The End of the American Century

The United States is finished as a great power, its wealth having gushed to the East in a torrent taking little more than 3 decades. The genesis of the destruction goes back to 1913 but the hand writing on the wall appeared in 2008.

 

As difficult as it is to prepare for a 3 page blog posting, we will adumbrate a picture of the decline and fall of the United States of America, an act which required one Biblical generation of 100 years beginning with the establishment of the Federal Reserve System in 1913, perhaps the key inflection point in American history.

 

The significance of the Federal Reserve Act is that it represented a coup against Constitutional government which explicitly provided for the usage of gold and silver as money. Yet the tyrants of Wall Street wanted their own currency as money – nothing more than scrip based upon debt. Contrary to what most naïve – if not stupid – Americans believe, the Federal Reserve is a private entity which only answers pro forma to Congress. It is a willful independent body of financial hyenas who control the value of money by whim.

 

The significance of the Federal Reserve cannot be overstated. It provided for the financing of World War 1, a war which served no legitimate purpose for peace loving Americans. It did provide an entre to Europe which the US banksters used to colonize Germany.

 

The other significance of the Federal Reserve was that US law gave a private corporation the right define and price money. The effects of its administration have been a constant decline of the value of the dollar which has only benefited the wealthy and a stream of endless wars. Those without pricing power in the market are doomed to impoverishment, a fact which statistics make abundantly clear.

 

For example, the USA used to have the highest per capita income in the world. Today it is 14^th. Boohoo you might say, but this affluence supported the broad distribution of jobs and income and the consumer debt-slave economy. Without that wealth, the USA economy becomes a neo-feudal society where 47 million people are food stamps - and rising rapidly.

 

Wall Street’s suzerainty over Germany has never ended as it established Adolf Hitler in power through the agency of Prescott Bush, Averill Harriman, Henry Ford, the Rockefellers, and other citizens of the world who disdain constitutional self government. World War 2 was not accident and could not have been financed without the largesse of the Federal Reserve. Its ability to print money on demand funds a great military industrial complex.

 

The same wall street cabal which produced World War 2 murdered President Kennedy, produced Vietnam, the inflation and oil crises of the 1970s, deindustrialization of the 1980s, the gold divestiture of the 1990s, and the Nazi state of the 2000s through the hoax of 9/11. Indeed the Third Reich has ruled for 100 years.

 

The prompting of this brief précis on American history over the past 100 years was occasioned by an interview with Andrew Maguire, a veteran precious metals trader, who informed listeners through an interview with King World News that the recent takedowns in the price of gold were desperate last acts of the financial elite in New York and London to prop up the value of their fraudulent currencies. We reported recently the defaults at the LBMA but they have since intensified on several accounts. The most significant may be the lengthening of the delivery period of LBMA good delivery bars from 2 days to 5 days, a very ominous sign of the shortage of gold. Maguire also reports that the LBMA, which had been bailing out insolvent bullion banks by lending them gold – somewhat as a discount window at the Fed – has ceased providing this service because it can no longer obtain the gold.

 

The Gold Forward Lease Rate (GOFO) has gone negative and indicates a pronounced backwardation of gold, an extremely rare event. Antal Fekete has written extensively on the interpretation of this phenomenon, but to summarize it ever so briefly, it means that the fiat regimes are finished and there is no going back.

 

Maguire reported that massive quantities of gold have been sucked out of the Western central banks to the East, most notably China, and that it has gone into vaulting systems which do not permit short term storage. This means that the gold has gone into hiding and will never return to the market in this generation.

 

The utter inability JPMorgan Chase in the form of the New York Fed to deliver German gold is additional evidence of the scarcity of gold and its backwardation – to say nothing of their complete repudiation of fiduciary responsibility and morals. The Swiss have been stealing gold from allocated accounts, another proof of the scarcity of gold and its backwardation. Jim Willie reported the huge premiums of 20-25% the LBMA was paying to liquidate gold contracts for delivery.

 

The Western banking system is operated by Nazis and a small band of foolish, criminal frat boys who squandered in one generation the substantial wealth once owned by the United States. Not only did they deliver industrial capacity to the Chinese – by design – but they also pissed away Fort Knox and gold vaulted anywhere else. He who owns the gold makes the rules.

 

With American wages falling for 4 straight years and a double dip of the 2008 depression having started in late 2012 or early 2013, the prospects for a turnaround are impossible. When it hits with full force, there will be no security net to catch anyone. All who have not prepared will perish as social order collapses. The bankruptcy of Detroit is an archetype of what future America has.

 

The Nazis in Wall Street and academia who rule America are deeply engaged in Satanic rituals and include some of the most blood curdling acts imaginable in places such as Bohemian Grove as we reported in our story on the Midwest sex ring operating out of Omaha Nebraska.

 

The gold backwardation phenomenon hit hard because it is the sentry announcing the collapse of the dollar and all fiat currencies everywhere. However, the Nazis have taken much of the Ft Knox gold and will have abundant means to continue their quest for One World Government elsewhere.

 

The United States has enormous military power which it uses like a bully everywhere to take by force what it cannot achieve through peaceful just means. Its vast surveillance program is without limits or oversight and can extend for a considerable time the control which the Nazis have over the world. However, people of this country are without recourse because they gave away their birthright in order to have corporate socialism, a Faustian bargain if ever there were one. As Thatcher said, “The problem with socialism is that you eventually run out of other people’s money.” The people of Detroit know that all to well.

 

However, the loss of reserve currency privilege – exorbitant as it is – will undermine the military, causing the Nazis to become ever more desperate in their attempts to hold back the waters at the dam. Eastern and Emerging Bloc nations are well along the way in establishing a non-dollar trading system, a threat as dangerous to Nazi control as any military threat.

 

We do not use hyperbole in referring to the plutocrats as Nazis. We mean that they are power behind the throne going back to World War 1 and post-war Germany where they established Adolf Hitler to grab state wealth for private ends. But we should also quickly note that not all wealthy people are evil. Many of them are normal decent people. However there is a very small cadre of them, along with their academic and governmental fellow travelers, whose contempt for freedom and self government is boundless.

 

The loss of gold and its backwardation sealed the fate of the USA. Lehman was the handwriting on the wall, after which witnessing Belshazzar partied on through the night until Persian forces took Babylon that very night. So Obama – a tool of Wall Street – continued his trillion dollar deficits as far as the eye can see, funneling fabulous wealth to the Wall Street Nazis and the Far East.

 

Thus the Neo-con cabalists have boasted in their disgusting Project for a New American Century deeds which they will not achieve short of violence, bloodshed, and war. They are wicked to their very core.

 

While many will dismiss our analysis as histrionics of a rather rabid variety, we state the reason for our pessimism due to the loss of wealth in gold and industry. It cannot be repaired with traitors governing the nation, and its people are too drugged to see the problem or its solution. We face an Argentinian future if we are fortunate.

 

We have no specific advice other than to get gold – with all thy getting, get gold.

Reference
Interviews with Andrew Maguire, King World News, July 19-20, 2013

Copyright 2013 Tony Bonn. All rights reserved.

The Disintegration of the Old Economic Order

The house of cards created at Bretton Woods by the plutocratic elite is starting  to disintegrate. Many astute observers are noticing that more than an errant dog will cause the collapse of the rickety structure.

Although we don’t normally delve into economic matters directly, we believe that the urgency of these crises warrant an exception to policy, particularly when the background reporter is Jim Willie. His latest public newsletter presents a series of acute troubles facing the financial world.

We find further justification in our excurses since it underlines one of our major theses – namely that world events are not governed through the sham institutions over which Americans wax patriotic, but rather that sinister selfish people manipulating those institutions are the real movers and shakers of political events.

In particular, it was the plutocratic elite, led by the Bush Crime Syndicate, which murdered a president in Dealy Plaza, forced an elected president to resign in 1974, and attempted the murder of another sitting president in March 1981.

This same cabal of economic hyenas is facing a significant crisis – or engineering one – which is attacking all major pillars of Western economic life.

For those who have been oblivious to the financial storm, several issues are coming to a head.  We briefly enumerate them here.

LIBOR Scandal

The revelations of the enormous fraud perpetrated by major banks such as Barclays, Deutsche Bank, Lloyds and others have forced resignations of senior executives of these and other firms. However, that is nothing compared to the extent of their criminalities. These banks, plus major American banks, the US Federal Reserve Board, the Bank of England, and a cast of many thousands have engaged over the course of years – if not decades – in manipulation of this key rate.

Interest rates, like any other traded good, are two sided. When their prices are subverted through manipulation, someone loses, particularly those depending upon interest income or financial derivatives adversely affected by a certain direction in rates.

Over 350 trillion dollars in financial transactions depend upon this rate, meaning that the plunder is measured in hundreds of billions of dollars, if not more, even with the small basis point clipping of rates.

Although pure animal greed was at the core of this crime, one of the major movers behind it were governments who were hopelessly in debt and running annual deficits of 1.5 trillion USD.

Money Laundering

If you thought that BCCI and its money laundering schemes were things of the past, we would nominate you for fool. Where there is large money and power, there is large corruption. All of the leading financial institutions in the US have a large dependency on money laundering, particularly of the narcotic variety. Willie has mentioned Wachovia’s major involvement in narcotic money laundering prior to its demise. He also notes that money center banks’ survivals depend upon it.

JPMorgan and Interest Rate Swaps

We have previously reported on JPM’s exposure to Interest Rate Swaps as the real background story to its London Whale trades gone bad, but it is worth reminding our readers that the only way that interest rates can remain at 0% in the face of chronic deficits of the current magnitude is through these financial instruments which artificially create demand for bonds. As Willie notes, there is no rush to safety toward US Treasury debt – rather it is a gusher of Fed purchasing of debt through the banks of the Federal Reserve, in this case, Morgan Stanley. After the gold story, this is the story to watch.

FASB Accounting Scandal

In 2009, in the pell-mell of the Lehman crash and stock market sell-off, Congress compelled FASB – the Financial Accounting and Standards Board which specifies accounting rules and standards for public and corporate accounting – to suspend the mark to market standard which required that companies book assets at the lower of acquisition or market price. This suspension of centuries of accounting practice permitted companies to valuate assets at their whims - always through complex inscruitable models - , covering up massive losses in so doing.

If banks were required to adhere to mark to market,  they would have to recognize their bankruptcies and be forced into receivership. Nearly all of the major banks, including the Federal Reserve, are thusly insolvent. The Federal Reserve’s purchases of massively bad debt render it bankrupt. These insolvencies are the real reasons why banks are not lending, plus the fact that the Fed is paying banks to park 1.6 trillions dollars in funds by paying .25% interest.

Stolen Gold

Perhaps the biggest story yet to be widely reported is the massive theft of gold by the major banks as part of their gold shorting schemes to suppress the price of gold. Central banksters fear the price of gold because it, above all assets, signals bankster malfeasance and currency debasement. Hence, they are allowed to sell gold with naked shorts, something which would land an ordinary person in prison.

Having plundered their account holders’ gold, and in conjunction with massive flows of gold to the East, the gold cartel banks are finding themselves in a huge bind. At least 60,000 tons of gold have been stolen by the banks through lease programs in a bid to suppress its price. When the true owners discover the theft, an enormous upward thrust in gold will materialize.

Now that the price is rising, the pressure on these criminals to replace the gold will be volcanic. We believe that this is the main reason Ben Bernanke, once dubbed as the Chair Satan of the Federal Reserve Board, is refusing to engage in raw Quantitative Easing, a fancy term for currency debasement. Doing so would put enormous upward pressure on the price of gold which would in turn demolish the short positions of the gold cartel. Such a result would force them into bankruptcy just as they would face enormous civil litigation. Fortunately for the banksters, they are not subject to criminal prosecution because they own the government lock, stock, barrel and could always invoke national security as a covering pretense.

As a side note, Fort Knox is depleted of all gold. The only thing in its storage bays besides gold plated tungsten bars is nerve gas to be used on US citizens "for their own safety."

We again thank Jim Willie for providing the background summary for our interpretation of these events, and hope that readers can see the abject corruption of its esteemed leaders. Banksters and politicians have a very tight symbiotic relationship which could not flourish without each other.

We are at a loss to explain what the repressive regime which follows will look like, but Nazi Germany is a good place to start. The destruction of the economic order, to paraphrase North American Mossad Director Rahm Emmanuel, is not a crisis to be wasted.

Reference

US Treasury Bonds False Safe Haven, GOLD is the True Sanctuary , Jim Willie, July 26, 2012

Copyright 2010-12 Tony Bonn. All rights reserved.