You must understand,
if you plan to survive.
That is this year!
Dr. A. H. Krieg
People simply do not understand our banking system. The reason they don’t is because it is built on a lot of lies that
have been perpetuated every day since 1910. That is the year the banksters had
their meeting at Jekyll Island and planned the set up of the FRS, the largest
private monopoly in existence. It came into being in February 1913 as the 16th
amendment to the Constitution. Within the coming decade the free market
capitalist system of democratic constitutional republican government will be
terminated. I predicted the end in 2,000 in my book, “July 4th 2016
the Last Independence Day” Anyone who tries to tell you that the issues of FRS
development are happenstance occurrences is lying. Rickards in his book, “The
Death on Money” says exactly the same thing.
The presently operating banking system, at the cusp of its
collapse, is like a dying animal on its last breath. It is the harbinger of things to come, the end of capitalism and
the coming failure of all capital markets, and with that the assumed end of
America as you know it. Obama was right, “We will fundamentally change
America!” and so was Nikita Khrushchev when he addressed the UN General
Assembly. The cause of the coming failure does not lie in the stock and bond
markets; it is based in the sovereign bond (1) markets upon which the
bankster’s monetary policies have been based for just under 100 years.
Sovereign
bonds have in the past been considered as the only real safe or “risk free”
investments in the speculation world. This premises has been proven wrong many
times in the 20st century. There are four basic reasons for
Sovereign funds, 1) to hedge against the volatility of commodities, 2) nations
whose primary income is from the exports of natural recourses, and 3) To
diversify away from the volatility of monitory cash holdings in low-yield US
notes, and 4) to save capital for some future need.
The so called ‘Prime Dealers” in sovereign funds are a group
of about 20 major banks, in fact the 20 largest banks in the world. Anyone even remotely articulate in economics would recognize all
their names. These are of course also the major beneficiaries of quantetative
easing policies, i.e. QE-1, QE-lite QE -3 and then the continuation beginning
in March 2011 with QE-4, $85 billion per month gradually tapering to $55
billion per month today. (2) In other words none, not a single one of the QE
bailouts had anything to do with boosting the infrastructure, shovel ready
jobs, creating employment, or anything to do with the economy of the country it
was a bank bailout to prevent the imminent bank collapse which I had predicted
in fall of 2008, on December one 2008, QE-1 was announced.
Prime
dealers attend an auction to purchase US treasuries periodically. The first
thing to understand is that in order for these sovereign funds to be sold there
must be a buyer.
By 2010
buyers were hard to come by, and by 2011 there were none. (3) It must also be
made Chrystal clear that Russia and China are dumping US Treasury note at
breakneck speed, in anticipation of the collapse of the petro-dollar, and they
are buying gold with the proceeds of the sales.
The FRS
and Treasury then embarked on a scheme of issuing fiat and simply purchasing it
with fiat created out of thin air. I.E. the money used to purchase the QE
issued notes was not backed by loans, not by hard assets, it was backed by
nothing, and it was worthless, in fact there was no paper issue, they were all
simply digitalized transfers on non-existent funds to member banks. .
This
process well known in the Weimar Republic results in gradually increasing
inflation, which in America today over the last 10 years has been about 76%; or
annually just over 7% per year.
This
newly created money is then transferred to the 12 FRS banks plus the other
“Prime Dealers” as an asset on their balance sheets. Let me be absolutely clear
about this, if any business in the world executed such a charade’ the CEO, CFO
and board of directors would be in a federal penitentiary in a NY minute.
Once that
electronic paper transfer is completed the primary dealers can leverage that
new asset on their balance sheet by fractionally lending, buying, trading,
issuing mortgages, and corporate bonds until 90% of the issued transferee has
been consumed.
Let me
spell this out; a wire transfer of an non existent asset backed by nothing is
entered on the balance sheet of a large bank, which then uses that non-existent
asset as a basis to create more debt. So, to further clarify; the money
amount transferred onto the prime dealers which is in fact worthless, is then
loaned out as a bank asset to 90% of the transferred amount. QE-1 was $100
billion plus $600 billion MSB (4) plus 100 billion to expand the housing market
(5) for a total of $ 800 billion, when it was transferred to the prime dealers
they loaned out an additional $ 720 billion for a total financial exposure of
$ 1.52
trillion.
Just
remember this is only QE-1, four more followed, and
continue as you read.
Then came
the 2007-8 financial crises in which the FRS tried to eliminate the risk of
failure for the primary dealers by spreading their toxic and un-collateralized
debt to the taxpayers by funneling billions of dollars to them through other
and various lending means.
They
simply took the debt held by the primary dealers and transferred it to the
federal debt that is now the taxpayers burden to repay. It is our
national debt that is now about $17.6 trillion.
You have been seriously cheated!
The first serious result of this was when the Treasury lost its
triple AAA rating for their issued paper, just like Greece, Spain, Iceland,
Ireland, Argentina, and so on. This is the ridiculous Fabian socialist,
Keynesian economic system established in 1944 at Bretton Woods, NH, by
homosexual John Maynard Keynes, for the UK and his American buddy communist
spy, Harry Dexter White.
The chickens have come home to roost and it will not be nice.
(1)
Sovereign bonds are loan instruments issued by governments in any
country and usually denominate in a foreign currency. The currency used will
most likely be the Euro, Dollar or Swiss Frank (what were hard currencies)
Countries that have unstable currency tend to issue bonds in a stable currency
because it lowers the default risk. These bonds are usually discounted. Brady
Bonds issued by developing economies is a common example of sovereign debt
securities.
(2)
QE-4
(3)
Interest rates were too low. Banks could borrow money from the FED
at 1.5% buy treasuries at 3% and pocket 2.5% without work or risk.
(4)
Mortgage Backed Securities.
(5)
Freddy and Fannie
