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The Impending Receivership of the U.S.A.



-- Posted Thursday, 25 September 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

By: Rob Kirby

 

My, how times have changed?  As Bloomberg News reported Tuesday, September 24, 2008,

Eighteen months ago, U.S. Treasury Secretary Henry Paulson told an audience at the Shanghai Futures Exchange that China risked trillions of dollars in lost economic potential unless it freed up its capital markets.

``An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,'' Paulson said.

Suddenly, it’s now become blindingly evident that “what’s good for the goose isn’t regarded as being so good for the gander”.  It is exactly these types of conflicted pronouncements that hint at the true nature of what really afflicts America – treasonous deceit.

Portrait of a Financial Coup d’Etat

 

There’s been a growing consensus that the financial quagmire the U.S. is currently facing is wholly the result of the sub-prime / credit default swap [derivatives] issues plaguing financial institutions.

 

This view, although widely held, is only partially correct and constitutes a very narrow view; more akin to a discussion of cleaning a train-wreck up rather than why the train left the tracks.  There are much deeper systemic issues affecting what we refer to as Free Market Capitalism.

 

The derailment process began with blatant and egregious economic revisionism at the behest of the Federal Reserve.  In the real world, we know this as officialdom purposely lying about real inflation through falsified CPI and PPI inflation reporting.

 

Falsified inflation reports have served as the backdrop against which the gold price was capped and J.P. Morgan’s interest rate derivatives book – a stealth, black hole for bonds – effectively corralled the now extinct bond vigilantes.

 

This is when the system of usury became fallacious.  Everything ensuing, from asset bubbles to assorted price management schemes, it all hinges from this.  You see folks, interest rates are supposed to be the ultimate arbiter of where and how capital gets efficiently allocated.

 

We can demonstrably see that interest rates no longer perform this function, and indeed, have categorically not been performing this function for at least the past 15 years.

 

From the early 1990’s onward, running concurrently with the economic revisionism and the rise of derivatives warfare – a complicit / harmonizing Wall Street and Treasury executed the familiar “strong dollar policy” skit – even in the face of worsening and unprecedented fiscal and trade imbalances - this ‘theater’ provided masterful cover for the high crimes being committed on the American people.

 

The real enemy of the American people and State is unquestionably CENTRAL BANKING.

 

That’s right folks, the Federal Reserve, the deceitful private bank that was chartered in 1913 under the most dubious and connived circumstances - to protect the integrity of the U.S. Dollar and U.S. financial system has seemingly, finally achieved it’s true but never publicly declared goal of “the complete economic surrender of the Republic.”

 

The American leadership has been co-opted, bribed and bought to the point where a sitting American President, last night went on national television to “bully” the American public into this “surrender of economic sovereignty” – veiled as the further acquiescence to the “twelve-headed hydra” known as the Federal Reserve.

 

The President wants to pass a bill that, asking for what amounts to a blank check and in Section 8 states,

 

"Decisions by the Secretary [Paulson] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

                  

 

Minutes after the President spoke, reports began circulating on the internet [from credible news outlets, I might add] that Chinese regulators have instructed domestic banks to stop lending to American banks in the inter-bank money markets:

 

            China asks local lenders not to lend to U.S. banks:report

 

By V. Phani Kumar

Last update: 10:28 p.m. EDT Sept. 24, 2008

HONG KONG (MarketWatch) -- Chinese regulators have asked domestic banks to stop lending to U.S. financial institutions in the interbank money markets to prevent possible losses during the financial crisis, the South China Morning Post reported Thursday. The China Banking Regulatory Commission's ban on interbank lending of all currencies applied to U.S. banks, but not to lenders from other countries, the report added, citing a source.

 

By morning, Chinese officials began singing a different and much more-dire tune, as reported by Jesse and Bloomberg:

         

Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says
By Kevin Hamlin

Sept. 25 (Bloomberg) -- Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.

``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.''

An agreement is needed so that no nation rushes to sell, ``causing a collapse,'' Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.

China, Japan, South Korea and others should meet soon to seal a deal, said Yu, a former academic member of the central bank's monetary policy committee. The talks should involve finance ministers, central bank governors and even national leaders, he said.

 

``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided...''

China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.

``China is very worried about the safety of its assets,'' he said. ``If you want China to keep calm, you must ensure China that its assets are safe.''

 

In a related note, back on September 9, 2008 I wrote, The Stars Are Aligning - But For What? Where I highlighted the work of Adrian Douglas, GATA consultant and frequent contributor to LeMetropolecafe.com.  Douglas’ work follows the Gold position of Goldman Sachs [a surrogate of the Federal Reserve] on the Tokyo Commodities Exchange [TOCOM]. I stated then:

 

The activities of Goldman Sachs “shorting gold” on TOCOM [Tokyo Commodities Exchange] was first brought to my attention by Adrian Douglas via Bill Murphy’s daily Midas commentary at Lemetropolecafe.com. on Jan. 10, 2006. Douglas has reported on Goldman’s daily TOCOM gold futures position changes for almost 3 years.

With Goldman Sachs representing a defacto surrogate of the Federal Reserve, it is clear that the Fed is moving from being “overextended short” to flat – or possibly going long gold.

I believe this transition is critically important, much like a fuse burning toward explosives.

When this position crosses over from short to long, as I expect it will sometime this month, I expect that some large deafening bells will be ringing – somewhere.

Well, I’d like to report that last night [as of Sept. 24, 2008], Goldman Sachs has further reduced their “short gold position” by over one thousand contracts on TOCOM to “net” 624 contracts short – from a high water mark of more than 50,000 contracts short a couple of years ago.

 

I now surmise that the “lit fuse” referred to above, is actually a count-down to the imminent imposition of “RECEIVERSHIP of the U.S.A” by a multi-national group of creditors.

 

I now expect this RECEIVERSHIP to be fully endorsed by the Federal Reserve and to help implement and enforce the proceedings:

            U.S. Army Unit to Deploy in October for Domestic Operations

Washington, September 23 (RHC)-- The U.S. Army reportedly plans to station an active unit inside the United States beginning in October. The deployment marks the first time that an active military team has been given orders to serve as an on-call response unit in times of emergency.

According to media sources, the Third Infantry Division’s 1st Brigade Combat Team has spent 35 of the last 60 months in Iraq, but now the unit is training for domestic operations. The unit will soon be under the day-to-day control of U.S. Army North, the Army service component of Northern Command…..

Can any of you say Martial Law or hear the sound of jack-boots yet?

Subscribers to Kirbyanalytics.com are profiting from paid in-depth research reports, analysis and commentary on rapidly unfolding economic developments.  Subscribe here.


-- Posted Thursday, 25 September 2008 | Digg This Article | Source: GoldSeek.com




 



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