totally and completely planned, contrived and propagandized from beginning to end. This is how our sons, and now our daughters, are tricked into sacrificing their blood and their lives to defend us from the "wicked" enemies, which our Illuminist lords of the universe have themselves created. The Illuminati have continued to support our "enemies" even while we were still fighting them in open warfare. They always profit from both sides of any conflict, hiding the money and profits in overseas banks or in off-shore accounts. That's what we have neutral Switzerland for, to launder all the money going to or coming from our enemies in exchange for war supplies or to fund enemy operations.
What do you think happened to all those billions in cash and those thousands of weapons that are still unaccounted for in Iraq. Al Quaeda and the insurgents are some of the best enemies that money and weapons can buy. These psychopathic Shylocks create, promote and fund our enemies and then pick fights with them so they can make billions or trillions in profits from the ensuing warfare, or from the ensuing angst that frightens us into spending trillions on military defense to protect ourselves from the enemies the Illuminati have created, as with the Cold War. Instead of fighting for the principals of "democracy" and "freedom", our soldiers have become unknowing henchmen for trillionaires who consider them to be little more than cannon fodder. We recoil in disgust at the deceitful lies that have been used to lure or to force our children into pointless, unwinnable, costly and bloody wars. The motto of the widow-makers in Washington is "Patriotism for profits." You're not patriotic if you refuse to get shot or blown up so that a pack of evil elitists can make profits from the military-industrial complex. Such profits are used to fund their diabolically perverse lifestyles, which include arms-dealing, drug-running, slave-trading, torture, prostitution, homosexuality, sadomasochism and pedophilia as well as Satanism and other occult beliefs centered on ancient mystery religions. The only difference between these elitists and devil worshippers is that they wear business suits instead of black robes, which are saved for after-hours entertainment in places like the Bohemian Grove. The black robes worn by many of our bought-and-paid-for, elitist-kissing judges are most appropriate, but would be more authentic if hoods were added, as they attempt to remove Christian principles from a system of jurisprudence that was founded on those principles. All this chicanery transpires as our Christian leaders extol these scum-bags and shower them with accolades.
The world hates our guts, justifiably, and like a slave master, we must force compliance with our world view by whipping those who get out of line and oppose us instead of achieving peace and prosperity through wise and tactful diplomacy. Our Administration of Orwellian neocons go rampaging through the world like a bull in a china shop, destroying and breaking valuable relationships that have made our nation the focal point of world wrath. As the world rebels and objects more and more to our moronic and draconian policies, we react by becoming even greater bullies rather than pull back to reexamine what we are doing and make some apt adjustments to keep things running smoothly and peacefully. Take for instance our policy of petrodollar hegemony. When Saddam Hussein, who we funded and placed into power, threatened to trade oil in some other currency, we attacked Iraq and sent him to the gallows. Not that he did not deserve it, but there are millions in Iraq who have been killed and murdered in the process who definitely did not deserve it, many of them women and children. To keep the countries of the Middle East in line and to prevent them from using a basket of currencies for oil sales instead of using exclusively dollars, we cut undersea communication cables. To keep China from dumping dollars, we support the Dalai Lama and the Tibetan resistance in order to embarrass them with human rights violations as they attempt to host the Olympics. To keep Russia in line and prevent them from unloading dollar-denominated forex reserves to destroy our economy, we set up missile defense systems in Eastern Europe, assist Islamic terrorists in Kosovo to unilaterally declare independence from Serbia and cancel nuclear nonproliferation treaties. The Japanese do not dare unload their treasuries lest we unwind the carry trade and destroy the yen shorts held by the Japanese public while the Japanese economy completely implodes as its exports become totally uncompetitive. Europeans cannot unload greenbacks unless they want to watch helplessly as the euro climbs ever higher, making their exports uncompetitive as well. Nor can they weaken the euro on account of the rampant inflation their economies have imported from dollar-denominated forex as they are hit with a beggar-thy-neighbor policy from the same country that fraudulently dumped its toxic waste on them. This strong-arming would not be necessary if we did not have the Fed destroying our dollar and our economy to bring us to our knees so we will accept a one world government, religion and socioeconomic system. The Illuminati are not only despicable and diabolical, they are traitors, and they should all receive a traitor's comeuppance.
The primary dealers are being slaughtered. That is why the Fed instituted the Primary Dealer Credit Facility, even though many of these primary government securities dealers are not member banks of the Federal Reserve. This has not been done since the Depression, so you know there is yet another catastrophe and series of debacles waiting to happen out there. These dealers are short government securities, and long everything else. They are also highly leveraged like all the other psychopathic institutions on Wall Street. All that leverage is now working in reverse as traders flee in terror to perceived security in US treasury bonds, thereby driving treasury rates to 50-year lows, while they flee in horror from toxic waste, driving rates on corporate bonds and derivatives ever higher. The demand for US treasury bonds is driving up their values when these dealers are short treasuries, and driving the value of toxic waste down when these dealers are long in toxic waste. This is a classic double-whammy on leverage steroids. There can be no doubt that these dealers are now insolvent and that they are now on the Fed's salvage list. This happens as the toxic waste continues to destroy capital positions for its commercial bank, investment bank and broker-dealer holders far faster than the holders can generate profits by re-loaning the Fed's flood of money and credit. The maniacal, wild-eyed leverage used to acquire these FWMD's (Financial Weapons of Mass Destruction) is what is killing them. Many are receiving treasuries under the Term Securities Lending Facility, which are often being hoarded instead of being re-loaned to grease the system. The same is true for cash loans. All confidence has been lost in this labyrinth of unregulated, opaque markets. There are now many Treasury bond delivery failures because they are becoming so scarce from all the hoarding and mistrust. Soon the Fed's general collateral will be used up as they continue to lend out treasury paper in return for the crappy paper at an ever-accelerating pace. Then they will have to create more treasuries out of thin air which is immediately inflationary. When you consider all the stealth bailouts where toxic waste is being dumped on HUD, Freddie, Fannie and the FHLB as their capital requirements are reduced to ludicrously low levels, the ever-increasing monthly amount being auctioned off by the Fed via the Term Auction Facility, an M3 now at 17% from all the credit injections, and the fact that all the credit doled out by the Fed is being rolled over while the Fed plans to take the losses on the toxic waste collateral given in return for this credit, which was created out of nothing, then you begin to comprehend why we are about to start competing with the Weimar Republic and Zimbabwe for the most inflated and asinine economy in world history. May we also add that since treasury bill prices also factor into other pricing models like the Black-Scholes model, the huge distortions in treasury prices could spell trouble for credit default swaps, a 45 trillion ticking derivatives time bomb. The rates on treasuries are outrageously low, even well below official inflation, so this can only end in tragedy with a mega-bear bond market as hyperinflation and elevated risk send interest rates into double digits. When all that money finally flees, gold and silver are going intergalactic. We ask who in their right mind would buy treasuries denominated in a rapidly decreasing currency (the dollar) that pay rates far under official inflation rates, much less actual inflation rates which are now at 12%, when they can own gold which is appreciating in value at rates that will keep pace with or exceed those of actual inflation and which is going up against all fiat currencies. We remain stunned and perplexed at the ignorance of professional traders who clamor for treasury junk when they could own gold and silver. It's simply mind-boggling.
When Lehman Brothers gets hit with rumors about its financial condition, the Illuminists get all hot and bothered that one of their insiders might become victim to some short sellers and immediately start an indignant investigation. How interesting that we don't hear a word concerning the rumors that started the run on Bear Stearns assets. We wonder where an investigation into those rumors would lead. Perhaps they would lead to the Fed and JP Morgan who stripped the Bear bare and then raped it.
As we said in the last issue, crime does pay when you own the system. Ask Bill and Hillary Clinton, who made 109 million dollars over the past 7 years compared with the yearly income in the several hundreds of thousands that was earned by the Clintons while Slick Willy was in the White House. We rest our case.
The Jobs Jamboree came in at minus 80,000 with unemployment at 5.1%. Try tripling both figures and you might get somewhere near the truth. We get these whoppers from the Bureau of Lying (Labor) Statistics as the Dow stays about even and the dollar declines a tad. The disconnect from reality continues as the PPT distorts our so-called "free" markets beyond recognition.
The precious metals have had a model week of correction and consolidation, with spot prices closing above 900 three out of five days, including the last two days of the week. While gold and silver finished the week down slightly, resource stocks finished up. When you combine this situation where the shares are leading the metals upward with a 6-month low of open interest for gold futures, this presents a potentially mega-bullish situation. Large specs should stay out of the COMEX Casino until they dominate the physical markets, which should not be hard considering that central banks and bullion banks are scrounging around for the dregs from producers, dealers and mints to get gold and silver, and then giving it away on short-term lease rates that are near zero or even negative. The resulting shortages among producers, dealers and mints tells you all you need to know. Also, ETF's and mint certificates are self-defeating. Buy it, pay for it, take physical delivery of it, store it, secure it and insure it. Period.
Stock markets will get a really severe case of "yellow fever" as soon as gold starts to rally again, and you can take that to the bank. Load up on protective derivatives and be ready for it. Put your de-leveraging to good use and pound the stuffing out of the general stock markets when the PPT gives you a nice big piece of rally candy. You can cash out and make money on your protective derivatives at the same time. The news is so incredibly bad now and the upcoming earnings will be so abysmal that we are beginning to doubt whether the Fed and the PPT can hold the markets up. To do this they have to weaken the yen, and that will send gold and silver to the moon. Stay out of the casino and use small cap resource stocks for some leverage. When you have the commercials on the run, then you can head for the gaming tables. Right now it's time to get physical.
Note that the IMF vote is supposed to be coming up this month for the sale of the 400 or so metric tonnes of gold. Even assuming everyone agrees, which is unlikely, an affirmative vote to sell the gold means nothing as these sales must be spread out so as not to disrupt gold markets and must be coordinated with quota limits under the Washington Agreement. If you have ever seen hungry piranha attack a slab of meat thrown into their tank, you have a pretty good picture of what sovereign wealth funds, large specs and safe-haven investors will do to the gold that is offered in the ensuing auctions.
Write to Ben Bernanke and tell him he is incompetent and a nasty helicopter pilot. He masterminded the forced sale of Bear Stearns by JP Moran Chase. Bear got paid back for not being insiders and for not participating in the LTCM bailout. Morgan’s derivative positions remained a secret and Morgan shareholders are richer by $24 billion. Bear shareholders are supposedly better off by a couple of billion dollars and the American taxpayers are on the hook for $29 billion.
This man is a disgrace. We felt sorry when he inherited Greenspan’s mess, but not anymore. He is as big a crook as the rest of them.