The Death Knell
April 4, 2013
The official 0% rate
signals a death knell to the national financial foundation and economic
vibrancy, the climax event slow in its pathogenesis following the departure
from the Gold Standard in 1971. The official 0% FedFunds rate (call it 25 basis
points, no matter) is a direct signal of terminal illness for the entire
capitalist structures within both the United States and its Western partners
who stupidly or helplessly follow its lead. They followed the US lead in the housing
& mortgage bubble disaster with complete wreckage, yet they continue to
follow the US monetary lead.
They claim to have no
choice.
They do indeed
have a choice, to discard the USDollar and to sell out of the USTreasury Bond,
to impose a Gold Standard.
The propaganda has been
thick over the last few years, especially since the US banking system suffered
a fatal heart attack in September 2008. It has not recovered since, still
insolvent, still wrecked, having returned a zombie center with a USTBond carry
trade core and continued money laundering basement lifeline. The Jackass is
tired beyond words, beyond description, of hearing that the Zero Percent
Interest Policy is being kept as a stimulus measure to encourage continued
economic recovery. It is neither a stimulant, nor is the USEconomy in recovery
mode.
The official 0% rate
signals a death knell to the national financial foundation and economic
vibrancy, the climax event slow in its pathogenesis following the departure
from the Gold Standard in 1971. The official 0% FedFunds rate (call it 25 basis
points, no matter) is a direct signal of terminal illness for the entire
capitalist structures within both the United States and its Western partners
who stupidly or helplessly follow its lead.
They followed the US
lead in the housing & mortgage bubble disaster with complete wreckage, yet
they continue to follow the US monetary lead. They claim to have no choice.
They do indeed have a choice, to discard the USDollar and to sell out of the
USTreasury Bond, to impose a Gold Standard.
The Gold Trade Standard
is coming into view. The East is no longer following the US lead, as a
rebellion against the USDollar and its toxic USTreasury Bond is well along. The
Eastern giants Russia and China are forging a new path, to install a new Gold
Trade Standard that thumbs its nose at the Western banking system and the FOREX
currency market. Its marketplace will be the Eurasian Trade Zone, and its gold
central bank will be the BRICS Development Fund (clever name to disguise its
eventual function). Last holiday weekend, a public article was penned by the
Jackass, but due to the limited opportunity for the Easter and Passover times,
the article entitled “USDollar: Ring-Fenced & Checkmate” was posted
only on the Gold Seek website (CLICK HERE) as a
personal favor.
MONEY VELOCITY DYING ON
THE VINE
It deserves extreme
emphasis that the United States has put a zero price on money, and therefore
two extremely important consequences are immediate. The first is that all
capital is falsely priced, which causes a cancer to flow and filter
throughout the entire business sector where capital is at work. Secondly, all
financial assets are improperly priced, from stocks to bonds to property
that ranges from commercial buildings to farmland to port facilities. The
USEconomy suffers from capital mortality and capital wreckage. The US Federal
Reserve by keeping the official rate near zero for four years, has in effect
subjected the USEconomy to a death sentence. Evidence is seen in the Money
Velocity. The USFed told the nation in early 2009 that the 0% was temporary. It
was not, and the Jackass called them liars then, correctly so. They oversee
ZIRP forever and QE to Infinity.
Notice the severe
decline in money velocity. Even the incompetent economists recognize the
importance of money flowing through the economic arteries. The banks are
debilitated by a sclerosis which has spread to the body economic. The finger of
blame goes initially to Sir Alan Greenspasm, who was the architect of monetary
inflation management. The Mr. Magoo lookalike urged the nation to tap into home
equity for sustained consumption. He personally urged the renewed housing
bubble, which enabled him to leave office an apparent winner. He never
advocated a new business cycle, only a new speculative cycle. Greenspasm
defended to the hilt the sophistication of the risk offload vehicles in
derivatives, those toxic unregulated bank chits sold in the underground market
where rats prevail. Beware that nothing has been solved, nothing has been
attempted in solution, and the money velocity bears out the gradual death
process of money itself. Money is tired, soon to be retired. It has no value in
interest yield. It has no value indirectly, due to its free creation and
distribution by the chief capital moron bottle washer (liquidity room) in
charge of the USFed. He boasted of the electronic printing press with zero
cost. Its heavy usage has rendered capital within the USEconomy to have zero
value. It is in a grand retirement trend, in response to rising costs and
shrinking profitability. Capital gradually in the US is dying.
An historical event look
shows the decline in the effectiveness of money has a much longer established
pattern. The trend down in money velocity has been in progress since the 1980
decade. My firm belief as an analyst and statistician is that the forfeiture
and abandonment of industry from the USEconomy had a devastating effect over
the decades. The legitimate income from tangible work was removed. The nation
grew devoted and dependent upon asset bubbles for wealth and disposable funds
for consumption, not actual work. The United States has pushed itself into
a corner with a monetary straitjacket, a criminal banker elite class in charge,
and a systemic failure that approaches rapidly. The harsh police state will be
the outcome from refusal to liquidate the big US banks.
GRAND WET BLANKET &
RISING TIDE OF COSTS
Capital destruction is
not perceived by the harlot economist coven. They are paid to regard the 0%
banner and QE operation as wildly stimulative. It is not. It is rather a grand
wet blanket that smothers the capital at work, or drowns it from a rising tide
of costs. The income side is slowed since legions of savers are denied a proper
reward for putting their savings capital into the system, put to work. The
pension funds are found wanting on income yield, as they take extra risks to find
the required yield. The USFed has in essence forced the nation to adopt the
moral hazard, to face the risks from the likes of mortgage bonds, and to suffer
grand losses. Those folders full of bank CDs (certificates of deposit) earn
a piddling 1% to 2% in interest, far less than the running rate of price
inflation most evident in food and gasoline. The ZIRP policy pushes the grand
distortions and imbalances within the USEconomy and its obscene forces. Few
realize that the income from savings and bonds is equally prominent as consumer
borrowing. The savings interest paid slows the USEconomy down in a powerful
manner. However, consumer interest rates have not reduced much really, since
borrowers are considered greater risks, the banks not so willing to lend. The
entire wet blanket causes an attack on capital and its smother from rising
costs. The wet blanket on the USEconomy is the grand robe of the banker
royalty, purple in color from the de-oxygenated blood condition.
BERNANKE ASSURED
SYSTEMIC FAILURE
By promising QE until
job growth and economic recovery, Bernanke has assured systemic failure. The
USFed monetary policy is rendering harm to the USEconomy in a pervasive
powerful systematic process, a death process, an irreversible pathogenesis. The
widespread hedge practices against monetary inflation go toward commodities,
lifting cost of everything. They hedge to protect their wealth from the
official debasement process conducted in desperation by the USFed as central
bank. The hedging is done globally. The entire sickening unfolding of events
and powerful effects make for a tremendous blind spot to economists, since QE
is a huge suppressant to USEconomy. The distortion to the entire pricing of
assets is crippling, since cost of money is at the center.
USGOVT DEFICIT WILL
GROW, NOT REDUCE
Warning: the USGovt
budget deficit will spiral out of control. No recovery is occurring. Both the
ObamaCare tax and the Social Security tax hike are inflicting damage on the
USEconomy. The constant competition from Asia with its lower wages, lower
fringe benefits, lower regulatory burden, and lower taxes, together imposes a
tremendous obstacle for the USEconomy. Thus no expansion. The recovery is a
marketing myth and propaganda platform toward which the old fascist kingpins in
the 1930 decade would offer praise. The sequestered federal spending cuts will
reduce economic activity, not restore fiscal health. The USGovt deficits
will grow much larger, toward $1.5 trillion again in the next year or two.
The morons at the helm and in the dead economic brain trust will put to work
their vacant wisdom with austerity and thus introduce the poison pills. The
United States faces a perfect storm.
The USFed monetary
policy suppresses economic activity by raising the cost structure at a time
when almost no businesses are expanding. The untold fact is that the hyper
monetary inflation policy firmly in place, pledged to remain in place for
another three years, will assure an attack on capital, an attack on business,
with a certain rise in business segment shutdowns, with the corresponding job
cuts. The nation has turned hopelessly stupid on all matters economic and
financial, having totally lost its way. America has no concept or comprehension
of capitalism or capital formation. The wretched report card will come in the
form of a quickly rising USGovt deficit, which will be covered by the USFed
central bank printing press that bears a Weimar nameplate. As the USDollar
becomes isolated, so will the USFed in its no so hidden inflation operation to
buy USGovt debt that nobody wants. Its bond principal value is zero, yet it
sports a lofty high value in the marketplace of horrors. It is Third World
toxic paper.
The USFed will become
the near total buyer of the toxic USTreasury Bonds issued. Foreigners will not
simply avoid the purchase of USTBonds. They will continue to react to the
staggering deadly debasement to the USDollar, which undercuts the value of
their savings stored in FOREX reserves. They will actively abandon the
USTBonds, to find a dumping ground for them, like the vast new BRICS
Development Fund, which will morph into a Gold Trade Central Bank. Nations of
the world are forming the USDollar alternative on the trade side, not the
banking and currency side. Once again like a breath of fresh air, banking will
follow trade, a concept that not 2% of American economists understand, or wish
to understand. The US Economists are equally culpable for the systemic failure,
working side by side with the US bankers.
STRIP BERNANKE OF HIS
PhD DEGREE
The Jackass will go so
far as to urge the stripping of the PhD in Economics by one Benjamin Shalom
Bernanke. In the last four years, he has proved vividly how his doctoral
dissertation is incorrect. A flood of liquidity does not in any way remedy insolvency,
as his thesis claimed. He is the principal architect of revisionist history
concerning the Great Depression, used as qualification for succeeding
Greenpasm. Without the Gold Standard in place, the United States would never
have climbed out of the powerful depression 80 years ago. In the present day,
since no Gold Standard is in place, the United States will face systemic
failure, USGovt debt restructure (default), and severe ignominy. By the way, in
all my years, only one time was seen a stripped doctoral degree. A college
professor had his Statistics PhD removed, when a solid young mathematical
statistician proved his thesis as false. Poor Archie! Bernanke provides the
discredited proof by himself, with the principal victim being the US banking system.
It is sclerotic, zombie, and hollowed out. The USEconomy’s industry has been
hollowed out since the 1980 decade, starting with Intel relocating to Japan and
the Pacific Rim. The crowning blow was the dispatch of US industry to China,
replete with Wall Street betrayals that followed their ransacking of Fort Knox.
It is utterly amazing that 95% of American citizens do not care about the empty
vaults in Fort Knox. Actually they are not empty, since they contain nerve gas
in a great repository. Note the irony!
EASTERN EXIT STRATEGY
FROM USDOLLAR
The USFed stated
publicly in early 2009 their desire to pursue an Exit Strategy. The Jackass on
repeated occasions over three years ago refuted and contradicted their claimed
path on monetary policy restoration to normalcy. My belief, borne out as the
case, was that the USFed had painted itself into a corner, could not raise
interest rates, and would be forced instead to monetize the USGovt debt, with
no path offered toward normalcy. That is precisely what happened. Pardon my
lack of deep formal training in Economics, since my wish was not to be
encumbered by the limitations of economics credentials. The economist corps is
little more than a gaggle of Wall Street harlots and USGovt apologists that
operate the propaganda to produce constantly deceptive messages. There is an
Exit Strategy, but it is evident in the East. The Eastern nations are
assembling a Eurasian Trade Zone and a BRICS central bank (aka Development
Fund) with which they will exit the USDollar global reserve standard. In
doing so, they will not require to fill their banking systems any longer with
toxic USTBonds. The end of the USDollar as global reserve is near, visible in
tangible form.
The propaganda has never
run so thick, whether on the sluggish economic recovery, the benefits of new
national health care, the housing market rebound, or the threat of terrorism.
The majority of Amerkans gobble the Goebbels garbled spew from the bank nazis.
One is left to wonder if the US systemic breakdown and failure will be blamed
on Iran or North Korea. Maybe blame will befall the Arabs, who are close to
abandoning the Petro-Dollar defacto standard. When they accept Euros,
Pounds, Yen, and Francs for crude oil, the game is over the lights turned off
on the USDollar reign of terror. Some climax events are very near, warned by
Cyprus, set up by legislation, created by a gradual methodical isolation of the
USDollar for its rejection as global reserve currency. Most Americans regard
the USDollar as their currency, with zero knowledge or awareness of its
function as a global reserve, the staple item within myriad banking systems
across the world. For their error, they will face catastrophic losses to their
life savings, unless they have invested in Gold & Silver bars and coins.
LIQUIDATE BIG BANKS OR
SYSTEMIC FAILURE
Some important messages
should be heard. At the macro level, the entire financial system has become
hopelessly sclerotic. The chronic Western financial crisis is more like a
monetary war for elites to retain control of the production of money, the
setting of rules, the process of confiscation, while they desperately attempt
to preserve the fiat currency system with the USDollar as its flagship. That
ship should fly the Skull & Crossbones as its flag. The refusal to
liquidate the big insolvent banks stands as the quintessential message of
corruption and control to execute the Fascist Business Model, which will result
in systemic failure. With MF-Global and Robo Foreclosure Fraud and Cyprus
Bank Taxes, layered atop the QE to Infinity, the fascist bankers are finally
unmasked. They were never defeated in the 1940 decade. They migrated to the
banks in Switzerland, London, and New York. The big banks no longer serve as
capital formation engines. They no longer serve as business investment
partners. They are pure predators. At a micro level, they are giant hollow
reeds ripe with bond fraud, phony accounting, insider trading, replete with
financial market parasite functions. They are not credit engines for commerce,
but rather carry trade platforms and money laundering centers.
If the big US banks are
not liquidated, absolutely no solution will come, and systemic failure will eventually
occur. They are not too big to fail institutions. They are not systemically
important financial institutions. They are the criminal syndicate foundation
headquarters. If they are liquidated, the nation will enter a USGovt debt
default. It is that simple. Our compromised leadership crew will impose fascist
police state rather than liquidate the big banks where power center lies.
Tainted money and bribery with threats has changed the nation at the top, the
Congress a den of thieves and panderers. As the Italian Mafia prefers to say,
the fish rots from the head down. Thus the need for removing guns, as the great
USDollar devaluation comes and price shock will arrive on the household
doorsteps in the form of much higher food prices (bread, milk, eggs) and much
higher energy prices (gasoline, electricity).
Since the big US banks
will never be liquidated, instead the nation will be liquidated. Its wealth
will be subjected to a vanishing act. The nation’s households suffered the loss of
home equity, under exploit by the banking sector. Their bond fraud and contract
fraud and a plethora of other criminal activity have been converted into
mere business costs, under the tarp of the Fascist Business Model. The
nation’s pensioners have suffered the loss of income, no longer given a
justified yield on their life savings. The futures contract players have been
given fair warning by the MF-Global private account thefts, with an echo from
the Peregrine Financial Group matching private account thefts. The recent bankruptcy
law revision and financial regulatory bill revision have given clear warning in
their many insidious provisions. Next comes the vanishing of private bank
accounts, private pension accounts, private stock accounts, private mutual fund
accounts, and private bank safety deposit boxes. The loss will not be total in
most cases. The sleepy dopey bombarded nation is about to receive a wake-up
call, since all past calls have resulted in the doze button hit, a drowsy pause
for a few more months (years) of sleep.
END GAME MOTIVE TO
IMPOVERISH
A sinister vile
malicious motive is coming into view, hidden for years within legislation,
pushed to the fore by newer regulatory legislation. What is coming is a
magnificent vanishing act of wealth itself, since the Western economic system
has suffered diverse Ponzi symptoms for 20 to 30 years. Its financial
foundation has been built on money fashioned from debt. A major debt downgrade
on private savings, brokerage accounts, pension funds, and more is scheduled,
since money is disguised debt. Worse, a pernicious attack is set to be waged on
private wealth. The first volley was to strip citizens of their home equity,
that prized homestead nest egg of wealth. The second volley has been more
hidden, the removal of wealth held in the stock market. It is held up in value
by hyper monetary inflation. Its purchase power in value diminishes by the
month during the currency debasement process.
The unmasked evil motive has been to buy time. The real purpose of the Zero Percent Interest Policy, complete with its monetary straitjacket in Global QE to Infinity, is to bail out the elite bankers and to delay the systemic breakdown. The only dominant buyer in USTreasury Bonds is the US Federal Reserve, the army of foreign creditors having departed the room long ago when QE2 was launched. The ZIRP & QE morgue toe tags are designed a) to provide a high volume buyer of toxic mortgage bond and related fraud-ridden instruments, b) to keep USGovt borrowing costs down, thus preventing an enormous rise in budget deficits, c) to enable Wall Street speculation in financial markets, with zero cost money, d) to create the USTBond carry trade arena for the big banks, investing in long-term USTBonds, and e) to finance the wars of aggression that attempt to secure supply, while enabling contract fraud. But the ugliest attack on private wealth is left for last, which will shock the nation and introduce the unmistakable police state. It will herald entry to the de-Industrialized Third World.
The unmasked evil motive has been to buy time. The real purpose of the Zero Percent Interest Policy, complete with its monetary straitjacket in Global QE to Infinity, is to bail out the elite bankers and to delay the systemic breakdown. The only dominant buyer in USTreasury Bonds is the US Federal Reserve, the army of foreign creditors having departed the room long ago when QE2 was launched. The ZIRP & QE morgue toe tags are designed a) to provide a high volume buyer of toxic mortgage bond and related fraud-ridden instruments, b) to keep USGovt borrowing costs down, thus preventing an enormous rise in budget deficits, c) to enable Wall Street speculation in financial markets, with zero cost money, d) to create the USTBond carry trade arena for the big banks, investing in long-term USTBonds, and e) to finance the wars of aggression that attempt to secure supply, while enabling contract fraud. But the ugliest attack on private wealth is left for last, which will shock the nation and introduce the unmistakable police state. It will herald entry to the de-Industrialized Third World.
THE 2005 BANKRUPTCY LAW
The law has come front
and center into view. Its features, reinforced by the Financial Regulatory Bill
(aka Dodd-Frank Law) have never been more important than now. The individual
side to the reformed bankruptcy provisions received the most attention,
including for the Jackass. It removed the Chapter 7 wipeout of debts in offset
by assets, done formerly in sweeping step. Once done, the deck cleared, fresh
air abounded, the path made new. However, it made standard Chapter 13, in
restructure of debt with respect to income, establishing a lifetime of tax
obligations. But the corporate side is far more pernicious, learned only
two years ago by the Jackass. It subordinated all bank assets under the
derivatives owned by financial firms. The subordinated structure still exists,
like senior & junior bond holders, savings accounts, certificates of
deposit, mutual funds under management, money market funds, but these all
lie subordinated UNDER the vast derivatives, the unregulated contracts. The
updates to these laws are clear as a cloudless day in bright sunshine. The
United States and United Kingdom, even Canada, have enacted laws that serve as
guidelines in the preservation of the largest banks, by forcing the vanishing
of private accounts. Better described, the laws offer guidelines on the death
of the big banks, since they will be washed clean of assets, including those of
private citizens. The insidious Bail-In Laws will catch attention. Their
invocation in Cyprus was the alarm sounded. Not many Americans heard it
clearly, still distracted, still dopey, still gullible, still incredulous. It
could never happen here?!?!
Protected are the
Systemically Important Financial Institutions (SIMI), the pillars of
corruption, the control towers for the fascist state. The USGovt will protect
the SIMI institutions, as they interpret, not as the people interpret. The
unmistakable conclusion is that a debt slave state is being created, where the
people are to be stripped of wealth. Maybe it was never real anyway, since the
money is debt in disguise, not bonafide money. The private individual assets
are to be lost to dark room assets with no regulatory oversight, in a grand
titration process of derivative acid (H+) acting against private wealth alkali
(OH-) to produce fresh water held for the elite to drink. Here is where the
vicious side is blatant and in your face. The declared losses to private assets
will be at the full discretion of the syndicate bosses. The size of derivative
exposure is 1000 times greater than private assets. Therefore, the law
appears to be a device to impose national poverty via eradicated wealth, since
the private wealth in no remote manner is of sufficient magnitude to restore
the banks to health. Thus the interpreted debt slave state within the
fascist police state.
The FDIC has been
transformed, not to insure depositor wealth, but to remove it, to confiscate
it, to tax it, and to make it vanish. Protection comes from removal of personal
assets from the financial and banking system altogether. It would be best to
use the banking system in a utility function, for cash flow purposes,
maintenance of bill payment, the account balances kept to a minimum in case of
confiscation suddenly during unscheduled bank holiday. Ideal to invest in Gold
& Silver bars & coins, kept outside banks, preferably outside USA. A
powerful wave of devastation comes.
GOLD MARKET DIVERGENCE
The Jackass forecast of
2009 and 2010 and 2011 and 2012 is coming to pass. The divergence between
the paper Gold price dominated by futures contracts, and the physical Gold
price dominated by purchase and delivery of the metal bars, has grown wide and
will grow wider. While many are heard in the hue & cry of the declined
supposed Gold price, it is not the Gold price. It is the corrupted paper Gold
price that the deceived masses focus too much on. The professionals in the Gold
market who actually act on contracts for large volume deliveries are noticing
the strains on supply, which is fast disappearing. The true Gold price is much
higher than advertised by the corrupted networks devoted to the financial
syndicate in charge. The drainage of the COMEX and LBMA is hastened, made quick
by the discount offered. The Boyz are draining their own blood on stage in full
view, but the majority within the gold community are lamenting the falling
corrupted price. What irony! The Boyz in New York and London are committing
bank suicide on the global stage, yet the investor crowd cannot see. When the
big US and London bank vaults are empty of gold bullion, the game will suddenly
change. The power will shift to the East. The USDollar will be devalued,
buried, replaced. The Gold Standard will rise in the East like the sun in a
new dawn, but a standard based in trade settlement that will turn the West
upside down.
The Shanghai Metals
Exchange sports a significant useful practical Gold price spread, higher than
the posted London and New York price. It has opened the door for arbitrage for
the last two months or more. My firm suspicion is that the BRICS Development
Fund will convert USTreasury Bonds by means of the Shanghai window, thus
draining the London centers of their gold bullion. As of 8am today in
London, the Shanghai Gold price had a 1591 handle, compared to a 1555 handle in
London. That constitutes a $36/oz spread, very feasible for arb trades and the
associated drainage of London metal. The professionals are having a field day,
exploiting the artificially offered Gold price achieved from yet more naked
gold futures contract shorting. The depletion of the SPDR Gold Trust (GLD
shares) continues at a frenetic pace. The big US banks are shorting the GLD
shares, removing its gold bar inventory overnight, and selling into the market.
Or else they are covering their similar sales obligations in like manner. The
key to the divergence is that as the phony paper Gold price declines more and
more, it signals the demise of the COMEX itself, a shutdown. The event
cannot happen without the price divergence, the fast falling paper Gold price
versus the stable rising physical Gold price. When the COMEX goes dark, from
depleted inventory, from vacated client players, the Gold price will actually
not be known for some time. Then later, it will be on display from various key
centers across the globe, including Shanghai where naked futures contract
activity is not sponsored by the state.
The Jackass rejoices at
the utter desperation in pushing down the paper Gold price. It signals a fierce
unspeakable urgency to fight the inevitable collapse underway. The rumors are thick
of a grand systemic event that arrives soon, very soon. One will recognize it
by the multitude of citizens with mouths hung open in disbelief. The bank Nazis
will not see their massive pillars, their syndicate hives be ruined without
stripping the US nation of its private wealth. The US is due for a Cyprus-like
event soon, very soon. The remaining freedom afforded can be exercised in
purchasing Gold & Silver bars and coins, after removing funds from the
financial system governed and controlled and denominated by the USDollar. Time
is running out. Signals are deafening as in screeching loud shrill.
1 comment:
Finally a article that predicts in reality, using the grey stuff in between the ears. People like this should be asked their opinion on nesara and these so called trusts. Ask people like John Craig Roberts, Max Kaiser, Deep Caster, Marc Faber, Jim Rogers, Peter Schiff, Ron Paul. I want to know what they think of nesara. What I don't want is some channeled new age bullcrap by aliens from space or something penned in poetic nonsense or crap about dragon societies or it can now be "reported". Basically 98% of this blog.
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