-- Posted Wednesday, 21 July 2010 | | Source: GoldSeek.com
The following are some snippets from the most recent issue of the International Forecaster. For the full 35 page issue, please see subscription information below.
US MARKETS
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Now mind you, the Federal Reserve, which Congress has now put in charge of our entire financial system, is the privately owned, and largely foreign owned, central bank of the US which has always operated, and which continues to operate, in total secrecy, and with zero accountability. So, after the Fed destroyed our economy with malice aforethought, it certainly must have made perfect sense to the apparent morons and village idiots in Congress to put the Fed completely in charge. That way, we won't have the slightest clue about what is being done to our financial system, which the Fed will regulate in total secrecy, with the usual zero accountability, and with input from the Fed's foreign owners who will have a say over our economy and our financial system from behind the scenes. Who could possibly argue with such logic? You just can't make this stuff up! Obviously, our Congress are not idiots, as they know exactly what they are doing. After all, what would you expect from a bunch of corrupt Illuminist marionettes who are either on the take, who are compromised by the skeletons in their closet, or both.
To summarize what has just happened in more colorful terms, our Congress Critters, in their utterly profound wisdom (corruption), under the guise of financial reform (the creation of a financial monopoly), have set the Fed up at the top of the financial food chain, like a great white shark looking over a large school of tasty fish (other banks, and also many other financial institutions like investment banks, insurance companies, hedge funds, pension funds, brokerage firms, commodity firms, etc., aka "non-bank financial companies," aka the competition). The proposed Financial Stability Oversight Council (FSOC), which is little more than a bunch of Illuminist marionettes like our Congress, will make all the new rules and regulations for the Fed to lord it over all the other financial institutions in our economy. In reality, the Fed will write all the rules and hand them to the FSOC for rubber-stamping.
Then we have the proposed Office of Financial Research, which will be set up as the new financial Gestapo, gathering information about all the problems being experienced by banks and non-bank financial companies alike so that this information can be used against them in order to eliminate them from competition, to liquidate them among the larger Illuminist institutions for pennies on the dollar, and to provide juicy tidbits of insider trading information for the fun and profitability of Fed cronies. Picture pieces of meat being fed to a school of hungry piranhas if you would like an appropriate metaphor.
Did you ever wonder why the Fed keeps doling out loans to their crony legacy banks that are parked at favorable rates of interest with the Fed instead of being loaned out into the general economy to help fuel the recovery, so-called. Is it to shore up the financial reports of the zombie banks? Nothing could shore up their financial reports except blatant lies about their assets by using mark-to-model fantasy values instead of mark-to-model reality values. This is just the token excuse given for this free ride gift from the Fed to the Illuminist legacy banks. The real reasons for this storehouse of sterilized money are quite different, and are multi-faceted.
First, this is one of the chief methods that the Illuminists are using to impoverish pensioners and savers while enriching the Illuminist banks at taxpayer expense by giving them a spread (return on the money they borrow from the Fed, at near zero interest, and then park with the Fed, at 3%, no-risk interest), thereby keeping their zero interest loan money out of the general economy, which they intend to destroy to pave the way for a one-world government, while simultaneously keeping inflation in check because the money is not circulating in the general economy via loans (the money is thereby said to be "sterilized").
Second, it will be used as a token injection of cash to keep our economy from sinking, thus stretching out the inevitable death of our economy to the farthest possible point. Yes, that's right, to keep their salaries and bonuses going as long as possible, the Illuminist banks will throw us some bones once all the too-big-to-fail bailout money, stimulus packages and currency swaps are exhausted and can no longer be politically maintained.
But the chief reason for this cash is to fund the feeding frenzy that will occur as most of the weaker financial institutions are gobbled up and liquidated pursuant to the provisions of the new financial regulation bill which will put the FDIC in charge of the liquidations. The FDIC's liquidations will be funded in advance by the US Treasury, which means that the Fed will print or digitally credit the money to the US Treasury at interest out of thin air, (the verbiage in the proposed legislation removes all mention of the Fed's involvement through clever wording which mentions only the US Treasury, since they think that the Congress Critters and US citizens are too stupid to know that the US Treasury in turn cannot float any loans to the FDIC without the Fed's explicit involvement, but never mind that) based on the "fair value" of the various assets held by the institutions that are being liquidated by the FDIC. The Fed will front the money to the FDIC via the US Treasury so the FDIC can pay the amounts demanded by the various claimants, with the assets to be sold later, ostensibly to avoid fire sales. The loans from the US Treasury funded with the Fed's funny money (at interest no less) will be paid back out of the sales proceeds of the assets, which ostensibly could then be liquidated under more favorable terms.
So here we have this liquidation system based on "fair value," whatever that means, which will of course vary under different circumstances to enhance the interests and profits of Illuminist cronies. When a bank or non-bank financial company under liquidation is under Illuminist control, or has Illuminist creditors/claimants, the fair value will be a mark-to-model fantasy value, so the Illuminist financial entity, or Illuminist creditors, as the case may be, will get maximum value, while the assets are later sold at substantially lower mark-to-market values, resulting in a loss to the US Treasury, and by extension, to US taxpayers. When a non-Illuminist legacy bank or non-bank financial company has no substantial Illuminist owners or creditors, its assets will be given the much lower mark-to-market values, first to force them into liquidation, and then to assure that their assets are sold off at pennies on the dollar to Illuminist banks and financial institutions. And where will the Illuminist banks and financial institutions get the money to buy these assets at pennies on the dollar? Why from the money they have parked with the Fed at 3% interest of course. The Illuminist banks will either use that money directly, or loan it to other Illuminist financial institutions at favorable rates, to fund the fire-sale purchases. Whoa, look at those piranhas go!!!
That looks to be a pretty nice racket, don't you think? And that is what this financial reform bill is all about - eating up the competition and surreptitiously screwing the taxpayer. Heads we win, tails you lose. We get the gold mine, you get the shaft. This is Illuminist thinking at its most diabolical level.
We would also point out that the lax accounting rules allowed by regulators to hide the destruction of our financial system are in no way changed in any significant way by the financial regulation bill just passed by Congress. So regulators will continue to allow banks to state their assets at mark-to-model fantasy values. And they will continue to allow banks to park their losses off balance sheet just before the end of a quarterly reporting period, and then put them back on after the quarter has ended (think Bear Stearns and Lehman Brothers). Regulators will also continue to allow all the other smoke and mirror accounting frauds currently utilized by banks to hide their walking dead status. That is because the so-called "Fin Reg" bill has nothing to do with reform and has everything to do with perpetuating the corrupt system, allowing the too-big-to-fail bankster-gangsters to continue foisting their fraudulent toxic waste bonds and derivatives on unsuspecting sucker-dupe clients, while creating a financial monopoly in the Frankenstein Fed which will use its newfound complete and unfettered power to cull out the competition and set up the Illuminist legacy banks as the only financial game in town. That is where we are headed.
But that's not all folks. The G-20 is now talking in terms of using special drawing rights (SDR's) as an international reserve currency for the world's international banking cabal, which is composed of privately owned and/or government controlled central banks from around the world which operate in coordination with each other surreptitiously, although we note that internecine spats do occur from time to time. We also note in passing that even those spats are often staged to gain political advantage or to grandstand a point of view for political consumption only (i.e. saying things that are popular but that you have no intention of supporting, or that have no possible chance of being passed - think Sarkosy, think ECB calls for austerity as they create a trillion dollar bailout package for the PIIGS).
In any case, while the G-20 set up their SDR's, based on a basket of fiat currencies, everyone else (that would be the bourgeoisie proletariat of common serfs) will get to keep their usual currencies, after they have been devalued against other currencies around the world, thereby destroying the value and buying power of the "unlucky" losers in the currency devaluation game. US citizens and the dollar are going to be on the losing end along with most of the other developed countries and their currencies due to their totally abysmal fiscal condition which has of course been brought about through the many Illuminist machinations which we have discussed ad infinitum in issue after issue of the IF. The "lucky" winners in the currency devaluation game will get to deal with massive trade deficits instead of lost buying power because their exported goods and services will become astronomically expensive overseas. So either way, the masses will have their devaluation problems, while the bankers sit on their SDR's.
But if the SDR's are nothing but a basket of fiat currencies, then how would the bankers be better off than the serfs? We're glad you asked. Now here comes the kicker.
First, you can rest assured that the Illuminists will never allow SDR's, or any international reserve currency, to be anything but a fiat currency. They will never succumb to the discipline of gold. We repeat: Never, ever, ever, will they voluntarily back SDR's with gold!!! That is why gold suppression is JOB ONE at the Fed and at central banks around the world. Do you think that after the Illuminists had FDR take us off the gold standard domestically in 1933, and then had Nixon take us off the gold standard internationally in 1971, that they are even thinking of going back to any kind of a gold standard? If you see the Illuminists go back to the gold standard where gold becomes a reserve currency for SDR's or for any other world reserve currency, then that would be one of the happiest days of our lives, because it would mean the Illuminati's plans for world government have totally failed and that they have to start from scratch. We would love nothing better, and it could happen, but we doubt they will capitulate that easily. A pitched battle lies ahead.
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THE INTERNATIONAL FORECASTER
WEDNESDAY, JULY 21, 2010
072110(6) IF
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