It’s Official: The Pentagon Finally Admitted That Israel Has Nuclear Weapons, Too

William Greider on March 20, 2015 – 10:56 AM ET

Hon. Paul T. Hellyer: Full Disclosure

Dear Andy,  

The Hon. Paul T Hellyer speaks

his important, heartfelt message

to the world; “We have been given

a few months, not years…We are

the ones destined to write our

own history.”

The former Defense Minister of

Canada talks about urgent issues

we face today, and how we can

act on them as individuals, with

a common goal of freedom and

truth. 

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Bibi to Congress – “You work for me and don’t you forget it !”

Poster

Posted by Preston James, Ph.D on March 21, 2015

Bibi Netanyahu came to America to remind Members of Congress that they work for him and Israel, and better torpedo President Obama’s upcoming treaty with Iran or else they will never be re-elected.

In a shocking development Bibi Netanyahu invited himself to speak in front of the US Congress to remind them they work for him, and to give them their marching orders for US foreign policy with Iran for 2015.

Here is how this very strange event which was a complete breech of protocol and a violation of American law unfolded.

In a dramatic overplay seemingly taken right out of a batman comic book Bibi Netanyahu called up John Boehner and invited himself to speak before Congress. Here is what his phone call likely consisted of.

[Note:  Do not assume the source used remote viewing, although that is a possibility.]

Netanyahu: John, this is Bibi. How are you?

Boehner: Very well. Thank you Sir for asking.

Netanyahu: Are you enjoying being in the Catbird Seat in the House John?

Boehner: Yes Sir Bibi.

Netanyahu: How do you like all the Perks and the set-aside allocations John?

Boehner: Oh, I really appreciate all that Bibi, I just can’t thank you enough.

Netanyahu: Now John, you know when you needed my help I always came through for you, didn’t I?

Boehner: Yes Sir, you have always taken good take of me.

Netanyahu: Now John, I need you to do something for me.

Boehner: Anything you want Bibi.

Netanyahu: John, as you know, I have reached a stalemate with your President and he has turned his back on Israel and on me. And as you know, I was the one that allowed him to be elected in the first place.

Boehner: Yes Sir that’s correct Bibi. The man has no respect. What do you want me to do for you?

Netanyahu: John, since your backstabbing President won’t invite me to speak to your Congress as has been tradition, I am going to need you to send me a personal invite on behalf of Congress and the United States of America. Can you do that for me John?

Boehner: Yes Sir, Bibi, I can do that for you. Consider it done.

These members of Congress who attended Netanyahu’s speech broke Federal Law and violated their Oaths of Office.

The rest is history and Bibi Netanyahu came and spoke to Members of Congress. In coming to hear Netanyahu these Members of Congress violated their Oaths of Office and also violated the Logan Act, a felony.

In order for you to understand the Evil beyond imagination that lies in Bibi Netanyahu’s heart, here is a transcript of a recording taken from a bug underneath the table that Bibi Netanyahu and some of his cronies were sitting at in Fink’s Bar in Jerusalem in 1990.

When Bibi refers to “god” he is not referring to the same God most of us think of, he is referring to the Khazarian Mafia’s Babylonian Talmudic god Baal or Moloch, aka the great owl that demands human blood sacrifice, singly of infants and mass of whole nations populations.

Baal worship is one of the most evil faiths imaginable and for those that think Baal does not exist as an evil spirit and has no crafty powers to manipulate mankind and societies, learn from those who have left “the craft” of Baal Worship. They claim that Baal is Lucifer aka Satan and can only be defeated by goodness, integrity, strength of spirit, love towards one’s fellow man, following the Golden Rule and rejecting evil at every turn in the road.

These prior members claim that Baal appeared in person during their rituals, demanded child bloodletting and sacrifice and rewarded obedience to commands to do incredible evil to destroy all societies of the World in order to create Hell on Earth and a Satanic Kingdom that would rise from the ashes with themas the chosen ones or rulers of the World.

And this is exactly what the Khazarian Mafia (KM) has been hard at work attempting to do through their Luciferian Banking System which is based on massive counterfeiting, pernicious usury, Worldwide asset stripping of all peoples’ earned wealth, in order to create Worldwide debt-slavery.

The Netanyahu quotation below should make the blood of all Americans boil with anger and resentment toward Israeli, Netanyahu and the Khazarian Mafia (KM). 

And it should create a strong desire to drive Israeli espionage fronts out of America, boot out all Members of Congress who are Israeli-firsters, to nationalize the Federal Reserve System, and cancel all national debt “owed” illegally to them, and un-elect or remove from office all Members of Congress who just violated the Logan act and their oaths of office, by attending Netanyahu’s speech or wrote letters to Iran. These men and women are Traitors to America. Remember there is no statute of limitation on Fraud, murder, mass-murder, genocide, torture or war crimes.

If we get caught they will just replace us with persons of the same cloth. So it doesn’t matter what you do, America is a Golden Calf and we will suck it dry, chop it up, and sell it off piece by piece until there is nothing left but the World’s biggest welfare state that we will create and control. Why? Because it’s god’s will and America is big enough to take the hit so we can do it again, again and again. This is what we do to countries that we hate. We destroy them very slowly and make them suffer for refusing to be our slaves.”

Yes, this is what the secret Agenda of Bibi Netanyahu, Israel and the Khazarian Mafia (KM) is for America. It’s high time every good American that cares about their childrens’ future knows about this and start organizing politically to stop it.

Did these members of Congress who attended Netanyahu’s speech commit Treason too?

Some Constitutional experts are now arguing that they also committed Treason against America by supporting a foreign enemy because we now know that Bibi Netanyahu ordered Israeli Intel and stateside Dual Citizens and Assets to deliver a nuclear attack on America on 9-11-01 using W-54 Davy Crockett nuclear Pits stolen out of the back door of Pantex at Amarillo, Texas.

It’s high time all Americans come to the understanding that Netanyahu is the leader of a criminal state and is an enemy of America and all Americans because of the nuclear attack that he ordered on 9-11-01 as the operational head of the Khazarian Mafia (KM).

It is time for all Americans to understand there is no problem with Terrorism in the World but only the renegade criminal acts of terror committed by the World’s largest Organized Crime Syndicate, the Khazarian Mafia using Israel its main action-agent to set up and run the Gladio-style False-flag attacks.

It is also time for all Americans understand how this Rothschild Khazarian Mafia (KM) infiltrated America and established a beachhead in America in 1913 when they bought Congress and manipulated them into illegally passing the Unconstitutional Federal reserve Acts in 1913 with no legally required quorum.

The Rothschild Khazarian Mafia Banksters infiltrated and hijacked the American Monetary Production and Distribution System and formed their own private, illegal, Unconstitutional Federal Reserve Bank, a sophisticated Counterfeit money system based on pernicious usury and debt-slavery.

Over time these Rothschild Khazarian Mafia Banksters were able to completely hijack the American Monetary Production and distribution system and eventually were able to take the US Dollar off of any backing with Gold and Silver and transform it to a purely counterfeiting business with no USG controls at all placed upon it.

Once these Rothschild Khazarian Mafia Banksters transformed their operation into a pure Counterfeiting enterprise, they could prints and issue enough money to buy almost every single Member of Congress one way or another. Once they got control over Congress and made sure they put a Presidential Patsy in power, they could get the legislation they wanted which would provide huge support for their member Corporations and defense contractors.

This then would allow vast sums to be kicked-back to buy and control Congress through large campaign donations, secret payoffs and lavish perks as well a huge offshore set-aside allocations in numbered accounts.

The World’s biggest kick-back scheme ever devised, all designed to steal the hard earned earnings of the American taxpayer.

And of course a  bought and owned Congress could be easily manipulated to fund vast aid packages to Israel, some of which could be used to pay for lavish junkets during which folks naive enough to travel to Israel could be fed special “doped” Kool-aid and covertly mind-kontrolled to “love and obey Israel” forever.

It is a sad fact that because of the vast, unlimited, constantly expanding Counterfeit money supply the Israelis have been able to hijack America on behalf of the Rothschild Khazarian Mafia (KM), by far the most evil group of individuals in history.

These Khazarian Mafia folks are truly dedicated to destroying every society on earth and mass murdering 90% of the World Populace by their own admission.

Why Bibi Netanyahu came to speak before Congress.

Bibi Netanyahu came to America to speak to Congress to remind them that he is their real boss and that Israel put them in power, “owns them”, and can remove them from their elected office any time it wants by providing vast aid to any political opponent they select.

Netanyahu also came to exert influence to derail President Obama’s negotiations with Iran to make sure that their nuclear development is for peaceful purposes and America and can trade with Iran, resume normal relations and progressively remove sanctions.

Bibi Netanyahu and Israel are the World biggest liars and hypocrites.

How hypocritical it is for Bibi to constantly accuse of Iran trying to build nuclear devices when we know for sure that they have already signed the Nuclear Non-Proliferation Agreement, have no desire for nuclear warheads or bombs, and are working to develop cheap, effective nuclear power based on their own large uranium deposits.

Compare this to Israel the Apartheid criminal state which has a large nuclear stockpile of nuclear weapons but refuses to admit it or sign the Nuclear Non-Proliferation Agreement. What this means in practical terms that bit is illegal for America to give any aid from the USG or private donors to Israel. yes all such aid public and private is now illegal and the laws regarding this must be immediately enforced.

Right now the US Congress is filled with traitors and folks who violated the Logan act and numerous bribery laws with impunity. They must be impeached or unelected, fully prosecuted for these major felonies and all their personal assets earned from their crimes must be clawed back.

How tragic it is that Americans allowed Traitors to America to be elected to Congress who would sell out America to the Israelis and the Rothschild Khazarian Mafia Banksters for riches, power and status.  But this is what has happened gradually since the Rothschild Khazarian Mafia (KM) established a beachhead in America in 1913.

It is now time for all Americans to learn the truth about how America has been infiltrated and hijacked by the Rothschild Khazarian Mafia (KM) and its main action-agent Israel.

It is now time for all Americans to rise up and demand that the Federal Reserve System be “nationalized” into the US Department of the treasury and all assets sized and clawed back of all those who received vast fortunes from owning shares in his fake Counterfeiting pernicious usury operation to asset strip Americans of all accrued wealth and transform them into debt slaves.

It is also time for Americans to rise up and drive all the US Congressmen that are owned by Israel out of office. It is also time to fully prosecute all the directors and principals of Israeli espionage fronts like AIPAC, JINSA, the Defense Policy Board, The Joint, the ADL, and the like for espionage inside America.

These espionage fronts must be completely eliminated and all Israeli-America “Israeli-first” Dual Citizens involved in espionage and the nuclear attack on America on 9-11-01 and its coverup must be fully prosecuted. The whole 9-11-01 Gladio-style False-flag must be completely re-investigated and the secret Grand Jury investigation in Houston, Texas must be re-activated.

All dual citizen-ships must be eliminated asap and those allowed to stay must disavow any allegiance to a foreign power and take a loyalty oath to America.

Anyone who has been a Dual Citizen must be forever barred from holding any political office or ever working for the USG or any state or local government.

It is time to fully expose the infiltration and hijacking of America by the Rothschild Khazarian Mafia (KM) and stop it cold. Yes, this seems to be a daunting task because of the depth of their infiltration of almost every American institution, including the KM’s Controlled major Mass media (CMMM).

However, thanks to the Worldwide Internet the World’s new Gutenberg Press, the CMMM is now being surpassed by the Alternative news published and broadcast on the Internet and the whole World is catching on to the existence of the Khazarian Mafia (KM), it massive Counterfeiting Bankster System, and its main action-agent Israel and Netanyahu, the KM’s Operational Head.

Conclusion:

The truth about Israel attacking America on 9-11-01 is now spreading like wildfire around the World and diffusing throughout American populace. Once a critical mass of 12% is reached, you will be amazed at how this big 9-11-01 CMMM coverup unwinds. Soon all true Americans will want payback and will drive out the Khazarian Mafia (KM) and their crooked Counterfeit, fake Rothschild private Central  Banking System.

Payback is coming and believe you me when the Americans become fully awake, they will want big time payback, with a enraged fury that is almost unimaginable. When that day comes which is not far away, it is not too hard to imagine what the American masses will demand and will do if their demands are not met.

Bonus Video for those who have time and interest. What happens if the Rothschild KM Banksters and Israeli espionage fronts are not driven from America.

http://www.veteranstoday.com/2015/03/21/bibi-to-congress-you-work-for-me-and-dont-you-forget-it/

HuffPo: Gun Control Groups Getting Decimated by State Legislatures

Joe Raedle/Getty Images/AFP

On March 17 the Huffington Post ran a column detailing how Moms Demand Action for Gun Sense in America and other members of the gun control lobby are getting decimated by state legislatures across the country

From pending passages of open carry and campus carry to legislation that completely repeals any need for a concealed carry permit, the gun control lobby is getting rocked.

According to HuffPo, one the clearest losses for the gun control lobby is the open carry push in Texas. That fight is one which HuffPo has already written off as a done deal, and one which they presume will quickly be followed by campus carry.

Arkansas, Florida, Nevada, and 10 other states are also considering changing their concealed carry statutes so women can carry guns for self-defense on college and university campuses.

On top of this, the West Virginia legislation voted to do away with any concealed carry permit requirement, the New Hampshire Senate did the same, and Maine is working on it. Montana lawmakers are also pressing to do away with any remaining requirement for a concealed carry permit in their state, and the same repeal has been introduced in Idaho.

This all comes less than a year after Kroger, Fred Meyer, and Harris Teeter all rejected Moms Demand Action’s calls to deny law-abiding citizens their right to openly carry guns for self-defense in their stores. It comes less than six months after Moms Demand Action founder Shannon Watts tried to spin her group’s huge mid-term election losses as proof that they’d become a “political force.” It comes less than a month after their West Virginia chapter begged lawmakers in that state not to repeal concealed carry permit requirements. And all of it is compounded by their continued, unpopular opposition to arming women for self-defense on college campuses.

But according to HuffPo, Moms Demand Action plans to keep fighting. Watts said her group will be “pushing back in all 50 states,” so that the advance of gun rights “no longer goes unchecked.”

http://www.breitbart.com/big-government/2015/03/18/huffpo-gun-control-groups-getting-decimated-by-state-legislatures/?AID=7236

Follow AWR Hawkins on Twitter @AWRHawkins. Reach him directly at awrhawkins@breitbart.com.

Lagarde says IMF to co-operate with China-led AIIB bank

Christine Lagarde in China

Mrs Lagarde has been attending an economics forum in China

International Monetary Fund chief Christine Lagarde has said the IMF would be “delighted” to co-operate with the China-led Asian Infrastructure Investment Bank (AIIB).

The AIIB has more than 30 members and is envisaged as a development bank similar to the World Bank.

Mrs Lagarde said there was “massive” room for IMF co-operation with the AIIB on infrastructure financing.

The US has criticised the UK and other allies for supporting the bank.

‘High standards’

The US sees the AIIB as a rival to the World Bank, and as a lever for Beijing to extend its influence in the region.

The White House has also said it hopes the UK will use “its voice to push for adoption of high standards”.

Countries have until 31 March to decide whether to seek membership of the AIIB. As well as the UK, other nations backing the venture include New Zealand, Germany, Italy and France.

Mrs Lagarde, speaking at the opening of the China Development Forum in Beijing, also said she believed that the World Bank would co-operate with the AIIB,

China established the Asian lending institution in 2014 and has put up most of its initial $50bn (£33.5bn) in capital.

http://www.bbc.com/news/business-32007090

JASON & The Black Swan Probability

Black Swan

30 Comments

By JC Collins

Now that current events are confirming the analysis which has been developed here over the last year and 2 months, it’s time to move forward and understand the broader ramifications of what these changes will mean for the monetary world.

There have been numerous proclamations over the last few years in regards to the irrelevance of the International Monetary Fund and the SDR – Special Drawing Right.  Now that it has been officially announced by both China and the IMF that the yuan will be added to the SDR composition by the end of this year (stating that they are in discussions is tantamount to a confirmation of such), the conspiracy theories and faulted analysis of the BRICS countries overthrowing the IMF and World Bank, and by default America, should be tossed in the trash bin where they belong.

It has been repeatedly stated here that neither China, nor the United States, want the added domestic pressure of using their respective currencies as the global reserve unit of account.  Yet, the US Congress has failed to ratify the 2010 IMF Quota and Governance Reforms.  Reforms, which will restructure the IMF Executive Board and quota system, leading into the systemic framework changes to the international monetary system.

Treasury Secretary Jack Lew stated yesterday that America is beginning to lose influence in the world, along with veto control in the global institutions which it has dominated since the end of WW2.

The Plan B reforms which the G20 and IMF announced earlier in the year are now materializing in the form of the exodus by European countries to the Asian Infrastructure Investment Bank, and the ongoing discussions between Ukraine and Greece with the eastern powers of Russia and China.

The SDRM – Sovereign Debt Restructuring Mechanism, meme and media representation is beginning to pick up momentum. As each region and country falls further into economic deflation, and as the world enters the final stages of deleveraging from the expansion of debt which culminated in the financial crisis of 2008,  the obvious nature of the multilateral architecture will become more clear.

The statistical research which has concluded, and been pompously presented as the collapse of the USD and the rise of a new gold standard, or trade system, is inherently flawed in that it’s analytical baseline is positioned upon past economic data.

This is the same data which has led most analysts off track from the slowly rising framework of the multilateral SDR system. Whether it’s QE policies, ZIRP, NIRP, or the migration of gold, no economic model has accurately predicted the full transition because the transition segments, such as the QE deleveraging, can not be referenced and understood on old economic data and models.

The Group of Thirty is a non-profit organization which is mandated with restructuring the international monetary system, and it’s members are a list of the top central bankers and economists in the world. These are the people making the decisions and engineering the multilateral framework.  America, China, Russia, Europe, and all other prominent country’s and regions are represented on its board.

Occasional Paper 87 from the Group of Thirty (G30), published in May, 2013, titled Debt, Money, and Mephistopheles, makes clear plans for the “redesign of financial regulation and macroprudential policy” to prevent another crisis like the one in 2007. The paper goes on to describe how a “combination of macroeconomic and macroprudential policies are needed to navigate against the deflationary headwinds created by post-crisis deleveraging“.

From this policy paper the purpose and intent of the QE strategy is clear. Presenting QE as leading to the collapse of the monetary system is not representative of its purpose and design.

When we extrapolate this knowledge into the vast amount of analysis and predictions which have been offered up over the last few years, we begin to realize the error in relying on old economic data and models in attempts to determine future outcomes.

This is why most analytical predictions will not be realized.

In addition, analytical outcomes with an agenda use active deceptions as methods of persuasion. These active deceptions:

  1. Understate
  2. Overstate
  3. Distort

These distortions will degrade the predictive value of a statistical model, leaving both writer and reader floating freely in the make believe world which relies on past data.  Data which does not take into consideration the fundamentals and macropudential mandates of the multilateral transition plan.

There is much talk of a Black Swan Event in the economic and geopolitical worlds.  This concept has been used by endless analysts and columnists as the emotional content in essays and blog posts.  The Black Swan Event, we are told, will lay waste to any plans which may be in the works, and lead the world into years and decades of depression, and/or war.

But lets take a closer look at this concept, and the probability of something of this caliber actually taking place.

JASON, a study group division of the MITRE Corporation, completed a Rare Event study in October, 2009.  This study analyzed and measured the probabilities of 9/11 magnitude events.

Based on the methodologies used in the study, it was concluded that between the years 1968 and 2006, there was a 23% probability of a 9/11 magnitude event.  Obviously there was such an event, and the probability was still less than 50%.

Based on the same baseline data, the group determined that the probability of such an event between 2009 and 2019 is 7%.

What is interesting is that the study referenced the term Black Swan Event.  Here is what it had to say:

We frequently encountered references to “Black Swans” in our study. The Black Swan metaphor was popularized by a recent book The Black Swan: The Impact of the Highly Improbable by Nassim Taleb [39]. The metaphor has clearly had great impact on how people are thinking about rare events, so we considered Taleb’s argument carefully.
Taleb’s argument is that many high-magnitude rare events (Black Swans) are fundamentally unpredictable, and that efforts to predict them are futile, dangerous, and even intellectually fraudulent – particularly when using statistical models based on past observations, and especially if the statistical model assumes Gaussian variance around some mean event size. His term “Black Swan” is a reference to a (supposed) European belief that all swans were white until black swans were discovered in Western Australia in the 1700’s. Black swans came to be used in philosophy as an example of a logical failure of inductive reasoning – that is, just because all previously observed swans are white does not necessarily mean that the next swan will be white.
Taleb makes important points but carries his argument too far. It is unfortunately true that some mathematical models for risk forecasting assume Gaussian variance despite substantial countervailing real-world evidence. Taleb’s criticism of economic risk models (such as the Black-Scholes-Merton options pricing model, which assumes that market prices make Gaussian-distributed moves) is particularly poignant given the world’s current economic situation. But though this is damning criticism of specific models’ faulty assumptions, it is not a damning general criticism of the careful use of modeling to help predict risk.
What we can take from all of this is that the probability of a 9/11 magnitude event is marginal at best, and the probability of a Black Swan Event is even less so.
The use of the term is out of proportion to the realities taking place in the monetary infrastructure. The analytical conclusions which call for such an event, along with the collapse of the dollar, and global depression, are inaccurate because they are based on old economic models which haven’t accurately considered the changing dynamics and architecture of the emerging multilateral, such as the designed deleveraging purpose of QE policies.
Though the USD will adjust to find a new position within the multilateral system, it will not collapse.  The stock markets will be the last to deleverage, but that is an adjustment which is required to bring back balance to the system. The world will not end and the lights will come on tomorrow.  The transition away from the USD as the primary unit of account is taking place piecemeal and with intent.  The real world applications of this transition model are not yet clear, but this is more a time of opportunity as opposed to the fear which is being promoted based on old economic modeling.   – JC

http://philosophyofmetrics.com/2015/03/19/jason-the-black-swan-probability/#more-2166

The steady derailment of the U.S. financial system

economic derailment concept

This is the second installment of a series. Read the first installment, “One last look at the real economy before it implodes.”

Consumer spending in the U.S. accounts for approximately 70 percent of gross domestic product, though it is important to note that the manner in which “official” GDP is calculated is highly inaccurate. For example, all government money used within the Medicare coverage system to pay for “consumer health demands,” as well as the now flailing Obamacare socialized welfare program, are counted toward GDP, despite the fact that such capital is created from thin air by the Federal Reserve and also generates debt for the average taxpayer. Government debt creation does not beget successful domestic production. If that were the case, then all socialist and communist countries (same thing) would be wildly enriched today. This is simply not the case.

That said, the swift decline in manufacturing jobs in the U.S. over the past two decades, including a considerable 33 percent overall decline in manufacturing jobs from 2001 to 2010, leaves only the consumer and service sectors as the primary areas of employment and “production.” The service sector provides about three out of every four jobs available in America, according to the Bureau of Labor Statistics.

The reality is that America actually produces very little that is tangible beyond Big Macs, pharmaceuticals and the occasional overpriced fighter jet that doesn’t function correctly and is filled with Chinese parts. All three will kill you at varying degrees of speed.

In the first part of this article series, I discussed the true state of global demand, along with the unstable situation within numerous indicators from exports to retail. Swiftly falling global demand for raw materials as well as consumer goods is an undeniable reality. This is a distinct problem in terms of the U.S., which has been, up until recently, the primary consumption driver for much of the world. As I plan to show, U.S. demand is about to fall even further into the abyss as real unemployment and personal debt take their toll.

Now, it is probably important to address the lies presented in the mainstream and by the BLS in terms of unemployment statistics because even after years of alternative analysts debunking establishment stats and how they are calculated, we still end up hearing the same arguments parroted by disinformation agents and unwitting useful idiots.

Such people continue to parade around boasting about the latest BLS reports on job creation claiming that “all is well” because the unemployment rate has dropped to 5.5 percent and all other talk to the contrary is “doom and gloom.” So, once again, I must relate the fact that the current BLS numbers are an utter sham.

Official unemployment stats are arrived at through disingenuous methods of calculation that were introduced in the 1990s, just before the bursting of the dot com bubble; the introduction of artificially low interest rates, which created the derivatives crisis; and the steady derailment of the U.S. financial system, which has occurred ever since.

So who is actually counted as employed and who is not counted as employed by the BLS?

Out of all working-age Americans, 92 million are without jobs and are not counted by the BLS as unemployed. Of the 102 million working-age Americans without work today, only 8.7 million are counted by the BLS as unemployed. Why?

Well, if you ever read establishment-leaning propaganda websites like Factcheck or Poltifact, the argument is essentially that these 92 million Americans are not counted because they “refuse to participate,” not because they can’t find adequate employment and not because the government is misrepresenting the numbers. Yes, that’s right, 92 million Americans don’t count because they clearly must not want work.

So, first, I would ask how it is that the BLS comes to the conclusion that nearly one-third of the U.S. population does not want to work? Is it through its so called “household surveys?” Surveys, just like public polls, can be easily manipulated to affirm any particular bias merely by changing how questions are phrased. I would certainly love to see the raw data from such polls before the BLS adds its own spin.

Second, even if such claims were true and tens of millions of Americans did not want to work, why would this matter? Shouldn’t they still be counted as unemployed in order to draw the most accurate picture of our economic situation? Wouldn’t 92 million Americans apparently on a long-term labor and productivity strike have a severe negative effect on real GDP? And obviously they must be surviving somehow. Wouldn’t 92 million people eventually require government assistance through food stamps and welfare? Does none of this matter to the BLS in terms of the overall economic picture?

Third, if the assertion is that 92 million people do not want jobs, then by extension the BLS would have to show that those millions of people could in fact get a job if they simply tried. Where are these tens of millions of jobs that Americans are refusing to apply for and what do they pay?

Fourth, a common misrepresentation attached to the claim of “refusal to participate” is that many of these Americans are teens in school (16 to 18) and “retirees” (55 or older). The BLS and the mainstream media simply assumes these people do not want a job and should not be counted as unemployed. Of course, the BLS includes such people in its stats when they do have jobs. So, according to the BLS, if you are 16 or 55 or 65 and you have a job, then you count. If you are 16 or 55 or 65 and don’t have a job, then you don’t count. See how that works?

Fifth, millions of Americans are losing long-term unemployment benefits every quarter and are being removed from BLS statistics. Many of them are not teens or retirees. These are average-working-age adults who now no longer have any real launch pad to progress in their career or life, and who should be fully motivated to obtain work if jobs are so readily available. Again, where are these jobs that said prime-working-age people refuse to accept?

The BLS also invariably discounts the number of working-age Americans who enter the market as well when boasting of jobs created to the public. Job growth numbers do not weigh the number of new participants each month with the number of supposed jobs made available, thus creating a misconception about how many new jobs are actually needed to keep the economy functional.

Another important factor to observe in government labor statistics is the issue of part-time work. When the BLS releases its monthly stats on unemployment, it does not widely promote or discuss the fact that 18 percent to 20 percent of those labeled “employed” are considered “part-time employed.” The BLS defines “part-time employed” as anyone who works one to 34 hours per week. Yes, if you work one hour per week, you have helped to bring down the overall unemployment rate of the U.S. to a fantastic 5.5 percent, even though you likely have zero ability to support yourself financially, let alone a family.

What does the 5.5 percent unemployment number actually represent on a fundamental level where the real world actually matters rather than the world of hypothetical calculations? Not a damn thing. The number is absolutely and unequivocally meaningless.

If one were to calculate unemployment using pre-1990s methods, as websites like Shadowstats.com does, counting U-6 measurements as well as the underemployed, you would come up with a U.S. jobless percentage closer to 23 percent.

Many of those workers in the service sector on the higher end of the part-time and full-time spectrum still cannot support themselves adequately due to falling wages, rising prices and growing debt obligations, which brings me to the next problem at hand.

Beyond unemployment as a destroyer of consumer demand, there is also personal debt. Much of the focus within the mainstream and even alternative economics revolves around national debt (I will cover the many lies surrounding national debt in my next article). However, effects on fundamental demand are far clearer when one examines household liabilities. According to averages supplied through government stats (meaning the real numbers are likely far worse), the average American household suffers from between $10,000 to $15,000 in credit card debt, $155,000 in mortgage debt and $32,000 in student loan debt.

Americans owed nearly $12 trillion overall in 2014, an increase of 3.3 percent over 2013. Declines in some debts, including a decline in credit card debts since 2011, is attributed to numerous defaults rather than repayments.

What we have here is a deadly fiscal combination; namely the combination of real unemployment at permanently high levels and real personal debt at unsustainable levels. This is the core reason behind the collapse in global demand that was discussed in the first installation of this series. With U.S. consumers no longer able to support their historical consumption habits and with the inflexible skeleton of the U.S. economy in particular dependent on past consumer dynamics, the system has little financial plasma left circulating.

This is not necessarily a new trend; but 10 years ago, Americans were able to offset their dwindling buying power by taking on massive debts through easy Federal Reserve fiat fueling questionable bank loans. They no longer have this option; thus, consumption is going to degrade (and is degrading) to the point that the current financial structure, stuck in its rigid and fragile dynamic, will collapse. There is no way around it.

As stated in my last article, the numbers given here are in most cases establishment-generated statistics. A common argument among state apologists and propagandists is that we in the alternative economic field should be labeled “hypocritical” if we debunk some mainstream stats while using others as reference points. I would make clear yet again that it is the contradictions within the government’s own numbers and claims that alternative analysts are concerned with. My view is that when mainstream numbers actually reflect negative economic trends, they should be multiplied according to other prominent factors. That is to say, when the government bureaucrats and fantasy masters finally admit things are bad, they are actually much worse than indicated.

Some mainstream statistics are outright fraudulent; some are half true; others are factual yet hidden in plain site from the general public. In between the lines of all of this information, good and bad, alternative economists attempt to discern as much foundational truth as possible. As this series continues, I believe readers new to the liberty movement, as well as longtime activists, will come to view a wider and fuller picture of our fiscal situation and come to the same conclusion I have: that the manner in which we live today is about to drastically change, and that this coming change is being hidden from us deliberately by those who wish to use a tactic of financial shock and awe to their ultimate advantage.

–Brandon Smith

The IRS and the propaganda that perpetuates it

Uncle Sam has your tax and bailout money

It is tax season, and everybody feels the compulsion to conform to ensure they have paid their “fair share” to Uncle Scam.

Of course that is a ruse, and that’s why I call him Uncle Scam. The income tax is not collected to fund the operation of the government. It is not needed to fund the operation of a government that can print money to infinity. The income tax is nothing more than a regulatory system and an information collection system.

I am not the first or only one to ever say this, but few understand it. As far as I can tell, information that the income tax is not necessary to fund government was first uttered publicly by a government functionary during the last year of World War II. Beardsley Ruml, chairman of the Federal Reserve from 1941-1946, said in a speech before the American Bar Association, “The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government.”

You may ask how this is so. Well ask yourself this question: If you had a printing press and could print money as much and as often as you like, would you ever have to work again? The government has such a printing press.

So why is there an income tax? It is to regulate consumption, control behavior, control and redistribute wealth, and compile dossiers on all citizens. The Form 1040 is the “taxpayer’s” dossier.

In a system as the whole world lives under today — where central banks create “money” (bank credit) at will — consumption of the people must be strictly regulated. Government consumption competes with the consumption of the people. If consumption is not regulated, “money” becomes worthless and the fraud of the financial system is then revealed. Money must be regulated out of circulation in order to prop up its value and maintain the system.

The concept of regulation is the key to understanding government finance. This is not taught in the public or private school systems. It is not taught at any university or college teaching mainstream economics. It is only taught in the few places that teach Austrian economics.

The reason is that you are not supposed to know that government creates its own money and uses it to steal the wealth of the American people and the people of the world. And although they benefit greatly from this spoils system, not one accountant, CPA or tax lawyer in 10,000 even comes close to suspecting what I am stating.

The monetary system of the United States and its income tax system have to do with the transfer of real resources from the people to the government, banksters and corporate state without payment.

People tell me that the subject of money and finance is a dull and monotonous study. Is it? When you look upon the millions of graves of American soldiers, as well as those around the world both Jewish and Christian, you are looking at the real Holocaust of American democracy created with bank credit and propaganda. Not one Christian preacher or Jewish rabbi has said one word to reveal this racial genocide to their people. The guilt of the “Holocaust” is upon their heads. Their purpose has been to confuse cause and effect in the minds of the people. They have succeeded.

Simply put, the power of propaganda to distort and control the mass mind is more powerful than all the armies and military technology of history combined.

The “income tax” as it is called is both immoral and illegal. The IRS was formed in 1913 following the adoption (it was never properly ratified) of the 16th Amendment. It is one of the greatest frauds ever perpetrated upon the American people. Now no one questions it. They just grouse about it every spring.

The income tax was enacted even though the U.S. Supreme Court had only recently ruled in Pollock v. Farmers’ Loan & Trust Co. that certain taxes on direct income were unconstitutionally unapportioned direct taxes and violated Article I, Section 9 of the U.S. Constitution. Not covered in Pollock is the fact that the income tax also violates the 5th Amendment: No person shall… be deprived of life, liberty or property… nor shall private property be taken for public use without just compensation.

A heavy progressive or graduated income tax is the second plank of the Communist Manifesto. The central bank (aka the Federal Reserve) is the fifth plank. The United States has essentially adopted all 10 planks of Marxism. For its part, the Federal Reserve was formed during a wave of bipartisan progressive legislation passed during the early 1900s that transformed the American economy and society from one of roughly laissez-faire to one of centralized statism, as Murray Rothbard writes in “A History of Money and Banking in the United States.” The Fed was also fraudulently promoted, as those who were working behind the scenes to pass the legislation were acting in public as if they opposed it.

The U.S. government had functioned without an income tax for more than 100 years, except during the time of the War of Northern Aggression, when Abraham Lincoln passed an unconstitutional tax on income to fund his war machine.

During the run-up to the 16th Amendment, President Woodrow Wilson promised Americans that only those earning more than $10,000 (about $100,000 in today’s dollars) per year would even pay taxes and the tax rate would never exceed 3 percent (now 36.9 percent). In the beginning, that was so; but within four years families were taxed on all income above $1,000 and the top rate had risen to 76 percent, demonstrating how the elected class lies without compunction.

The government began tax withholding in 1943. By withholding a portion of a worker’s paycheck, government is able steal the wealth of its citizens slowly over the course of a year, silently and with little outrage. This is vile treachery, even if the worker receives his money back when he files his “income taxes.” It means that for a year the government has had an interest-free loan on the backs of the citizenry. When the government returns that money, it is viewed as a benevolent master by ignorant citizens who assume the government is giving them some kind of gift, never realizing how poorly they have been used.

The income tax involves a confession of judgment with the threat of incarceration and penalties if one does not confess, i.e., sign the 1040 form. This act of incrimination is presented in supreme hypocrisy as a “voluntary” act. Can you imagine how many millions of Americans self-incriminate in a blanket confession on an IRS 1040 form? Even in a criminal proceeding a defendant is not required to testify against himself. In fact, he is not even compelled to speak at all, nor confess in any form.

After you have confessed judgment under duress, the IRS then takes the information that you supply and uses it to incriminate you. This, my friends, is exactly the system used by Nazi Germany that Americans have been taught to hate. What chicanery! What deception.

Do you now believe in the power of propaganda? Would you believe it if you knew for sure that the income tax system has nothing at all to do with collecting money to support government operations? I remind you again that the power and propaganda of Nazi Germany came out of bank credit. This is not in the history books. It was not mentioned in the world showcased Nuremberg Trials. The issue was never raised because it would have revealed that the United States was a de facto wartime ally of Nazi Germany in that they used military and psychological warfare against each other and equally against their own respective people.

What did the war and the Nuremberg Trials accomplish except to conceal genocide against the Anglo-Saxon Germanic race?

The Bundesbank today is an identical bank credit machine as was the Reichebank of Hitler Germany. The Reichebank did not change its name to Bundesbank until 1948, two years after the Nuremberg Trials. After millions of dead Jews and Christians, nothing has changed but the names. God help us!

At the Nuremberg Trials, not one German Reichebank official was tried, yet the military colossus of Nazi Germany could not have been possible without bank credit (money) created by the Reichebank. Is the world deceived into fixation on the “Holocaust” to cover the bank credit crime as the origin of all modern wars?

The military men tried at Nuremberg were pawns and decoys of this master deception. Quite possibly, not one of them had any awareness that they were pawns of international bank credit. This is equally true of allied military people, as well as the judges themselves at the trial.

The currency you use to acquire things you need is not money. Federal Reserve Notes are not notes. They are not dollars, and they do not satisfy the definition of money. So what are they? They are commercial paper.

The dollar is a myth. Oh, I know that we have green strips of paper in our pockets that we believe are dollars. The numbers on the green strips of paper are our “dollars.” So what we “spend” every day are the numbers or the symbols on our green strips of paper or in our checking accounts.

Now to set this illusion in concrete, the IRS does reduce the numbers (money) in our checking accounts when we authorize it to do so via our Form 1040 tax return. But no one ever asks where the numbers (money) go when deleted from our checking accounts. These numbers (money) do not go to Washington as taxes to pay anything. They go into the cyberspace of the IRS computers.

The tax system is a masterpiece of deception and trickery.

BRICS SDR to Bailout Eurozone

Workers on scaffolding work  in front of

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The different angles of geopolitical and macroeconomic events are beginning to coalesce into the direct 90 degree turn which will shift the global financial system in the direction of the multilateral architecture. The apparent movement away from the USD unipolar structure towards the multilateral framework which is being implemented in stages is becoming more visible with each passing day.

This movement is taking the “two steps away from the USD and one step back” approach, and with each turn and shift the USD is being further removed as the primary reserve currency used in global trade. The much promoted death of the dollar in the alternative media is largely based on misinformation and unintended breaks in analytical rationalization as the full scope of the multilateral structure, and the global support from all countries of the world for such a system, has been cleverly hidden behind a script of geopolitical tension, as well as the dual crisis of growing sovereign debt and currency imbalances.

It should be stated that the USD will categorically remain as one of many reserve currencies with it’s position secure in the SDR basket composition, alongside the Chinese renminbi, among others, potentially even the Russian ruble.  The path of the Special Drawing Right is being drawn along the transition points of the multilateral structure.  These transition points exist as both geopolitical and macro-prudential positions which have been carefully scattered across the global landscape.

Each point, like a connect-the-dots picture, is being absorbed into the whole as the scripted tension and policy initiatives are implemented under the guise of ideological and political mandates.  The Ukrainian crisis in Eastern Europe is one such point where the existing USD order of the Eurozone is being transformed into the Eurasian mechanics of the multilateral.

We are now seeing how the Ukrainian geopolitical point is being connected to the macroeconomic point of the debt restructuring script which is presently unfolding in Greece. The newly elected government of Greece has threatened to accept the offered financial assistance of Russia and China, which more broadly represents the BRICS countries.

In turn, Greece, through Cypress, has geopolitically offered Russia access to military facilities on the Mediterranean island.  This is the connectivity point between the geopolitical Ukrainian crisis and the Greece sovereign debt crisis, which will soon expand into the larger Eurozone monetary crisis.

The Greek contagion, as it is being called, is threatening to spread to Spain and Italy, and eventually across the whole of the continent. Ukraine, the seam between the old Eurozone and the new Eurasian zone, could also be economically salvaged by the BRICS countries when the USD interests eventually back away from the brink of a war that no one wants, especially the European countries who would have to bear the brunt of such a drastic geopolitical affront.

The latest free-trade agreement between Russia and Egypt is also very telling of the transition points of the multilateral shift.  Egypt and Libya, both of whom recently evaded direct American control and influence in their countries, are positioned extremely well to capitalize on the growing mandates of the multilateral architecture, as currently represented by the BRICS institutions.

Returning to the Greek situation, the hardline stance of Germany on debt restructuring, or delaying, stands in stark contrast to the overt pivot towards Russia which is being established within the macro script.  Germany and France are both beginning to show signs of shifting away from the traditional geopolitical alliance with the North American continent and standing with their “common history” partner Russia.

And yet, Russia is supporting Greece in their attempts to leverage, against Germany, the threat of a Eurozone banking failure. This oppositional positioning at first appears to be contradictory to the messages being sent by the leaders of each country, but the transitional scripting is smoothly directing our attention across the points which have been previously established., as discussed above.

Each geopolitical and economic point in the transition script will eventually consolidate into larger macro points of the multilateral framework.

But how does a large banking failure across the Eurozone shift the world closer to the multilateral structure?

The most probable strategy is likely to intentionally force the Eurozone banks into failure so that the European Stability Mechanism will have cause and pretext to take over control of the European banking infrastructure.  The ESM would be the logical first shift towards a broader SDRM, or Sovereign Debt Restructuring Mechanism, which would be managed directly by the more macro FSB, Financial Stability Board, and the International Monetary Fund itself.

Whether the initial first debt consolidation, or restructured, offered by the BRICS Development Bank to the Eurozone is denominated in SDR or RMB is something of a mute point as the end consolidation will involve the more supra-sovereign SDRM, which will obviously be denominated in SDR.

Another contradictory segment of the transitional scripting can be found in the support of America’s staged fight with ISIS in the Middle East. Russia, Iran, and China, are all supporting USD interests in the region. All sides are reading from the same script which is being promoted by Washington.

Much of this could have to do with the Middle East being divided into southern and northern monetary unions.  It is hard to imagine the current borders of the Middle East being maintained after the multilateral transition has been completed. With China now moving into Afghanistan and Saudi Arabia shifting alliances, it’s beginning to appear as if USD interests will remain entrenched within Iraq, as a strategic reserve of energy and petroleum products.

The two big energy resource regions, being the Middle East and the Caspian Basin, are being strategically divided amongst the largest economic members of the multilateral in order to facilitate a sense of balance in economic alliances. Once pro-American regimes are beginning to fall and be replaced by alternatives, such as in the nation of Yemen, the soft underbelly to Saudi Arabia and the petrodollar arrangement.

Canadian Finance Minister Joe Oliver has recently stated that the USD system, though carrying the world, is simply not sustainable.  This is a clear reference to the systemic imbalances which China and other countries have discussed in the months and years after the financial crisis of 2008.

These imbalances, and what Joe Oliver was referencing, are best explained in something called the Triffin Paradox, which I will explain in further detail in the forthcoming ePublication titled Re-Engineering the Dollar.

The attempts of others to ignore the obvious connections between the SDR and the BRICS nations, as well as the multilateral mandates, all of which are discussed in the official white papers and publications of the nations treasuries and central banks, as well as other institutions, are of questionable intent.

As detailed in the post The SDR Purpose of BRICS, the New Development Bank will be the first issuer of SDR denominated bonds.  This liquidity will facilitate the SDRM process and ensure that the multilateral architecture is established in staged intervals as the global deflation continues to expand.

The broad failure of the banking infrastructure in the Eurozone will lead into the transition point of a BRICS bailout with SDR bonds and SDRM restructuring.  The micro transition points of the ESM, European Stability Mechanism, will shift into the macro transition points of the FSB, Financial Stability Board, as the larger mandates of the multilateral framework become more visible.

That is the real story, not secret sources and banking overthrows, though the current system is being “cleared” of witnesses and evildoers, to term a Bush phrase, as well as adjustments to tax laws and capital flows, all meant to fit the broader macro mechanics of the multilateral.

Now we continue to study and observe as the increasing number of BSA’s, or Bilateral Swap Arrangements, between China and the rest of the world sets the stage for the RMB’s inclusion into the SDR composition which will facilitate the Eurozone bailout.

Europeans are being lead directly into a systemic banking failure which will force the ESM to take direct control of the banking system and shift the whole framework upwards into the larger mandates of the FSB and IMF.  This is why the alternative and mainstream scripts of BRICS resistance to the international banking order are so important.  Any connection between the BRICS institutions and the SDR of the International Monetary Fund are to be avoided at all costs.  A small army of alternative “analysts” have spread the “overthrow” storyline far and wide.  And the mainstream media have been running the Greece far-right script on a regular basis.  Nothing is promoted in the mainstream unless it serves a purpose.  Think it through.  – JC

The Highest Ranking Politician who Believes in Aliens

Dear Andy,  
 

This is a hot-off-the-presses and
explosive interview by WeAreChange’s
Luke Rudkowski with the first and
only cabinet-ranking official from
a G8 nation to have publicly stated
a belief in extraterrestrials: the
impressively sprightly 91-year-old,
The Hon. Paul Hellyer.

Paul Theodore Hellyer, PC is a
Canadian engineer, politician,
writer and commentator who
has had a long and varied career,
which includes having served as
Canada’s Minister of Defense. Hellyer
is the longest-serving current
member of the Privy Council.

Hellyer goes into detail about his
face-to-face meetings between US
officials and of these officials’ direct
experience with extraterrestrials and
about the sharing of alien technology
with humans, under the aegis of US
Black Budget programs.

Hellyer suggests that the reality of
UFOs and aliens and the official secrecy
and the hoarding of information
regarding same, is inextricably tied to
the plans of of a powerful, fascist group
of people, who plan to institute, by
means of extreme force and genocide,
a completely fascist New World Order
(although he does not use that last
term, spcifically).

This is one of the themes of his recently-
released book, ‘The Money Mafia: The
World in Crisis.’ [Much to my surprise,
an FKTV subscriber has informed me
that I am personally cited twice in this
book – so I’ve got to buy it, now!]

He suggests that the full disclosure
of the alien reality on Earth is
something that could help foil the
large-
scale genocidal plans, which
this fascist group
has planned for
the people of Earth.

To this end, Hellyer advocates Amnesty
for all participants in Black Budget
human-alien projects, so that they
can be held immune from the crimes
they were forced to commit while
employed at these jobs and so that they
can come forward without fear of reprisals,
for breaking their oaths of secrecy and
freely share their information about these
projects, which are illegal, in and of
themselves, having been conducted
without any legal oversight, with the
use of US Taxpayer money.

Hellyer also suggests that official ET
disclosure must come sooner, rather
than later, as the current trajectory of
US-dominated geopolitics can only lead
the planet to disaster.

THIS CHART Tells a Story… America’s Middle Class Thrived After WWII and Died Under Obama

Thank you Mac Salvo of SHTFplan   (  http://www.shtfplan.com/ )

The Davos World Economic Summit has long been a parade for the insider agenda, putting the power players’ plans for the world’s economies on display as a preview to their playing out for the rest of the year.

But so far, the 2015 elite retreat in the Swiss Alps has proven to be full of apprehension, and even horror… with many of its own members expressing regret at the world they have built.

The Guardian reported:

The billionaires and corporate oligarchs meeting in Davos this week are getting worried about inequality… even the architects of the crisis-ridden international economic order are starting to see the dangers. It’s not just the maverick hedge-funder George Soros, who likes to describe himself as a class traitor. Paul Polman, Unilever chief executive, frets about the “capitalist threat to capitalism”. Christine Lagarde, the IMF managing director, fears capitalism might indeed carry Marx’s “seeds of its own destruction” and warns that something needs to be done.

The scale of the crisis has been laid out for them by the charity Oxfam. Just 80 individuals now have the same net wealth as 3.5 billion people – half the entire global population. Last year, the best-off 1% owned 48% of the world’s wealth, up from 44% five years ago. On current trends, the richest 1% will have pocketed more than the other 99% put together next year. The 0.1% have been doing even better, quadrupling their share of US income since the 1980s.

These billionaires are not concerned with a fair or truly equitable world, of course. But they may well be concerned about having pushed the system beyond the brink, and triggering global collapse or unrest as a result of things gone way too far.

On top of a bloated super-surveillance police state that is still expanding in the age of Big Data and continuing terrorism, it is a “wealth grab on a grotesque scale” that has stood out the most in 2015.

In 2015, it has become obvious that inequality has become just plain cynical, unsettling and, perhaps, downright revolutionary… and even the insulated, egocentric billionaires have taken notice.

Meanwhile, the Telegraph compiled a set of compelling reasons to think the world has fallen back into crisis, with a global economic meltdown perhaps looming overhead.

Charts compiled from 2014 data showed gloomy numbers in everything from stunted growth, mounting deflation, collapsing oil prices (and with it a collapsing Russian economy), conspicuously low central bank interest rates, mounting debt in Europe and the UK, new waves of the Euro-crises in Greece, Italy and Spain, and shortcomings in previous forecasts for growth by the IMF.

In short… well, things are not looking so great.

Along with the other factors mentioned above, this chart, published by the London Telegraph, shows what has happened to Americans as they struggled to tread water and keep afloat after 2008. For the United States, there have been some signs of improvement, but mostly for those already on top. And the general decline in the global rankings of economic freedom and civil liberties does not complement the widening inequality, either.

wealth-gaps

It illustrates the dramatic shift from the post World War II years of economic expansion to where we stand now…

As Neil Irwin reported for the NY Times:

Who benefits from rising incomes in an expansion has changed drastically over the last 60 years. Pavlina R. Tcherneva, an economist at Bard College, created a chart that vividly shows how.

Back in the 1940s, ’50s and ’60s, most of the income gains experienced during expansions — the periods from the trough of one recession until the onset of another — accrued to most of the people. That is to say, the bottom 90 percent of earners captured at least a majority of the rise in income.

With each expansion in sequence, however, the bottom 90 percent captured a smaller share of income gains and the top 10 percent captured more.

after-total-war-total-living

Post-WWII and the Burgeoning Middle Class

It’s not that things were ever perfect, but… here’s a glimpse into how most Americans – the “average” American in the middle or lower class was doing, overall, half a century or so ago. With a strong manufacturing and industrial sector, many had the opportunity for a good paying job, a home and some semblance of upward mobility. Not all was rosy, but by the numbers, things were on an even enough keel.

In short, the chart begins in 1949, when the income growth for most Americans outweighed that of the top 10% by a factor of four to one.

The trend gradually declined, moving from 80% of income growth in the bottom 90% in 1949-1953 to just 55% in the years 1975-79.

During those years, most Americans steadily enjoyed relatively high wages and general prosperity.

gas-ration-stamp

Energy Crisis and Stagflation of the 1970s

The 1970s represented a turning point, however, with several stages of the oil crisis hitting in 1973 and 1979. Foreign policy led to OPEC hiking energy prices; Americans in turn saw rationing and a rise in the cost of living; middle class wealth and job opportunity took a dive.

The beginning of deindustrialization meant that, more and more, Americans weren’t producing actual goods; manufacturing was in decline, and many good jobs were soon shipped over seas.

Meanwhile, wealth on a global stage flowed through the petrodollar, which was, in turn, recycled on Wall Street, making speculators and banking houses – not good and production – the center of the economic universe.

reagan-80s

Deregulation and Unfettered Speculation in the 1980s and 1990s

Thus, the increases in income as wealth changed dramatically in the following decades, starting in the year 1982 and continuing to 2000 and the end of the century.

During the presidencies of Republicans Ronald Reagan and George Bush and Democrat Bill Clinton, income growth patterns flipped from their post-war patterns, with the top 10% suddenly outpacing everyone nearly 3-to-1, and regular folks seeing a noticeable decrease in their earnings.

In short, the middle class in decline. And things were getting even worse for those at the bottom.

The deregulation atmosphere of the 80s represented a complete upheaval of the post-war middle class boom.

As Wall Street’s predatory capitalism became the law of the land, a full 80% of income growth went to those at the top, while middle and lower class wealth suddenly staggered to a 29% share.

The 90s continued this trend, with income growth for the bottom 90% dropping to 27%.

This fast-paced era of “free market” (crony) capitalism – as defined and enhanced by Wall Street – only set the stage for what was to come, however.

rubin-greenspan-summers

The Walls Come Down: End of Glass Steagall and Rise of Derivatives Intro 21st Century

For those looking back after the 2008 financial collapse, these are the years in which the Glass Steagall Act, which had separated commercial and investment banking since the 1930s, was repealed with the handiwork of Clinton’s Treasury Secretary Robert Rubin and Larry Summers, Rubin’s deputy and successor.

Meanwhile, since the mid-90s, the derivatives market was opened up for big business, despite the warnings of such regulators as Brooksley Born, then head of the Commodity Futures Trading Commission (CFTC).

Under these important developments, the cynical years of the George W. Bush presidency – initiated by a Supreme Court decision, and not by the electoral process – became even worse.

Income growth for most people ground to a halt, with the total income growth for the lower and middle classes reaching only 2% (meaning most had no meaningful rise in income at all).

Meanwhile, income growth for the top 10% soared to 98% of all increases. America’s richest took it straight to the bank, in an era of massive speculation during a huge housing bubble that would soon come crashing down.

Much has been said about the 2008 financial crisis, but the “too big to fail” banks were signposts for an opportunistic class of Americans who had profited by their own rules when opportunity was dwindling for most people.

After the brink, when taxpayers bailed out the banks, things became even worse for average Americans who found themselves in the so-called “bottom 90%.”

During the Obama years, when many Americans perceived America’s first black president as redistributing vast amounts of wealth to the lower classes, income dropped sharply, with negative growth for 90% of Americans for the first time since World War II.

There was no such leveling out, but a sharpening of the growing disparity nationwide. Obama is a corporatist, not a socialist.

During the period since 2009, when most Americans saw an average drop of 16% in income, the top 10% increased their wealth by a mind-boggling 116%. Their earnings more than doubled, while the average population struggled with less and less. Things reached a point of total us vs. them…

The Occupy Wall Street crowd called it the 1%, but it is much worse than that. The issue is a tiny, tiny few (numbering only a few thousand) who now effectively own it all.

They make the rules, they break the rules, and, well, they just rule. Period.

wealth-gap-1percent

Could the picture be any clearer?

This video shows how America’s perception of the wealth gap underplays the reality, and compounds the problems, and further reveals that in reality, the bottom 40% in the United States have, well, next to nothing to show for themselves in terms of economic wealth:

As for the Middle Class – currently dead, in limbo or alternately M.I.A., columnist Harold Meyerson argues:

The extinction of a large and vibrant American middle class isn’t ordained by the laws of either economics or physics. Many of the impediments to creating anew a broadly prosperous America are ultimately political creations that are susceptible to political remedy. Amassing the power to secure those remedies will require an extraordinary, sustained, and heroic political mobilization. Americans will have to transform their anxiety into indignation and direct that indignation to the task of reclaiming their stake in the nation’s future.

Perhaps that means the Middle Class could be once again revived, if ever sanity reentered the picture, if the bums were kicked out and those guilty of outright treason in the financial and political arenas were finally rounded up and held accountable.

But don’t hold your breath… just hold onto what you’ve got, if you can.

Thanks to Mac Slavo from www.shtfplan.com

Climate Change is Global Communist Tyranny-Lord Christopher Monckton

By Greg Hunter On January 28, 2015 In

By Greg Hunter’s USAWatchdog.com

Lord Christopher Monckton says the “climate change” issue is really a way to gain control of the world.  Lord Monckton, former award winning journalist who was once an advisor to Margaret Thatcher, contends, “This is a story that has been grossly, I mean grossly, oversold.  They have exaggerated beyond all reason.  Just this week, I’ve had a major paper published in the Science Bulletin of the Chinese Academy of Science which gives the reasons why they got it wrong.  We went into their wretched climate models and took them apart.  We’ve found what they did wrong, and we exposed it. The left have gone ballistic.”

Lord Monckton goes on to say, “What seems to be happening is the communist, in particular the hard left, have taken up these climate cudgels in a very big way, and they are the ones that are really driving this agenda.  Why are they doing this?  That is the first question.  The reason, of course, is they have long wanted to set up what used to be called the socialist international.  It’s a single giant global communist tyranny.  Of course, you get Obama, whose father was communist.  His chief mentor was communist.  His rhetoric is communist.  He has taken this up in a big way.  The State of the Union Address was really rather pathetic. . . . I never thought I’d see the United States electing a communist as President.”  Lord Monckton also points out, “These people are totalitarian.  These are people who want global government. They want to be part of a regime of total control. . . . This is what the hard left has always wanted.  It was the same in Hitler’s Germany. . . .Now, you got the communist party in the United States, but now they are calling it the Democrats.”found what they did wrong, and we eThe co-founder of Greenpeace, Patrick Moore, has made public statements that say there is “no scientific proof” humans are the cause of global warming.  Lord Monckton, who knows him personally, says, “Patrick Moore has made a very moving speech about how he tried to set up a genuine environmental organization.  Its intention was to make the world a better place, to leave a smaller environmental footprint on the world. . . . He is heartbroken.  I can’t tell you how sad he is at the perversion of the organization he founded.  Goofy teenagers are giving it money and going around collecting money, not realizing that what they are actually collecting money for is not an environmental organization anymore.  It is a communist front.  It is there solely to bring in a world government to put its people in charge, using the environment just as Hitler used it as the excuse for additional totalitarian control.  Let’s not forget, it was Hitler who first founded the green movement and first used the environmental movement, not for the basis for genuine concern about the environment, but as a basis for getting control over every detail over people’s lives so they couldn’t argue back.  That’s what this is really all about. . . .  I get criticized all the time as to why I don’t just stick to the science.  I say somebody has to tell the truth, not only about the science, but also about the politics.

Lord Monckton believes there is climate change, but he does not believe man has anything to do with it.  Lord Monckton says science will ultimately back up that claim.  Why the recent push on climate change that is also called global warming?  Lord Monckton says, “I think they are panicking because they know that this process  . . . cannot be kept going for very much longer because . . . it’s been 25 years since the UN produces a report saying we were all doomed, and since then, the rate of warming has been half of what they predicted and well below their entire range of estimates.”  Also, former Vice President Al Gore predicted the polar ice caps would be melted by now.  Just the opposite has happened, as Lord Monckton points out, “If you took the Artic and the Antarctic together, global sea ice was the greatest it’s been throughout the 35 years of the satellite era.  It is greater than it has ever been before.”

Lord Monckton closes by saying, “God Bless America, and in light of what’s to come, if we don’t stop it, God Bless us all.”

Join Greg Hunter for an in-depth interview with Lord Christopher Monckton.

(There is much, much more in the in-depth video interview.)

After the Interview:

Lord Monckton says he is simply a “seeker after truth.” If you would like to read Lord Monckton’s peer reviewed research paper on the Chinese Academy of Sciences website, click here.  Lord Monckton says if he’s correct, this may ultimately prove to the world that man-made global warming is a false narrative, and there is no need for taxes and regulation to combat it.

Paul Craig Roberts – The Whole World Is Staring Down The Barrel Of A Gun As Global Collapse Looms

Paul Craig Roberts – The Whole World Is Staring Down The Barrel Of A Gun As Global Collapse Looms

In the aftermath of last week’s black swan announcement by the Swiss and on the heels of the ECB’s announcement that they are going to inject $1.3 trillion of stimulus into Europe’s beleaguered banking system and bond market, today former U.S. Treasury official, Dr. Paul Craig Roberts, warned King World News that the whole world is staring at the barrel of a gun as global collapse looms.

Eric King:  “The ECB just made the announcement that they are planning to inject $1.3 trillion in stimulus into the European banking system and bond markets.  What is this really all about?”

Dr. Paul Craig Roberts:  “Eric, we now have the yen being printed in vast quantities.  The Fed has supposedly stopped printing the U.S. dollar but it really hasn’t because during the period of quantitative easing the banks received $2.6 trillion.  All that money is available and will continue to be used to buy bonds.  Of course the Fed itself has $4.5 trillion on its balance sheet and as it receives interest payments it will also continue to buy bonds.

So you have quantitative easing in Japan, in the United States, and now we have it once again in Europe.  So the three large currencies — yen, dollar, and euro — are being created at an alarming rate….

“The effect of this  is that it forces other countries to print money so that their own currencies don’t soar in value relative to the yen, dollar, and euro, which would undermine their export markets and economies.  One country has already broken ranks from these insane policies.  The Swiss realized that they could not possibly keep the peg intact, so they abandoned that last week in the announcement that shocked the world.

King World News - Roberts 1:22:2015

Whole World Staring Down The Barrel Of A Gun

So we have a situation where the United States, the EU, and Japan have the whole world staring down the barrel of a gun.  They are forcing inflation on the entire world.  You have to ask yourself:  Why do the United States, Japan, and the EU have a right to do this and who benefits?  Well, the answer is that the elite benefit from this policy.  This a way of further enriching a tiny amount of people at the expense of everybody else in the world.  This is all about enriching the elite.  That’s all this is about, and the rest of the population in the world is paying for it.”

Terrifying Warning

Eric King:  “Today Egon von Greyerz, the man who predicted collapse of the euro against the Swiss franc just 52 days ago, made the frightening prediction of total global collapse.  Greyerz said that all of the central banks are bankrupt and that’s why the world’s financial system will not survive and a total global collapse is in front of us — your thoughts on this ominous warning from Greyerz.”

Dr. Roberts:  “He is right that we are facing a global collapse.  Central banks have paid 100 cents on the dollar for assets that may not even be worth one cent on the dollar.  What’s also driving the world to economic collapse is the fact that the central banks are recklessly printing unprecedented amounts of fiat money to keep their global Ponzi scheme going.

Horrific Situation

So you have these unprecedented amounts of fiat paper money hanging over the global economy.  This vast amount of paper money has not been matched by real economic production.  It’s the implication of that horrific circumstance that will also cause the global collapse.  

What would it have meant if Switzerland had continued to hold the currency peg?  It would have meant the Swiss would have ended up with a much larger money supply then the entire annual Gross National Product of Switzerland.  The implications of that are hard to fathom.  It would have meant that there were more Swiss francs in existence than could be used to buy up all the annual goods and service produced by Switzerland.

Mega-Catastrophe To Destroy Average Citizen

And there is a complicity by the elite who are caught up in this unprecedented global money printing scheme.  They are all caught up in the corruption.  But at some point people will realize this is worse than a Ponzi scheme.  They will realize this insane policy has the world headed for collapse.

All of this corruption is overwhelming to sensible people.  So the central banks are only serving the interests of the elite and that is where the collapse will come from.  There is no connection between the monetary policy in the United States, Europe, and Japan, and the people.  In fact, the elite have the entire world headed for a mega-catastrophe that is sure to financially destroy the average person and send the world into total chaos.” ***ALSO JUST RELEASED: Man Who Predicted Collapse Of Euro Against Swiss Franc Makes Second Terrifying Prediction CLICK HERE.

Source:  http://kingworldnews.com/paul-craig-roberts-whole-world-staring-barrel-gun-global-collapse-looms/

The Shadow of Tomorrow

Revolution

The Forthcoming CSI Event

By JC Collins

When President Obama stated last night in his State of the Union Address that the “shadow of crisis has passed” it perfectly set the stage for the next phase of the CSI, or Cultural and Socioeconomic Interception.  The CSI is a prolonged and multi-scripted methodology which is implemented over years and decades to engineer specific adjustments to the collective awareness of  mass populations.

The economic manipulation from external forces in the years leading up to the French Revolution, and the script which shifted the blame onto the the monarchy, is one such example of the CSI procedure.  Another is the recent representation of Russia and Putin in the western media as the aggressor in the Ukraine situation.  The script is rolled out through the mass media in segmented flashes with just enough time in between to lull the viewer into a state of apathy and acceptance.

The CSI is not one single event, or a false flag incident, such as the Reichstag Fire in Nazi Germany or  the Great Fire of London in 1666, but is a series of acutely engineered scripts which are melded together by the single false flag events.  See post The First False Flags – Money Changers and the Great Fire of London in 1666, for a more detailed explanation of the CSI.

Back in the beginning of 2014 I began to explain how a method of the Hegelian Dialectic was going to be used in transitioning the world from the unipolar USD based financial system to the multilateral SDR based financial system.  It was stated that the process of “problem, reaction, solution” would herd and manipulate the mass populations of the world into accepting the supra-sovereign governance of the global institutions.

Each region of the world has different and unique circumstances which require different and unique modifications to the CSI process.  These micro scripts are intended to consolidate within the larger macro script as the full transition begins to manifest in the broader economy.

The micro CSI scripting is unfolding at a furious pace over the last few months, with increasing frequency in the last few weeks.  The script of the economic recovery in America is the most obvious CSI which has been presented to the masses, and with the State of the Union speech last night, along with the “shadow of crisis has passed” phrase, we can determine that the recovery CSI has now been closed.

This analysis is extremely important because the macro CSI which has been slowly unfolding since the financial crisis of 2008, mainly from the emerging economies, such as the BRICS countries, and the Euroasian Trade Union, as well as some of the international institutions, has been promoting the script of systemic imbalances which have been caused by the USD reserve structure.

The script calls for a multilateral monetary framework to replace the unipolar USD framework.  The shift away from a USD system, and the imbalances which have been created over the decades, such as exchange rate volatility and account deficits, will no doubt cause some dramatic lows and highs across the financial world.  Some of the highs and lows are clearly visible today as the USD appreciates and drives further depreciation into any currency that is pegged to it.

As the multilateral continues to be implemented, this existing exchange rate structure will begin to fracture, as we witnessed last week with the Swiss franc, and the dollars held in the foreign reserve accounts of central banks around the world will be converted or exchanged for alternative liquidity, such as SDR bonds.

The recovery CSI has given the American banking and industry interests, represented in the colorful composition of the Democratic and Republican parties, the ability and confidence to shift-blame the massive deflation in the international financial system on external entities.

The script will read something like “external factors outside of American control have reversed the recovery and hard work of average Americans”.  This script will focus mass awareness away from the coming internal governance measures, (required to integrate America into the multilateral system) and focus the confused and disappointed apathy of the masses onto whatever foreign and external source that is built into the macro script.

Any internal emotion will be swallowed in whole by manufactured racial tension and other methods of civil unrest.

The melding of the “American recovery” CSI script and the macro multilateral CSI script will require an “event” of undetermined characteristics and methodology.  Now that the “recovery” script has been closed, we can expect to see this “event” take place at any time.

The “event” could be a geopolitical false flag, or some form of “sudden” crisis in the global financial system, or a combination of both.  The candidates vary from an expansion of proxy wars in Ukraine and Syria, a sudden crisis between North and South Korea, or a fragmentation of the euro currency and consolidation of the European Union into the Euroasian Trade Union, and any other number of possibilities.

Perhaps an engineered global revolution with the end result clearly defined as a multilateral framework which “will reduce systemic corruption and correct financial imbalances”.

The intent of this post is not to scare or fear monger, which is why I carefully choose the words and language I use, but to bring awareness to the CSI process and how it is being implemented throughout mass populations around the world. It requires abstract thinking and the ability to recognize repeating patterns across the socioeconomic and geopolitical spheres.

The World Economic Forum and the IMF today called for a “central bank of oil”, which is code for regulating the oil pricing mechanism and ultimately using the SDR as the unit of account for not just oil, but all other commodities. This CSI scripting fits perfectly with what we have been discussing for the last year in regards to the multilateral transition.  So far our analysis has been correct on both the methodology and scripting practices of the transition.

All central banks around the world are implementing their own micro CSI script for the purpose of shifting upward into the macro CSI script.  This also includes Russia and China, both of which have been the most vocal about the need for the multilateral framework.

We are all like the people of France in the years and months leading up to the French Revolution.  Please don’t accept any scripting which promotes the idea of the source of the problem becoming the solution to the problem.  The French had no idea what hit them.  We do.    – JC

Admiral: U.S. could have ousted Gadhafi peacefully

This is how it is done, has always been. Notice how “Everybody” knew AHEAD of time. That’s why all these “Congressional Hearings” on TV are a joke meant to entertain Mickey Mouse and a few sheeple.

Brokered deal but Obama chose to arm al-Qaida-linked ‘rebels’

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NEW YORK – As the allied bombing of Libya began in 2011, the Obama administration rejected an offer by Moammar Gadhafi to engage in negotiations to abdicate, according to a retired U.S. Navy officer who says he was prepared to broker the deal.

Instead, the U.S. decided to provide weapons to “rebels” consisting of al-Qaida-related local Libyan militia and members of the Libyan Muslim Brotherhood, contends retired Rear Adm. Chuck Kubic.

Kubic began email and telephone contact March 21, 2011, between Tripoli and AFRICOM in Stuttgart, Germany, to broker an offer by Gadhafi to engage in talks with the U.S. under a white flag of truce, according to testimony he provided the Citizens Commission on Benghazi.

As WND reported Monday, the commission – comprised of 17 retired admirals and generals; former intelligence agents; active anti-terrorist experts; media specialists; and former congressmen – has been conducting its own investigation and working behind the scenes for the past year and a half to ensure Congress uncovers the truth of what happened in Benghazi and holds people accountable.

WND reported Tuesday the commission found in an interim report that the Obama White House and the State Department under the management of Secretary of State Hillary Clinton “changed sides in the war on terror” in 2011 by implementing a policy of facilitating the delivery of weapons to the al-Qaida-dominated rebel militias in Libya attempting to oust Gadhafi.

As WND previously reported on Tuesday, the Citizens Commission on Benghazi has concluded the State Department then under the direction of Secretary of State Hillary Clinton authorized Christopher Stevens prior to the fall of Qadhafi to enter Libya at Benghazi from a cargo ship, where he implemented an Obama administration policy of facilitating the delivery of weapons to the al-Qaida-controlled rebel militias in Libya attempting to oust Gadhafi from power.

The commission’s April 2014 interim report said the war in Libya continued “and ultimately cost tens of thousands of lives.”

“The U.S. failure to even consider Gadhafi’s request for talks, and its determination to enter and pursue this war in support of al-Qaida-linked rebels, presents the appearance of a policy intent upon empowering Islamic forces with no measurable benefit to U.S. national security,” the report said.

The Citizens Commission on Benghazi involves a group of 17 now retired admirals and generals, former intelligence agents, active anti-terrorist experts, media specialists, and former members of Congress organized

The commission was organized in 2013 by Accuracy in Media Editor Roger Aronoff along with three retired military officers: Navy Adm. James Lyons, Army Maj. Gen. Paul Vallely and Air Force Lt. Gen. Thomas McInerney.

Their interim report said Gadhafi “expressed his willingness to abdicate shortly after the beginning of the 2011 Libyan revolt, but the U.S. ignored his calls for a truce, which led to extensive loss of life (including four Americans), chaos, and detrimental outcomes for U.S. national security objectives across the region.”

In the following days, the report said, Gadhafi “expressed interest in a truce, and possible abdication and exile out of Libya.”

“He even pulled his forces back from several Libyan cities as a sign of good faith.”

The report detailed the precise chain of communications with the U.S. government regarding the possibility Gadhafi would abdicate and obviate the need for the U.S. to join with NATO to back the al-Qaida-affiliated militia seeking to depose the dictator.

Kubic, according to the report, telephoned Lt. Col. Brian Linvill, the U.S. AFRICOM point of contact for all military matters regarding the Libyan situation, to “advise him of Gadhafi’s desire to enter into military-to-military discussions.”

Gen. Carter Ham was advised immediately on 21 March 21, 2011, of the communications and conveyed them up his chain of command to the Pentagon.

The Obama administration, however, expressed no apparent interest in pursuing the possibility Gadhafi might step down from power in Libya, the report said.

After two days of communication with the Libyans, however, Ham had received no consent from Washington, D.C., to pursue Gadhafi’s offer.

The consequences of rejecting Gadhafi’s offer to step down were dire, the interim report detailed, leading to the Obama administration “changing sides” in Libya to support and help arm the al-Qaida-related Islamic militia and Libyan Muslim Brotherhood members planning to launch a violent rebellion to oust Gadhafi.

“About the time the bombing of Libya by U.S. and European forces under NATO started around March 19, 2011, I became aware through intermediaries that Gadhafi was ready to step aside and go into exile,” Kubic explained to WND in an exclusive interview. “I was talking through intermediaries to Gadhafi’s top military commanders and the command center at Stuttgart, but I never spoke directly with General Ham.”

Kubic explained he was trying to facilitate a 72-hour truce to conduct discussions between opposing battlefield commanders, Ham for AFRICOM and Gen. Abubaker Saad for the Libyans.

“I was concerned there were too many politicians and diplomats involved, but Gadhafi trusted his generals, and I thought that from a military perspective pursuant to the laws of war this would be the best way to do it,” Kubic continued.

Kubic explained what he was trying to achieve: “This resonated with AFRICOM, so we drafted up proposal and there were phone calls between Tripoli and Stuttgart.

“Under the 72-hour truce, the military commanders from both sides would meet either ashore at Tripoli or afloat, and there would be observers from the African Union to police the truce. The goal was to negotiate a cease-fire, and the purpose was to get Gadhafi’s abdication and his subsequent either internal or external exile.

Kubic said that as an expression of good faith, AFRICOM asked Gadhafi to pull back at Benghazi, “and AFRICOM was able to observe Gadhafi complying and pulling back.”

Kubic noted that part of the initial agreement was for Ham to make a public statement that the U.S. was not targeting Gadhafi.

The condition was partially met in a Department of Defense news briefing held by Vice Admiral Gortney in Washington on behalf of AFRICOM on March 20, 2011.

Gortney said he could “guarantee” that Gadhafi was not on a target list for the U.S. joint operation with European forces under NATO in Operation Odyssey Dawn, the U.S. military code name for the U.S. military involvement in Libya.

Then, also on March 21, 2011, in a televised news briefing from Germany, Ham, in response to press questions, stressed the U.S. military was not targeting Gadhafi.

“Everything seemed to be set and there was a lot of enthusiasm that we could stop this crisis in Libya before it got out of hand,” he continued.

Gadhafi had two conditions, Kubic explained.

“He wanted to ensure that there was a residual military force left in Libya to oppose the al-Qaida forces he knew were operating in Libya, and he wanted safe passage for his family and friends,” he said.

“The Libyan military, as part of the discussions, wanted to leave one or two of Gadhafi’s top generals who would continue to command the military forces to make sure Libya remained stable after Gadhafi abdicated and to insure al-Qaida didn’t take over the country.”

Suddenly, Kubic was informed the U.S. did not want to proceed with the discussions. The idea of a 72-hour cease-fire was “off,” and AFRICOM was ordered “to stand down” form truce talks.

“AFRICOM thought Gadhafi’s conditions were reasonable, and we were just in the process of settling where the truce talks would be held, when AFRICOM told me that everything had been called off,” Kubic said.

“I then asked to speak with Gen. Ham and was told the decision was reached above his head. I then asked who at the Pentagon I needed to see and was told the decision came from outside the Pentagon,” he continued.

“I found it hard to understand that we have a Nobel Peace Prize winner in the White House and President Obama was not willing to give peace a chance in Libya for 72 hours,” Kubic said.

“I don’t know if the decision came from the White House or from Hillary Clinton at the State Department,” he said, “but the advice for me from AFRICOM was to basically just leave everything alone, to simply stand down.”

Yet that was not the end of the story.

“I was told by an authoritative source in the U.S. government that an intelligence memorandum was prepared on the negotiations that went to President Obama in its raw form. And this was the document that basically gave the actual intelligence on the al-Qaida elements that were part of the Libyan revolution,” Kubic said.

“All these negotiations happened in the period of March 19-22, 2011, and the intelligence document given the president was created on March 24, 2011,” Kubic noted. “It was on March 29, 2011, that President Obama signed the finding authorizing the United States to arm the rebels.”

Confirming Kubic’s timeline, Reuters reported March 30, 2011, that Obama “has signed a secret order authorizing covert U.S. government support for rebel forces seeking to oust Libyan leader Muammar Gadhafi,” citing government officials.

Reuters further reported the “presidential finding” signed by Obama was “a principal form of presidential directive used to authorize secret operations by the Central Intelligence Agency.”

Did Obama administration brief GOP?

Former CIA agent Kevin Shipp, a member of the Citizens Commission on Benghazi, said he believes House Majority Leader John Boehner and other members of the “Gang of Eight” in Congress were briefed by the Obama administration on Ambassador Christopher Stevens’ involvement with the CIA was in Benghazi.

Shipp spent 17 years with the CIA counter-intelligence, counter-terrorism, human intelligence operations and internal security. He also was a program manager of the State Department’s Diplomatic Security, Anti-Terrorism Assistance global police training program.

Among his roles was working on the 7th floor at Langley conducting protective duties for then-CIA Director William Casey.

In his interview with WND, Shipp made clear he was speaking on the record for himself, not representing the views of the Citizens Commission on Benghazi or of the views of any of the other members.

The “Gang of Eight” leaders in Congress, who are regularly briefed by the White House on intelligence matters, are the speaker of the House, the House minority leader, the Senate majority and minority leaders and the chairmen and ranking members of the House Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence.

In the 113th Congress from 2012-2014, the Republican members were House Speaker John Boehner; then-Senate Minority Leader Mitch McConnell; Rep. Mike Rogers, R-Mich., chairman of the House Permanent Select Committee on Intelligence; and Saxby Chambliss, R-Ga., ranking member of the Senate Select Committee on Intelligence.

“I think the GOP Gang of Eight, including Boehner, have guilty knowledge of everything the Obama administration and the State Department conducted in Libya,” Shipp said.

“Even when it got to the ultimate goal of Christopher Stevens diverting weapons up with the assistance of Qatar and Saudi Arabia of diverting weapons from Libya up through Turkey to the rebels in Syria, the GOP Gang of Eight, with security clearances, would have been briefed in advance of the operation.”

Shipp continued: “In my opinion Boehner and the other GOP members of the Gang of Eight would have been witting of the gun-running activities the CIA and State Department were conducting in Libya from the very beginning. When everything went wrong and Stevens was killed in the 9/11 terrorist attacks, it’s my belief Boehner and none of the other GOP members of the Gang of Eight wanted the American public to know they had anything to do with it.”

Kubic told WND he could not confirm the Gang of Eight had received an intelligence briefing on the presidential finding Obama signed March 29, 2011, authorizing the CIA to support the Libyan al-Qaida-affiliated rebels in their military efforts to oust Gadhafi.

“In this particular case, I don’t know whether the Gang of Eight was briefed, whether they were partially briefed and not given the whole story, or whether they were really not briefed at all,” Kubic cautioned.

He said it’s a matter for the House Select Committee on Benghazi, headed by Rep. Gowdy, R-S.C.

Did GOP leaders know of al-Qaida affiliation

On April 22, 2011, Sen. John McCain, R-Ariz., publicly called for support of Libya’s rebels in their rebellion to oust Gadhafi.

“They are my heroes,” McCain told reporters as he out of a hotel in Benghazi after having toured a rebel stronghold, NBC’s Richard Engel reported.

Engel said that McCain, “one of the strongest proponents in Congress of the U.S. military intervention in Libya, said he planned to meet with the rebel National Transition Council, the de-facto government in the eastern half of the country.”

NBC further reported McCain “said at a news conference Friday that all nations should recognize the council as the legitimate voice of the Libyan people.”

Engel quoted McCain saying: “I would encourage every nation, especially the United States, to recognize the Transitional National Council as the legitimate voice of the Libyan people.”

On May 2, 2011, after being informed privately by a phone call from the White House in advance of Obama’s nationally televised announcement that Osama Bin Laden had been killed by U.S. Special Forces operating in Pakistan, House Speaker John Boehner put out a statement: “This is great news for the security of the American people and a victory in our continued fight against al-Qaida and radical extremism around the world.”

‘Papered silent with security agreements’

Shipp explained both Republican and Democratic White Houses require the Gang of Eight to sign secrecy agreements before receiving classified administration briefings on foreign policy and intelligence matters.

“The White House papers everybody briefed in Congress with secrecy agreements,” he said. “This agreement threatens the possibility of criminal prosecution if any classified information is leaked to the public in an unauthorized fashion.”

He noted a member of the House or Senate could be removed from office for violation of the agreement.

“These agreements are powerful instruments of persuasion.”

Shipp questioned whether the Benghazi gun-running operation was classified “above top secret,” meaning Boehner and the other GOP members would face severe penalties, including the possibility of criminal prosecution, if any leaked the information.

Or, he asked, was it possible the GOP leadership believed Obama signing of the Presidential Finding on March 29, 2011, authorizing the CIA to support the Libyan rebels would have implied his approval of the gun-running activities subsequently undertaken by the CIA in conjunction with the State Department?

Shipp acknowledged that a criminal or, even worse, a traitorous White House could use the secrecy agreements to ensure silence.

“Unfortunately, that could happen,” he said. “If the CIA wants to conceal an operation, they classify it at a very high level and they paper Congress with a secrecy agreement such that you are bound for life.”

Shipp emphasized how ironclad the CIA-executed secrecy agreements were.

“Any disclosure of information in an unauthorized fashion could result in prison time,” he said. “The document makes it clear that anyone who signs it can never mention the operation or any connection to the operation. Even if the information comes out in a public forum, you can’t so much as confirm a news report, because just confirming information can be considered a violation of the security agreement.”

A ‘de facto, third-party assassination’

Shipp discussed his concerns that the Obama administration shifted ground in Libya and refused to accept Gadhafi’s offer to abdicate.

“Gadhafi had established diplomatic relations with the United States and we had an embassy in Libya,” Shipp noted.

“One of the most astounding parts of this whole thing is that Gadhafi had destroyed his stash of WMDs (Weapons of Mass Destruction), and he was providing us with a steady stream of intelligence on al-Qaida movements in Libya,” he said.

Shipp said Gadhafi “was collaborating with us as an ally, so for the Obama administration, the White House national security team and the State Department to break off contact with Gadhafi was amazing, especially when he was asking to step down and seek asylum.”

Shipp expressed his continued amazement the Obama administration stood by not only while Libyan rebel forces aligned with al-Qaida toppled Gadhafi, but also killed him.

“It amounted to a de facto, third-party assassination committed ultimately by the United States, if you ask my opinion,” he concluded.

“Why would we completely destabilize Libya when the leader was trying to be our ally is a huge question that falls into a pattern of the Obama administration and his national security advisers supporting Islamic rebel movements, including now supporting the Free Syrian Army, over what could be a more stable solution.”

Shipp speculated on why the Obama administration began covering up the truth about Benghazi, attributing the attack to the reaction to a Youtube video that insulted Islam’s founder, Muhammad.

“What the Obama administration was terrified about, in my view, was the American public knowing the CIA and State Department were running guns secretly into Libya before Gadhafi was deposed, that the guns got into the hands of al-Qaida, and that the guns ended up bound for Syria,” he said.

“Those events put together could be looked at even as traitorous, in my opinion, if the facts ever came out to the American public.”

The Gears Are Grinding Down

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It has become common knowledge in the mining industry here in Canada that the large oil companies began holding strategy sessions over a year ago to address this downturn in the market.  The “sustainable cost reduction strategies” were slow in coming at first but are now being developed and implemented from one day to the next.

The industry is witnessing layoffs in the tens of thousands with more to come.  For each energy sector job lost there will be 4 or more service industry jobs lost as well.  This spider web of cause and effect will mean a slow down in the broader economy with reduced revenues for everything from local pubs and restaurants, to clothing stores and regional manufacturers.

The planning sessions which  began a year ago tell us that this market turn was not happenstance.  The communication lines between the heads of the energy companies and trans-border banks have intersected with the mandates of the international institutions which are engineering and implementing the economic transition to a multilateral framework.

The deflation which we have discussed throughout the last year is now descending in full force.  This deflation is allowing for a massive contraction of the money supply to facilitate the transformation of each segment of the international monetary system.

Massive deflation leads to massive liquidation for the purpose of increasing cash balances.  As everything from real estate to commodities decrease in valuation we are witnessing a large liquidation of physical assets, such as mining and construction equipment, recreational vehicles, televisions, and everything else that companies and individuals can sell for cash in hand.

This increase in cash balances can be considered an increase in the quality of money. An increase in the quality of money will likely facilitate the transformation of our current fiat based money system to a commodity based system. Quality of money based on commodities as opposed to fiat issuance will lead to an eventual flood of savings from stocks and bonds to savings accounts.

The danger in this natural progression of quality capital from stocks and bonds to saving accounts is underscored by the bail-in threat posed by the larger institutions and governments.  But it is these same banking and investment institutions and governments which deflation will harm the most.  Though innocent “losers” will be sacrificed during the deflationary period, the imbalances in the system which have been built over the decades, when corrected, will ensure that corruption will be dramatically reduced, if only for a few years before the imbalances begin to manifest in the system once again.

The imbalances as defined in the Triffin Paradox, or more appropriately, the USD global reserve system, has allowed for a gross misalignment and mutation of the global monetary structures.  These imbalances have manifested throughout the international architecture as large stock market increases, unsustainable energy costs, such as oil, as well as real estate valuations, and easy access to capital.

The deflation which is now taking place will level these imbalances and allow for the rise of high quality capital. This quality capital will make the transition to a commodity based multilateral monetary structure more efficient and timely.

Every monetary policy which has been implemented by the central banks and financial institutions since the crisis of 2008 has been  for the purpose of holding back deflation.  Now that those tools, such as QE, are being retracted from the system, we are witnessing the deflation which is required to correct the imbalances and allow for the transition to the multilateral structure.

The storyline is also beginning to be distributed amongst the global media outlets that monetary stimuli by central banks is no longer working and that the accountability and mandates of the central banks will need to be more aligned with the macro economic mandates of the multilateral institutions.

In the post The Globalization of Central Banks we reviewed how the architecture of central banks will be consolidated within this larger mandate.  No longer will domestic growth be the only objective of central banks.  The larger imbalances created within the international monetary structure by promoting only domestic monetary policies will no longer be allowed.

Managing Director of the International Monetary Fund Christine Lagarde has again called for the implementation of a multilateral framework, and the financial and geopolitical strategies which are now unfolding support this process.

The recent moves by Russia and its central bank are remarkable when considered as methods of disengaging from the USD system. Converting the USD held in its foreign reserve accounts for rubles is diversifying the global monetary structure, and is more about facilitating the multilateral transition and reforming the monetary framework as opposed to replacing the existing USD framework.

The geopolitical move by Russia to change the natural gas routes into Europe is primarily concerned with decreasing the violence in Ukraine by removing the need for that particular strategic position.  The attempts of America to maintain economic and geopolitical control over regions of the world which it has controlled under the USD system, such as Europe and Saudi Arabia, as well as Korea, among others, are fraught with the dysfunction of continuing unsuccessful isolationist policies.

The coup yesterday which took place in Yemen is very telling of the geopolitical positioning which has been allowed to take place.  Think of it like a company having to reduce its operating costs.  The CEO and CFO of the company state that $2 billion has to be cut from the operating budget and the internal policies of the company have to be adjusted to facilitate joint venture projects in regions of the world which are normally outside of it’s existing growth structure.

Each division within the company is responsible for their own cost reductions and policy adjustments. Yet each division is primarily focused on an industry sector which can no longer operate independently from the larger whole.

The larger monetary mandates which are being handed down by the Bank for International Settlements are being implemented much like an international corporation would transform itself while attempting to grow as it becomes a part of a multilateral framework.

The flex allowed in the transition has been taken advantage of by western interests as America attempts to stop Europe from being ripped away from its strategic influence.  The inevitable fragmentation of the euro, and potentially even the European Union, should be obvious to most at this point.  European countries will position themselves with their eastern trade partners as represented in the Eurasian trade union, with the United Kingdom ultimately maintaining its allegiance with the North American continent.

The moving parts of this transition, along with the implementation schedule, is difficult to capture in one single post, but the gears keep moving and deflation pushes deeper.  The fact that gold and the USD are both appreciating together is the harbinger of the multilateral.  The fundamentals of the monetary system are now being directed by the multilateral structure as it begins to push up from underneath the ruinous imbalances of the fragmenting USD system.   – JC

http://philosophyofmetrics.com/2015/01/20/the-gears-are-grinding-down/#more-2045

50,000 Wall Street jobs cut

Source:  http://nypost.com/2015/01/17/50000-wall-street-jobs-cut/

There’s blood on the Street.

In a wild swing of the ax that has shocked many pundits, Wall Street’s biggest banks have slashed nearly 50,000 jobs, and bonuses and expense money are being cut as profit opportunities dry up.

And there’s no easy way out, analysts say, because the Fed’s quantitative easing that once rescued the financial system with trillions of cheap dollars is — at least for now — history.

But while some analysts were unnerved by the carnage announced by banks last week during their earnings calls, the warning signs were there before — from lower trading and commodities revenues to currency risks and long-term interest rates that have trended lower.

The fourth quarter saw thousands more workers fired. Total reductions for 2014 were about 20,000 at Brian Moynihan’s Bank of America; 10,000 at Citigroup led by Michael Corbat; and 10,000 at Jaime Dimon’s JP Morgan. Morgan Stanley reports on Tuesday.

Many job losses were already flagged — attributed, for example, to a decline in servicing of delinquent loans as banks cleared troubled mortgages. But analysts also see brutal cost-cutting.

“Look, I think head count in the banking industry is likely to decline,” said CLSA investment group bank analyst Mike Mayo. “And if this environment remains, headcount would get significantly reduced.”

By Mayo’s calculations, bank revenues are the weakest in eight decades, a shocking throwback to the Great Depression.

And the carnage is ongoing as global growth slows and commodity prices and currency movement roil the markets.

“I think there have been heavy potential and paper losses at this point. Clearly, nobody bet properly on oil — nobody thought it was going to be below 50 a barrel,” said Tim Quast, president of market analytics firm ModernIR.

Even mighty Goldman Sachs didn’t escape last week’s destruction. Although the firm reported fourth-quarter earnings a tad better than forecast on Friday, that came from painful expense-shearing as revenues, hurt by a plunge in bond trading, posted a nauseating double-digit decline. Declines in bond activity also rocked JPMorgan, Citigroup and Bank of America.

U.S. generals accuse Obama of actually ‘switching sides’

Military experts are making an explosive new claim about Barack Obama.

And what they’re revealing now could blow the lid off a scandal many would call TREASON …

Probe of military experts finds U.S. ‘switched sides’ in terror war
obama-hillary-coffins-benghazi

NEW YORK – The Obama White House and the State Department under the management of Secretary of State Hillary Clinton “changed sides in the war on terror” in 2011 by implementing a policy of facilitating the delivery of weapons to the al-Qaida-dominated rebel militias in Libya attempting to oust Moammar Gadhafi from power, the Citizens Commission on Benghazi concluded in its interim report.

In WND interviews, several members of the commission have disclosed their finding that the mission of Christopher Stevens, prior to the fall of Gadhafi and during Stevens’ time as U.S. ambassador, was the management of a secret gun-running program operated out of the Benghazi compound.

The Obama administration’s gun-running project in Libya, much like the “fast and furious” program under Eric Holder’s Justice Department, operated without seeking or obtaining authorization by Congress.

WND reported Monday that in exclusive interviews conducted with 11 of the 17 members of the commission, it is clear that while the CCB is still enthusiastic to work with Rep. Trey Gowdy, R-S.C., chairman of the House Select Committee on Benghazi, and hopeful that Boehner is serious about the investigation, various members of the CCB, speaking on their own behalf and not as spokesmen for the commission, are expressing concerns, wanting to make sure the Gowdy investigation is not compromised by elements within the GOP.

The Citizen’s Commission on Benghazi’s interim report, in a paragraph titled “Changing sides in the War on Terror,” alleges “the U.S. was fully aware of and facilitating the delivery of weapons to the Al Qaeda-dominated rebel militias throughout the 2011 rebellion.”

The report asserted the jihadist agenda of AQIM, the Libyan Islamic Fighting Group and other Islamic terror groups represented among the rebel forces was well known to U.S. officials responsible for Libya policy.

“The rebels made no secret of their Al Qaeda affiliation, openly flying and speaking in front of the black flag of Islamic jihad, according to author John Rosenthal and multiple media reports,” the interim report said. “And yet, the White House and senior Congressional members deliberately and knowingly pursued a policy that provided material support to terrorist organizations in order to topple a ruler who had been working closely with the West actively to suppress Al Qaeda.”

The report concluded: “The result in Libya, across much of North Africa, and beyond has been utter chaos, disruption of Libya’s oil industry, the spread of dangerous weapons (including surface-to-air missiles), and the empowerment of jihadist organizations like Al Qaeda and the Muslim Brotherhood.”

missiles), and the empowerment of jihadist organizations like Al Qaeda and the Muslim Brotherhood.”

Christopher Stevens: ’1st U.S. envoy to al-Qaida’

In the WND interviews, several members of the citizens’ commission, speaking for themselves, not for the commission, added important background to the interim report’s conclusion.

“In early 2011, before Gadhafi was deposed, Christopher Stevens came to Benghazi in a cargo ship, and his title at the time was envoy to the Libyan rebels,’ which basically means Christopher Stevens was America’s very first envoy to al-Qaida,” explained Clare Lopez, a member of the commission who served as a career operations officer with the CIA and current is vice president for research at the Washington-based Center for Security Policy.

“At that time, Stevens was facilitating the delivery of weapons to the al-Qaida-related militia in Libya,” Lopez continued. “The weapons were produced at factories in Eastern Europe and shipped to a logistics hub in Qatar. The weapons were financed by the UAE and delivered via Qatar mostly on ships, with some possibly on airplanes, for delivery to Benghazi. The weapons were small arms, including Kalashnikovs, rocket-propelled grenades and lots of ammunition.”

Lopez further explained that during the period of time when Stevens was facilitating the delivery of weapons to the al-Qaida-affiliated militia in Libya, he was living in the facility that was later designated the Special Mission Compound in Benghazi.

“This was about weapons going into Libya, and Stevens is coordinating with Abdelhakim Belhadj, the leader of the Libyan Islamic Fighting Group, other al-Qaida-affiliated militia leaders and leaders of the Libyan Muslim Brotherhood that directed the rebellion against Qadhafi as an offshoot of the Egyptian Muslim Brotherhood,” Lopez said. “Many of the individual members of the al-Qaida-related militias, including the LIFG, and the groups that would later become Ansar Al-Sharia, were Muslim Brotherhood members first.”

According to the interim report, as detailed by Lopez, a delegation from the UAE traveled to Libya after the fall of Gadhafi to collect payment for the weapons the UAE had financed and that Qatar had delivered to the Transitional National Council in Libya during the war.

The UAE delegation was seeking $1 billion it claimed was owed,” the interim report noted. “During their visit to Tripoli, the UAE officials discovered that half of the $1 billion worth of weapons it had financed for the rebels had, in fact, been diverted by Mustafa Abdul Jalil, the Muslim Brotherhood head of the Libyan TNC, and sold to Qaddafi.”

According to information discovered during the UAE visit to Tripoli, when Jalil learned that Maj. Gen. Abdel Fatah Younis, Gadhafi’s former minister of the interior before his late February 2011 defection to the rebel forces, had found out about the weapons diversion and the $500 million payment from Gadhafi, Jalil ordered Abu Salim Abu Khattala, leader of the Abu Obeida Bin al-Jarrah brigade to kill Younis.

“Abu Khattala, later identified as a Ansar al- Shariah commander who participated in the 11 September 2012 attack on the U.S. mission in Benghazi, accepted the orders and directed the killing of Gen. Younis in July 2011,” the interim report noted.

Abu Khattala is currently in custody in New York awaiting trial under a Department of Justice-sealed indictment, after U.S. Delta Force special operations personnel captured him over the weekend of June 14-15, 2014, in a covert mission in Libya. Abu Khattala’s brigade merged into Ansar al-Shariah in 2012, and he was positively identified to the FBI in a cell phone photo from the scene of the attack on the U.S. mission in Benghazi.

The language of the interim report made clear why the sequence of events is important.

“The key significance of this episode is the demonstration of a military chain-of-command relationship between the Libyan Muslim Brotherhood leadership of the TNC and the Al Qaeda-affiliated militia (Ansar al-Shariah) that has been named responsible for the attack on the U.S. mission in Benghazi,” the interim Rreport concluded.

“What we have here is the Muslim Brotherhood leadership of the revolution giving a kill order to a Muslim militia affiliated with al-Qaida, which then carried it out,” Lopez summarized. “This chain-of-command link is important even though it has not yet received enough attention in the media.

A big ‘oh no’ moment

“After Gadhafi is deposed and Stevens was appointed U.S. ambassador to Libya, the flow of weapons reverses,” Lopez noted. “Now Stevens has the job of overseeing the shipment of arms from Libya to Syria to arm the rebels fighting Assad, some of whom ultimately become al-Nusra in Syria and some become ISIS.”

Lopez distinguished that “al-Nusra in Syria still claims allegiance to al-Qaida, while ISIS has broken away from al-Qaida, not because ISIS is too violent, but out of insubordination, after Abu Bakr Al-Baghdadi, the leader of ISIS, wanted to run his own show inside Syria as well as Iraq, thereby disobeying orders from al-Qaida leader Ayman Al-Zawahiri.”

She noted that in this period of time, after the fall of Gadhafi and before the Sept. 11, 2012, attack on the Benghazi compound, Stevens was working with Turkey to ship weapons out of Libya into Syria for the use of the rebels fighting Assad.

According to the authors of the bestselling book “13 Hours,” on Sept. 11, 2012, before the attack on the Benghazi compound started, Stevens had dinner with Turkish Consul General Ali Sait Akin. Stevens reportedly escorted the Turkish diplomat outside the main gate of the Benghazi compound to say good-bye to Akin at approximately 7:40 p.m. local time, before he returned to Villa C to retire for the evening.

Kevin Shipp, a former CIA counterintelligence expert who worked on the seventh floor at Langley as protective staff to then-CIA Director William Casey, again speaking for himself in his interview with WND, agreed with Lopez that the gun-running operation Stevens managed is a secret the Obama White House and Clinton State Department have sought to suppress from the public.

“The shocking part, maybe even a violation of international law that the Obama administration has been terrified to have fully revealed, is that Stevens as part of his duties as a State Department employee was assisting in the shipment of arms first into Libya for the al-Qaida-affiliated militia, with the weapons shipped subsequently out of Libya into Syria for use by the al-Qaida-affiliated rebels fighting Assad,” Shipp told WND.

“Very possibly, these gun-running activities could be looked at even as treasonable offenses,” he said.

Shipp further noted that in gun-running operations in which the CIA wants deniability, the CIA generally involves a third party.

“The way the CIA works is through a ‘cut-out,’ in that you get Qatar to transport the weapons and you facilitate the transport. So now the third party is to blame,” he explained.

“Qatar probably would have been able to pull this off without any attribution to the CIA if the Benghazi attack had not happened. The attack basically shed the light on this operation the White House, the State Department and the CIA were trying to keep quiet,” he said.

“The attack on Benghazi was a big ‘oh no’ moment.”

Source:

The Fed & SDR Denominated Derivatives

Derivatives

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Many for so long have proclaimed the end of the dollar and a collapse of the USD system. Though the dollar will be adjusted downward at some point in the initial implementation of a multilateral system, its sustainability in a broader monetary framework will be a fundamental corner stone to correcting the imbalances which originated from the USD system itself.

The USD monetary system is based on using the domestic currency of the United States as the global reserve unit of account.  This arrangement has created systemic imbalances in the international financial framework which has lead to inherent risks in all segments of the system, such as trade, credit, exchange rates, inflation/deflation, commodities, capital flows, and geopolitical power shifts.

Some of these imbalances have been extremely prominent in the last days as oil continues its dramatic depreciation, the Swiss removed the francs peg to the euro, (as the euro was depreciating against the appreciating dollar), Russia converting a portion of its foreign reserves into rubles, and geopolitically Russia has diverted natural gas flows into Europe from the transit points in Ukraine to transit points in Turkey.

On a more macro level, the Bank of China (Hong Kong) has stated that the inclusion of the RMB into the SDR basket of currencies will accelerate international monetary reform which will help build stability in the system.  This stability will be constructed around using the SDR as the global unit of account in place of the USD.

We have covered the importance of the RMB to the SDR supra-sovereign reserve system, along with the BRICS Development Bank, in the post The SDR Purpose of BRICS.

One of the least understood segments of the USD imbalances are the derivative trades.  These trades are a method of hedging against the risk which is inherent in the USD system.  As in all trades or exchanges, there are two ends, a gain end and a lose end.  The derivatives are meant to take the risk out of trade for trans-border businesses and other financial institutions, along with large private investors.

Each trade needs to be cleared though a clearing house and the risk of systemic failure because of the potential loses are building.  The current policies and institutions handling the clearing process are incapable of dealing with this systemic risk.

Supra-sovereign and trans-border institutions and entities such as banks and hedge funds, which are structured around national and domestic frameworks, cannot provide the international policy changes required to address the risk associated with derivatives.

As such, a single and unified international policy is required.

The development and implementation of the multilateral monetary framework is capable of addressing this risk more effectively than the USD system.  By denominating derivatives in SDR, both virtual aspects of the unit of account and derivatives will align, allowing for a more unified policy response to the risk.

SDR denominated derivatives will fundamentally reduce the exposure by functioning above the constraints of national fiat currencies, which are heavily influenced by the multi-trillion dollar non-sovereign dominated Forex markets.  The SDR, held by sovereign central banks, will help stabilize the international supra-sovereign response required to reduce the derivatives risks and enact the unified policies.

The clearing of derivatives will also have to be handled in a broader multilateral framework as well.  The establishment of clearing entities, or banks, perhaps with only one or two acting as the mandated clearing houses, can facilitate the reduction of systemic risk to the international monetary framework.

Derivative contracts that are considered high risk can be fragmented into clearable (low risk) and unclearable (high risk) segments.  This disaggregation of illiquid derivative contracts will ensure the overall credit risk, or exposure, is reduced or eliminated on the cleared portion of the contract, while the risk associated with the uncleared portion is reduced in the markets.

The clearing house, in this case the Federal Reserve, will be accountable to provide liquidity for the uncleared “high risk” segments at valuations which are compatible with the margins of the defaulting members and contracts.  This process would reduce the chances of default with the least amount of systemic risk to the broader international monetary structure.

There are many moving pieces to the transition from the USD structured system to the multilateral SDR framework.  The risk associated with derivative clearing is one of the more important factors which will require a unified policy framework which operates above the limited policies which exist at the national and domestic level.

The USD will not collapse and the SDR will be implemented as the international unit of account.  No one currency or country has the ability or policy framework to deal with the challenges presented in correcting the imbalances which have developed from the USD system.  China, Russia, or any other grouping of countries, are not interesting in replacing the USD as the international unit of account.  The response to the systemic imbalances which exist will require the unified approach to policies and procedures which only the multilateral framework can provide.

Anyone pumping and promoting the collapse of the dollar does not fully understand the multilateral framework or the trans-border nature of the associated risks inherent in the USD system. – JC

http://philosophyofmetrics.com/2015/01/15/the-fed-sdr-denominated-derivatives/#more-2035

Will China Pull a “Switzerland” on the U.S. Dollar?

January 16, 2015

Peter Schiff tells it like it is.  Guess who his father was.