EURO, ECB, DOLLAR, FED
All Must Go!
By Wayne Jett © July 28, 2015
The dollar issued by the privately owned Federal Reserve will fall from its status since 1944 as the global reserve currency. The big Wall Street banks will fail. The U. S. federal government will collapse into insolvency. Congress, the Executive Branch and Judicial Branch have been complicit in financial fraud, economic and political suppression, and international aggression which will produce these cataclysms, and will not prevent them. Should we discuss it?
No Exit from Fed’s Balance Sheet
Addressing first the financial and economic issues raised by mainstream analysts, the U. S. dollar cannot be saved. The Federal Reserve has no practical path for removing nearly $4 trillion admittedly added to the monetary base since mid-2008. The same is true of about $1 trillion in Treasury securities purchased by the Fed in off-shore proxy accounts located in Belgium, Luxembourg, Ireland, Switzerland and the Caribbean.
The Fed has bought about $3.5 trillion of Treasury debt at par, monetizing federal debt as essentially the only buyer maintaining the market for those securities. The Fed’s prospects for selling those securities at prices close to par, while at the same time leaving the Treasury market to other buyers, are nil.
The same may be said of the Fed’s prospects for removing monetary base created to purchase $2.5 trillion in mortgage securities. Especially this is so if conditions include a return to market interest rates amid collapses of the dollar, the economy and the federal government.
Reports indicate the U. S. has exported to the Bank of Japan, at least temporarily, the Fed’s QE obligations for monetizing Treasury debt. The apparently clandestine U. S. actions have complicated relations between the two governments. The largest Japanese retirement fund of about $1.2 trillion is reportedly now invested in Treasury securities rather than Japanese bonds, which brings risk of collapse upon default of U. S. debt and the same “no exit path” dilemma the Fed has created for itself.
The True Price of Gold
Those who trust markets to set the price of gold, and thus the value of the dollar, ought to reconsider what they are seeing as the price of gold. The price of gold quoted in U. S. markets is set based on futures contract prices for “paper gold,” rarely delivered as physical gold. Futures contract prices are subject to manipulation by trading practices, as commonly occurs with corporate shares.
A primary means of producing a declining price for paper gold is through the enormous amount of interest rate derivatives created by Wall Street banks (many $trillions), which require dollars for settlement as they are rolled over. This produces a very large temporary demand for dollars presently, keeping those dollars from flowing into gold.
Another major use of dollars under the zero interest rate protocol of the Fed is the “carry trade.” Big banks borrow from the Fed at near-zero rates, use those dollars to buy U. S. or foreign government securities at a higher rate, and carry the difference to their bottom lines as effortless, seemingly risk-less profits.
The lower “paper gold” price assists the false appearance of a “strong” dollar, as if trillions of new dollars in monetary base are finding plenty of uses in a vibrant, growing economy. In fact, the U. S. economy has been contracting year-upon-year since 2009. Nothing in the global economy justifies a strong dollar presently, especially if projection of military power is subtracted from consideration.
The Coming Reckoning
Interest rates will rise, as markets will demand eventually, and it will occur most likely despite the Fed, rather than by the Fed’s action. The Fed’s balance sheet will be destroyed. The big banks’ derivatives pyramid will collapse. Wall Street banks will become insolvent. The global market for Treasuries will be flooded with sellers. Dollars will flood into the U. S. to buy assets. Dollar prices of food, products and assets will explode, not from rising demand or falling supply, but from corrupt monetary practices by the Fed.
With big banks and the federal government desperate to save themselves from their profligate ways, they will hope to seize property of depositors and taxpayers. Rumors of such plans have been rampant for years. Bank deposits, retirement plan assets, precious metals, currency devaluation – all will be at risk as those responsible for the debacle seek to transfer their pain to the people.
` Each of these developments is a product of financial criminality perpetrated by fiat currency regimes, international banks, corporate monopolies and shadow governments which control western countries. These institutions do not seek our well-being, but try to assure that the people do badly as their own wealth and power increases. This reality is imposing itself presently. Our challenge is to improve the outcome for ourselves, our families and society as broadly as possible.
Greece and America
Greece illustrates the U. S. and global dilemmas on a smaller scale. Its currency (the euro) is fiat, as is the U.S. dollar, meaning it is issued by an organization “independent” of public control or supervision, and the currency has no intrinsic value – only such value as users presume it to have. Private central bankers take part of the value of the currency earned by producers, calling this theft “inflation” and “stimulative,” by creating too much currency and lending (or giving) the excess to their sponsors on favorable terms.
Producers (workers) lose purchasing power through inflation, but are pacified by “free” government services paid for with borrowed currency. Debt thus created has no source for repayment, since higher taxes added to inflation on producers would simply hasten their impoverishment and bankruptcy. Even government spending is diverted substantially from domestic services to “defense” against “terrorist” and other threats created by the same private powers which control central banks, weapons producers and governments.
By much the same process as Greeks experienced, Americans find themselves and their government burdened by debts far beyond their capacity to repay. Instruments used to create the Greek collapse are the European Union, the European Central Bank and the euro in the case of Greece. In America, the Federal Reserve and its fiat dollar were the chief culprits. The captured governments of Greece and the U. S. played their subservient parts, of course.
All of these operatives should go, and sooner rather than later. They are instruments of abuse whose malicious schemes and acts presently focus upon harnessing Greeks to the plow of government debt, while priceless national assets gained over centuries of societal efforts are liquidated at fire-sale prices. Does this not bring to mind Weimar Germany in the 1920s and America in the 1930s?
The same aggressive pecuniary forces which operated in the shadows of the Great Depression will, if not interdicted, subjugate Greece, all of southern Europe, and America. To achieve those ends, war – even world war – is a tool they are eager to use, if permitted to do so. They should be stopped and dismembered. ~