-- Posted Friday, 21 August 2009 | | Source: GoldSeek.com
By R. D. Bradshaw
If you were in a position of power and wanted to increase the value of the US dollar and decrease the price/value of gold, silver and other commodities, what would you do? Well, for most of us, the issue would be totally out of the question simply because we lack the means and power to even begin such an undertaking. But for the Rothschild Cabal, centered in the City, in London, this course of action is indeed very plausible. Thus, for the Cabal, it was no trick or miracle that it could take the US dollar at 71 on the index, in the spring of 2008, and run it up to 89 in late 2008 while crashing gold, silver and other commodities.
In previous Goldsmiths, and in the analysis of news at www.analysis-news.com, I have discussed at some length how the Cabal successfully pulled this scam off. While many of us knew the Cabal and its controlled puppets at the US Fed and other central banks were practicing this skullduggery, we didn’t have the details. Perhaps one of the better revelations of how some of this scam was accomplished came out in some detail with the Fed’s financial statements for CY 2007 and 2008 in April 2009.
This release prompted the Goldsmiths 84 which discussed the revelations of how extensive the Fed was busy pumping up the dollar with currency swaps with various nations (actually with the central banks of the nations involved). These swaps were evidently started in late 2007 with swaps with the ECB and Swiss National Bank. The total at the end of 2007 was $5,570 million and $138,622 million on Dec 31, 2008. These swaps were conducted in addition to the normal practices of the various central banks to buy and sell foreign currencies.
But the problem most of us would face, even if we could envision this type of skullduggery, would be that we simply don’t have the power over the various central banks to make them do anything one way or the other. But for the Rothschild Cabal of super rich bankers in London, this was a non-issue because these plutocrats not only control many of the nations of the world but they own/control many of the central banks in the world.
If you own or control a central bank, it is manifestly clear that you can simply order that bank to buy, sell or swap a particular currency. And that’s what happened with the ECB and other central banks in Britain, Asia and other parts of the world. They were ordered to support and make the US dollar valuable when in fact the people in those nations knew that its value was sharply falling day by day. In many nations, the man on the street would often refuse to take dollars in trade.
Well, given that the Cabal had engineered and set this motion in place, clearly in 2008, it was not hard for some of us to perceive that the effort would eventually fail and the real world of real people would take over to reverse the trend. For my part, I always believed that the spike up in the dollar in Jul-Aug 2008 and thereafter was a very artificial move which would not last. My position has been that it would start to fall in 2009 and accelerate in 2010. That is still my position.
LEAP
But others also began putting two and two together and concluded about the same thing. While some of the so-called investment advisory services exist by plagiarizing and stealing ideas from others, there are some few out there who do some original, independent thought and analysis. Here I will mention the work of a team of analysts in France who report their views at LEAP2020.eu. In the Goldsmiths and news at www.analysis-news.com, I have quoted them a couple of times.
A visitor to their website at this time (as I did on August 14th) will find the following statement: “When China prepares its « Great Escape » from the dollar-trap for the end of summer 2009 - Excerpt GEAB N°34 (April 16, 2009) - LEAP/E2020 believes that the next stage of the crisis will result from a Chinese dream. Indeed, what on earth can China be dreaming of, caught – if we listen to Washington – in the ‘dollar trap’ of its USD 1,400-billion worth of USD-denominated assets?”
This backdrop on April 16, 2009 prompted LEAP to follow up in June with its report No 36 which restated its position as follows: “As anticipated by LEAP/E2020 as early as October 2008, on the eve of summer 2009, the question of the US and UK capacity to finance their unbridled public deficits has become the central question of international debates, thus paving the way for these two countries to default on their debt by the end of this summer.
“At this stage of the global systemic crisis’ process of development, contrary to the dominant political and media stance today, the LEAP/E2020 team does not foresee any economic upsurge after summer 2009 (nor in the following 12 months). On the contrary, because the origins of the crisis remain unaddressed, we estimate that the summer 2009 will be marked by the converging of three very destructive « rogue waves », illustrating the aggravation of the crisis and entailing major upheaval by September/October 2009. As always since this crisis started, each region of the world will be affected neither at the same moment, nor in the same way. However, according to our researchers, all of them will be concerned by a significant deterioration in their situation by the end of summer 2009.”
LEAP then goes on to define the three waves by the summer of 2009 as being:
1. Wave of massive unemployment: Three different dates of impact according to the countries in America, Europe, Asia, the Middle East and Africa.
2. Wave of serial corporate bankruptcies: companies, banks, housing, states, counties, towns. 3. Wave of terminal crisis for the US Dollar, US T-Bond and GBP, and the return of inflation.
Thus, the position of LEAP seems to be sayonara for the US dollar by the end of the summer of 2009. Since summer doesn’t end till around Sep 21, that forecast can easily come true. Frankly, I too expect the dollar to become history in the coming days, but I doubt that it will happen by Sep 21st. Again my position is that starting this fall the dollar will start an appreciable decline which will follow through in the coming months and culminating in 2010.
But the mention of LEAP and its forecast is not so much on the dating although accurate dating is the crux of the problem. Dating is no easy proposition. I am amazed at the number of so-called analysts who brag and boast about their forecasts. But in checking them out, it is usual that they come along after an event takes place and claim that they knew all about it and predicted it in advance. Anyone curious enough to go back and look at their exact words will usually find nothing in the vein of any definite positions on anything. LEAP has done this. LEAP has come out with definite predictions—right or wrong.
In any case, depending on the accuracy of LEAP, it has had the guts to take a stand and offer its best predication on an event which is manifestly coming down the pike. I applaud LEAP for that measure of courage and forthrightness. So, could the dollar collapse (and the explosion up in gold, silver and commodities) occur by Sep 21st? Well, I doubt it; but it must be on the table of possibilities. But I would allow that this coming change could be very close after Sep 21st.
The Bank of Israel
Yet, there is another source out in the world which also gave us a clue a few days ago that the day of reckoning is very close for the US dollar. Here, I refer to the Bank of Israel and its head, Stanley Fischer. Like the other nations and central banks owned/controlled by the Rothschild Cabal of fat cat bankers, Israel and the Bank of Israel get its marching orders from London (the same as Europe, Britain, Canada, Australia, New Zealand and the US).
And while we may wonder to what extent the Cabal tips off and keeps its colleagues and cousins informed in the US and Europe, there is no doubt about it whatsoever. Stanley Fischer and his bank have a hot line to the Cabal in London. I am absolutely assured that when the Cabal decides on a move, Fischer is one of the first persons tipped off and informed.
While there may be some debate as to whomever else the Bank of Israel tips off (I personally believe that it does share intelligence with key brokers in Tel Aviv and elsewhere as desired), Fischer knows what’s coming down the pike. He may or may not make any public statements or allow the Rothschild Cabal media to report on what the Bank of Israel is doing. But HE KNOWS!
Anyway, the Jerusalem Post had stories on developments at the Bank of Israel on August 3-6 this year. The important one, on Aug 3d, was by Sharon Wrobel on “Bank of Israel Halts Dollar Purchase Program.” It said: “The Bank of Israel on Tuesday will stop its program of buying $100 million on a daily basis but reserve the right to intervene in the foreign-currency market, the bank announced Monday.
“ ‘As already announced [last Monday], the Bank of Israel will act in the foreign-exchange market in the event of unusual movements in the exchange rate that are inconsistent with underlying economic conditions, or when conditions in the foreign-exchange market are disorderly,’ the central bank said in a statement. ‘The new operating policy of the Bank of Israel in the foreign-exchange market will provide a better response to the economy's needs.’
“The central bank said it would discontinue its program of daily purchases, which began in July 2008, because the targeted level of foreign-currency reserves had been achieved. Foreign-currency reserves stood at $52 billion at the end of July; the target set by the central bank in November was between $40b to $44b. Following the announcement, the dollar dropped 1 percent to NIS 3.87. The Bank of Israel said it could now buy or sell foreign currency in response to exchange-rate movements.”
The story added a quote from Tal Avda, deputy head of investments at Clal Forex: “The governor of the Bank of Israel's announcement is maybe the most expected surprise seen in the capital market in a long time.” Last week, Fischer said the central bank could not beat the market in the long term and would not continue to buy foreign currency indefinitely. In determining its new intervention policy in the foreign-exchange markets, the bank said it would consider a number of factors, including: the level of economic activity, in general, and the export situation, in particular; the level of inflation; financial stability; and the functioning of foreign-exchange markets.
The story also quoted Israel Export Institute director David Artzi who said the new policy was the right way to cope with the amount of speculators active outside the country making big gains in a short period of time, while helping to strengthen the shekel, which is causing great losses for exporters, since intervention will now be more uncertain.
The JP report on the 6th added “Dollar purchase program won’t last forever, exporters beware – Fischer.” Wrobel quoted statements made by Fischer to the Israeli Knesset Finance Committee in which he said “During the recession we had an impact on the exchange rate, and as result our recession was shorter than the global one.” Here, please note Fischer’s admission that his bank had an impact on the exchange rate of the dollar (yes, it helped move it from 71 to 89).
In Wrobel’s story on Aug 5th, she noted that the Bank had bought several hundred millions in dollars on Aug 3d and 4th. Wrobel’s Aug 6th story added that since the bank of Israel started to buy foreign currency in March 2008, to help stem the dollar slide, foreign-currency reserves have been pumped up to $52 billion at the end of July, up from $32 billion in July last year (yes, the bank had the job of helping to stem the dollar’s decline).
This Aug 6th report went on quote Daniel Tenengauzer, an analyst at Bank of America-Merrill Lynch, which noted the Israel dollar purchase program and said that instead of weakening the shekel, the central bank's dollar-purchase program has supported the shekel. He noted that "Ironically, the dollar-purchasing program initiated by the central bank has contributed to strengthening the country's macro fundamentals, through an improvement of the foreign-currency reserves position.” He added "We are now bullish on the shekel, as we think that Israel is well-positioned to exit the crisis on a strong footing."
The story also added that the Bank of Israel recently announced that it would stop buying government bonds. It was not clear in the story which bonds were being addressed but it appears that the Bank had been buying US bonds and would now stop.
The essence of these Wrobel stories is that in March 2008, the Bank of Israel began supporting the US dollar in the currency markets by buying dollars. These purchases accelerated to $100 million daily in July 2008 (and on some days, the purchases were even larger than $100 million). The original target level of dollar accumulations was $40-44 billion. Yet, by July 31, 2009, the total had reached $52 billion. This prompted the bank to say that it would now discontinue its daily purchase program (although it may still buy US dollars periodically). Since the big boost in the dollar came in Sep 2008, is it not now clear that the Bank of Israel had previous information on what to do in the currency markets?
Since the US dollar was at a low of 71 in the spring of 2008, the dollar purchases starting then were a bonanza to the Bank of Israel because the dollar started up (from the purchases and swaps in Europe, Asia, Israel, etc) and reached almost 90 by the winter of 2008-2009. In other words, persons or banks buying dollars at its low made a barrel of money from mid 2008 to mid 2009. Conversely, people buying gold, silver and other commodities lost their pants.
The Bottom Line
While LEAP may or may not be right on the dollar by the end of summer, it has to be significant that some of the most informed players in the world on the work of the Rothschild Cabal has stopped its daily purchases of dollars and possibly US bonds as well. This is a clue that the Bank of Israel may be getting some Rothschild insight on which way to move. Right now, the future doesn’t look good for the US dollar and bonds. This will translate to better days for gold, silver and commodities in general.
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-- Posted Friday, 21 August 2009 | Digg This Article
| Source: GoldSeek.com
