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“I am in present enterprise, why come to me?”
“Conflict is present enterprise, that is why we’re right here.”
– “Wag the Canine” (1997 movie)
The primary week of August 2008, Fannie Mae and Freddie Mac had simply introduced report losses, and so had most reporting firms. Unemployment was mounting, the foreclosures disaster was deepening, state budgets have been in shambles, and big bailouts have been in every single place. Traders had each purpose to count on the greenback and the inventory market to plummet, and gold and oil to shoot up. Unusually, the Dow Jones Industrial Common gained 300 factors, the greenback strengthened, and gold and oil have been crushed. What occurred?
It hardly took psychic powers to see that the Plunge Safety Crew had come to the rescue. Formally often known as the President’s Working Group on Monetary Markets, the PPT was as soon as hid and its very existence denied as if it have been a matter of strict nationwide safety. However the PPT has now come out of the closet. What was as soon as a legally questionable “manipulator” of markets has turn into a sanctioned stabilizer and protector of markets. The brand new tone was set in January 2008, when world markets took their worst tumble since September 11, 2001. Senator Hillary Clinton mentioned in a press release reported by the State Information Service:
“I feel it is crucial that the next step be taken. The President ought to have already and will achieve this in a short time, convene the President’s Working Group on Monetary Markets. That is one thing that he can ask the Secretary of the Treasury to do. This must be coordinated throughout markets with the regulators right here and clearly with regulators and central banks around the globe.”
The thriller over what was occurring with the greenback the primary week in August was solved by James Turk, founding father of GoldMoney, who wrote on August 7:
“[T]he banking issues in the US proceed to mount, whereas the federal authorities’s deficit continues to soar uncontrolled. So what occurred to trigger the greenback to rally over the previous three weeks? In a phrase, intervention. Central banks have propped up the greenback, and this is the proof.
“When central banks intervene within the foreign money markets, they alternate their foreign money for {dollars}. Central banks then use the {dollars} they purchase to purchase US authorities debt devices in order that they will earn curiosity on their cash. The debt devices central banks purchase are held in custody for them on the Federal Reserve, which studies this quantity weekly.
“On July 16, 2008 the Federal Reserve reported holding $2,349 billion of US authorities paper in custody for central banks. In its report launched at this time, this quantity had grown over the previous three weeks to $2,401 billion, a 38.4% annual charge of development. So central banks have been accumulating {dollars} over the previous three weeks at a charge far above what one would count on because of the US commerce deficit. The logical conclusion is that they have been intervening in foreign money markets. They have been shopping for {dollars} for the aim of propping it up, to maintain the greenback from falling off the sting of the cliff and doing so ignited a brief protecting rally, which isn’t too tough to do given the leverage employed within the markets today by hedge funds and others.”
Simply as central banks manipulate currencies in live performance, so gold may be manipulated by large promoting of central financial institution reserves. Oil and some other market may be manipulated as effectively. However markets may be manipulated by solely a lot and for less than so lengthy with out fixing the underlying downside. There’s extra dangerous information coming down the pike, information of such magnitude that no quantity of atypical manipulation is liable to hide it.
For one factor, roughly $400 billion in ARMs (adjustable charge mortgages) have or will reset between March and October of this 12 months. Assuming 3 to six months for strapped debtors to truly hit the wall with their funds, an enormous wave of defaults is about to strike, persevering with by way of March 2009 – simply in time for the following big wave of resets, in choice ARMs. Choice ARMs are loans with the choice to pay even much less than simply the curiosity on the mortgage month-to-month, rising the mortgage stability till the mortgage reaches a certain quantity (sometimes 110% to 125% of the unique mortgage stability), when it resets. The $800 billion credit score line just lately opened to Fannie Mae and Freddie Mac could also be not solely tapped however tapped out, at taxpayer expense. The underlying downside is little mentioned however not possible to restore – a one quadrillion greenback derivatives scheme that’s now imploding. Banks in every single place are going through large writeoffs, placing the entire banking system on the point of collapse. Solely public bailouts will put it aside, however they might bankrupt the nation.
What to do? Conflict and threats of battle have been used traditionally to distract the inhabitants and deflect public scrutiny from financial calamity. Because the scheme was summed up within the trailer to the 1997 film “Wag the Canine” –
“There is a disaster within the White Home, and to save lots of the election, they’d need to faux a battle.”
Maybe that explains the sudden breakout of battle within the Eurasian nation of Georgia on August 8, simply 3 months earlier than the November elections. August 8 was the day the Olympic Video games started in Beijing, a distraction which will have been timed to maintain China from intervening on Russia’s behalf. The mainstream media model of occasions is that Russia, the bully on the block, invaded its tiny neighbor Georgia; however not all commentators agree. Mikhail Gorbachev, writing in The Washington Put up on August 12, noticed:
“What occurred on the night time of Aug. 7 is past comprehension. The Georgian army attacked the South Ossetian capital of Tskhinvali with a number of rocket launchers designed to devastate giant areas. Russia needed to reply. To accuse it of aggression in opposition to ‘small, defenseless Georgia’ is not only hypocritical however exhibits an absence of humanity. The Georgian management may do that solely with the perceived help and encouragement of a way more highly effective drive.”
Bruce Gagnon, coordinator of the International Community in opposition to Weapons and Nuclear Energy, commented in OpEdNews on August 11:
“The U.S. has lengthy been concerned in supporting ‘freedom actions’ all through this area which were making an attempt to interchange Russian affect with U.S. company management. The CIA, Nationwide Endowment for Democracy and Freedom Home (consists of Zbigniew Brzezinski, former CIA director James Woolsey, and Obama overseas coverage adviser Anthony Lake) have been key funders and supporters of inserting politicians in energy all through Central Asia that may play ball with ‘our facet’. None of that is in regards to the good guys versus the dangerous guys. It’s energy bloc politics. Huge cash is at stake. [B]oth events (Republican and Democrat) share a bi-partisan historical past and agenda of advancing company pursuits on this a part of the world. Obama’s advisers, identical to McCain’s (one in every of his prime advisers was just lately a lobbyist for the present authorities in Georgia) are thick on this stew.”
Brzezinski, who’s now Obama’s adviser, was Jimmy Carter’s overseas coverage adviser within the Seventies. He additionally served within the Seventies as director of the Trilateral Fee, which he co-founded with David Rockefeller Sr., thought of by some to be the “grasp spider” of the Wall Avenue banking community. Brzezinski, who wrote a guide referred to as The Grand Chessboard, later boasted of drawing Russia into battle with Afghanistan in 1979, “giving to the Soviet Union its Vietnam Conflict.” Is the Georgia affair an tried repeat of that coup? Mike Whitney, a preferred Web commentator, noticed on August 11:
“Washington’s bloody fingerprints are everywhere in the invasion of South Ossetia. Georgia President Mikhail Saakashvili would by no means dream of launching an enormous army assault until he obtained specific orders from his bosses at 1600 Pennsylvania Ave. In spite of everything, Saakashvili owes his total political profession to American power-brokers and US intelligence companies. If he disobeyed them, he’d be gone in a fortnight. Apart from an operation like this takes months of planning and logistical help; particularly if it is completely timed to coincide with the start of the Olympic video games. (one other petty neocon contact) Meaning Pentagon planners should have been working hand in hand with Georgian generals for months prematurely. Nothing was left to likelihood.”
A part of that cautious planning might have been the unprecedented propping up of the greenback and bombing of gold and oil the week earlier than the curtain opened on the scene. Gold and oil needed to be pushed down arduous to present them room to rise earlier than anybody shouted “hyperinflation!” As we watch the curtain rise on battle in Eurasia, it’s effectively to keep in mind that issues will not be all the time as they appear. Markets are manipulated and wars are staged by Grand Chessmen behind the scenes.
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Source by Ellen Brown