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 quantetive 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 blance 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 uncollateralized 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.
- 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.
- 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.
- Mortgage Backed Securities.
- Freddy and Fannie
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