Editor Special: The dark sleek beautiful horse American Pharoah won the Triple Crown, a great highlight in sports history. He won the third leg in the quest at the Belmont Stakes. The time was 2 minutes 26.65 seconds for the 1.5 mile track. It comes to an average 36.82 miles per hour, equal to 59.3 km per hour. The 37-year interval wait has ended for a repeat of the Triple Crown, last done by Secretariat (aka Big Red). History has been made. Next comes incredibly lucrative stud service fees and romps. The pharoah hot shot will probably sire at least 500 horses, a just reward, some quality time frolicking with the ladies on the meadow. The owners will rake in hundreds of $millions. The race and sport at this highest level is truly impressive, and can even prompt an emotional response. These animals are true examples of the pinnacle of beauty and elegance with power and speed. When they bond with a kind foster human, the bond is indeed beautiful. See the Belmont YouTube (HERE).
## KEY QUOTES
"A society of sheep must in time beget a government of wolves" ~ Bertrand de Jouvenel
"We are called to be architects of the future, not its victims" ~ Buckminster Fuller
"Truth is treason in the Empire of Lies" ~ George Orwell
"No man has a good enough memory to be a successful liar" ~ Abraham Lincoln
"I am not young enough to know everything" ~ Oscar Wilde
"In war, truth is the first casualty. Since Fascism promotes permanent war, the truth never shows its face, since either dead or deemed the enemy." ~ Aeschylus (first line, Jackass second line)
"This has been clear for many decades that the people who were populating the government, most especially the upper echelons of Federal Govt of the United States, are by and large a cadre of psychopaths and whores. There is a certain point where [actually], you deserve what you get! You will reap what you have sown. Turning your life over to these people [makes no sense]. These people are not right. These people are not good people. These people do not have the best interest of the people that they are allegedly representing. These people are in government to personally enrich themselves and to satisfy their personal lust for power over other human beings. You people have voluntarily cooperated in this." ~ Ann Barnhardt (on Federal Government officials)
"The G-7 is consortium of dead former industrial nations run by criminals, narco barons, and pedafiles, whose banking structures are uniformly insolvent, whose industries have been largely betrayed. They depend upon hyper monetary inflation to pay the bills and to cover the deficit, which would insult even African monetary authorities. Their irrelevance is stark shrill. They did not invite either Eastern superpower to their meaningless May gathering in Germany. The Russian & Chinese responses will blow these nations out of the water, thus exposing their toilet paper currencies float among toxic turds." ~ angry colleague
"The sanctions have caused 100 billion Euros in damages, as published in all German media. There are half a million jobs being lost in Germany alone. Multiply that by three and you have right figure. People running businesses (large and small) do not pay attention to the sanctions. They ship via third-party countries while Asian banks are stepping forward to fund the trade. The German and other European bank are still too frightened and timid to continue in their past funding roles. Sanctions and bottlenecks always lead either to black markets or to hard-core circumvention. It appears Washington did not see this native blowback coming. Even worse, the real impact from sanctions is that US companies are squeezed out of the markets in the East. The United States faces a monumental isolation, but their people do not realize it yet. The anger in Europe toward the USGovt is seen in the open, and it grows." ~ WilhelmG (Hat Trick Letter client, informed executive in Germany company)
"There is a problem. A problem for Globalism. This is, behind the scenes, what the titans of control are whispering about. It starts here: understand that mega-corporations are the instruments of world domination. They move into countries where cheap labor, land, and resources are abundant, and they take over. This is what they are meant to do. This is the plan. Intelligence agencies and armies may precede them, but the corporations are the most capable organizations on the planet, when it comes to exercising enduring control. The top three or four hundred corporations are responsible for at least 25% of all world trade. However, here is the rub. As Globalist policies allow corporations to shut down domestic factories in industrialized countries and open up those same factories in places where slave wages are the order of the day, as tariffs on imported goods are canceled, killing off businesses that try to compete with mega-corporations, the leading economies decline. The mega-corporations have the potential to produce and sell more and more, but the consumer base is shrinking. Globalism, the very system that is determined to elevate the power of mega-corporations, is diminishing the number of people who can consume what the corporations make. The snake has been eating its tail for some time now." ~ Jon Rappoport
"The balance of power is beginning to shift. We are witnessing the emergence of a post-terror generation, one that rejects a worldview defined by a singular tragedy. For the first time since the attacks of September 11, 2001, we see the outline of a politics that turns away from reaction and fear in favor of resilience and reason. With each court victory, with every change in the law, we demonstrate facts are more convincing than fear. As a society, we rediscover that the value of a right is not in what it hides, but in what it protects." ~ Edward Snowden
"Germany was an occupied country and considering the activities of the intelligence services of the allied countries on German soil, it still is. Germany, German politicians, and the German economy are among the primary targets of American intelligence services." ~ Gert Polli (former head of the Austrian Civil Intelligence Service BVT, who identified the USGovt , the NSA, and British Govt GCHQ as principal operators)
"The damage is much more comprehensive than the statistics show. Let's start with the economy and the hitherto accumulated damage. The view on the decline of German exports of 18% year over year in 2014 and 34% in the first two months of 2015 includes only primary losses. There are also secondary effects. Economies of European countries with a strong Russian business, amongst others Finland and Austria, suffer massively. As a result, these countries place less orders in Germany. Moreover, in order to circumvent the sanctions, European conglomerates consider to create production facilities at the highest efficiency level in Russia. Therefore we lose this potential capital stock, which is the basis of our prosperity. Russia wins the capital stock. Germany and the EU have put their economic reliability towards Russia into question. The mutual trust has been broken by Germany and the EU. It takes several years to rebuild this trust. There are up to five years between signature and delivery in exports of German and European plant equipment. Siemens has now been thrown out of a major project for this reason. Alstom lost the contract for the railway from Moscow to Beijing. Ergo, the potential damage not only for Germany but also for the EU is much more massive than current figures could express. The future damage cannot be exactly quantified, but it is definitely significant. Moreover, in the framework of the Shanghai Corporation and the BRIC countries, the Beijing-Moscow axis is planning the biggest economic growth project in modern history, the construction of the Eurasian infrastructure from Moscow to Vladivostok, to Southern China and India. To what extent the emerging countries see the sanctions policy of the EU and Germany in these mega projects as an affront not only against Russia, remains to be seen. Apparently some participants in European politics lack the comprehension of the full scope of their actions on our behalf. The measureable damage consists of loss of growth, lost wages, lost contributions to the social system, and loss in tax revenue. This is valid for the past 12 months and the years to come. Thus, the people of Germany and the EU pay through lost prosperity and stability. The immeasurable damage is an increased geopolitical risk situation for the people in the EU." ~ Folker Hellmeyer (chief economist at Bremer Landesbank)
"The crooks in fact are the market now, surely for bonds, and probably for stocks, via all the financial engineering. Just look at retail participation and the robot (high frequency trade) volumes with the prevalent programs. But here is the kicker. They can no longer permit volatility to occur, which they formerly used to fuel for their benefit, principally because they own all the crapp. If there is volatility, it can get out of control quickly to the downside. Ironically, they can no longer buy to pump it all up with the motive to unload it on the sheep. The sheep are gone, not in the room, not players anymore. The banksters cannot run their pump & dump games. They remain rats in the cages they built, and there is little left to eat but themselves! Obviously, they can still eat from the poison cheese in the corner." ~ George (of COMEX fame)
"A convincing case can be made that the US public is stuck in a psychological trap, a veritable maze with powerful forces at work toward urgent self-preservation offset by exigent self-deception. It could be described as a Macro Stockholm Syndrome at work. The people are stuck in the big boat without proper preparation, and they know it. They have not invested in protection. They have huge vested interests in the present system. They have family and friends also stuck in the same untenable position within the big boat. They have been badly educated about money and economics, especially about capital. Therefore in a defensive posture, they sympathize with the criminal system, adopting their emotional state. They deny banker conspiracies. They ignore the onslaught of contradictions. They accept the false economic statistics. They hope for the best outcome. They drink the cool-aid. They expect current fiscal policy, monetary policy, economic policy, war management policy, and corporate strategies to be successful, and provide them with continued sustained viable system in which to live, to operate, to work, and to enjoy health and pursuit of happiness. They actively are in sacrifice of liberty so as to assure a future. It is a grand deception which will not result in much of substance toward quality of life. They will become debt slaves stricken by poverty. They will suffer a vanish of wealth. It is pathetic and tragic. The US has become a Stockholm Syndrome macro laboratory, a nation as victims in a big bank robbery with 320 million hostages. The police are part of the robbery, and often no protection from thefts or physical harm. The Fascist Business Model has come to full bloom, its bitter fruits more visible as the months pass. The fascist roots run very deep, after 13 years of festering growth. The Third World awaits the United States, whose many crisis outcomes should toss plenty of cold water in the victim faces, to force a great awakening, a rude awakening." ~ Samuel (psychologist college buddy of the Jackass)
"Certain US warmonger critics are quick to point out the last war in which the United States Military was victorious was World War II. They overlook the underlying motives for war by the American elite vipers. To the contrary, they are almost all very successful. These critics forget the true motives for war: 1) to wreck economies which foment chaos, 2) to enrich military contractors with enormous unchecked profits, 3) to force movement of gold which is then stolen, 4) to test new experimental weapons on subhuman peoples, 5) to install globalist foundations (like GMO foods) in foreign lands, 6) to strip freedoms and keep nations on high security, and 7) to install the grand totalitarian state. In all respects, the elite wars are a considerable success. Winning the wars is secondary, since establishing the grand fascist state is the primary motive." ~ the Jackass
"A very big derivative dump took place. The disconnect between paper and physical is stretching the laws of physics beyond the breaking point. Not sure anymore who is actually responsible, either directly or by proxy. However, the end result is going to be the same carnage in the paper markets when physical kill shot is applied." ~ London Paul
"Our Hat Trick Letter colleagues have expected no rate hike for over three years, since doing so would wreck the entire derivative machinery that the USTBond market depends upon, and wreck the Wall Street bond carry trade that serves as their primary income source. Since neither factor is permitted in open discussion, the fake rate hike talk continues like mindless blather. The discussion of slower economy or reduced price inflation is indeed permitted, but it is a distraction sideshow from the real factors that render any rate hike impossible. A rate hike of 50 bpts would wreck the $700 trillion derivative structures in a matter of one to two months, producing several larger London Whales than were forced into view in 2012. Hikes would cause quickly the complete devastation to the entire Western financial system. Not gonna happen. Instead the financial structures will collapse on their own weight, while the USDollar is rejected in global trade. The supposedly great American consumer engine will be derailed and sidelined." ~ the Jackass
"What is coming will happen. It is going to destroy the net present value of most paper assets. We will see a huge change, a re-figuring, a re-calculation of what it actually costs to buy thing. I am going to repeat it one more time: Energy drives the market, while Finance steers it." ~ Steve St Angelo (aka SRS Rocco)
"The announced volume of Gold held by China will directly affect global sentiment and acceptance of the BRICS platforms. Precious metals will be central in the new BRICS currency. Both China and Russia are in possession of tens of thousands of tons of Gold bullion reserves. Look for the Chinese RMB currency to act like a transitional device for removal of USDollar from primacy within the financial system, as the entry of Gold takes root for a proper foundation. The RMB will open the door for a global rooting of the Gold Trade Note." ~ the Jackass
"If you look at the little signature card, (as the banks call it), it is a contract that you sign with the bank. Basically you are actually supporting the bank. If there is a bank run, bank failure, they are going to come to you and they are going to bail in [your money]. Which means they are going to use whatever the means necessary legally to take your money to support the banking system. It is really a mess. The reality is we are getting closer to this day and how it unravels. I am not sure the market knows. What I do know is [one must] think it through, educate yourself, and take action. You want to take action." ~ Dave Morgan
"The origin of the word FASCISM is from the Latin FASCES, the bundle of rods surmounted by an ax. It was a Roman symbol dating from the republican era of Roman history. Look closely at the rostrum of the US Senate, where the same symbol is carved on both flanks of the Senate wall." ~ JeffL (historical expert, follower of Hat Trick Letter)
"Near the end of your interview with Timpone of One Radio Network you mentioned some of your subscribers have had their bank accounts and debit cards hacked, which resulted in unauthorized charges. This happened to me for the first time in March after many years of online purchases and debit card usage. Long story short, my debit card was canceled and a new one was issued. It has been just six weeks and I have only used my new card maybe 10-15 times. I was just hacked again. I am now waiting for a new card. Note that I only make online payments on well known sites that are encrypted. The first hack had unauthorized charges that were made in Houston (my home in Las Vegas). This most recent hack the charges originated in Michigan. Now here is the kicker: all charges occurred at Krogers stores in both Texas and Michigan. Come on? What are the odds of that? As a statistician you know they are long. I will keep you updated if it happens again." ~ watchful Hat Trick Letter client
"To me it was simple. The United States outsourced its industrial base, starting with steel and car factories, and then emphasized the financial sector with its fraudulent derivative underpinning and extreme inflation basis. So we as a nation gutted our core wealth creation and set a time bomb for the bubble bust. The big banks have not been a credit engine or capital formation facilitator for a decade or more. Wall Street would shrivel up in three months without its narcotics funds. For the last generation the US has relied in hidden ways upon its military to defend the USDollar. In the recent couple years, it has become painfully obvious, with an obscene added factor. The USD has two defenders in the Pentagon regular military and the Langley mercenary military. The former is funded by federal deficits covered by USFed monetary printing excess, and the latter is funded by narcotics trafficking kept well hidden. The clashes have come even as the chaos has risen. Neither defender is sustainable, as the Eastern nations will reject the USTreasurys vehicle at the trade window checkout counter. The credit card will be revoked, leaving the US only with a narcotics power center and exposed Zimbabwe central bank. This is game over." ~ the Jackass
"Today, Europe is not independent. The United States is drawing us [the EU] into a crusade against Russia, which contradicts the interests of Europe. [Washington pursues and forces upon us] extremely dangerous policies in the Middle East. [German intelligence has been spying on France] not in the interests of Germany, but in the interests of the United States. The American justice system [often interferes with and conflicts with] the European justice systems. Europe is not independent, [and should embark upon] a broad debate on how Europe can regain its independence. I am definitely against signing the TTIP agreement in the form in which it is now." ~ Francois Fillon (former French Prime Minister during Sarkozy Admin)
"We will reach a time in my natural lifetime when you cannot purchase an ounce of gold with fiat money. Ultimately I think we end up with a Zimbabwe type scenario and runaway hyper-inflation. When it occurs, it will feel like a bolt of lightning coming out of a clear blue sky and much of the commentary we will hear in the mockingbird press will be 'NOBODY COULD HAVE EVER IMAGINED THAT THIS COULD HAPPEN.' Not true, since we did." ~ Rob Kirby
"The tribal wisdom of the Plains Indians, passed on from generation to generation, urges that when you discover that you are riding a dead horse, the best strategy is to dismount. However, in the USGovt, more advanced strategies are often employed, such as: 1) Buying a stronger whip, 2) Changing riders, 3) Appointing a committee to study the horse, 4) Arranging to visit other countries to see how other cultures ride dead horses, 5) Lowering the standards so that dead horses can be included, 6) Reclassifying the dead horse as under intensive treatment, 7) Hiring outside contractors to ride the dead horse, 8) Harnessing several dead horses together to increase speed, 9) Providing additional funding and/or training to increase the dead horse's performance, 10) Doing a productivity study to see if lighter riders will improve the dead horse's performance, 11) Declaring that as the dead horse does not have to be fed, it is less costly, carries lower overhead, and therefore contributes substantially more to the bottom line of the economy than do some other live horses, 12) Rewriting lower expected performance requirements for all horses, and of course 13) Promoting the dead horse to a supervisor post. To be sure, these are all failed solutions but will continue to be applied by political groups until all horses are dead. No other solutions will be deemed acceptable. Meet the USGovt." ~ unknown
## INTRO SHORT SUBJECTS
◄$$$ US-BASED CHARITY ORGANIZATIONS ARE AN EQUAL CONGAME AS WALL STREET, WITH MOST DONATED FUNDS ENRICHING THEIR EXECUTIVES... BUT A FEW ARE VERY HONORABLE AND DESERVE MENTION... THE ENTIRE UNITED STATES FINANCIAL SECTOR IS DOMINATED BY LARGE FRAUD CELLS. $$$
Notice the salary, perks, and puny charity work by Red Cross, March of Dimes, United Way, UNICEF, and Goodwill. They are an embarrassment to the United States, whose land is dominated by fraudulent financial enterprises like a vast multi-layered lattice work in hundreds of locations. Salaries of the heads give away the fraud. Hardly isolated, the fraud is systemic. However, in contrast notice the extremely effective work by Salvation Army, Canadian Legion, Make a Wish, and Ronald McDonald. In general, if they advertise, they do very little charity work. The exception is McDonalds, which covers the cost for the fine Ronald Houses.
As painful rejoinder to the extensive charity fraud, beware that urban food shelters are fast running dry. Their needs are large and growing. Food banks in New York City are running out of food. The Third World is catching up to the United States quickly. A generation of abuse, fraud, sabotage, and war has wrecked the nation. See Alt Market ( HERE).
◄$$$ THE CALIFORNIA DROUGHT HAS ACHIEVED HISTORICAL LEVELS, THE WORST YET TO COME... AN ECONOMIC DISASTER AWAITS, BUT THE PEOPLE DISMISS THE IMPACT TO DATE... THE JACKASS SUSPECTS SABOTAGE WITH MOTIVE TO CAPTURE THE FRESH WATER ASSET AS GIANT ELITE INVESTMENT... EXPECT A MASS EXODUS AND ENORMOUS LOSS OF ASSET WEALTH. $$$
The aware citizens should expect millions to leave the state of California in a reverse exodus of massive proportions. The value of businesses and property will plummet. To date, the people are in denial, noting the immediate water shortage but not the eventual inexorable dire impact. The drought is reminiscent of the Oklahoma Dust Bowl, but in the other direction. See "The Grapes of Wrath" by John Steinbeck for details on the human misery. If it is not radiation as threat to life, it is drought, neither of which is forcing a great shift in sentiment or attitudes. The early departers will be the winners, while those who wait will lose at an extreme level. The past Hat Trick Letters have provided ample details on the HAARP wall that blocks natural rainfall, together with the Bush Family interest in vertically integrated water system investments, against a backdrop of direct Halliburton contamination of the many water aquifer systems. The map shows the damage, as severe conditions cover over half the state. Except for Nevada and Oregon, no other states are under severe threat. See Zero Hedge (HERE).
◄$$$ RECALL THE BLICS NATIONS IN USFED QE MONETARY POLICY EXPORT... THEIR HQ MIGHT BE BRUSSELS, AN EVIL HIVE. $$$
Last month, the Jackass featured the BLICS nations of Belgium, Luxembourg, Ireland, Cayman, and Switzerland. They have been acting as (not so well) hidden agents for the USFed and EuroCB in central bank dispensation of monetary excess for the benefit of USTreasury Bond purchases. The result is the corrupt USFed can claim their QE bond purchases have less volume. It is like asking the neighbor buddy to purchase your cocaine, then claiming to be cutting back on the sordid habit. In this case, the QE purchases are the sordid habit, which like narcotics, bring ruin and rot to the body economic. Last year the Belgian Bulge was featured, where $425 billion in USTreasurys were parked under the Belgium Govt account a year ago. Consider by comparison that the entire Belgium GDP is $525bn, and conclude a fishy account and hidden motive at work. It is known that Brussels is the home of a major European clearing house for financial markets, thus the nice hidey hole. An intrepid client provided some information. According to biographer historian Eustace Mullins, Belgium and Brussels forms the fiefdom of the Lambert family, which intermarried with the Rothschilds. The capital city is a hive of banker elite control, and replete with pedafiles. It hosts the European Union Parliament, a den of useless blathering fools.
◄$$$ A RECENT SUPREME COURT RULING HAS SET THE STAGE FOR THE FEDERAL GOVERNMENT TO BEGIN SEIZING PRIVATE PENSION FUNDS, UNDER THE GUISE OF CONSUMER PROTECTION. $$$
The outcome of the important Tibble vs Edision case (major pension court challenge) could set a legal precedent followed in future years. The final ruling stated that employers have a duty to protect from poor performance the pension funds under management, such as worker 401-k plans. If the USGovt finagles a legal course to confiscate the corporate sector pension funds, for the greater good of citizens, look for the federal authorities to justify an even greater more sinister federal reach toward such private funds. The next phase might involve the USGovt in active seizure of private funds and to prosecute companies who manage mutual funds badly. The Obama Admin has been pushing for stronger fiduciary rules, under the guise of consumer protection, with their weapon being seizures within the private pension fund management industry. The federal authorities strive to create legal justification, even as the USEconomy continues its downward trajectory. The federal employee pension fund is already scheduled for conversion to USTreasury Bonds.
Following the 2008 financial collapse, reports emerged that the USGovt was planning to seize the private 401-k pensions of millions of Americans while enforcing an additional 5% payroll tax as part of a new bailout program. The end result would have been to empower the Social Security Admin to redistribute pension funds fairly and equitably among its citizens. Martin Armstrong has been more bold and seemingly less compromised recently (compared to after his prison release in 2013 and 2014). He has warned that the prosecution and confiscation for failed fiduciary duty is part of a wider movement towards economic totalitarianism. He believes the movements run in parallel to eliminate physical cash within commerce, under the rubric for central banks to be granted more power.
◄$$$ ZIMBABWE HAS BEGUN TO DEMONETIZE ITS FLAGRANT FOUL DOLLAR... ITS CENTRAL BANK OFFERS US$5 PER 175 QUADRILLION ZIM DOLLARS AS THE TRAVESTY WILL COME TO AN END... TOILET PAPER IS WORTH MORE THAN ZIM DOLLAR BILLS. $$$
The painful process will finally begin, sure to take a longer time to complete than advertised. The Zimbabwe Central bank will begin the process of demonetization of their reckless and shameful old Zimbabwe Dollar. Starting June 15th and ending September 30th, the ZimDollar will be removed as legal tender after the currency's usage was abandoned in 2009 following a surge in inflation to the tune of several billion fold. What this means is that bank accounts will be resolved finally. For bank accounts containing up to 175 quadrillion Zimbabwe Dollars, they will be paid $5, the country's central bank said. This is not a misprint. The popular anger will show much more than already seen, as accusations of abuse to enrich a chosen few have been heard. The cental bank cites a critical need for policy consistency.
Background on the disaster is difficult to fully recount. Let it be known that the program of seizing white owned commercial farms for redistribution to black subsistence farmers that began in 2000 caused a grand backlash. The result was slashed exports, abandoned investment, and the onset of almost 10 years of recession. The economy is half its size versus the year 2000, according to government statistics. The Zimbabwe nation became a laughing stock to the world, and its profound stupidity will be forever etched in history books. The country now uses currencies including the USDollar and the South African Rand, with a growing contingency of Chinese RMB. See Zero Hedge (HERE).
◄$$$ KERRY COULD HAVE BEEN THE TARGET OF AN AMBUSH, SHOT ALMOST FATALLY... THE OFFICIAL STORY HAS BIG HOLES, LED BY NO LEG CAST ON A SUPPOSEDLY BROKEN LEG... A SEVERED FEMUR LEG ARTERY FROM AN ASSASSINATION ATTEMPT IS THE STORY RECEIVING CONSISTENCY IN THE ALTERNATIVE PRESS... KERRY MIGHT BE CAUGHT IN THE CROSSFIRE BETWEEN NEOCONS SEIZING CONTROL OF USGOVT FOREIGN POLICY, WITH NO INTEREST IN DETENTE OVER UKRAINE OR IRAN OR PALESTINE... THE AMBUSH MIGHT HAVE BEEN A MOSSAD HIT USING ISIL GUERRILLAS... THE USGOVT MIGHT HAVE BETRAYED THE ISIL GROUP, ITS OWN LANGLEY ASSET CREATION... HILLARY EVEN HAS MOTIVE, SINCE KERRY HAS CONTROL OF BENGHAZI DATA. $$$
The official story was that when in Switzerland, Secretary of State John Kerry fell off a stationary bicycle and broke his leg in a hotel room. Really? Then we know a giant Boeing flying hospital picked him up and brought him home to the United States, to continue expert treatment. He underwent a four-hour operation to repair the broken leg. It must have been a serious fracture. No simple broken leg requires four hours, unless shattered into many pieces like from a crushed incident (not a simple bike fall). Kerry made no appearance for the next few days, with no press permitted in his hospital room. Then he showed up five days later at the front steps of a Boston hospital without a leg cast for his broken leg. The entire official story has big holes, the biggest being no leg cast from a fracture. A very questionable part is a long delicate operation over a fracture without fast bicycle movement and without traffic such as cars and trucks in the mix.
The reported alternate story is that Kerry was shot twice in France at a secret meeting, once in the chest and once in the leg. It was a meeting to discuss various elements of negotiations for the Iran nuclear talks. Before the meeting took place, Kerry was the victim of an ambush. It is unclear whether other body guards from the Secret Service were injured or killed. Time will tell, since those guys tend to talk liberally in their grapevine, even when sworn to silence. They gab like old hens in a country club. Once relatively stabilized from a severed artery in the leg from a gunshot, Kerry was rushed to a Swiss hospital just over the French border. Since not supposed to be in France, he was moved quickly to Switzerland. The Swiss medical staff reported him at death's door from significant blood loss. He almost died. Then came the Boeing flying military hospital to pick him up, and deliver him to the United States. He survived the wounds, saw his femur leg artery patched successfully, but was too weak to speak to reporters. He was apparently unconscious for at least two days from the trauma of the gunshot wound and lost blood.
The reality might be far different from the official USGovt story. Indications are that Kerry survived an assassination attempt, was shot twice, and almost died. The reality might be so nefarious as to make the actual account impossible to tell, since defense of the actual event might reveal too much information about internal factions. The complexity comes from the identity of the party responsible. It appears not to be a deed from an enemy camp. The United States has two militaries these past several months, one from the Pentagon (funded by USGovt deficits) and another from Langley CIA (funded by narcotics money). They are at odds, and have been at odds for at least a couple years. The internet is abuzz with a consistent story that not only fits, but the parts are consistent from a few different sources. Usually when quacky nutball explanations arrive to the desk, they are scattered, have little overlap, and show no cohesion. In this case, all parts fit together consistently, and all parts conflict with the official story.
Here is what the Jackass believes happened, my gutt around 70% to 80% sure. Kerry was shot twice by ISIL guerrillas in France, when gathering for a secret meeting with the Langley asset leaders. Refer to ISIL, the Islamic Independent State. Officially it is now called the Islamic State of Iraq and the Levant. The meeting was secret, since the USGovt prefers not to admit its control of ISIL from its inception. For the past few years, ISIS now ISIL was created by Langley, funded by Langley, trained by Langley, armed by Langley, and directed by Langley. It was created to foment constant war in the Iraq region, to steal oil assets and central bank funds, to win on the open field what the USGovt could not win in the Iraqi Parliament. The Shiite majority inside Iraq made for a hostile opposition, with stronger links to Iran than to Washington. So the USGovt appealed to ISIL to conduct raids, to make coordinated attacks, to disrupt the new government, and to cause chaos. In recent months, arms have been found from ISIL possession, often with US markings. Several key parties have come forward to reveal the connection between ISIL and Langley as control center.
Next consider motive for the assassination attempt via ambush by ISIL guerrillas. Colleague DonaldS in Florida added some insight. "A huge split has been clear between Kerry and Robert Kagan. Obama has acted to support Kagan's wife on the Ukrainian War effort after Kerry met with Putin and Lavrov in Sochi about rapprochement. Expect a strong clash regarding Mossad and Kerry. There seemed to be a link between Kerry's efforts with France to create a Palestinian state at the United Nations, which would order the division of land well developed by Israel. Obviously, that would bring war and threaten the existence of Israel. Therein lies a real and valid motive." Therefore think a possible Mossad hit, by an ally, and thus no reported incident in the press. There is more. Hillary might be eager to remove Kerry from access to USDept State files related to Benghazi, which he has control of since the head of the cabinet office. Hillary pursues her bizarre presidential campaign. One can smell something much bigger than just an ambush by Arab mercenaries betrayed, like a hired hit by Langley under Bush/Clinton gang orders, like the USDept State deeply divided between practical heads and Neo-Con NSA Gestapo, like a sabotage of either the Iran nuclear talks or the Palestine state inception or the truce talks with Ukraine. It is possible that Kerry is caught in the middle of a deadly crossfire, using ISIL as hired hitmen. Is it possible that the USGovt has betrayed the Langley ISIL brass in some other way, ready to dispose of part of their team.
It is known that ISIL has terror plans in Europe, like a continuation of Langley's infamous Operation Gladio. Since ISIL is a CIA asset creation, its control is both by Langley and Mossad, the inseparable tagteam. Beware of enormous fractures and schisms with internal USGovt battles. The Pentagon is divided. The USDept Treasury is divided. The US intelligence agencies are divided. The Council on Foreign Relations is in certain ways outside looking in. These are dangerous confusing times, and Kerry is caught in the crossfire.
The absence of a cast on the right leg is the great tell of the big public lie. Notice not a single question from the sleepy press corps on the absent leg cast. The story of falling off a stationary bicycle in a hotel room is ludicrous, an insult to intelligence. No dispatch of a Boeing flying hospital on emergency basis would have been required for a basic broken leg. At least he aint dead, but another attack is possible since the conflicting factions are still in opposition and active. See Yahoo (HERE). Victoria Nuland has charge of Europe and Asia as under-secretary. The ambush might be a violent policy shift which pushes Kerry out of the European negotiations altogether. It could be that Kerry went to conduct meetings on Ukraine then Iran and Palestine, spoke as USGovt emissary, but without the Obama Admin approval. Maybe the Team Obama is so fractured so that Kerry is unsure of the policy, since some is hidden, and many operations are covert, with a secretive NSA agenda working through ISIL agents. To be sure, Kerry is sidelined and might resign over health issues. A great internal battle might be underway between the NeoCon Fascists and the practical elements of US foreign policy rooms. Much is left suddenly in doubt, as Kerry might yield to Nuland at the control desk, after commitments were made under the Minsk 2 Accords with Russian officials. The NeoCon Nuland is suddenly in charge. See Zero Hedge (HERE).
◄$$$ THE GERMAN PEOPLE RECOGNIZE THE UNITED STATES OF AMERICA AS A FASCIST BREEDING GROUND AND VILE HOST... NOTICE GRAFITI IN GERMAN PUBLIC TOILETS IN STARK SOMEWHAT SHOCKING MANNER. $$$
◄$$$ VELOCITY OF MONEY IS BELOW GREAT DEPRESSION LEVELS... THE USFED QE PROGRAM IS KILLING THE ECONOMY FOR THE BANKER ELITE BENEFIT... THE MOST VALID MEASURE OF ECONOMIC AND MONETARY POLICY SUCCESS IS ECONOMIC GROWTH MATCHED AGAINST MONEY VELOCITY... THE SYSTEM IS DYING A SUDDEN DEATH IN A RAPID DOWNFALL. $$$
The great tipping point was the repeal of Glass Steagall by Bill Clinton in 1999, which permitted the conglomeration of banking, insurance, and brokerage firms. It was a disaster, but permitted vast Wall Street fraud and gutting of the system. It acted as climax to the boasted Greenspan Financial Engineering, complete with offloaded risk within banking derivatives, an avalanche of more fraudulent elite drivel. The destruction of the USEconomy will be the discovered outcome for years to follow. The Money Velocity has fallen to below Great Depression levels. This is monitored meter highlighting the destruction of capitalism. Next comes openly visible systemic failure, collapsed financial structures, rejected USDollar currency, vast supply shortages, rampant price inflation, and national isolation of a pariah nation. It has been made a pariah in global terms by actions and policies enacted by its leadership class. Behold the current New Greater American Depression, complete with global export. It continues unabated. This disaster will easily eclipse the 1930 Great Depression in the United States.
Expect a rapid acceleration on the current trend. Expect martial law and a fascist state to become the outcomes of the failed system, whose meter is shown in a rapidly plunging Money Velocity. It is defined loosely as the ratio of total nominal economic activity versus the national money supply, in other words the cycles per year of money itself. By not pursuing big bank liquidation, actual fiscal reform, normal monetary policy, an end to predatory war, and growing bureaucracy, the USGovt has guaranteed a systemic failure which is coming to pass almost precisely as the Jackass has been warning for over 6 to 8 years. Martin Armstrong concluded, "The collapse in the velocity of money illustrates the collapse in liquidity in the markets which will erupt in higher volatility we have not seen before. The velocity of money declines as hoarding rises and businesses are ruined. This is how empires, nations, and city states decline and fall." The Jackass interjects that ruined business and wrecked capital is far bigger in its effect than hoarding of capital. See Armstrong Economics (HERE).
## ELITE NEFARIOUS MACHINATIONS
◄$$$ H.G.WELLS WAS NOT ONE OF THE GOOD GUYS... HE WAS A CABAL SHILL, WHOSE CENTRAL PRECEPTS STATED IN HIS 1901 MANIFESTO OF THE RULING CABAL WERE CLEARLY LAID OUT... THE MAN WOULD FIT IN WELL WITH THE NEO-CONS AND TRILATERAL ELITE WHO DENIGRATE THE MASSES... WELLS WAS A SPOKESMAN FOR FASCISM IN HIS ERA. $$$
Renown science fiction author HGWells wrote many classic tales, most of which have been featured as popular movies. He wrote "The Time Machine" and "War of the Worlds" and "Island of Dr Moreau" which were great hits. Look more closely and one can see hints of time shifts via interstellar high-speed travel, conflicts among alien tribes on earth, and genetic tinkering within the human species, all of which are prevalent in today's world. He was connected. Wells was not timid to express his desire for fascist rule amidst disdain for the masses. The following are his expressed viewpoints, with accuracy so uncanny as to give away the elite planning for the next century. Democracy is the "great grey mass" which imposes dictatorship upon those entitled to rule. Society must be destroyed completely in order to return to the historically stable two-class society of rulers and those who serve them. By the year 2000, the ascendant nations will have learned how to poison the "people of the abyss," who are the blacks, browns, yellows, and dirty-skinned whites. A secret shadow government will be created to control the elected government, weakening it so that in due time the elected government will crumble and fall of its own weight into the grasp of the true rulers. A network of privately owned central banks and a graduated income tax on earnings of the middle class (all those who work to earn income) will be central tools in destroying the middle class, together with a system of tax-exempt trusts and foundations working with academic institutions. Wow! Right on the mark on all counts, with the exposed banker elite doling out the fraud and control.
Author historian Wayne Jett provided the information on Wells, unflattering to be sure. He pointed out that in his book entitled "The Fruits of Graft" an assortment of the many other unsavory elite deeds. He cited the specific actions taken by the USGovt to permit the Great Depression on the United States and the world. He wrote, "No doubt, the proof is entirely persuasive: US officials, FDR primarily, imposed famine, starvation, and death on Americans and others around the world by taking actions which destroyed the Gold Standard, severely shrank the money supply (especially within the US), and aided the ruling cabal in acquiring assets at fire sale prices for more than a decade. Also, tech crash of 2000-2002 was orchestrated. The financial terrorism of 2008 was accomplished as well, with an estimated $13 trillion looted through US financial markets." A quick review of the grand event shows Morgan, Kennedy, Schwab, Mellon, and others all exploiting the disaster, as several shorted the stock market at the top, and bought at the bottom, with tipped off information of the game. To be sure, the Lehman failure was a kill job, with vast exploit, probably far more planning in 2007 than has been made known.
◄$$$ DOUBTS PERSIST ABOUT THE MOTIVES BEHIND THE ASIAN ELITE PLANS AND CONSTRUCTED SYSTEM... SUSPICIONS RUN CONCERNING HOW THE ASIAN ELITE ARE SIMPLY THE CURRENT EVIL ELITE WITH DIFFERENT OFFICES... THE JACKASS IS QUITE CONFIDENT THAT THE ASIANS ARE AS POSITIVE AS THE WESTERN ELITE ARE EVIL... NOTICE THE ASIAN SIGNALS IN CONSTRUCTIVE TRADE SYSTEMS, INSTALLING A FAIR GOLD STANDARD, AND CLEANING UP THE EVIL ELITE CLASS. $$$
Several Hat Trick Letter clients have raised concerns about the Asian Elite and their motives. As preface consider concerns that the White Dragon Family concept is difficult to accept, since its has openly stated desires toward humanitarian goals. To compound the suspicion, consider that they plan to unleash vast amounts of gold in order to fund their goals. Maybe so, maybe not. The concern is that huge flow of money will cause massive inflation. Nothing could be further from reality, since a flood of gold-backed funds is not inflation in the monetary sense. To expect price inflation as a result is as wrong-footed as the commonly held belief that too much economic growth causes inflation. The result of price inflation is and always has been from excessive monetary printing without basis. Neither economic growth (from capital layout and job growth) nor gold funded projects cause rising prices, a patently erroneous expectation. Also, the Gold Price will not fall under such circumstances either, since the project funding will not come from vast sales of Gold bullion. The metal is too valuable to dump, but rather will be used as collateral in competently backed funds.
If people wish to live in the world of reality, they must come to grips with the White Dragons, since they are as real as the Rockefellers, Rothschilds, Bushes, and other extremely wealthy Western nefarious families. The WD are just as private but are not practiced in Satanism like the Western Elite. The WD apparently have a strain of alien blood lines, which in time will be more revealed. See the December Hat Trick Letter for more discourse on the topic. The West has power centers in New York, Washington, London, Rome (Vatican), Basel Switzerland (BIS), and Jerusalem. The power centers are both banker and giant corporation in location, the tentacles from big businesses extending to the big banks and high level government offices. All evil tends to have a counter-balance in this world. The West has an overwhelming imbalance toward pure evil, with its central bank franchise system, the New World Order aims, and the Agenda-21 earth destruction goals. These are deeply evil. The East with ancient families like White Dragon Society have had much more privacy at work during the last century or more. They might have some connections to the Western clans, but they are much more free from the vile human filth. They were the object of extensive gold hoarding and secure concealment during World War II, as the Chinese mainland was invaded in rapacious style by Japan. The USMilitary approached the Japanese core homeland, while Chinese elite and other leaders managed to work with the USGovt in storing their truly vast gold hoard for future access in Indonesia and the Philippines. The USGovt has since been trying to steal the Chinese gold, to murder its owners (and attorneys), and to betray all lease contracts. The United States is the center for global war and financial high crimes.
In November 2011, the Jackass received word that the Asian Elite (later identified as White Dragons) would put to use $50 billion in gold bullion. THEY DID NOT SELL IT; THEY USED IT AS COLLATERAL. This is an enormous distinction which must be comprehended. They posted it as collateral, and with the borrowed funds, they raided London of at least 25,000 tons gold. The Voice was part of the expert team to reclaim the gold. In fact, the story was told that the London bankers improperly used the Asian gold hoard as margin for a vast network of derivatives contracts (like futures contracts) to serve as the false foundation of the Euro Monetary Union. It is otherwise known as the common Euro currency system. Therefore, the usage of their Gold bullion was not like the ordinary central bank activity of monetary creation like toilet paper with fancy elaborate etchings and filament security features. In fact, Gold never causes inflation when used in funding projects large or small.
Price inflation is a monetary creation consequence, due to profound volumes of phony money output. Most people have been badly educated on inflation topics and its dynamics. The White Dragons will use even more Gold bullion, far more than a mere $50bn, in the next significant rounds. The establishment of a Gold based system, complete with gold-based financial structures, will not be inflationary any more than opening a new factory is. They are both wealth generator facilities. Putting Gold to use does not reduce its value, since it will be dedicated as core to a fund. THEY WILL NOT DUMP GOLD, AND INSTEAD LEVERAGE IT IN POSITIVE WAYS. These are extraordinarily important points, since they are directed at the essence of money, both real and false. Gold is real, while the USDollar is false. Gold is wealth, while the USD is debt.
The final points are just as important for instilling trust in White Dragons and the Asian Elite generally. The WD have made significant progress in cleaning up the Western Elite. Actual secretive reform contracts are part of the hidden high level process. The holdouts are the elders from the Rockefeller, Rothschild, and Bush families, who regard themselves as kings of earth, with license to kill and steal, above the law, fighting the age-old battle of human longevity. According to The Voice, over 90% of the Western Elite have signed a pact with the WD to end the evil practices of murder and theft, complete with frauds and market rigging. The USGovt cannot join the process, since they manage the King Dollar, which has become the most violent corrupt and despicable currency in the history of mankind. Their rigged markets will continue until the end. The benefits of the widespread elite reform will be evident in coming months. The next action by Asian Elite is the return of the Gold Standard. It will arrive via the trade corridors, then the banking systems, and finally the currency rooms.
The imposition of the Gold Standard will ensure a fair and just system of trade and finance, and bring the global banking system back to health. It will also block all future attempts by the Western Elite to steal $trillions, as is their wont. In no way are the elite reform and Gold Standard return part of any evil agenda. They are the exact opposite and should be welcomed. The Jackass is eager to learn more of the White Dragon identities, their technology treasure, their alien lineage, their genetics, and their particular projects such as ending poverty (with related hunger challenges). They must solve the population problem if they expect any success or even early progress on poverty.
◄$$$ THE CLINTON FOUNDATION MONEY LAUNDERING SCAM IS COMING INTO VIEW... IT DEALS WITH INFLUENCE PEDDLING AND HEAVY MONEY LAUNDERING... UNWANTED ATTENTION HAS GROWN ALMOST TO CRITICAL LEVEL, BUT EXPECT NO JUSTICE SERVED. $$$
The Clinton Foundation has been under scrutiny for illegal activity and financial fraud, even in line for a RICO racketeering test. At least one state has put the screws to the foundation, used as a veritable slush fund of deep money laundering by the Clinton family. However, expect exactly zero justice since Clinton is a Rockefeller integrally tied to the Bush Narco Works. He is on the ownership title to multi-$trillion investments with Bush. The most to hope for is a ream of bad publicity with all the attendant embarrassment. The foundation in question works as a tax free international money laundering scheme, possibly to be recognized as the largest political criminal enterprise in US history. Its structure and usages make for a textbook case on how to hide foreign money sent with special repackaging for personal purposes, in a tax free manner. Here is how it works:
1) Create a separate foreign charity, in their case formed in Canada.
2) Foreign oligarchs and governments, many sworn enemies of the United States, then donate to this Canadian charity. In this case, over 1000 have done so, contributing multiple $millions. Most donations are politically motivated.
3) The Canadian charity then bundles these separate donations and makes a massive donation to the Clinton Foundation.
4) The Clinton Foundation and the cooperating Canadian charity claim Canadian law prohibits the identification of individual donors. Such is legally not the case.
5) The Clinton Foundation then spends some of this money for legitimate good works and beneficial programs. Experts believe this amounts to around 10% of fund usage. Much of the balance goes to enrich the Clinton's, to pay salaries to untold numbers of partners, and to fund lavish travel (even to Caribbean locations for under-age sex parties). Again, virtually all tax free, and thus indirectly subsidized.
6) The Clinton Foundation, with access to the world's best accountants, fails to report private usage and related personal expenses on their tax filings. They pretend to discover what they call clerical errors, and begin the process of re-filing 5 years of tax returns. The foot dragging is effective.
The net result is that foreign money, much of it from recognized US enemies, goes into the Clinton's pockets tax free and untraceable back to the original donor. This is the textbook definition of money laundering. The linkage between such foreign donations and favors done by the Clintons (including Hillary as Secretary of State) will be the subject of a future investigations by private analysts and possibly legal prosecutors. The charges will possibly extend money laundering into bribery and treason, but expect all court procedures to be interfered with, interrupted, and forcibly abandoned. It only takes a phone call or two, a threat or two, a huge bribe or two, an arrest or two on phony charges, or a murder or two to interrupt the court procedures. Maybe the judge will be run off the road into a ditch by an unmarked black SUV with federal license plates and tinted windows, or the judge's daughter will go missing for 48 hours, only later to show up unharmed (message delivered). These are their methods. The RICO application is only in theory, as these elite criminals are not subject to laws. The Clintons have completed kills of at least 30 people in their paths. Vincent Foster and Ron Brown could talk, but they are dead. The nonsensical conclusions by legal authorities border on comedy.
The Canadian charity includes as a principal Frank Giustra. The man was central to the formation of Uranium One, the Canadian company that acquired massive US uranium assets and then sold them to an organization controlled by Russia and Putin. The transaction required USDept State approval, with Hillary signing. Much of this uranium will eventually be sold to Iran, using other questionable routes. The observer is left to wonder why these foreign interests funneled money through a Canadian charity, and why they did not donate directly to the Clinton Foundation. Witness crafty clever activity with structure and motive, the essence of money laundering and influence peddling. It is not difficult to find motive for actions taken by Hillary to destroy 30,000 emails. Either influence peddling or basic treason related to Benghazi Embassy deaths were likely involved. She did not wish to risk the smoking gun of a string of incriminating emails. Now she is running for President. The Jackass calls treason a calling card for high office in the USGovt. See American Thinker (HERE).
◄$$$ USMILITARY SPENDING IS A GRAND WASTE AND BOONDOGGLE TO SUPPORT THE MILITARY INDUSTRIAL COMPLEX... THE DESIGN STRATEGY IS FLAWED, WHILE THE OPERATION STRATEGY IS FOR EVIL ENDS CENTERS ON FASCISM SPREAD AND GOLD THEFTS. $$$
The following rant is from colleague JoeZ on the West Coast, who regales the Jackass with brilliant observations from time to time. His words, my edits for flow. There should be far more concern and questions about the amount of military expenditures and the result for the vast spending. Look at 2014 numbers by the Intl Institute for Strategic Studies between the USA, China, and Russia on military spending. It cites USA at $581 billion, China at $129 billion, and Russia at $70 billion. Then check the volume against comparison of the capabilities of these three military powers. It seems clear that the US spends far more money then China or Russia, without having any real advantage in the air, on the land, or in the sea. China is now building a fifth generation fighter aircraft, as capable as the USMilitary's F-22. Meanwhile deep concerns have been raised about the new USMil F-35 with the attendant embarrassment. In China their financial savings dictate how they are capable of even larger military spending. Their new J-31 stealth fighter is nearing production. Furthermore, word is they will use the latest Russian jet engine, known as the Klimov RD-93 developed for the Russian T-50 PAK- FA stealth fighter. The point is that since the MIG- 25 Foxbat, the Russians have produced world class jet fighters, from the MIG series to the SU series.
The US is being out-smarted. Unlike the US trying to build one aircraft to perform multiple different missions (such as the F-35), the Russian Air Force has built aircraft optimized for each specific mission. They are clearly accomplishing the task in a manner with less cost and quicker time of development. The F-35 has caused serious flack in criticism. Constantly the USMil seeks the jack of all trades, master of none, with huge cost overruns, all accused of over design. This is seen in fighters, bombers, ground attack vehicles, naval carrier aircraft, vertical takeoff lift aircraft. The wait is on, the costs mounting.
The Jackass concurs. There should be more scrutiny, but none is possible within the current power structure. What the Pentagon requests, they get, with high cost and usually less than excellent performance results. The USMil seems to use a strategy of greater numbers and more theaters of war. The Russians decided in the late 1990 decade to design superiority in a few key areas like missiles. See the Sunburn and Onyx missiles. Their SU fighter aircraft are equipped with radar jamming and target system jamming features, while leave the USNavy standing helpless and blind in the water. Live examples and demonstrations have occurred. The USMil strategy has been a boondoggle failure for a long time. In the 1990 decade a war games simulation was conducted. The larger F-series lost in the war games to the smaller F-series but the Pentagon ordered a fleet emphasizing the larger series since they carried a bigger bomb payload. The USGovt strategy has also been very much a failure in all respects, with a haphazard series of victories toward banker cabal goals. Those goals are hidden: 1) to cause chaos and wrecked economies so as to further the totalitarian state plan, and 2) to steal the gold during its movement using the Bush Team mercenaries.
◄$$$ THE ULTIMATE REVOLUTION WAS FOREWARNED BY ALDOUS HUXLEY, A PRESCIENT SPEECH BY THE FUTURIST AUTHOR OVER 50 YEARS AGO... HE WARNED OF A HIGH TECH FASCIST GOVERNMENT, WHOSE TOOLS WOULD BE WELCOMED BY THE VICTIMIZED SOCIETY. $$$
Author Aldous Huxley wrote "Brave New World" which is a horrific frightening tale of future world. The controls by the totalitarian state are complete. Their Soma drug is effective (see narcotics heroin and cocaine, even sedatives and anti-depressants). He described a scientific tyranny instead of the basic platforms described by Orwell. He previewed abuse generalities, which have come to pass in genetics and food and tech espionage and PC commerce and social networks and biometric recognition and travel scanning and capital controls and passport chips and credit card chips and possibly human RFID chip (upper left arm) and vast electronic centers in embassies and drone attack weapons. The world of Huxley is here and now. Huxley warned of extreme usage of technology to suppress and enslave the masses within their totalitarian scheme. He was a sage. He went further to describe how humanity with its political and social systems would welcome the technology and accept it.
To the Jackass, social networks prove the point of public acceptance. They are a tracking and censorship apparatus. My response has been to delete all offers for several years, expecting exactly what happened in tracking like cattle. My movements will remain private. Offers arrive at my email inbox every week from clients. All are deleted instantly like clutter. The FaceBook censorship surprised me but doubly proved the point on controls. An experiment was done in 2013 and 2014, whereby on 30 occasions, an email was sent to the person inviting me to his/her group of Friends. On 80% of more of the occasions, the person did not send me the invitation. It was generated by the tracking and censorship apparatus, the social network. FaceBook is a cancer. See the YouTube of Huxley (HERE) from the Univ California Berkeley in 1962.
## SYSTEMIC BREAKDOWN WITH MOMENTUM
◄$$$ WALL STREET TURNED OUT ALMOST EXACTLY AS CROZIER PREDICTED AND FOREWARNED IN 1910... THE REST IS HISTORY WITH THE CENTRAL BANK OCTUPUS STRANGLING BANKS, BUSINESSES, AND FACTORIES (ADD FARMS)... THE SYNDICATE STRETCHES FROM THE BIG BANK CENTER TO THE USCONGRESS, WHITE HOUSE, AND USDEPT TREASURY... THE FASCIST BANKERS HAVE KILLED THE NATION, DEATH BY STRANGULATION, FRAUD, AND USURPED PRIVILEGE... THEY HAVE CONTROLLED CURRENCY AND CREDIT FROM THE USFED HQ WITH OUTPOSTS IN THE STOCK EXCHANGE... THE GIANT SQUID HAS FEED TO THE POINT OF WRECKING THE NATION BY SUCKING ITS CAPITAL, CONTROLLING ITS RULES, DEPLETING CAPITAL, AND RUINING THE ECONOMY. $$$
In 1910, three years before the US Federal Reserve was founded, Senator Nelson Aldrich, Frank Vanderlip of National City Bank (Citibank), Henry Davison of Morgan Bank (later JPMorgan Bank), and Paul Warburg of the Kuhn Loeb Investment House met secretly at Jekyll Island in Georgia to formulate a plan for a US central bank a few years ahead of World War I. The result of their work was the so-called Aldrich Plan which called for a system of fifteen regional central banks, the National Reserve Assn, whose actions would be coordinated by a national board of commercial bankers. The Reserve Assn would make emergency loans to member banks, and would create money to provide an elastic currency that could be exchanged equally for demand deposits. The association would act as a fiscal agent for the federal government. It would become the basis of the Federal Reserve, with monopoly exerted over money.
In other words, the Aldrich Plan proposed a central bank that would be openly and directly controlled by Wall Street commercial banks on whose behalf it would solely operate. Their activity would be conducted indirectly behind closed doors and free from the nuisance for criminal probes on leaked policy. The Aldrich Plan was defeated in the House in 1912, but its outline became the model for the bill that eventually was adopted as the Federal Reserve Act of 1913. Its passage not only unleashed the Fed as known today, but created the entire shape of current modern finance. The pattern has been repeated in the modern era, as rejected legislation returns and finds passage while hidden in large bills or during poorly attended vacation sessions. The 1913 legislation was done during Christmas holiday, and actually resulted in the Quorum Rule, whereby a certain proportion of Congress members must be seated for a vote.
In 1912, one person who warned against the passage of the Aldrich Plan. He was Alfred Owen Crozier, a man who foresaw the unfolding of events, and even wrote a book entitled "US Money vs Corporation Currency" explaining and predicting everything that would ultimately happen with impact. He added 30 illustrations for those readers who were visual learners. The book is a must read, written a full century ago. Details were offered in precise predictions of exactly what the current financial system would later become. As Overstock CEO Patrick Byrne noted, it is uncanny how accurately Crozier foretold of the future misery a full century later. Bear in mind that this is the giant squid described by Matt Tiabbi on a regular and frequent basis in his accusatory scathing essays, often found on the bold Rolling Stone magazine. The Too Big To Fail Banks are the increasingly visible burden of the nation, its ball & chain. However, the other less recognized plague of the nation is the Central Intelligence Agency, which is usually referred to simply as Langley. Even Crozier could not have anticipated the Pox Americana that Langley would foment. Some of the above descriptions were taken from a third party account, whose identity could not be given.
◄$$$ BEHOLD AN EXERCISE IN ERUDITE ANALYTIC FUTILITY, EVEN IF ON THE RIGHT THEME OF PRICE HYPER-INFLATION... THE MARKET THEORY OF MONEY IS USELESS IN THE CURRENT ENVIRONMENT... THE QUANTITATIVE THEORY OF MONEY IS USELESS WHEN WALLS ARE ERECTED TO PREVENT MONEY FROM ENTERING THE REAL ECONOMY... NONSENSE COMES FROM ECONOMIST OFFICES, RUBBISH THEIR CONSISTENTLY ERRANT OUTPUT... PRICE INFLATION WILL SLAM THE USECONOMY WHEN THE USDOLLAR IS REJECTED ON A WORLDWIDE BASIS. $$$
- The risk of an outbreak of high inflation in the United States is rising. We are approaching a critical point where the ability of the USEconomy to grow while the monetary base is reduced will be tested. If the USEconomy falters, or if the USFed blinks and fails to reduce the monetary base, then the value of the USDollar, a proportional claim on future output, could fall sharply and prices could rise significantly.
- The market value of money is the denominator of every money price in the economy. The view of the Money Enigma is that the market value of money depends primarily upon the expected long-term growth of real output relative to the expected long-term growth of the monetary base.
- Presently, the market expects strong real output growth and a reduction in the monetary base. If these expectations are disappointed, then the market value of money could drop precipitously, triggering a period of high inflation.
- Ultimately, the prospects for hyperinflation depend upon the real health of the USEconomy. If it is an innovation machine that grows solidly as the monetary base is reduced, the value of money will be protected. But if the USEconomy is merely a house of cards supported by cheap debt, then hyper-inflation is a real possibility.
Such elegant klaptrapp is the conventional erudite economic analysis, the highly paid work from arrogant snotty economists who cannot wrap their heads around the current rigged corrupted broken insolvent wrecked system. See The Money Enigma (HERE) to expose the fallacy of conventional economic analysis.
More rubbish analysis comes regularly from the financial sector tripe. They claim to have a grip on the next threat for price inflation shock. Here is the chorus. For the first time in 15 years, demand in the world's largest economy is outpacing supply. The result could be an inflation shock that roils financial markets, according to Wells Capital Mgmt. James Paulsen is the firm's chief investment strategist. The stupidity of his statement is typical, and cause for extreme disappointment in the policy maker staffs with supporting chorus of sophomoric fools. He stated, "Regardless of its overall speed, an economic recovery is at risk of overheating whenever demand grows faster than supply. Since most investors are not anticipating any serious overheating evidence, we are concerned a potential inflation scare, could produce a significant change in financial markets pricing." Sounds impressive, and surely spew from a very highly paid desk. However, reality bites. It is more rubbish analysis since garbage in concerning economic data results in garbage out concerning related conclusions. Demand is not growing fast, unless the official USGovt economic statistics are adopted. Supply is being curtailed, but so is household income, which is badly skewed in official statistics.
The flawed thinking is as astonishing as it is commonplace in the financial rags. The analysis makes no mention of the sanctioned established endemic hyper monetary inflation known as Quantitative Easing, and its corrosive domestic and global effects from unsterilizied bond purchases, a la Zimbabwe. The analysis offered makes no mention of the currency risk which grows like a huge balloon containing gasoline above the little business campfires. The USDollar is in the process of sunset, the elaborate Petro-Dollar machinery being dismantled in a manner that not 1% of Americans comprehend. See Bloomberg rot (HERE).
Methinks the usual fare of economic analysis is mostly nonsense, and has been nonsense since 9/11, perhaps earlier, like since the 1996 Irrational Exuberance event. Most analysis fail to incorporate abuse and corruption, and thus is badly errant. Typically the standard fare offers no factor of foreign rejection of USD, no mention of wall to prevent QE money from entering real economy, no appreciation for financial market rigs, no account for big banks running bond carry trades, no citation of war as USD defense. It is poor vapid conventional analysis in the midst of totally whacked out monetary conditions. They tend not to recognize the increasingly fractured USTreasury Bond market and the deep dependence upon narco money in the big US and London banks. Thus methinks mostly erudite nonsense. The Jackass firmly believes that price inflation will arrive when the USD is rejected and a New Scheiss Dollar is required to assure import supply continuation, which will result in fast rising import prices, supply shortages, and chaos. Ths USFed cannot unload the toxic paper totaling over $4.5 trillion which they hold on balance sheet. Doing so would indeed cause price inflation, but no buyers exist for the USTBonds. The USFed as a central bank was acquired in 2013 (at least controlling interest) by China so as to ensure the USFed eats it whole and thus suicide is forced upon the Western bank cabal. No death by 1000 cuts, but rather death from poison ingestion.
◄$$$ BIG BANK DISTRESS HAS BROUGHT EMPHASIS TO FINANCIAL ENGINEERING, AS THEY WILL DO MORE SHARE BUYBACKS AND ISSUE LARGER DIVIDENDS... THE BROKEN PILLARS OF FINANCE HAVE BECOME GIANT HOLLOW REEDS, THEIR FENCED FLOW OF FUNDS DERIVED FROM USFED QE EXTRAVAGANCE, FROM WHICH THE BOND CARRY IS GENERATED FOR INCOME PURPOSES. $$$
It has been announced that HSBC will cut 50,000 in a vast slash. To put it into perspective, one job in five will be cut and eliminated. HSBC will revert to an Asian fortress. The news eclipsed easily the JPMorgan news to cut 5000 jobs by year end. HSBC plans to reduce the investment bank division by one third. The hardly concealed reason is all too prevalent. The big US corporations, beyond the financial sector, are laying off tens of thousands in head count so they can fund record stock buybacks and enrich their shareholders, to boost profits so that more money can be channeled in the form of dividends. HSBC explained the culling of unprofitable units and countries. Half of the cuts will come by means of selling businesses in Brazil and Turkey, where the official word stated was they had failed to gain scale. Expect a profound macro impact on the regional economies. The big bank plans to cut its assets by a quarter, or $290 billion on a risk adjusted basis by 2017. It will reduce $140 billion from its investment bank, which will subsequently make up less than 33% of the HSBC balance sheet from 40 percent now. However as usual, they expect shareholders to be pleased.
CEO Gulliver pledged higher payouts for investors, from the financial engineering, with the onset of a prolonged period of dividend growth for the firm. A skeptical reaction came quickly, that cash flows cannot be grown by massive attrition, an indirect slam at the casino nature of the financial firms. They are hollowed out pillars, devoid of a core business. The cost of doing business is fast rising, even as the traditional business is doing a vanishing act. Criticism came from James Antos, analyst at Mizuho Securities Asia. He said, "Slaughtering the staff is not necessarily the solution unless management makes the bank considerably less complex." Refer to derivatives, bond carry trade, and other rigged market games. Decisions are being made as to whether to transfer the HQ from London to Hong Kong. See Zero Hedge (HERE).
◄$$$ BLACKROCK HAS CITED AN ABERRANT PHENOMENON, BY CLAIMING TODAY'S BUYBACK BOOM IS AN ECONOMIC DISTORTION CREATED BY THE USFED... A RECORD $215B OF ACQUISITIONS OF AMERICAN COMPANIES IN MAY, CAPPING THE BUSIEST 12 MONTHS EVER, WHICH TOTALED $1.58 TRILLION... A FAILED USECONOMY IS FOR SALE, GOBBLED EVEN WITH AN OVER-VALUED USDOLLAR. $$$
Capitalism is dying a horrible death in the United States and West. The distortions are obscene, the USEconomy broken. The nation does not comprehend either money or capital anymore, a powerful Keynesian toxic after effect. At current interest rate levels, corporate leaders sense a great incentive to merely leverage capital stacks and to avoid riskier business investment (CAPEX). The bond carry trade and stock buybacks are a sure thing winner, given the USFed wink & nod on no rate hikes. Conversely, business layouts and capital expansion might not pay off, especially since the economic distress is horrendous and in fast retreat from the breakdown. The shareholders argue and clamor for higher dividends, from the lower risk route. Most assuredly, the global economy is witnessing a massive redistribution of wealth and income with borrowers, equity shareholders, and short-term investors benefiting. On the other side, the savers, bondholders, and longer-term investors have been put at risk of extinction. If they do not protect themselves with Gold & Silver assets, they face a wipeout. See Blackrock Blog (HERE). Recall that Blackrock is a primary investor in discounted dumped bank portfolios of urban center residential properties in the United States. The strategy has not been successful.
◄$$$ THE US$505 TRILLION INTEREST RATE DERIVATIVES BUBBLE APPEARS TO BE IN IMMINENT JEOPARDY... THE CENTRAL BANKS ARE IN URGENT MODE TO PROTECT FROM ANY FURTHER DEBT DEFAULT OR BANK FAILURES... GREECE WITH ITS DEBT SERVICE IS THE VISIBLE POINT, WHEREAS MANY OTHER DEBT SERVICE ITEMS THREATEN TO PUNCTURE THE BUBBLE.... THE ENTIRE SYSTEM OF BANKS, BONDS, AND CURRENCIES ARE LASHED TOGETHER FIRMLY, EVER SINCE THE LEHMAN FAILURE... THE ENTIRE FINANCIAL SYSTEM IS THEREFORE AT GREAT RISK. $$$
Throughout the entire Western banking system, large banks are massively over-exposed to derivatives contracts. They are also deeply insolvent following the Lehman blowout, which exposed their mortgage assets as worthless. Interest rate derivatives account for the biggest chunk of these derivative contracts, like 80%. According to the Bank for Intl Settlements, the notional value of all interest rate derivative contracts outstanding around the globe is a staggering $505 trillion. If not for the accounting changes done after 2012, the figure would be over $1 quadrillion (too embarrassing, thus the changes to remove some zeros). The amount of money is almost incomprehensible, surely at least 50 times larger and possibly 100 times larger than the USGovt debt of $18 trillion. The banker masters cannot permit the derivative bubble to break, an event often referred to as the nuclear outcome. An inadequate amount of money exists to cover the debt due for the redemptions, bailouts, payouts, and coverage. The key to making sure that all of these interest rate bets do not start going bad, is for interest rates tied to USTreasurys to remain stable. Enter the massive Interest Rate Swap contract, the giant machinery that rigs the bond market by fabricating long-term USTBond demand, using the free money from short-term USTBill infinite supply. It can never be removed.
The most recent threat to the derivative bubble is managing the Greek Govt debt. Watch their bond yields and credit default insurance for hints. To date, the Germans have been covering the debt service, essentially the creditor paying the monthly fees on its own broken ruined client. A Greek default, or even sizeable debt forgiveness, would result in their bond yields soaring, but worse, it would open the door to the great unknown. Never in history has such a large debt bubble been pricked and busted. Nobody knows what might happen, except that a tremendous loss of asset value around the Western world would occur, a catastrophe. The Jackass believes the catastrophe has already occurred, the aftermath yet to be perceived. The QE to Infinity signals the very same catastrophic situation in place, totally unresolvable. It would cause a panic, signaling no location is safe, as contagion would spread to the Southern European nations quickly. The PIIGS nations (including Ireland) would be slaughtered, followed by the German, London, and French banks. Vast accounts of private ownership of assets would vanish. The Western Ponzi Scheme would be exposed and eradicated. The system would be faced with the greatest interest rate derivatives crisis that has ever occurred. Such a horrendous outcome still has a possibility of occurring after the Great Global Reset, which The Voice anticipates in the early months of 2106.
If a nation like Greece is actually allowed to default after such great lengths to prop them up, the entire sovereign bond market will enter panic. The panic would surely extend to London and New York banks, then to the USTreasury Bond market. The Greek Govt is flat broke, and can only pay its debt service with money handed to it by the EU and IMF, which means German Banks and EuroCB gifts. The prized Greek assets are either sold or ready for sale with carpetbaggers. The public is treated to a never ending series of deadlines for payments and red lines for sacred untouchable items. Meanwhile, the gutting of Greek assets continues apace. The bigger story is the consequence for the rest of Europe. A Greek failure would alert all bond investors that their money is not truly safe anywhere in Europe. The bond yields would start spiking for all Southern European debt (Spain, Italy, Portugal, even France) in a manner much worse than in 2010 or later. Minor bond moves would lead to bigger bond moves, causing gigantic problems in the financial world. Such a scenario might still come to pass if controls are lost, and they are being lost.
In a powerful breakdown, the $50 trillion interest rate derivatives scam would be revealed, would give off toxic gas, resulting in massive bank failures and widespread account vanishes following the broad sovereign bond rout. The officials would justify the losses in some mealy mouthed way, citing force majeure, but the losses would be catastrophic. Never before in modern history has the Western world been this close to the actual derivative bust and nuclear event, until now. The entire system of banks, bonds, and currencies are lashed together firmly, ever since Lehman fell (was killed). Let it be known that the contagion would reach the entire FOREX currency market also. Since there are 75 trillion dollars of derivatives directly tied to the value of the USDollar, the Euro, and other major global currencies, the FOREX fallout could also create a crisis of unprecedented proportions in a second wave. Conclude quickly that enormous efforts will be made, Herculean efforts indeed, to prevent even tiny Greece from defaulting. See RINF (HERE).
◄$$$ GRAND STENCH AT DEUTSCHE BANK STARTING TO SIFT INTO SOVEREIGN BOND MARKETS... INDICATIONS ARE OF A DERIVATIVE ACCIDENT HAVING OCCURRED AT D-BANK IN GERMANY, WHICH LIKELY CANNOT BE CONTAINED... FOCUS ON THE INTEREST RATE SWAP CONTRACTS, A GIGANTIC CESSPOOL OF CONTROL DEVICES... THE PETRO-DOLLAR IS BEING DISMANTLED, A LONG GRINDING EVENT... THE COLLAPSE WILL CONTINUE FOR SEVERAL MONTHS, UNTIL THE USTREASURY BOND IS TOTALLY WRECKED, WHICH WOULD FORCE A REPLACEMENT OF THE USDOLLAR... EITHER THE FINANCIAL SECTOR WILL KILL THE USDOLLAR FROM USTBOND WRECKAGE, OR ELSE THE EASTERN NEW INDUSTRIAL NATIONS WILL KILL THE USDOLLAR BY OUTRIGHT REJECTION IN TRADE SETTLEMENT... ENTER THE GAME OVER FINAL CHAPTER. $$$
The previous story is the theoretical side, while this DBank story is the reality side in actual application. It was a bloody event at Deutsche Bank for the top executives in early June. It was probably a very bloody few months for the bank and its portfolio of toxic paper and failed derivatives. The bank is the primary derivative fortress in Europe, equal in prominence to JPMorgan for New York footprint, equal to Barclays for London footprint. The firing of both co-CEOs caught the interest of active as well as passive observers. In a management shake-up only a few weeks ago, Jain had been given more power by the Board and shareholders. He was fired in a grand insult, which most smart analysts believe is related to a massive loss of control and enormous financial loss, the details of which will come to light in time.
Some background, although a repeat of past reports. DBank acquired Bankers Trust in 1998 from the Wall Street bank center haven. It was the official derivative bank, used by Wall Street and the USFed to off-load risk. BT was later transformed into a cesspool of profound abuse. The Wall Street banks essentially created an off-shore derivative bank with full control, outside the US banker regulators and probably secretive in function to European regulators. DBank should be divided into six or seven independent firms. It is too big however, and not likely to be split since doing so would reveal the derivative hole during Trustee examinations and rigorous scrutiny with creditors and litigants watching closely. DBank remained critical to rigging the gold market, the weak link, which might have gone away. It is at the center of all European office coordinated corruption of derivatives. A few London banker murders are related to DBank, possibly with angry Russian investors involved for huge losses. The primary motive of London bank kills is to keep hidden the vast London Whale losses in derivatives, with many direct DBank connections. The recent CEO departures indicate major troubles ahead, possibly the ultimate event in failure. Look for possible criminal charges against the bank (not necessarily executives), in a scapegoat initiative.
A nasty raid was made. Just two days after Deutsche Bank co-CEOs Anshu Jain and Jurgen Fitschen announced their (forced) resignations, the bank's offices in Germany, France, and London were searched by authorities. Deutsche excused the searches as being related to security deals by clients in their words, probably lies. Over the past several years, Deutsche Bank has paid out over $9 billion in connection with legacy litigation, even actions related to Iran. They are closing toward conclusion of a USDept Justice settlement with another heavy penalty in the coming months over its role in selling shoddy mortgage bonds during the pre-Lehman years.
The firing of Jain is significant. The company is so big that one must regard it as two companies, the commercial bank with company credit portfolios, supporting positions, client accounts, wealth management, and more. The second company is the derivative fortress, a massive conglomeration of market rigging and corrupt stanchions holding together the Western derivative monstrosity from the European pylons. The understood reason for being (raison d'etre) by Jain was to build DBank into the world's largest derivatives dealer, but as a profitable enterprise. Some recent history is warranted. On May 26th, it was announced that DBank had reached a settlement with the US Securities & Exchange Commission (SEC) for improperly valuing its risk exposure to its Leveraged Super Senior Trades Book of Business (aka credit derivatives). Consider the malfeasance to be fraudulent accounting on its derivatives book as the tip of the iceberg with regard to fraud and risk exposure under Jain's stewardship. When derivative accounting goes wrong, the result is sometimes a $trillion error, or hundreds of $billions. The Jackass conjectures (always sounds more intellectual than guesses) that the DBank losses are catastrophic, hidden, unresolvable, certain to be amplified, and are far above $1 trillion.
Refer to Deutsche Bank in connection to big bank interest rate derivatives exposure, and recall that the German Bund has suffered two major unstable volatile harmful events in the last two months. The sudden moves in the 10-year Bund signal massive losses in Interest Rate Swap contracts. These contracts act like stabilizers, but take on massive losses in the event of up or down movements when not minor in magnitude. The recent Bund moves have been big. The estimated loss from European sovereign bonds in May was $1 trillion. As the primary dealer in such venues, DBank must have borne the majority of the loss. However, the estimated loss is within the Bund itself, and not leveraged derivatives. So perhaps $30 to $50 trillion is the ultimate Interest Rate Swap loss event and total potential toll, when calculating the typical 30x to 50x leverage. Think conservatively that perhaps the entire Bund is not fortified by IRSwap contracts. Maybe only $10 to $15 trillion in losses occurred. Never overlook how the USFed and EuroCB can print unlimited amounts of money, but the fires continue to rage and must be treated. They can also spread to locations not well under control. It is referred to as the contagion risk.
The high volatility in the global fixed income markets has triggered some kind of derivatives blow-up at Deutsche Bank, to be sure. Its details will require time for revelation. While the smoking gun points to some kind derivatives meltdown linked to major sovereign bonds like Bunds or USTBonds, it could also have been related to Greece Govt debt credit default swaps. It might have been Petro-Dollar derivatives, which link crude oil to the entire FOREX. All the evidence points to Deutsche Bank as the source of some major derivatives accident in the last few weeks. Recall the important Jackass theme of banks lashed together to share and manage risk, put in place following the Lehman failure event. The majority of banks and hedge funds globally are linked directly or indirectly through the magic of OTC derivatives and counter-party default risk. When it comes to heavy leverage, small losses become big losses, and then the contagion spreads to other areas where their losses are taken, then amplified. It is a veritable firestorm in a dry vast forest, thus unwanted and avoided at all cost. The bankers cover it up with magnificent accounting fraud, together with colossal lies. See Zero Hedge (HERE) and Investment Research Dynamics (HERE) and Not Quant (HERE).
In summary, a grand stench indicates a serious derivative accident occured with Deutsche Bank, now out of control, kept quiet but raging. DBank took control of Bankers Trust in 1998 from Wall Street in acquisition. The US bank syndicate directed most derivative activity off-shore. The connections to London and New York are vast, covering every major financial market.
- DBank has been at center of the LIBOR rig, the FOREX rig, the Gold rig, and other Derivatives which support all the rigging with huge leverage, even Iran sanctions violations.
- The Jackass suspects the Petro-Dollar machinery under dismantlement for the last year is causing major ripple effects in the USTreasury Bond market and the German Bund market, the two major continental bond pillars. Both are collapsing, in my firm belief.
- All insider reports and indications are that the Interest Rate Swap machinery is fractured from the volatility, since they take heavy losses with any movement up or down, favorable or unfavorable. Losses are surely in the $trillions at a minimum.
- The death of the USDollar comes from either the ruin of the USTBond market, or the rejection of the USDollar in global trade settlement. The dismantled Petro-Dollar apparatus guarantees continued barrages on the USTreasury Bond, as the vehicle in motion which represents the USDollar in direct linkage.
- Not one in 50 banking or economic analysts comprehends, mentions, or appreciates the gravity of the Petro-Dollar effect on the USTBond and the assured wreckage of the USDollar in the process. Think of a large building toppling, and a grand sports arena adjacent to the building destroyed by the fallout impact. Inside are the professional brokerages and important investors, seated and watching the screens.
◄$$$ GREENSPAN CLAIMS THE SOCIAL SECURITY TRUST FUND IS NONSENSE AND MEANINGLESS, AN EMPTY BARREL... THE KNIGHTED BRITISH AGENT BELIEVES THE UNITED STATES GROSSLY UNDER-STATES THE NATIONAL DEBT... NO TRUST FUND EXISTS, ITS COSTS TREATED AS CURRENT EXPENSES, ADDING TO THE DEFICIT IN ACCOUNTING NOW. $$$
Alan Greenspan, former chairman of the USFed, knighted servant of the Queen of England, hidden recipient of Swiss BIS salary (double agent), is a profoundly guilty party for the US financial system breakdown. He is a veritable Mr Magoo lookalike. He extended the game and then resigned in order to be disassociated with the breakdown, which many blame on Bernanke. Greenspasm claims that the Social Security Trust Fund does not exist and that the United States is way under-estimating the size of its national debt. It is leaps & bounds higher than a mere $18 trillion. Greenspan recently spoke before the Fiscal Summit held by the Peter Peterson Foundation. The trust funds do not represent a legal obligation to Social Security program recipients, and Congress could cut or raise taxes on such benefits if it chooses. The trust fund that supports Social Security's disability program is projected to run out of money late next year, triggering automatic benefit cuts, unless Congress acts. See News Max (HERE).
It sounds clearly like a broken raided system within a larger broken bankrupt system. A long string of administrations gutted Social Security, beginning with Lyndon Johnson, Gerald Ford, and Richard Nixon. They did so to reduce federal stated deficits, to cover endless war costs, and to celebrate the rising financial engineering game. Johnson's Great Society programs were costly at the same time as the Vietnam War costs were registered. Notice Greenspasm's comment on current expenses, meaning the Social Security payouts will be logged as federal deficits from here onward.
Greenspan stated, "The notion that we have a trust fund is nonsense. That trust fund has no meaning whatsoever except for the fact as an all private fund to benefit programs, if it runs out of money, you can only pay out in cash flows that come in. But the probability that will happen is not particularly high. Therefore the trust fund is a meaningless instrument that has no function. It is exactly the same thing as current expenses. Largely because we are not including what I would call contingent liabilities, that is the issue of, which is answered by a question. What is the probability that in today's environment JPMorgan would be allowed to default? The answer is zero or less. Now, that means that whole balance sheet is a contingent liability. Now to be sure, while it is contingent, there are no interest payments. But ultimately that overhangs the structure because we have committed in so many different ways to guarantee this, that, and the other thing. It is not only Fannie & Freddie but it is a whole series of financial institutions and, regrettably, it is also non-financial institutions." The nation once had a trust fund. It was gutted, just like a Third World nation would to cover costs that in no way fortified the nation or its systems.
## BOND MARKET PRIMARY FRACTURES
◄$$$ THE USDEPT TREASURY REPORTS THE FEDERAL DEBT HAS BEEN FROZEN AT $18,112,975,000,000 FOR 90 DAYS... THE DEBT LIMIT IS LIKELY TO BE RAISED SOON SO AS TO REMOVE SUSPICION OF DEFAULT... THE OFFICIAL DEBT ISSUANCE SUSPENSION IS A TOTAL RUSE, COMPLETE WITH ACCOUNTING COVERUP. $$$
The USDept Treasury must soon raise the USGovt debt limit, unless it wishes to arouse suspicion. The portion of the federal debt that is subject to a legal limit set by the USCongress closed on June 11th at $18,112,975,000,000, according to the latest Daily Treasury Statement. That makes 90 consecutive days the debt subject to the limit has been frozen at that exact amount. It stands frozen at about $25 million below the current legal debt limit of $18,113,000,080,959. See CNS (HERE). In the always suspicious Jackass eye, it means a few things. Evidence of massive accounting fraud to conceal the debt, which still rises each month. Evidence of debt covered by inflation, directly from the USFed monetary alchemy offices. Evidence of defaulted debt, where the last level froze like a death incident crystallized, covered up by lies deceit fraud.
◄$$$ THE UNITED STATES SHOWS A $2.8 TRILLION CORPORATE BOND BUBBLE, READY TO BURST... NOTHING HAS BEEN FIXED SINCE THE LEHMAN 2008 BUST... THE ENTIRE FINANCIAL SECTOR HAS BEEN INFLATED ALL OVER AGAIN... RISKS ARE PREVALENT, BUT THIS TIME NOT ISOLATED... THE RISK EXTENDS ACROSS THE ENTIRE BOND MARKET AND CURRENCY MARKET AND BANKING SYSTEM, A FLAGRANT VISIBLE SYSTEMIC RISK. $$$
The corporate leveraged bond bubble is huge and ugly. The assumption that the subprime problem ended in 2008 is baseless and entirely fallacious. If it indeed ended, it did so with a crash often described as resolution, but only for mortgages. No de-leveraging has occurred, only the prevailing myth, since debt has expanded considerably. Worse, debt has expanded in new places. The car and student loan portfolios have exploded exponentially, especially in subprime categories. However, a third credit bubble has exploded as well, in the corporate debt. The USFed clown economists look at corporate credit spreads being narrow and yields being low as a measure of its own success with QE. They miss the real risks in such errant perspectives. Junk bonds are not meant to yield 5% or 6% because there is absolutely no cushion to that price. It is the norm among the junk bond market assortment these months. A junk bond yielding 12%, the historical norm, offers some interest cushion in principle to the pricing. Such is the essence of junk bonds to begin with, the basic financial factor of risk/reward to be adequately compensated by pricing in much higher credit risk. The corporate bonds are the beneficiary of QE bond volume and liquidity. The entire fortifying position behind junk bonds at 5.5% is endless liquidity which artificially caps default rates at historical lows, self-feeding the upward trend in prices. The weakest companies receive financing along with the higher quality firms with no differentiation. The expected conclusion is that in the end, the corporate debt bubble will push defaults together into a single event rather than allow them to be interspersed more naturally through permitted evolution. No rebalance in pricing exists. A big event comes, with extreme pressure mounting.
The new subprime corporate bond bubble is not well recognized. It has resulted from liquidity excess and hidden regimes. The problem will arise on the table when the junk bond holders first look to sell, not buy. No market exists, just like with the USTreasury Bonds. The gate problems will show up with sellers. The redemption will gain attention since buyers will quickly vanish and depart the room, so as to avoid instant heavy loss. Leveraged loans and syndicated junk loans have dispersed through the banking and financial system in almost exactly the same manner as mortgage (MBS) pieces did in the last bubble. Nothing learned, just repeated. The United States is loaded with serial bubble blowers and debt abusers, counterfeiters of bonds, and capital killers. The next problem is at the doorstep. There is no real liquidity in the corporate bonds, from which to offer robust and broad systemic pricing in the event of even moderate distress. The volume is frightening. The leveraged loan gross in the QE3 period far outpaces even junk bonds, at $1.6 trillion.
The problem is actually much worse. Factor in the collateralized loan obligations (CLO) even though not junk or leveraged. They are indeed structured products with very low liquidity and open pricing, which are just as dispersed within the banking system like toxic nuggets. They lift the total corporate bond bubble potential basis up to some $2.8 trillion. This level is totally unknown within modern financial history. Any resolution has no past precedent to study. This is LaLa Land. A decaying USDollar and EuroDollar system is trying to hold it all together, with strain. If another financial crisis occurs, it will indeed look nothing like 2008 in its consistency, but the patterned breadth is already arranged. The collapse will be systemic, and not isolated to Lehman, Fannie Mae, and AIG. Think USTreasury Bonds and the entire financial foundation with currencies and big banks. The corporate bond bubble grew upon a premise of illusion far too similar to the housing bubble, that economic growth would be sustained and robust, and that liquidity would be unfailing and dependable. That is the common characteristic among all asset bubbles. This time is different though, since systemic. The broad lashing via derivatives will ensure the next crisis event will be system-wide and kill the USDollar. See Alhambra Partners (HERE).
◄$$$ THE GROUNDWORK IS BEING LAID FOR QE4, OTHERWISE KNOWN AS QE TO INFINITY CONTINUED... THE POSITIVES ARE FROM DISTORTIONS, LIKE A HIGH USDOLLAR AND LOW OIL PRICE... THE USFED MOUTHPIECES ARE CITING A VERY WEAK USECONOMY, CREATING THE REQUISITE POLITICAL JUSTIFICATION... THEY PRESIDE OVER SYSTEMIC RUIN. $$$
USFed Board member Lael Brainard claims the USEconomic slowdown could be more than temporary. She lays the political justification for a new QE4 round becoming applied. The dismal 1Q2105 performance of gross domestic product is pointed to as a signal for a more permanent slowdown, thus advising that the USFed needs to enter a phase of watchful waiting before raising rates. Expect an indefinite hold on a decision to hike rates that had seemed certain (by only true morons and system wonks) for this autumn. The Jackass has expected no rate hike for over three years, since doing so would wreck the entire derivative machinery that the USTBond market depends upon, and wreck the Wall Street bond carry trade that serves as their principal income source. Since neither factor is permitted in open discussion, the fake rate hike talk continues like mindless blather from time to time. Brainard cited weak economic recovery, risks associated with a Greek default, a slowdown in China, and continued problems in Europe, all as relevant factors. Notice the risk factors cited as mostly outside the United States boundaries. Additional data is needed, which can surely be doctored. However, the data is so bad, that no spin can make it look good. She indicated that given the strong USDollar, the low oil prices benefit, and other factors, the time for a rate hike may still be far off. Brainard has been on the USFed board for a year, and was designated as its mouthpiece. See Reuters (HERE).
Conclude no Fed hike as far as the eye can see, and a possible open QE4 window. It long ago became almost comical. The QE is causing the economic ruin by indirectly killing capital. No recovery is remotely possible with QE in place, and besides, the low rates (no reward to savers) act as a giant wet blanket on the USEconomy. The Jackass believes the USFed knows they are killing the system, but they are stuck in a very tight spot. They have no options, repeat the failed Japan experiment, but lie better to the adoring financial press. The only solution is return to the Gold Standard with introduction of a New Scheiss Dollar, then devalue the New Dollar by 50% but done in two steps with a firm lie after the first devaluation. A return to normal interest rates would add to the system's viability.
◄$$$ THE IMF ASKED THE US FEDERAL RESERVE TO DELAY A RATE RISE UNTIL 2016... THE IMF CLOWN CHIEF WISHES TO SEE MORE WAGE OR PRICE INFLATION, AS THOUGH THEY ARE POSITIVE SIGNS... THEY WARN OF DAMAGE FROM FURTHER USDOLLAR APPRECIATION... GLOBAL OPEN MOUTH PRACTICES ARE SETTING CONDITIONS FOR MONETARY POLICY... THE IMF AND USFED MANAGE OVER COLLAPSED FINANCIAL STRUCTURES AND CHARRED ECONOMIC FIELDS... THEY PRESIDE OVER RUIN AND ARE MASTERS OF FASCISM, AS THEY IMPOSE DEBT SLAVERY. $$$
The US-led financial comedy show extends to the Intl Monetary Fund, its near vacant and hollowed outpost. The official IMF word is that pockets of vulnerability in the USEconomy have emerged, with potential for causing serious trouble. Lagarde made the trivial suggestion of monthly central bank press conferences instead of six per year. She warned of negative global implications of a rate hike. The political interference against a rate hike is required, and has come from global sources. The very weak (officially declared) +0.7% GDP growth in 1Q2105 for the United States has caused alarm. Imagine the chaos if a minus 4% or minus 5% GDP were released, based more in reality for proper price inflation adjustments. The public would demand an end to QE and new Gold Standard. The looney tune IMF forecast for US GDP growth is for 3.0% in 2016, based on nothing at all but hope and pixie dust. They issue political marketing pamphlets more than economic forecasts. Even the other contaminated OECD office lowered their forecast to 2% for this year, where never has a negative forecast been issued. In order to achieve some credibility, Lagarde commented on the USDollar, saying the IMF believes it is moderately overvalued. She did not mention why, since open talk of dismantled Petro-Dollar derivatives is not permitted. Also, open talk of wrecked Emerging Market nation financial platforms is also not permitted.
The USD cancer feeds off the industrialized Eastern world, especially its weaker elements. Any further USD appreciation would be harmful in IMF thinking, like how it could quickly cause an EM debt default skein. Many nations have suffered a 20% to 30% sudden rise in their USD-based debts, which must be serviced in their weaker currencies.
The IMF is providing cover for Yellen not to raise interest rates. She actually expressed confidence for continued Greek Govt debt payments, without mentioning that the Euro Central Bank and German banks would make the payment for Athens. Like with the Second Half Recovery expressed repeatedly and blandly every year in the 2000 decade, we are told of a First Half Rate Hike next year. Close observers should note that in 2014, the talk was for a rate hike in 2015, like in the first half. Myth, deception, delusion, lies, threats, deceit, gimmicked data, these are the stuff from which USFed monetary policy are made, not reality or integrity or honesty, and surely not industrial might or economic strength. See Bloomberg (HERE) and BBC (HERE). Curiously, the Bank of America has called for another formal round of QE (as in QE4), but they warn of the consequences of more bond purchases. They do not offer specifics on risk, like killed capital continuation. See Financial Post (HERE).
◄$$$ BOND MARKET LIQUIDITY IS FAST EVAPORATING, CAUSING CONCERN FOR UNSTABLE MARKETS... RECOGNITION FINALLY HAS FINALLY COME TO THE FORE, AS WIDESPREAD WARNINGS ARE HEARD OF EXTREME BOND MARKET RISK... BLAME IS GIVEN TO THE USFED, RIGHTLY SO, SINCE IT KILLED THE BOND MARKET USING A QE BLUDGEON FOR TOO LONG. $$$
The official panic list has a new watch word, namely liquidity. The often heard dicussions center upon the fear (more like terrifying) when liquidity suddenly evaporates. German finance titan Max Weber has blamed central banks for the liquidity issues in the global bond markets. He argues that central banks have been buying vast amounts of assets and putting them on their balance sheets, not just government bonds but also corporate bonds. He is highly respected, unlike the minions who sit at the USFed Chair since Greenspan. Owing to how central banks employ a buy and hold strategry, they have essentially removed liquidity from the market. He did not mention the toxic balance sheets loaded with dodgy assets that cannot be sold, like USTreasury Bonds. The topic of liquidity is gaining attention in a big way. Fed Governor Daniel Tarullo stated that the liquidity believed firmly in place by investors in the bond markets was illusory during the last crisis. He thus implies a new crisis is here, due to absent bond market liquidity. By warning about a rise in bond market volatility, already seen in the last couple months, they are actually addressing the effects of marked declines in liquidity.
Weber called the lower liquidity the new normal, taking a page from Bond King Bill Gross. He warned that sufficient liquidity, if it exists, will enable orderly re-pricing. Indirectly Weber is warning of disorder in the bond markets with principal value shocks (bond prices). BlackRock CEO Larry Fink warned that the next crisis will probably be oriented toward lack of liquidity, his warning stated at the same Institute for Intl Finance summit. He cited the potential for frozen markets, causing a bond panic. Lastly, the EU's top regulator for insurers and pension funds warned that QE was triggering treacherous levels of volatility in the bond markets, from adverse liquidity effects. The EuroZone sovereign bonds have experienced a brutal rout. The recognition of bond market risk is becoming universal. See Wolf Street (HERE).
◄$$$ MASSIVE SHORTAGE OF USTREASURY PAPER HAS BEEN CITED, REPORTED, ACKNOWLEDGED... THE 10-YEAR NOTE REPO HAS PLUNGED TO MINUS 2.20%... THE BOND MARKET IS SHOWING OPEN SIGNS OF WRECKAGE... FITCH HAS WARNED OF A LIQUIDITY REPO RISK TO BIG BANKS, A SOURCE OF THEIR SHORT-TERM FUNDING... IRONICALLY, THE BANKS STAND VULNERABLE TO LOW RATES, WITH A DRIED UP REPO MARKET... THE RISK IS CENTERED ON MUCH BIGGER VOLUME OF BONDS, GREATER USAGE AS COLLATERAL IN REPO, LOW TYPICAL LIQUIDITY OF CORPORATE BONDS, AND COINCIDENT RISING RATES TO FORCE SUDDEN DEATH OF BANKS. $$$
The USTreasury Bond market is in big trouble. Liquidity is lacking. Buyers are scarce. After an early June auction of the 30-year bond, which went off without incident mainly because of a persistent short overhang, the strains remain evident. In other words, the bond auction went well, since so many players were covering their short positions created in earlier weeks and months. The outcome was a minus 0.35 basis point REPO rate. Furthermore, using SMRA data, the benchmark 10-year has been trading negative in REPO for almost all of 2015. One day later, the shortage went out of control. Ahead of its Monday settlement, no On The Run cash bond was to be found as all of them have been either removed from the REPO market, or have been shorted. The 10-year bond has more strain, a bigger dumping ground, a wider berth for USFed QE lavish volume. It featured a minus 220 bpt REPO, as in minus 2.20% amazingly, the tightest band since April. Its On The Run cash bond also shows great pressure. This negative REPO should be headlines on the Wall Street Journal, Barrons, the Investor's Business Daily, the New York Times Business section, and Business Week. Maybe even the National Inquirer. The bond market is broken!
The bond shortage in USTreasurys is massive. The USFed's QE dried it up. Only two previous comparable squeezes in the REPO market have been seen in recently history, one in April 2014. A parallel exists. When a comparable gold collateral shortage hit unprecedented levels, the LBMA decided to simply do away entirely with the Gold Forward Rate (GOFO) metric that measures physical gold scarcity. The concealment became a bigger story than the symptom. The REPO acts like a USTBond forward indicator. Sooner or later, the huge short of USTreasurys will be cleared out in violent fashion. The big lingering question is which parties are behind the massive short position, with most pointing fingers at hedge funds. They are smart guys and smell a rotten rigged market in search of resolution. A bond market rout, or a basic panicky event, would result in outsized hedge fund profits. The USGovt would likely target them for criminal activity, in opposing the USDept Treasury. There is past precedent for such targeting. If not hedge fund, it could be some minor or renegade central banks that have taken opposing positions to the USTBonds. Simply put, good collateral does not exist. See Zero Hedge (HERE) and Seeking Alpha (HERE).
An important source of short-term funding for banks remains vulnerable in the event of substantial bond market turmoil, Fitch Ratings has warned. Regulators have sought for five years to reduce bank reliance on short-term funding via repurchase agreements (REPO). The practice involves banks borrowing money from investors with bonds pledged as collateral. The banks repurchase the bonds at a later date and return cash to investors, usually money market funds. With the funds paying next to nothing, the repurchase market has shriveled up. Fitch reported that over 70% of corporate bond REPO transactions had a maturity of five days or less. The funding remains vulnerable. Ironically, the banks stand vulnerable to low rates, with a dried up REPO market. The pension funds, insurance firms, and army of retirees with their ample bank CD investments earn next to nothing, all in the same risk position.
The current era of low borrowing costs has spurred US companies to sell debt securities with near abandon. The outstanding corporate bond market totals about $8 trillion, up from $6 trillion at the end of 2009. The rating agency warned of increased turmoil in the REPO market as extension. The risk lies in investors suddenly choosing not to renew agreements with banks, requiring them to return cash when they might not have it in possession. The panic arises, since investors lending REPO money might be forced to sell collateral at a time when there were few natural buyers of bonds during a bout of sudden escalating volatility. A great many corporate bonds have extremely small volume on an ongoing basis. If the event occurs coincident with a rising rate situation, a panic can occur extended from the ailing REPO market. Fitch cited that 29% of bonds posted in REPO by banks in return for cash were issued by financial institutions, almost half issued by banks. Given their insolvent status, the risk of sudden death bank defaults is present. Corporate bonds used in tri-party repurchase arrangements, where Bank of New York Mellon and JPMorgan acted as clearing entities for the US-based REPO market, averaged $75 billion in 2014. This is a gigantic sideline market.
◄$$$ BANK OF JAPAN'S SATO WARNS OF DIMINISHING RETURNS FROM MONETARY EASING PROGRAM... ABSENCE OF FISCAL REFORM (SPENDING CUTS) BRINGS A CREDIBILITY RISK TO THE JAPANESE GOVT BONDS... SATO WARNINGS GO COUNTER TO BANK OF JAPAN GOVERNOR KURODA... THE BETTER REALITY IS THE RETURNS DIMINISHED ALMOST 20 YEARS AGO, SOON AFTER THE ORIGINAL QE IN 1991. $$$
Bank of Japan board member Takehiro Sato warned of diminishing returns and potential drawbacks of maintaining the bank's massive stimulus program for too long. He mentioned openly delays to spending reforms. The Japanese QE policy has run for 23 years, with no visible progress, yet repeated by the USFed. The Bank of Japan (BOJ) has urged steady progress in restoring Japan's fiscal health. They wish to exit the huge asset buying program, but have been stuck, to put it accurately, for over 20 years. The USFed failed to notice. The risk is for the bond market to judge thumbs down on Japanese fiscal discipline, and give up the ghost. Sato said, "Once market participants have concerns about (Japan's) fiscal discipline, controlling long-term interest rates will become difficult even for the BOJ. At some point, the BOJ may fail to draw enough bids in its bond buying operations. If this happens constantly, it may become difficult to achieve our pledge to increase base money at an annual pace of 80 trillion Yen ($650 billion)." The intermingling and incest between the BOJ and USFed has become extreme and obvious in the last several months, ever since the USGovt decided to confiscate the Japanese Govt pension funds valued at $1.2 trillion. Good boy, down boy, don't bark, commit harikiri quietly with the Fed, good boy!
Japan is saddled with the industrialized world's largest public debt. They delayed a sales tax hike last year. The government crafts a haphazard fiscal plan every odd month, with rapidly fading credibility. Premier Shinzo Abe (US tool, object of rigged election) has worried fiscal hawks by stressing that he will boost economic growth and spur tax revenues, rather than to order spending cuts. Fiscal reform has not been properly addressed, since borrowing costs are at artificially low levels with its massive endless QE bond purchases, seen as beneficial, except for the systemic breakdown context. Interest rates can never be permitted to rise. Ironically, like with the USTreasury market, financial institutions could quickly run out of debt paper to sell to the central bank. It should be noted that Sato contradicts the complacent BOJ Governor Haruhiko Kuroda, who identifies no risk or drawbacks from current monetary policy. See Reuters (HERE).
◄$$$ UKGOVT CREDIT RATING IS DOWNGRADED TO NEGATIVE BY S&P ON EU REFERENDUM RISK... BRITISH EXIT (BREXIT) RAISES RISK... A SECOND MAJOR RATINGS AGENCY HAS WARNED THAT BREXIT COULD HARM THE UK ECONOMY, FOLLOWING MOODYS... THE UK IS IN DANGER OF LOSING ITS CHERISHED AAA GRADE, AND OF SEEING SOME UKGILT DUMPING FROM BANK SYSTEM RESERVES ACROSS EUROPE. $$$
Standard & Poor has downgraded its outlook on the UK's sovereign rating to negative in a major blow. It continues to give the UK a prized AAA rating, but warned of a 1-in-3 risk of losing the AAA rating within the next two years. The S&P statement was crisp and clear. "We believe that the UKGovt decision to hold a referendum on EU membership by 2017 indicates that economic policymaking could be at risk. There are important risks to UK longer-term economic prospects, should it leave the EU. [The UK could be] more exposed to party politics than we had previously anticipated, similar to the situation in the United States when we lowered that sovereign rating in 2011. [British Exit] raises questions about the financing of the economy's large twin deficits and high short-term external debt." Any withdrawal from the EU could threaten the country's access to financing for its ballooning debt. The S&P decision followed warnings from ratings agency Moodys, which stated open concerns for the Pound Sterling to serve a role as a reserve currency. They refer to European dumping of USGilt bonds, causing a crisis within the banking system.
The fiscal deficit stands next to the alarming Current Account Deficit. The ratings agency S&P concluded that on its preferred measure of external liquidity, the UKGovt ranked weaker than any of the 129 sovereigns it conducts ratings for. Conclude the British nation is entering Third World territory, just like the United States. The large and growing CADeficit make the nation vulnerable to shocks. Foreign investors could become less willing to finance the debt if the country left the EU. Refer to the wealthy German banks. Standard & Poor concluded the UK's AAA rating might be returned to stable outlook if risk levels fell or if the debt fell below the 80% GDP mark. Paid hack morons at the watchdog Office for Budget Responsibility expect public sector debt to fall beneath 80% of GDP in the 2016-17 fiscal year. They base such forecasts on nothing tangible or credible. Dream on! See UK Telegraph (HERE).
## ECONOMIC DEEP DAMAGE
◄$$$ THE CHAPWOOD PRICE INFLATION INDEX FOR URBAN USECONOMY REVEALS A 21% DECLINE IN GDP SINCE YEAR 2011... CHAPWOOD CPI INDEX FROM 50 MAJOR US-CITIES REVEALS THAT OFFICIAL STATISTICS UNDERSTATE INFLATION BY 6% OR MORE EVERY YEAR SINCE 2011... THE REAL USECONOMY HAS FALLEN BY 21% IN THREE YEARS, WHILE PRICE INFLATION RAGES AT AROUND 10% ACROSS THE NATION. $$$
The Chapwood Index reflects the true cost of living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items that fill shelves and cover services in the 50 largest cities in the nation. Its statistical significance is solid and reliable. The Chapwood CPI shows price inflation to be consistently much higher than that indicated by the Consumer Price Index (CPI), and on par at around the 10% level with the statistics gathered by Shadow Govt Statistics. The table below shows this difference since 2011, and how it affects real GDP calculations.
The Chapwood number in the aggregate table is the simple arithmetic average of the 50 cities. The year-in, year-out 10% inflation rate is notable. Furthermore, Chapwood shows cumulative inflation rate in the CPI for the four years to be understated by almost 40%. Furthermore, usage of the Chapwood data instead of the GDP deflator results in real GDP having declined by a cumulative total of 21.4% over the four years. This is staggering, and confirms the long-held Jackass viewpoint of powerful ongoing recession. See Chapwood (HERE).
Several comments are elicited. The conformity to 500 items indicates wide breadth of coverage and thus relevant significance. Notice the big double digits for California, but also over 10% for most major cities like Chicago and New York and Boston. The website shows a great many other cities. No aggregate figures are provided with weights by population, which would be nice. The bigger the city, the higher the CPI, which means simple average is an estimate biased low from this urban measure. Another key point, probably Chapwood used unit product pricing techniques to account for lower volume product changes. The trick in the past few years has been to keep price constant while reducing volume of the package.
The Chapwood CPI confirms my personal gutt belief for 8% to 9% prevailing CPI. It has been in this range each year, every year. The great inflation deflator lie has been between 5% and 7% for adjusting nominal GDP, when falsely adjusting it for inflation. The GDP growth is confirmed to be around minus 4% to minus 6% annually, a powerful crippling recession which is better described as depression. The Chapwood basket is likely more than just food, like utilities and gasoline and tolls, with some unusual but common items in the typical budgets. It would be great to do a population weighted average, with even accounting for sales tax differences across states (different for each state). The result would probably only be a single digit different from Chapwood's following the decimal. The rural and deep suburban areas should not be much different really, but probably a little lower. The message is clear, that the USEconomy is in far worse condition, stuck in a powerful deep recession.
◄$$$ RETAIL SALES (EXCLUDING AUTOS) HAVE TURNED NEGATIVE FOR FIRST TIME SINCE 2009... CONDITIONS ARE IN DECLINE WORSE THAN THE POST-2000 TECH TELECOM BUST... ANOTHER SYSTEMIC EVENT LIKE LEHMAN IS COMING... THE USECONOMY IS COLLAPSING, EVIDENCE CLEAR. $$$
The damage extends from Sears to Gap, which plans to shutter 175 stores across North America. In addition, Gap will also cut about 250 jobs from its head office. Comparable sales for the Gap brand fell by 15% in April versus last year. The entire retail sector is careening down the hill. See BBC (HERE). Recall the article this spring when about 6000 retail store shutdowns were announced within the sector. The greater consumer economy has eaten its furniture, lost its homes, and withstands job losses.
◄$$$ SEARS APPEARS ON THE ROPES, READY FOR BANKRUPTCY, SIGNALED BY ITS PAINFUL STOCK DECLINE... THE RETAIL CHAIN HAS BEEN MISMANAGED, WHILE THE ECONOMIC DAMAGE DOUBLES THE EFFECT... THE FIRM IS A FINANCIAL ENGINEERING VICTIM, HAVING TURNED INTO A PROPERTY LIQUIDATION PLAY, A FAILURE EVEN THERE. $$$
A powerful swoon decline was seen in a recent week for Sears stock shares. It was a tough week for the retail sector, but Sears stood out as far and away the weakest in the group. The big expected shock is expected for the final Sears bankruptcy. It is inevitable and will occur soon. Some descriptive elements of Sears are appropriate to mention. Sears is the clearest example of early financial and corporate engineering gone haywire nuts insane. They were taken over by a Wall Street financial wonk, who gutted it with motive and from errors. It is a zombie corporation not less than ten years past when it should have died, with follow-on plowing under. In the old days, Sears provided tools, clothes, appliances, and general household goods for the middle class. The Jackass was a frequent shopper for Craftsman tools when young. They are no longer a leader in any aspect, not even appliances or tools.
The financial engineering and gaming that came about completely eliminated any serious attempt to truly remake the giant firm. Sears was on death row by the middle of the 1990 decade. The re-engineering only delayed its death sentence, thus enabling CEO Edward Lampert to shut down stores and to sell properties, while enjoying option call benefits on the bizarre property stock play. The joke in the 2000 decade was that Sears Holdings was a property firm with a bunch of broken stores attached. It is the victim of gaming by Wall Street shills. Its properties are worth something minor, but the stores likely are not. Big boxes and mall sites are being abandoned. Its sharp stock decline signals a possible bankruptcy event, which the Jackass has been anticipating for over a full year. See Chicago Tribune (HERE).
◄$$$ DISNEY PROFITS SOAR AFTER REPLACING US WORKERS WITH CHEAPER FOREIGN TEMPS... THE SECOND CHAPTER TO OUTSOURCING INVOLVES IMPORTING LABOR... THE LONG BETRAYAL CONTINUES. $$$
The Disney Corporation recently reported its most profitable year yet, but their executive decisions and business behavior are reprehensible. They forced out hundreds of employees from the magical kingdom and replaced them with temporary foreign workers. With profits up by 22%, to an impressive $7.5 billion, Disney has become the poster child for corporate betrayal of American workers. CEO Robert Iger gathered in $4.6 million in compensation last year. For around 250 of its employees, referred as cast members, they will no longer be required on the set, their dreams fizzled within the corporate culture soup. A report released by the New York Times in early June revealed that Disney laid off 250 of its employees in October and replaced them with Indian immigrants on temporary H1-B visas. To add insult to injury, the same employees were then required to train their own replacements over the next three months. Workers were left in disbelief, humiliation, and anger. Disney assured the employees would remain for the training period, by offering them a stay bonus valued at 10% contingent on continued satisfactory performance to the end. The liars in the marble offices justified the layoffs as part of a company wide reorganization, saying that they had created more jobs than eliminated.
The foreign workers are cheaper and have no bargaining power as non-citizens. As footnote, HCL was the sixth largest recipient of H1-B visas in 2013. Vineet Nayer, the company's CEO, once referred to US graduates as unemployable due to higher wage costs. Like with many other companies, Disney has used the H1-B visa program to hire cheap labor on a temporary basis rather than to give them a path to permanent immigration. See Sputnik (HERE) and Natural News (HERE).
Check the legal structure, as DisneyWorld is a sovereign nation operating inside the state of Florida and the US borders. As such DisneyWorld has its own police, legal statutes, court system, and more. An average of 700 children go missing each year in Disneyworld, never to be found, the disposed refuse from the Langley robot program for the half that are less gifted. See MK Ultra program. The program has been exposed by a few people who have escaped from its clutches, even written autobiographies. Joseph Mengele would be proud, the architect of the program and long-time Langley staff scientist. Walt Disney had no idea what he began in the 1940 decade by hiring the Defense Intelligence for news reels during movie shows for public war information benefit. The CIA took the contract as time passed.
◄$$$ CHINESE AUTHORITIES CANNOT CRANK UP THE GLOBAL ECONOMY AND DEMAND FOR CHINESE GOODS... THESE GOODS ARE SHIPPED BY CONTAINER TO THE REST OF THE WORLD... THE OFFICIAL CONTAINERIZED FREIGHT RATES FROM CHINA HAVE VIRTUALLY COLLAPSED. $$$
The China Containerized Freight Index (CCFI), operated by the Shanghai Shipping Exchange, shows deep decline. The shipping of container vessels which supply the gigantic archipelago of global retail centers is in dire distress. The quick conclusion is that the Global Economy shows strong recession, despite gimmicked data. China must take action on the trade and currency front for urgent reform, as in Gold Standard return, since the economies are in perilous condition. The index tracks spot and contractual rates for all Chinese container ports. It plunged 3.2% in a recent June week to a multi-year low of 862, down 20% from February. Regard the Chinese freight index as an echo to the Baltic Dry Index, also on its knees. The following are direct quotes from two anonymous container shipping executives stated, one from an Asian carrier, the other from a European carrier. They referred to the freight fiasco on the China-Europe route. "We are now shipping at an absolute loss. With the bunker adjustment factor surcharge at $300 for Asia-Europe, we are losing more than $50 per box." Then also in same rhyming tune. "Unless by a miracle demand grows, we are up for heavy losses in the next quarter and maybe the rest of 2015."
The trajectory of a terrible 3-month plunge cannot be hidden for its message of deep distress. For perspective, the index was set at 1000 on January 1998. Today, the index is 14% below where it was 17 years ago. The pricing dynamics in the spot market are slightly complicated. The parallel Shanghai index excludes the contractual rates. The SCFI reacts more quickly to changes in spot rates than the CCFI. It gives an unvarnished view of the immediate pricing environment for containerized freight from Shanghai to major destinations around the world. See Wolf Street (HERE).
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.