Archive for November, 2012
The topic of last week’s post, the likely fate of Israel in the twilight years of American empire, makes a good example of more than one common theme. As I commented in that earlier discussion, Israel is one of several American client states for whom the end of our empire will also be the end of the line. At the same time, it also highlights a major source of international tension that bids fair to bring in a bumper crop of conflict in the decades before us.
The word “irredentism” doesn’t get a lot of play in the media just now, but my readers may wish to keep it in mind; there’s every reason to think they will hear it fairly often in the future. It’s the conviction, on the part of a group of people, that they ought to regain possession of some piece of real estate that their ancestors owned at some point in the past. It’s an understandably popular notion, and its only drawback is the awkward detail that every corner of the planet, with the exception of Antarctica and a few barren island chains here and there, is subject to more than one such claim. The corner of the Middle East currently occupied by the state of Israel has a remarkable number of irredentist claims on it, but there are parts of Europe and Asia that could match it readily—and of course it only takes one such claim on someone else’s territory to set serious trouble in motion.
It’s common enough for Americans, if they think of irredentism at all, to think of it as somebody else’s problem. Airily superior articles in the New York Times and the like talk about Argentina’s claim to the Falklands or Bolivia’s demand for its long-lost corridor to the sea, for example, as though nothing of the sort could possibly spill out of other countries to touch the lives of Americans. I can’t think of a better example of this country’s selective blindness to its own history, because the great-grandmother of irredentist crises is taking shape right here in North America, and there’s every reason to think it will blow sky-high in the not too distant future.
That’s the third and last of the hot button topics I want to discuss as we close in on the end of the current sequence of posts on the end of American empire, and yes, I’m talking about the southern border of the United States.
Many Americans barely remember that the southwestern quarter of the United States used to be the northern half of Mexico. Most of them never learned that the Mexican War, the conflict that made that happen, was a straightforward act of piracy. (As far as I know, nobody pretended otherwise at the time—the United States in those days had not yet fallen into the habit of dressing up its acts of realpolitik in moralizing cant.) North of the Rio Grande, if the Mexican War comes to mind at all, it’s usually brushed aside with bland insouciance: we won, you lost, get over it. South of the Rio Grande? Every man, woman and child knows all the details of that war, and they have not gotten over it.
That might not matter much on this side of the border, except for two things. The first, which I’ve discussed here several times, is the dominant fact of 21st century North American geopolitics, the failure of US settlement in the dryland West. In the heyday of American expansion, flush with ample wealth from undepleted resources and unexhausted topsoil, the United States flung a pattern of human ecology nurtured on the well-watered soils of the Ohio and upper Mississippi valleys straight across the continent, dotting the Great Plains and the dry lands between the mountains with farms and farm towns. The dream was that these would follow the same trajectory as their predecessors further east, and turn into a permanently settled agricultural hinterland feeding wealth into newborn cities.
The Dust Bowl of the 1930s was the first sign that this grand fantasy was not going to be fulfilled. Behind the catastrophic impact of farming techniques poorly suited to the fragile western soils was a deeper, natural cycle of drought, one that the native peoples of the West knew well but white settlers were by and large too arrogant to learn. Since then, as the vulnerability of agriculture on the southern Plains to cyclical drought and other ecological challenges has become more and more clear, the usual response—throw more money and technology at it—has solved problems in the near term by turning them into insoluble predicaments in the longer term. Thus, for example, farmers faced with drought turned to irrigation using water from underground aquifers that date from the Ice Age and haven’t been replenished since then, gaining temporary prosperity at the cost of permanent ruin later on.
The details vary from region to region but the effect is the same. Across the dryland West, from the Great Plains to the Cascade and Sierra Nevada ranges, a new kind of ghost town is emerging alongside the old breed from the days of the gold and silver rushes. Homes, churches, schools, city halls sit empty as tumbleweeds roll down the streets; with the decline of the old agricultural economy, all the townsfolk, or all but a few stubborn retirees, have gone elsewhere. There are county-sized areas in several of the Plains states these days that once again fit the old definition of frontier: fewer than two non-Native American people per square mile. In response, the vacuum is being filled by the nearest nation that has enough spare people and cultural vitality for the job.
I encourage those of my readers who doubt this claim to book a long bus trip through any of the major agricultural regions of the United States west of the Mississippi valley. You’ll want the run that stops at every other two-bit farm town along the way, because that’s where you’re going to see a significant part of America’s future: the towns that are Mexican by every standard except for a few lines on a map. It’s not just that the signs are all in Spanish; the movie posters in the video shop windows are for Mexican movies, the snacks in the gas stations are Mexican brands, the radio announcers are talking excitedly about Mexican sports teams and the people on the street are wearing Mexican fashions. Such towns aren’t limited these days to the quarter of the United States that used to be half of Mexico; they can be found in most of the country’s agricultural regions, and increasingly beyond them as well.
In the United States, this isn’t something you talk about. There’s plenty of rhetoric about immigration from Mexico, to be sure, but nearly all of it focuses on the modest fraction of those immigrants who cross into the US illegally. Behind that focus is another thing people in the United States don’t talk about, which is the bitter class warfare between America’s middle class and its working class. Illegal immigration is good for the middle class, because illegal immigrants—who have effectively no rights and thus can be paid starvation wages for unskilled and semiskilled labor—drive down the cost of labor, and thus decrease the prices of goods and services that middle class people want. By the same token, illegal immigration is bad for the working class, because the same process leaves working class Americans with shrinking paychecks and fewer job opportunities.
Nobody in the middle class wants to admit that it’s in their economic interest to consign the American working class to misery and impoverishment; nobody in the working class wants to use the language of class warfare, for fear of handing rhetorical weapons to the next class down; so both sides bicker about a convenient side issue, which in this case happens to be illegal immigration, and they bicker about it in the shrill moral language that afflicts discussions of most issues in today’s America, so that the straightforward political and economic issues don’t come up. Meanwhile, the demographic shift continues, and redefines the future history and cultural landscape of the North American continent.
Students of history will recognize in the failure of US settlement in the dryland West a familiar pattern, one that is also under way on the other side of the Pacific—the Russian settlement of Siberia is turning into a dead end of the same kind, and immigrants from China and other Asian countries are flooding northwards there, quite probably laying the foundations for a Greater China that may someday extend west to the Urals and north to the Arctic Ocean. Still, there’s another pattern at work in North America. To make sense of it, a glance at one of the core sources of inspiration for this blog—the writings of Arnold Toynbee—will be helpful.
Central to Toynbee’s project, and to the sprawling 12-volume work A Study of History that came out of it, was the idea of putting corresponding stages in the rise and fall of civilizations side by side, and seeing what common factors could be drawn from the comparison. Simple in theory, that proved to be a gargantuan undertaking in practice, which is why nearly all of Toynbee’s career as a writer of history was devoted to that one project. The result is a core resource for the kind of work I’m trying to do in this blog: the attempt to gauge the shape of our future by paying attention to the ways similar patterns have worked out in the historic past.
One pattern that has plenty of examples on offer is the evolution of borderland regions caught between an imperial power and a much poorer and less technologically complex society. Imperial China and central Asia, the Roman world and the Germanic barbarians, the Toltecs of ancient Mexico and their Chichimec neighbors to the north—well, the list goes on. It’s a very common feature of history, and it unfolds in a remarkably precise and stereotyped way.
The first phase of that unfoldment begins with the rise and successful expansion of the imperial power. That expansion quite often involves the conquest of lands previously owned by less wealthy and powerful nations next door. For some time thereafter, neighboring societies that are not absorbed in this way are drawn into the imperial power’s orbit and copy its political and cultural habits—German tribal chieftains mint their own pseudo-Roman coins and drape themselves in togas, people very far from America copy the institutions of representative democracy and don blue jeans, and so on. A successful empire has a charisma that inspires imitation, and while it retains its ascendancy, that charisma makes the continued domination of its borderlands easy to maintain.
It’s when the ascendancy fails and the charisma crumbles that things start to get difficult. Toynbee uses a neat if untranslatable Latin pun to denote the difference: the charisma of a successful imperial power makes its borderlands a limen or doorway, while the weakening of its power and the collapse of its charisma compels it to replace the limen with a limes, a defensive wall. Very often, in fact, it’s when a physical wall goes up along the border that the imperial power, in effect, serves notice to its historians that its days are numbered.
Once the wall goes up, literally or figuratively, the focus shifts to the lands immediately outside it, and those lands go through a series of utterly predictable stages. As economic and political stresses mount along the boundary, social order collapses and institutions disintegrate, leaving power in the hands of a distinctive social form, the warband—a body of mostly young men whose sole trade is violence, and who are bound by personal loyalties to a charismatic warlord. At first, nascent warbands strive mostly with one another and with the crumbling institutions of their own countries, but before long their attention turns to the much richer pickings to be found on the other side of the wall. Raids and counter-raids plunge the region into a rising spiral of violence that the warbands can afford much more easily than the imperial government.
The final stages of the process depend on the broader pattern of decline. In Toynbee’s analysis, a civilization in decline always divides into a dominant minority, which maintains its power by increasingly coercive means, and an internal proletariat—that is, the bulk of the population, who are formally part of the civilization but receive an ever smaller share of its benefits and become ever more alienated from its values and institutions. This condition applies to the imperial state and its inner circle of allies; outside that core lies the world of the external proletariat—in the terms used in earlier posts here, these are the peoples subjected to the business end of the imperial wealth pump, whose wealth flows inward to support the imperial core but who receive few benefits in exchange.
The rise of warband culture drives the collapse of that arrangement. As warbands rise, coalesce, and begin probing across the border, the machinery that concentrates wealth in the hands of the dominant minority begins to break apart; tax revenues plunge as wealth turns into warband plunder, and the imperial state’s capacity to enforce its will dwindles. The end comes when the internal proletariat, pushed to the breaking point by increasingly frantic demands from the dominant minority, throws its support to the external proletariat—or, more to the point, to the successful leadership of one or more of the external proletariat’s biggest warbands—and the empire begins its final collapse into a congeries of protofeudal statelets. Much more often than not, that’s how the final crisis of a civilization unfolds; it’s also one standard way that common or garden variety empires fall, even when they don’t take a civilization down with them.
As the United States faces the end of its overseas empire and the drastic contraction of an economy long inflated by imperial tribute, in other words, it faces a massive difficulty much closer to home: a proud and populous nation on its southern border, with a vibrant culture but disintegrating political institutions, emergent warbands of the classic type, a large and growing demographic presence inside US borders, and a burning sense of resentment directed squarely at the United States. This is not a recipe for a peaceful imperial decline.
Nor is there much hope that the classic pattern can be evaded: the wall has already gone up, in the most literal sense, and the usual consequences are following. The warbands? The US media calls them “drug gangs,” since their involvement in drug smuggling across the border makes good copy. They haven’t yet completed the trajectory that will make them the heirs of the Huns and Visigoths, and in particular, the rock-star charisma that surrounds great warlords in an age of imperial collapse has only just begun to flicker around the most successful leaders of the nascent Mexican warbands. Give it time; the glorification of the gangster life that pervades popular culture toward the bottom of the socioeconomic pyramid these days shows that the seeds of that change have long since been planted.
Can anything be done to prevent this from proceeding all the way to its normal completion? At this stage in the game, probably not. An empire in the days of its power can sometimes stop the spiral by conquering the entire region—not merely the border area, but all the way out to the nearest major geographical barrier—and absorbing it fully into the imperial system; that’s why Gaul, which had been a source of constant raids against Roman interests early on, didn’t produce many warbands of its own in the years of decline until it was conquered and settled by Germanic tribes from points further east. Had the United States conquered all of Mexico in the 1870s, admitted its states into the Union, and integrated Mexican society fully into the American project, that might have worked, but it’s far too late in the day for that; the polarization of the borderlands is already a fact, so is the bitterness of a dispossessed people, and so is the ongoing unraveling of American power.
The other endpoint of the process—the only other endpoint of the process that can be found anywhere in recorded history—is the collapse of the imperial power. The United States has prepared plenty of other disasters for itself, by way of its unusually clueless choices in recent decades, and some of them are likely to hit well before the defense of the southern border becomes its most pressing and insoluble security problem. Still, I would encourage those of my readers who live in the dryland West, especially those within a state or so of the southern border, to keep an eye open for the first tentative raids, and perhaps to read up on what happened to those parts of the Roman Empire most directly exposed to warband incursions in the twilight years of Roman rule.
I would also like to ask any of my readers who are incensed by the above to stop, take a deep breath, and pay attention to what is and is not being said here. Again, the shrill rhetoric of moral judgment that treats every political question as an opportunity for self-righteous indignation, popular as it is, has no particular value in this context. More than a century and a half ago, American politicians decided to go to war with Mexico; over the next century or so, as a result of that decision and its cascading consequences, the social order basic to any viable society will most likely be shredded over a sizable part of what is now the United States, and stay that way for a good long time. That’s simply one of the things that can happen when an empire falls, and it’s something many of us can expect to see here in America in the years ahead.
End of the World of the Week #50
As previous entries in this series have shown, predicting the end of the world is a chancy business, and your likelihood of being proved wrong and made to eat crow is very high. There’s at least one way to avoid that awkward detail, though—make sure you don’t survive to see the failure of the prophecy—and a certain number of apocalyptic true believers have used that escape hatch.
The Orderof the Solar Temple—l’Ordre du Temple Solaire, for purists—was one of those. It emerged out of the New Age scene in the late 1980s, attracting a wealthy clientele in Quebec and a variety of European countries with a free mix of New Age philosophy and rituals borrowed from a range of occult traditions. Its founders, Luc Jouret and Joseph Di Mambro, started with a set of utopian fantasies of the usual sort, but as time passed and a New Age of peace and brotherhood unaccountably failed to dawn, they strayed further and further into the apocalyptic flip side of those fantasies. By the early 1990s the Solar Temple was preaching that the middle of that decade would see vast environmental catastrophes that would exterminate most if not all of the human race.
Most prophets of doom prefer to wait around, like Harold Camping, to see the end arrive, but Jouret, Di Mambro, and many of their followers were made of sterner stuff. That’s why they killed themselves en masse over a period of a few days late in November, 1994. The vast environmental catastrophes failed to arrive, of course, but that was no longer anything Jouret or Di Mambro had to worry about.
—for more failed end time prophecies, see my book Apocalypse Not
By Jim Willie – GoldenJackass.com
- the Gold Standard will return out of the force of value and valid solution
- the Zero Percent Interest Rate Policy assures the continued Gold Bull Market
- the continued Quantitative Easing assures the shrinking profit margins, job cuts, reduced business
- the ZIRP & QE assure eventual USGovt debt default and systemic failure
- criminal activity is rising to keep the fiat paper currency system in place
- with the rise in official govt gold accounts demanded for repatriation
- THE ALLOCATED GOLD ACCOUNT SCANDAL is growing near
- the movement of large Gold volume from London to East brings with it a grand shift in geopolitical power
- the advent of Gold Wars comes after sovereign bond busts, allocated gold account demands
- a Wild Card comes with the imminent death of King Abdullah, as the House of Saud will fall
- with it goes the Petro-Dollar, a crippling blow to the USDollar itself
- the Gold Price will break out in all major currencies, having been led by the EuroGold price
Several immutable Gold Rules appear to be self-evident and powerfully manifested in the modern world of banker corruption, financial market intervention, currency debasement, phony accounting, and economic deterioration, all amidst powerful incessant media propaganda, against a backdrop of endless war. The global fascism movement has taken deepest root in what during the 1960 through 1980 decade was the capitalism regions steeped in democracy. Since the Lehman Brother scuttle and the Fannie Mae adoption and the AIG black hole admission, the financial crisis that began with the housing bubble and subprime mortgage bust has turned virulent. The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen. In the last 12 to 18 months, the monetary war has again morphed, this time into a far more serious and financially violent global Gold War. Nations are fast realizing that their only true liquid assets of value are their gold reserves, and even they have been tampered with or stolen in a vast re-hypothecation scheme.
The Gold War is on, having moved to a higher gear, but nowhere near a climax gear. The true value of gold is being realized. The strength of gold during insolvency crisis is being observed. The resistance and rescue from the plague of insolvency is being made clear on a global stage. The new important part of the Gold War comes with the Allocated Gold Account scandal which will dwarf the LIBOR and MFGlobal scandals. The demands for repatriated gold accounts, primarily from the criminal bank sectors in London and New York, have amplified. Germany has finally joined with demands for gold repatriation. The demands will continue to grow even as tampered gold bars add to the motivation to repatriate. If only Chavez of Venezuela knew that he was to start a global trend to call gold home, in a Gran Aletazo de Mariposas. The grand butterfly flapping has caused a whirlwind that will turn into a tornado to wreck the central banks in a final death blow.
GOLD STANDARD RECALL
The law can be stated: The Gold Standard will return from a sheer standpoint of value, stability, and resistance to storms based in failed bond auctions, debt writedowns, and insolvency consequences. Only a hard asset backed new currency can replace a fiat paper currency reserve.
The law is self-evident and being manifested, with alarm if not deep trepidation by the financial leadership among the Western nations. While the central banks and the finance ministers stumble around seeking solutions, applying patches, making money free, redeeming toxic bonds, and otherwise bumbling in the midst of their own balance sheet and fiscal ruin, the emergence of Gold has become clear. It is the only asset rising of recognized value during the grand debasement of money committed by the central banks. It is the only asset whose value is being demonstrated as strong during the fiscal cliffs that so many major industrial nations have already gone over. They are not approaching fiscal cliffs. Four consecutive years of USGovt deficits over $1.3 trillion amply demonstrate to anyone with an uncorrupted view and unaltered pulse that the crash into the canyon floor is next, not the plunge over the cliff. Downward acceleration and speed have already been achieved.
As nations and continents come to realize their new debt compositions are nothing more than a series of shots of tequila for the patient suffering delirious tremens from alcohol poisoning, they are coming to the painful conclusion (for them) that a Gold Standard is the only solution. Applications of more paper mache accomplish nothing when the base of paper is rotten. The Gold Standard will be imposed upon them by the global rebellion against the USDollar, which will emanate from the trade sector. The Gold Standard will return, in the form of trade settlement as its payment core, as in the short-term trade notes. The bank cartel will be brought into the standard from which they broke away in 1971 with the abandoned Bretton Woods Accord. They will be brought in kicking and screaming, since only Gold can and will properly bring the nations out of the wilderness from the chaos. Once more, the banking systems will follow the trade system, rather than the corrupt banks dictating terms on reserves management in fiat paper currencies which disseminate toxic bonds. It has been backwards for 30 years.
CENTRAL BANK EXTREMES
The law can be stated: The Gold Bull continues unbounded with the Zero Percent Interest Policy (ZIRP) as its primary cylinder, while the artificial 0% distorts all financial markets, all assets, and all value. The Gold Bull will continue until the USGovt debt default, and until the USDollar retirement.
The 0% official rate has been declared as permanent, if the words of USFed Chairman Bernanke are properly interpreted. A sliding forward promise, first told as end 2013, later revised to end 2014, later to be end 2015, is a clear signal to those with an active brain stem. It is permanent. The 0% rate, however maintained like with Interest Rate Swap contracts, renders all financial markets as grossly distorted, since most assets have a value that extends from the cost of money. But practically, the USGovt debt cannot manage a rate hike, or else the borrowing costs approach the size of major social programs, even approach the size of the USMilitary offense budget. A rate hike would break the entire debt structure and result in a quick default and wreckage of the entire USTreasury Bond complex. Worse, a rate hike would cause a sudden collapse of the support structures bound within the vast derivative complex. This complex has enabled the US financial structure from a collapse that should have occurred around the 1998 to 2001 timeframe. Also, a rate hike would bring ruin to the big US banks heavily committed to the USTBond carry trade, for easy risk-free profits. Recall the Jackass forecast of a USGovt debt default, the position stated in the last months of 2008. The event is coming true.
The Gold Bull is powered by the negative real rate of interest. Its calculation is made simple by the 0% official rate. But take the prevailing consumer price inflation rate of about 8% to 10%, subtract it from the rate earned, tied to long-term USTBonds. The result is a negative real rate at minus 6% or minus 7%, sufficient to power the Gold Bull Market. Given the permanent ZIRP policy, the Gold Bull is in permanent mode. All talk about the Gold Bull Market having run its course is based on vacant arguments and nonexistent logic. It is the propaganda of fools, even desperate people. Calls that the bull in gold has run its course since it hit the $1000 level were laughed at by the Jackass a few years ago. Calls from the same scummy deceptive corners that the bull in gold has run its course since it almost reached the $2000 level are also ridiculed. No solutions have been installed, and the grand debasement of money persists without end. Many doubters and critics of the Gold Bull Market will be humbled when it vaults past that level. The justification, numerous as they are, are gaining attention. The Jackass is glad to help the process along, and to silence the corrupt corners.
The law can be stated: The bond monetization known as Quantitative Easing (QE) powers the upward move in the cost structure for the global economy. The result is a shrinking profit margins imposed on the entire economies, felt in job cuts and reduced budgets for expansion, even maintenance.
The expanded bond monetization has been declared as permanent, if the words of USFed Chairman Bernanke are properly interpreted. A sequence of bond purchase commitments, including both USTBonds and Mortgage Bonds, to meet urgent calls to address the quagmire, is a clear signal to those with an active brain stem. It is permanent. In fact, the QE3 has some rather obvious motive to cover the multi-$trillion mortgage bond fraud, thus permitting a possible housing market recovery. Not gonna happen. The foreign bond creditors have vanished, with only a scattering of Japanese and Chinese investors serving as the bulk of foreign demand. In order to prevent the short-term USTBill yields from shooting up to 5% suddenly, in order to prevent the long-term USTBond yields from shooting up to 10% suddenly, the USFed has made a series of commitments to buy the USGovt debt. Nobody seems to want it, nobody seems to afford it (savings vanishing act), nobody seems to find it as holding value anymore. Besides, deep criminal banker fraud is becoming recognized in story after story. Without the vast QE, despite all its deception and chicanery like Operation Twist, and without the vast apparatus of interest rate derivatives to maintain the 0% artificial rate, the USTBond structure would collapse. If these words seems absurd, then the reader is probably ignorant, uneducated, or wearing red white & blue jockey shorts.
The law can be stated, as a profound consequence: The combination of ZIRP & QE lead to capital destruction and systemic breakdown. Observe the fast falling Money Velocity while money supply grows at a staggering pace.
The telltale signals are the capital destruction, the retirement of equipment, the shutdown of unprofitable businesses and business segments. The USEconomy is not in recovery, but rather in a grand deterioration process. The evidence is overwhelming, shown on a regular basis within the Hat Trick Letter reports. Whether reduced rail shipments, or fast rising Food Stamp participation, or significant declines in payroll tax withholdings, or still growing state budget deficits, or the stunning fall in Money Velocity, those among the aware crowd can see the pathogenesis. The principal cause is the Zero Percent Interest Rate matched by Quantitative Easing, which kill capital as they lift costs. This is the glaring shocking blind spot among hack US economists, most of whom are compromised by either Wall Street or university grants. Hardly any have my respect, since abject apologists for the failed system with few if any valued lucid perceptions. They are the corrupt harlots of Wall Street. They are the vapid academic talking heads. The path paved by fiat paper currency has led to insolvent systems.
The current monetary policy coordinated by the major central banks of the United States, Europe, United Kingdom, Switzerland, and Japan assure no deviation from the path driven by momentum of the grand sovereign debt defaults and ultimate systemic breakdown. In fact, no solution is even attempted, a consistent Jackass point, since the policies and actions are directed toward preservation of power and away from big bank liquidation. The commitment to the failed system increases every year, assuring the impact of the systemic breakdown to be greater as well.
The law can be stated: The anti-Gold system continues to attempt to reinforce itself until its final implosion. Criminal means and false accounting backed by media propaganda are their tools that reinforce the current power structure. It will yield to foreign designed trade settlement systems, to the forced Gold Standard return, and to vast liquidation.
For the US and UK and Europe and Japan, the 0% official rate will continue until the debt defaults occur, which are in progress. The government deficits will not come down. They will instead escalate, as the economies produce fewer tax receipts and the calls for socialist relief programs expand. The political apparatus is being recognized as broken, a travesty in full view. The economies are experiencing a permanence in the shock from the ZIRP & QE in tandem. Households feel the higher cost of food, energy, utilities, town services, and even property taxes. Businesses feel the higher costs of everything from energy to materials to shipping. Lately they will react to the Obama Care as the health care tax is imposed, against their will. The financial firms have been guilty of doctored gimmicked financial statements ever since April 2009, when the USCongress blessed the decision by the Financial Accounting Standards Board. The FASB decided to permit the financial firms to declare any value they wish for rotten assets, the collection of impaired assets not to face the grim reaper of reality. The parade of Zombie Banks has reeked havoc ever since upon the economies.
Criminal deeds have become the norm. The established norm has been for outsized naked short positions for the Big Four US Banks. They are an everyday fixture. No laws are enforced for selling enormous supply without metal. Why on November 15th, my colleague Turd Ferguson reported the following gold ambush. In the TFMetals Report, he summarized the ambush as he wrote, “Over the course of about 5 minutes, one single order was filled. This massive dump of about 25,000 gold contracts managed to move the price of gold down by nearly $20. To give you an appreciation of the size and scale of this deliberately criminal act, 25,000 contracts is the paper equivalent of 2.5 million ounces of gold, or roughly 77 metric tonnes, the paper equivalent to the alleged physical holdings of Australia or Indonesia.” No end to the naked shorting. The financial press reported not a peep on order by the Syndicate, who act as advertisers on the network channels.
On November 2nd, the Silver Doctor reported a similar silver ambush. NetDania provides a service, to estimate volume from five separate market sources. It is not an exact indicator of volume data, but does shed much accurate light on the deeply corrupted market. According to NetDania, a total volume of 38,400 contracts, equal to 191.99 million ounces of paper silver were dumped on the market in only ten minutes between 8:30am and 8:40am EST. The Boyz chose to execute the raid precisely on the day of the gimmicked Non-Farm Payroll data release. They smelled a potential for a precious metals price uprising, and snuffed it. The volume for those ten minutes corresponds to nearly one quarter of annual global silver production! Not the US output, but global output. No response by market regulators, business as usual.
Criminal deeds have become the norm. Money laundering has kept the entire major US banks afloat, the money laced with narcotics. Overnight satisfaction of loans is sometimes done with heroin paper packets the size of bricks. For the last 20 years, the New York and London bankers have illicitly (nicer word than illegally) leased official gold accounts. Those nations are one by one demanding their gold repatriation. Hot war has been justified in order to win the release of official gold held in accounts. Plenty of Arab despots sit in power, but the Libyan seat was targeted as special for its 144 tons of gold. The London bankers pilfered the Libyan gold account in the Qaddafi name, offering flimsy requirements for its return to their people, demands which will never be met. The stolen private accounts at MFGlobal waiting for silver delivery served as another criminal deed. The crime scene was protected by the US regulators and the courts. Apparently, the wrong interpretation of bankruptcy law matters little. MFGlobal was a brokerage firm, not a financial firm. Therefore, the private accounts should have been held first in line for redemption, not last.
The criminal appellate court upheld the wrong decision. The newest criminal streak involves tungsten lacing in fake gold bars. The story was cited here in early 2010, with Rob Kirby taking the lead. My source informs that two important characteristics are noteworthy. The Hong Kong banks are the biggest among the victims. The distribution routes run through a crucial Central American nation, just like the narcotics. Fort Knox was systematically gutted as its content bars were swapped, whose extent has yet to be determined. Expect some deep consequences for the counterfeit in Tungsten bars. Refer to TRIAD for old fashioned justice, and the Intl Court of the Hague for justice with more procedure involved. Perhaps the unusual story of bankers simply vanishing will be the case.
ALLOCATED GOLD ACCOUNT SCANDAL
The most prominent criminal practice has been challenged, the illicit usage for leasing of official gold accounts in the name of sovereign governments. The challenge will make for the grandest banker scandal in modern history. My source estimates that over 40 thousand metric tons have been vacated from the official accounts over the last two decades. Clearly, the volume indicates a lot of unofficial unaccounted gold, which nonetheless exists. The pressure has finally come to the London bankers largely responsible for the happy fingers. The New York and Swiss banks have been working overtime, often in midnight emergency shipments, to avoid a direct default. That would be both embarrassing and an invitation for prosecution which would be difficult to prevent, given the public outcry. As the London bankers struggle to meet the repatriation demands, the pressure will not relent. They must replace the leased gold or see their crime scene exposed.
Only when the vast Swiss repository is denied to the London banksters, the drain will erupt into a major gold default event with glaring publicity. It is when they are exposed, when the urgent need to replace the improperly leased (stolen) gold is realized, when the public and financial community is made aware of the altered Supply & Demand dynamics, that the Gold Price will shoot upward fast hard and without stopping. Far less gold is held in supply than recognized, while tremendous gold demand occurs. The Allocated Gold Account scandal will force the Gold price to $5000 per ounce, at a minimum. The agreed upon trade settlement gold core will probably permit the gold price to be fixed on a temporary basis. Gold is in increasingly short supply, given the labor problems in both South Africa and South America. Expect important gaping shortages and deficits. So the $5000/oz price is only a target, easily surpassed.
METALS PULLED APART
The law can be stated: Gold Bullion diverges into official voided supply, matched by huge syndicate supply. The visible vault storage with public accounting will eventually show nothing present, while the private syndicate vault storage will be hidden from view.
One private important location is the Carlyle Group, which holds significant counter-party positions to the vast short positions that Wall Street banks are responsible for. The biggest hidden gold hoards, truly magnificent in size, are located in Basel Switzerland, the Roman Catacombs, under the Kremlin, and by the ancient Chinese families, along with Wilbur & Mack who buried a hoard in their Arkansas backyard ready with buddies Smith & Wesson. The divergence will continue until the official gold supply is demonstrated, with shock & awe, to be near zero.
Another important divergence will occur. The official price discovery markets such as the COMEX and LBMA will be exposed as having near zero Gold & Silver in inventory. The prices posted for Gold & Silver will remain artificially low, held down by corrupt methods such as widespread naked shorting (permitted by the US regulators and USDept Justice). The physical price paid for Gold & Silver will continue to rise without bound. Already, no more large gold purchases can be satisfied, since supply is for the most part gone. Premiums for coins are on the fast rise, if coin supply exists at all. The unfortunate aspect of Supply & Demand dynamics is that when price is forced down by intervention and other illegal pressures, the result is vanished supply. That is precisely what is happening. Expect a tremendous divergence to occur, as the COMEX and LBMA tagteam of corruption experience a total depletion, but report some asinine moderate price. Nobody will be able to purchase at their posted price, since they will not have any Gold or Silver metal in inventory. It will be gone. Extraordinary methods are being used right here, right now, to prevent the default. See vast exports of gold from the US to London. See the vast shipments of silver from the US to London. See the rapid decline in the GLD & SLV inventory, which the Wall Street firms have access to. See the MFGlobal and PFG-Best private account thefts.
Coins exhibit the inflation in a highly visible manner. The coins in the Untied States & Canada are going away for 1-cent and 5-cent pieces. A friend in Toronto reports that recent modifications to the looney and tooney (C$1 and C$2 coins) have not only altered their appearance, but have altered their perception. They seem like play money to the public, which has shown derision. The US merchants will soon be permitted to round the transaction costs to the nearest 10 cents. The visible inflation has resulted in the cost of making small denomination coins too expensive, and thus impractical. ZIRP & QE will do that. The cost to make a 1-cent US penny is now 4.8 cents and the cost to make a 5-cent US nickel is now 16.2 cents. How embarrassing, even adding to the USGovt deficit. Due to high zinc and other cheap contents, the 10-cent US dime and 25-cent US quarter are still inexpensive to make. Why not use wooden nickels? Unless subjected to another fabricated hurricane, they will hold a stable appearance, if not value. A quick review of the National Atmospheric Release Advisory Center website will demonstrate easily the evidence of South Atlantic heavy microwave activity during the entire month of September. Angels don’t play this haarp.
The law can be stated: With Gold goes the geopolitical power. As huge amounts of Gold are shipped Eastward, with huge tonnage leaving London for points East like China, so goes the important shift in geopolitical power. A Paradigm Shift is in progress, at work.
Since March 2012, a whopping 6000 metric tons of gold bullion has been shipped from London to the East, primarily China. The circumstances behind the shipments are murky, but they indicate private off-market transactions that are intended to avoid publicity. My suspicion is that old wealthy Chinese families had their Allocated Gold Accounts improperly used in leasing practices by London bankers, associated with posted margin on a gaggle of leveraged contracts spanning from sovereign debt to currencies. The trades went sour. Margin calls were enforced with lost gold in a grand forfeit, the London bankers feet put to the fire reportedly. Publicity was avoided, but in the process a tremendous amount of gold was forfeited. With the gold went a transfer of power, to the East. They will dictate terms of the new trade settlement system. They will become the world’s more prominent lenders. They will control the next geopolitical chapter.
ADVENT OF THE GOLD WARS
Since the Lehman bust in September 2008, the global financial crisis has been a fixture, without solution. My preference is to call it the Global Monetary War, whose unspoken main objective by the powers in control is to maintain power, to preserve the big banks as fortresses of power, and to protect the USTBond & USDollar in their primary perches. Two important events have altered the crisis. The first was the breakdown of the Southern European sovereign debt structure. The Greek Govt Bond went into crisis mode in late 2009, which spread to Ireland, Portugal, and lately to Spain, Italy, and France. It will consume the Euro currency, despite all their best efforts NOT to fix anything, despite their best efforts to alter the bond subordination in new bond issuance. The Europeans are guilty of kicking the debt can down the road, just like the Americans. The victims that topple the system will be the big national banks in the affected nations of Europe, even the German banks. Their flagship Deutsche Bank has been dead for years, full of hollowed corridors.
The second important event was the widening demands for repatriation of official gold accounts. It might have begun with Chavez in Venezuela, but it has continued. The Ghana Govt made their gold account repatriation demand, but a mysterious death of their leader halted the process. The Germans are spearheading this revolt. The Dutch will follow. The Austrians are next. Even little Ecuador wants one third of their gold account returned. Others will join.
An extreme wild card has surfaced. It began to be in play when Saudi Prince Bandar was assassinated a couple months ago, at the hands of HezBollah. Of course, the event was kept secret, but the Saudi Minister of Security was killed as revenge for the Saudi role in the high level Syrian assassinations. Phony photographs and other doctored official accounts have been produced by the Riyadh crowd to conceal the damage. The House of Saud, so the Jackass has claimed for two months, is in danger of falling, along with the Petro-Dollar. Well this week, reports have come out that King Abdullah faces death. He underwent a mid-November back surgery but has not recovered, or even come into consciousness. His entire set of organs has shut down, no longer functioning. The risk to the Petro-Dollar was high with the Bandar killing. The risk just went double acute with a succession to the throne imminent. Domestic challenges by an increasingly aware population, beset by higher cost of living, will come. The great Saudi oil surplus is slowly dwindling, what with higher domestic usage in a higher standard of living. The foreign challenge will remain from HezBollah, with roots from the radical and very powerful Shiite sect. Expect the Petro-Dollar defacto standard to fall in the coming months, as only weak successors remain in the line of surviving brothers. Think bottom of the family barrel (of oil). The teetering USTBond and confronted USDollar make for a poor foundation on which to keep the Petro-Dollar in place. Imagine the impact if the Saudis announce that Euros, Pounds, Swiss Francs, and Yen, even Gold are accepted for crude oil transactions. The Petro-Dollar is walking dead.
GOLD BREAKOUT IN ALL CURRENCIES
The process began with a Gold Price breakout in Euro terms. The continent is the site of the most visible systemic bust that has engulfed the sovereign bonds, the big banks, and the economies, even public trust. Soon to follow suit will be the Gold Price breakout in US$ terms, in British Pound terms, and in Japanese Yen terms, an event to occur simultaneously. The central banks from Europe, the US, the UK, and Japan are coordinated and aligned. They are all putting into practice the monetary lethal policies of unlimited hyper monetary inflation with a 0% rate attached. Witness Weimar gone global in a grand currency debasement. The Gold price will surpass the US$2000 mark easily. When it does, the Gold Price breakout will be recognized in all major currencies.
The central bank franchise system is broken. The global monetary system is broken. The big Western banks are broken. The financial markets are broken. The safe savings vehicles are broken. The all-important confidence factor to support fiat paper currencies is fast vanishing. The arrival of the Gold Standard as the solution is being slowly manifested in the form of a gold-core trade settlement system, which will drive a global Gold Standard. The new system will dictate bank reserves practices, and render the USTBond as a rejected toxic paper relic. It should arrive early in 2013. In the process, the Western nations will become impoverished, as they desperately cling to the failed system. Anger will rise. Disorder will prevail. The USDollars inside the United States will be trapped, then devalued as the public watches in shock. The power will shift East inevitably, with the shipment of Gold. A new era will begin.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
From subscribers and readers
At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.
“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”
(The Voice, a European gold trader source.
“It has been my hope that the financial collapse would occur within a slower time frame, like a year from now. I have followed your articles on various sites for a while, and have to say that you are very perceptive and accurate as well as analytical. You have been more accurate, detailed and thorough than others, and your Big Picture analysis is usually spot on. I have noticed that it often becomes public news 3 to 6 months later. It is not easy connecting all the dots and understanding the implications one event has on everything else, then interweaving all the threads to grasp that big picture. I don’t usually spend the money for a subscription,
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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com
Zero Point: Volume II – The Structure of Infinity
Following on from the information covered in Zero Point: Volume I – Messages from the Past, Volume II – The Structure of Infinity takes a more focused look at the fractal nature of the Universe. Through examination of The Mandlebrot set and Fractal Geometry, Zero Point : Volume II takes us on a journey through the Fractal Universe culminating in a paradigm shifting view on the nature of reality itself. The existence of the Fibonacci Sequence and the Golden Ratio throughout the natural world and in the ancient megaliths featured in Vol I are fundamental clues in uncovering the true nature of reality. Only by re-examining what we think we know can we pave the way for a future of prosperity based on the ideas and scientific discoveries touched upon in this film. Dedicated to the expansion of the perceptions of possibility I give you Zero Point : Volume II – The Structure of Infinity
Gordon Duff weighs in on the possible meaning of the seemingly draconian Presidential Memo: “Insider Threat Policy.”
For another take on the dynamically mutating coup/countercoup memes floating around in the internetosphere, see Project Camelot Kerry Cassidy’s blog:
And for yet another take on a possible “coup,” try reading this fiendishly complex, and to me, utterly confusing, interpretation of the Petraeus/Allen decapitation from Global Research:
Aside from its opaque title, at least the Duff article makes sense. And I appreciate that he tends to be pro-Obama. So am I, in the sense that this man is highly intelligent and increasingly skilled, with his heart is in the right place. And yet for Obama, or any single person, no matter what “office” he holds, to actually shift not only this leaning ship of state, but the entire ocean that holds us all in its watery embrace, requires the massive cooperation of our collective enlightened awareness to actively push in the direction we need to go: towards the common good. And that means not just the common good of humanity, but of the Earth, and her infinite cosmic home.
We are all one, we are all breathing together, and we are all, no matter how cynical or deadened to life, here, now, at this crucial time in our his-story. Why? Why did YOU choose to be born when you did so that you would be a certain age, with a certain set of life experiences and skills, and above all more or less enlightened consciousness, during this shift from one great age to another? Why? What is your role to play? How can your unique expression be best utilized by the whole?
Even without knowing, we can sense the mystery, and the majesty, and feel within our very souls that all, ultimately, will be well.
AIPAC, Decapitators Inside US Government: Intelligence Analyst
“Behind the plotters are drug cartels that have penetrated the US government, former lobbyists who were moved into government during the Bush administration and now are suspected of being involved in a coup attempt.”
Seventy hours ago, at this writing, while on Air Force One, President Barack Obama issued a press release that has been utterly ignored by the Western Press.
The president has openly announced a move against violent plotters inside the US government and espionage agents. He does not use the terms “AIPAC” or “the Israel lobby” but it is highly unlikely he could be referring to anything else.
In fact, we can think of no other group.
I was privately briefed on some of the reasons behind this document. On what is known, not “surmised,” I will explain:
There is, currently, within the US military, the Executive branch of government and among extremist “power brokers” in America an active plot to “alter” America’s form of government through “decapitation.”
Let me be clear. Where the memo, printed in full below, refers to “violent”, it means “assassination” of many top leaders in America including but not limited to the President, Vice President, Secretary of State, Secretary of Defense and others.
The plot makes use of the resources of major private defense contractors and their intelligence and special operations personnel. There has been active recruiting that has been noted and is why the memo was released and why many members of the military have been subjected to investigation.
The Benghazi attack was planned and financed by this group.
Many writers in the alternative media have noted much of what is going on but not all. Some have shown access to very knowledgeable sources.
Behind the plotters are drug cartels that have penetrated the US government, former lobbyists who were moved into government during the Bush (43) administration and now are suspected of being involved in a coup attempt.
There is no direct evidence tying any foreign government to this plot though most are “fanatically” aligned with the militant Likudists in Israel under Netanyahu’s regime.
The President’s text below, unedited:
The White House Office of the Press Secretary For Immediate Release
November 21, 2012
Presidential Memorandum — National Insider Threat Policy and Minimum Standards for Executive Branch Insider Threat Programs
Memorandum for the heads of executive departments and agencies
Subject: National Insider Threat Policy and Minimum Standards for Executive Branch Insider Threat Programs
This Presidential Memorandum transmits the National Insider Threat Policy and Minimum Standards for Executive Branch Insider Threat Programs (Minimum Standards) to provide direction and guidance to promote the development of effective insider threat programs within departments and agencies to deter, detect, and mitigate actions by employees who may represent a threat to national security. These threats encompass potential espionage, violent acts against the Government or the Nation, and unauthorized disclosure of classified information, including the vast amounts of classified data available on interconnected United States Government computer networks and systems.
The Minimum Standards provide departments and agencies with the minimum elements necessary to establish effective insider threat programs. These elements include the capability to gather, integrate, and centrally analyze and respond to key threat-related information; monitor employee use of classified networks; provide the workforce with insider threat awareness training; and protect the civil liberties and privacy of all personnel.
The resulting insider threat capabilities will strengthen the protection of classified information across the executive branch and reinforce our defenses against both adversaries and insiders who misuse their access and endanger our national security.
A very real threat to world stability
To some, at a glance, this might actually sound like a response to leaks within the CIA and White House except for some extraordinary language. Please make very special note of the following:
“…to deter, detect and mitigate actions by employees who may present a threat to national security…These threats include…violent acts against the Government and the Nation…”
Please note that they refer to “violent acts” and speak of both the “government” and “nation.”
By “government,” they are indicting, with no “wiggle room,” assassination plots.
By “nation,” they may well be referring to false flag terrorism that may well include use of weapons of mass destruction. Britain was subject to such a threat during the London Olympics, one that would never have been successfully overcome without the help of journalists who put themselves at great risk.
The US government has had a twelve-year moratorium against arrest and prosecution of spies within our government and military other than those who can be tied to China.
The most famous Chinese “spy” was Wen Lee Ho, a nuclear scientist at Los Alamos Labs. He was arrested in 1999, held in solitary confinement for a year and then released.
In order to get an accurate picture I phoned two friends, one a senior FBI counter-intelligence operative and the other a very senior US Army intelligence officer.
The question I put before them, while eating breakfast, was:
“Please list the nations that represent the greatest threat of espionage against the United States and, which nations, in order, are believed to represent the “penetration threat” that President Obama is referring to.”
From the FBI, their appraisal not intended for the “pop culture” media:
“Our greatest direct threat is Israel and the Israel lobby. They have systematically penetrated every aspect of government and the military and, if they cannot get documents from those branches, friends in congress will give them access to anything that branch has available. After that is India, with every research facility at risk from RAW (Indian Intelligence) penetration and then Cuba, Mexico and Turkey.
The primary end users of this intelligence, the “clients,” are Russia and China.”
From the US Army:
“I agree with Israel and the rest but we have not had Turkey on our radar. The obvious end users are, of course, Russia and China based on capability.
The issue I have is how a presidential press release, an extraordinary and almost “draconian” document has gone without an uproar from congress and wide press coverage. Who has the power to suppress reporting on something like this, though, I know that you will say it is Israel, I would want proof.
Though there has been no official notification of this, I am of the impression that we now consider any mention of Israeli spying to be highly classified. Only Russia and China are officially listed, entirely out of concern not to offend lobbyists whose feelings outweigh real issues of national security.”
Then I turn on my television, hour after hour of TV shows about espionage and terrorism. Both American and British TV are the same.
All spies are from Iran and Pakistan; nations that our actual intelligence agencies indicate represent no espionage threat to speak of.
In fact, in my two Saturday morning phone interviews, which can, of course, be confirmed by Homeland Security who has tapped my phones, I have reflected with great accuracy. Thus, we ask you to read what President Obama really did not say “between the lines,” the message is quite clear.
We do not see a roundup of AIPAC spies, not like in the early days of the Bush administration although Attorney General John Ashcroft quashed that investigation.
What we are seeing is a hunt for traitors within the American government and military, some of which is working its way onto the news.
The question of the moment, however, is this:
How can a President of the United States announce that the government is infiltrated with terrorists and spies and no newspaper, television network or other form of media notices?
Keiser Report: Colossal Collapse Coming!
In this episode, Max Keiser and Stacy Herbert note that the bell has rung for the bond market top as one of the biggest private equity funds in the world is seeking ‘ordinary’ investors to assume their long term interest rate risk. In the second half, Max Keiser talks to Ian Williams of Charteris Treasury Portfolio Managers about his forecast for silver prices to rise five fold in the next 3 three years while US Treasury bonds and UK gilts will face collapse. Ian Williams also suggests that it is commercial banks rather than central banks that will return us to a new style of gold standard.
Abby Martin takes a look at the consumption-driven holiday known as Black Friday and highlights a few of the more memorable Black Friday moments in recent years.
Black Friday an Epic Fail
Gulf of Mexico Update host Michael Edward, with guests Dr. Janet Starr Hull and Christy Whitaker
The Gulf of Mexico is heating up due to a rise in magma flow convecting (running like a conveyor belt) under the Gulf floor. This is the Earth Expansion Theory, where the Earth heats up, filling the salt domes with tar (magma melting oil and creating tar), and pushing the ocean floor up. The tar bubbles as it heats up, and it outgases. This expansion lifts the Gulf floor, which displaces the water and floods the coastal areas, and also causes movement along the bordering plate boundaries and fracture zones. Texas is now having more earthquakes everyday, including the 3.0 west of Waxahachie a few days ago along the Balcones. The Llano Uplift will respond, as well as the New Madrid. This is the Earth Expansion Theory, with a flow of rising magma under the Gulf floor.
According to CNBC, as Super Storm Sandy flooded lower Manhattan, it also flooded the vaults of at least one gold depository listed by the CME as one of the five locations for warehousing of physical gold, alongside Brinks, Inc., HSBC Bank USA, JP Morgan Chase Bank & ScotiaMocatta Depository, a Division of the Bank of Nova Scotia. PAMP’s American arm, Manfra, Tordello & Brookes, depository and gold distributor, declared force majeure after it was forced to [move] inventory after the vaults had flooded,” says MTB CEO Raymond Nessim. The CEO added, “all inventory is intact and in good shape,” despite that a press release on the CME’s website states “MTB depository has operational limitations from the east coast storm and will not be able to load out metals at their facility until operations have been restored.” But, that’s not all. Nessim also noted that the vaults of MTB are located “very close” to the Federal Reserve Bank of New York and its gold vault. As of 2008. the NY Fed claims that its gold – 216 million reported ounces – are “80 feet below street level and 50 feet below sea level,” according to the New York Fed’s website. The Federal Reserve maintains that the building was “secure, dry and operational throughout the storm.”
from Silver Vigilante:
“Surprise” BoE pick Mark Carney attended Bilderberg meeting earlier this year
The “surprise” announcement that Canadian Mark Carney is to be appointed Governor of the Bank of England means that the 2012 Bilderberg attendee completes Goldman Sachs’ virtual domination over all the major economies of Europe.
Carney’s appointment has come as a shock to many who expected current BoE deputy governor Paul Tucker to get the nod, but it’s not a surprise for us given that we forecast back in April Carney would be headhunted for the position.
Carney is a former 13-year veteran of Goldman Sachs and was involved in the 1998 Russian financial crisis which was exacerbated by Goldman advising Russia while simultaneously betting against the country’s ability to pay its debt.
Carney’s appointment arrives just six months after he attended the 2012 Bilderberg conference in Chantilly,Virginia, an annual confab of over a hundred of the most powerful people on the planet who have routinely flexed their kingmaker status.
The Guardian reports that Carney is “largely unknown outside the cloistered circles of central bankers and financial regulators,” why is why his appointment came as a surprise to many, including JP Morgan’s Malcolm Barr who considered Paul Tucker to be a “shoo-in” for the job.
Carney’s status as a foreign national is cited as one of the reasons his selection came as a shock, but being Canadian he is after all a “subject” of the Queen of England, who confirmed his appointment after he was recommended to her by Prime Minister David Cameron.
The presence of Carney at this year’s Bilderberg confab undoubtedly helped him curry favor amongst the global elite and helped him to secure the position as Governor of the BoE, just as it has aided other luminaries in exalting them to higher office, such as Herman Van Rompuy, who was picked as President of the European Union just days after he attended a Bilderberg Group dinner meeting.
Carney’s ascension to BoE head also represents the final piece of the jigsaw puzzle in Goldman Sachs’ quest to control virtually every major economy across the European continent.
Last year, former EU Commissioner Mario Monti was picked to replace Silvio Berlusconi, the democratically elected Prime Minister of Italy. Monti is an international advisor for Goldman Sachs, the European Chairman of David Rockefeller’s Trilateral Commission and also a leading member of the Bilderberg Group.
“This is the band of criminals who brought us this financial disaster. It is like asking arsonists to put out the fire,”commented Alessandro Sallusti, editor of Il Giornale.
Similarly, when Greek Prime Minister George Papandreou dared to suggest the people of Greece be allowed to have their say in a referendum, within days he was dispatched and replaced with Lucas Papademos, former vice-President of the ECB, visiting Harvard Professor and ex-senior economist at the Boston Federal Reserve.
Papademos ran Greece’s central bank while it oversaw derivatives deals with Goldman Sachs that enabled Greece to hide the true size of its massive debt, leading to Europe’s debt crisis.
Papademos and Monti were installed as unelected leaders for the precise reason that they “aren’t directly accountable to the public,” noted Time Magazine’s Stephen Faris, once again illustrating the fundamentally dictatorial and undemocratic foundation of the entire European Union.
Shortly afterwards, Mario Draghi – former Vice Chairman of Goldman Sachs International – was installed as President of the European Central Bank.
The U.S. Treasury Secretary at the beginning of the 2008 financial collapse was Hank Paulson, former CEO of Goldman Sachs. When Paulson was replaced with Tim Geither, Goldman Sachs lobbyist Mark Patterson was hired as his chief advisor. Current Goldman Sachs CEO Lloyd Blankfein has visited the White House 10 times. Goldman Sachs spent the most money helping Barack Obama get elected in 2008.
Zero Hedge, who also predicted that Carney would defy the odds to secure the position at the Bank of England,notes today that, “All one needs to realize and remember how the events in the world play out is to remember one simple thing: GOLDMAN SACHS RUNS IT. Everything else is secondary.”
As the graphic below illustrates, the economies of France, Ireland, Germany and Belgium are also all now controlled by individuals who harbor a direct relationship with Goldman Sachs. The international banking giant, notorious for its corruption and insider trading, now has massive influence over virtually every major western economy on the planet.
Paul Joseph Watson
November 26, 2012
I skate to where the puck is going to be, not where it has been.
Death of an Indicator: Bad indicators, dead indicators. Remembering the yield curve.
Market Forces: Monetary and Fiscal Policy
Charting the Universe: Approaching a Low?
The seasonal setup from Thanksgiving has been “up” for the last nine years. I’m expecting a bounce here.
Simply rebounding to [the highs of this year] would bring a total return of almost 20%. That looks quite appealing on a low risk stock, especially in a ZIRP [zero interest rate policy] world where 10-year treasuries now yield less than 1.6%.
Glimpse into Future: Soaking Up the Gravy
Stocks may not be expensive relative to the economic data, but they’re not cheap either. If they should run to reach the 2007 highs from here, a gain of around 10%, they would be approaching a historical extreme, but if industrial production continues to expand at the current pace or faster as QE3 cash filters through the economy, there would be room for stocks to reach new highs.
There’s no free lunch however. The cost of the money printing will show up in higher commodity prices which squeeze producers, middlemen, and retailers, and ultimately lead to disastrous unintended counter effects. We’re not there yet. The process of bubbleification may just be starting. But with that will come the unintended consequences of monetary expansion that sow the seeds of chaos.
The current yield curve, and the Federal Reserve Bank of Cleveland’s estimated probability of a recession, suggests that the chances for a recession in the near future are low. That is if the yield curve indicator is functioning as it has during the last half a century.
But we don’t know that the yield curve is still functioning in the same manner it has. The Cleveland Fed cautioned:
Using the yield curve to predict whether or not the economy will be in recession in the future, we estimate that the expected chance of the economy being in a recession next October is 8.2 percent. So although our approach is somewhat pessimistic as regards the level of growth over the next year, it is quite optimistic about the recovery continuing…
Of course, it might not be advisable to take these numbers quite so literally, for two reasons. First, this probability is itself subject to error, as is the case with all statistical estimates. Second, other researchers have postulated that the underlying determinants of the yield spread today are materially different from the determinants that generated yield spreads during prior decades. Differences could arise from changes in international capital flows and inflation expectations, for example. The bottom line is that yield curves contain important information for business cycle analysis, but, like other indicators, should be interpreted with caution.”
Mish – who believes we are already in a recession – is completely discounting the continued predictive ability of an inverted yield curve… “Forget about probabilities and statistics and measures of so-called leading indicators (such as the stock market which does not lead), and the yield curve that is useless when zero-bound. Instead, simply focus on data from around the globe, especially new orders.” (Plunging New Orders Suggest Global Recession Has Arrived)
According to Mish: “The yield curve is artificially distorted by Fed policy and cannot invert with the Fed holding short-term rates at zero.”
The economy is not a stock market indicator; the stock market is not an economic indicator
In Leading Economic Indicators, examining five common economic indicators, Mish observed:
Time and time again I hear ‘The stock market acts six months in advance.’ Six months in advance of what? I fail to see how it is acting six months in advance of anything. If one is looking for leading economic indicators, the stock market is surely not one of them.
Also note that if one wants a stock market indicator the economy is surely not it. Look at the plunging GDP in comparison to the stock market for recent proof. Look at the homebuilder chart above for recent proof. Look at the historic S&P 500 chart for proof. Seriously, the S&P is a hopeless leading economic indicator and the economy is an equally hopeless stock market indicator…
Read the full newsletter: Market Shadows Newsletter (Nov. 19, 2012)