-- Posted Sunday, 3 January 2010 | | Source: GoldSeek.com
In the vein of looking at what might happen in the year 2010 in the financial markets, and particularly with gold, silver and precious metals, much depends on the work of the Rothschild Cabal and its owned/controlled central banks as found in most of the world. Of all of the Rothschild owned/controlled central banks, perhaps the most important one of all is the US Federal Reserve Bank. As a part of its alleged rescue of the United States and the world’s financial system in 2008, the Fed commenced a vast program of increasing its balance sheet (to over $2 trillion) and reserves to allegedly provide liquidity to the financial markets.
Supposedly, this increase in Fed money (which is correctly US taxpayers’ money made essentially by the Fed out of the thin air) would counteract deflationary pressures and restore the US and world economies. While this supposition sounds good, the truth was that the work of the Fed was not to increase liquidity to the US or the world, but rather to contract credit/money and further the Rothschild plan to intensify the current recession/depression started by the Cabal (this process was reportedly described by Mayer Amschel Rothschild some 250 years ago in his master plan to rule the world—on this, see Understanding Money and War XIV at www.analysis-news.com).
True, the Fed’s Balance Sheet did climb astronomically high--starting in 2008 and thru 2009. But what few people grasped is that the secret work of the Fed was not to provide liquidity to the people of the United States or any other nation, per se. What happened was that the Fed provided financial support and liquidity to the Rothschild Cabal owned and controlled big banks and financial institutions. Here, quite a paradox developed because while the Fed was busy pumping up liquidity to the Rothschild Cabal banks the same banks were simultaneously contracting the credit markets to dry up liquidity by the American people.
As far as the people of the US, and indeed elsewhere, true liquidity has decreased not increased. Yes, the Fed provided billions of dollars primarily to the Rothschild Cabal institutions to bail them out of their bad loan exposures; but gave the American people nothing but the finger (figuratively speaking). Along with bailing out these Cabal connected sources, the Fed has also made huge sums of money available to Rothschild Cabal connected financial market brokers, dealers, etc for them to use to rip off the public and make some big bucks in the process (as discussed in the Goldsmiths 107-109, and 120).
The Need to Prop Up a Falling US Dollar and US Treasuries
While the Fed has used several different tricks and gimmicks to accomplish its task of making the Rothschild Cabal connected banks, institutions, companies and individuals even more prosperous and wealthy, it also acted to prop up the declining US dollar and US Treasures. This motion was necessary--not because the Cabal had any love for the US, but rather a reflection of the real world situation that the US is the primary source of its strength globally to perpetuate and enforce its plans for profits and world rule.
Thus, it has been in the best interests of the Cabal to try to save the US dollar and Treasures for its own selfish reasons. Actually, this scheme of taking care of the Cabal started in earnest with the work of President Franklin Rosenfeldt/Roosevelt in the 1930s and intensified in the post WWII era. Most gold advocates are well aware of the Fed and US Treasury work of suppressing the value of gold and other commodities in the last 66 years—all done to benefit the Cabal directly or indirectly.
For purposes of this article, one of the big issues faced by Rothschild relative and agent Bernanke, in his manipulation of the markets, has been the question of an exit strategy in his work of increasing the Fed Balance Sheet to benefit the Rothschild Cabal connected banks and other businesses. Most observers have believed that the Fed game of creating vast new sums of money out of thin air could not go on forever or hyperinflation would set in. Hence, a Fed exit strategy was called for. Bernanke has gone along with this idea but he never has revealed precisely what he will do about it.
For a backdrop on this issue, it behooves us to look at one of the important gimmicks that Bernanke has used at the Fed to supposedly help the system recover. It was the introduction of Central Bank Liquidity Swaps in late 2007 and 2008 to increase the size of the Fed Balance Sheet and put more profits and gains into the hands of the Rothschild Cabal banks and financial institutions and Rothschild relatives and agents. While some persons thought that these swaps were something new, there is evidence suggesting that they were used twice before in failed motions (as will be covered shortly below).
The explanation of these swaps seems simple enough. The Fed exchanges US money for foreign currencies with various other central banks for a stipulated period of time. At the end of the period, the swaps are reversed on a like exchange basis without the recognition of any gains or losses in the deal. But the thing which almost no one wants to talk about is what happens with these exchanged currencies when the swaps are made. What does the Fed do with the gained foreign currencies and what do the foreign central banks do with their new dollars or dollar credits with the Fed?
As far as the use of the foreign currencies with the Fed, it is obvious that the Fed uses them to manipulate the value of the dollar vis-à-vis the foreign currencies. Thus, when US persons need a particular foreign currency, the Fed supplies it without the US person going into the markets to buy the currency.
While this seems obvious, it is interesting that the Fed apparently tried to paint a different picture as suggested in these remarks on Central Bank Liquidity Swaps from Wikipedia: “The foreign currency that the Federal Reserve acquires is an asset on the Federal Reserve's balance sheet... The dollar funds deposited in the accounts that foreign central banks maintain at the Federal Reserve Bank of New York are a Federal Reserve liability. In principle, draws would initially appear… (as) ‘foreign and official’ deposits. However, the foreign central banks generally lend the dollars shortly after drawing on the swap line. At that point, the funds shift to the line ‘deposits of depository institutions.’
“When a foreign central bank draws on its swap line to fund its dollar tender operations, it pays interest to the Federal Reserve in an amount equal to the interest the foreign central bank earns on its tender operations. The Federal Reserve holds the foreign currency that it acquires in the swap transaction at the foreign central bank (rather than lending it or investing it in private markets) and does not pay interest. The structure of the arrangement serves to avoid domestic currency reserve management difficulties for foreign central banks that could arise if the Federal Reserve actively invested the foreign currency holdings in the marketplace.”
The above explanation suggests that while the foreign banks can use the dollar swaps, the Fed does not use the foreign currency by lending it or investing it in the private markets. Per Wikipedia, the source of this information came from the Fed. Yet, my read of Fed data in the notes to the NY Fed’s financial statements (section 2, operations and services) outlines Fed authority “to execute operations in foreign markets in order to counter disorderly conditions in exchange markets…” and “to invest such foreign currency holdings,…” While the currency swaps are in a slightly different category from the regular foreign currencies held by the Fed, it seems reasonable to believe that the Fed can use the swap currencies to manipulate and juggle the currency markets.
Since the foreign central banks acquiring US dollars in these swaps will seemingly pay interest to the Fed on the swaps (this statement is made in the notes to the financial statements of the NY Fed), they are certainly free to use these dollars however they see fit. But to benefit the dollar and make it go up (as the Cabal did in 2008), it is clearly not logical that the Rothschild controlled foreign central banks would use the US dollars in the swap to provide dollars to private users (as this would drive the value of dollars down). Instead, these Rothschild controlled central banks clearly have been buying dollars to drive the value up.
So, if the foreign banks in the swap are paying interest (even small nominal amounts), what are they doing with the dollars they receive? I want to suggest that the evidence is massive that they are investing those dollars in US Treasuries (either directly by the foreign central bank or by private foreigners/bankers who are loaned the dollars—obviously to receive a higher interest rate on the Treasuries than what they have to pay in the swap agreement to the Fed.
My Take
Thus, my conclusion is that the Fed created these swap agreements to do two things. First of all, they give foreign currencies to the Fed which the Fed can sell on the market to manipulate and drive the value of the foreign currencies down. And two, they provide dollar funding to the foreign central banks apparently to buy US treasuries (obviously at a higher interest rate than what they are having to pay to the Fed for the swap) or to loan dollars to other foreigners to buy US Treasuries.
This gives the Rothschild Cabal controlled central banks the power to raise the value of the dollar and the value of US Treasuries in one motion. In other words, the Fed is providing foreign central banks with dollar funding to buy US Treasuries while giving the Fed a source of foreign currencies which can be used by the Fed to manipulate, juggle and control the currency markets (to include making the US dollar go up or down at will).
The NY Fed’s financial statements for Dec 31, 2008 gave the following on swaps (p. 28 of Notes to the Financial Statements): At Dec 31, 2007—total of $24.353 billion; and at Dec 31, 2008—total of $553.728 billion. The Euro and Japanese yen were the big players although some nine currencies were involved. At the end of FY 2009 (on Oct 1, 2009), the swaps had declined down to $56.756 billion. The decline continued thereafter (although some gold market analysts are incorrectly still attributing market manipulations to the swaps).
As of late Dec 2009, the swaps were at about $14 billion. As market followers have observed, the dollar index started another strong recovery on Dec 4, 2009. Since the swaps didn’t have any big uses on that date or thereafter, it makes me suspicious that the Fed and Treasury used other gimmicks and crooked deals to manipulate the dollar in Dec 2009 (like probably direct central bank purchases and sales by the Fed and other Cabal controlled central banks). Though the swaps were important a year ago, they lost some of their luster by Dec 2009.
Actually, the swaps peaked in late 2008. By spring 2009, their use was on the decline where they went down rapidly thereafter. Although the Rothschild media has lied to us and tried to paint a lot of false pictures about why the dollar and US Treasures have been going down in value in 2009, the reason is manifestly clear when one examines what has happened with these currency swaps this year. The Rothschild Cabal controlled Fed clearly engaged in these swaps, starting in earnest in Sep 2008 (to boost the dollar), and started a rapid decline in the spring of 2009 (to let the dollar fall). The manipulation of the dollar and Treasuries was the obvious purpose of these swaps.
Except for Congressman Ron Paul, most of the Congress is owned and controlled by the Rothschild Cabal. These persons are in no mood to do anything to upset their masters and bosses in London. Yet, another exception did crop up on July 21, 2009 when Fed Chairman Bernanke testified to Congress. Florida Congressman Alan Grayson asked him some pointed questions about the swaps (per You Tube TV). Under pressure, Bernanke stammered and finally somewhat admitted using the swaps to manipulate the financial markets.
While the swaps played a big role in currency manipulations in late 2008 and early 2009, their importance declined since spring 2009. It is not to say that they now have no role to play. But it is to say that their role has declined in importance since last spring. But the point worth remembering is that the Fed and the other Rothschild controlled central banks can reinstitute this practice at will to manipulate and bring up-ticks to the dollar index and the value of US Treasuries.
But Some Dangers
While Bernanke successfully used these swaps extensively in the fall of 2008, there are some dangers in their use. Market Skeptics of April 17, 2009 had an excellent summary of them in an article on Fed Using Currency Swaps to Boost the Dollar by Eric deCarbonnel. DeCarbonnel argued that a central bank using the swaps may find that when the swap unwinds that it does not have the foreign currency to repay the swap. Not only can the domestic country be faced with a fall in value of its currency but it can also be faced with large amounts of foreign debt.
DeCarbonnel noted that the US has a history of misusing these swaps. He wrote as follows: “Through the treasury’s Exchange Stabilization Fund and the Federal Reserve's System Open Market Account, the United States has twice used swap agreements in failed attempts to prop up the dollar. On both those occasions, the treasury was subsequently forced to issue foreign currency-denominated debt (Roosa bonds and Carter bonds) to repay swap drawings. Evidence of this repeated misuse of currency swaps can be seen on The United States Treasury Department’s website.
“‘Intervention Operations
‘Treasury policy during 1961-71 period focused on deterring capital outflows from the United States and giving major foreign central banks an incentive to hold dollar reserves rather than demand gold from the U.S. gold stock. The ESF resumed intervention operations in the foreign exchange market in March of 1961 (for the first time since the mid-1930s), but it soon became apparent that the resources of the ESF alone were too small to sustain transactions of the magnitude necessary. At the invitation of the Treasury, the Federal Reserve joined in foreign exchange operations in February 1962. The Federal Reserve entered into a network of swap agreements with other central banks in order to obtain foreign currencies for short-term periods for use in absorbing forward sales of dollars by foreign central banks hedging exchange risk on their dollar holdings. To provide foreign currency to repay the Fed's swap drawings, the Treasury during the 1960s issued non-marketable foreign currency-denominated medium-term securities (Roosa bonds) and sold the proceeds to the Fed.
‘Later in the 1970s, the US monetary authorities built up foreign currency reserves substantially. For this purpose, the ESF entered in a $1 billion swap agreement with the Bundesbank in January 1978 (which has since been allowed to expire). In connection with the dollar support program announced in November 1978, the Treasury issued foreign currency-denominated securities (Carter bonds) in the Swiss and German capital markets to acquire additional foreign currencies needed for sale in the market through the ESF. The United States also drew its reserve position in the IMF.’”
Bottom Line
There are some obvious benefits to the Rothschild Cabal controlled central banks to use these currency swaps to provide some immediate benefit to the Cabal’s fiat money system. In the case of the $554 billion in use in the fall of 2008, the Fed and the other central banks involved all benefited. The Fed received foreign currencies to sell/hedge on the market to boost the dollar and decrease the value of the foreign currencies. The foreign countries involved received huge infusions of dollars which they could use to invest in US Treasuries short term (to receive more in interest income on the Treasuries than what they had to pay to the Fed for the swap).
In a nutshell, these billions of dollars in currency swaps gave the Rothschild Cabal central banks huge infusions of cash which they could use to manipulate the currency and Treasury markets at will. In a word, the use of these currency swaps allowed the Rothschild Cabal central banks involved to do the one thing which completely characterizes the work of the Cabal—that is deception (as is described in the Rothschild plan for profits and world rule at Understanding Money and War XIV at www.analysis-news.com).
For 250 years, the clever Rothschild game plan has been advanced continuously thru the use of deception to the gullible populations involved. Absolute public ignorance has been maintained about what all is going on in secret by the Cabal. The need for secrecy in the real Rothschild Cabal operations is the backbone of the work of the Federal Reserve Bank and the other Rothschild controlled central banks as well. Since secrecy is the name of the game, the Cabal is constantly looking for ways it can accomplish its objectives without letting the dumb public in on what it is doing. Thus, the Rothschild game plan revolves around deception.
Since there is a positive correlation between the value of the dollar index and gold, it seems prudent for gold advocates to periodically watch the outstanding balances of these currency swaps by the Fed. Weekly, the Fed publishes its Factors Affecting Reserve Balances which gives Central Bank Liquidity Swaps.
If there is a big increase in them, it could be a clue that the Fed and the other Rothschild Cabal controlled central banks are about to boost US paper. This could mean some trouble for gold owners/buyers.
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Back issues of the Goldsmiths, by the editor of the Analysis of News, can be accessed from a Google or Yahoo search engine by typing in “R. D. Bradshaw” Goldsmiths. Several hundred web sites can be found with the back issues and with translations to Spanish, Italian, German, Dutch, Polish, Chinese and other foreign languages. Finally, the “Archives-Goldsmiths” of this website (www.analysis-news.com ) has all of the Goldsmith articles issued to date.
-- Posted Sunday, 3 January 2010 | Digg This Article
| Source: GoldSeek.com
