-- Posted Sunday, 6 December 2009 | | Source: GoldSeek.com
By R. D. Bradshaw
One of the real enigmas in trying to follow the manipulating work of the Rothschild Cabal and its controlled Fed is their obsession with secrecy and deception. Some persons in Congress (like Congressman Ron Paul) are trying to at least change this Fed approach in doing business. But the opposition is so strong that reform seems out of the question. Congress may pass a bill for a Fed audit by the GAO. But we can bank on it that it will be a very watered down effort which does not tackle the questions of Fed secrecy and real operations. Thus, the status quo will almost certainly continue.
In the meantime, serious allegations continue to arise that the Fed is monetizing more of the US public debt than the American taxpayers are being told. A year ago, Rothschild Cabal agent and relative Ben Bernanke announced that the Fed would buy some $300 billion of US Treasuries. The latest Fed Factors Affecting Reserve Balances (as of Nov 19, 2009) shows that the Fed has increased its holdings actually by $300.093 billion during the last year. But if the Fed is secretly buying more US Treasuries than we are told, how is she doing it?
One of the things which a number of analysts are following is the periodic auctions of Federal securities and who is buying them--besides the Fed. Too, there is much hype about Treasury sales to foreigners, like the Chinese. But the problem is far bigger than the Chinese because the weekly auction sales are large and growing with each passing day.
The US just finished fiscal year 2009 with a debt increase of $1,743.170 billion. FY 2010 is expected to be even larger. When you add in the roll overs for maturities needing replacement, the figure could be close to $6.7 trillion in 260 auctions in CY 2009 (according to a note in US Treasury Direct Securities & Programs, Auctions).
Market Skeptics of Jul 6, 2009 had an article by Eric deCarbonnel on Understanding the US Treasury Market which allowed Treasury sales of over $1.1 trillion more this calendar year; plus roll overs of some $2.2 trillion. This means that some 2/3 of each weekly auction goes to just replace old debt that is expiring. Regarding debt totals, this source gives US notes at 50%; US bills at 32%; US bonds at 10%; and TIPS (Treasury inflation protected securities) at 8%.
In terms of what happened in FY 2009, the question has to be who bought the new $1,743 billion in debt. Since foreigners bought $697.8 billion, and the Fed bought $292.539 billion (which the Fed admits for FY 2009), that leaves about $753 billion to address. Who bought this $753 billion? Was it the Fed or someone else? This is the primary issue being addressed here in this Goldsmiths.
What we Know
The most verifiable data that I can find on this theme is the matter of foreign holders of the US debt, as just noted. Using data from the Treasury’s Major Foreign Holders of Treasury Securities, we can conclude that foreign purchases of US debt reached the above cited $697.8 billion in FY 2009. This means that some $1,045.4 billion of Treasuries had to have been sold in the US. Per the Fed, she acknowledged buying $292.6 billion as noted above. That still leaves the above stated $753 billion to account for.
I tried to find some Treasury data on who bought this debt in FY 2009. But the Treasury figures are not presented or just badly outdated. The latest Treasury figures are for March 31, 2009, in its Estimated Ownership of US Treasury Securities (in billions of dollars). This March 2009 report gives these increases for the year then ending, as follows:
Depository Institutions $.1 billion
Private Pension Funds 31.9 billion
Government Pension Funds 7.9 billion
Insurance Companies 20.9 billion
Mutual Funds 232.7 billion
State and Local Governments 2.7 billion
All Other—individuals, businesses, brokers, etc 544.3 billion
While the above data is for the year ending March 31, 2009, it appears that rather than purchasing more Treasuries, many of the above buyers slowed down and decreased their holdings from March to Sep 2009 (the above figures total to $840.5 billion and the amount to be accounted for, after foreign and Fed buying in FY 2009, is only around $753 billion).
Since the government has been trying to pump up the markets to bring the suckers back on board to be hit again, somebody has slowed down or decreased purchases of Treasuries. Possibly Mutual Fund purchases were sharply down from Mar to Sep because of the alleged recovery. Actually, for the year ending Sep 30, 2009, commercial banks were up by $229.2 billion for Treasuries and Mortgage Based Securities (per FRB Assets and Liabilities of Commercial Banks in US). So some of the other depository institutions may have had some declines by September.
Thus, except for the all others, there is no mad rush going on to buy US Treasury securities. And while the all others did increase their holdings of US Treasures, one must pause and wonder if indeed that much of it was from individual persons (other than the fat cats and those receiving huge bonuses from the Cabal financial institutions). With the success of the Cabal initiated deflation/depression (starting in mid 2008), with unemployment hitting 20%, and with a big crash in real estate, one must logically pause and wonder if indeed individual Americans did buy much of the $544.3 billion in new Treasury debt.
Well, without more information on the makeup of the buying by the all others of such large amounts of US debt, one must wonder if there is something which we are not being told and which can someway involve secret operations of the Fed.
Well, I don’t know for sure. But my analysis and belief in the dishonesty, lies and deception coming from Washington and New York are such to make me want to search for a better answer than just Treasury sales to private individual people in America. And I think I may have the answer; assuming that the Fed has indeed only increased her holdings by some $300 billion in US Treasuries during the past year, as she alleges (but the Fed is such a liar, this may not be true at all).
In the Goldsmiths 115, I wrote about the financial wheeling and dealings of Rothschild agent and relative Robert Rubin who personally made off with over $100 million dollars during the past few years while at Citigroup. But Rubin was not alone because numerous other Rothschild agents and relatives have also been cleaning up, so to speak.
Almost weekly, we hear stories about Rothschild agents and relatives receiving huge bonuses at the big Rothschild Cabal linked banks and businesses. Many of the individual annual bonuses at Rothschild Cabal connected companies like Goldman Sachs, JP Morgan Chase and AIG have reached millions of dollars. So now, what have these Rothschild cousins and colleagues done with this huge inflow of personal funds?
Well, since many of these people are involved in the financial markets and/or with ties to big brokerage firms so involved, it is not hard to see that they have been investing their money which will really allow them to rip off the gullible taxpayers in America since the large Rothschild connected brokerage firms are in on the know from Cabal headquarters in London. And to accommodate them, Rothschild agent and relative Bernanke has made it very easy.
Most of us know about the work of the Plunge Protection Team since 1987 to manipulate the financial markets. We don’t have all of the details, but some (like Deepcaster and others) have suggested that the Team gets its money from the Fed’s repurchase agreements. Thus, large brokerage firms can deposit Treasury securities and other alleged good paper (but in fact, the Fed takes almost any kind of paper, good or bad) with the Fed and receive dollar advances to work the financial markets in a conspiratorial fashion with other Rothschild Cabal linked entities.
And one of the latest Fed windows to help its colleagues and cousins in the financial business was the introduction on Mar 7, 2008 of the Single-Tranche Open Market Operations program to allow primary dealers to participate in a repurchase program which was to reach $100 billion in total. These repurchase agreements for 28 days each become part of the System Open Market Account activities on the Fed’s balance sheet.
Another new innovation of Bernanke to take care of his Rothschild colleagues and relatives was the Term Securities Lending Facility (TSLF) announced on Mar 11, 2008 whereby the Fed lends up to $200 billion of US Treasury securities to primary dealers for a term of 28 days. Loaned Treasury securities are collateralized to be bought with a pledge of other securities (good or bad, it doesn’t seem to matter). Once these Treasury securities pass to a dealer, he can then use them to get more money from the Fed under other programs. Thus, the Fed buys Treasuries and sells/loans them to dealers in exchange for almost any kind of other paper collateral—good or bad.
A third new Bernanke scheme to benefit his friends and relatives was the Primary Dealer Credit Facility (PDCF) of Mar 16, 2008 which allowed dealers to get overnight funds for the securitization markets in the form of repurchase agreements. While these are only overnight loans, they can be rolled over daily for a period of 45 business days.
Next, Bernanke, ever conscious of his needs to take care of his Rothschild Cabal colleagues and cousins, started the Term Securities Lending Facility Options Program (TOP) on Jul 30, 2008 which allows dealers to draw upon short term, fixed rate TSLF loans in exchange for collateral.
Moreover, Bernanke came through by announcing another program called Asset Backed Commercial Paper Money Market Mutual Fund Lending Facility (AMLF) on Sep 19, 2008. Sep 21, 2008 saw Bernanke organize the Transitional Credit Extension program to provide liquidity support to brokers-dealers in process of transitioning to the bank holding company structure. On Oct 7, 2008, Bernanke came through once more with the Commercial Paper Funding Facility (CCFF) to also put money into the pockets of the Rothschild Cabal players.
Finally, the Term Asset Securities Loan Facility (TALF) was created by Bernanke on Nov 25, 2008. This one allows outright loans to be made for up to five years to eligible borrowers to finance the purchase of securities which, when purchased, become the collateral for the loans just advanced to the eligible borrowers. The loans are non-recourse, meaning that if the collateral goes sour, the fund eats the losses. The TALF seems to be a LLC run by the FRBNY with $20 billion financing from the US Treasury’s TARP program. It is not clear what types of securities are being purchased. The balance on Nov 18, 2009 was $231 million per the Nov 19, 2009 Factors Affecting Reserve Balances.
All of the above Bernanke schemes, to take care of his Rothschild Cabal friends and relatives, are detailed in the Federal Reserve Bank’s financial statements for the years ending on Dec 31, 2007 and Dec 31, 2008. The only loser with these various schemes and practices is, of course, the US taxpayers; since we, the suckers are paying for all of them to benefit and enrich a select, elect group of people who are in with the Rothschild Cabal plutocrats running the show. While these grants and loans can help various parties, most are designed to go to financial investment brokers and dealers.
Now back to the $544 billion in the All Other Purchases of US Treasuries to March 2009.
My take is that the Rothschild Fed either bought Treasuries and transferred them to allies or furnished much of the $544 billion to insider friends and relatives associated with the various brokers and dealers in order for them to buy US Treasures and to use these Treasuries as collateral to get further loans from the Fed in the various programs and under the various repurchase agreements.
While brokers and dealers have big funds to play with, in their own right, I am certain that the billions being paid out as bonuses to individuals also end up in the hands of brokers and dealers for them to invest and buy securities to place with the Fed to generate new loans.
With ownership of these US Treasuries, the players have a certain sense of security which will allow them to use the securities as collateral to get more money from the Fed. It allows them to coordinate their conspiratorial efforts to really rip off and steal from investors worldwide.
In the Goldsmiths 113, I discussed at some length the dollar carry trade where persons borrow money at a very low interest rate in the US and invest it overseas to earn a higher return. Is it not clear that much of this dollar carry trade is promoted thru the above Fed programs of putting money into privileged hands so that they can borrow from the Fed at zero to two percent and invest the money overseas to earn a far greater yield? The Fed is financing this whole thing.
Addenda
Before leaving this subject, let me mention a curious little fact which I read about in my research for the above comments. The 300 largest US pension funds carry some six trillion dollars in assets; though not much of it is in Treasuries. Pension funds have had a larger interest in stocks and real estate.
Presently, pension funds may be focusing some attention on another asset offering far more security than Treasuries, real estate or stocks. Here, I refer to gold. Bloomberg of Oct 23, 2009 had an article by Kim Kyoungwha on Pension Funds to Buy Gold as Insurance. With six trillion dollars to invest, it is very logical that smart pension funds will start buying some gold.
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-- Posted Sunday, 6 December 2009 | Digg This Article
| Source: GoldSeek.com
