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The Goldsmiths—Part CXXV



-- Posted Friday, 22 January 2010 | | Source: GoldSeek.com

By R. D. Bradshaw

 

The Goldsmiths 122 and 124 broached a trick now being used by the Federal Reserve Bank to manipulate and control the markets.  Bloomberg had a story by Craig Torres on or about Dec 31st on Federal Reserve officials are considering a proposal to schedule limited sales of bonds from the central bank’s $2.2 trillion balance sheet as part of a range of tools for withdrawing record monetary stimulus.  Torres’ story touched upon this trick as being contemplated by the Fed to juggle the markets still further in coming days. 

 

But actually, this trick seems to have been originally invented or conceived by Rothschild relative and agent Alan Greenspan some years ago.  But Fed watchers took note of its appearance in Oct 2009 when the Fed’s Factors Affecting Reserve Balances had a new focus on it.  The item is called “Reverse Repurchase Agreements.”  By Dec 31, 2009, it was at some $70 billion. 

 

As discussed in the Goldsmiths 122 and 124, this Fed trick seems to involve a situation where the Fed sells US Treasuries (and reportedly Federal Agency Debt) to “selected” buyers (evidently brokers, dealers and banks on the Rothschild Cabal’s inner circle of players) with an agreement that the Fed will buy back the securities at a later time at the same or higher price—apparently at the option of the purchaser.  Thus, the Fed has named them Reverse Repurchase Agreements.  This Goldsmiths will discuss this innovation and explain why it came about and what the Fed expects to accomplish with these new sales of securities. 

 

One of the things which popped up in the US Treasury report of Foreign Major Holders of US Treasuries in Oct 2009 was the fact that the report was almost flat (though Nov was better).  This meant that the Treasury could not find foreign suckers to buy US debt.  Obviously, this result has caused some concern among the ruling plutocrats.  If foreigners will not buy US debts, who will? 

 

Recent news reports have been ablaze with stories from Greece, Spain and Southern Europe that those states could be near default on their debts (the EU has made it plain that while it has bailed out the big Rothschild Cabal banks these EU states facing bankruptcy will not be rescued but will be allowed to go down the drain).  Even some reports raised the specter of a similar situation with US debt.  For example, Money Morning had a story on Dec 2, 2009 by Jon Markman asking if US Government Debt will be the next Crisis? 

 

Then, on or about Dec 17, 2009, a news article appeared at ShanghaiDaily.com which explained what was happening in the foreign markets.  This one by Zhou Xin and Jason Subler was on “Harder to Buy US Treasuries” based on comments from Zhu Min, deputy governor of the People’s Bank of China.  The story said: “It is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas…

 

“Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.  China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments. 

 

“In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.  He then addressed where demand for that debt would come from.  ‘The United States cannot force foreign governments to increase their holdings of Treasuries,’ Zhu said, according to an audio recording of his remarks. ‘Double the holdings? It is definitely impossible.’

 

“‘The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world,’ he added.  ‘The world does not have so much money to buy more US Treasuries.  China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September.’”

 

The short of this is that the US purchases of foreign goods is falling dramatically because of the Rothschild imposed depression which continues and intensifies.  Simply stated, Americans don’t have the dollars needed to buy much in foreign goods any longer.  So there is little or no flow of US dollars into foreign countries.  In the past, the foreigners have used these incoming dollars to buy US debt (thus, foreigners were financing the US wars, welfare and give away programs).  Now, this is ending; and foreigners no longer can be expected to buy US Treasuries.

 

As a minimum, the ruling Rothschild Cabal has a problem on its hands since the Cabal uses the US dollar, military and government to fulfill its push for profits and world government.  A hard fall of the US dollar and Treasuries may place some restrictions on the Cabal in its worldwide quest for profits and world rule.  To meet the crisis, there are two approaches now being addressed by the Rothschild Cabal masters- one, raise interest rates; and/or two, give some incentives to buyers of US debt with Reverse Repurchase Agreements. 

 

Raise Interest Rates

 

Although the Fed held interest flat or low at its December FOMC meeting, the various agents of the Rothschild Cabal have been hinting at a soon coming need for US interest rates to go up.  Some of these agents have even suggested that when that day arrives, interest rates will literally explode up in a quick, rapid motion. 

 

Actually, news analysis at www.analysis-news.com has had a series of articles on the coming of huge interest rate increases.  On or about Mar 23, 2009, this analysis noted some comments from a trader on the Internet that higher interest rates are coming.  He cited a clue on when by saying:  “When The Dollar turns and starts declining strongly, the US government will start raising interest rates to prevent strong ‘inflation.’”  Since March, the dollar has indeed been falling; though it stabilized in Dec 2009 and showed some upticks.  But the down fall will soon resume, which suggests that interest rates will go up in 2010.

 

On or about May 17, 2009, Bloomberg had a story by Roger Runningen and Hans Nichols on Obama Says US Long Term Debt Load Unsustainable.  It said:  “President Barack Obama, calling current deficit spending ‘unsustainable,’ warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries… Holders of U.S. debt will eventually ‘get tired’ of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. ‘It will have a dampening effect on our economy.’”

 

On or near July 8, 2009, the London Telegraph had this report by Philip Aldrick on US lurching towards “debt explosion” with long-term interest rates on course to double:  “In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt.  Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interest rates will double from their current 3.5pc…

 

“The impact would be devastating by making it punitively expensive to finance national borrowings and leading to what Tim Congdon, founder of Lombard Street Research, called a ‘debt explosion’. Mr Laubach’s study has implications for the UK, too, as public debt is soaring. A US crisis would have implications for the rest of the world, in any case.

 

“The study is damning because Mr Laubach was the Fed’s economist at the time, going on to become its senior economist between 2005 and 2008, when he stepped down.  As a result, the doubling in rates is the US central bank’s own prediction.  Mr Congdon said the study illustrated the ‘horrifying’ consequences for leading western economies of bailing out their banks and attempting to stimulate markets by cutting taxes and boosting public spending.  He said the markets had failed to digest fully the scale of fiscal largesse and said ‘current gilt yields [public debt] are extraordinary low given the size of deficits’.  Should the cost of raising or refinancing public debt in the markets double, ‘the debt could just explode’, he said, adding that it would come to a head in ‘five to 10 years.’”

 

The latest on this motion came on Dec 1, 2009 when Market Watch reported that “Charles Plosser, the president of the Philadelphia Federal Reserve Bank, became the first top central bank official to call for higher interest rates in this cycle.  In a speech on Tuesday, Plosser said the Fed had to start raising interest rates sooner rather than later and had to begin withdrawing excess cash from the financial system.  If the Fed does not act soon ‘the inflation rate is likely to rise to levels that most would consider unacceptable,’ he warned.” 

 

Actually, this was not a new move by Plosser as he has several times over the past year commented on the need to raise interest rates.  Some months ago, he predicted that when the rates are raised, the move will be quick without much advance warning.  In other words, one morning we will wake up and be told that the Fed raised the rates over the preceding night. 

 

Thus, Preparations are Now Being Made to Raise the Rates Sharply in one Secret Move

 

Obviously, the Fed and Treasury have seen this eventuality coming.  At some point in time, probably in 2010, the Fed will blast the news of a dramatic increase in US interest rates.  My take is that it will be accompanied by similar huge interest rate increases by the other Rothschild Cabal central banks in Europe and the White British Commonwealth (Australia, Canada, New Zealand, etc).  This realization and planning by the Cabal have prompted two fall outs. 

 

First the Cabal puppet governments and the Cabal banks and other informed banks have been making preparations to really put the screws to borrowers in 2010.  Reportedly, new legislation was passed to put some restrictions on banks while simultaneously opening the flood gates for further Cabal rip-offs and thefts from the American people who become entrapped in loans made by the big banks (often these are made in the form of credit card transactions).  These new regulations take effect in February 2010. 

 

As discussed in the Goldsmiths 123, one of the big features of recent events was that banks apparently can arbitrarily make changes in interest rates (typically 30% for delinquent accounts), fees, and other charges almost at will and in some cases even somewhat without having to notify customers in advance of the change coming down the pike. 

 

For example, Citibank sent me in mid December 2009 an undated Notice of Change in Terms and Information Update on a loan I had with Citibank.  Among other things, it said:  “We are removing your right to extend the repayment term of outstanding transactions… We may reduce or increase your credit line at any time for any reason.  We will notify you of any change, but the change may take effect before you receive the notice.”  Apparently, most of the big banks have had similar letters of notification demanding that borrowers agree to the changes. 

 

Thus, the Cabal banks have followed up by notifying borrowers that these new changes are coming and in many instances the banks have notified borrowers that they must “agree” and “accept” these new changes or their accounts will be closed.  The essence of the changes is interest rates of 30% for late payments and a host of new charges and fees for various and sundry reasons (i.e., to use a credit card check, the fee is now 5%). 

 

Per the Common law, which is supposed to rule the land in Anglo-Saxon-Celtic nations, the people have a provision prohibiting usury.  Usury is not defined but US states have adopted legislation to define it (Idaho, for example, says anything above 12% per annum is usury).  The US gets around it by alleging that under the Interstate Commerce clause in the Constitution (which grants the US government power to regulate interstate commerce) the Federal government can establish interest rates and so-called fees. 

 

Well, for credit cards, the US government has been doing this for years now.  The latest government fad is to open the floodgates to allow banks to charge almost anything they want to in fees and interest rates (at least before mid Feb when the new changes take effect). 

 

To further get around the problem, the banks have responded by creating all kinds of ridiculously high fees and charges even beyond the high interest rates (as discussed in the Goldsmiths 123).  When you add up all of this, it sometimes can mean an effective interest rate of 79.9% as a news article of Dec 16, 2009 reported.  As cited in the Goldsmiths 123, this one from the Associated Press was by Candice Choi on “Credit Card's newest trick: 79.9 percent interest.” 

 

The Choi article reported on how First Premiere Bank treats its credit card customers by saying:  “It's no mistake. This credit card's interest rate is 79.9 percent.  The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry.  It appears that much of that percentage rate involves various fees and charges not called interest rates.  It's a strategy other subprime card issuers could start adopting to get around the new rules.” 

 

First Premier said that it needed to “price our product based on the risk associated with this market.”  The bank declined to specify how many people were offered the 79.9 APR card.  According to First Premier's Web site, the credit cards are serviced by its sister organization Premier Bankcard.  The company, based in Sioux Falls, S.D., says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers.

 

The Second Course on Using Reverse Repurchase Agreements

 

While the Rothschild Cabal clearly has plans to sharply raise interest rates, probably in 2010, it also has been using a second approach to deal with the problem—as mentioned above.  This one involves the Fed plan to try to encourage and promote the sale of US Treasuries (and reportedly Federal Agency Debt). 

 

In the expansion of the Fed’s balance sheet in the last year or so, the Fed ended up buying at least $300 billion in US Treasures (this is the acknowledged figure; but the actual could be even greater than that depending on how clandestinely the purchases were handled).  Now it appears that Rothschild relative and agent Bernanke wants to silently and without fanfare intensify his efforts to sell some of the Fed’s holdings of US Treasuries.  And how can he do it?

 

Well, Bernanke says that he will sell Treasuries to qualified buyers (this means Rothschild Cabal insiders—both foreign and domestic) with an agreement to buy them back later at the same or higher price (evidently at the option of the purchaser). 

 

Apparently, if Rothschild relative or agent X buys some of these Treasuries from the Fed, and at some later time interest rates go up to cause the value of the purchased paper to decline, then the Fed will buy the securities back at their original sales price or at a higher price.  This means that the Rothschild Cabal insiders cannot possibly lose any money on the deal if interest rates do go up as now threatened and indeed planned. 

 

The Bottom Line

 

Probably, these Reverse Repurchase Agreements have been and are being used as a stop gap measure to see if they could succeed sufficiently to delay interest rate hikes as long as possible.  If the Fed can now sell massive amounts of this paper, it may further entice foreign countries and even US people to fork over some of their own funds to also buy more US debt. 

 

In the Goldsmiths 106-107, 109, 120, etc, mention has been made to an ancient document made by or for old man Mayer Amschel Rothschild some 250 years ago on how he and his cousin bankers could rip off European peoples by creating prosperity (thru inflation) and then depression (thru deflation) to make gobs and gobs of money.  This ability arose when European nations stupidly turned their money over to Rothschild/his banking cousins.  With control of a nation’s money, Rothschild took over the media powers which allowed him and his colleagues the power to not only cause depressions, but wars, where they really clean up. 

 

For sure, any increased use of these Reverse Repurchase Agreements and any significant increase in interest rates either or both will be highly deflationary.  Of course, the actions of the Fed and the Cabal’s owned banks have all been pointed toward accomplishing the Rothschild stated power to cause a depression.  We have now had three years or more of this Rothschild imposed deflation to bring on the current depression.  Even now, they are making plans for more of the same. 

 

But there are some problems arriving for the Cabal in its ability to control things.  While they have tried hard to impose deflation, the truth is that there have been increasing inflationary pressures.  So what we have had is an inflationary depression (as I have discussed in previous Goldsmiths).  Frankly, in the Goldsmiths Part X (as published by www.goldseek.com on Sep 10, 2008), I predicted an ultimate hyperinflationary depression which was a first time call as far as I could see.  I note some other hard money and gold advocates are now predicting such a scenario (in Dec 2009). 

 

____________________________________________________________________

 

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. 

 

Besides the revelations contained in the Goldsmiths’ articles, the work of the plutocratic financial market manipulators to conspiratorially manipulate and control the financial markets (to make more profits and install a world government under their management) is also addressed at length in the periodic analysis of the news and in other articles produced at www.analysis-news.com.  This website has an article of interest to any person interested in understanding the market Manipulators.  It is the Hidden Secret of the Manipulators, why they succeed and how to follow their manipulations. 

 

Readers of the above articles are invited to visit www.analysis-news.com and become a subscriber to regularly read some of the material from the world of information which will further reveal how extensive the manipulation, control and dishonesty realities are in the financial, currency and commodity markets, not only in the US but indeed around the world.  To go to the Home Page of this web site, click here:  www.analysis-news.com.


-- Posted Friday, 22 January 2010 | Digg This Article | Source: GoldSeek.com




 



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