Malachi Smith's List: NWO ECONOMICS

• August 21 2008
• The plan for an economic takedown, the results of rampant market speculations, insiders picking up assets for pennies on the dollar, the coming hyperinflation, the credit crunch, collapse of the dollar carry trade, suppression of metals prices, American meddling in Georgia
• The Big Sting Two is now being implemented by the Illuminati, but they have run into some major snafus that are ruining their attempt to bring America to its knees in preparation for the creation of a one-world system of government,
• with its associated police state, financial system and one-world religion.
• The plan was to bring down the US economic and political juggernaut while leaving their own interests either in tact, or perhaps only marginally damaged due to the takedown of our economy.
• Instead, they have destroyed both their financial and military power bases, and have managed, by virtue of their overreaching, overarching greed and corruption, to include themselves in the long list of their intended victims.
•  "The Big Sting One" was of course implemented in the year 1929 by past adherents to this very same global, one-world ideology, and that sting led directly to the Great Depression of the 1930's.
• While those who executed the 1929 sting were from another era, they were every bit as corrupt and evil as the current group of reprobates and sociopaths who comprise the latest den of Illuminist vipers, and perhaps even more so, if that were possible.
• We have mentioned both these "Big Sting" scenarios repeatedly in the IF, with The Big Sting One being a matter of history, and The Big Sting Two being a hypothetical, yet highly likely, repeat of the events that led up to the perpetration of The Big Sting One.
• The Big Sting One was essentially a run-up of real estate and financial markets through rampant speculation caused by the malevolently profligate financial policies of the recently formed Fed, a private consortium of big bankers intent on taking over our political and economic systems so that they could manipulate them for fun and profits until they were ready to discard them in favor of a one-world system.
• At the height of speculation, the insiders who owned the Fed or were otherwise a part of the elitist group of megalomaniacs in government and business acting in concert with the Fed and its Illuminist cadre, were told that the Fed was going to pull the plug on the money supply and send the markets into a tailspin.
• This same group of insiders were further told when this fiendish event would happen.  The insiders were given sufficient notice so that they had time to gradually liquidate their paper holdings and convert them into gold and other real tangible assets such as commodities.
• They were later told, in the aftermath of the Stock Market Crash of 1929 and the election of FDR as President in 1932, that eventually ownership of gold, without disclosure of personal holdings to the government for possible confiscation, would become illegal.
• Once again, the insiders were given plenty of notice, this time to rat-line their gold bullion safely to Europe and other offshore locations, thus freeing them from the disclosure requirements and possible confiscation.
• Once again, all the non-insiders were left holding the proverbial bag.
• Then FDR, in 1933, like a good Illuminist lapdog and fascist scum-bag, after bilking the public out of their gold by scaring them into redeeming it from the government at $20 per ounce under threat of confiscation and jail for non-compliance with the disclosure requirements, raised the redemption value of gold from $20 per ounce to $35 dollars per ounce,
• for a nice, tidy profit of 75% for all the fraudster insiders who sat afterwards like fat cats on their hoards of offshore gold while the rest of the country went into deep depression, complete with daily foreclosures, bank failures, soup kitchens and bread lines.
• What an evil, despicable group of human beings these insiders were, in ways that defy description.
• The objective is to run the paper, dollar-denominated stock, bond and derivative markets up in the mother of all bear market rallies just before the elections in order to support traitorous, incumbent, Congressional scum, while simultaneously driving the commodities markets, and markets for other tangible, real assets, like real estate, down.
• And now they are at it again, as The Big Sting Two gets underway.
• Then comes the bailout and the rollover and reinvestment of the proceeds.  Dark pools of liquidity, Project Turquoise and Baikal, have been set up so that all dollar-denominated paper assets can be dumped outside of public view, thereby avoiding the collapse of asset values as the elitists pour their sales proceeds into tangible, real assets.
• Both the bailout and the reinvestment of the proceeds from the bailout will happen as gradually as they can manage, because they want to avoid public scrutiny and get the best possible prices when selling paper assets and buying real assets.
• Meanwhile, false economic statistics from our government, fabulous fables from the Fed and endless fane-stream media jaw-boning will be used to convince the public and non-insider institutional investors that everything is hunky-dory and a recovery is just around the corner, right up to the moment that the destruction of our economy is finally given voice by our government officials, financial shills and fane-stream media.
•  Right after the insiders have bailed and reinvested as stated previously comes the reality of thermonuclear, financial destruction.  The dollar gives up the ghost.
• Up rocket gold, silver, oil and other commodities along with various other real assets as everyone runs for the door to dump their paper assets and tries desperately to reinvest the proceeds in real assets just as the insiders had done previously without them knowing.
• Next come the bankruptcies, foreclosures and liquidations.  And who is there to scarf up all the fire sales at pennies on the dollar?  That's right, the evil, insider fiends whose real, tangible assets have skyrocketed after they just got the best possible deal on what is now worthless, dollar-denominated, paper "assets" from the public and non-insider, institutional sucker-dupes.
• But the implementation of The Big Sting Two has become very problematic for the Illuminist scum-dogs.
• These reprobates have destroyed the bond and derivative markets via real estate fraud committed to hide the damage from the bursting of the dot.com Ponzi-scheme bubble.
• These markets were their financial power base, and are now a total shambles.
• This whole fiendish mess is nothing but fraud heaped upon fraud.
• The Illuminist financial institutions have become the "living dead" in a dying nation with a "zombie economy" that is undergoing its last reanimation.
• So far, they have only acknowledged a half a trillion in losses from subprime derivatives, with many, many trillions left to go on Alt-A, Option ARM's, Prime Jumbo and Prime Non-Jumbo loans.
• Who will buy all this toxic waste when they go to dump it?  How will they get a high enough price to keep major banks, investment banks and brokerage houses from going under?
• The proceeds from their good investments will be vaporized by the losses from their toxic waste, so what will they have left to invest in tangible, real assets?  How much of these losses can the broke, debt-laden, defaulting public bail out before everything collapses?
• Where will the money come from?  How will our citizens be able to afford higher taxes when a third of them are unemployed?
• How much paper fiat money can the Fed print before hyperinflation and the ensuing deflationary depression cause civil unrest and the trials and recriminations start as the public seeks out the Illuminist perpetrators of these heinous crimes?
• A half-trillion of Fed largesse created from thin air has done nothing to restore confidence in a collapsed system run with a mantra of rampant, rampaging, blatant fraud and deceit that has wiped out the major players in our financial system.
• Then we have the credit-crunch.  It is worse than ever.
• The resulting de-leveraging to shore up balance sheets that have been destroyed by toxic waste and by geometrically increasing rates of default on loans across the board has put oppressive downward pressure on the stock, bond and derivative markets that even the PPT can no longer support, much less run up to new heights.
• How can you run up a stock market when every incremental increase in value is seen as an opportunity to sell and avoid a meeting with a bankruptcy trustee and a loss of your job and salary?
• How can you run up a bond market when wildly increasing risk and inflation, with their much higher attendant rates of interest, perhaps even in double digits, are on the horizon?
• How can you run up derivative markets as Fannie and Freddie get ready to take the final plunge into nationalized oblivion while the real estate market faces hundreds of billions in mortgages with rate resets due, many of them underwater, with inventory and foreclosure rates that are growing with no end in sight, while a quadrillion dollar death-star of credit default and interest rate swaps gets ready to blow and collapse into a financial black hole?
• The fractional reserve multiplier is now inoperative because no one wants to lend money.
• The banks don't trust one another, much less non-financial clients.
• Every potential loan client is a potential back-breaking loss down the road.
• All the money and credit provided by the Fed is being hoarded, and the ability of banks to improve their balance sheets with fractional reserve leverage is nil.
• Again, where will they get the excess profits necessary to buy tangible, real assets so they can complete The Big Sting Two?  This fear of lending renders the Fed and the ECB irrelevant to help their floundering economies.
• They can marginally help the fraudsters with their investment spreads if rates are lowered.  The raising of rates at this point would bring the system down and completely destroy The Big Sting Two operation, so you can bet that higher rates won't come from the Fed until after The Big Sting Two is completed or aborted.
• In any case, higher rates will be imposed by the markets, and we mean soon.  Other nations with large forex reserves and trade surpluses like China and Russia may have the money to invest in tangible, real assets, but where will the Illuminists in the US, Canada and Europe cough it up from?
• Our wonderful, stupendous, 160 billion dollar economic stimulus package has been absorbed and swallowed by our dying economy with little more than a hiccup to show for it.
• Our GDP is negative, we have unsustainable trade deficits, current account deficits, and an overall national debt that is about to double as the destruction and havoc wreaked upon us by the fraudsters gets unceremoniously dumped on the sheople-taxpayers.
•  Our state and local governments are collapsing from decreased revenues as their bond markets for raising cash become frozen.
• Earnings are tanking from huge run-ups in wholesale costs due to commodity speculation, a weaker dollar and a broke and exhausted US consumer in debt up to his/her eyeballs.
• Where will corporate America, or even our government, find the money to invest in tangible, real assets under these woeful circumstances?
• Soon, Buck-Busting Ben will have to raise M3 to unheard of heights just to keep the system from collapsing as the financial system contracts at an ever-accelerating pace due to a self-imposed moratorium on lending and a collapsing real estate market and recessionary economy.
• We see a huge transfer of power to the dollar-rich nations and away from Illuminist interests as The Big Sting Two gets put on the Illuminists by the nations they intended to rip off with falsely-rated toxic waste and a collapsing dollar.
• Next we have the phony dollar rally and the even phonier corrections in gold and silver, as well as other commodities, especially oil.
• What is causing this dollar rally?

  • August 21, 2008
• We'll tell you what is causing it.  First, you have the collapse of the dollar carry trade.  This was a set-up by the Illuminati.  They knew they were going to collapse the dollar over the past six to seven years from 121 to 71 on the USDX.
• They had to collapse the dollar to denude many competing foreign countries of the power they had gained through globalization, free trade, off-shoring, outsourcing, and legal and illegal immigration.
• They had to level the playing field so-to-speak.  The dollar was kept on the stronger side for many years to maximize overseas buying power as numerous US transnational conglomerates spread their tentacles worldwide.
• But eventually, the dollar had to be brought down before the Illuminists were snowballed by their counterparts in foreign countries who had accumulated tremendous amounts of dollar forex and trade surpluses.
• Now, all those short sales of the dollar, which were once sure winners, are in trouble, and their is rampant short-covering right now as dollar flows decrease due to a worldwide recession and credit-crunch and these large short positions are no longer sustainable.
• Other currencies are being sold to buy dollars to cover eroding margin positions in dollar shorts caused by the sharp rise in the dollar initiated by central bank collusion, and that is increasing the dollar's value while simultaneously decreasing the value of other currencies such as the pound sterling and the euro.
• This central bank collusion was initiated to suppress gold, silver, oil and other commodities, to maintain export competitiveness in the Euro Zone and to support the cause of US incumbents who were looking pretty foolish until recently as our dollar, the world's reserve currency, collapsed before everyone's eyes.
• A US recession is taking its toll on dollar flows as US consumers collapse from burdensome levels of debt and dollar flows are contracting rapidly from the financial system as the result of an ever-worsening, ever-accelerating credit-crunch even though Big Ben is printing money furiously.
• While increases in the supply of money decrease the value of the dollar, contractions in the money supply can increase its value.  This also happened to the yen when the Japanese economy collapsed.
• And now there is a new flow of money to perceived quality and safety as World War IV looms in Georgia along the Russian border and in Poland, which has foolishly allowed NATO missile interceptors along the Russian border.
• NATO is being spanked by Russia, and there is little they can do about it as European oil and gas supplies come under total Russian dominance with the loss of all influence and control in Georgia, which will now become a puppet state of Russia.
• Also, the imminent collapse of Fannie and Freddie and looming bank failures of the gargantuan variety await their announcement on the Friday Night Follies, and money is flowing out of stocks again into treasuries and money markets.
•  In addition, because oil has been manipulated down, the euro has dropped as the dollar has risen because OPEC petrodollars are converted mostly to euros and are spent in Europe.
• The dollar rally has decreased dollar profits from oil, so the purchase of euros with petrodollars has slowed considerably.  Therefore, this dollar rally should not fill you with relief and confidence, it should fill you with ominous foreboding.
• The other part of The Big Sting Two is to suppress precious metals directly, so they can be purchased cheaply by the Illuminists themselves for their own account.

  • Well, world? How does it feel to be "carpetbagged?" We Southerners know quite well.
• The dollar and oil manipulations have had an indirect impact, as has the yen, which has been kept strong against the euro to discourage carry trader investment in precious metals in the Euro Zone as the value of the euro erodes against the dollar and therefore also against gold and silver.
• But there are massive shortages in both gold and silver.
• The mint has suspended issuance of both Gold and Silver Eagles.
• Dealer inventories of gold and silver bullion and coins are greatly depleted and lengthy delays in delivery are common.
• Yet prices have plummeted.  This goes against all free market principles known to man.  How can they do this?
• Low or even negative lease rates for one.  You can borrow gold and silver bullion for nothing or even get paid for taking it, and then use it to cover your shorts or sell it into the market to suppress prices.
• Only big banks get the privilege of borrowing for next-to-nothing, or even getting paid to borrow.  Try getting your banker to do that for you.
• We believe that much of the ETF gold and silver has been leased out, and their shares have definitely been naked shorted.  Then there is direct sales by central banks and the ETF's, which incidentally are controlled by large banks and investment banks.
• Also, huge short positions in futures markets have a suppressive effect, and the specs are humiliated constantly by the commercials who illegally know where all their sell stops are, and regularly start a cascade of black box selling whenever they want to spank them.
• Suspension of sales of gold and silver by the US Mint, which are both totally illegal, has been another factor suppressing demand, because the government is not being forced to go into the open market to buy precious metals in support of their mandates.
• Also, the failure to demand physical delivery by making cash purchases of COMEX gold and silver contracts for ultimate physical delivery has allowed the commercials to continue to dominate the casinos.
•  We have continually begged the specs to empty the COMEX cupboards and change the ownership of the casino, but to no avail.
• And despite all this illegal manipulation of prices and illegal concentration of short positions among a very few players, we can expect total inaction, and/or even collusive suppression, from the SEC, the CFTC, the COMEX, the courts, the other regulators and our government.
• These markets are have become totally unregulated free-for-alls for the Illuminati and their gold cartel.
• This is a disgrace of the highest order, and we predict that many heads are going to roll when the trials and recriminations get underway at the behest of a livid US public.
• Nevertheless, these imbalances cannot stay in place for very long, and soon outside forces will overwhelm all these collusive manipulations and precious metals are going to shoot up like they were shot out of a howitzer in hyperbolic fashion.
• The way to defeat the Illuminists and their plans for The Big Sting Two is to simply sell any and all dollar-denominated, paper assets such as stocks, bonds and derivatives.
• All interests in gold and silver ETF's and in mint certificates should be gradually liquidated with the proceeds used to purchase gold and silver bullion, coins and their related resource stocks.
• Small investors should keep pressure on the dealers and the mints, while the big boys should buy silver and gold futures contracts on the COMEX for cash and for actual physical delivery at the end of the contract until the COMEX gold and silver cupboard has been completely emptied.
• Then the cartel's lack of bullion will be laid bare, and their domination of the casino-like futures markets will be terminated.  After that, it is up, up and away for gold and silver.  
• Meanwhile, a big bank failure, the nationalization of Fannie and Freddie or the breakout of World War IV could occur, and that will take care of the suppression problem in very short order.
• Wait until the Olympics are over and China joins in on the action.
• Wait until all those foreign GSE bondholders start to smell big losses emanating from their  Fannie and Freddie securities holdings and start exchanging them for gold, silver and other commodities while shunning treasuries and corporate bonds.
• A war is the usual remedy for economic disaster, both to direct attention away from such problems, to feed the military-industrial complex as a kick-start to the economy.
• Something very bad is about to happen.  We can just feel it coming.
• Our economy is quickly unraveling, and it will be a miracle if they can hold it together through the November elections.
• Meanwhile, you have been given the bargains of a lifetime in gold, silver and their related shares.  The blue light sales are on, and we suggest you take full advantage of them.
• Last week we may have seen the beginning of WWIII.
• Russian peacekeepers were in Georgia and the Russian military brought a stinging defeat to the Georgian military, American and Israeli mercenaries and American forces all of who participated in the murder of 2,000 or more civilians. The US commanded forces used cluster bombs on the civilians.
• The struggle is over; access to the Caspian’s 35 billion barrels of oil and trillions of cubic feet of gas and the geopolitical isolation of Russia.
• Russia has emerged the winner in this war for oil and gas.
• Our Secretary of State has told Russia it must leave Georgia. US officials have said that their military presence in Georgia will now become permanent.
• We might ask if the US presence can become permanent, why doesn’t Russian presence become permanent as well?
• The American military has been leading, training and equipping the Georgian soldiers. Americans say they are now switching to a full time program, as a security guarantee.
• The invasion by Georgia into UN mandated territory under a Russian peacekeeping mission has triggered an outpouring of the most nauseating hypocrisy from western politicians and their captive, controlled media.
• There was the charge of Russian aggression, which was not the case at all. This is what our controlled media would have you believe.
• This was a case of American expansionism, a product of America’s drive to stretch its imperial oil empire.
• VP Cheney and PM Brown would have us believe it was Russian aggression and it is nothing of the kind. This is the same false pretense and lies that were used to invade the sovereign state of Iraq and bring the lives lost in the war and occupation to well over 1 million people, never mind those maimed for life.
• This is the same demented thinking that saw Israel pulverize Lebanon’s infrastructure and murder more than a thousand civilians, and followed up that action by spreading cluster bombs all over one section of the country deliberately to kill civilians.
• Again it was the intention of US and Israeli commands to kill as many civilians as possible; like throwing grenades into basements and homes known to be a hiding place for women and children. What evil barbarians.

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• CNBC presents: Big Brother, Big Business
• CNBC takes a look at the companies behind the powerful business of personal information and the people whose lives are affected by it ..

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• THE FINAL DESTRUCTION OF THE MIDDLE CLASS
• By Joan Veon
    September 15, 2008
    NewsWithViews.com
• The   Graet 2008 Transfer of Wealth
• Americans   are confronted with what appears to be the worse economic situation   since the Great Depression.
• What will history say about the U.S. credit   crisis turned global financial crisis?
• At every turn investors are   faced with new problems, new crises, and less than desirable solutions   which include debt, deflation and a transfer of wealth.
• With   regard to debt, the American taxpayer has been made the lender of   last resort for international bank Bear Stearns and now the two Government-sponsored   Enterprises-GSEs, Fannie Mae and Freddie Mac.
• On top of the $29B for   Bear Stearns, Fannie and Freddie’s debt of $5.4T has been effectively   transferred to the balance sheet of the USA.

  • Take away the traditional liberties and freedoms of the American citizen; defraud us of fair elections and then turn around and have the audacity to ask us to foot the bill for them and their Bankster-Gangster-Carpetbagger buddies!!!
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• This is equal to the   entire publicly traded debt of the U.S. which is also the same as   the total of America’s mortgage-related assets.
• In addition   to personal debt, every American now has a financial responsibility   for Bear Stearns and Fannie and Freddie.

  • Flippin unbelievable!!
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• We,   the people, have saved the foreign investors such as China which owns   $376B, Japan which owns $228B, South Korea which owns $65B, Taiwan   which owns $55B, and Australia which owns $33B, from losing faith   in America.
• It is the stockholders, both common and preferred, that   have been given the raw end of the deal.
• While large financial institutions   such as JP Morgan, which owns $1.2B of Freddie and Fannie stock, said   a complete loss would only erase one or two months of profits, contrast   this to smaller banks such as the Central Virginia Bank in Richmond   which has $20M in shares of Freddie and Fannie. That type of loss   will put them in the same kind of trouble as Lehman Brothers, not   enough capitalization.
• There are 15 other banks that hold 10% or more   of their capital in shares of Freddie and Fannie.
• The   Federal Accounting Standards Board is requiring more stringent standards   for banks and savings and loans to maintain a certain amount of capital   to protect against insolvency.
• Those rules are in the process of being   changed to conform to international rules issued by the Bank for International   Settlements in Basel, Switzerland which Congress has voted on. These   rules which were only to pertain to international banks are now being   applied to national banks.

  • International banking laws now applied to U.S. banking rules
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• Furthermore   those in retirement who thought their money was safe—invested   in the highest ranked bonds in the country are going to lose their   dividends.

  • Retirees' investments funds...down the crapper
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• Depending on the price they invested, they could have principal   losses of up to 80 or 90% of their investment. Ouch.
• The credit crunch began a year ago when the various investment banks   both here and abroad stopped buying each others paper, a very uncommon   practice between them.
• As a result of no liquidity for mortgage paper   caused by their decision, we have the most serious slowdown in real   estate in decades.
• The decision to not buy mortgage paper includes   the sub-prime loans made to home buyers that had no down payment.
• To relate, I recently met a young Latino who is worried about her   home. Five years ago she bought a $370,000 townhouse with $14,000   down. Her interest rate varies causing her monthly payment to jump   from $2700 per month to $3500. She cleans houses for a living.
• Freddie   and Fannie decided they could make more money by buying subprime mortgage   paper.
• Today there is an eleven month inventory of unsold homes.
• Higher   interest rates as a result of the hidden clauses on floating interest   rates have put many people in jeopardy of foreclosure.
• All of these   problems have given the Federal Reserve the opportunity to seize total   control of powers they did not oversee in order to protect our economy.

  • Federal Reserve seizing control?
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• Perhaps we should ask where the desire to put poor people into homes   came from? It was part of the Bush Administration’s policy to   conform to the United Nations’ Millennium Development Goals   unveiled in the year 2000.

  • Ah yes...that entity that should have been bulldozed into the East River several generations ago!
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• Exacerbating   the credit crunch have been the historically high oil prices which   have caused pain at the gas pumps and a weak dollar which has made   imports more expensive.
• To counter high oil prices, Americans have   drastically reduced how many miles they drive and a number of buying   habits.
• In light of a tight job market and job losses in housing and   the automotive industries, we are confronted with higher energy costs   to heat and cool our homes, increased costs for food, and the inability   to refinance mortgages.
• When people stop spending, it moves from deflation to stagflation—no   matter how cheap an item becomes, people can’t afford to buy.
• Basically the economy is now in deflation.
• All this without knowing what the real fall out will be from the bailout   of Freddie and Fannie.
• The   situation we are confronted with did not happen in the last few years,   but began in 1913 when a group of cunningly deceitful legislators   passed the Federal Reserve Act on December 24 at 11:45 p.m., after   those who were opposed went home for Christmas.

  • When and where did the meltdown begin?
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• The entire financial   system of the U.S. was transferred from Congress to a private corporation   that is NOT accountable to Congress.
• They create and destroy the business   cycle by various means: raising and lowering interest rates. The government   of the United States is in bondage to a group of individuals who own   the Federal Reserve.

  • U.S. Government itself in bondage
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• The reason why the American people cannot forgive   themselves the interest on our debt is because we do not owe it to   ourselves we owe it to the Federal Reserve!
• Every single time since   then that the Federal Reserve Act was amended, over 195 times, the   Federal Reserve gathered more power over various aspects of our economy.   However, they are in the final throes of stripping America of any   remaining vestiges of sovereignty as has been laid out in the Treasury   “Blueprint for a Modernized Financial Regulatory System.”

  • Yes..: in this Freddie-Fannie crisis, the Federal Reserve has come out the stronger.
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• The   Blueprint was written under the watchful eye of one of America’s   most successful international bankers, former Goldman Sachs CEO Hank   Paulson, who is now our illustrious Treasury Secretary.

  • Henry "Hank" Paulson
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• Is this not   a case of the fox in the chicken coup?
• Long time investment sage Marty   Whitman commented on his actions, “Paulson thinks he is in Russia   and is not giving any value to stockholders. It is outrageous that   the Treasury Secretary is not giving any consideration to the shareholders.”
• The   Blueprint calls for key components of our financial system, not currently   under Federal Reserve control, to be transferred to them.

  • Paulson's "Blueprint"
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• In order   to do this, a number of changes will be necessary which Congress will   have to approve.

  • And we know "they" will...
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• First, it recommends changing the banking charter   to include all financial institutions, thus effectively transferring   control over “national banks, federal savings associations,   and federal [and state] credit union charters.”

  • Capture of the Credit Unions, state and Federal by the Federal Reserve
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• For your information,   Washington Mutual is a savings and loan while Lehman Brothers is and   Bear Stearns was an international bank.
• The Fed is to be given authority   over the U.S. Payment and Settlement System thereby controlling the   settlement process for securities.
• It will be given the role of Market   Stability Regulator and it will have total control over the market.

  • Federal Reserve to be given control of the "Market"
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• The Blueprint provides for the entire mortgage system of the U.S.   to be federalized and to be under the control of the Mortgage Origination   Commission.

  • This "Blueprint" calls for the entire mortgage system of the USA to be Federalized
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• The Federal Reserve will be part of the Commission.
• Additionally   the Federal Reserve will be given a say in the insurance industry   which will be federalized and a new Office of Insurance Oversight   will oversee its activities. The Federal Reserve will have a place   on the Insurance Oversight commission.

  • The Blueprint calls for the Federal Reserve to be given a say in the insurance industry
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• By   the time Congress votes on the Blueprint, there will be so many reasons   for them to transfer the last vestiges of our financial sovereignty   to the Federal Reserve that they will not even have to read the prepared   legislation.

  • The "numb nuts" of Congress
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• So far, we have the bailout of Freddie and Fannie   by giving Treasury a blank check to act; the Federal Reserve worked   all weekend to find a buyer to Lehman, another international bank,   their next project might be to rescue Washington Mutual, a savings   and loan, and the Fed has been given initial powers to act as the   Market Stability Regulator. The only component that is missing is   the demise of an insurance company, AIG anyone?

  • The Plan; the Conspiracy; the Success
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• For   the record, at the heart of the Blueprint is changing our financial/banking   and securities regulatory system from a national system to an international   system to bring America into the world governmental system that functions   above the nation-states.

  • For the "Cause": bringing the United States of America into the NWO system of global government, these old American institutions had/have to fall.
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• I have maintained that in order to get Congress   to go along, we would have to have a huge problem which would allow   Congress to be convinced that they need to act, however, the truth   of the matter is they no longer have the power they once had because   the majority has been transferred to the Federal Reserve.
• History   will determine how the final stage was set but I believe it started   in 2000 with the Crash of the Nasdaq.
• Who would have ever thought   that a stock would drop 90% in value? About $7T vanished from the   balance sheets of investors. But we did not have to worry, as a result   of 9/11, the Federal Reserve started to reduce interest rates to 45   year lows to get Americans to support the economy by buying the dream   home. We bit the bait.
• It was the Roaring 20s all over again. At one   point in the housing boom, one out of four jobs was created by the   housing industry. No one asked if they could afford the debt, they   only asked if they could afford the payment: a big difference.
• They   did not ask the right questions about their mortgage because the mortgage   industry was not required to disclose to them, when it should have.
• At one time the mortgage industry was run on honesty and integrity,   but that changed too and people have been caught in a terrible snare.

  • The mortgage industry corruption
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• The   Bailout of Freddie and Fannie provide us with the latest excitement   in the diabolical saga of the raping, robbing, and pillaging of America.
• Interestingly enough it took place 13 months after the beginning of   the credit crunch.
• Lastly, I have maintained since the beginning of   the credit crunch last August that it was planned and managed destruction   in order to accomplish the final transfer of America’s financial   sovereignty.
• All of the above only confirms my original suspicion.   Sadly, only the strong will survive, only those who did not use their   house as a checking account will survive, only those who turn to the   Creator of the Universe, the Lord God who created heaven and earth,   and His Son, Jesus, will survive in the midst of the Great 2008 Transfer   of Wealth.
• © 2008 Joan Veon - All Rights Reserved

• Joan   Veon is a businesswoman and international reporter, who has covered over   100 Global meetings around the world since 1994. Please visit her website:   www.womensgroup.org. To get a   copy of her WTO report, send $10.00 to The Women's International Media   Group, Inc. P. O. Box 77, Middletown, MD 21769. For an information packet,   please call 301-371-0541

   

  E-Mail: t7w7g7@aol.com
   
    Website: www.womensgroup.org

63 more annotations...

• Taxpayers Forced To
    Bailout Zionist Gangsters
• The Financial Crisis On Wall Street & 

  The Gang of Zionists Behind 9-11
• By Christopher Bollyn
    9-21-8
•  

    

   

  Ben Shalom Bernanke, the chairman of the Federal Reserve,  is the dedicated Zionist Jew behind the $85 billion taxpayer-funded bailout  of Maurice Greenberg's criminal enterprise, A.I.G.
• Adding Insult to Injury: 

  Hard-pressed American Taxpayers Forced to  Bailout 

  Zionist Gangsters Behind 9-11
    Updated September 21, 2008
•  

    

  Maurice Greenberg, the Zionist criminal behind  A.I.G., 

  is deeply involved in the false flag terror  of 9-11. 

  [Photo: www.cloakanddagger.de]
• The current financial crisis in the United States involves  some of the very same Zionist criminals and entities that I pointed out  in my recent chapter, "The Architecture of Terror: Mapping the Israeli  Network Behind 9-11."
• The collapse of their criminal scams on Wall Street could  result in more information coming out about the Zionist gangsters behind  9-11.
• Such outrageous criminal scams cannot be kept hidden  for long.
• The government loan of $85 thousand millions of U.S.  taxpayer dollars ($85 billion) to keep afloat Maurice Greenberg's criminal  operation, American International Group (A.I.G.), brings into the spotlight  one of the key individuals in the Zionist criminal network behind 9-11.
•  

    

  Maurice Greenberg 

  The criminal head of A.I.G.
• THE DEVOTED ZIONIST BEHIND THE A.I.G. BAILOUT
• It should come as no surprise that the key person behind  this unprecedented government bailout of A.I.G., a huge Zionist criminal  operation, is himself a devoted Zionist.
• Ben Shalom Bernanke, the chairman  of the Federal Reserve System, is another Hebrew-speaking scion of the  Jewish Theological Seminary of New York City, like Michael Chertoff and  Alvin K. Hellerstein.

  • Putting aside all conspiracy theories and the shrill anti-semitism of many: it does seem there is an inordinate amount of Jews in and around the U.S. Government in proportion to their numbers in the USA.
  Add Sticky Note
• How can it be that the sons of small group of uneducated  Jews from Eastern Europe, who immigrated to the Bronx in the 1900s, now  control a nation of 300 million non-Jews?

  • Good question
  Add Sticky Note
• If you were to ask a Zionist  Jew from the Jewish Theological Seminary why they control America, they  would probably say: "Because we can."
•  

    

  Bernanke has been a religious supporter 

  of Zionist criminals since the 1970s.
• Growing up, Bernanke attended the extremist Zionist summer  camp (Ramah) of the Jewish Theological Seminary where he was immersed  for months in the Zionist ideology of the JTS - in Hebrew.
• During college  in the early 1970s, Bernanke began working directly with the Jewish political  crime bosses in South Carolina.

  • Jewish political crime bosses in South Carolina?
  Add Sticky Note
• BERNANKE'S YEARS WITH THE CRIME BOSS OF DILLON
• Ben Shalom (Hebrew for "Son of Peace") Bernanke  went to Harvard University and graduated with a B.A. in economics in 1975.
• Throughout college, however, Bernanke had a very odd summer job for an  Ivy League student of economics. Every summer he returned to Dillon,  South Carolina, to work for Alan Heller Schafer, the well-known Jewish  criminal and political boss who ran a sprawling roadside gambling and  drinking establishment called South of the Border.

  • Dillon, South Carolina

  • "South of the Border"
  Add Sticky Note
• The adjacent counties  in North Carolina had been "dry counties" when Schafer originally  started his drinking and gambling establishment.
• Such was his clout that he was reportedly able to have  the route of Interstate 95 altered so it would directly pass his saloon  operation.
•  

    

  Alan Schafer 

  Bernanke's criminal employer during his college  years.
• Alan Schafer was, after all, the long-standing chairman  of the Democratic Party in Dillon County, where, since 1966, he ran the  "state's smoothest-running political machine" by buying votes.
• Schafer's political machine maintained power, said Craig  C. Donsanto, director of the Justice Department's Election Crimes Branch,  through a "carefully controlled and sophisticated system of rigging  elections," the New York Times reported in 1982.
• This is the crime  boss that Bernanke worked for, every summer, while he studied at Harvard.
• "Alan didn't want any more stump meetings because  they threatened his candidates," said A.W. (Red) Bethea, 66, who  was defeated four times in Statehouse races by Schafer-backed candidates.
• "If you were running against the Schafer machine without his wanting  you to, you were just wasting your time."
• Mr. Donsanto said more than 1,000 Dillon County voters  were paid $5 to $10 to sign their names to absentee ballots in 1980.   In the 1980 primary, 1,500 of the 7,000 votes cast in Dillon County were  absentee ballots.
• Two days after the primary, agents from the U.S. Justice  Dept. "swooped down on Dillon County and seized the ballot boxes,  touching off the largest voting fraud investigation ever conducted in  the Southeast," the Times reported.
• After an 18-month investigation, 30 residents of Dillon  County were indicted on charges of violating federal election laws, most  of them for buying votes.
• As the head of the election corruption and  vote- buying machine, Schafer was sentenced to three and a half years in  federal prison.
• The joint state and federal investigation, which finally  busted Schafer's political machine, "broke up the county's leadership  elite, men who had controlled and manipulated Dillon's political process  since the mid-1960s," the Times reported.
• This was the well-known Jewish criminal that Ben Shalom  Bernanke, a student of economics at Harvard, worked for every summer.
• It is simply impossible that Bernanke was unaware of Schafer's wide-scale  criminal activities, which were legendary in the state.
• (Now, Bernanke  is behind the $85 billion taxpayer-funded bailout of another Zionist criminal,  Maurice R. Greenberg, who ran A.I.G. for decades and who owned some $15  billion worth of A.I.G. stock, before it fell some 94 percent in value.)
• The "pain and embarrassment" caused by Schafer's  decades of criminal activity aimed at controlling elections deeply affected  the people of Dillon County.
• After college, Bernanke earned a doctorate at Massachusetts  Institute of Technology, where his adviser was Stanley "Stan"  Fischer.
• Fischer, born in Rhodesia, also happens to be the current  Governor of the Bank of Israel.
• If you look at Bernanke's biography you  will find that he has spent his entire life engaged only in Zionist activities.  I have not found any period of Bernanke's life when he was involved in  anything other than Zionism.
•  

    

  Bernanke's advisor of Zionist economics at  MIT was Stan Fischer, 

  head of the Bank of Israel; here with Ehud  Olmert on April 1, 2008. 

  [Photo AP - Sebastian Scheiner]
• (I am working on an article to explain the massive Zionist  criminal enterprise of A.I.G., primarily owned by Maurice Greenberg.   A.I.G. is much more than insurance fraud, and there is nothing "golden"  about it, except for its Israeli subsidiary's name. Greenberg's criminal  enterprise known as A.I.G. is sprawling and even includes a company (ILFC)  that leases and finances aircraft for the airlines and secret government  missions such as "enforced renditions."
• One of Greenberg's aircraft, for example, a Gulfstream  4 with tail number N971L, was involved in the abduction of crew members  who survived the Estonia catastrophe in September 1994.
• Greenberg's plane  left Stockholm's Arlanda airport with half a dozen "unregistered  passengers" and took them to Bangor, Maine, the day after 11 surviving  crew members disappeared from Stockholm's Huddinge hospital.)
• This is just a fragment of the criminal activity Greenberg's  A.I.G. is involved in. As I wrote in one of the latest chapters of Solving  9-11, published in July 2008, Greenberg and A.I.G. are both involved   in the 9-11 false flag terror attacks:
• KROLL, GREENBERG & THE ISRAELIS
• Rebuffed in 1987, the Mossad team of Malkin and Shalom  didn't give up on Isser Harel's prophecy of 9-11, which meant getting  the Port Authority security contract.
• They simply changed tack and decided  to work in a less obvious manner, through dedicated and corrupt American  Zionists like Jules Kroll and Maurice Greenberg.
• Shalom went to work  for Kroll, according to the online 9/11 Encyclopedia entry for Maurice  "Hank" Greenberg, the CEO of the American International Group  (A.I.G.) insurance company 

  In 1993, Maurice Greenberg became a partner and co-owner  of Jules Kroll's company when A.I.G. bought 23 percent of Kroll.
• Greenberg  is very close to Henry Kissinger, who became chairman of A.I.G.'s International  Advisory Board in 1987.
•  

    

  Kissinger and Greenberg
• Greenberg was deeply involved in China in the 80s, where  Henry Kissinger was one of his representatives, according to the 9-11  Encyclopedia.
• Through the China trade, Greenberg became close to Shaul  Eisenberg, the leader of the Asian section of the Israeli intelligence  service Mossad, and agent for the sales of sophisticated military equipment  to the Chinese military, it reports.
• Eisenberg was also the owner of  Atwell Security of Tel Aviv...
• Maurice Greenberg and Jules Kroll are connected to the  key players of 9-11 in so many ways that their connections would fill  a book. For the purpose of this chapter, however, there are a few key  connections that need to be underlined:
• 1. Maurice Greenberg and Jules Kroll became partners  in 1993, the same year Kroll Associates "was chosen over three other  companies to advise the Port Authority on a redesign of its security procedures."
• "We have such confidence in them that I have followed  every one of their recommendations," Stanley Brezenoff, the Port  Authority executive director, told the New York Times in 1994.
• 2. Kroll controlled security at the World Trade Center  complex in 2001 and was responsible for hiring John O'Neill, the former  chief of counterterrorism for the FBI, who died on 9-11, reportedly his  first day on the new job.
• 3. Greenberg's son, Jeffrey W. Greenberg, became CEO  of Marsh & McLennan (MMC) in 1999 and chairman in 2000.
• The first  plane of 9-11 flew directly into the secure computer room of Marsh (Kroll)  USA, part of Greenberg's company. Mark Wood, an eyewitness, said: "It  looked like a mid-sized executive jet and the way it turned suggested  it was being aimed deliberately at a target."
• There is much more information about Maurice Greenberg's  ties to 9-11 in "The Architecture of Terror: Mapping the Israeli  Network Behind 9-11."
•  

    

  Christopher Bollyn
• Please support my research and writing. 

  Donate by Pay Pal to: 

  bollyn@bollynbooks.com

63 more annotations...

• The coming 1-world currency
• Some set 2010 as date for monetary union
• Posted: September 21, 2008
  3:28 pm Eastern
  
    <!--- copywrite only show on NON commentary pages as per joseph meeting 8/23/06 ------>   <!-- copyright --> © 2008 WorldNetDaily 
• The following report is excerpted from Jerome Corsi's Red Alert,
• On Wednesday, finance chiefs of five of the six-member, oil-rich Gulf Cooperation Council approved a proposal to create a monetary union as a move toward adopting a single currency, according to the AFP.
• The six Islamic states constituting the Gulf Cooperation Council are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Oman pulled out of the agreement last year.
• Five states in the compact have agreed to set 2010 as the target date for the creation of a monetary union and the adoption of common currency.
• The emergence of an Islamic single currency among these oil-rich Middle Eastern countries marks a significant step in the emerging worldwide movement to abandon national currencies in favor of regional currencies, along the model where the EU states have abandoned their national currencies in favor of the European Central Bank and the euro.
• In 2002, the finance ministers of the Gulf Cooperation Council states sought out the assistance of the European Central Bank, as the model for their single currency, according to BBC reports.

• The council was created in 1981 to promote the development of the member countries.

   

  The monetary union will entail the creation of a central bank to issue the single currency.
• At the Wednesday meeting in the Saudi Red Sea city of Jeddah, the finance and economy ministers reviewed the European Union's response to the council's view on eliminating obstacles that have blocked a long-stalled free trade agreement with the EU.
• Progress was also made on key convergence factors required to underpin the common currency, including setting the ratio of budget deficit and public debt to the gross domestic product, target interest rates and reserve requirements.
• Progress yet remains in reaching a consensus on inflation, the last remaining stumbling block to creating the common currency.
• International Monetary Fund Chief Dominique Strauss-Kahn, who met with the Gulf Cooperation Council finance ministers in Jeddah, hailed the move by the Gulf states toward economic integration, though he continued to express doubts the single currency would be adopted within two years.

  • IMF involved..of course
• "Achieving monetary union by 2010 will be a major challenge, as much remains to be done to enable the creation of a single currency within two years," Straus-Kahn.
• "Overcoming the current inflationary pressures, developing a clear vision of the powers of the future common central bank, choosing an exchange regime of the common currency, and harmonizing financial regulations and structures will be critical in this process."
• One factor easing the transition toward a single currency is that the six Gulf Cooperation Council member states all currently peg their currencies to the U.S. dollar.

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• We need international regulation to protect global economy, Brown tells world leaders
• Gordon Brown uses New York meeting to promote his plan for installing international regulator to survey world markets
• • Patrick Wintour 
   
  •   guardian.co.uk, 
   
  • Thursday September 25 2008
• Gordon Brown is promoting his plan for an international regulator to oversee the international financial markets and prevent further economic turbulence during talks with world leaders in New York.
• The prime minister convened a meeting of leaders - including Spanish prime minister Jose Zapatero, European commission president Jose Barrroso, Australian prime minister Kevin Rudd, Brazilian president Luiz Inacio Lula da Silva and Danish prime minister Anders Fogh Rasmussen - to discuss the global credit crisis at in the Waldorf hotel last night.
• On his way to New York, Brown revealed he was examining the way British pension funds facilitate short selling by lending their stock to hedge funds.
• Brown praised the bail out of Wall Street, saying it was necessary to stop the financial institutions freezing up by removing illiquid or so-called toxic assets.

  • I seem to recall we Americans fighting a war 200 hundred years ago to get rid of pontificating Brits,standing on American soil, telling we Americans what we need to do!
  Add Sticky Note
• The prime minister is fighting for a multi-part package with world leaders, but has no meeting scheduled with senior US Treasury figures as they battle in Washington with Congress to win legislative approval for the $700bn package.
• He has called for international regulation, greater transparency and responsibility in executive bonuses to encourage longer-term decision making.
• Brown believes the IMF, working with the Financial Stability Forum - a group of central banks, regulators and international bodies - "should be at the heart of an early warning system for financial turbulence affecting the global economy".
• He has also been privately testing the water to see whether there are grounds for restarting world trade talks in the near future.
• Many world leaders are in New York for the special UN general assembly devoted to trying to meet the millennium development goals, as well as former US president Bill Clinton's annual Global Initiative meeting.

  • Collection of assholes!
  Add Sticky Note
• Initial polls suggest Brown's standing in the polls has been boosted by his promise in his conference speech to be the rock of stability in the credit crisis.

  • Brown running for the "money manager of the world" spot?
  Add Sticky Note
• Brown is determined to spend the two days in New York fighting both for more money for the world's poor and a weighty package to sort out the credit crisis.
• Brown will be aware that the economy can swing votes massively, and will have witnessed the Democratic presidential candidate, Barack Obama, enjoying a poll surge as the Republicans suffer from the incumbency factor.
• Brown insists he has done everything he needed to increase liquidity in UK markets, and privately complains the crisis could have been minimised had his proposals on international regulation been implemented earlier.
• He says his form of risk-based regulation has worked, but the scale of the new financial instruments outwitted the regulators.
• Brown is concerned that the costs of the credit crisis, as well as the economic down turn, will mean the developed world turns off the tap on funding to alleviate poverty.
• He has been working on ambitious packages on education, health and eradicating deaths from malaria by 2015.
• His aides, as well as some of the celebrities accompanying him, such as supermodel Elle Macpherson, have spoken of fears of donor fatigue as people struggle to pay the rent.
• Macpherson is determined to stress that aid does help fight poverty.
• The supermodel was accompanying Sarah Brown, the prime minister's wife, along with Sarah Ferguson, the Duchess of York, a dedicated charity worker, to a leader's wives dinner convened to raise awareness for Brown's White Ribbon Alliance and Safe Motherhood charity.

  • A pack of bullshit
  Add Sticky Note
• The dinner in Manhatten was co-hosted by Queen Rania of Jordan and Wendi Murdoch, the wide of the media mogul.

21 more annotations...

• You're Going To Guarantee A Depression!!! Ron Paul
• From: CSPANJUNKIEdotORG
     Added:  03 October 2008
    

   

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    http://cspanjunkie.org/ October 03, 2008 C-SPAN  

   

    

   

    http://cspanjunkie.org/
  October 03, 2008 C-SPAN  

    

    Category:   News & Politics

• NEW WORLD ORDER OUT OF CHAOS: THE COMING ECONOMIC DEPRESSION
• THEYLIVE2012
     August 06, 2008
• Are we facing Financial Armageddeon?
• I can't say I've ever lived through a Depression, but it sure looks like I will be in the near future, and it doesn't look like some major event is going to be avoided, and as always, the perpetrators will be the saviours once again, bringing the world under a more centralized framework, and thus begins the cashless society and the end of the middle class in the west, and hello to Socialism on a grand scale
• It would be nice to envision a society who stands up to this constant raping of our God given rights as Humans to exist on a planet, but really, I try to talk to people all the time who don't know or care what's going on, and the conclusion I come to is that things will get a lot worse before they get better....
• I don't know if it's the TV or the flouride in the water, but I find people have turned into such greedy, callous, petty, little swines...Just look at the faces of people next time you walk down a street...the air of self importance, wearing sun-glasses in the rain, googly eyed & eared over their Blackberries & radiation phones..feels like humanity lost, into a vortex of materialism and illusion.

5 more annotations...

• The Money Masters - How International Bankers Gained Control of America
• Mar 27, 2007 
• With the formation of the privately-owned Bank of England in 1694, the yoke of economic slavery to a privately-owned "central" bank was first forced upon the backs of an entire nation, not removed but only made heavier with the passing of the three centuries to our day.
• Nation after nation, including America, has fallen prey to this cabal of international central bankers.
• Their secret is that they have annexed from governments, monarchies, and republics the power to create the world's money..
• The development of fractional reserve banking practices in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths fraudulently to accumulate wealth.
• Also watch FIREWALL: (http://newsbrowser.org/firewall/) "The powers of financial capitalism had a far-reaching plan, 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..
• " THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical documentary that traces the origins of the political power structure that rules our nation and the world today.
• The modern political power structure has its roots in the hidden manipulation and accumulation of gold and other forms of money.

8 more annotations...

• Ron Paul's opening statement 2009.02.25
• peacespeech
     February 25, 2009
• Ron Paul opening's statement before Ben Bernanke testimony before House Financial Services Committee on 2009.02.25

2 more annotations...

• PLANNING THE STEPS TO WORLD GOVERNMENT
• By Joan Veon
    April 3, 2009
    NewsWithViews.com
• In   the book of Jeremiah, the prophet tells of the pending invasion of Judah   by the Babylonian king, Nebuchadnezzar.
• He records, “the snorting   of horses was heard in Dan.” Can you imagine an invasion of that   kind?
• You have been warned by reports that there is an invading army   on the way. As they get closer you can feel the ground move as the multitude   of well-trained soldiers and galloping horses get closer to your city.
• You are strangely aware that your world is going to change forever as   you hear the snorting get louder.
• That   is how I felt fourteen years ago when I read the 1994 United Nations   Development Report.
• I was absolutely shocked to read the Special   Contribution entitled “Global Governance for the 21st Century”   by the 1969 Nobel Prize for Economics, Jan Tinbergen.

• He wrote,

   

   

  Mankind’s   problems can no longer be solved by national governments.
• What is   needed is a World Government.
• This can best be achieved by strengthening   the United Nations system. In some cases, this would mean changing   the role of UN agencies from advice-giving to implementation.
• But   some of the most important new institutions would be financial—a   World Treasury and a World Central Bank.
• Just as each nation has a   system of income redistribution, so there should be a corresponding   ‘World Financial Policy’ to be implemented by the World   Bank and the World Central Bank.
• Some of these proposals are, no doubt,   far-fetched and beyond the horizon of today’s political possibilities.   But the idealist of today often turns out to be the realists of tomorrow.
• In   that report, it also laid out the changes to be made to the international   level of government in order to complete the necessary powers:
• They   included:
• A   World Central Bank which should have five functions: (1) stabilize   global economic activity, (2) lender of last resort to financial institutions,   (3) calm jittery financial markets, (4) regulate financial institutions   and (5) create and regulate new international liquidity.
• The   institution named to be the successor organization was the International   Monetary Fund.
• This new central bank would float a new issue of Special   Drawing Rights-SDRs and it would have “Global Macroeconomic Management”   worldwide. It would also acquire some regular control of international   banking activities.
• A   World Trade Organization to be the successor to the General   Agreement on Trade and Tariffs.
• An   Economic Security Council to “review the threats to global   human security and agree on required action.”
• It would have 11   permanent members and another 11 rotating members.
• They would not have   any veto and it would “coordinate activities of the UN agencies   and watch over the policy direction of all international and regional   financial institutions.”
• Other   components mentioned included a World Anti-Monopoly Authority, a World   Bank International Investment Trust and a World Bank Intermediate Assistance   Facility.”
• The report also called for a World Police force, an   International Court of Justice and a World Treasury.
• The   report stated, “It will probably take some time and probably some   international financial crisis—before a full-scare World Central   Bank can be created.”
• It appears we are there.
• For most people,   the things that I wrote about were ridiculous. Why? Because they were   not reading the same documents I was reading.
• At the 101 global meetings   I have covered around the world, these kinds. of ideas were considered   exciting and were being actively discussed, as they are now.
• Also   in 1994, The Bretton Woods Commission which was convened by Paul Volcker,   former Federal Reserve Chairman and James D. Wolfensohn who was the   Director of the World Bank met.
• Their report confirmed the 1994 Human   Development Report and called for “greater economic convergence   among countries.”

• With regard to a world monetary system, the   Commission stated,

     

     

  Any   future international monetary system should focus on the major international   currencies which dominate trade and global capital markets. For some   time to come these will be the dollar, the yen and the Deutsch mark   [or its successor European currency). The alternative to a new global   system is to continue the present non-system of loose ad hoc cooperation,   dominated by the G7 process (pages 4-5).
• Furthermore   the Bretton Woods Commission said the IMF “should be given a central   role to play in coordinating macroeconomic policies and in developing   and implementing monetary reforms.”
• They said that the IMF should   be given surveillance in order to secure a more stable exchange rate   system and that the Special Drawing Rights are needed—but not   now, and should be considered at some other time.”
• Interestingly   enough the Bretton Woods Commission was supported by numerous foreign   and American Banks which included, J.P. Morgan, Kidder Peabody International,   Inc., Merrill Lynch, Morgan Stanley Group, Salomon Brothers, The Ford   Foundation, The Carnegie Endowment for International Peace, The German   Marshall Fund and S. G. Warburg Group. Some of these banks no longer   exist and some even had trouble earlier in our current banking crisis.
• I   was seeing the plan for a future world governmental structure.
• I used   the 1994 Human Development Report as my blueprint for the future   and what I should look for.
• Then   in February, 2004, I interviewed U.S. Treasury Deputy Assistant Secretary   for Public Affairs, Tony Fratto at the G7 Finance Ministers meeting   in Boca Raton, Florida. Part of our discussion follows:
• Veon:   Given the drop in economic, financial, and trade barriers and as America   moves into a global economy what else needs to be done to complete this   global economy?
• Fratto:   There is still a lot more that needs to be done. There are many countries   around the world with trade barriers affecting financial services, affecting   capital flows, allowing for financial service firms to invest and be   welcomed into their countries and we are going to see a lot more of   that and it is part of the Free Trade Agreements and negotiations, regionally   and at the Doha Round [WTO level].
• Treasury plays a major role in negotiating   the investment chapters [of the WTO Agreement] and the chapters that   concern financial flow and we will see more of that.
• Veon:   The Bank for International Settlements set up the Financial Stability   Forum-FSF—how important is that in today’s economy to manage   a global system without borders?
• Fratto:   It is very important. We participate in the FSF regularly and it is   very important to help ensure that markets across the world are operating   properly and that financial services firms are coping with regulation   and changing landscape and financial services. So it is very, very important.
• Veon:   Given the fact that the economic, trade, financial, political and information   barriers between the nation-states have fallen, is there a deadline—2014   or 2020 for the completion of the global financial architecture?
• Fratto:   No one has put a specific date on it. From our perspective, we don’t   want to be bound by deadlines, but we want to see progress—steady   and every day on these issues. Things like Basel II, we are moving that   forward. The liberalization of rules for capital flows—you will   see more of that.
• Veon:   Foreigners have been willing to hold U.S. debt because it is a reserve   currency, is there any discussion of a shift to the dollar sharing the   reserve currency with the euro?
• Fratto:   I will not comment.
• Veon:   If 65% of central bank foreign exchange reserves are in dollars, will   you be discussing how much more they will be willing to hold of dollars?
• Fratto: I will let the ministers address those kinds of questions.
• As   you can see, the U.S. Treasury was actively working to expand a global   economic infrastructure.

  • The traitors in this country are in Washington DC & any surveillance of domestic terrorism should focus on Washington DC. That is where the nest of vipers coil and strike out from.
  Add Sticky Note
• The things that I was hearing on the international   level, along with the ideas of the 1994 Human Development Report,   were common knowledge to everyone except the American people.
• Later   on in November, I interviewed Paul Volcker and specifically asked him   about what he saw for the future.
• He told me, “What the world   needs is a global currency.” I asked if he meant “the Special   Drawing Right.” He refused to answer.
• Then in 2007, I interviewed   him again and asked about the Special Drawing Right. He told me that   it had not been on his lips for years. His actions and words are not   the same.
• As   a result of the 2008 Credit Crisis which continues in 2009, Congress   has been trying to understand the agenda behind the actions of the U.S.   Treasury and the Federal Reserve.
• In an exchange between Congressman   Ron Paul (R-TX) and Paul Volcker on February 24, 2009, Ron Paul specifically   asked him about his opening statement to the House Banking Committee   in which he talked about “strong coordination among national authorities,   unifying accounting standards, liquidity requirements, and ‘internationally   agreed to’ arrangements.”
• Congressman Paul wanted to know   if Volcker was referring to “a super IMF or if we were going to   revive the SDRs?
• What kinds of discussion are going on internationally   right now to devise a standard and are you a participant in these international   negotiations to come up with this new system?”
• Paul Volcker told   him, “No, No. I don’t know of any coherent or regular discussion   going on officially and there are very few going on unofficially in   terms of construction of the monetary system.”
• As they bantered   back and forth with Volcker refusing to give forthright answers, Volcker   said, “I can’t tell you the answers—they are not apparent.   Make no mistake. This is a unique moment in economic history where the   world is going on the basis of fiat currencies.”
• It was apparent   by his answers, his laughter at Ron Paul’s forthrightness, and   his body language that he had no desire to be honest in his global involvement.
• In short, we have the global crisis which the 1994 Human Development   Report said would probably need to happen in order to shift to   a global system of government.
• It is also glaringly noticeable that   the report was right on the money in terms of where the world needed   to move to complete a global integration of countries.
• Without the continuous   move to drop the barriers between nation-states that began with the   birth of the International Monetary Fund and the World Bank in 1944   and continued into the 1990s with the birth of the World Trade Organization   in 1994, it would not be possible to have the global financial integration   through common regulatory laws that the leaders of the G20 are calling   for.
• Furthermore, a world central bank, the Special Drawing Rights,   and an Economic Security Council would not be possible.
• However in a   world where there are no longer any barriers between nation-states,   total integration and a world government structure is possible.
• The   newly empowered G20 is actively pursuing greater powers and responsibilities   for the IMF.
• The IMF already has power over all countries, including   the U.S., as it does country financial assessments.
• Furthermore, the   Special Drawing Right was adopted by the Bank for International Settlements   in 2004 when they switched “for bookkeeping entries” as   I was told from the Swiss franc to the SDR.
• In 1999, when the Financial   Stability Forum while set up, was never given much public attention,   now it is at the center of the G20 discussions.
• Lastly, in conjunction   with the G20 meetings, a special commission at the United Nations headed   up by Dr. Joseph Stiglitz is calling for the G20 to become a fully recognized   Economic Security Council on par with the Security Council.
• The   bottom line is that the above comprises the moving of the ground beneath   us.
• Everything we have experienced as a sovereign country is in the   process of being changed.
• The enemy cannot have the advantage over you   in battle if you know his agenda. Do you hear the snorting of the horses   yet?
• © 2009 Joan Veon - All Rights Reserved
• Joan   Veon is a businesswoman and international reporter, who has covered over   100 Global meetings around the world since 1994. Please visit her website:   www.womensgroup.org. To get a   copy of her WTO report, send $10.00 to The Women's International Media   Group, Inc. P. O. Box 77, Middletown, MD 21769. For an information packet,   please call 301-371-0541
• E-Mail: t7w7g7@aol.com
• Website: www.womensgroup.org

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• THE GROUP OF TWENTY & THE EVOLUTION OF GLOBAL GOVERNANCE
• By Joan Veon
    September 28, 2009
    NewsWithViews.com
• In 1994   when I covered my first global meeting, there was a press briefing by   the Commission on Global Governance on their forthcoming report, Our   Global Neighborhood.
• The man giving the briefing was one of the co-chairs,   Sir Shridath Ramphal who was not only president of Guyana but also president   of the (British) Commonwealth Association.
• As I read the glossy brochure,   I thought he meant “global government” to which he replied   “No, no, no we mean global governance.”
• When I asked about   a global currency, he laughed and said, “No, not for a long time.”
• The   meeting recently held n Pittsburgh comprised the third meeting of the   heads of state and finance ministers from the Group of Twenty nations:   the developed countries led by the United States, Canada, Great Britain,   France, Italy, Japan, Russia and Germany and the top developing countries:   Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia,   South Africa, South Korea, and Turkey, as well as the European Union.
• Together, they represent 85% of the world’s Gross Domestic Product-GDP   and 80% of world trade.
• The   Group of Eight-G8 began meeting in 1973 when Richard Nixon called together   the leaders of four countries to determine how the world would be run   economically now that he had put the world currencies on a floating basis   when he removed the last ties the dollar had to gold in 1971.
• A formal   meeting was held in 1975 in France with five countries and soon it was   seven countries known as the Group of Seven until 1998 when Russia was   officially admitted.
• Since 1975, whatever decision these seven or eight   countries came to was law and if the rest of the countries of the world   knew what was good for them, they would follow suit.
• In short, the Group   of Eight acted as a “Global Board of Directors” for the world.
• Over the years, they expanded their purview to include every facet of   government: labor, education, transportation, trade, housing, finance   and the environment.
• Under   their auspices, the floating exchange between countries was perfected   to the point where it was easy to raid any countries currency which did   not do what they were suppose to do as mandated by the strong countries,
• there was the oil crises of the 1970s, and the fall of the shah of Iran   who was the peacekeeper of the Middle East.
• The final pieces were added   to the international infrastructure: the World Trade Organization, the   regional groups like the European Union and the Free Trade Areas of the   Americas, the International Criminal Court, and the tearing down of economic   barriers between the countries of the world by calling on the U.S. to   repeal the Glass-Steagall Act in 1999.
• In 1998,   the Group of Eight decided to become more integrated as they deviated   from just economic concerns to the daily concerns that each country faces:   health, education, growth, trade, etc.
• Tony Blair talked about the need   to work together on all these issues so that each country could help each   other and they could learn from one another. This is called integration,   not advice.
• The final Communiqué which the G8 issued (then the   G5) in 1975 was just a few pages to over one thousand pages in some years.   Indeed they became a venue of “global governance.”
• As a   result of the 2007-2009 Credit   Crisis, it was former President George Bush who called together the   leaders of the developing countries to meet with the leaders of the developed   countries last November.
• They instantaneously became their own powerhouse.   At the second meeting in London this past April, they empowered the International   Monetary Fund with $1.1T including a new offering of Special Drawing Rights-SDRs   and they changed the Financial Stability Forum to the Financial Stability   Board and greatly empowered its structure by giving them a plenary structure   and several Steering Committees.
• The Financial Stability Board is part   of the growing architectural pieces at the Bank for International Settlement   in Basel, Switzerland.
• In an   interview with Professor John Kirton of the University of Toronto who   heads up the unofficial secretariat of the Group of Eight and Twenty,   he said of global governance, “It has come to mean, steering, shaping   the global order through processes. Not only government of nation-states   assisted by intergovernmental organizations, but a broad array of actors   that have an important and legitimate place.”
• When I asked about   how they and their roles had changed, he responded that the G20 had “institutionalized   itself in an integrated way with the G8 so that next year in Canada, there   would be a coming together of the two global governance institutions.”
• It was announced in Pittsburgh, that next year the G20 would meet at the   same time that the G8 meets on economic issues.
• The G8 will continue their   oversight of all other issues they currently govern. This is no small   feat.
• Does anyone really understand the magnitude of what is happening?
• When   I asked Professor Kirton about the evolution of definitions of global   governance since 1994 when we first met, he said, “Yes, there are   many definitions for a global community [to be] attracted to a global   concept.
• [You have the] command hierarchy in sovereign nation-states,   [then there is] a middle range – a guiding steering process when   more formal institutions are necessary but a broad array of actors from   civil society have an important place.”
• In other words, the global   level is to be guided by civil society which includes non-governmental   organizations, “celebrity diplomacy” created by the rock star,   Bono, and others.
• In fact,   Professor Kirton was adamant that the United Nations has seen its day   since they have been unable to respond to a changing world.
• He pointed   to the UN Security Council which has the same five permanent members in   today’s world and that it does not even include Japan (G8 member)   or China and any of the other developing countries.
• The   truth of the matter is that the coming together of the major developing   countries with the G8 is a turning point in world history.
• If Bush is   copying Nixon who created the G8, the truth of the matter is that we have   continued to have serious economic crises. But it also points to a stronger   power over the nation-states: the presidents and prime ministers who will   ask their governments to implement what they have agreed to.
• It does point   to a world governmental structure in which the laws of the nation-states   have and are being changed to conform to what is agreed to on the global   level.
• It leaves out the poor countries of the world which have no voice   in this newly empowered governance structure.
• As you study the economics of the G20,   they have a total GDP of $47T and public debt of $29T or 63%. Now we can   talk all we want about global governance, interdependence, etc. but the   truth of the matter is that there is more than one way to conquer a country.
• It also   points to a shift in world power.
• In the old days, it was a physical invasion, brute force, end of story.   But in today’s electronic society, it is through banking, the stock   exchange, the bond exchange, and the derivatives market.
• Basically, there   has been no physical invasion, no black helicopters and no physical carnage.   Today, it is debt.
• What difference does it make if the house has no or   little equity versus the finances of a country?
• The Group of Twenty is   indebted to the central bankers of the world.
• The agenda of the United   Nations, the G8 or the G20 is basically a front for the real powers that   run the world: the central banks which are private corporations that lend   money to governments by printing it.

  • The old Rothschild scheme
  Add Sticky Note
• The   bottom line: the United Nations and the G8 have not brought or kept world   peace, they have not prevented war and neither have they improved the   finances of any country.
• Furthermore, they have not improved the state   of the world either.
• The only thing they have done is set up an infrastructure   that reduces the power and sovereignty of the nation-state.
• In essence   they have de-stabilized the world.
• Who really runs the country and the   world? He who has the gold makes the rules and it is not governments!
• © 2009 Joan Veon - All Rights Reserved

• Joan   Veon is a businesswoman and international reporter, who has covered over   100 Global meetings around the world since 1994. Please visit her website:   www.womensgroup.org. To get a   copy of her WTO report, send $10.00 to The Women's International Media   Group, Inc. P. O. Box 77, Middletown, MD 21769. For an information packet,   please call 301-371-0541

   

  E-Mail: t7w7g7@aol.com
   
    Website: www.womensgroup.org

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• CAUTION: Crash/Collapse Dead Ahead Say Faber, Rogers, Dent and Celente
• Author: Mac Slavo

  <!-- end author div --> 

  - October 2nd, 2009

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• After a massive upswing in US stocks over the last six months, the recent rally may finally be coming to an end.
• It seems that the trend of rising stocks on bad or better than expected news may be in a reversal, as evidenced by market participants’ caution over the last couple of weeks.
• For those that follow contrarian investors like Marc Faber, Jim Rogers, Gerald Celente and Harry Dent, this should come as no surprise.
• Marc Faber, publisher of the Gloom Boom & Doom Report, advised his subscribers and followers to take positions in US tech stocks, the banking sector and hard assets at the bottom of the markets in early March of 2006.

• However, he did provide a word of caution on March 16, 2009, making it known that while he was a short-term bull on stocks, that eventually, the economic fundamentals would catch up:

   

  “probably a total collapse in the second half of the year when it becomes clear that the economy is a total disaster.”

• As recently as September 3rd, on Delhi TV, he made another call, essentially telling investors to get out:

   

  “I believe in the next 10 days to two weeks we’ll get big moves in markets. And I wouldn’t be surprised if the Dollar would for a change strengthen and equity markets would correct and possibly quite meaningfully so.”

• Gerald Celente, Trends Research forecaster and contrarian thinker, advised listeners of the Jeff Rense show on September 23rd to look out below, calling it the Christmas Crash. He believes that the next collapse will come quickly, sometime this Fall, but as late as January or February of 2010:

   

  “It’s going to really be an ugly scene. We are really encouraging people now to take pro-active measures and prepare for the worst. Don’t spend an extra dime.”

• Jim Rogers, who is well known for making millions during the recession and commodities boom of the 1970’s, is also hesitant about acquiring more equities. He is an avid US Dollar bear, but in an interview on September 30th, he turned bullish on the dollar in the short term. His advice?

   

  “I am not buying shares anywhere in the world as we speak.”
• Finally, we have economist and cyclical analyst Harry Dent Jr., who some may know for having called the real estate Bubble-Boom, and subsequent crash, years before it happened in his book The Next Great Bubble Boom.
• Dent was also bullish on the Dow, calling for it to reach between 9450 and 10,500 after the March lows of 2009. Like Faber, Dent also cautioned investors to stay vigilant once the 9000 mark was breached.

• In a recent Economic Forecast Alert to subscribers, Dent indicated that the tide was changing:

   

  “The markets are very overstretched here and we think it is very likely that we are seeing a top just above 9,800 on the Dow today.

   

  This is the best intermediate term play we have seen in a long time. Shorting the stock market (for example, ETF symbol SH) could yield 50% to 60%+ gains over the next year with a 5% to 15% downside if the markets keep edging up for awhile, even to extremes.”
• Though we continue to see most mainstream analysts talk the bull market talk, it looks as if the bull may be in trouble, especially if individual investors realize what all of the big boys talking their books already know - that the economic fundamentals are simply horrific and the markets are already pricing in GDP growth of over 5% for the next 4 quarters.
• Considering that GDP grew at 0.7% in the 2nd quarter, that seems highly unlikely. Some estimates also suggest the the P/E of the S&P 500 right now is at unprecedented levels of over 100!
• As of today, it looks as if investor focus is shifting from stocks and commodities into what some consider to be short-term safehaven assets, such as US Treasury Bills/Notes/Bonds.
• The yield on the 10 yr is at 3.15% as of October 2nd, significantly down since August 7th’s 3.85%, suggesting that safety, not risk, is now the name of the game.

• Interestingly, and unlike November of 2008, gold seems to be holding strong at around $1000, though this may change if the US Dollar rises, as Jim Rogers, Faber and Dent have suggested it may.

   

  For those still in equities, we believe Tyler Durdern at Zero Hedge said it best, “Go long here at your peril.”

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• Oct 6, 2009
• Obama's permanent depression
• By Spengler
• President Barack Obama may be remembered for permanent depression, the way that   Leon Trotsky's name is linked with permanent revolution.
• Fiscal stimulus   combined with near-zero interest rates have proven to be a toxic cocktail for   the United States, the macroeconomic equivalent of barbiturates and alcohol.
• Keynesian spending creates a deficit that sucks all the available capital out   of the grassroots economy and transfers it to the Treasury market.
• Easy funding   terms from the Federal Reserve allow financial institutions to make money in   government bonds while shutting off credit to the rest of the economy.
• It's   classic crowding out, in which the government's misguided effort to spend its   way out of recession pushes the productive economy deeper into the hole.
• Panic is starting to take hold at the Obama White House over the
• relentless deterioration of the job market.
• US jobs in September declined by   about 263,000 jobs, worse than the 175,000 drop expected by Wall Street   economists.
• To the 15.1 million on the official unemployment count, add 9.2   million "involuntary part-time workers" and 2.2 million who were dropped from   the tally because they had not sought work in the past month, and the   unemployment rate would rise to 17.1 million.
• That doesn't include another three million long-term discouraged workers -   those who want to work but who have long since stopped looking. That would take   the number up to 20%.
• In past recoveries, a number of economists observed, all   the job growth came from small business, but small business is lagging in the   present crisis.
• The financial crisis crushed the entrepreneurs, as surely as   Joseph Stalin crushed the kulaks, the relatively affluent peasants.
• Obama inherited a crisis, to be sure, but he has made it much worse.
• America is   in the kind of trap into which Japan fell during the "lost decade" of the   1990s, whence it never really emerged.
• In the Keynesian world of Larry Summers,   director of the White House's National Economic Council, and the Obama   economics team, the problem is that Americans save too much and spend too   little. To restart the economy, the government has to spend money for them -   hence the US$800 billion stimulus package.
• The first is that it is   simply a matter of what John Maynard Keynes called the "marginal propensity to   consume". Americans have saved almost nothing during the past 10 years, relying   instead on home equity that now has vaporized.
• There are two things terribly wrong with this notion.
• The proportion of Americans over   60 will jump to 25% from 19% during the next 10 years, an unprecedented shift.
• Americans must save to compensate for past profligacy, from a lower starting   point after the destruction of so much wealth, and with lower prospective   returns. The demand for savings is bottomless.
• The second problem is that even if the government borrows money, the money has   to come from somewhere.
• Right now it's coming from households who choose to   save rather than borrow, and from the balance sheet of the Federal Reserve or   the banks, as well as foreign investors.
• A quick walk through the numbers puts the problem in context. 
   
    Lenders to the US federal government, first half 2009.
   
                                     

  All Federal borrowing   (annualized, in $US billions)	$1,667.4
  Households	$709.4
  Rest of the world	$545.6
  Fed balance sheet	$368.1
  Banks	$44.3
  Broker dealers	$24.4
• Obama's government borrowed $1.7 trillion at an annual rate, or about 12% of   gross domestic product (GDP). Households coughed up less than half of that as   they shifted from spending to savings.
• Foreigners bought $545 billion, a bit   less than a third of the total. The Federal Reserve and the banks bought $400   billion worth, or about a quarter of the total.
• Household purchases of Treasuries kept spending low and the economy   contracting.
• Even with this massive shift, though, the central bank still had   to print money.
• Most alarming is that the Federal Reserve's rate of purchase of   Treasuries is accelerating: 
   
    Federal Reserve monetization of government debt, 2009
   
                       

  Fed purchases of treasuries    (annualized, in $US billions)
  First quarter	$88.9
  Second quarter	$647.4
  Third quarter est	$676.1
• The rest of the world doesn't want an additional half-trillion dollars worth of   Treasury securities each year; it doesn't want the Treasuries it now has to   own.
• Households can't continue to put a trillion dollars worth of Treasuries   away per year - that's 8% of all personal income.
• That leaves the Fed and the banking system.
• The central bank bought Treasuries   during the third quarter at an annual rate of nearly $700 billion, and provided   nearly zero-interest money to banks and broker-dealers, who bought a good deal   more.
• The Fed is buying much more than Treasury securities, to be sure; during   2009, it bought a remarkable $700 billion of mortgage-backed securities in a   fruitless attempt to stimulate the housing market.
• Despite the unprecedented largesse of the Federal Reserve, banks are reducing   risk and cutting off the small-business sector in particular.
• During the third   quarter, US commercial banks added Treasury securities to their balance sheets   at a $350 billion annual rate.
• But they cut loans to business at a $300 billion   annual rate. Extremely cheap funding makes it possible for a bank to finance   the purchase of a two-year Treasury note paying 0.86%, or a two-year AAA   municipal note yielding 0.75%, with overnight money costing 0.25%.
• Cheap money   turns the commercial banks into an extension of the balance sheet of the   Federal Reserve.
• The near-zero interest rate allows banks to shift their balance sheets towards   nearly riskless assets, and reduce risky commercial and industrial loans.
• Cheap money has crushed the dollar, and the sinking dollar has buoyed equity   prices, perversely enough.
• American assets are cheaper to foreign investors, and as the dollar fell   against other major currencies, foreign investors bought more American stocks:
• In short, the rise in US stock prices has less to do with economic recovery   than with the drop in the global price of American assets. The dollar can only   fall so far, however, because other currencies can only rise so far before a   rising currency parity damages competitiveness. This game seems to be played   out for the moment.
• This outcome was perfectly foreseeable a year ago; in fact, I forecast just   this result last November (see   Who will finance America's deficit?, Asia Times Online, November 13,   2008).
• The parallels between America in 2009 and Japan   in 1989 are uncanny.
• An asset price bubble has collapsed, just before a tsunami   of prospective retirements that the asset bubble was supposed to fund.
• Demand   for savings is bottomless, and the government satisfies demands for savings by   running a huge deficit and issuing debt.
• The crippled banking system borrows at   an interest rate of zero and buys government securities. And the economy   shrivels up and dies.
• There is only one way   to drastically increase savings while maintaining full employment, and that is   to export.
• Japan, though, had one advantage: it knew how to export.
• America has neither the export capacity nor the customers. It could   get them, but that is a different story.
• Francesco Sisci and I told it here   US's road to recovery runs through Beijing (Asia Times Online, November   15, 2008).
• Spengler is channeled by David P Goldman, Associate Editor of First   Things. 
   
    (Copyright 2009 Asia Times Online (Holdings) Ltd. All rights reserved. Please   contact us about   sales, syndication and   republishing.)

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• Microchip Implant to Link Your Health Records, Credit History, Social Security
• By   Jim Edwards  | Oct 5, 2009
• Novartis and Proteus Biomedical are not the only companies hoping to implant microchips into patients so that their pill-popping habits can be monitored.
• VeriChip of Delray Beach, Fl., has an even bolder idea: an implanted chip that links to an online database containing all your medical records, credit history and your social security ID.
• As this presentation to investors makes clear, the chip and its database could form the basis of a new national identity database lined to Social Security and NationalCreditReport.com.

• The VeriMed Health Link homepage describes the chip:

   

  … a tiny, passive microchip (the nation’s first and only microchip cleared for patient identification by the U.S. Food & Drug Administration) and a secure, private online database that links you to your personal health record. Your Health Link is always with you and cannot be lost or stolen.

• That database can be accessed by doctors and nurses:

   

  About the size of a grain of rice, the microchip is inserted just under the skin and contains only a unique, 16-digit identifier.
• The microchip itself does not contain any other data other than this unique electronic ID, nor does it contain any Global Positioning System (GPS) tracking capabilities. And unlike conventional forms of identification, the Health Link cannot be lost, stolen, misplaced, or counterfeited. It is safe, secure, reversible, and always with you.

• But VeriChip’s ambitions don’t end there, as this diagram indicates:

   

  
• Yes, it shows your Health Link chip linked to Google, Microsoft, employers and insurers.
• The company also sees the VeriMed Health Link linked to your “identity security services,” through a separate VeriChip product, PositiveID.

• This slide show states:

   

  PositiveID puts people in control of their personal health records and financial information, bridging the gap between secure medical records and identity security

• PositiveID dovetails with Health Link:

   

  Cross marketing opportunities: cross-sell the NationalCreditReport.com customer base the Health Link personal health record and vice-versa

   

  Differentiates PositiveID as the only personal health record that offers identity theft protection
• It’s a future in which your doctor tags you like a dog with a microchip that allows anyone with the right privileges to look at your medical records, credit history, social security number (see slide 6), and anything else that stems from that.
• Suddenly, storing medical records on paper in locked cabinets inside a single doctor’s office starts to look like something we may not want to rush to give up.
• Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an  email.

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• George Soros: Billionaire for the Left
• By: Lowell Ponte
      FrontPageMagazine.com | Thursday, November 13, 2003
• PONTEFICATIONS

• UNDER OUR CONSTITUTION HE CAN NEVER BE PRESIDENT,

  but if any Democrat gets elected President in 2004 it will be because this foreign-born billionaire kingmaker, George Soros, pledged to raise $75 million to defeat incumbent Republican President George W. Bush.
• “George Soros has purchased the Democratic Party,” said Republican National Committee spokeswoman Christine Iverson.
• Since he who pays the piper calls the tune, what tune will this international financier demand from the party and President his millions purchased? 
• What hidden agendas and interests, domestic and foreign, might be served? 
• Can any American trust a Democratic Party whose strings are pulled by this controversial Radical Left-inclined puppet-master?
• Soros funds an army of leftist foundations and enterprises.
• He reportedly provided $20 million in seed money for the Center for American Progress, described by the Wall Street Journal as “a new liberal think-tank that is financing the likes of Bush-hating pundit Eric Alterman” (of The Nation magazine).
• He has also helped fund and coordinate anti-Bush tactics with the Democrat-aligned, Gore-supporting ultra-leftist group MoveOn.org.
• Can parents keep their kids drug-free if a Democratic President must dance to the intoxicating tune of George Soros, who has donated millions to marijuana-decriminalization groups and initiatives? 
• Democrat and former Jimmy Carter Administration Secretary of Health and Human Services Joseph Califano called Soros “the Daddy Warbucks of drug legalization.”
• Can Israel survive, given the hostility that Jewish-born Soros has expressed toward the Jewish State?
• A global philanthropist, Soros has rarely donated to Jewish charities or causes. But in a November 5 speech to a conference of the Jewish Funders Network, Soros blamed the policies of President Bush and Israeli Prime Minister Ariel Sharon for the upsurge in worldwide anti-Semitism.
• Soros also blamed himself for the rise in anti-Semitism because he is one of the “Jewish financiers” who, in his agreement with the vicious words of just-retired Malaysian Prime Minister Mahathir Mohammad, “rule the world by proxy.”
• Abraham Foxman, National Director of the Anti-Defamation League, called it “absolutely obscene” that Soros blames Israel and Jews for anti-Semitism and used the rhetoric of anti-Semites in doing so.
• Said Foxman: “He buys into the stereotype…It’s blaming the victim for all of Israel’s and the Jewish people’s ills.”
• And what happened to longstanding Democrat demands that we pass “campaign finance reform” to get the “corrupting influence” of wealthy contributors out of politics?
• Days ago Democratic campaign frontrunner for the 2004 nomination Howard Dean, former Governor of Vermont, announced that he would decline public funding of his campaign to avoid the $45 million spending ceiling this would put on his primary campaign. (Dean has already raised $25 million.)
• Dean urges two million supporters to send him $100 apiece, but he surely does not expect this to happen. Dean is willing to run without federal matching funds only because he knows that big money can and will be provided to him by billionaire George Soros, who last September hosted a fundraiser at Dean’s Vermont home.
• (Dean’s wife and therefore children are Jewish, but he has moved away from America’s traditional bi-partisan support for Israel.
• This is probably part of what Soros likes about Howard Dean and would expect Dean to make U.S. policy if elected President.)
• But will the American people vote for a candidate and Democratic Party that George Soros rules by proxy?

  • Apparently so..They did in November 2008
  Add Sticky Note
• “A President Dean,” says a Wall Street Journal Editorial, “would owe far more chits to Mr. Soros than Vice President Dick Cheney has ever owed to Halliburton.  All this gives the lie to the reform promise to get big money out of politics….”
• Born in 1930 in Hungary, he watched Nazis march into his nation and kill relatives in a 1944 extermination of 440,000 Hungarian Jews.
• Who is this shadowy, controversial man George Soros? 
• He survived by pretending to be Ayran, and then witnessed Soviet Marxists replace the Nazis. “My experiences under Nazi and Soviet rule,” he says, “have sensitized me.”
• Soros’ father Tivador, a lawyer/publisher/writer, changed the family’s real last name, Schwartz, to Soros in 1936. 
• “Soros grew up in a family that was so detached from its Jewish roots,” summarized a Business Week reviewer of his biography, “that they even vacationed in Nazi Germany, with Tivador shrugging off ‘No Jews Allowed’ signs by telling his wife, ‘You are a foreigner, it’s not for you.’”
• After World War II, Soros fled alone as a poor 17-year-old immigrant to London, where he worked at a variety of small jobs. 
• “I broke my leg and was taken care of, free of charge, by the National Health Service,” recalled Soros with gratitude.

  • Well, this might explain a few things for us in 2009 America
  Add Sticky Note
• “I depended on government assistance.”  He also, with resentment, remembers from these years how little assistance various Jewish social welfare agencies he approached were willing to give him.
• Although he would later become a naturalized American citizen, Soros remains in social outlook very much a European and believer in the paternalistic neo-feudalism euphemistically called “democratic socialism” or “social democracy.”
• Soros in 1949 enrolled at the Fabian socialist London School of Economics (one of whose later students would be adept businessman Mick Jagger of the Rolling Stones).
• Soros there became friends with Sir Karl Popper, philosopher and author of the 1945 book The Open Society and Its Enemies. He graduated LSE in 1952.
• From his interpretation of Popper’s “open society,” Soros developed his own opaque philosophy.
• As described by former New York Times journalist (and Soros publication editor) Michael Kaufman in his 2002 biography Soros: The Life and Times of a Messianic Billionaire, “Soros had developed a contempt for tribal sectarianism of all kinds and found much of the zeal of pro-Israel Zionists to be unappealingly chauvinistic.”
• According to Kaufman, Soros described his own Jewishness thus: “It did not express itself in a sense of tribal loyalty that would have led him to support Israel.”
• As to Soros’ views concerning President Bush, Neil Hrab of the Capital Research Center has written, “Financial analyst and Soros friend Byron Wien thinks the financier may feel hostility toward all forms of ‘right-wing nationalism,’ perhaps as a consequence of growing up in Nazi-occupied Hungary.
• And Soros may believe a strong Left can be a good barrier to resurgent ‘far-right’ movements.” 
• What this overlooks, of course, is that the Nazis were a movement of the Left, not the Right. Nazi was a contraction of the German words for “national socialist.”  
• In the open society of America, young George Soros arrived on Wall Street in 1956 with $5,000 and quickly demonstrated a singular genius for investing others’ money and his own.
• This “Hungarian Horatio Alger” of financial sorcery came to be called “the greatest money manager in the world” by satisfied clients of his Quantum Fund.
• Soros was chief among the creators of the modern “hedge fund” through which investors are protected by diversified simultaneous bets for and against the economy in a variety of ways.
• But Soros also made a fortune by high-stakes gambles such as currency speculation in the world economy.
• In 1992, for example, he wagered $10 billion that by concerted attack he could devalue the British Pound. He won, pocketed at least $1.1 billion profit in a single day, and ever since has been called “the man who broke the Bank of England.” 
• (By this act of economic rape upon ordinary British working class savings accounts, Soros repaid Britain for the generosity and help it gave to him as a struggling young immigrant with a broken leg.)

  • Sounds like he is a certified, royal (no pun intended) son of'a bitch
  Add Sticky Note
• In the process of destroying the purchasing power of the British Pound, Soros dealt a political blow to the government of British Prime Minister John Major from which the Tory Party has yet to recover.
• This is the same kind of damage he hopes to inflict in 2004 on America’s Republican Party.
• Businesspeople tend to admire Soros for his power and skill, wrote Andrew Leonard at Salon.com, and liberals tend to applaud his generosity to leftist causes. But what if it had been Osama bin Laden using financial machinations to break the Bank of England?
• Soros’ “life raises some troubling questions about the autonomy of capital in the era of globalization,” writes Leonard. “Make enough money, and you don’t have to obey anyone’s rules.”
• Similar high-roller global financial machinations by Soros over the years have led to accusations that he caused the economic collapse in Asia in 1997 and, according to one anti-Semitic publication, the near-50 percent devaluation of the Russian Ruble in 1998.

  • Is Soros then behind America's current (2009) dollar troubles?
  Add Sticky Note
• Soros “was involved in the Mexican bailout with their President Ernesto Zedillo,” reported the Pittsburgh Tribune-Review last July, adding, “Most recently, Soros worked on the Euro, pushing the U.S. dollar down to a near all-time low.” 
• Soros has, in other words, caused you to pay more for every imported product you buy.
• Soros’ 1998 book The Crisis of Global Capitalism: Open Society Endangered called for more government controls to prevent abuses and shortsightedness by “amoral” multinational capitalists. In effect, Soros’ message was, “Stop me before I kill again!”
• But he was not so sanguine in 2002, when a French court found him guilty of insider trading and fined Soros 2.2 million Euros (roughly $2 million).
• He told reporters he would appeal the verdict but as of yet has not, dismissing the court’s ruling as “a queer decision.” To this multi-billionaire, a $2 million fine is a trifle, a mere slap on the wrist.
• Today Forbes Magazine ranks him the 28^th richest person in the United States, with an estimated fortune worth $7 billion. 
• This comes after Soros has given away an estimated $5 billion to causes ranging from the Solidarity Movement in Poland to Vaclav Havel’s dissident movement in Czechoslovakia and to Leftist groups in the United States (including the Democratic Party). 
• (When another eccentric named Ross Perot in 1992 bought his own political party and used it in a rumored secret scheme with Bill and Hillary Clinton to divide the vote and thereby conquer incumbent Republican President George H. W. Bush, Perot was only the 44^th richest American after making billions on government contracts.
• Bill and Hillary were rumored to have promised him all the computer contracts for their socialized medicine system, thereby making Perot the single richest man in America.)
• Soros is not just a nominal capitalist made rich through Communist connections, as was Armand Hammer (who we now know delivered millions of dollars from Moscow to the Communist Party USA).
• Soros may dislike President Bush and American dominance in the world, but he generally prefers private institutions to government bureaucracies and favors local governments over the United Nations.
• In his own eccentric way, Soros appears to be an opportunistic, misguided idealist whose warped, surrealistic childhood produced a warped view of society.
• And now what Soros calls “the central focus of my life” is defeating President Bush, an undertaking he deems “a matter of life and death.”
• “America, under Bush, is a danger to the world,” Soros told Laura Blumenfeld of the Washington Post.  “Then he smiled,” she wrote, “’And I’m willing to put my money where my mouth is.’”
• Neoconservatives in the Bush Administration are viewed by Soros as “a bunch of extremists guided by a crude form of social Darwinism.”
• “When I hear Bush say, ‘You’re either with us or against us,’ it reminds me of the Germans,” said Soros, likening President Bush to the Nazis and their slogans such as “Der Feind Hort mit,” “The enemy is listening.”
• “Bush feels that on September 11^th he was annointed by God,” Soros told Blumenfeld. “He’s leading the U.S. and the world toward a vicious circle of escalating violence.”
• Soros puts these arguments in a new book titled The Bubble of Global Supremacy, due out in January. His publisher PublicAffairs Press promises an “intensely critical analysis of the Bush administration’s foreign policy.” An excerpt appears in the December issue of the Atlantic Monthly magazine.
• Because he wants “regime change” in the United States and opposes our intervention in Iraq, Soros is supporting Howard Dean in particular and the more left-wing Democratic candidates in general.
• But what does it say about Dean and the Democratic Party that they have sold their souls to this strange Euro-billionaire?
• George Soros advocates legalized marijuana, hates and boycotts Israel, is regarded by many as anti-Semitic, is a recently-convicted inside trader and global financial manipulator who seeks an end to American supremacy – that is, the global debasement and weakening of the United States? 
• Is this who American voters want as the puppet-master and power behind the throne directing foreign and domestic policies of the United States of America?
• Indeed, will voters support a party that only months ago was screaming for campaign finance reform to prevent the rich from dominating our politics –
• but that now has rejected all such reform and instead sold itself to a single eccentric billionaire whose anti-American views resemble those of France? 
• Is this what Democrats now call democracy? 
• Perhaps they should end the pretense and just rename themselves George Soros' Party. 
• Or the Democratic Party and its candidates can reassert their integrity by denouncing George Soros and refusing to take or benefit from this oddball's money. 
• Mr. Ponte co-hosts a national radio talk show Monday through Friday 6-8 PM Eastern Time (3-5 PM Pacific Time) on the Genesis Communications Network. Internet Audio worldwide is at GCNlive .com. The show's live call-in number is 1-800-259-9231. A professional speaker, he is a former Roving Editor for Reader's Digest.

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• Dollar facing 'power-shift': analysts
• Oct 11 03:18 PM US/Eastern
• The dollar's position as the world's leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.
• A report last week in The Independent claiming that China, Russia and Gulf States are among nations prepared to ditch the dollar for oil trades has heightened the uncertainty surrounding the US currency's future.
• The dollar slumped against rivals last week in the wake of the British daily's controversial report.
• "The US dollar is being hurt by the continued talk of a shift away from a dollar-centric world," said Kit Juckes, an analyst at currency traders ECU Group.
• "Three conclusions stand out very clearly. Firstly, the shift in economic power away from the G7 economies is continuing. "Secondly, there is a growing acceptance amongst those winners that one consequence of this power shift will be to strengthen their currencies.
• "And finally, as long as the US economy is not strong enough for any rise in interest rates to be conceivable for a long time, the dollar's underlying downtrend will remain in place," added Juckes.
• The Independent, under the front-page headline "The Demise of the Dollar", reported last Tuesday that Gulf states, together with China, Russia, Japan and France, were considering replacing the dollar as the currency for oil deals.
• "In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil," wrote The Independent's Middle East correspondent Robert Fisk.
• They would switch "to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar," added Fisk, citing Gulf Arab and Chinese banking sources.
• The report was denied by a host of countries, including Kuwait, Qatar and Russia, while France dismissed it as "pure speculation."
• Even so, the United Nations itself last week called for a new global reserve currency to end dollar supremacy, which had allowed the United States the "privilege" of building up a huge trade deficit.
• UN undersecretary-general for economic and social affairs, Sha Zukang, said "important progress in managing imbalances can be made by reducing the (dollar) reserve currency country's 'privilege' to run external deficits in order to provide international liquidity."
• Zukang was speaking at the annual meetings of the International Monetary Fund and World Bank, whose President Robert Zoellick recently warned that the United States should not "take for granted" the dollar's role as preeminent global reserve currency.
• Meanwhile at a G20 summit in Pittsburgh last month, world leaders unveiled a new vision for economic governance, with bold plans to fix global imbalances and give more clout to emerging giants such as China and India.

• Following the summit, US Treasury Secretary Timothy Geithner repeated Washington's commitment to a strong dollar.

  But last week the finance chief was left to watch as traders used The Independent's report as an opportunity to push lower the troubled US unit.
• The report "has helped concentrate the minds of traders and investors alike, and has given them another excuse to take the dollar lower," GFT Global Markets analyst David Morrison told AFP.
• "Despite what the Fed and other central bankers say, a weaker dollar is desirable because it is necessary to rebalance the global economy.
• "As long as the decline is gentle and orderly, then they're happy. But aggressive selling would spook the markets," he added.
• Commerzbank currency analyst Antje Praefcke agreed that the market's reaction was significant because it showed that the dollar was on a downward trajectory.
• "The questionable article in the Independent was of course disclaimed," Praefcke said.
• "It is nonetheless an interesting study of the pscychological factors which are currently putting pressure on the dollar.
• Even if conspiracy theories turn out to be nonsense, the dollar is subsequently able to retrace only some of its losses."

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• Dollar Reaches Breaking Point as Banks Shift Reserves
• Oct. 12 (Bloomberg)
• Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.
• Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg.
• Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.
• World leaders are acting on threats to dump the dollar while the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the economy as long as it doesn’t drive away the nation’s creditors.
• The diversification signals that the currency won’t rebound anytime soon after losing 10.3 percent on a trade-weighted basis the past six months, the biggest drop since 1991.
• “Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it,” said Steven Englander, a former Federal Reserve researcher who is now the chief U.S. currency strategist at Barclays in New York.
• “It looks like they are really backing away from the dollar.”
• Sliding Share
• The dollar’s 37 percent share of new reserves fell from about a 63 percent average since 1999. Englander concluded in a report that the trend “accelerated” in the third quarter. He said in an interview that “for the next couple of months, the forces are still in place” for continued diversification.
• America’s currency has been under siege as the Treasury sells a record amount of debt to finance a budget deficit that totaled $1.4 trillion in fiscal 2009 ended Sept. 30.
• Intercontinental Exchange Inc.’s Dollar Index, which tracks the currency’s performance against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, fell to 75.77 last week, the lowest level since August 2008 and down from the high this year of 89.624 on March 4. The index, at 76.104 today, is within six points of its record low reached in March 2008.
• Foreign companies and officials are starting to say their economies are getting hurt because of the dollar’s weakness.
• Toyota’s ‘Pain’
• Yukitoshi Funo, executive vice president of Toyota City, Japan-based Toyota Motor Corp., the nation’s biggest automaker, called the yen’s strength “painful.”
• Fabrice Bregier, chief operating officer of Toulouse, France-based Airbus SAS, the world’s largest commercial planemaker, said on Oct. 8 the euro’s 11 percent rise since April was “challenging.”
• The economies of both Japan and Europe depend on exports that get more expensive whenever the greenback slumps.
• European Central Bank President Jean-Claude Trichet said in Venice on Oct. 8 that U.S. policy makers’ preference for a strong dollar is “extremely important in the present circumstances.”
• “Major reserve-currency issuing countries should take into account and balance the implications of their monetary policies for both their own economies and the world economy with a view to upholding stability of international financial markets,” China President Hu Jintao told the Group of 20 leaders in Pittsburgh on Sept. 25, according to an English translation of his prepared remarks. China is America’s largest creditor.
• Dollar’s Weighting
• Developing countries have likely sold about $30 billion for euros, yen and other currencies each month since March, according to strategists at Bank of America-Merrill Lynch.
• That helped reduce the dollar’s weight at central banks that report currency holdings to 62.8 percent as of June 30, the lowest on record, the latest International Monetary Fund data show.
• The quarter’s 2.2 percentage point decline was the biggest since falling 2.5 percentage points to 69.1 percent in the period ended June 30, 2002.
• “The diversification out of the dollar will accelerate,” said Fabrizio Fiorini, a money manager who helps oversee $12 billion at Aletti Gestielle SGR SpA in Milan.
• “People are buying the euro not because they want that currency, but because they want to get rid of the dollar.
• In the long run, the U.S. will not be the same powerful country that it once was.”
• Central banks’ moves away from the dollar are a temporary trend that will reverse once the Fed starts raising interest rates from near zero, according to Christoph Kind, who helps manage $20 billion as head of asset allocation at Frankfurt Trust in Germany.
• ‘Flush’ With Dollars
• “The world is currently flush with the U.S. dollar, which is available at no cost,” Kind said. “If there’s a turnaround in U.S. monetary policy, there will be a change of perception about the dollar as a reserve currency. The diversification has more to do with reduction of concentration risks rather than a dim view of the U.S. or its currency.”
• The median forecast in a Bloomberg survey of 54 economists is for the Fed to lift its target rate for overnight loans between banks to 1.25 percent by the end of 2010. The European Central Bank will boost its benchmark a half percentage point to 1.5 percent, a separate poll shows.
• America’s economy will grow 2.4 percent in 2010, compared with 0.95 percent in the euro-zone, and 1 percent in Japan, median predictions show. Japan is seen keeping its rate at 0.1 percent through 2010.
• Central bank diversification is helping push the relative worth of the euro and the yen above what differences in interest rates, cost of living and other data indicate they should be.
• The euro is 16 percent more expensive than its fair value of $1.22, according to economic models used by Credit Suisse Group AG. Morgan Stanley says the yen is 10 percent overvalued.
• Reminders of 1995
• Sentiment toward the dollar reminds John Taylor, chairman of New York-based FX Concepts Inc., the world’s largest currency hedge fund, of the mid-1990s.
• That’s when the greenback tumbled to a post-World War II low of 79.75 against the yen on April 19, 1995, on concern that the Fed wasn’t raising rates fast enough to contain inflation.
• Like now, speculation about central bank diversification and the demise of the dollar’s primacy rose.
• The currency then gained 26 percent versus the yen and 25 percent against the deutsche mark in the following two years as technology innovation increased U.S. productivity and attracted foreign capital.
• “People didn’t like the dollar in 1995,” said Taylor, whose firm has $9 billion under management. “That was very stupid and turned out to be wrong. Now, we are getting to the point that people’s attitude toward the dollar becomes ridiculously negative.”
• “The world is changing, and the dollar is losing its status,” said Aletti Gestielle’s Fiorini. “If you have a 5- year or 10-year view about the dollar, it should be for a weaker currency.”

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• Dollar loses reserve status to yen & euro

• By PAUL THARP

   

    Last Updated:  3:16 AM, October 13, 2009
• Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
• Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves,
• The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
• Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.
• Bernanke could go down in economic history as the man who killed the greenback on the operating table.
• After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.
• "He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
• Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.
• They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third.
• Yesterday, the dollar had a mixed performance, falling slightly against the British pound to $1.5801 from $1.5846 Friday, but rising against the euro to $1.4779 from $1.4709 and against the yen to 89.85 yen from 89.78.
• Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses.
• "That's a cure, but it's also going to stifle any US economic growth," said Schiff. "The economy is addicted to the cheap interest and liquidity."
• Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market.
• "Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it.
• "The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."

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• Meet the 'father of world currency'
• Robert Mundell masterminded China plan to destroy dollar
• Posted: October 13, 2009
• By Jerome R. Corsi
   <!--- copywrite only show on NON commentary pages as per joseph meeting 8/23/06 ------>   <!-- copyright --> © 2009 WorldNetDaily 
• A plan to replace the dollar with a world currency originated with Columbia University economics professor Robert Mundell, who won a Nobel Prize in economics in 1999 for creating the euro and is now widely regarded as "the father of the euro."
• Mundell, currently an economic consultant to China, is the originator of the suggestion that the International Monetary Fund should utilize Special Drawing Rights, or SDRs, to replace the dollar as a new standard for holding foreign exchange reserves in international trade transactions.
• 
   Robert Mundel
• SDRs are international reserve assets calculated by the IMF in a basket of major currencies allocated to the IMF's 185 member nation-states in relation to the capital.
• The assets are largely in gold or widely accepted foreign currencies the members have on deposit with the IMF.
• As far back as June 2008, Mundell was telling Reuters a major dollar crisis would come within five years, and China was discussing with him proposals to reform the global monetary system.
• "There's no doubt about it that inside the Chinese government there's a lot of discussion going on," Mundell told Reuters. "I'm not sure how they're doing it, but I know they're going to get input from me."
• In the interview, Mundell went so far as to speculate the Chinese-recommended solution would involve the IMF.
• Aspiring to be the father of a global currency, Mundell has argued, "What you need to have is an International Monetary Fund that's going to take some of these excess dollars (such as held by China in foreign exchange reserves), put them into a substitution account inside the IMF or some other institution and then use that to create what is a new international currency."
• Mundell stressed to Reuters that such a proposal would be "very acceptable" to China.
• Optimum currency areas
• Mundell has argued for decades the proposition that nation-state currencies, including the dollar, need to give way to a new official world currency.
• According to Mundell, an "optimal currency area" is best defined by international free-trade areas and regional markets, not by nation-states such as the United States of America.
• Mundell's argument was that nation-states are not optimal currency areas because nation-state borders are artificial constraints imposed on the globe to create ethnic or historical divisions that do not necessarily represent how international markets operate.
• To understand the concept, Mundell cites former Federal Reserve Chairman Paul Volker's frequently quoted dictum, "A global economy needs a global currency."
• "The benefits from a world currency would be enormous," Mundell argues on his website.
• G20 votes to fund global currency
• The G20 summit meeting in London last week, through the International Monetary Fund, took an important step to create a new global currency to replace the dollar as the world's foreign exchange reserve currency of choice.
• Appearing on Sean Hannity's Fox News Channel television show, political consultant Dick Morris and Hannity agreed the decision by the G20 proved the "conspiracy theorists were right" and there is now clear evidence of a plan to create a one-world currency.
• Point 19 of the final communiqué from the G20 summit in London April 2 specified, "We have agreed to support a general SDR which will inject $250 billion into the world economy and increase global liquidity," taking the first steps forward to implement China's proposal that Special Drawing Rights at the IMF should be created as a foreign exchange currency to replace the dollar.
• "I think the dollar is now under question," billionaire investor and political activist George Soros told CNBC, commenting that the goal was to create an IMF currency to use in international trade.
• Obama deficits frighten China
• China is clearly worried its massive holdings of U.S. dollars are at risk of devaluation, with the Obama administration projecting trillion-dollar deficits into the foreseeable future.
• At the beginning of this year, China's holdings of U.S. Treasury securities jumped to $739 billion, up dramatically from $535 billion in June 2008.
• On March 17, the Moscow Times published an article revealing the Kremlin attended to use the April G20 meeting in London to push for the IMF to utilize SDRs as "a super-reserve currency widely accepted by the whole of the international community."
• Then, a few days later, on March 24, the Financial Times in London reported China's central bank governor Zhou Xiaochuan has proposed to utilize SDRs issued by the IMF as a world reserve currency.
• The coincidence of the two announcements gave the impression Moscow and Beijing had coordinated their efforts to undermine the dollar.

  • Gee..'ya think?
  Add Sticky Note
• The G20 final communiqué gave the strong impression the meeting adopted China's proposal.
• China's proposal called for the IMF to issue at least $250 billion in SDRs to IMF-member states as a method of placing a safety net under developing countries that might otherwise have to declare bankruptcy.
• International overdraft
• As Red Alert previously reported, the proposal originally advanced by China and Russia would issue SDRs to central banks of IMF member states far in excess of any gold or currency reserves the member states have on deposit with the IMF.
• The idea is to utilize the little-understood and largely ignored SDR's in a new capacity, as a sort of an international overdraft facility made available to bankrupt or financially failing IMF members originated with Ted Turner, formerly a senior official at both the Federal Reserve and the U.S. Treasury.
• The IMF created SDRs in 1969 to support the Bretton Woods fixed–exchange-rate system.
• "The international supply of two key reserve assets – gold and the U.S. dollar – proved inadequate for supporting the expansion of world trade and financial development that was taking place," a a document on the IMF website explains.
• "Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF."
• When the Bretton Woods fixed-rate system collapse, major world currencies, including the dollar, shifted to a floating exchange rate system where the price of the dollar and other major world currencies was created by trading on international currency exchanges.
• Until the current global economic crisis, SDRs issued by the IMF have been used by IMF members primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default.

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