Janet Yellen Exposed by Peter Schiff

Peter Schiff exposes the PR job done by the presstitutes on Janet Yellon.

What a US Debt Default Could Bring

A US debt default could trigger a nightmare scenario that many economists have been warning about. Eventually this shit pile of debt will have to be dealt with but is this the moment ? One thing is for sure, this can easily be avoided but as usual politicians like to play Russian roulette.

The following are 12 very ominous warnings about what a U.S. debt default would mean for the global economy…

#1Gerald Epstein, a professor of economics at the University of Massachusetts Amherst: “If the US does default, that will make the Lehman Brothers bankruptcy look like a cakewalk”

#2Tim Bitsberger, a former Treasury official under President George W. Bush: “If we miss an interest payment, that would blow Lehman out of the water”

#3Peter Tchir, founder of New York-based TF Market Advisors: “Once the system starts to break down related to settlement and payments, then liquidity disappears, as we saw after Lehman”

#4Bill Isaac, chairman of Cincinnati-based Fifth Third Bancorp: “We can’t even imagine all the things that might happen, just like Henry Paulson couldn’t imagine all the bad things that might happen if he let Lehman go down”

#5Jim Grant, founder of Grant’s Interest Rate Observer: “Financial markets are all confidence-based. If that confidence is shaken, you have disaster.”

#6Richard Bove, VP of research at Rafferty Capital Markets: “If they seriously default on the debt, what we’re really talking about is a depression”

#7Chinese vice finance minister Zhu Guangyao: “The U.S. is clearly aware of China’s concerns about the financial stalemate [in Washington] and China’s request for the US to ensure the safety of Chinese investments.”

#8The U.S. Treasury Department: “A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse”

#9Goldman Sachs: “We estimate that the fiscal pull-back would amount to 9pc of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly”

#10Simon Johnson, former chief economist for the IMF: “It would be insane to default, but it’s no longer a zero-percent probability”

#11Warren Buffett about the potential of a debt default: “It should be like nuclear bombs, basically too horrible to use”

#12Bloomberg: “Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen.”

Source: theeconomiccollapseblog.com

Government Creating Phony Crisis So They Can Pretend To Save Us

Peter Schiff gives his take on the the Government shutdown.

Finally Detroit To Default

It was a sad day for Detroit, a once proud American city but the writing has been on the wall for quite some time. Eventually on Friday it was announced that it would stop making payments on $2.5 billion of its total $17 billion dollars of outstanding debt. Kevyn Orr, the Emergency Manager for the City of Detroit, presented to the City’s creditors the plan ahead for Detroit’s future.

Detroit said Friday

it would stop making payments on about $2.5 billion in unsecured debt and ask creditors to take about 10 cents on the dollar of what the city owes them in a move to avoid what bankruptcy experts have said would be the largest municipal bankruptcy in U.S. history.

Detroit Emergency Manager Kevyn Orr spent two hours with about 180 bond insurers, pension trustees, union representatives and other creditors outlining his plan for the city’s financial future, which includes a moratorium on some principal and interest payments, Reuters reported.

Under his proposal, underfunded pension claims likely would get less than the 10 cents on the dollar.

An assessment of the plan’s progress will come in the next 30 days or so.

Orr also announced that Detroit stopped paying on its unsecured debt Friday to “conserve cash” for police, fire and other services in the city of 700,000 people. The debt not being paid includes $39 million owed to a certificate of participation.

“We will not pay that today,” Orr told reporters after the meeting with creditors at a hotel at Detroit Metropolitan Airport in Romulus.

More than 42 percent of Detroit’s 2013 revenues went to required bond, pension, health care and other payments. If the city continues operating the way it had before Orr arrived, those costs would take up nearly 65 percent of city spending by 2017, Orr’s team said.

The team also said the proposal presented Friday is the one shot to permanently fix fiscal problems that have made the city insolvent.

“We’re tapped out,” Orr was quoted by WWJ-TV as saying. “We need to come up with a plan to restructure our debt obligations and our legacy obligations going forward — that is: pension, other employee benefits, health care, so on and so forth.”

Orr said everyone involved needs to come to grips with Detroit’s dire financial situation that has been worsened by years of procrastination and denial. He said his team is prepared for potential lawsuits from creditors not pleased with the arrangements under the plan.

“If people are sincere and look at this data, you would think a rational person will step back and say, ‘This is not normal … but what choice do we have?'” Orr said.

James McTevia, president of the Detroit-area turnaround firm McTevia and Associates, said once Orr had creditors’ attention Friday, he “drew a line in the sand and said everything behind here is frozen.”

“And going forward he is positioning the city of Detroit in a place where it can pay for goods and services without going into debt,” McTevia said.

Detroit’s fiscal nightmare didn’t occur overnight. It’s been decades in the making as city leaders took out bonds at high interest rates to pay bills Detroit’s general fund couldn’t cover.

“The average Detroiter has to understand this is a culmination of years and years of kicking the can down the road,” Orr said. “We can’t borrow any more money. We started borrowing from our own pension funds.”

The city’s budget deficit could top $380 million by July 1. Orr believes Detroit’s long-term debt is more than $17 billion.

The Washington-based bankruptcy attorney hired by Michigan in March reiterated that the chances of bankruptcy are 50-50 for Detroit, the largest U.S. city placed under state oversight.

Orr is nearly three months into the 18-month job. With little time remaining on his contract, there is no time to lose. The plan creditors received in the closed-door meeting may be the only one they get.

“There may be some room for negotiations, but not a lot,” Orr told reporters. “They need to have some time to digest what they have.”

Swallowing the proposal will be tough, especially for current and retired city workers whose health care and other benefits, as well as pensions, would be cut back.

“The firefighters are going to do what we can to keep the city stable now,” Detroit Fire Fighters Association President Dan McNamara told reporters after Friday’s meeting with Orr.

McNamara said creditors were told by Orr that “we’re in a death spiral.”

The city will not be able to back up some promises related to pension and post-employment health care and benefits. Orr is proposing a $27 million to $40 million health care replacement program that will partially rely on the federal Affordable Health Care Act, health exchanges and Medicare.

He also said $1.25 billion will be set aside from concession savings over 10 years for public safety, lighting and eliminating neighborhood blight. Improving the quality of life in the city will help attract more residents and businesses, which Orr’s team says would bring more tax revenue and increase the potential for creditors to recover more of what they are owed.

Creditors were told about plans to possibly change management of Detroit’s revenue-generating Water and Sewerage Department. A separate, freestanding authority would control the department, with some annual payments coming to Detroit and the city maintaining ownership of the system.

On Friday, Moody’s Investors Service downgraded a number of Detroit bonds, including its general obligation unlimited bonds. As a result, all Detroit bonds are now below investment grade.

Hetty Chang, a vice president with Moody’s, said “the emergency manager’s proposal to creditors indicates further debt restructuring.”

“We also believe the city’s risk of bankruptcy has increased over the last six months,” she said in a statement.

Read more: Fox News

Colorado Turns To Hemp

The benefits of the wonder plant hemp are massive and Colorado has recently passed an amendment to enable the cultivation of production of hemp within the state. Capable of growing 6 feet in two weeks, it could provide a big boost to the community. Anything that generates revenue and provides employment needs to be taken seriously. In this case a natural product which has a multitude of uses including generating oil, fibre used to fortify products, clothing and a food source. Even hemp oil has been claimed to have properties to cure cancer. The wonder plant indeed. 🙂

(NaturalNews) The recent passage of Amendment 64 in Colorado, which legalizes the cultivation and recreational use of marijuana throughout the state, is having a major impact on the state’s agricultural sector. But the biggest potential for economic growth may actually come from marijuana’s non-psychoactive cousin hemp, which is right now being planted on U.S. soil for the first time in 60 years, thanks to the initiative’s passage.

According to reports, a 60-acre plot of land in the southeastern corner of Colorado will be brimming with hemp plants. It will be the first time that hemp has been grown commercially on American soil in more than 60 years, and many more plots of land throughout the Rocky Mountain state are expected to follow suit, as the latest figures estimate that the hemp industry will outpace the marijuana industry by a factor of 10 or more.

“I believe this is really going to revitalize and strengthen farm communities,” says Ryan Loflin, the man who intends to plant America’s first hemp crop on his 60 acres of arable land, which formerly supported alfalfa.

Hemp is not marijuana, and there is no legitimate reason for its continued prohibition by the Feds

Many Americans are still unaware that there is even a difference between hemp and marijuana, both of which are prohibited by the federal government from being cultivated on U.S. soil. But unlike marijuana, hemp contains little-to-no THC (tetrahydrocannabinol), the psychoactive component of marijuana that gets people “high,” which means that hemp cannot be smoked, and thus cannot be not used as a drug.

To the contrary, hemp is an amazingly robust industrial plant, the various components of which can be used in a variety of commercial and nutritional applications. Hemp seed oil, for instance, and hemp protein are popular, omega-3 fatty acid-rich food products consumed by millions of health-conscious individuals. Hemp fiber is also sometimes used to reinforce concrete and to fortify automobile bodies and frames. And beyond this, hemp naturally cleanses soil and water, which makes it a powerful force for good in the environment.

“Hemp is food, animal feed, fiber, fuel, shelter,” says Lynda Parker, a Colorado-based hemp supporter and founding member of a pro-hemp coalition in the Rocky Mountain state, as quoted by The Denver Post. “It cleans the air, the water, the soil. Hemp could be enormous for Colorado because we’re the first state to legalize it.”

Nationwide legalization of hemp would generate incalculable economic prosperity for Americans

But as previously mentioned, hemp somehow got lumped into the same category as marijuana as far as the federal government is concerned, which means Americans have been deprived for over half a century of reaping its many practical and economic benefits. Virtually all of the hemp used today in American products has to be imported from places like Canada due to legal prohibitions that block its cultivation here at home.But all of this is changing in Colorado, where a reanimated hemp industry is quickly emerging from the dust bins of history, and reviving the economic climate of struggling rural Colorado. Similar to the current situation in many other states, many rural communities in Colorado have long suffered from a lack of healthy industry. But hemp could set the state on a whole new course toward economic prosperity that will most assuredly be the envy of the rest of the country.“This is monumental for our industry,” says Bruce Perlowin, CEO of company known as Hemp Inc. “It will unlock a clean industrial revolution that will be good for the economy, good for jobs and good for the environment.”To learn more about the many benefits of hemp, as well as America’s rich, but little-known, hemp history, be sure to visit:http://hemphistory.org/

Source: Natural News

Whistleblower Says World Bank Corruption Centered on Federal Reserve

Karen Hudes was a former employee of the World Bank and has since turned whistleblower on its activities. Remember Joseph Stiglitz (Chief economist) resigned from the World Bank in protest with its policies. Below is Hudes interview with The New American.

A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success. 

Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”

According to the peer-reviewed paper, which presented the first global investigation of ownership architecture in the international economy, transnational corporations form a “giant bow-tie structure.” A large portion of control, meanwhile, “flows to a small tightly-knit core of financial institutions.” The researchers described the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers. Of course, the implications are enormous for citizens as well.

Hudes, an attorney who spent some two decades working in the World Bank’s legal department, has observed the machinations of the network up close. “I realized we were now dealing with something known as state capture, which is where the institutions of government are co-opted by the group that’s corrupt,” she told The New American in a phone interview. “The pillars of the U.S. government — some of them — are dysfunctional because of state capture; this is a big story, this is a big cover up.”

At the heart of the system are a small number of companies (exposed by the Swiss study) and central banks with massive influence that run the world.

At the heart of the network, Hudes said, are 147 financial institutions and central banks — especially the Federal Reserve, which was created by Congress but is owned by essentially a cartel of private banks. “This is a story about how the international financial system was secretly gamed, mostly by central banks — they’re the ones we are talking about,” she explained. “The central bankers have been gaming the system. I would say that this is a power grab.”

The Fed in particular is at the very center of the network and the coverup, Hudes continued, citing a policy and oversight body that includes top government and Fed officials. Central bankers have also been manipulating gold prices, she added, echoing widespread concerns that The New American has documented extensively. Indeed, even the inaccurate World Bank financial statements that Hudes has been trying to expose are linked to the U.S. central bank, she said. 

“The group that we’re talking about from the Zurich study — that’s the Federal Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes explained. “So the Federal Reserve secretly dominated the world economy using secret, interlocking corporate directorates, and terrorizing anybody who managed to figure out that they were having any kind of role, and putting people in very important positions so that they could get a free pass.”

The Bank of International Settlements acts to coordinate Central Bank policy to dominate and rule the global financial system.

The shadowy but immensely powerful Bank for International Settlements serves as “the club of these private central bankers,” Hudes continued. “Now, are people going to want interest on their country’s debts to continue to be paid to that group when they find out the secret tricks that the group has been doing? Don’t forget how they’ve enriched themselves extraordinarily and how they’ve taken taxpayer money for the bailout.”

As far as intervening in the gold price, Hudes said it was an effort by the powerful network and its central banks to “hold onto its paper currency” — a suspicion shared by many analysts and even senior government officials. The World Bank whistleblower also said that contrary to official claims, she did not believe there was any gold being held in Fort Knox. Even congressmen and foreign governments have tried to find out if the precious metals were still there, but they met with little success. Hudes, however, believes the scam will eventually come undone.

“This is like crooks trying to figure out where they can go hide. It’s a mafia,” she said. “These culprits that have grabbed all this economic power have succeeded in infiltrating both sides of the issue, so you will find people who are supposedly trying to fight corruption who are just there to spread disinformation and as a placeholder to trip up anybody who manages to get their act together.… Those thugs think that if they can keep the world ignorant, they can bleed it longer.”

Of course, the major corruption at the highest levels of government and business is not a new phenomenon. Georgetown University historian and Professor Carroll Quigley, who served as President Bill Clinton’s mentor, for example, wrote about the scheme in his 1966 book Tragedy And Hope: A History Of The World In Our Time. The heavyweight academic, who was allowed to review documents belonging to the top echelons of the global establishment, even explained how the corrupt system would work — remarkably similar to what Hudes describes.

The system has been created to enable private hands to control the global financial and political systems but there is hope that this will be exposed and cleared up.

“The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole,” wrote Prof. Quigley, who agreed with the goals but not the secrecy. “This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”

But it is not going to happen, Hudes said — at least not if she has something do to with it. While the media are dominated by the “power grabber” network, Hudes has been working with foreign governments, reporters, U.S. officials, state governments, and a broad coalition of fellow whistleblowers to blow the entire scam wide open. There has been quite a bit of interest, too, particularly among foreign governments and state officials in the United States.

Citing the wisdom of America’s Founding Fathers in creating a federal system of government with multiple layers of checks and balances, Hudes said she was confident that the network would eventually be exposed and subjected to the rule of law, stopping the secret corruption. If and when that happens — even if it may be disorderly — Hudes says precious metals will once again play a role in imposing discipline on the monetary system. The rule of law would also be restored, she said, and the public will demand a proper press to stay informed.

“We’re going to have a cleaned-up financial system, that’s where it is going, but in the meantime, people who didn’t know how the system was gamed are going to find out,” she said. “We’re going to have a different kind of international financial system…. It’ll be a new kind of world where people know what’s going on — no more backroom deals; that’s not going to keep happening. We’re going to have a different kind of media if people don’t want to be dominated and controlled, which I don’t think they do.”

While Hudes sounded upbeat, she recognizes that the world is facing serious danger right now — there are even plans in place to impose martial law in the United States, she said. The next steps will be critical for humanity. As such, Hudes argues, it is crucial that the people of the world find out about the lawlessness, corruption, and thievery that are going on at the highest levels — and put a stop to it once and for all. The consequences of inaction would be disastrous.     

Source: The New American

Ron Paul & Jim Rogers: Chaos Up Ahead

Hard to argue with common sense especially from 2 heavyweights like Ron Paul and Jim Rogers in this 3 minute clip.

These are clear warnings signs that a rational person simply cannot ignore.

Bottom line, Nations are going bust. And the worse things get, the more desperate their tactics become. This isn’t the first time that the world has been in this position. This time is not different. History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people’s wealth, savings, livelihoods and liberties… either directly or indirectly.

What’s happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom. I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed).

Many people will resist the change and instead cling desperately to the old system – the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever. And in case it still weren’t obvious, here is three minutes of clarity from Ron Paul and Jim Rogers…”I would expect that there is going to be a lot more chaos still to come.” – Ron Paul; “They won’t take our bank accounts…they will take our retirement accounts.” – Jim Rogers

Via Simon Black of Sovereign Man blog,

The world is truly an enormous place… and, despite the dearth of good news and positive trends out there, I still see a lot of amazing opportunities in my travelsBut it’s really important to remain grounded about the challenges that face us. As I pen this letter to you, in fact,

– The NSA’s Utah data center, which will intercept every phone call, email, and tweet sent across the Internet, is nearing completion.

– The Marketplace Fairness Act, which will create additional sales taxes on US-based Internet transactions, is set to pass the Senate next week.

– The government of Cyprus just passed the final bail-in measures, officially authorizing the direct confiscation of people’s savings in that country’s banking system.

– The Bank of Japan recently announced its intentions to double down on their already unprecedented money printing operations.

– Not to be outdone, the US Federal Reserve just announced that they will maintain their Quantitative Easing program, which dilutes the existing money supply by more than $1 trillion annually.

– At $16.83 trillion, the US federal debt is at a record high and set to breach $17 trillion early this summer.

– President Obama recently proposed to cap the tax deferral benefit on Individual Retirement Accounts in the Land of the Free

These are clear warnings signs that a rational person simply cannot ignore.

Bottom line, nations are going bust. And the worse things get, the more desperate their tactics become.

This isn’t the first time that the world has been in this position. This time is not different.

History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people’s wealth, savings, livelihoods and liberties… either directly or indirectly.

What’s happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom.

I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed).

Many people will resist the change and instead cling desperately to the old system– the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever.

And in case it still weren’t obvious, I’d like to present Ron Paul and Jim Rogers, speaking together at our event in Chile a few weeks ago, with their own views on the situation.

“They won’t take our bank accounts…they will take our retirement accounts.” – Jim Rogers

“We are going to have a calamity in economics and political crises as economies worldwide are a lot weaker than they tell us.” – Ron Paul

“I would expect that there is going to be a lot more chaos still to come.” – Ron Paul

“There are so many distortions because we disobeyed economic law – no matter what Bernanke tell’s you.” – Ron Paul

“Bernanke’s whole intellectual career has been dedicated to the study of printing money.” – Jim Rogers

 

“I don’t doubt [the confiscation] at all; and they will use force and they’ll use intimidation.” – Ron Paul

Source: ZeroHedge,  SovereignMan

Fed Has No Plan B

According to Kevin Warsh,( former member of the Board of Governors of the Federal Reserve from from 2006 to 2011), the Fed has no “plan B” and Washington has no strategies for growth. Well one thing is for sure, whatever they are trying, it ain’t working.

At the very crux of the financial crisis, former Fed governor Kevin Warsh notes, “experimental extreme monetary policy,” had the “right risk-reward”, but, he warns, in this excellent (and somewhat chilling) discussion at the Milken Institute, “we left a financial crisis more than for years ago.” While the politicians may ‘prefer’ to think of this as a crisis – and indeed “for them it is a crisis as they preside over an economy that refuses to grow,” which has tended to lead to loss of office, but, Warsh condemns, “they have run out of excuses.” Over the last several years, “[the Fed] has over-promised and under-delivered,” and the bank’s most important asset – credibility – is under attack.

The Fed has “enabled” Washington to do nothing, since the politicians expect the same “rabbit out of the hat” rescue that occurred in the darkest days of the financial crisis. This means no growth strategies (“the mix of policies has to be right”) will occur. Since the financial crisis, Washington has done its level best to focus on GDP in the next quarter, or perhaps the election, and precious little beyond that short-term horizon. Warsh concludes, “There Is No Plan B.”

The Fed has fewer degrees of freedom and the rest of Washington is not coming to the rescue; and furthermore “the ability of a central bank, exclusively, without the rest of Washington doing any bit of the task, to turn an economy from a modest recovery to a robust one is an experiment that is untested – and will not prove to be successful.“

Click for full story.

Source: ZeroHedge

David Stockman: The Economy Is A Giant Ponzi Scheme

David Stockman (fmr Budget director for Ronald Regan) sums up the US economy as a giant Ponzi scheme.

Why Derivatives Get Priority Over Insured Deposits

When the SHTF the great derivatives bubble will get priority in the US over everything, even insured deposits. What do you think will be left by then? Ellen Brown takes a closer look.

Cyprus-style confiscation of depositor funds has been called the “new normal.”  Bail-in policies are appearing in multiple countries directing failing TBTF banks to convert the funds of “unsecured creditors” into capital; and those creditors, it turns out, include ordinary depositors. Even “secured” creditors, including state and local governments, may be at risk.  Derivatives have “super-priority” status in bankruptcy, and Dodd Frank precludes further taxpayer bailouts. In a big derivatives bust, there may be no collateral left for the creditors who are next in line. 
Shock waves went around the world when the IMF, the EU, and the ECB not only approved but mandated the confiscation of depositor funds to “bail in” two bankrupt banks in Cyprus. A “bail in” is a quantum leap beyond a “bail out.” When governments are no longer willing to use taxpayer money to bail out banks that have gambled away their capital, the banks are now being instructed to “recapitalize” themselves by confiscating the funds of their creditors, turning debt into equity, or stock; and the “creditors” include the depositors who put their money in the bank thinking it was a secure place to store their savings.

The Cyprus bail-in was not a one-off emergency measure but was consistent with similar policies already in the works for the US, UK, EU, Canada, New Zealand, and Australia, as detailed in my earlier articles here and here.  “Too big to fail” now trumps all.  Rather than banks being put into bankruptcy to salvage the deposits of their customers, the customers will now be put into bankruptcy to save the banks.

Why Derivatives Threaten Your Bank Account

The big risk behind all this is the massive $230 trillion derivatives boondoggle managed by US banks. Derivatives are sold as a kind of insurance for managing profits and risk; but as Satyajit Das points out in Extreme Money, they actually increase risk to the system as a whole.

In the US after the Glass-Steagall Act was implemented in 1933, a bank could not gamble with depositor funds for its own account; but in 1999, that barrier was removed. Recent congressional investigations have revealed that in the biggest derivative banks, JPMorgan and Bank of America, massive commingling has occurred between their depository arms and their unregulated and highly vulnerable derivatives arms. Under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured. In a major derivatives fiasco, derivative claimants could well grab all the collateral, leaving other claimants, public and private, holding the bag.

The tab for the 2008 bailout was $700 billion in taxpayer funds, and that was just to start. Another $700 billion disaster could easily wipe out all the money in the FDIC insurance fund, which has only about $25 billion in it.  Both JPMorgan and Bank of America have over $1 trillion in deposits, and total deposits covered by FDIC insurance are about $9 trillion. According to an article on Bloomberg in November 2011, Bank of America’s holding company then had almost $75 trillion in derivatives, and 71% were held in its depository arm; while J.P. Morgan had $79 trillion in derivatives, and 99% were in its depository arm. Those whole mega-sums are not actually at risk, but the cash calculated to be at risk from derivatives from all sources is at least $12 trillion; and JPM is the biggest player, with 30% of the market.

It used to be that the government would backstop the FDIC if it ran out of money. But section 716 of the Dodd Frank Act now precludes the payment of further taxpayer funds to bail out a bank from a bad derivatives gamble. As summarized in a letter from Americans for Financial Reform quoted by Yves Smith:

Section 716 bans taxpayer bailouts of a broad range of derivatives dealing and speculative derivatives activities. Section 716 does not in any way limit the swaps activities which banks or other financial institutions may engage in. It simply prohibits public support for such activities.

There will be no more $700 billion taxpayer bailouts. So where will the banks get the money in the next crisis? It seems the plan has just been revealed in the new bail-in policies.

All Depositors, Secured and Unsecured, May Be at Risk

The bail-in policy for the US and UK is set forth in a document put out jointly by the Federal Deposit Insurance Corporation (FDIC) and the Bank of England (BOE) in December 2012, titled Resolving Globally Active, Systemically Important, Financial Institutions.

In an April 4th article in Financial Sense, John Butler points out that the directive does not explicitly refer to “depositors.”  It refers only to “unsecured creditors.”  But the effective meaning of the term, says Butler, is belied by the fact that the FDIC has been put on the job. The FDIC has direct responsibility only for depositors, not for the bondholders who are wholesale non-depositor sources of bank credit. Butler comments:

Do you see the sleight-of-hand at work here? Under the guise of protecting taxpayers, depositors of failing institutions are to be arbitrarily, de-facto subordinated to interbank claims, when in fact they are legally senior to those claims!

. . . [C]onsider the brutal, unjust irony of the entire proposal. Remember, its stated purpose is to solve the problem revealed in 2008, namely the existence of insolvent TBTF institutions that were “highly leveraged and complex, with numerous and dispersed financial operations, extensive off-balance-sheet activities, and opaque financial statements.” Yet what is being proposed is a framework sacrificing depositors in order to maintain precisely this complex, opaque, leverage-laden financial edifice!

If you believe that what has happened recently in Cyprus is unlikely to happen elsewhere, think again. Economic policy officials in the US, UK and other countries are preparing for it. Remember, someone has to pay. Will it be you? If you are a depositor, the answer is yes.

The FDIC was set up to ensure the safety of deposits. Now it, it seems, its function will be the confiscation of deposits to save Wall Street. In the only mention of “depositors” in the FDIC-BOE directive as it pertains to US policy, paragraph 47 says that “the authorities recognize the need for effective communication to depositors, making it clear that their deposits will be protected.” But protected with what? As with MF Global, the pot will already have been gambled away. From whom will the bank get it back? Not the derivatives claimants, who are first in line to be paid; not the taxpayers, since Congress has sealed the vault; not the FDIC insurance fund, which has a paltry $25 billion in it. As long as the derivatives counterparties have super-priority status, the claims of all other parties are in jeopardy.

That could mean not just the “unsecured creditors” but the “secured creditors,” including state and local governments. Local governments keep a significant portion of their revenues in Wall Street banks because smaller local banks lack the capacity to handle their complex business. In the US, banks taking deposits of public funds are required to pledge collateral against any funds exceeding the deposit insurance limit of $250,000. But derivative claims are also secured with collateral, and they have super-priority over all other claimants, including other secured creditors. The vault may be empty by the time local government officials get to the teller’s window. Main Street will again have been plundered by Wall Street.

Super-priority Status for Derivatives Increases Rather than Decreases Risk 

Harvard Law Professor Mark Row maintains that the super-priority status of derivatives needs to be repealed. He writes:

. . . [D]erivatives counterparties, . . . unlike most other secured creditors, can seize and immediately liquidate collateral, readily net out gains and losses in their dealings with the bankrupt, terminate their contracts with the bankrupt, and keep both preferential eve-of-bankruptcy payments and fraudulent conveyances they obtained from the debtor, all in ways that favor them over the bankrupt’s other creditors.

. . . [W]hen we subsidize derivatives and similar financial activity via bankruptcy benefits unavailable to other creditors, we get more of the activity than we otherwise would. Repeal would induce these burgeoning financial markets to better recognize the risks of counterparty financial failure, which in turn should dampen the possibility of another AIG-, Bear Stearns-, or Lehman Brothers-style financial meltdown, thereby helping to maintain systemic financial stability.

In The New Financial Deal: Understanding the Dodd-Frank Act and Its (Unintended) Consequences, David Skeel agrees. He calls the Dodd-Frank policy approach “corporatism” – a partnership between government and corporations. Congress has made no attempt in the legislation to reduce the size of the big banks or to undermine the implicit subsidy provided by the knowledge that they will be bailed out in the event of trouble.

Undergirding this approach is what Skeel calls “the Lehman myth,” which blames the 2008 banking collapse on the decision to allow Lehman Brothers to fail. Skeel counters that the Lehman bankruptcy was actually orderly, and the derivatives were unwound relatively quickly. Rather than preventing the Lehman collapse, the bankruptcy exemption for derivatives may have helped precipitate it.  When the bank appeared to be on shaky ground, the derivatives players all rushed to put in their claims, in a run on the collateral before it ran out. Skeel says the problem could be resolved by eliminating the derivatives exemption from the stay of proceedings that a bankruptcy court applies to other contracts to prevent this sort of run.

Putting the Brakes on the Wall Street End Game

Besides eliminating the super-priority of derivatives, here are some other ways to block the Wall Street asset grab:

(1) Restore the Glass-Steagall Act separating depository banking from investment banking. Support Marcy Kaptur’s H.R. 129.

(2) Break up the giant derivatives banks.  Support Bernie Sanders’ “too big to jail” legislation.

(3) Alternatively, nationalize the TBTFs, as advised in the New York Times by Gar Alperovitz.  If taxpayer bailouts to save the TBTFs are unacceptable, depositor bailouts are even more unacceptable.

(4) Make derivatives illegal, as they were between 1936 and 1982 under the Commodities Exchange Act. They can be unwound by simply netting them out, declaring them null and void.  As noted by Paul Craig Roberts, “the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system.”

(5) Support the Harkin-Whitehouse bill to impose a financial transactions tax on Wall Street trading.  Among other uses, a tax on all trades might supplement the FDIC insurance fund to cover another derivatives disaster.

(5) Establish postal savings banks as government-guaranteed depositories for individual savings. Many countries have public savings banks, which became particularly popular after savings in private banks were wiped out in the banking crisis of the late 1990s.

(6) Establish publicly-owned banks to be depositories of public monies, following the lead of North Dakota, the only state to completely escape the 2008 banking crisis. North Dakota does not keep its revenues in Wall Street banks but deposits them in the state-owned Bank of North Dakota by law.  The bank has a mandate to serve the public, and it does not gamble in derivatives.

A motivated state legislature could set up a publicly-owned bank very quickly. Having its own bank would allow the state to protect both its own revenues and those of its citizens while generating the credit needed to support local business and restore prosperity to Main Street.

Source: MaxKeiser

Jim Sinclair’s Immediate Exit Warning

In the recent weeks the warnings have been coming more frequent but none so stark as Jim Sinclair’s warning to exit the System now because the financial Nazis are coming. Certainly the Cyprus debacle has lent an urgency, but for US citizens, it must be noted the bail-in-like powers are already in place as part of the Dodd-Frank financial reform act passed last year.

From SilverDoctors

Legendary gold trader Jim Sinclair sent out an email alert to subscribers over the weekend, advising investors that You must now act to exit the system!  Sinclair, who as recently as 2 weeks ago advised those attending his NYC meeting that investors have 2 years to withdraw their IRA and 401k funds from the system, has changed the urgency of his call significantly, stating:
You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.

Sinclair’s full alert is below:

You must now act to exit the system

 

Bail-in

(excerpt)

The US has already put in place bail-in-like powers as part of the Dodd-Frank financial reform act passed last year. The law includes a resolution scheme that gives regulators the ability to impose losses on bondholders while ensuring the critical parts of the bank can keep running.

Employees would be paid, the lights would stay on and derivatives contracts would not have to be instantly unwound.

Click here to read the full definition…

I have given my all to communicating the most important conclusions concerning your future financially and therefore on every level of life.

1. The operation to depress the gold price since the high was limited in time and is now behind us in terms of maximum pain for the bulls.
2. You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.

 

The saddest fact is that many of you have thrown away your gold share and bullion insurances to the enriched Bankster bullies. You will now pay no attention to the need to exit the system. It is as if you are moths attracted to the flame of danger, and a sloth in that you are too lazy to take the actions required to protect yourselves. If you do not pay attention to this interview you are going to sacrifice all you have worked to accomplish in your lives. Most certainly those that are planning any form of retirement are right now dancing on the head of a needle.

 Here are a few most important actions you, in my opinion, must take.

 Government sponsored retirement tax preferential retirement programs must realize that one of the IMF plans in Cyprus was to nationalize all retirement programs. That means steal your retirement funds and assets, replacing them with some form of future paper assuming Cyprus returns to solvency.

 You must, in my opinion, face whatever tax consequences there are and close your retirement programs. You are in clear and present danger of confiscation for questionable paper of whatever you hold in these type accounts. In a financial sense you are exactly what the ghettos in Germany and Poland were when they knew they should run but found any excuse possible not to do what was logically screaming at them to take action.

 I am screaming at you from every pulpit I can find, with no personal benefit that you must take various actions and take them now. The fact the IMF, a major international body, had the audacity to demand that Cyprus nationalize all it pensioners and confiscate large percentages of the account values should be like a flashbulb going off in your eye to wake you from your sheeple slumber.

 Bite the bullet.
Pay the tax.
Get your assets back.
Get out of the system.

 The next action you must take is to get as far away from social media, and the use of credit cards for everything because you are painting a picture for the tax collectors that are going to go ballistic in their effort to collect your money from you in order to create revenue for governments going broke, or who are already hiding the fact they are broke.

 It might take some effort, but stop your kids from informing the world of everything you and they have done on their social media. Computer based comparisons of family income to family activities will spur punitive audits when the apparent expenses are greater than the combined declared income.

 The revenues services of every country are cranking up their computer search programs to grab information. You must stop so freely providing information, and maybe bragging on social media to make others think your lives are better than they really are. You must turn off the switch on your children use of social media if they are still under your authority. You must suggest to your emancipated children that they are foolish in informing the world of every little thing that do in search of 1000 friends on social media that would not really give a damn if they had a problem.

 As an example of the new high tech snoops you are feeding with your credit cards and social media, research the following article.

 IRS High-Tech Tools Track Your Digital Footprints – Yahoo! Finance

– Charting and analyzing social media such as Facebook
– Targeting audits by matching tax filings to social media or electronic payments
– Tracking individual Internet addresses and emailing patterns
– Sorting data in 32,000 categories of metadata and 1 million unique “attributes”
– Machine learning across “neural” networks
– Statistical and agent-based modeling
– Relationship analysis based on Social Security numbers and other personal identifiers

  Click here to read the full article…  

 You must eliminate to the greatest degree possible all the agents between you and your assets.

 There is no question that leaving assets in street name with your brokers and bankers is a financial death wish. The preferred way of holding shares of stocks has always been in your own name as physical certificates. The second best method, but much better than street name, is to hold your shares in Direct Registration. Do not expect your banks, brokers or companies you are invested in to make it easy to get out of their system. They will fight you all the way, but you have to insist on your rights regardless of their refusal or false dire warning of negative circumstances when you succeed in demanding your rights. Most of it exaggerations of what is really minutia when it comes to protecting yourselves.

 Large credit balances in the form of banking accounts in CDs or in pure cash is now holding up a red blanket for the fighting confection bull of governments seeking your assets to hold off their financial collapse from their own spending sins of decades.

 We can discuss in open forum, face to face or in writing later what to do with your assets but right now, as Braveheart cried, they must have FREEDOM from the system. There is much more that needs to be done, but what you have here is what should be called first priority. This should be viewed as call to action. I have not been too much off the mark on calling the developments not only of the past 12 years, but for the entirety of my successful career of more than 50 years in finance.

 You ignore me at your own severe personal risk.

Source: SilverDoctors

Jim Rickards – Texas Wants Its Gold Back

Jim Rickards interview on Bloomberg regarding bi-partisan support for bill in Texas to take its gold back from the NY Fed.

Some key points:

• Prudent move in light of all the confiscation going on, most notably Cyprus.
• When all else fails, you deflate against gold (gold never changes in value, it’s just currencies go up and down)
• The US Government has a history of gold seizures, Texas doesn’t.
• 13 states have pending legislation to make gold legal tender in the US.
• With physical gold on deposit you can tell the Federal state get lost.
• There is a global re-monetization of gold ongoing.

Jim Willie – USDollar: Ring-Fenced & Checkmate

Jim Willies has posted an article which he claims is his most important yet. In it, Jim touches on concepts that others have discussed but he describes the end games for the US dollar as the power shifts from the West to the BRIC nations. The trade agreements are being set up, the BRIC bank will use US bonds to fund the infrastructure that will be needed. US Bonds will also be dumped by funding the gold purchases required to back the “new monetary system”.

The full article can be read at SilverDoctors, but I have outlined some of the interesting bits below.

An unstoppable sequence of events has been put into motion finally. The pressure has been building for months. Some themes are plainly evident, except to those who wear rose colored glasses in the US Dome of Perception. The USTreasury Bond will be brought home to the US and British banks, where it will choke its bankers, then be devalued for survival reasons, after a painful isolation. The Chinese and Russians will conspire to finance the Eurasian Trade Zone corridor foundation with USTBonds, held in reserve, put to usage. The British will play a very unusual role, selling out the United States in order to be squires to the Eastern Duo. The process has begun; it cannot be stopped. The events are already being grossly misinterpreted and minimized in the US press, where devoted lapdogs, artistic swindlers, and creative writers prevail. The Paradigm Shift eastward is showing its next face, with a truly massive trade zone for cooperation and reduced cost overhead as the giant foundation. The Untied States for all of its past hegemony and devious manipulations and vicious attacks, will be excluded. The British will assist in the exclusion in order to avoid the Third World themselves. The following blueprint is the result of years of planning, with steady information and hints and confirmations by at least two Hat Trick Letter sources. The sunset of the USDollar has a blueprint.

EURASIAN TRADE ZONE

The crowning blow is the financial centerpiece to the trade zone, which draws upon the critical mass bulk of the BRICS nations as nucleus. Together Brazil, Russia, India, China, and South Africa have begun to form an alliance built upon trade and economic development, forged by investment in infrastructure and its construction. Include Iran and Indonesia to welcome the new BRIIICS nations for a larger Eastern representation. The arterial system of the trade zone will be energy supply, the life blood of commerce. The Eurasian Trade Zone is being formed, with an energy foundation. Important bilateral pacts were made concrete in the last week. Supply of crude oil, natural gas, including LNG, will come from a vast system of pipelines from Russia to Central Europe and from Russia to China.

BRICS DEVELOPMENT BANK

Consider the BRICS Development Bank. It is so much more than a fund to build railroads in remote African locations, as the delusional US press reports. It will form the giant credit line for countless projects upon which trade will be conducted, often called infrastructure, but so much more. It will gradually reveal itself to provide a second function, a core bank for trade payments outside the USDollar sphere.

EXCLUSION OF UNITED STATES

The many years of abusive control of the FOREX currency markets, intervention in the sovereign bond markets, manipulation in the important commodity markets, devious propaganda in the communications networks, with support role played by the aggressive USMilitary and nefarious activity by its security agencies have guaranteed exclusion of the United States. The unspeakable abuse of the US$ credit card will end, as the global reserve currency is dismissed from its throne.

BRITISH BROKER ROLE & INTRIGUE

The British have an historical knack to remain on top of the bank center heap. Earlier this year, when they announced the launch of a Chinese Yuan Swap Facility in London City, they stepped on the New York neck

……

Both Bank of America and Citigroup are brokering a $55 billion deal that will enable Rosneft to become the world’s largest oil company. Several hidden messages are laden within the blockbuster global changing deal by Rosneft. By dissecting the flow, it is clear the BP executive staff is selling out, since not paying dividends. The collateral for the deal toward the loans will come from USTreasury Bonds.

……

Witness a potentially crucial London role in helping the Eurasian Trade Zone, perhaps buying favor to avoid the Third World. The broad exclusion of the United States guarantees a Third World flavor and stench for the North American core, with a Mad Max overtone and a Dachau closet.

DEVIOUS CYPRUS HIDDEN ANGLE

A piece of the financing for the Rosneft deal came from GazpromBank, which operates out of Cyprus. China has posted $30 billion in USTBonds as collateral within the massive deal, in return for ample future crude oil supply. Since Russia will receive a steady flow of payments from China from diverse energy pipeline supply, in the form of USTBond fund flow, the big debt to the London banks will be paid off by USTBonds. The payoff will be in the same terms of the huge collateral. Conclude that the Eurasian Trade Zone will have an energy pipeline and delivery system with loaded supply whose foundation is built upon USTBonds, sent back to the Anglo-American bankers to digest. The USTBonds are going home to die.

USDOLLAR HEGEMONY ENDING

The alternative system to conducting trade outside the USDollar system has had formative stages since the Lehman Brothers and Fannie Mae collapse. The Eastern trade leaders have been very busy quietly constructing a new system, with almost zero press coverage. They prefer to work in the background. Recent events indicate they have chosen the formal public stages and forums with wider visibility, starting with the February G-20 Meeting in Moscow. The true agenda for G-20 finance ministers was to hatch finally the USDollar alternative.  The sleepy West appears not to be paying much attention. The initiatives to construct alternative platforms were given a major thrust in the last year since the Iran sanctions led by the USGovt banker and their henchmen in London. For the last 20 years at least, trade has followed banking. Nations of the world have been coerced for three decades into holding USGovt debt securities in order to make payment in trade, most notably in crude oil. With the Grand Arab Recycling accord struck by the 1970 decade leaders, the Petro-Dollar was born in return for a fantastic higher oil price. The oil-rich Arab royalty supported the USDollar by recycling trade surplus into USTreasury Bonds. The conventional practice dictated that global banking systems be dominated by USTBonds in reserves, serving as the banking foundation of debt.

 

New chapter to turn. The ongoing endless QE to Infinity has hastened Eastern trade leaders. The near 0% return from USTBond yields has motivated them to seek alternatives. They are horrified by the debasement of their hard-earned reserves, filled to the gills with USTBonds of shrinking value and low yield. The new trade settlement system based in Gold finance will turn the tables, as once more trade is to dictate banking. The combination of central bank hyper monetary inflation, big US bank fraud, security agency $100 bill counterfeit, and rampant criminality in the US financial system has motivated the Eastern nations to act. They have acted. The clear outcome is that the Western banking system will topple, since the East will be shoving the USTBonds back to Anglo-American shores for cemetery treatment. Trade should always dictate banking. The major trade partners no longer want US$-based trade settlement. Watch for the crowning blow in the Saudi response soon, since they always follow the winners.

THE CENTERPIECE PLAN

The new BRICS development bank will surely be supplied with USTreasury Bonds at first. The primary seeding is obvious. The emerging nations have collected huge reserves from successful trade over the last decade, primarily held in USTBonds. They do not wish to hold them, since undermined and debased by their own steward at the US Federal Reserve. The big Eastern nations have committed $100 billion for the fund, whose liquidity lies in USTBonds. On a gradual ramp, the USTBonds will be converted to Gold bars for the core bank asset in the development fund. Some of the 6000 metric tons of Gold bullion removed from London banks by the Eastern entities from March to July 2012 might find their way into the BRICS Fund core. The initial role of funding critical important projects like pipelines, communication networks, railroads, shipping ports, ships & trucks, perhaps even energy transfer ports, will become clear. The more overarching role of forming a (Eastern) global core central bank clearing house for payment transactions will be its second dual role. The emerging nations have had their fill of the USDollar control mechanisms with the SWIFT bank structure, the Intl Monetary Fund steering committee, and others. Finally, Gold Trade Notes would be used in trade settlement. Witness the new Eastern Fed for trade settlement in Gold bullion. Better to call it the BRICS Development Fund, since a major Trojan Horse for excreting USTBonds through its rectum, the London Boyz busily catching it.

The Gold core will facilitate the purchase of Gold Trade Notes much like the common letters of credit used widely in commerce nowadays. Like the Eurasian Russian-Chinese energy foundation, the development fund will be built on the back of USTBonds in toxic discharge. In the process, expect extreme hardball, shoving the toxic USTBonds back into US and British banks, as collateral for huge loans, as funds for repayment of huge loans, as funds to purchase Gold. In the process, the COMEX with LBMA appendage will be drained of its Gold, a future default assured. The Western gold marts will be unmasked as corrupt dens of empty inventory shelves. What comes is a BRICS Development Fund which will serve as a quasi global gold central bank for the expressed purpose of facilitating trade settlement in Gold. This is hardly just a fund to finance African rail projects.

THE CHECKMATE

A checkmate is in progress. It has four important elements.

1)    The established Eurasian Trade Zone joins the massive Asian continent with a significant portion of the European continent, where three quarters of the world population resides. The trade zone has no visible presence or participation by either the United States or United Kingdom.

2)    The BRICS Development Fund will control a giant sum of $100 billion. It will eclipse the role of the Intl Monetary Fund. The fund will facilitate numerous infrastructure projects. However, its other feature will be the shocker, as its core is transformed into Gold bullion. The conversion of USTBonds to Gold will nail the coffin in the isolated USDollar, a topic of Jackass scribbles for the last full year.

3)    The flow of USTBonds will be from China to London, for financing the foundation of the Eurasian Trade Zone on its energy backbone with brisk energy flow. The collateral for large loans is to be USTBonds, as is repayment for loans to be USTBonds.

4)    The transition from Yuan-based trade settlement via the numerous Swap Facilities in barter trade with key nations, toward Gold trade settlement via the BRICS fund that will feature a gold core, will launch the new Gold Trade Standard. It will not be a banker dominated currency type of Gold Standard. It will instead be a trade settlement Gold Standard that bypasses the hegemony of the Anglo-American banking system, the SWIFT rules, the FOREX gaming, and the IMF/World Bank harlots that harbor insects.

………..

• The BRICS Development Fund is the main event, to build a railway to a dark place for the United States, ring fenced for its toxic USDollar. Gone will be the corrupted motivated tools like the IMF and World Bank, with even Western central banks of lesser importance. The BRICS Fund could be the Trojan Horse (much like ObamaCare) that permits a vast conduit to be built, a seemingly innocuous let permitted entrance through the door, which permits USTBonds to be dumped like the trash.

• The upcoming Gold purchases by the BRICS Fund might be coordinated with the Shanghai Metals Exchange, to exploit the artificial low London Gold price. A COMEX bust can be foreseen.

• The BRICS should be careful about the new undersea global communication cable system. In 2007, foul play resulted in the Iranian cable being cut, the result of cooperative action by the USGovt and the little ally on the Southern Med that looks northwest to Italy.

• The tipping nation is Germany, which has had its fill supporting the slower wasteful debt-ridden Southern European nations. After cutting the cord, they will embrace the Eurasian Trade Zone. Evidence is the numerous heavy rail facilities that begin in Russia and end in Germany for commodity supply. There are two Germanys, one with old corrupt ties to the West, another with traditional reliable ties to the East. The Western camp is given light by the press, while the Eastern camp works behind closed doors shaping the next chapter.

• The Eastern Alliance (often discussed in past Hat Trick Letters) is slowly coming into view. The Russian and Chinese corridor will serve as the commercial foundation. The BRICS Development Fund will serve as the backbone. When Germany joins in more overt manner, the Alliance will be clear on the geopolitical stage. Then comes the Saudis to join, complete with protectorate role already offered by the Eastern Duo giants, who together will announce the end to the Petro-Dollar defacto standard.

• The political rebellion movement inside Germany is slowly coming into view. They wish to return to the D-Mark currency and to discard the Euro, an experiment in disaster, waste, fraud, and ruin. The movement is gaining traction. Discussion of the Nordic Euro (aka Teutonic Euro) has been heard on an increasing basis among its tribal cousins. Germany will side with Russia & China, and join the next chapter, after shedding its PIIGS pen trash.

• Both Russia and China purchase all their domestic gold mining output. If truth be told, their gold reserves are multiples higher than the official data indicates. Neither nation has any desire to cooperate with such critical disclosure, much like national trade secrets. Both nations are ready for the next chapter, with a few years of preparation in new modern systems, platforms, wiring, and gold held in reserve as core wealth.

• The ABN Amro news of halted gold delivery speaks volumes to the absent inventory linked to the corrupted London gold market. They have no Gold in inventory. They control the Gold price with paper leverage and suppressive techniques. This news halt out of the Netherlands should be viewed in context of the Germans, Dutch, and Austrians demanding their gold in repatriation. London has none. What gold bullion they do obtain comes from urgent shipments from the Roman Catacombs and the Basel hills of Switzerland.

• The nations across the entire West have citizens deeply worried about their savings wealth stored in the banks. They are beginning to realize their accounts are legally considered as bank liabilities subject to heavy loss upon bank failures. They will begin to remove the money from bank accounts in droves, but with capital controls imposed.

• The Cyprus bank account tax is the latest ignored shock wave warning to the West. It is described as a small tax to assure bank solvency, but it is a vicious transfer from sovereign source to depositor private source in funded bailouts. It is confiscation. The 2005 Bankruptcy Law in the US gave away the plan, with savings deposits subordinated under derivatives. The MF-Global episode has not resulted in much learned. It was the first test ride of the subordination rules in the new law. The Jackass warned in early 2012 of an MF-Global event for bank accounts and stock accounts. The event is coming very soon, but the public is very sleepy distracted and dulled.

Source: Silver Doctors

Jim Willie: The Collapse Is At Our Doorstep

Jim Willie is not one for holding back and in his latest interview with Silverdoctors sums up where the global financial system currently stands. With each passing week the situation worsens. Willie see a global financial collapse now close at hand and the endgame will be triggered by a small-medium sized bank failure in Europe.

The European collapse will ignite a global Gold rush as the only remaining safe haven ultimately ending  USdollar as worlds reserve currency.

  The Doc began by asking the Golden Jackass what will most likely be the trigger event for a complete systemic collapse:

 I don’t think we’re going to see a default as a trigger event in gold or silver. I didn’t say we won’t see a gold and silver default, I said that it won’t be the trigger. There are just too many deep sources for gold that the central banks have access to. I refer to Basel Switzerland, the Roman catacombs, and the BOE, I think they’re pretty close to the bottom of their gold barrel, but they have big powerful friends in Rome and Basel Switzerland.

The trigger is not even going to come from within the US, because it’s just so controlled- the markets are being controlled from multiple different centers, in particular the Federal Reserve and the Treasury Dept, JPM, Goldman Sachs.

It’s just so corrupt to the core, and we’re seeing a blossoming of the fascist business model and the corruption that’s accepted.

Attention should be drawn to Europe. Look at some of the most recent events that are really quite staggering.

The Italian elections kicked out the GSax preppy Mario Monti. I’m surprised that he’s not being thrown off a palace balcony. It’s directly in response to hikes that Monti imposed on property tax to finance the bankers! The Italian people have a much more effective political system than the US!

Italy actually has elected a comedian! This is like electing John Belushi to form a coalition government! Mario Monti is on the way out. What does that mean?

The defense of their dead banks with liquidity lines and property tax hikes will end in the near future!

In Spain you have new high level financial corruption events that have paralyzed the nation at a time when they’ve already seen a string of big financial firm failures!

This at a time where they have 25% unemployment. I think that the likelihood of violence on the streets is greater in Spain than in any other country.

Spain’s bank insolvency and wretched unemployment is causing tremendous distress, and there will be a breaking point there.

Then in France you have Hollande, the leader of the socialist clowns has raised the highest tax brackets to 90%. The resulting capital flight to Scandinavia is astounding, leaving the nation extremely vulnerable.

Then you have the German economic slowdown which is really capturing some attention, which will remove ability and patience of bank rescues.

Then you have the London banks which are joined by French banks in broad deep exposure to Southern Europe. They’ve set themselves up to have their heads cut off.

Recall that the Draghi solutions like LTRO were recently insulted by debt downgrades, which was unprecedented.

Then you have the USFed, which is the only buyer of USTBonds, and the Euro Central Bank as the only buyer of PIIGS Govt Bonds.

Here is a note as to the stress in the system: the European banking system received $1.2 trillion in Dollar Swap funds from the NY Fed in January alone to prop up the ECB banking system.

European banks are collectively much larger than the US banks, but are in suspended animation while the US banks are being supported by narcotics money laundering.

A big European bust is coming. When the European bust events occur, the mad scramble for safety will be on, and they’re not going to be looking for Switzerland any longer because of their Euro peg. A massive rise in the European gold price is coming and it will be staggering, shocking and not reversible. It will ignite a global Gold rush, a massive short covering rally, and powerful 30% to 50% rise in the gold price will come in response to the European collapse.

Following that will come the arrival of the Gold Trade Finance platforms. Gold settlement for trade across the world- primarily though coming out of the East.

In other words, trade involving two parties not involving the US, one of them being an Eastern nation, and they will settle not in dollars anymore, they will settle in gold, and they will have some help from their friends in Turkey.

We’re going to see an end to the USDollar reserve status following these events, and the funeral will have a speech given by the Saudis to bring an end to the Petro-Dollar itself.

You have to look to Europe and not to the US, the US is a joke in regards to crisis, management, propaganda, the ESF, narcotics money laundering, sponsored fraud, it’s just unbelievable what’s going on in the US, it’s not going to be the trigger, the trigger will be Europe.

We have 15 to 20 potential sites to force the breakdown. It’s not just one or two. Every couple months there are a few more potential areas to cause the breakdown. That’s very, very dangerous, and new. We didn’t see that 3-5 years ago. Back in 07 it was really just sub-prime. We have about 12 different areas now which are just as dangerous as sub-prime, and both of them are in Europe.

 

With QE4 and the recent return of NINJA loans as the Fed attempts to re-inflate the housing bubble, The Doc asked Willie whether the Fed would be able to kick the can down the road one more time with one last bubble:

They have 15-20 fingers and toes, but there are just too many different areas that they need to plug.
This real estate bubble is a joke.  There’s no new bubble coming or even on the horizon.  What we’ve got is the US government has sponsored a whole new round of sub-prime mortgages.  Expect instead of the big banks underwriting them, it’s the Federal government.  We have not seen a rebound in demand for housing, even though the 30 year mortgage rate is under 4% and has been for quite a few months.

What’s not shown in the press is that there’s still 10 million homes that are sitting on the bank balance sheets.  They’re called REO’s, and they’re selling their REO’s or short sales, which ARE NOT INCLUDED IN THE CASE SHILLER INDEX! 

It’s a parallel of the discouraged workers no longer included in unemployment!  They’re bringing labor market calculations to the housing market.  They’re not going to revive the housing bubble for a simple reason- there’s not widespread finance available, it’s exclusively coming out of the FHA.  The other reason is that people have a great distrust for buying homes after they saw so many people foreclosed on.  Another reason is that the people don’t have brisk income.
The factors are not there, it’s kind of a lunatic claim to state that the housing market is going to be re-bubbalized.  Not even close, it’s stuck in a depression!

 

 

The Doc asked Jim whether we face a lost two decades like the Japanese, or what type of collapse we face in the US:

 

I said this back when Lehman Brothers fell in the autumn of 2008.  The US is on a path that cannot escape systemic failure and total dependence on the printing press to cover its debt and for a debt default of the US government debt, which will come in the form of a global conference to organize and co-ordinate the debt write down.  There will be US military outside the room to make sure everyone complies.

If the US goes ahead with sequester cuts, they’re talking about $4 trillion over 10 years.  I cannot emphasize how small that is.  But let’s go through some of the points why I believe the collapse is at our doorstep:

The collapse is happening now- it’s no longer ultra-slow motion like 2 years ago.   It’s a new event every few days or weeks.  The pace is quickening.   

The extreme nature of current events is alarming.  Just in the last few months:

The US Fed announces every month their extension of 0% forever (denigrating their own exit Strategy talk).

 $1.2 trillion was doled out by the USFed to European banks in January alone!

We have the Germans demanding repatriation of their official gold account (Allocated Accounts).

We have the Italians electing a comedian like John Belushi to halt the property tax hikes that bail out banks.  This is an insult to their entire political system which experienced that Mario Monti appointment without an election.

We have the London banks recently sponsoring a Chinese Yuan Swap Facility, cow-towing to Asia.  This is unprecedented!  New York will not do such a thing, but London did, which means that London and NY might be at odds!

We have an attack announced on Mali in North Africa to wrest gold & uranium timed when the  Germans asked for repayment of their gold reserves.  The quantities really fit.  There was a suspicious comment by the French and British saying it will be repaid in 7 years.  300 tons over 7 years is approximately what Mali produces in gold that will cover almost exactly the German repayment.  That was organized by France and the US. 

We have the shutdown of the gigantic Mongolian copper & gold mine by Rio Tinto which is an example of resource nationalism. 

We have raids larger and bolder of the GLD inventory that prevents a COMEX default and will produce a bigger price discount vs. the spot for GLD shares.  I think it will go down towards a 20% discount, which will cause alot of problems. 

We have the USFed preparing for QE5 (or rather QE187, as in QE to Infinity). 

We have events like the major central banks losing credibility while engaging in open currency war.  The franchise system of central banks is being questioned.  They’re in battle with each other. 

We have the US facing a fiscal cliff, which forces a quantum leap in job cuts (recession alert).

We have the Japanese ratcheting up the competitive currency devaluations (only USTBond buyer).

We have the Swiss managing their Euro-Franc peg, but suffering losses in Japanese & British bonds.

We have the Russians hosting a G-20 Meeting to coordinate the alternative to US$-based trade.
THEY ARE NOT GOING TO CONTINUE WITH DOLLAR BASED TRADE SETTLEMENTS!  NOT GOING TO HAPPEN!!

We have the emergence of Turkey and soon India as gold trade finance intermediaries.  They’re going to supply 1 of 2 parties engaged in trade with gold so they can make the settlement of the trade. 

We have the Iranian sanctions coming to a conclusion in US acquiescence.  The US is surrendering to the Iranians! 
All these events have occurred just since the new year began less than two months ago!  The pace of extreme events is quickening!

Extreme events have become the norm, putting tremendous additional stress on the system which the boys are trying to manage.  They don’t have enough people, enough resources, enough channels, and they don’t have enough brains to do it.

The managed system cannot succeed, it’s too complex.  They are attempting to work towards a system of total system management, and it’s just not going to work.

A series of climax events is coming very soon.  The changes will be rapid and breath-taking. 

Vast wealth has been moving East the past 3-4 years, and with it great power. 
Look for some seemingly minor bank failure to cause a ripple effect of deeper damage. 
It’s going to involve larger banks tied with commitments such as counter-party contracts or intermediary supply functions, and things are just going to start wrecking. 

I think vast wealth is going to be lost in the US and the West, except by gold and silver owners. 
Owning gold and silver will become harder to do because the rules are becoming stricter.
Those who have set themselves up in the last few years are going to be the big, big winners, and the ones who are bold enough and brave enough to do it now are going to be glad for their actions. 

I have a family member who refused my advice three years ago, and now that family member is facing the conversion of her very large privately managed IRA pension fund into these new special Treasury bonds.  That’s going to cause a real firestorm by the public, and they’re going to wish that they had converted their IRA’s into a gold account.

Source: SilverDoctors

How Much Money Laundering Do You Have To Do Before You Are Shut Down?

After HSBC getting a minor slap on the wrist for money laundering nearly a billion dollars for drug cartels and ignoring sanctions against countries, Senator Warren asks the question at a Senate Banking Commitee, “how much money laundering does a bank have to do before its shut down?”

So How Big Are American Banks?

It would come as no surprise to anyone that the US’s largest banks use dodgy accounting practises to hide a multitude of sins. The following from Washington’s Blog explores the myth that American banks are much smaller that their european counterparts. Truth is, they are much better at hiding under the existing US accounting standards. Were international standards to apply, the banks may actually be twice the size they claim to be.

When Internationally-Accepted Accounting Methods Are Used, American Banks Are the World’s Largest

We have extensively documented that failing to break up the big banks is destroying America because:

• The size of the big banks is – literally – destroying the rule of law

• Their size allows them to rig the market (and act as criminal enterprises)

• They aren’t interested in making loans to Main Street, and their control over the banking system prevents smaller banks from making such loans

• We don’t need the big banks

• The failure to break up the big banks is dooming us to economic downturn

In the face of such overwhelming criticism, apologists for America’s largest banks say that they are smaller than their European and Asian competitors … and that they have to be big to compete.

Current Vice Chair and director of the Federal Deposit Insurance Corporation – and former 20-year President of the Federal Reserve Bank of Kansas City – Thomas Hoenig destroyed that argument earlier this month.

Specifically, Bloomberg reports:

Warning: Banks in the U.S. are bigger than they appear.

That label, like a similar one on automobile side-view mirrors, might be required of the four largest U.S. lenders if Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., has his way. Applying stricter accounting standards for derivatives and off-balance-sheet assets would make the banks twice as big as they say they are — or about the size of the U.S. economy — according to data compiled by Bloomberg.

“Derivatives, like loans, carry risk,” Hoenig said in an interview. “To recognize those bets on the balance sheet would give a better picture of the risk exposures that are there.”

U.S. accounting rules allow banks to record a smaller portion of their derivatives than European peers and keep most mortgage-linked bonds off their books.

***

Using international standards for derivatives and consolidating mortgage securitizations, JPMorgan Chase & Co. (JPM), Bank of America Corp. and Wells Fargo & Co. would double in assets, while Citigroup Inc. (C) would jump 60 percent, third- quarter data show. JPMorgan would swell to $4.5 trillion from $2.3 trillion, leapfrogging London-based HSBC Holdings Plc and Deutsche Bank AG, each with about $2.7 trillion.

World’s Largest

JPMorgan, Bank of America and Citigroup would become the world’s three largest banks and Wells Fargo the sixth-biggest. Their combined assets of $14.7 trillion would equal 93 percent of U.S. gross domestic product last year, the data show.

***

U.S. accounting rules for netting derivatives allow banks to erase about $4 trillion in assets, the data show. The lenders also can remove from their books most mortgages they package into securities, trimming an additional $3 trillion.

Off-balance-sheet assets and derivatives were at the root of the 2008 financial crisis. Mortgage securitizations kept off the books came back to haunt banks forced to repurchase home loans sold to special investment vehicles.

***

The U.S. Financial Accounting Standards Board and the International Accounting Standards Board pledged a decade ago to converge the two bookkeeping systems. After six years of meetings, they remain divided. Proposed rules for how much money banks need to set aside for loan losses may make European and U.S. lenders even less comparable.

***

“Having no uniform standard is challenging for issuers and users,” said John Hitchins, head of U.K. banking and capital markets at PricewaterhouseCoopers in London. “Analysts and investors can’t compare companies’ financials across borders. Banks have to prepare multiple versions of their financial statements in different countries where they have units.”

***

If the banks used international standards for derivatives and consolidated mortgage securitizations, the ratio for JPMorgan and Bank of America, the two largest U.S. lenders, would fall below 4 percent. It would be just above 4 percent for Citigroup and Wells Fargo.

That would make the biggest U.S. banks look no better capitalized, or worse, than European peers such as HSBC at 5.6 percent or France’s BNP Paribas SA at 3.9 percent at the end of last year. It also could require them to raise more capital. Spokesmen for all four banks declined to comment.

***

“The U.S. leverage ratio doesn’t capture off-balance-sheet risks,” said [former FDIC boss] Bair, now chairman of the Systemic Risk Council, a private regulatory watchdog. “Once U.S. banks start publishing the new Basel-mandated ratios, more off-balance-sheet assets will become obvious.”

***

Bair said she favors raising the simple capital ratio as high as 8 percent. Hoenig, the FDIC vice chairman, has called for 10 percent. U.S. regulators are still debating how to implement the rules. Because Basel isn’t an international treaty, each country needs to adopt its own version.

***

Progress on common standards slowed after Mary Schapiro became SEC chairman in 2009 and faced lobbying by companies opposed to what they said would be costly accounting changes, according to four people with knowledge of the discussions who asked not to be identified because the talks were private.

***

After failing to agree on common standards for derivatives netting and consolidation of securitizations, rule-setters are now heading in different directions as they debate how to account for loan-loss reserves.

Source: Washington’s Blog

The One People’s Public Trust’s (OPPT) UCC Filing of Foreclosure

I have been researching this topic for a number of years now by never posted on it until I recently started to see it come more mainstream. Max Keiser ran a piece regarding the Uniform Commercial Code (UCC) filing by The One People’s Public Trust (OPPT) pointing a story in the Guardian Express. The background to all this is all English-speaking countries use the Common law system. Put simply there needs to be a victim to your crime. Governments have implemented taxation and administrated their own system using commercial laws (Admiralty law) whereby a person through their ignorance cedes their power to commercial courts. In other words, taxes are voluntary. One explanation is

Unfortunately, the actual law, the common law has been usurped by another system run by the legal industry and supported by the mass media – civil law which is ALL commerce based. We are compelled to live under Admiralty Law or the law of the sea without even realising it ! And without realising that all commerce is based in the concept of bilateral contract. Think about this. Because you won’t read it in newspapers and you won’t get it from the mass media. Thus all statutes and ALL Acts of Parliament (I repeat, ALL Statutes and ALL Acts of Parliament from Parliament) are only given the ‘force of law’ by the individual consent of the governed. They are NOT THE LAW OF THIS LAND. PARLIAMENTS DO NOT MAKE LAWS. Stop believing the nonsense ! You are tricked into commerce because the legal system of this nation has devised a language of its own called LEGALESE – the language of a Society called the Law Society. Legalese is nothing but the forked tongue of COMMERCE. You unwittingly contract with the state without even realising it and because ignorance is not a defence, you sell yourself into slavery.

Astonishing as this story is, I did manage to gather some proof to this. Dun & Bradstreet maintains a database of over 213 million companies globally. I did a search and managed to find many Irish government departments themselves are registered as corporations. Indeed, Ireland itself is a corporation. Many groups have set up in recent years including the lawfulrebellion.org in the UK which aim to awaken people.

The Guardian Express has reported on an open letter by The One People’s Public Trust (OPPT) to the Swedish Government as follows :

The members of a group calling themselves The One People’s Public Trust (OPPT) have been in the news lately, because of  recent UCC filings, with regards to the Uniform Commercial Code (UCC).

The UCC is not a U.S. law, rather a uniform code of conduct for Intra-State and Global commerce, drafted and approved by private organizations, to be enacted by the individual U.S. States, and World Governments.

It has been approved by all 50 States in the U.S., Washington, D.C., The Commonwealth of Puerto Rico and The U.S. Virgin Islands, as well as all major World Governments.

What follows is a Press Release of a letter sent to the Prime Minister of Sweden, Fredrik Reinfeldt.

>>>Press Release – For Immediate Distribution<<<

Prime Minister Fredrik Reinfeldt,
Regeringskansliet
103 33 Stockholm

February 20, 2013

Open Letter to the Prime Minister and the Ministers of THE GOVERNMENT OF SWEDEN

Dear Prime Minister Fredrik Reinfeldt,

I am writing this letter to you to inquire about a very pressing issue, an issue that touches every human being on this planet, at this very moment.

I stand in my honor before you. My request to you has no other motive but my human desire to uncover the truth, and bring remedy and hope to the rest of my broken hearted brothers and sisters.

It has recently come to my attention, that we, the people of this beautiful country, had a corporate government. This implies that we actually did not have a government serving the needs of its people but a corporation, acting as a government.

*SEC lists SWEDEN KINGDOM OF as a corporation.

The difference between the real, active and lawful government and the corporate government that was operating in its place is enormous. We the people, had, by an act of deception, become commercial commodities; our lives had a monetary value to the corporation and we were considered cargo or chattel. Our personal possessions could be seized from us, our children taken from us, our lives lost and our dreams stolen by it.

We belonged to the CORPORATION. We were its slaves.

This is very important information for all of us; information that we the people of this planet are waking up to.

~~

On December 25th 2012 the world changed, but not the way we were told it would though. No cataclysmic destruction, no planetary upheaval, no “End of the World” prophecy came true. Still, the world has changed more than anyone could ever imagine, let alone dream of….

After long years of legal investigations, through a series of UCC filings, and an extensive list of legal notification processes, all the corporate entities around the world were foreclosed upon and duly notified on December 25th 2012 by the One Peoples Public Trust (OPPT).
As the only Law that governed our legal systems was Corporate Admiralty-Maritime Law (Law of Water or Law of Commerce) and not Common Law (Law of the land and the people) these corporate judiciary systems are now foreclosed upon as well.

Since late December 2012 millions of people around the world have been introduced to our new Trust. All of us, including you, are the beneficiaries of this Trust. The funds that were kept in “safekeeping” for the people of this planet by the corporate commercial entities are now being kept for us by the One People’s Public Trust (OPPT).

Every man, woman and child of this world can now step out of the old slavery system that kept us in lack, ignorance, fear and injustice, and finally walk into the new era of personal freedom, abundance, love and compassion.

I know of hardly anyone who enjoyed the old world of oppression, control, poverty and war; the world where the biggest danger to the well-being and the freedom of the people were often their own governments; the world where a self-selected few had the power to control by fear, intimidation, theft, murder and torture the people they were supposed to protect, serve and help.

That world is today in its last, dying days….and it is better this way……

We have reached the end of this mad, destructive and cruel parody. For the first time ever, we are legally free as the divine beings that we truly are, and not the commercial commodity that we had become by the force of deception by a few.

With joy in my heart, I notify you today, that the time of slavery and blind obedience to any and all “authority” and the use of force towards any and all peoples for the purpose of control, be it financial, spiritual, physical or any other, in order to obtain profit, power and dominance over our Divine and Universal rights, is now over.

We, the inhabitants of this planet, are now legally free, equal and abundant!

I urge you to read the attached material. You, along with the rest of us, stand to benefit immensely from this historic change…. in every way imaginable!

For every man and woman alive, there comes a moment when the biggest choice in life has to be made, the choice that will forever change the stream of events to follow.

We all recognize when such a moment is upon us. We are defined by its presence and power. Sometimes our awareness of its might and its consequences isn’t immediate but the result of a rather slow process that ends with a complete transformation and the final awakening to our true essence.

This moment is here now… for all of us. We get to be the generation with enough courage, knowledge, compassion, love and understanding to make this historic leap from darkness into the light, from “reason” to “heart”, from service-to-self to service-to-others.

This letter is to let you know that this historic moment of choice has now arrived for you as well.

My humble request is that you read carefully the attached documents and become acquainted with their authenticity, the love for each of us conveyed in them and the poetry of the manner by which we have all been liberated from our collective imprisonment, be it physical, spiritual, intellectual, financial or moral.

I invite you to join the rest of humanity on this path to love, compassion, freedom, abundance and endless co-creation. Take a long, close look at all of us, including yourself, and your personal struggle towards the betterment of this fragile but beautiful world and see the future that now stands ahead for us all.

Isn’t it glorious!

Come and join us. The world is waking up to our true nature and unlimited potential. There is nobody else who can give value to us and our experience but us.

We now have a permanent legal standing which enables us to turn away from the slavery system and we humans, the incredible beings of unbelievable potential and grace, finally get to dream the dream and build the kind of world that we want to leave for future generations, with pride and a true sense of accomplishment.

The wave of freedom is now visible on the horizon. The veils of the sad, dark and cruel illusion that dominated us for thousands of years are lifting and the bright light of the dawn of the new era is shining upon us! For the first time in history we can dream the dream that our brothers and sisters of times long gone never dared.

The corporate system in which a divine human was a commercial commodity is no more.

The old corrupt entities are falling and their grotesque symbols are being swept away along with them.

History scholars will try to explain the insanity and cruelty that ruled by force throughout the long centuries of suffering and bloodshed. They will try to understand why humanity accepted such abuse of the weak by the force of the strong.

They will find no answers to our history of madness….
.
You will be making a choice now along with the rest of us. This choice stands to affect you and us equally.

I ask you to take time and to listen carefully to that silent voice inside your soul. Only the most attentive of us ever get to hear it. Only the best of us will heed it.

Ask yourself under what liability you will be acting from now on and in whose and what authority.

What “laws” do you intend to enforce from now on and in whose name?

What “authority” do you serve and who do you represent?

The end of this story is now becoming clear and known to more and more of us. Let us hope that the decisions taken from now on by you, and all of us, in light of this historic action taken by the One People’s Public Trust 1776 (OPPT), will be made in accordance with this legally and lawfully enforceable act.

From this moment onward, your actions, as well as the actions of every human being alive on this planet, now and in the future, will carry with them complete personal responsibility and liability as we begin to act in absolute truth, aware of who we really are: divine beings with equal rights and obligations towards one another in perpetual freedom to create.

Endlessly.

Forever.

I invite you to join the rest of us during these historic times. I extend to you my hand in invitation to become part of the solution and not part of the problem; part of the momentous act of the creation of the new world and not part that supports the old, sad, dark world that is no more….. It is no more.

With all my honor, respect and love, I stand in truth and I salute you,

With the utmost sincerity,

Oliver Troll

SEC (U.S. Sequrities and Exchange Commission) Corporate Registered Number
0000225913 SWEDEN KINGDOM OF SIC: 8888
Business Address: Box 16 306
Riksgäldskontoret
103 26 STOCKHOLM
Sweden

http://www.sec.gov/cgi-bin/browse
________________________________________________________________________
Links to the original documents: http://peoplestrust1776.org/ <<<

It remains to be seen what happens but my guess is it will be ignored by governments and the MSM but maybe a few more people will have awakened to how the system really works.

Sources:

1.  Max Keiser
2. Guardian Express
3. The One Peoples Trust
4. Dun and Bradstreet

 

 

Peter Schiff: Its Going To Hit The Fan In Obamas 2nd Term

Peter Schiff’s interview with Varney on Fox.

• Gold is consolidating in preparation for another big move up.
• People are getting complacent and think things are getting better, but that’s only because governments are printing money. People will soon start to see the inflation.
• Japan will start to see high rises in inflation.
• Inflation is the new monetary policy for CBs.
• Markets are currently blindsided and won’t see inflation until it gets much worse.
• CPI numbers are phoney and designed to hide inflation.
• Bond bubble will eventually burst and that money will chase real goods.
• Would be shocked if there wasn’t an explosive move up in gold in next 2-3 years.
• It will hit the fan in Obamas 2nd term  – Currency crisis & Sovereign debt crisis.

This Time Its Different

ZeroHedge posted the following chart looking at the relationship between ISM new orders and unemployment rates. Of course this time its different 😉

American Serfs

After the property crash, Wall Street and big companies such as Blackstone Group are buying up foreclosed houses on the cheap and renting them back at a huge profit. Trends in the US show more and more people are moving towards rental rather than owning as the way forward into serfdom.

And as we mentioned on Friday, Americans continue to turn into “neo-serfs.”

“Wall Street is running a new profit game,” writes Shabnam Bashiri at Salon.com, “by buying foreclosed houses and renting them back to their former owners.”

Yes… nice business. Even better than it looks. It’s why the rich get richer… and the 1% are way ahead of the other 99%. Writes Bashiri:

Every day, it seems a new report comes out praising the ongoing housing recovery. In Georgia, home prices are up 5% over last year, a year in which we also had one of the highest foreclosure rates in the country. Seems a little odd, doesn’t it? Don’t foreclosures usually drive down the market?

That’s because the housing “recovery,” as they’re calling it, is fueled almost entirely by Wall Street private equity firms, hedge funds and the Fed’s unwavering support. After creating a massive bubble in home prices that eventually burst and caused our economy to go into a tailspin, these guys have decided to come back for more and figured out a way to profit off their destruction — by turning foreclosed homes into rentals and securitizing the rental income…

The Blackstone Group, the biggest player in the new REO [real estate owned] to rental market, has spent $2.5 billion in the last year purchasing 16,000 homes, a number that amounts to over $100 million per week.

Property records show that many of the homes Blackstone has acquired in Fulton County over the last few months were purchased on the courthouse steps at the monthly foreclosure auction, or through short sales — when a lender agrees to accept less than the amount owed on a loan. The vast majority of these homes are not empty, but occupied by homeowners who fell behind during the Great Recession…

Gone are the days of calling up your landlord to let them know rent will be there on the 7th instead of the 1st this month. As more and more Americans live paycheck to paycheck, and wages continue to decline or remain stagnant, paying rent a few days late could lead to a negative credit score, impacting their ability to secure resources and move up the ladder of the middle class.

“Paycheck to paycheck.” That’s the way serfs live. In someone else’s house. On someone else’s money. Often driving in someone else’s automobile. And sometimes even sitting on someone else’s furniture.

Got a health problem? Oh, yes — check into someone else’s health system.

Want an evening out at a restaurant? Put it on a credit card; let someone else pay for it.

Serfs don’t necessarily live poorly; they live badly. Because they’re not in control of the resources they need to live well. They are dependent, not independent.

We saw an ad for a new Smart car. “Just $199 a month,” said the ad.

People don’t own cars anymore. They just lease them… or not even. A lot of young people use Zipcar — a car-sharing service by which you “rent” a car using your iPhone. You never go to a rental agency or see a rental agent. You get a code via iPhone. You use the code to unlock the car. Easy. Peasy.

Some young people we know don’t own anything. They say it’s “liberating.” But that is something else. Not owning anything can be a smart financial strategy. But not owning a house because it was foreclosed… and not owning a car because you can’t afford one… does not sound very smart.

The Suits Take Over

You want a smart financial strategy?

Look at Blackstone. One of the houses it bought — probably much like the others — was bought for $90,000. It has a mortgage on it of $200,000. The former owners are still living in it. Instead of a mortgage, they’re now paying rent. Now they’re serfs.

Do the math. If they bought the house in 2005, they probably had a 6% mortgage. Six percent of $200,000 is $12,000. Add in another, say, $3,000 in amortization and charges… and they probably had a monthly payment of about $1,250.

Now the suits take over. Thanks to the conniving of other suits at the Fed, they are able to borrow 30-year money for about 3.5%. Let’s add another $10,000 to their purchase price (closing, taxes, maintenance) to make the math easier.

That gives them a monthly capital cost of less than $300 per month. And because these guys have big hearts as well as big wallets, they reduce the renter’s monthly payment to only $1,000.

Everybody comes out ahead. The former homeowners don’t have to move. They save money each month. And Blackstone — which may have only about $10,000 of its own money in the deal — earns (are you ready for this?) as much as $6,000, net, per year. That’s about a 60% rate of return on its cash.

But wait. It gets better. Because Blackstone is not counting on a real bull market in housing. Nope, the geniuses at Blackstone are making a big bet on interest rates.

At no extra cost, they have gotten a free “put option” on the bond market. That’s right: They’re short the bond market in a major way. When bond prices finally fall (perhaps this process has already begun), Blackstone is going to get another big jackpot.

And this payoff is practically guaranteed. Blackstone’s got its money-printing friends at the Fed to make sure it happens.

Indeed, Bloomberg ran a story of Hughes the billionaire who made his money from renting storage is now only second to Blackstone for renting homes in the US. Its a trend thats catching on.

B. Wayne Hughes, a sharecropper’s son who became a billionaire pioneering warehouses for Americans needing storage space, is buying thousands of houses to rent as more people find homeownership out of reach.

Hughes, 79, has purchased about 10,000 properties through his American Homes 4 Rent, making the Malibu, California-based firm the second-biggest owner of single-family rentals after Stephen Schwarzman’s Blackstone Group LP. Hughes is using $600 million from the Alaska Permanent Fund Corp. and other fundraising to buy real estate, mostly at foreclosure auctions, according to Paul Saylor, chairman of CS Capital Management Inc., who advises the Alaska fund.

Hughes founded Public Storage 40 years ago and turned it into the biggest storage-rental company in the world. Now he’s competing with an expanding pool of institutional buyers and individuals seeking low-priced properties in regions hardest hit by the housing crash. The firms are helping to drive the recovery, with home prices rising in December by the most since 2005, even after a record level of foreclosures makes it harder for millions of Americans to qualify for a mortgage.

The Alaska Permanent Fund’s joint venture with American Homes 4 Rent has spent $750 million to purchase about 4,500 of Hughes’ 10,000 single-family houses, according to Michael Burns, chief executive officer of the $44.8 billion Alaska fund, which invests state oil royalties that have financed annual dividends for Alaska residents since 1982. The American Homes 4 Rent venture should yield unleveraged returns of 6 percent to 7 percent from rents, before home prices and rents rise, according to Burns. By comparison, high-yield, high-risk company debt, or junk bonds, are yielding about 6.6 percent.

Alaska picked Hughes for the venture even though his background was largely storage, because “nobody has a track record in this space,” Burns said in a telephone interview from Juneau, Alaska. “Public Storage’s assets seemed to be the closest.”

…….

Rental Need

The need for rentals has increased after more than 5 million homeowners lost their houses since prices peaked in 2006, triggering the worst recession since the Great Depression, when Hughes’ family fled Oklahoma. The U.S. homeownership rate fell to 65.4 percent at the end of 2012, matching the level last seen in 1997 and down from a peak of 69.2 percent in June 2004, the Commerce Department reported.

Mortgage availability has also become more restrictive after lax standards fueled the housing boom and crash. Borrowers whose loans for purchases closed in 2012 had an average credit score of 740, according to data compiled by real estate data service CoreLogic Inc., up from 716 in 2006.

“Even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected,” President Barack Obama said yesterday in the State of the Union address.

Single-family rentals have represented more than 10 percent of the U.S. housing stock since 2000, said Wally Charnoff, chief executive officer of Westminster, Colorado-based data provider RentRange LLC. “So even when the market normalizes, buying homes to rent should prove a good long-term strategy for investors,” he said.

 

Source: Bill Bonner’s Diary,   Bloomberg