-- Posted Friday, 12 November 2010 | | Source: GoldSeek.com
By R. D. Bradshaw
The news wires were ablaze with reports of the recent Fed FOMC meeting of Nov 2-3 and the Fed decision to buy some $600 billion in US debt in the next 8 months to supposedly reduce interest rates. But knowing the capacity of Bernanke to lie and deceive the suckers, maybe we should open our closed eyes and brains and ask if something else could be afoot.
As a minimum, we should have brains enough to ask some questions. In this regard, here is something to remember from WhatReallyHappened.com which had some words on Bernanke Promised Congress The Federal Reserve Would Not Monetize The Debt But Now That Is Exactly What Is Happening: “On June 3rd, 2009 Federal Reserve Chairman Ben Bernanke promised the U.S. Congress that the Federal Reserve would not monetize the debt of the U.S. government. On November 3rd, 2010 the Federal Reserve announced a massive quantitative easing plan which will involve the purchase of 600 billion dollars of U.S. Treasury securities by the middle of 2011. Creating 600 billion dollars out of thin air and using them to buy up U.S. government securities is monetizing the debt. So Federal Reserve Chairman Ben Bernanke has been caught in a lie. Will we ever be able to trust a single word that he says ever again?”
But this is not the first time Bernanke has lied to us about the Fed and the US economy (remember the so-called recession ending back in July 2009). One of the impressive things about the Rothschild Cabal bankers and their relatives and agents in the land of money is their willingness to act in secrecy while lying and deceiving the suckers in public about their real intents/actions. Actually, this methodology was described and laid on some 250 years ago by the Rothschild progenitor Mayer Amschel Rothschild in his document on how he and his cousin bankers could make vast profits and achieve world rule (on this, see Understanding Money and War XIV at www.analysis-news.com).
Bernanke has been trained to follow suit and do as his cousin, master and mentor Rothschild prescribed long ago. He lies with impunity—and gets away with it because the Rothschild media acts to cover-up his lies and never bothers to reveal them to the dumb sheep out there. So what does Bernanke offer as an explanation for this latest bout with deception for the dummies out in Rothschild controlled America (namely, per Bernanke, to further lower interest rates, as noted above, and the latest pitch is to make the stock market go up).
On Nov 5, 2010, www.goldseek.com had an article by Daniel Amerman on Radical Difference Between Monetization1 and QE2 in that technically speaking monetization occurs when the Fed “directly” buys US debt from the Treasury. This happens when the Fed gives the Treasury some bank credits (out of thin air) to the Treasury in exchange for some US debt instruments. In Bernanke’s so called Quantitative Easing (which can be a process of sterilization as Amerman allows), the Fed will go to the Fed’s so-called primary dealers and buy the debt from them. But regardless of what Bernanke calls his maneuver, the fact remains that it can be essentially monetization, depending on how Bernanke handles the buying and selling processes.
The Pundits, Analysts, Experts and Observers React
But the immediate reaction in most of the financial world of analysts and observers is that Bernanke’s move will create massive inflation, devalue the dollar, further destroy savings, penalize the security and well beings of retired and old people and bring on a catastrophic currency crisis to America and perhaps the world.
While there has been much criticism over this Bernanke move, perhaps the best illustration came in a Bloomberg article by Simon Clark and Stephen Morris on Bernanke “Doesn't Understand” Economics, Jim Rogers Says. This article noted that the Bernanke decision to pump $600 billion into the economy shows his grasp of economics is “weak” per Jim Rogers, chairman of Rogers Holdings. Rogers is known to be a very informed and perceptive major investor who knows and understands economics and the financial markets. Therefore his words must be treated with some respect.
Bloomberg quoted the renowned Rogers as saying in a lecture at Oxford: “Dr. Bernanke unfortunately does not understand economics, he does not understand currencies, he does not understand finance… All he understands is printing money… His whole intellectual career has been based on the study of printing money… Give the guy a printing press, he’s going to run it as fast as he can… Debasing your currency has never worked.” The consensus of most Fed watchers is similar to that of Rogers. Bernanke is in the process of printing money. Most take it that this will cause massive inflation and a devaluation of the dollar.
My Take
But my take is contrary to the above. While I cannot say any words about the IQ level of Bernanke, I can confidently say that he is no fool. He knows what he’s doing and right now that is to help his Rothschild cousins in their quest for profits and world rule. Like the other Rothschild cousins and relatives throughout the United States government (at the US Treasury, at the FDIC, at the CFTC, at the SEC, in the Congress and with the major banks and financial exchanges), Bernanke works full time for the Rothschild Cabal of bankers. His move is not what’s best for the US. It is what’s best for the Rothschild Cabal.
I submit that with this latest move of so-called quantitative easing Bernanke has five goals in mind which will be discussed below. But in addressing these goals, one must start with something that many or most of the analysts, pundits and observers have failed to pick upon (though Amerman above did grasp this point). Bernanke’s QE is not being made as would logically be done in monetization with the Fed buying the debt directly from the Treasury. In QE2, the Fed will buy the debt from the Federal Reserve primary dealers. Wikipedia had this to say on the Federal Reserve primary dealers:
“A primary dealer is a bank or securities broker-dealer that may trade directly with the Federal Reserve System of the United States (‘the Fed’). Such firms are required to make bids or offers when the Fed conducts open market operations, provide information to the Fed's open market trading desk, and to participate actively in U.S. Treasury securities auctions…
“Between them, these dealers purchase the vast majority of the U.S. Treasury securities (T-bills, T-notes, and T-bonds) sold at auction, and resell them to the public. Their activities extend well beyond the Treasury market, for example, according to the Wall Street Journal Europe (2/9/06 p. 20), all of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of forex trading volume. Arguably, this group's members are the most influential and powerful non-governmental institutions in world financial markets. Group membership changes slowly, with the current list available from the New York Fed.
“The primary dealers form a worldwide network that distributes new U.S. government debt. For example, Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Nevertheless, most of these firms compete internationally and in all major financial centers.
“In response to the subprime mortgage crisis and to the collapse of Bear Stearns, on March 19, 2008, the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers can borrow at the Fed's discount window using several forms of collateral including mortgage backed loans… As of July 27, 2009 according to the Federal Reserve Bank of New York the list includes:
- Banc of America Securities LLC
- Barclays Capital Inc.
- BNP Paribas Securities Corp.
- Cantor Fitzgerald & Co.
- Citigroup Global Markets Inc.
- Credit Suisse Securities (USA) LLC
- Daiwa Securities America Inc.
- Deutsche Bank Securities Inc.
- Goldman, Sachs & Co.
- HSBC Securities (USA) Inc.
- J. P. Morgan Securities Inc.
- Jefferies & Company Inc.
- Mizuho Securities USA Inc.
- Morgan Stanley & Co. Incorporated
- Nomura Securities International Inc.
- RBC Capital Markets
- RBS Securities Inc.
- UBS Securities LLC.”
On the above list, I can say with some measure of confidence that all or almost all of them are owned by, managed by, and/or controlled by Rothschild relatives, agents and/or colleagues of some sort. They are the classic money changers of the last 2,500 years—still today manipulating currencies for profit and gain and also manipulating US government bonds, notes, bills, etc for profit and gain.
And what should be obviously clear to all persons with brains above the idiot level is that the above currency and debt manipulators are in the game to make money—by hook or crook. Therefore, we can bank on it that Rothschild cousin Ben Bernanke made his decision on monetizing/quantitative easing with that objective in mind. This then brings up the five Bernanke goals, as noted above.
The Five Goals
Here are the goals Bernanke is working on.
First, it allows Bernanke to monetize debt while not using that term. In others words, he didn’t lie in 2009 when he said he would not monetize the US debt. Instead, all he is doing is some more quantitative easing. This is a game of smoke and mirrors, but it is enough to fool the suckers out there in the Rothschild media brainwashed and controlled land of deception.
Second, Bernanke is conveying to the Obama team, the Congress and the American people the willingness of the Fed to step in and ostensibly help the US economy in its hour of need—which is one of the so-called purposes of the privately owned Federal Reserve system. Bernanke is doing what he can; now it’s time for Obama and the Congress to do their part by cutting spending to get the budget in balance (this fiscal frugality is supposed to be deflationary which is the Rothschild objective at this point in time—though it will ultimately fail).
Third, the Rothschild Cabal’s favorite currency for profits and world rule has been the US dollar for many years now. Truly, Bernanke has been tasked to save it for the Rothschilds to continue to use. Thus, his purpose is not to destroy the dollar and the US debt situation but rather to preserve it and save it or defer its death as long as possible. Thus, he is prepared to buy debt that foreigners and Americans will not buy. His purchases are expected to help save the status quo.
Four, Bernanke definitely intends on putting some more profits into the hands of the big Rothschild Cabal banks and financial companies (which make up the above cited primary dealers). Bernanke will do this through several sleight of hand tricks and other secret manipulations.
In the Goldsmiths XXVII, as published in Oct, 2008, I suggested then that the big Rothschild Cabal banks (like those that make up the Fed’s primary dealers) were trying hard to bring deflation to the US. They had been and still are socking their money into US treasuries rather than loaning it out to the American people (this is the classic Rothschild MO in creating deflation, as described in Understanding Money and War XIV at www.analysis-news.com). For the last two years plus, I have repeated that basic message of Rothschild imposed deflation. It’s still the same today; and it’s the path being followed by Rothschild cousin Ben (though again, it will ultimately fail).
These big Rothschild banks are holding large sums of US Treasuries--bought up over the past several years while the Cabal has been trying to impose deflation on the American people. Many of the two and five-year notes involved will begin having maturity dates in the next year or so. Bernanke has now pledged in QE2 to buy up this US paper from the big banks (the primary dealers) and give the banks a new shot of funding to continue to buy US debt (the above cited article by Daniel Amerman also made this point). Please note that Bernanke will be buying US notes (with shorter two and five-year maturities) and not long term US bonds. If the Fed was buying long term bonds, the scheme would not work as it will with shorter term notes now held by the big banks/primary dealers.
What is happening is that the Rothschild Cabal banks will sell their soon expiring debt to the Fed (and we can be sure that they will sell it a nice, fat profit). With the Fed money/bank credits coming to the Rothschild Cabal banks, they can buy the new debt being issued with more far out maturities (thus, the banks are merely rolling over their holdings). As this debt is bought by the Fed and as it matures, Bernanke is now on record that he will in future days also roll over maturing debt and buy even more of it from the dealers (beyond the now pledged $600 billion). From Bernanke’s point of view, this will continue the status quo of curtailing lending and promoting deflation.
As Daniel Amerman suggested, we don’t know the secret details of the Fed buy-out plan but there is a strong possibility that the Fed will impose limitations on the dealers to not allow them to use the sales proceeds for lending or something else other than buying more US debt). Actually, lending is improbable anyway because the Treasury and primary dealers are already having trouble selling US debt as buyers are vanishing right and left. The net result of this Fed effort ostensibly may impose some deflation on America instead of inflation (which theoretically has been the scenario since about 2006 or 2007 when the Cabal imposed decline first set-in in earnest).
I have just noted the profitability of this effort for the Rothschild primary dealers. They are all classic money changers. They buy cheap and sell high or at least higher. We can be sure that the Fed will pay the Cabal banks a nice profit on their US debt investments bought over the last several years. This whole QE2 process is designed to further help the big Cabal banks and financial institutions (the primary dealers). They will make gobs of money as they continue securing their funds in supposedly safe US Treasuries instead of lending to the public.
As proof of how this scheme will be helping the banks, one can turn to a Bloomberg story of Nov 7, 2010 by Daniel Kruger and Cordell Eddings on Treasury Yields Tumble to Records on Fed's Plan to Purchase $600 Billion. This article noted that “The yield on the 5-year note decreased this week eight basis points, or 0.08 percentage point, to 1.09 percent, according to BG Cantor Market Data. The price of the 1.25 percent security maturing in October 2015 rose 3/8, or $3.75 per $1,000 face amount, to 100 25/32.” True, yields are falling but also note that prices are increasing (all of this will help the big banks as the Fed buys this stuff from the dealers).
Bloomberg also reported that yield on 30-year bond yield went up 14 basis points to 4.12 percent after advancing to 4.16 percent, the highest level since June 22. Bloomberg said that investors are demanding the extra yield on bonds versus 5-year notes. This is an interesting paradox as Bernanke lied again by saying that the goal of QE2 was to get interest rates down. While he can say this on short term notes, he certainly can’t say it with longer term bonds. With the change in note values, we can be sure that the Fed will pay a nice premium to the primary dealers to buy the notes. The primary dealers will make big profits on this scam.
Fifth, the long time goal of the Rothschild Cabal and its cousin Ben is deflation as I have repeatedly stated and as described at Understanding Money and War XIV (at www.analysis-news.com). As for the so-called threat to inflation from QE2, I don’t see it. Yet, we are going to have not only more inflation but ultimately hyperinflation—not just because of the Fed/banks buying US Notes but because of social and government policies (and growing anarchy and rebellion among the people over the stupid actions of the US government to continually pay off and reward the big banks owned/controlled by the Rothschild Cabal and other factors like natural disasters, internal terrorism, war, Iran, China, Russia, etc).
Anyway, the above Bloomberg quoted Dominic Konstam, global head of interest rate research at Deutsche Bank AG in New York. Konstam said on the subject: “You’ve got deflation risks that are going to stay with us for several years.” And that is the real, secret goal of the Rothschild Cabal masters and their lackeys like cousin Bernanke at the Fed, cousin Jamie Dimon at JP Morgan Chase and their cousins at Goldman Sachs and the other Cabal-linked institutions. This latest Fed maneuver is not designed to put more money into the economy or to stimulate inflation. Instead, it is something else.
Admittedly, buying new Treasuries to finance debt should theoretically be inflationary. But the problem is that most of the new government spending goes overseas (where much of it ends up in purchasing more US debt or banks holding it as dollar reserves) and/or to the big Rothschild Cabal institutions (in interest payments, mortgage and real estate subsidies, bail outs, and other forms of payoffs). The Cabal banks are not spending it or loaning it out but are merely socking it away in more Treasuries. This is the Bernanke goal—be sure that much of the US government spending in the budget goes to the big Cabal banks and financial institutions through hook or crook and not end up as social or infrastructure payments within the US which could cause some inflation if the spending should chase goods and services.
So while the case might be made that this scheme will theoretically give Obama and the Congress some more new money to spend and cause inflation, I disagree. As I noted above, the plan is to force Obama and the Congress to reduce speeding on everything possible except spending to benefit the Rothschild Cabal (for example, there are growing efforts to now cut back on social security payments, medicare and extending unemployment benefits).
Thus, the problem with new and continued spending is that the president and Congress have already committed the taxpayers to pay huge sums of money trying to benefit the big banks—like in the mortgage and real estate markets. Couple this with already incurred obligations for the Rothschild Cabal (interest on the national debt, Rothschild wars for profit and Rothschild commitments for foreign aid) and there is not much more that can be spent in the US economy with the historic spending plans of the big Democrat spenders (at least not much more for internal US social programs to cause inflation). The money is simply not there and won’t be there in the foreseeable future (though I agree that at some point in time, the politicians will probably succumb and begin some lavish spending to try to justify their re-election).
The Bottom Line
The conclusion here I must offer is that Rothschild cousin Bernanke is not as stupid as many observers and analysts now make him out to be. He knows what he’s doing. He is trying to give the big Rothschild Cabal banks and financial institutions more and more profits if possible and at the same time, if possible, save the system for the Rothschild Cabal masters. While I agree that he will succeed in giving the Rothschild primary dealers a huge new source of profits, I disagree that Rothschild cousin Ben can or will save the system. It is now destined to fail.
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-- Posted Friday, 12 November 2010 | Digg This Article
| Source: GoldSeek.com
