U.S. Treasury Secretary, Timothy Geithner and Federal Reserve Chairman, Ben Bernanke testified at the House Committee Oversight and Government Reform on March 21, 2012. In discussing the European debt crisis and responding to questions regarding IMF funding, the Treasury Secretary suggested that a default by the IMF or any of its borrowers was highly unlikely because the loans are backed by “a substantial amount of IMF gold …”
More commentary from Swiss America can be found here.
In an effort to keep that false front of openness and transparency, someone at the Fed had the bright idea to align with technology and start a twitter account. But with all the tweets bashing the Fed and its policies, maybe it wasn’t such a good idea? Maybe it won’t be long before the Fed terminates this Twitter account. Here’s some streaming tweets:
At 10AM on Wednesday, February 29, 2012 gold and silver were hit with massive paper selling on the COMEX. Gold was hit for about $100 (5.5%) and silver was taken down $3.75 (10%). But the stock market was flat, untouched.
According to Jim Sinclair, this was a cover-up by the Fed chairman and the precious metals were manipulated to the downside on purpose. Because if the expectation of no more liquidity from the Fed was really the cause of the collapse of precious metal prices, then the stock market should have been hit just as hard, which it was not! Furthermore, this $700+ billion for European banks was QE! The ECB got those funds from two places: “It’s been coming in from the IMF and from swaps done by the US Federal Reserve.” Here’s Jim Sinclair’s audio interview at King World News.
Indeed, here are three articles making the case that the sell-off was initiated by a seller who wasn’t at all interested in profit, but was motivated by taking the market down:
Ironically (or not), the precious metals were hit during this exchange between Ron Paul and Ben Bernanke, where Paul held up a silver ounce coin and asked the chairman why people aren’t given the option of using gold and silver as a “competing currency” with the US dollar.
James Koutoulas, a lawer representing clients of MF Global who lost an estimated $1.2 billion, reveals the ugly truth behind what caused MF Global to declare bankruptcy.
MF Global moved investment funds to the United Kingdom, where there is no limit to the leverage that can be used in rehypothecating client assets.
MF Global then invested those funds in European debt futures, leveraged perhaps 40-times, believing the troubled nations like Greece would eventually be bailed out. (Note that higher leverage means tighter margins.)
Then, with the extreme volativity in the latter part of 2011 when there were weeks of rumors coming out of the media hinting of both defaults and bail-outs, the investment went sour as margin calls forced MF Global to pony up more cash. They had no other option but to go into their segregated client accounts and allegedly steal cash to cover the margin calls.
Three SWIFT transfers of $5 trillion each have supposedly been executed – initiated from the Federal Reserve Bank of New York, to JP Morgan Chase, to HSBC/London, and finally to the Royal Bank of Scotland. Executives at HSBC and RBS have verified the receipts of the transfers, but the money isn’t in any accounts and the purpose of the transfers is unclear.
According to Lord James of Blackheath, there are three possibilities:
There may have been a massive piece of money-laundering committed by a major Government who should know better.
A major American department has an agency which has gone rogue on and has created a structure out of which it is seeking to get at least €50 billion.
This is an extraordinarily elaborate fraud, which has not been carried out, but
which has been prepared to provide a threat to one or more Governments if they do not make a pay-off.
Fox has fired Judge Napolitano after this rant. His intimations were a little too close to the truth. No, the main-stream media, controlled by the established powers, cannot have a loose cannon like this, can they?
But in a beautifully articulated monologue in his final episode, Napolitano sums up America’s root problems and encourages the people to fight for their freedoms against the tyranny of government!
Dr. Paul Craig Roberts served as the Assistant Secretary of the Treasury under President Ronald Reagan. He should know a thing or two about U.S. economic policy. In this brief and simple article, he explains how government statistics on inflation, housing, employment and GDP have consistently under-reported actual data.
“In place of recovery, we have hype from politicians, Wall Street, and the presstitute media.”
In this interview with Jim Sinclair, the Credit Default Swap (CDS) market is thoroughly discussed. There are 5 major banks that control almost all of the CDS contracts issued. These 5 banks also heavily influence the International Swaps and Derivatives Association (ISDA), which will decide whether defaults actually occur when the sovereign nations of Europe don’t pay their creditors. For example, when Greece was allowed to free themselves of 50% of their debt recently, the ISDA decided that was NOT a default, hence the CDS contracts the 5 major banks issued were not triggered. Those that bought the CDS contracts were screwed. And now the ISDA is deciding whether or not the current 70% haircut being imposed on Greek bond holders is a default. Obviously, the ‘self-governing’ CDS market is not going to shoot themselves, so the CDS purchasers are going to be screwed again!
Sinclair points out that this credit event is signaling global quantitative easing because if Greece and the other sovereign nations can keep selling bonds without the obligation to pay back creditors, bond buyers will get wise to the scheme and not purchase. QE will therefore be necessary – money will be created out of thin air to buy the bonds no one wants to buy. This will support much higher prices for precious metals and general equities.
David Stockman was the budget director under President Ronald Reagan. The Triumph of Crony Capitalism is the working title of Stockman’s new book due to be published soon.
Here’s Bill Moyer’s interview with Stockman where they discuss the corrupted relationship between investment bankers and those who hold public office. “We have neither Capitalism nor Democracy…. Instead we have Crony Capitalism.”
Ron Paul seems to be the only presidential candidate who understands that our current monetary system cannot be sustained. For those of you who are still unaware of this fact, Mike Maloney describes it in easy-to-understand terms in the following video:
According to this new legislation, Americans can be detained indefinitely, without trial, and without legal representation simply on the grounds of being suspected of terrorist activities. In the US Constitution, Article 1, Section 9 limits the powers of Congress. In regard to Habeas Corpus – the right a court hearing showing proof the detention is warranted – Section 9 declares ‘The privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it.’ Furthermore, the 6th Amendment guarantees a right to a speedy trial and confrontation of witnesses.
Ron Paul is among the few congressmen who actually understand the constitutional rights guaranteed to every American. Furthermore, he’s fighting for the America most Americans seem to have forgotten.
Read Ron Paul’s Revolution, which outlines his basic platform – based on the US Constitution, which every American should know and understand! (Do you?)
Here’s Ann Barnhardt, of Barnhardt Capital Management, on the air with Jim Puplava discussing the scary details of MF Global’s collapse and the implications to the global economy. The world as we know it, may indeed be coming to an end, just as the Mayans predicted.