MONETARY CRISIS REPORT
CLIMAX OF FINANCIAL FRAUD
COMPREHENSIVE GUIDE

* Intro Monetary Fragments
* Central Banks Defend Against USFed
* London Schism Erupts
* USDollar as New Pariah
* Vatican Succession Turns Fascist


HAT TRICK LETTER
Issue #108
Jim Willie CB, 
“the Golden Jackass”
17 March 2013

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance." ~ James Madison (founding father of United States, nothing has changed in 250 years)

"May the big bankers be buried in ornate mausoleums alongside reams of their toxic bonds, with an epitaph attesting to their insufferable arrogance, written with gilded letters inscribed from paper gold, so that the testimony to their importance can fade quickly with time." ~ the Jackass

"Our government teaches the whole people by its example. If the government becomes the lawbreaker, it breeds contempt for law. It invites every man to become a law unto himself. It invites anarchy." ~ Louis D Brandeis (former Supreme Court Justice)

"Hold on to the Constitution, for if the American Constitution should fail, there will be anarchy throughout the world." ~ Senator Daniel Webster, 1851 (true datt)

"Whereas US monetary policy may be optimal for the United States alone, it is not necessarily optimal for the world. There is a conflict between the USDollar's domestic role and its international settlement role." ~ Zhou Xiaochuan (Peoples Bank of China Governor, November 2010, thus a split in the USDollar in progress)

"Currency Wars lead to capital controls, which leads to export controls, which leads to price controls, which leads to media controls, which leads to more authoritarian central state controls." ~ Gordon Long (Market Research & Analytics)

Editor Note: A critical event has taken place in Cyprus, with imposition of a depositor tax on the order of 7% to 10% on accounts held in banks. The island nation is home to much dirty money, sort of like the European Cayman version of old. Its economy is tiny, whose GDP is only 0.5% of the EuroZone. The details of the EUR 13 billion bailout by the Europeans and the great game are under review. The Cyprus banks are home to $18 billion in Russian oligarch accounts, and other Mafiya money, as well as some Italian Mafia money. Half of the nation's bank accounts are believed to be non-resident Russians. Expect some powerful domino effects, some overt, others hidden. The ATM machines across Southern Europe might be empty very soon, like next week. A bank run could quickly begin and spread. The vengeance by Russian President Putin could be manifested in powerful ways, the vulnerable point being the Gold market. A trigger event might have begun, with a bank run in Cyprus that could extend northward. The EU bankers contained and gutted Greece, now burning, but Cyprus is smaller and different with much greater associated risk. The story and analysis are to be included in the March Gold & Currency Report, which will follow this report later in the week.

◄$$$ See the Special Report entitled "JPMorgan as Monster Villain Cancer" for March. The report features an exposure of the colossus JPMorgan Chase as a financial crime organization, a criminal enterprise by most basic definitions which enjoys deep broad constant USGovt protection. It is deserving of RICO law seizure of assets and liquidation. The only problem is that it controls the financial arm of the USGovt and it serves as the official market expeditor for the US Federal Reserve. Its deeply rooted corruption and tight fisted control assures the United States Govt will eventually face a debt default and the USEconomy will experience a systemic failure, since the giant bank will defend the USDollar brand and its primary bus the USTreasury Bond until the bitter violent end. The giant bank is like a boa constrictor serpent that has squeezed the life out of the United States financial framework, preventing proper capital formation and economic activity, gutting its wealth, assuring a path for the nation to the Thrid World as consequence.

The litany of JPMorgan's extensive criminal violations, many of which stand on record as part of settlements and sanctions, is very impressive. A lengthy indictment is provided in a recent scathing report by Josh Rosner. Proved is a criminal enterprise as prima facie document toward criminal indictment. The big bank is ironically the largest beneficiary in settlements to the MF-Global crime scene, which JPMorgan perpetrated with Jon Corzine, former CEO of Goldman Sachs. The colossus bank pilfered private futures brokerage accounts, motivated by the huge call for silver delivery on contracts. Then the courts blessed a wrongful resolution after the MF-Global bankruptcy, contrary to standard bankruptcy law. A quick look at the past data trail reveals clear evidence of theft in the inventory shifts. JPMorgan has a Gold vault adjacent to the New York Fed in an umbilical cord. A double counting is practiced between the JPMorgan and New York Fed gold inventory. Think fractional banking squared, and quadruple accounting after lease.

In September 2008, Bruno Iksil (aka London Whale) at the Chief Investment Office of JPMorgan intentionally started the margin call avalanche that eventually crushed Lehman Brothers. Other banks followed in pulling the Lehman plug. The margin call was not warranted by the equity and leverage shown on the Lehman positions. The call was erroneous, but the big bank pushed its weight around. The meltdown was engineered by JPMorgan, and fully exploited before, during, and after the event. It was in my opinion part of plan to force grand nationalizations (Fannie Mae, AIG) in order to effectively cover up mortgage bond fraud and deep decay in a vaporous bank derivative foundation. The QE3 program announced by the USFed is intended to monetize the worst elements of its bond fraud, to clear the logjam, to attract foreign investors in the US property market, and to stage a real recovery in general. It will not succeed.

## INTRO MONETARY FRAGMENTS

◄$$$ STOCK VALUATION AS MEASURED BY PRICE-EARNINGS RATIO INDICATES WORSE THAN NOSEBLEED LEVEL. US-STOCKS ARE VERY EXPENSIVE. A BIG WARNING SIGNAL IS ISSUED, WHILE STOCKS BENEFIT FROM RIDICULOUSLY EASY MONEY AND PROPPED MARKETS. $$$

The US stock market is not pricing in a robust recovery, as is commonly purported. It reflects easy money from the USFed and vast channels connecting from the money flow from the Wall Street banks that control the Exchange Stabilization Fund. The fund has been in the news more recently, which puts a controlling arm in almost every major financial market in the world. Hope is not sustaining the US stocks. It is a perverse combination of easy money and desperate motive by the USGovt authorities to keep the public off guard. As long as their stock accounts, mutual funds, and other important stock investments are elevated, the public avoids the panic button. The only time any family member ever asked the Jackass for counsel in the last 10 years was when the major US stock indexes plunged in 2009. Of course, my given advice was ignored, and the member is 50% worse off today, with the contempt shown me perhaps softened by remorse. The following chart comes from an unlikely source in Morgan Stanley, which is responsible for the Interest Rate Swap infusion in late 2010 that produced the fiction of a flight to safety as the USTreasury Bond market enjoyed its biggest rally in a decade. Morgan Stanley remains a vital servant to the GSax-JPM machine that controls the United States banking and financial markets.

A warning signal has come in the form of new highs reached for stock prices. Every time over 45% of leading stocks have reached these valuation levels in the past 13 years, the market has sold off with ferocity. The similar extremes have been seen in 2002 and 2007, but few pay heed to the signals. When the heavily laced punch bowl is being accessed, all tend to celebrate, and naysayers are called idiots and party poopers. Those who warn wisely are rarely given credit during the painful aftermath in the forlorn US society. The five year rolling window smooths out the effect in the chart, but also adds a considerable amount of stability to the series, enough to emphasize the extreme level. See the Zero Hedge article (CLICK HERE).

◄$$$ THE DOW JONES INDUSTRIAL INDEX IS DOING POORLY RELATIVELY TO ITS PURCHASE POWER OF MAIN FOOD ITEMS AND GASOLINE. BUT SINCE JUNE 2000, THE STOCK INDEX HAS DONE BETTER THAN THE CONTROLLED GOLD AND CRUDE OIL PRICES. $$$

The public address propaganda systems would herald a wondrous stock market and newfound wealth and good tidings. Not so! Based on USDept Agriculture retail price data, at early March prices the Dow Jones Industrial Index will buy you 3332 pounds of beef in the supermarket. This sounds like a lot, but it is actually about 20% less than the 4046 pounds of beef the DJIA stock index would buy back in December 1999. Consider fruit. Based on the wholesale price of bananas, the Dow index currently buys you a truckload of 15.35 tons of the tropical fruit. But this is exactly the same amount of bananas the Dow would have bought back in February 2008, when the Dow was just 12,266. And it is a massive 60% drop from June 1999 when the Dow bought 38.51 tons of bananas. Witness the lost 2000 decade, with corresponding lost purchase power, as in the Banana Republic effect from hyper monetary inflation. The drought will continue to lift food prices in a broad manner. Economics professor Ernie Gross of Creighton University stated, "The drought will have a significant impact on prices, especially beef, pork, and chicken. Forecasts are for a 4% price increase in food this year, but that is on the low side if the drought continues. Food prices will likely be going up much more than the forecast." Food remains an excellent arbiter.

Turn to an important consumer energy item, gasoline. Today, the Dow will buy roughly 3812 gallons of standard unleaded gasoline in the United States stations. This is almost exactly the same as January 2012, just fifteen months ago, when the Dow was only 12,633. But to match the well publicized stock index high of 10,718 gallons set in March 1999, the Dow would need to almost triple from where it is at today. Gasoline has vastly outpaced the stock market in the last 13 years. Food and gasoline rule the day in public sentiment.

The gasoline price has risen almost 50 cents since the beginning of the year. Its move from $2.75/gallon on January 1st to $3.20/gallon now comes after a pop to $3.33/gallon, which captured attention. Consumers in Southern California are already burdened with $5.20 price per gallon, up more than 75 cents since December lows. Also, see the Before Its News article (CLICK HERE) which makes the case for absent wealth and more poverty. As footnote, the health care insurance premiums are fast rising, apart from the hubbub over ObamaCare. Rapid hikes continue to strain the budgets of US households and employers. Analysis of state trends in private employer based health insurance from 2003 to 2011 reveals that premiums for family coverage increased 62% across states. The rise was much faster than income for middle-income and low-income families. The contrast with price inflation and its factoring into the US stock indexes makes the stock gains very unimpressive.

Rough math relative to Gold price. At the start of the 2000 decade, the DJIA had reached the 10,000 mark. The Gold price was in the process of bottoming out a little below the $300/oz level. For rough calculation, figure the DJIA at 14,300 now and the Gold price at $1580/oz. The Dow has risen 43% but Gold has risen 427% since the exit from the tech telecom bubble in 2000 and its ravaging effects. For a more recent timespan, the Dow was at 10,000 in June 2010, at which time the Gold price was $1250/oz. So the same 43% stock rise would compare to a 26% rise in Gold. The effect of the USFed heavy duty monetary expansion (regardless of impressive QE name) is noticed in the stock market, while heavy suppression through naked futures contract shorting has kept the Gold price in check. Relative to the crude oil price, the DJIA fares the same as Gold. The June 2010 oil price was about $75/barrel. At $92/bbl today, it has risen 23%. So Gold and Black Gold have fared about equally in the last three years almost.

◄$$$ GLOBAL EVENTS HAVE PICKED UP IN PACE ON DIRE SIGNALS. NO CONCEIVABLE CASE CAN BE MADE THAT A RETURN TO NORMALCY HAS COME. NO NEW NORMAL HAS ANY STABLE BASIS. ALL OFFICIAL SOLUTIONS HAVE INCLUDED MORE DEBT AND MORE EASY MONEY, BOTH OF WHICH CAUSED THE CRISIS. THE SYSTEM HAS A GREAT MANY BREAKING POINTS, FROM A GREAT MANY CORNERS. $$$

For the last several years, an illusion of hope has been fueled by massive amounts of debt and bailout money. Both lethal avenues have served as the basis of the supposed solutions, none of which have solved anything. The great economic crisis of 2008 was not just an aberration. The crisis continues to build, the signals prominently on display. Waves of extreme troubles have yet to hit. The foundation of debt upon which the currencies stand appears increasingly like toilet paper to the respected analysts and observers. As each wave of the crisis is endured and given heretical treatment, the solutions presented have involved even more debt and even more money printing. Modern Keynesian applications are failing miserably. Each time, the problems fester until revealed to be even worse. Events unfolding in Europe and in the United States push the system toward the next major crisis moment. The following signals spell bigtime trouble. They should not appear at all, if solutions had solved anything. See the Economic Collapse article (CLICK HERE).

1)      According to TrimTab, corporate insider purchases of stock have hit an all-time low, and the ratio of corporate insider selling to corporate insider buying has now reached an astounding 50 to 1. The ratio has been over 50 for months running. The latest monthly data makes a monthly record.

2)      Personal income in the United States experienced its largest one month decline in 20 years. Personal income decreased by $505.5 billion in January, or 3.6%, compared to December (on a seasonally adjusted and annualized basis). That is the largest decline since January 1993, according to the USDept Commerce.

3)      Michigan Governor Rick Snyder intends to appoint an emergency financial manager to take care of Detroit's financial affairs. The emergency financial manager has inherent powers to eliminate union contracts, to sell municipal assets, and to restructure services. The resulting efforts to restore the city's finances might not prevent the city from declaring the largest bankruptcy in US history.

4)      The unemployment rate in Italy has reached 11.7%, representing a giant rise from 11.3% in the previous month. The nation Italy has the highest jobless rate seen in 21 years. The youth unemployment rate in Italy has hit a record high 38.7% rate.

5)      The unemployment rate in the EuroZone had hit a new record high of 11.9%, with the worst state being that of Greece. Its jobless rate is mired at 27%, expected to reach 30% by yearend. The youth unemployment rate in Greece was recently measured at a shocking 59.4%, which compares to Spain's youth unemployed.

6)      On a recent day, hundreds of thousands of protesters filled the streets of Lisbon and other Portuguese cities to protest austerity measures. The demonstration was the largest protest in the history of Portugal. The nation of Spain routinely has seen very large demonstrations in multiple cities.

7)      Bank deposits declined all over Europe during the month of January, according to Goldman Sachs.

8)      The deputy governor of the Peoples Bank of China (its central bank) declared that China is prepared for a currency war. Their gold vaults are flush. The vaults in the United States are filled with gold certificates, a very different animal. Despite the financial saber rattling, deputy governor Yi Gang attempted to avert confrontation and to abide by consensus agreements reached at the G-20 Meeting of finance ministers last month in Moscow.

9)      Italy is on the verge of economic collapse within political gridlock. Former comedian Beppe Grillo has stirred things up incredibly, enough to tip the balance of power, and to cause instability. Hand picked elitist Mario Monti is on the way out, after imposing property tax hikes to bail out the banks. Grillo has proposed that Italy should hold a referendum on the Euro. The vote could carry political weight, without being legally binding. He has stated that Italy's debt has grown so large that restructure through negotiation is the only option. He has cited a return to the former Lira currency as a viable alternative, if conditions do not change. Its EUR 2 trillion debt is gigantic, equal to 127% of gross domestic product (GDP), the highest in the EuroZone after Greece. Interest payments are fast approaching EUR 100 billion, enough to drown out ability to meet pension payments and to cover public employee wages.

10)  The USGovt sequester cuts have gone into effect, sure to slow the USEconomy already mired in deep recession for five straight years. The Pentagon is expected to be forced into adjusting for the $46 billion in budget cuts. Less war, fewer artillery shells and bullets, fewer drones, fewer civilian shooting galleries, less nation building, lower soldier prosthetic costs, lower Veterans Admin costs, better foreign relations.

◄$$$ THE BUDGET CUTS FROM SEQUESTER ARE NOT VERY LARGE. THEY ARE RELATIVELY SMALLER THAN REAGAN AND CLINTON ADMIN CUTS. AN ANNUAL $120 BILLION IN SPENDING CUTS IS A TRIFLE. HOWEVER, THE CUTS COME DURING A POWERFUL ECONOMIC RECESSION. THEY PUSH BACK THE TREND OF A LARGER GOVERNMENT SECTOR, A FAVORABLE FACTOR. THE ENTIRE HAGGLE HIGHLIGHTS THE BROKEN POLITICAL MACHINERY. $$$

The futile budget negotiations over the commonly called federal sequester cuts focus upon a total of $1.2 trillion over 10 years. The first round of cuts will be about $85 billion before September 30th, the end of this current fiscal year. Much larger spending cuts have occurred in the past. The Reagan I Admin in 1982 saw an agreement to cut spending by $280 billion over three years. In current dollars, those spending cuts were double what is faced now. Factor in false price inflation, and those cuts were three to four times larger. Later in the 1990 decade, the Clinton I Admin enjoyed the so-called peace dividend after the fall of the Soviet Union. The Pentagon budget was cut. However, although not large, the current cuts arrive at a very vulnerable time. The USEconomy cannot absorb the spending cuts. Both a recession condition is evident, but also a deeper dependence upon the government sector is well engrained across the nation. A tipping point is coming soon.

Bill Gale of the Urban-Brookings Tax Policy Center said, "Previous cuts took place in an economy that could absorb the cuts. The issue is not the size of the spending cuts, it is that we are doing spending cuts at all in this environment." He cites examples in Europe such as Greece and the United Kingdom, whose spending cuts during periods of economic distress caused the recession or aggravated recession. Dim bulbs like John Makin of the American Enterprise Institute disagree. He believes there is never a good time to make federal spending cuts. The more astute perspective is that government should always be reduced as an ongoing priority, since the government sector acts like a big backpack carried by the citizen. Makin attempts to sound intelligent, by saying "There is an intrinsic conflict between keeping the economy growing at a good solid pace and reducing the deficit." Of course, he served diligently as former consultant to the USDept Treasury, the Congressional Budget Office, and the Intl Monetary Fund. He loves big government and big bank appendages. The government never manages economies well. It impedes and smothers it, dragging it down and suffocating it. The inefficiency, waste, and corruption is mindboggling. No example in modern history exists for big government being effective.

Precedent is about to be made, if the sequestered cuts indeed bring about spending reduction for two straight years. The Office of Mgmt & Budget informs that federal outlays from one year to the next fell only once since 1955. Sharp budget cuts to many programs have rarely ever occurred. Nothing of the current magnitude has been attempted, so we are told. The size is not impressive for cuts, but rather the duration anticipated over a two year period, for the first time in half a century. The only part where agreement will be seen between bickering political factions is over the blame due to the other side. The USGovt political apparatus is totally broken. The only issues the two sides agree upon is tighter domestic security, continued war, wider controls over people (cataloguing), exclusion of themselves for ObamaCare, generous salary increases for themselves, and lavish staff budgets. See the MarketPlace article (CLICK HERE).

◄$$$ THE SAVINGS CLASS IS BEING WIPED OUT ON A GLOBAL SCALE. THE DIRECT RESULT IS POVERTY TO THE SAVERS LIKE PENSIONERS. THE INDIRECT RESULT IS A POWERFUL CONSEQUENCE FELT TO THE WORKING CAPITAL, BY PRESSURING IT TO RETIRE AND GO OFFLINE, EVEN TO BE LIQUIDATED. THE IMPACT TO THE GLOBAL ECONOMY IS ENORMOUS FROM AN ASSAULT ON CAPITAL ITSELF. THE POLITICAL OUTCOME IS FOR A RISE OF A HARSH FASCIST STATE, AND THE TWILIGHT OF CAPITALISM. $$$

History shows the current trend toward fascism does not end well. Hollowing out the saving class results from this situation, a grand discouragement nationally. Central bankers and their assigned supervisors in government have promoted policies that punish the prudent in favor of rescuing the irresponsible, even the most corrupt financial firms. This has happened before in world history, and the aftermath has always had grievous economic and social costs that indirectly wreck the capitalist structures. Harken back throughout history. Whatever country, the people who save their money and invest for their future are the ones that should be rewarded for building an economy, a society, and a nation on. They are the reliant saver class, being whittled down while the reckless rise with a voice and a hero, the president. My father has a wad of bank CDs which earn next to nothing, as his life savings are eroding without halt. He does not care, and displays his flag every Independence Day and Memorial Day. He is a good egg, and generous man.

Jim Rogers summarized the threat. "In America, many people saved their money, put it aside, and did not buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments. We are wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy. If you go back in history, you will see what happed to the Germans when they wiped out their savings class in the 1920s. It did not lead to good things down the road for Germany. It did not lead to good things for Italy, which did the same thing. There were plenty of countries where it wiped out the people who saved and invested for their future. It is usually a serious, political reaction, desperation in some cases, and looking for a savior. Easy answers is usually what happens when you destroy the people who save and invest for the future." The easiest answer is a heavy reliance upon the state, an erosion of liberties, greater controls, profound economic damage, and a rise of a criminal class in control of the state. The easily chosen hero is a fascist tyrant or a collectivist demagogue. See the Before Its News article with video interview (CLICK HERE).

◄$$$ A SECRET BAILOUT FOR BANK OF AMERICA WAS GIVEN BY THE USFED, WITH A RELATED SLAP ON THE WRIST. THE FINE WAS A TRIVIAL COST OF CONDUCTING THE BUSINESS IN MORTGAGE BOND FRAUD. THE TORTS WERE PUSHED UNDER THE RUG. $$$

A secret bailout deal was struck last year, one to eliminate the potential for messy lengthy damaging lawsuits. The events in question occurred around the height of the Lehman Brothers collapse. The sweet deal struck last year between the Federal Reserve Bank of New York and Bank of America let the big bank off the hook for $billions in legal claims in exchange for a mere $43 million settlement. If the fine resulted in more than one-tenth of a penny for fraudulent dollar profit, the Jackass would be amazed. According to the New York Times, court filings reveal that the New York Fed released Bank of America "from all legal claims arising from losses in some mortgage backed securities the Fed received when the government bailed out the American International Group in 2008." The NYTimes financial writer Gretchen Morgenson called the Fed actions remarkable and bewildering, but to those who follow the criminal syndicate activity, it is business as usual. The undisclosed settlement took place in July of 2012. Open press coverage and ample reporting of the deal would have caused a firestorm, but the deal was made in secrecy. The passage of time offered the bank cartel a chance to conceal their deeds and to push the tort procedures under the rug.

Former Cleveland Fed official Walker Todd agrees. He said, "As a public entity, the Federal Reserve needs to take its custody of public funds seriously enough to ask for more than merely nominal compensation, when it is giving up things of value to a bank holding company. If the central bank starts releasing binding legal claims for nominal compensation, it looks like just one more element of the secret or back-door bailout of the banking system." See the Breitbart article (CLICK HERE) whose journal continues despite the murder of founder Andrew Breitbart. It is not back-door bank bailout as much as selling justice, converting criminal activity into a business cost. A cheap cost at that, as seen with both Bank of America and Wachovia a few years ago.

◄$$$ A DEFINITION FOR FASCISM IS SOMETIMES REQUESTED, AND HOW IT RELATES TO NAZI. A BROAD SKETCH CAN BE GIVEN. THE FASCISTS DISRESPECT PEOPLE, BUT THE NAZIS EMBRACE GENOCIDE. THE FORMER SHOWS DISDAIN FOR DEVIATION, WHILE THE LATTER WILL KILL AS PENALTY FOR THE DEVIATION. BOTH GROUPS TEND TOWARD WAR AS A BUSINESS SEGMENT, RIPE WITH FRAUD. $$$

Fascism has several perceived descriptions, but the best begin with the most simple characteristics. They are widely recognized. My favorite is the basic: MERGER OF STATE AND BIG CORPORATIONS. The merger enables insider trading, investments ahead of public policy, and almost complete permission for financial fraud provided membership in the banker class is indicated. Small and medium banks need not apply for the privilege. The behavioral tendency of the merger is to promote war and its business. The result is a grotesque inefficiency from dominance of the corrupt big corporations, and internal economic destruction from devotion to war. The majority of people have no idea what it is. It is not defined by persecution of targeted convenient ethnic groups like during World War II. That is rather a symptom. In my travels in the Eastern United States between 2002 and 2007, the question was posed playfully to 40 friends and acquaintances. Only one person answered correctly on what fascism was. Most pointed to death camps, which is not a definition, but rather a manifestation. When the FEMA Camps inside the US turn highly active, including the many converted USMilitary bases, the word fascism will re-enter the public lexicon. But it should be used along with a nastier term.

The actions of nazis (national socialists) is more sinister, perverse, and violent. They are overcome by a preoccupation with border controls and the movement of money. They are obsessed with containment of people and money, and identification like passports, bank records, biometric registries, and even personal chips. They impose horrendously inefficient systems on the national roadways of people, commerce, and money flow. Nazis are obsessed with cataloguing the monitoring people like cattle and livestock, as they take sociopathic pleasure in culling the herds and killing people. They use their financial controls to steal enormous sums of money. They display aggressive behavior toward enemies, even allies, and alienate both. They impose rules on thought, where disagreement is regarded as insurrection. Diversity is not part of their accepted norms. Their psyche could be the epitome of human anal retentives. Their usage of war to seize wealth in foreign banks is a tell-tale signal. See Libya and its liberation of 144 tons of Qaddafi gold bars, when will remain in London forever. Nazis convert war into a business segment, and promote war to expand business and profit. They tend to push policy toward corruption of the military establishment for profit potential. They tend to develop and expand hidden research activity in genetics and viruses, for genocide and food distribution. They love dehumanizing other people, and eventually killing in general. They appear to thrive on attempts to industrialize the murder process. My worst fear is harvesting of human organs in the FEMA Camps and incineration of corpses which the public will be told were badly infested. No law enforcement would stop them.

The amazing trait exhibited widely in the United States is the gross inability to recognize a nazi out of uniform, even by veteran soldiers. Nowadays they typically wear a banker suit. When World War II ended, the nazi military was defeated, but its partnered banker elite merely shifted operations to Switzerland, London, and New York. Publicity like for Werner von Braun distracted from the real story, since the rocket scientist had no political motives. The bankers did. They infiltrated the fledgling US security organization. By the time the Vietnam War came about, they had planted important roots. Their camouflaged field marshall was the elder ex-president, who is roughly 20 to 40 times wealthier than Carlos Slim or Bill Gates or Warren Buffet. That wealth is derived from narcotics, in which the CIA has a global monopoly. With the massive dominant wealth, a syndicate attempts to control the world by buying up assets and doling cash for political influence, even foreign military partnerships. They are rumored to have bought the Vatican wealth in 2007 through 2009 with narco money. In Colombia, the Medellin cartel produces the presidents.

◄$$$ PAUL CRAIG ROBERTS IS A BRAVE MAN, PERHAPS FOLLOWING THE FOOTSTEPS OF CHALMERS JOHNSON, A BOLD MAN WHO ONCE SPOKE IN PLAIN TERMS ABOUT THE DECLINE OF THE NATION. ROBERTS MAKES REGULAR COMMENTS ON THE ADVENT OF THE AMERICAN POLICE STATE. $$$

Paul Craig Roberts was former under-Secretary Treasury in Reagan Admin. He has written books, made speeches, written public articles, and offered quotable quotes on numerous occasions. He recently wrote, "What if the 911 Commission consisted of experts instead of politicians with their fingers in the wind, and what if the commissioners had too much integrity to write a report dictated by the executive branch? The unlikely and untenable failure of every institution of the American national security state would have been investigated, and the collapse of WTC 7 Building at free-fall speed would have had to have been acknowledged in the report and explained. A totally different story would have emerged, a story unlikely to have locked Americans into permanent war in an expanding number of countries and into a domestic police state. Americans might still be a free people, and American liberty might still be a beacon to the world. On the other hand, a finding of government complicity in 911 could have threatened powerful interests and resulted in violent conflict and martial law." He described a Coup d'Etat of the USGovt, one hardly hidden, just not recognized or acknowledged.

## CENTRAL BANKS DEFEND AGAINST USFED

◄$$$ THE QUICKENING IS IN PROGRESS. TWO YEARS AGO, THE TIME BETWEEN CRITICAL DAMAGING EVENTS WAS A FEW MONTHS. SINCE THE US-PRESIDENTIAL ELECTION CONFIRMED FASCISM & SOCIALISM IN A TIGHT BOND, THE PACE OF EXTREME EVENTS HAS RADICALLY QUICKENED. THE CRISIS IS FAST REACHING A CONCLUSION PHASE. EUROPE WILL MOST LIKELY LIGHT THE FUSE. $$$

When the MF-Global event struck in late November 2011, the time between critical events that disrupted the global financial system was a few months. The pace of extreme events is quickening. The extreme nature of current events is alarming, causing tremendous new stress in a manner that cannot be accommodated. Consider the recent list of extreme events. Like the USFed announces every month their extension of 0% forever (Exit Strategy talk), like $1.2 trillion doled out by the USFed to European banks in January alone (endless life support), like foreign nations from Japan to Ireland to Canada refusing US$100 bills at banks (defiance to USFed), like the Germans demanding repatriation of their official gold account (Allocated Accounts scandal), like the Italians electing a comedian to halt the property tax hikes that bail out banks (Monti booted as prime minister), like the London banks sponsoring a Chinese Yuan Swap Facility (cow-tow), like the attack on Mali in Africa conducted by France and United States to wrest gold & uranium for German repayment (colonialists still), like the shutdown of Mongolian copper & gold mine by Rio Tinto (resource nationalism), like the new Chinese loan to complete the Iran-Pakistani gas pipeline (defiance against US), like the raids larger and bolder of the GLD inventory (prevent COMEX default).

There is more. Like the USFed preparing for QE5 (rather QE to Infinity), like the major central banks losing credibility while engaged in open currency war (civil war within CB franchise), like the US facing a fiscal cliff which forces a quantum leap in job cuts (austerity with recession alert), like the Japanese ratcheting up the competitive currency devaluations (only USTBond buyer), like the Swiss managing their Euro-Franc peg but suffering losses in Japanese & British Bonds (damage in CB warfare), like the Russians hosting a G-20 Meeting to coordinate the alternative to US$-based trade (USDollar rejection plans), like the emergence of Turkey and soon India as gold trade finance intermediary (gold trade finance), like the Iranian sanctions coming to a conclusion (US acquiescence retreat). Whew! Take a breath!

All these events have occurred just since the new year began less than two months ago. The pace of extreme events is quickening. Extreme events have become the norm, putting tremendous additional stress on the system. The global system of managed finance cannot succeed, since too complex. A series of climax events is coming very soon. The changes will be rapid and breath-taking. Vast wealth is moving East, along with it great power. Look for a seemingly minor bank failure to cause a ripple effect of deeper damage. Larger banks will be directly affected, since tied with commitments from their roles such as counter-party or intermediary or corresponding bank functions. Look for the trigger event to come from Europe. The European continent is much more diverse, much less centralized, much less under tight control, and slightly bigger than the United States actually. Europe has numerous locations teetering to the extreme like Italy, Spain, and France. The nation Greece was controlled and largely destroyed, but the trio in Southern Europe are each too big to contain. The political process combined with the popular factor will cause a breakdown in Europe. Its contagion will strike London and New York, as well as the major banks of Europe.

◄$$$ THE USFED INJECTED A RECORD $100 BILLION CASH INTO FOREIGN BANKS OPERATING IN THE UNITED STATES IN THE FIRST WEEK OF MARCH. THE EUROPEAN BANKS HAVE TAKEN BENEFIT OF THE GREAT MAJORITY OF USFED AID, NOT THE US-BANKS. THE USFED IS ACTING LIKE A SECOND EURO CENTRAL BANK. THE IMPLICATION IS CLEAR, EUROPE IS THE RISK CENTER FOR SYSTEMIC BREAKDOWN, AND ITALY IN PARTICULAR, WITH SPAIN TIED CLOSELY, AND FRANCE THE WEAK SISTER AMONG THE ALLEGEDLY STRONG. $$$

The USFed, as reported last month, has been injecting a gigantic amount of cheap discounted swapped funds across the Atlantic, intended to rescue the multitude of dead European banks. In the first week of March, the USFed added another $100 billion, but to US subsidiaries to European banks. This came atop the $237 billion in the entire month of January. Following the disruptive Italian elections in the final week of February, when Monti could not muster even 10% of the vote, the USFed quickly disbursed a hefty $99 billion in excess reserves into foreign banks. The proof lies in their official H.8 statement. The USFed is actually favoring the European banks. It is acting like a distribution source for Europe, more than a US central bank. The take-away note: their actions highlight how Europe is laying out the triggers for the financial collapse. Of the $1.884 trillion in fungible cash stored in various domestic and international US banks, only half at $949 billion is actually allocated to US banks. The other half, or $936 billion, is located in fungible cash accounts of foreign (mostly European) commercial banks operating in the United States. Of the $250 billion in new reserves created under QE3 and QE4 plus add-ons, almost the entirety has gone to foreign banks, while the simpleton mealy-mouth US press praises the vigilant action as stimulus to the USEconomy. Most anchors, most analysts, most bond experts, are qualified educated imbeciles of finance.

My theory is simple. The US banks are doing two things to sustain their liquidity requirements. They are conducting massive USTreasury Bond carry trade, and funneling narco funds in massive money laundering operations. The big European banks are at a disadvantage by comparison. A bizarre conflicting stroke has occurred. The USFed has created new reserves in order to justify its monetization of USGovt debt. But the funds have largely gone to European banks. The result is much worse than an unsterlized event. It is a hyper inflationary bait & switch, leaving the US vulnerable to impact craters. The Bernanke Team must feel supremely confident in the vast Interest Rate Swap machinery to produce sufficient phony demand for the USTBonds, for to keep them stable in the New Managed Finance. The other lingering risk is that these banks can all use the cash to finance black holes like with their derivative books, or to finance leverage Southern Europe Govt Bonds, or to cover past reckless casino actions in the FOREX currency market. No supervision exists for these indescribably destructive bankers. They do as they wish in the garages of the world.

Focus should be squarely on Italy, whose big banks hold a record EUR 200 billion in their own government bonds. They are nearly worthless, suspended only by the Draghi EuroCB. The Italian banks are very likely monetizing Italian bank bonds from the wide Draghi window, tied to the USFed window. The same is likely the case for Spanish banks. The propaganda extends from the sucess of the recent Spanish and Italian bond auction in the first week of March. The powerful Bundesbank has been very quietly, suspiciously quiet, about the indirect USFed funnel to monetize the PIIGS pen of bond toxic slop paper. They utterly hate the monetary inflation practiced, but must enjoy how the German load is relieved on the periphery. An upcoming stress test might be the US reaction to the USFed sending interest payments to the European banks on their vast US reserves, to reach $1.5 trillion by year end. It could cause a backlash. See the Zero Hedge article from February (CLICK HERE) and from March (CLICK HERE).

◄$$$ CENTRAL BANKERS HAVE EXHAUSTED THE ILLUSORY BENEFITS OF MONETARY EASING. THEY HAVE EARNED AN ESCALATING TRADE WAR. THE CURRENCY WAR IS A LATE STAGE DEVELOPMENT IN THE MONETARY SYSTEM COLLAPSE, WITH AMPLIFIED TRADE WAR ITS SOUR FRUIT. THE RESULT OF DESPERATE WRONG-HEADED CENTRAL BANK POLICY OVER FOUR YEARS WILL BE A DECLINE IN GLOBAL TRADE DURING A FIERCE RECESSIONARY SPIRAL IN THE MAJOR ECONOMIES. $$$

The failures of QE programs are evident in the consequent currency war that they spawned. The other name for trade war when the FOREX is used as a weapon is Competing Currency War. These are not issues over copyright, tariff, or import quotas, but exchange rate grenades being lobbed. Trade protectionism looms next. The many rounds of bond monetization (called Quantitative Easing to impress to madding crowd) have resulted in higher cost structures, slower economies, and lower employment. In response, the nations competing for exports have turned to competitive currency devaluation in open warfare. The result is lower global trade. Hence QE has brought higher costs and less trade, both wretched outcomes and a testimony to central bank failure.

The central banks have exhausted what they claim to be QE benefits. There were none, except to suspend dead banks and prolong government deficits. The US Federal Reserve is secretly worried sick about the treacherous task of extricating itself from a dependence upon bond monetization. Witness an unsettling twist, with global implications. The USFed cannot extricate itself, any more than Japan did since 1990. It is a dead end, with a zero bound, precisely as the Jackass described since 2009. Next is the ratchet upward in nasty trade war, the currency war, the cannon holes in reserve balance sheets, the USDollar shun, hostility toward the inflationist offenders, diversification away from USTreasury Bonds, and finally the death of the USDollar. The refusal to liquidate the big ruined US banks will result in the the global rejection of the USDollar and the plunge of the United States into the Third World, with a magnificent theater of violence. Consider it Mother Nature's economic vengeance. The growing, almost total reliance, upon the production of phony new money spells great danger. The experts and mavens in the majority see no problem with paying for the nation's bills without work. No work, no value. It is just a more chic brand of toilet paper. The denomination per sheet should be $100.

◄$$$ THE USFED WILL BE LEFT WITH AN EXIT PLAN THAT IS MORE LIKE A RELEASE OF THE INFLATION DAM, AND A SURRENDER TO PRICE INFLATION RATHER THAN FACE ITS OWN RUIN. WHILE THE USFED FINDS ITSELF IN A POLICY BIND WITH NO EXIT, IT HAS CAUSED THE CURRENCY WAR. $$$

It bears repeating. The refusal to liquidate the big ruined US banks will result in the the global rejection of the USDollar and the plunge of the United States into the Third World, with a magnificent theater of violence. Out of its own camp came a US Monetary Policy Forum research paper, published by the USFed. It warned that the the central bank's capital base could be wiped out several times over, once borrowing costs start to rise toward normal levels. It was co-written by former Fed governor Frederic Mishkin, a former Bernanke ranking captain. Escalating losses on its $2.9 trillion in balance sheet holdings could occur, and soon. Recall that the USFed bought the worst quality of impaired bonds. Its toxic vat portfolio rises by $85 billion each month under QE3 as they buy artificially low yield USTBonds (sanctioned bubble asset). The longer it goes on, the greater the risk. The story line being told is that an exit will become much harder by 2014, when in fact the exit is impossible. Since the US Fed stretched the average maturity of its bond holdings to 11 years, it is acutely vulnerable. The foreign banks seeking an exit of their own demanded a conversion to short-term USTBills. Hence the USFed sits on a global table with a stack of risky long-term bonds from a nation soon to be thrust into the Third World, the United States itself. Recall that the longer the bond maturity, the bigger the losses when yields rise. The Bank of Japan has kept their average maturity below three years, much more prudently managed, much less arrogant.

The Mishkin paper wrote, "Sovereign risk remains alive and well in the US, and could intensify. Feedback effects of higher rates can lead to a more dramatic deterioration in long-run debt sustainability in the US than is captured in official estimates. We see at least a risk that the EuroZone is on a path to become more like Argentina (which of course is why German central bankers are most concerned). The provinces overspend and are always bailed out by the central government. The result is a permanent fiscal imbalance for the central government, which then results in monetization of the debt by the central bank and high inflation." The paper criticized the Euro Central Bank for its purchase of sovereign PIIGS bonds, which amounts to monetization of public debt in countries shut out of global markets. It disputes EuroCB head Mario Draghi, who claims the contrary.

In the United States, the Mishkin duo fully anticipates the USFed will be totally unable to unwind their bond portfolio, and thus will be forced to suffer great losses. The pressure to continue holding toxic and underwater bonds will be fierce. There is no proper moment to unwind, a myth in my view. The duo expects the USFed to cave in, to release the dogs of domestic price inflation rather than to endure catastrophic losses for the privately owned central bank. They will throw in the towel on inflation, the start of grandiose systemic debt monetization. If bond vigilantes are given liberal rein, they would be brutal and price in a very different climate for the US, one that features the Third World. But the JPMorgan team has been dutifully managing the derivative machinery, thus maintaining 2% and 3% bonds, when they merit 7% and 9% on their fundamentals. Therefore, the global trade vigilantes will dole out justice to the United States, as they reject the USDollar and render the USTreasury Bond to be junk bonds.

Scott Minerd from Guggenheim Partners has his own theory toward solution. He argues that the Fed is already trapped, and might be forced to permit a rise in the Gold price to $10,000 per ounce. Doing so might ensure its own bullion reserves would cover mounting liabilities. But doing so would mean forfeiting its gold in order to avoid its own ruin. The new piece to the ugly rotten picture is that these worries are surfacing openly in USFed central bank circles. Such evaluations and deliberations occur against a backdrop of USEconomic recession, even after a 5% to 6% lie in the growth calculus. They occur at a time of impressive but not overly large budget cuts, the sequestered spending cuts. Even in Europe, a second year of outright contraction in 2013 is expected by the elves in Brussels. They talk foolishly about economic escape velocity from recession, when trapped in a monetary corner that assures continued economic decline from their own monetary policy. The accepted solution causes a rise in the entire cost structure in a climate of falling global trade. The only rising velocity is in money creation, as it passes through the USFed window to the Euro Central Bank. It has not been converted into rising Money Velocity in either the US or Europe.

Meanwhile, the triple puts from the last eight months have merely lifted asset markets with a phony paper arm push. No new cycle of world growth has been ignited, far from it. The Bernanke Fed QE3 & QE4, the Mario Draghi Club Med bond rescue, and the Beijing credit blitz represent three oversized fire hoses of liquidity, nothing more since they are not accompanied by bank liquidation, nor serious tax and regulatory reform, and certainly not capital layouts (business formation). The suggested austerity programs made the deficits worse, exactly as claimed by the Jackass. The US will next be given the same austerity failure lesson, greater deficits from the sequestered austerity cuts. Greece, Portugal, and Spain are the examples of austerity's failure, which resulted in vicious downward spirals. Nothing was learned. No valid solutions are being attempted. No valid solutions will be attempted. No bank power center of political control will permit a valid solution to be attempted. See the UK Telegraph article (CLICK HERE).

◄$$$ THE USFED HAS BEGUN TO RECEIVE SOME CRITICISM, VEILED THOUGH IT MIGHT BE, FROM FRIENDLY CORNERS. MOHAMED EL-ERIAN SPOKE AT A STANFORD UNIVERSITY AUDITORIUM, LAYING BLAME FOR THE COMPETING CURRENCY WAR ON THE USFED DOORSTEP. $$$

The PIMCO co-CEO routinely defends the monetary policy actions, while keeping one foot carefully placed in the pond of criticism. He openly stated that the USFed with its artificially low interest rate and massive ongoing bond monetization initiatives has pushed down the USDollar from the persistent debasement. As a result, nations across the world have been forced to respond, or else lose ground in the critical export trade. Nations like Japan, South Korea, Brazil, and Mexico each have acted in defense. The war is on. He implied that with government fiscal policy lacking core effectiveness, the burden has shifted to the central banks for policy response. He is essentially laying blame on both political and banking leaders. He stated, "Central banks are carrying the majority of the policy burden, not by choice but by perceived necessity. In 2010, Chairman Bernanke pivoted and started using imperfect tools, leaving the balance of benefits and costs unclear. It is the equivalent of a pharmaceutical company that has no choice but to put medication on the market, even though the medication has not been clinically tested. That is why the Fed talks a lot about the costs." The QE program is highly destructive, which is what El-Erian is insinuating between the lines. Maybe soon he will declare that they are together wrecking the Western capitalist structure from prolonged 0% rates. See the Bloomberg article (CLICK HERE).

◄$$$ NO NEW BRETTON WOODS SHOULD BE EXPECTED IN A CONSENSUS PACT. INSTEAD, A SOLUTION WILL COME FROM OUTSIDE THE COLLEGIATE RANKS OF CENTRAL BANKS. THEY HAVE GIVEN THE WORLD CURRENCY WAR BUT WEIGHED DOWN BY PROFOUND HIDDEN CORRUPTION. THEY WILL DEFEND THEIR PAPER FIAT CURRENCY SYSTEM TO THE END. THEY INSIST ON CONTROL AND PRIVILEGE OF FRAUD. THE UNITED STATES WAS THE PRIMARY VIOLATOR OF THE GOLD STANDARD, AND EXPLOITED THE RESERVE AND TRADE STATUS FOR THE USDOLLAR. SINCE 2008, NO LEADERSHIP HAS COME TO CREATE A NEW BRETTON WOODS ACCORD (GOLD STANDARD) BECAUSE THE UNITED STATES ENJOYS THE FRAUD AND COUNTERFEIT, CLUTCHING ITS CREDIT CARD. $$$

History shows that the principal nations of Asia, namely China, Japan, and South Korea, traditionally agree on very little over the decades. They are entirely different culturally, technologically, commercially, and more. Yet the Asian giants have found unity in the belief that their economic independence and controls (sovereignty) stand hostage to destructive monetary policy deviations coming from the US Federal Reserve. They wish to maintain control over capital, both inflows and outflows. They wish to control the direction and fate of their own economies. A key revelatory statement came from Japanese Prime Minister Shinzo Abe in December. He said, "Central banks around the world are printing money. America is the prime example. If it goes on like this, the Yen will inevitably strengthen. It is vital to resist this." In September during a meeting in Beijing, Bank of Korea Governor Kim Choong-soo said, "Korea and China need to make concerted efforts to minimize the negative spillover effect arising from the monetary policies of advanced nations," an indirect reference to the United States.

Harken back to criticism from China. Back in November 2010, Peoples Bank of China Governor Zhou Xiaochuan explained what he regarded to be the root of the problem. He stated, "Whereas US monetary policy may be optimal for the United States alone, it is not necessarily optimal for the world. There is a conflict between the USDollar's domestic role and its international settlement role." He made a specific excellent conclusion, that this conflict is a leftover defect of the Bretton Woods system created in 1971. Actually the problem is the effect from its abandonment. Witness the climax conclusion of a wrecked monetary and financial system, 42 years after the USGovt unilaterally violated the Gold Standard and introduced a cockeyed inequitable system based on a debt foundation that enables fraud and counterfeit by the syndicates that control government finance. The Jackass will go so far as to claim that trashing the Bretton Woods Accord opened the door with a gilded invitation card for crime syndicates to attack, capture, and exploit the government monetary function (the grand prize). It took them 20 years to pilfer Fort Knox for its gold bullion in the United States. In 20 years afterwards, the world fights the collapse of the US banking system, treated with evermore paper confetti and arrogance laced with privilege and crime.

Walk back in history. A preliminary accord in 1944 before Bretton Woods created a convention among bankers, which declared the USDollar as unique surrogate for Gold as the foundation of the global monetary system. By 1961, when nine key European countries satisfied the requirement that their currencies be convertible into dollars, the balanced system was already coming under strain, owing to a deteriorating US trade deficit. The accord forced a corresponding loss of gold reserves. The accord collapsed 10 years later when President Nixon suspended the USDollar convertibility into gold in a bold move of unilateral basis. No other nation was party to the decision. Seen as for national security, it was made in order to prevent the depletion of America's gold stock. But by default and by convention, the USDollar remained the world's dominant reserve currency for banking systems and the dominant currency for trade settlement. Zhou objected to the continued reserve and trade usage despite the frequency and increasing intensity of financial crises after 1971 in his words. In the violent aftermath of the 2008  financial crisis, leading analysts and many world leaders called for a new Bretton Woods conference to address the global financial imbalances. No movement followed. The imbalances had become both dangerous and endemic, sufficient to threaten global stability and usher in war as an option. The biggest imbalances have been created by the United States and China, which together account for over 30% of world Gross Domestic Product.

In recent years, the originator to spark the currency war has been the United States with its QE bond monetization. Printed money to purchase sovereign bonds works to destroy the USDollar, and in the process lift the foreign currencies. Foreign nations are merely defending themselves. The USFed is not operating on behalf of global best interests in the monetary growth. It is rescuing corrupt US banks that shot themselves in the chest and face with mortgage bond abuse, while out the back door conducting expansive narcotics money laundering games.

◄$$$ THE BIGGEST ASSET BUBBLE IN HISTORY IS PREPARING  TO POP. THE USTREASURY BONDS HAVE ALL THE EARMARKS OF A DISASTER WAITING TO HAPPEN, A CRUSHING BUST. THE ONLY TWO DEVICES AT WORK TO PROP THE BUBBLE ARE THE USFED PRINTING PRESS AND THE JPMORGAN INTEREST RATE DERIVATIVE LEVERED CROWBAR. THE BUST COMES WHEN THE USDOLLAR ISOLATION IS STARK, WHEN THE USGOVT DEBT DEFAULT IS OBVIOUS, WHEN THE CREDITORS BOLDLY ORGANIZE, WHEN THEY DELIVER THE GLOBAL SHUN. THE GLOBAL PLAYERS OBJECT TO THE DEBASEMENT OF THEIR VALUED BANK RESERVES BY THE USFED AS VILLAIN. $$$

The USTBond asset bubble bust will be like no other asset collapse and breakdown in the past. Jeff Berwick of the Dollar Vigilante makes the case for the USTreasury Bond as the paragon of asset bubbles, which coincides with the Jackass claim that the USTBond is the last asset bubble before the USGovt debt default. The US has been heavily reliant on asset bubbles for 30 years, since the great offshore movement of manufacturing and the associated lost income. The USTBond market is the longest unbroken bull market known to the modern world of finance. For more than 30 years it has trended higher in nominal USDollar terms. The principal buyer of these special sovereign bonds, undeserving of AAA rating, has been the USFed for over two years. They were not bought from money drawn out of production. Bernanke did it by pressing a button, a fiat order for the debt security whose value is driven by fiat declaration.

At the current rate, with the USFed buying up all newly issued USGovt debt in 2013, before long the central bank will own more than China, Japan, the oil exporters and Caribbean (UK proxy) bank centers combined. No alarm bells have rung so far, indicating concern that illicit electronic machinery has been gobbling up the bond that serves as the primary bank reserve vehicle held widely among the global banking system. The United States is unwittingly setting itself up for the isolation shun, in response to the undermine to foreign reserves held in global banks. THIS POINT IS CRITICAL TO THE NEXT CRISIS. The issuance of debt is following the exact path of a bubble. The money printing is the unmistakable distinguishing feature of a bubble, its ultimate cause. Berwick points out that no more direct form of this model exists than the central bank printing money to buy the debt securities right out of the gate. In fact, last week news came that the USFed had monetized the upcoming auction of debt supply before it was auctioned, arranging the CUSIP numbers.

Jean-Paul Rodrigue is a Canadian analyst author noted for his Bubble Model publicized in 2008. He charting four phases of a bubble. According to the model, while the so-called smart money purchased during the earlier stealth phase, institutional investors begin to buy during the take off. Following media coverage, the general public enters the investment scheme, leading to steep rise in prices as enthusiasm and then greed kick in. Delusion precedes the peak. Rodrigue probably could not factor into a general bubble model the queer element of Weimar machinery that dispense electric bull chits, used to purchase USTBonds.

Berwick and Jeremy Martin took aim at the entire USGovt debt as plotted by the Heritage Foundation. They imposed the bubble model atop the chart. The result is impressive, almost an exact bubble model fit. Recall that the Ponzi scheme requires an unending supply of funds, even if from artificial demand. The bubble begins to lose its reputation as a safe play, or even as a good investment. Then the cables and pylons fall to the wayside. The USFed can maintain its Weimar-like fund spigot to purchase as almost exclusive buyer. It might not be enough, if sellers ram the gates, or if the derivative flying buttresses fail (Interest Rate Swap derivative contracts). The JPMorgan whales in waiting can maintain their derivative machinery to create artificial demand, the fake spigot to purchase also, in an important supporting role. But the giant bank's reinforcement staff might be distracted by legal defense for fraud, for regulatory violations, even for keeping their activity secret. It might not be enough, if sellers ram the gates. See the GoldSeek article by Jeff Berwick (CLICK HERE). A footnote, the hitch first selloff in the late 1970 decade would have matched better the bubble model if the USTBond principal value were plotted. But the growth of the bubble itself requires usage of volume data. The USGovt is already in technical default. See the Before Its News video (CLICK HERE).

◄$$$ PLANS MOVE FORWARD TO CONFISCATE THE PRIVATE PENSION FUNDS. THEIR TOTAL VALUE IS AT $19.4 TRILLION. THEY REPRESENT LOW HANGING FRUIT TO THE INSOLVENT DESPERATE USGOVT WITH GREEDY HANDS. THE PROCESS IS IN MOTION. THE RULES ARE BEING FORMULATED, AND THE SEIZURE APPEARS CERTAIN. INTEREST YIELD WILL BE TRIFLING, JUST LIKE BANK CERTIFICATES. THE FIRST STEP WILL BE TO RE-DIRECT THE PENSION FUND CONTRIBUTIONS, AND FORCE THEM TO COVER THE INCREMENTAL USGOVT DEBT. $$$

The USGovt wants your retirement accounts. They makes the rules. They write the tax laws. They draft the budget resolutions. Your money is within their easy reach. Behind the scenes, the groundwork is being laid for federal government confiscation of tax deferred retirement accounts such as IRAs. A small battle is on, which might be significant. Richard Cordray has been serving as acting head of the Consumer Financial Protection Bureau, when he offered the Consumer Financial Protection Bureau (CFPB) could take a role in the management of the $19.4 trillion in retirement savings. Within days, Obama renominated Cordray as CFPB director, done by a recess appointment, before his term was to expire at end 2013. The US Court of Appeals has challenged the president. Little known is that the working charter for the CFPB is part of the Financial Regulatory Bill often called the Dodd-Frank Bill, an obscene piece of legislation. The consumer bureau is actually insulated from oversight by either the President or Congress, its budget not even subject to control. The bureau appears to be a Politburo council reporting only to the emperor in office.

The next step might be announcement of Special USTreasury Bonds that cover the standard fare USTBonds and the USAgency Mortgage Bonds. The various IRA, 401k, and Keough funds would serve as the starter block for forced investment on new contributions, with older investments left alone. The pension funds would finance the USGovt deficit, by force fiat. Another concept would be to eliminate the tax deferral status for private retirement accounts altogether, to confiscate the balance of those accounts, to give each worker a an annual contribution, to slap a mandatory savings tax on every worker, and to guarantee a pittance rate of return on the newly titled Guaranteed Retirement Accounts (GRA). Whatever the road taken, the objective would be to cover the annual USGovt debt of approximate $1 trillion in size. Eventually, the rest of private pensions, not just the new income contributions, would be subject to confiscation in the same type of vehicles, either to cover the USGovt cumulative debt or to redeem the US Federal Reserve balance sheet.

Ongoing shortfalls such as Social Security and Medicare urgently pressure the politicians under banker control to take action in seizures. The bankers sense a global revolt against the USTBonds if the United States Govt does not cover its debt. US citizen savings would be forced into either Special USTBonds or the GRAs. No more familiar packages of bond and stock mutual funds with personal options to choose from at the workplace. Just vehicles to cover the USTreasury debt, for the sake of national security. The USGovt is taking action, step by step, toward the nationalization of private retirement account assets. Welcome Socialism! The options left for the USGovt leadership crew are to increase income taxes, to increase payroll taxes, to cut benefits in entitlements broadly (Social Security, USGovt & USMilitary pensions, disability, etc), or to raid private pension funds of many stripes. The budget cuts by the USGovt will be very small, thus grossly inadequate. The decision will be easy, since the citizens have no voice. Democracy vanished long ago. By virtue of taking advantage of the tax-deferred nature of the pension fund setup, the citizens forfeited control of the funds themselves. See the American Thinker article (CLICK HERE).

As footnote, bear in mind that any stock owned as part of a private pension fund actually consists of a security within a brokerage account. Over 99% of accounts are owned by the DTCC. The perceived owners (stock account owners) are merely the beneficiaries. While this might appear to be a technicality, the next stage for pension fund confiscation might rely upon this important detail. The owner on record is the powerful over-arching layer of banker predation, the Depository Trust & Clearing Corp. The DTCC is owned by the US Federal Reserve itself. They own almost everything, by original design, set in motion while the nation was fast asleep in 1913.

## LONDON SCHISM ERUPTS

◄$$$ A STRANGE CONFLICT HAS ARISEN, WHERE THE USGOVT USES THE UKGILT IN A PARASITIC MANNER FOR SUSTAINING THE USTBOND IMAGE AS SAFE HAVEN. THE VULNERABLE BRITISH POUND IS BEING EXPLOITED BY THE WALL STREET BARONS. THE BPOUND HAS FEW NATURAL BUYERS. THE USDOLLAR WILL VANISH AFTER RISING, THE LAST TO BE KILLED ON THE FIAT ALTER OF FALSE GODS. $$$


Consider a theory that the British Pound currency is being sacrificed to support the USTreasury Bond framework. The objective is to maintain low US bond yields. The spread trade was cited last month, where the USTBond is bought against a sold UKGilt, with leverage. Its perverse feature is the highlighted by harm rendered to the UK banking system, loaded down with bonds. The financial colony seeks to undermine its lord, in order to buy time and sustain an image of USTBond safe haven during the final stages of the great storm. Perhaps some motive comes from the US anger watching the London bankers court the Chinese with a recently announced Yuan swap facility. The New York banksters might regard the free flow of Yuan currency as treason to the USDollar. A late stage characteristic of the competing currency war is hidden conflict between seeming allies. We are there.

China is actually behind the newfound Anglo-American conflict. The big UK customers are set to purchase crude oil in Chinese Yuan, using the swap facility. In return, China opens the door to dump a boatload of USTreasury Bonds, finding some relief before the great debt default. Also, China wins a hand of partial control over the United Kingdom itself, which is the strongest, oldest, and biggest US ally! Witness a fracture in the Petro-Dollar defacto standard from a London source and pressure point.

The critical events are piling up, each major threats to the US Empire. As a result, no safe haven bid exists for the USTreasury Bond tower, or the USDollar vehicle in its denomination. 1) The Shanghai exchange will start trading during London and New York hours, in direct challenge, an offset to corrupt control of important items that serve as currency proxies. The Anglo privilege of setting price exclusively will be lost. 2) The Shanghai exchange will trade the crude oil contract, in direct challenge to the sacrosanct Petro-Dollar fortress. The foundation of the USDollar will be shaken and undermined. 3) China is well along in construction of a massive petro-chemical complex with refineries in Saudi Arabia. Extending from commitment and partnership, it is only natural that the Saudi Kingdom will be flooded by Yuan currency. Once again, the US stresses military and control, while China pursues trade and flows. 4) Lastly, the pipeline connecting Iran to Pakistan is to become a reality, all in time. It could actually settle transactions in Yuan, perhaps Gold bullion.

The Boyz in New York are creating the illusion of a safe haven for the USTBond, but they do so by leaning on the British Pound via the UKGilt. The spread trade favoring the USTBond is insidious and pernicious. Eventually the United Kingdom will regard the United States as an enemy on the financial front, further motivating London to take new bold steps in securing the City as a viable financial center in the next chapter. Expect London to lose ground though in Gold trade intermediary roles to both Turkey and India. Fortifying the USTreasury framework by destroying the British Pound will indeed buy time, but ruin the alliance. The collective actions to come will further isolate the United States as it plunges into the Third World.

Unlike the USDollar used widely still in global trade settlement (principally for crude oil), the British Pound has few natural buyers, since the UKEconomy is in no way a vast exporter. Even its military industrial complex pales by comparison to the larger and more advanced sprawling American complex arsenal. The leading pillars to attract foreign fund flow into the BPound Sterling are communications giant Vodafone, energy giant British Petroleum, the banking giants Barclays and HSBC, the Virgin conglomerate, along with a few retailers. In point of fact, in the last year the British Pound held its valuation largely because the Royal Bank of Scotland sold assets globally, bringing home the GBP bacon. The structural support for GBP currency is gone, in part due to the LIBOR scandal, but also from natural corrosion from the bank bond impairment process. The UK is a net energy importer and hence must pay in USDollars, which further leads to outflows. Many are the motives for their Chinese courtship. It will isolate the United States further.

Last month, it was explained that the USDollar would appear to be holding value during the heated currency war episodes that have turned more hostile. The Euro currency sold off, as expected here, thus lifting the US DX currency index which has a nutty overweight in Euro. The major currencies are circling the capacious global toilet, lifting the USD turd. The parasitic attacks are there to see, if viewed with proper focus. The USDollar will fall last, not because of any safe haven associated with buying it. Rather, the USDollar will die last simply because the Boyz in New York will fight till the end in the Wall Street bunker. It is what proud nazis do. They will use every possible mechanism as weapon. They will distort any market to their favor. They will protect the USTreasury Bond framework by destroying the British Pound and to a certain extent the Japanese Yen. They will wage more trade war in protective measures and tariffs. The objects of attack in foreign countries will actually win some export advantage from a lower exchange rate, but they will lose position in bank capital as their domestic interest rates rise and native bonds lose value.

The unfolding of events is happening in difficult ways to forecast, but the US DX index is being lifted on the back of allied currencies, made to look good. If not for the boot on the British and Japanese necks, the American lapels sporting battle honors would be lower. The crowd is watching the US DX index, so far not buying gold yet in tremendous volume since the USDollar appears resilient. The reasons why, the internal factors, will be watched and noticed closely very soon. As footnote, observe the near trickle of volume in the financial markets, like stocks, bonds, and crude oil, even gold. The volume is of no significance in the markets. The traders are shuffling paper among themselves. They are playing paper musical chairs, on a scale much grander than the high frequency New York Stock Exchange charade, since several major markets are involved. Most players are dying a slow death, due to lack of volume and volatility. The financial centers are suffering from lower profits, soon to furlough workers en masse, including London. One can conclude that something very big is coming our way, ugly fierce and nasty.

◄$$$ LONDON HAS BEGUN ITS THRUST TO CAPTURE THE CHINESE YUAN TRADE. IN EUROPE IT WILL COMPETE AGAINST ZURICH AND PARIS. THE BRITISH INVASION ON THE YUAN FRONT HAS HIT CENTER STAGE. LONDON WANTS A PIECE OF THE NEW YUAN BUSINESS THAT IS SURE TO GROW. IN DOING SO, THE CITY PITS ITSELF AGAINST THE UNITED STATES. NOT A TRIVIAL ITEM, THE LONDON TIME ZONE NICELY STRADDLES ASIA AND THE AMERICAN HEMISPHERE, OFFERING AN ADVANTAGE. $$$

With the announced Yuan Swap Facility announced in February, London has gained a first mover advantage in the upcoming Yuan race. The Americans will not participate, and thus will give an added push to their own isolation. The US is steeped in a trade war with China that expands by the month. London is racing against Paris and Zurich to become the center for Yuan trading in Europe. The City can aid the Chinese strategic plans. Without question, a main agenda item and high priority for China is to take its currency global. They wish to be shown respect, even if some management problems come with the expansion in usage. The Bank of England has captured the inside position as the first nation in the Group of Seven to sign a currency swap agreement with the Peoples Bank of China. The deal is expected to allow the UK central bank to supply as much as CNY 400 billion (=US$64 bn) to banks, matching a similar arrangement with Hong Kong. In the FOREX currency market, London is without peer. The City boasts a 200% rise in Yuan currency volume traded in the last four years. It hopes to expand ties with the emerging giant in China, whose bond sales denominated in Yuan completed in foreign lands have surged 11-fold to CNY 174 billion since 2009. Some bankers regard the Chinese entry into the financial markets to be the most exciting event in decades, causing a revolution of sorts.

Usage of the Yuan Swap Facility enable importers to access the required currency for trade with a host of Chinese exporting companies. Thus trade is made easier, which provides fees to the Bank of England and widens the berth of exporters engaged in trade from Asian base. As a result, Yuan currency shortages would fade away, a safety net would be firmed, and confidence in the Yuan would grow. Numerous other bilateral swap facilities, essentially barter platforms, have served the Chinese trade since 2009, since which time the Chinese trade has grown to 9% in Yuan terms. Four years ago, it was under 1% in volume. The HSBC analyst staff expects one third of China's cross-border trade by 2015 (a quadruple) will be settled in Yuan, lifting its status as a currency to the top three in global trading, next to the USDollar and Euro. The Yuan-based bond trade is also growing leaps and bounds, enjoying an 11-fold jettison in under four years. Yuan-based corporate bonds sold by the likes of McDonalds and Caterpillar rose to CNY 174 billion in 2012 from CNY 16 billion in 2009, according to Bloomberg data. Standard Chartered and HSBC are leaders in the niche, having underwritten 36% of these Dim Sum bond sales in 2012.

In the capital trade market, London is a leader in the West. Britain accounts for 46% of global currency trading known as FOREX, according to a Bank for Intl Settlements 2010 study. London dwarfs the US whose share at 24%, with France at 7% and Singapore at 3%. In the Yuan trade outside of China, the king is Hong Kong due to its natural proximity and new step-father relationship. The offshore Yuan market is comprised 73% for Hong Kong, 5.2% for mainland China, and only 3% for the UK, according to a SWIFT research study. The also-rans were 2.6% for Singapore, 1.9% for the US, and 1.4% for France. Still obstacles exist, from within the Beijing leadership. The Yuan will become a dominant currency when its government allows it to be freely traded. The Peoples Bank of China limits the trading range on its exchange rate. The daily fluctuation of the Yuan is limited to 1% up or down by the central bank. The SWIFT study cited some reasons for London advantages. Its easier recruiting, friendly legal framework, and sophisticated trading systems all shine. But another advantage is significant. Its Zulu time zone overlaps markets in Asia and the Americas both, whereas the US is twelve hours off from most of Asia, out of contact.

Global trade remains the dominant province of the USDollar. The Yuan is gaining ground, but from a position far back in the pack, despite the growing industrial presence for China itself. Fully 85% of transactions across the world are conducted in US$, Euro, BPound, and Yen. The Yuan transactions shot up 171% in January versus the same month in 2012. Although a quick surge, the currency still accounts for less than 1% of global payments. The PBOC governor Zhou Xiaochuan promised at a conference in Beijing in November that the bank has designated convertibility of Yuan a high priority in its FOREX overhaul policy plans. The premier wishes to expand foreign investment, which requires wider deeper convertibility. Like exchange of Yuan readily for Aussie Dollars or Mexican Pesos or Swiss Francs or Indian Rupees or the many African brands.

The list of bilateral swap accords using Swap Facilities with China is growing. Since December 2008, China has signed currency swap contracts totaling CNY 2.4 trillion since with 19 countries and regions, including Hong Kong, Australia, Turkey, Brazil, and South Korea. The swap facility with the United Kingdom is the latest entry, which will assist in trade across the EuroZone. The offshore Chinese currency market has the potential to be extremely large. London has made an important commitment, but by making the deal, it flicks the US nose, bewilders the US leadership, undercuts the USDollar as trade settlement standard, and further isolates the United States. In all honestly, the Jackass was shocked at the London Yuan swap facility news. It was a direct assault against the USDollar. But then again, the JPMorgan demons have set up some large new spread trades, selling the UKGilt bond and buying the USTreasury Bond. The spread tears at the UK-US bonded union that spans centuries, and serves as a devious assault.

The race is on. Other financial centers are lining up to compete. Do not expect New York City to participate, as its actions are fully focused on intense masturbatory fraud with free hands and license, the activity steeped in myopia. New York and WashingtonDC will win isolation for being a pariah nation, as the Big Apple suffers from a tragic decline in volume. The Paris and Zurich bankers are scrambling to participate in the Yuan trade, like London. They might succeed in small ways. My firm belief is that the United States will burn all of its allies and relationships, all of them, as it defends the toxic USDollar to the end, to its death, to its grave. The new FACTA bank rules have angered every single allied nation.

◄$$$ IN AN ACT OF DESPERATION, GOLDMAN SACHS IS LEADING AN INITIATIVE TO INVESTIGATE THE LONDON BANKERS FOR GOLD PRICE FIX CORRUPTION. THEY ARE ON THEIR HEELS DEFENSIVELY FOR THE L.I.B.O.R. PRICE FIXING (HAS NOT GONE AWAY). THE MOVE IS A FEINT TO WORK TOWARD WRECKING THE BRITISH POUND IN ORDER TO SUPPORT THE TEETERING FRAGILE USTREASURY BOND FRAMEWORK. THESE ARE FINAL STAGE ACTS. THE NEW YORK BANKERS ARE RESORTING TO DEVIOUS MEANS FROM WHICH TO BUY TIME BEFORE THEIR DOWNFALL. $$$

Some truly stupid theater is underway. The subservient clownish Commodity Futures Trading Commission has decided to put a straight face and investigate gold market price rigging in London. It was the proving grounds for Robert Rubin before lending his craft to the Clinton Admin, emptying the US nation of its gold treasure, a skilled theft indeed with a London hand in the yankee vaults. The CFTC lapdog, under the guiding hand of Goldman Sachs preppy Gary Gensler, is more aptly commissioned to prevent violations from coming to light, to push them under the rug, and to permit a reform to business in the pits corrupted beyond recognition. The last big theatrical stunt by the CFTC was to investigate whether the price of silver was manipulated during trading hours, a project that spanned three years and produced a one-page report. Their strategy was more to challenge boredom and apathy from passage of interminable time than to take any substantive action. Their inquiry fizzled and evaporated, blown away from the sun and snows. In the echos of the LIBOR scandal, the august vigilant crew at the CFTC will next examine the gold market in London, to see if price manipulation is among the shady activities originating from London. If not an outright investigation, the intrepid crew might carry on conversations as to whether the daily London gold and silver price fixing is open to manipulation. See the Zero Hedge article (CLICK HERE).

After conferring with a solid London source, a conclusion was arrived at. The inquiry by the CFTC is probably not about Gold. This is Goldman Sachs out to destroy London as a financial center, to undermine the integrity of the other banks in The City, but more importantly to render weaker the British Pound currency in order to support the USTreasury Bond framework. It is an act of desperation on the part of GSax after their massive setback in Italy and the EuroZone where the revered titan among investment banks suffered massive losses. The GSax losses are in the multiple $billions, more likely tens of $billions, to be measured more clearly after the inexorable grand European bust. Lord Blankfeinn (aka Blankcheck) is firing blanks on a devious duplicitous nefarious mission. The conflict behind the curtains between the New York bankers and the London bankers is slowly coming out into the open. It started with LIBOR charges. The United States is desperately attempting to buy time by attacking London, taking the high ground, when they are incorrigeable criminals. The counter-attack so far in London includes a courtship with China. My stern doubts linger than the US officials are attempting to deliver the message of Cease & Desist as per interventions and manipulations in the London Gold price fix. The US will be further isolated from this intensifying conflict with its best friend and criminal partner. London wants a piece of the action from the next chapter. The US will descend into the Third World, left out in the cold.

## USDOLLAR AS NEW PARIAH

◄$$$ ISOLATION TACTIC POSSIBLY TO CALL OLD US$100 BILLS HOME TO THE UNITED STATES, AND TO REPLACE FOREIGN US$100 BILLS WITH IDENTIFIABLE TYPE. THE FACTS AND EVIDENCE ARE SLOW IN FORMING. A POTENTIAL DOUBLE EVENT COULD SOON OCCUR, WITH MORE RECOGNIZED NON-USDOLLAR TRADE SETTLEMENT AND A DOMESTIC USDOLLAR DEVALUATION. THE CONSEQUENCE OF HYPER MONETARY INFLATION AND USGOVT DEFICIT IS SOON TO SUFFER A GRAND IMPACT. IT WILL BE A SHUN. $$$

New US$100 bills have appeared with a yellowish back. They are spreading across the world, but have not yet been spotted inside the United States. One is left to wonder why. At the same time, the various centers have begun to refuse the $hundreds, like in Tokyo Japan and Dublin Ireland and Toronto Canada. Perhaps other locations refuse the standard $hundreds also, but evidence is slow in coming to my desk. The formal refusal stated in all three places has been the prevalence of counterfeited US$100 bills in high quantity. Bear in mind that in 2007, the USDept Treasury announced the theft of at least one perfect US$100 plate for production usage. The widely held suspicion was that the CIA stole it. The Hat Trick Letter reported the story, complete with data on the makeup of bills. The exactly correct paper versus cotton concentration was indicated on the Langley versions, thus raising the agency involvement. My conclusion was that a mountain of seemingly official $hundreds would proliferate. The security agencies, like the big banks (and church) are immune from prosecution. Therefore, they behave and evolve toward a mammoth crime syndicate.

A theory has floated which makes sense. It goes like this. A new standard US$100 bill is being created with a yellowish obverse, but for foreign usage, circulation, and bank deposits. The distribution of the yellow $hundreds has come at a time when several locations are actively refusing deposits of older standard $hundreds. The impact would be to hasten the return of old US$100s back home to the USA, calling them home. If foreign banks refuse the old hundreds, then they will find their way back to US locations, where actively swapped. The motive could be postulated, that a division is soon to come, perhaps later this year, perhaps in the near future. The change would be a break, where foreign USDollars would be more directly identified and distinguished from domestic USDollars. Later, a formal domestic USD devaluation would take place, as the Hat Trick Letter has warned.

My belief is that the wider non-USD trade settlement, whether in Chinese Yuan or Gold bullion, would hasten the break and division, leading to the 30% to 50% USD devaluation. The two events on trade settlement and domestic devaluation would be simultaneous. When officially rejected, the USD will be devalued in order to be accepted at all. The consequence of egregious and highly destructive central bank monetary behavior, fully blessed by the banking leaders and given acquiescence by the USGovt itself, is soon to result in severe shocking and extremely disruptive events. Like a 30% USDollar devaluation, but perhaps only after the other FOREX currencies find an alternative anchor. On the other side, USDollar accounts will be fully honored in banks located outside the United States. Many centers like Switzerland, Hong Kong, Panama, and Singapore are ripe with USD accounts, which will preserve value without loss. That is my expectation, as explained by an excellent source.

The Jackass could not confirm the plan to call US$100 bills home with a couple sources. One simply stated that in a region spanning from the Persian Gulf to East Africa, they are only dealing in Euros and UAE Dinars as cash currencies. The USDollar is fast losing its position as the exclusive cash currency very quickly. The formal trade settlement operates at the upper echelons. The street and black market operates at the lower echelons. The USD will find fewer takers on both echelons.

◄$$$ THE HUGE NORWAY FUND HAS CUT OFF ALL CURRENCIES AFFECTED BY THE STAIN OF OFFICIALLY ENDORSED MONETARY INFLATION. THE WISDOM WILL SURELY RISK RETRIBUTION. NORWAY HAS TURNED EASTWARD IN THE INVESTMENT VEHICLES FOR THEIR GIANT SOVEREIGN WEALTH FUND THAT HAS BEEN SUPPLIED BY NORTH SEA OIL PROFITS FOR THREE DECADES. $$$

As preface, recall the ugly violent incident that struck Oslo in 2011, which my sources indicated were the actions by British and US intelligence. As is their wont, they painted a patsy who will not be permitted to defend himself. Yet another fabled lone gunman at work in a series of 20 such fabled lone gunmen that do their dirty work. The stupid story was intended for public consumption, the standard deception within propaganda. He might soon die in prison. Two years ago, the resentful angry Anglo bankers attempted to apply pressure on the $713 billion Norway sovereign wealth fund to remain in London banks. The same modus operandi for the pernicous nefarious Anglo-American security agencies never seems to grow old for the sheep which lap it up. Not the Jackass, since my daddy did not raise a fool. The Norwegians stuck to their beliefs and apparently continue to divest away from British Govt Bonds, the UKGilts. They are also moving away from French Govt Bonds. The dual rejection is directed as a shun away from the central banks that undermine their currencies through official severe debasement.

The huge Norway Fund intends to flee the currencies most egregiously in violation of monetary discipline and prudence, from central bank abuse. They will shun the government debt offered by the worst debt-laden nations as policy makers undermine their exchange rates through unprecedented stimulus measures. The bond monetization has a backfire apparently, just the beginning. The decision is wise beyond words, and deserved punishment. The Government Pension Fund Global is the world's largest wealth fund, with home in Norway. It announced a cut of its holdings in French and UK Govt Bonds by almost half last year. In compensation, it raised its share of government bonds in emerging market nations to 10% of its fixed income holdings. It turned a favorite hand by adding investments in Turkey, Russia, and Taiwan. The attention turned eastward in a new risk reduction strategy. See the Bloomberg article (CLICK HERE).

For a list of the major sovereign wealth funds and their value, see the SWF Institute webpage (CLICK HERE), which lists the $5.2 trillion in numerous funds. Among them, six are US-based, valued at $95.6 billion with good disclosure, but a mere 1.8% of the global total. The US specializes in grand debt, not wealth. Recall for the wayward heretical United States in the 1990 decade, the mouthpieces spoke about how wealth was measured in credit lines and economic power measured in consumption, a total perversion that contributed toward the wreckage of the nation. In the 2000 decade, the same moron wrecking balls spoke about the wonders of low-cost manufacturing off-shore in China. Another total perversion, as the USEconomy relied upon the housing & mortgage asset bubbles. Wreckage has followed since 2007. The outcome was a descent into a downward spiral, with the help of deep devotion to war and comprehensive bank fraud with broad protection. Systemic failure awaits next from destructive economic pathways, or corporate treason, or both.

◄$$$ SHANGHAI IS TO EXTEND OPERATING HOURS TO OVERLAP WITH LONDON AND NEW YORK. IN A DIRECT CHALLENGE, THE GLOBAL COMMODITY MARKET WILL SEEK MORE EQUILIBRIUM AND FAIRNESS. STEP BY STEP, CHINA IS COMING OF AGE IN THE FINANCIAL PLATFORMS. THE SHANGHAI OFFSET VERSUS LONDON & NEW YORK HAS THE POTENTIAL TO FORCE MORE HONESTY. THE ANGLO-AMERICANS HAVE AN EXTENSIVE HISTORY RECENTLY OF CORRUPTING THE COMMODITY MARKETS. THEY CUT OFF FOREIGN RIVALS AT THE KNEES. $$$

The new Shanghai Futures Exchange (SHFE) will start operating during London and New York hours, in a direct challenge. The change will take place before the end of the year. Regard the move as a critical step to gain a foothold in global futures trading, which by definition means a challenge to the Anglo-Americans. The exchange will further boost its international presence by expanding the list of futures contracts in the coming years, including crude oil. The major energy contract in crude oil is one of the world's most important commodities without question, tied to the USDollar in critical ways. The SHFE exchange currently trades from 9am to 11:30am and from 1:30pm to 3pm, all Beijing times. The extended trading hours will bridge the gap between domestic investors and foreign markets, and will align the exchange with international practices, according to its executives.

The longer coverage enables a competition between potentially clean market pressure against corruption, felt in particular at the beginning of the day in London and New York. In the early market hours of New York, it will be early evening in Shanghai, with light but notable volume, with enough volume perhaps to counter the extreme typical nasty declines that Wall Street has made customary. Shanghai can purchase right away the gold sold at sudden discount from naked shorting by New York, an entrenched practice. In the early market hours of London, it will be mid-afternoon in Shanghai, with brisk volume perhaps sufficient to counter the London fix, if done illicitly. The Chinese market has the potential to keep the Anglo-Americans honest. Time will tell.

The added hours will enable significant market participants in China to hedge and adjust their positions after breaking news emerges in the United States or Europe in the West, thus reducing price volatility in the standard morning session. The night hours for trading will also further boost demand for the Chinese Yuan in the global market, adding to liquidity. Shanghai is on course to become an international financial center. Beijing officials have exhausted their patience in accepting Western prices, complete with the London and New York gaming of markets for their advantage. China seeks fairness, if not their own advantage. China is positioning its futures markets to become major players, in an attempt to shape the global prices for metals, energy, and foodstuff commodities. The end result will be Chinese traders given more a direct role in valuing the contracts, putting the country less at the mercy of markets elsewhere. For an emerging industrial giant and new geopolitical leader, control of financial markets and commodity prices is essential, or at least prevention of sinister control by foreign pillboxes.

China Securities Regulatory Commission is the country's securities regulator. It has given foreign investors limited access to the futures market, with access granted to the market for foreign investors if a stake of less than 5% is held in a domestic futures brokerage through a Chinese legal entity. The country's futures contract law is expected to be reformed, so as to regulate the market and protect investor rights. The goal is to develop and improve trading vehicle categories, trading contract volumes, and investor structure. After a 20-year experience, China's futures market is mature enough to operate within a legal framework. The Shanghai Futures Exchange has ten trading categories, including gold, silver, copper, and aluminum. Aside from the Shanghai exchange, China has three other commodities bourses: the Dalian Commodity Exchange in Liaoning province, the Zhengzhou Commodity Exchange in Henan province, and the China Financial Futures Exchange in Shanghai. See the China Daily article (CLICK HERE).

◄$$$ THE SHANGHAI FUTURES EXCHANGE IS SOON TO LAUNCH CRUDE OIL FUTURES CONTRACTS BY END 2013. MANY SPECIFICATION AND LOGISTICS DETAILS ARE BEING WORKED OUT. EXPECT OPEN CRUDE OIL ARBITRAGE AGAINST LONDON WILL COME IN A MATTER OF MONTHS. THE FINAL PHASE TO THE PETRO-DOLLAR CAN BE SEEN IN ITS SUNSET AS THE EAST WILL TURN TO CHINA FOR MARKET CHANNELS. $$$

Of all the commodity contracts, the most important is clearly that for crude oil. The new Shanghai crude oil contract has the potential to divert attention away from the US$-based system of OPEC. The Shanghai Futures Exchange (SHFE) is finalizing details of its first crude oil futures contract, with the contract expected to be launched by the end of the year, a source close to the exchange told Platts. A delay has been seen from the original indication for launch by end 2012 and Q1 this year. Total Chinese crude imports in 2012 rose 6.8% annually to 271.02 million metric tons, equal to 5.43 million barrels per day.

Many details of the contract have not been finalized, like on registration requirements for foreign participants. A decision is forthcoming on whether to trade the contract in Yuan or USDollars. If not initially with Yuan, then soon afterwards. The SHFE has entered into talks with several bonded oil storage terminals in the Northeast and East of China, for the purpose of setting up delivery depots for the crude contract. The contract will reflect a tax-free price, and has been in test for the platform, expected to be completed in May. Some haggling has taken place over the oil grade, which is expected to be medium sour, since they would be widely accepted by Chinese futures players. Those have the highest liquidity in the China market, according to a futures trader from Guangzhou. The deliverable grades span the globe, from diverse Middle Eastern crude grades to the Russian Ural, the Yemeni Masila, and the Chinese domestic Shengli. Slight price differences will be made final soon, like a 50-cent premium per barrel for the Masila and Qatari type. Based upon existing logistics, the minimum physical delivery size has been set at 200,000 barrels, equal to 2000 lots of 100 barrels each.

The initial stages with fuel oil trading have been met with thin trading. The crude oil contract will attract more players from both domestic and international sources. It serves as the feedstock for a wide range of products. Many types of producers would be able to use the contract as a hedging tool. In China, only companies with government crude import licenses are permitted to move barrels from bonded delivery depots into the domestic market. These companies are PetroChina, Sinopec, CNOOC, Zhenhua, Sinochem, and Zhenrong. A trader based in Guangzhou explained, "For players without government crude import licenses, they will still have several options on the platform, such as to close their positions directly. If they choose physical delivery, they can keep the barrels in bonded storage, then resell them to those companies with licenses or to other countries like Japan and South Korea." See the Reuters article (CLICK HERE) and the Platts website information (CLICK HERE). The arbitrage is set to occur against London and New York, which are ripe with gaming the energy market. They routinely tie the USDollar trading on the FOREX market in their running agendas in defense of the USDollar, not so hidden any longer. With more trading conducted outside the USDollar, the sunset of the Petro-Dollar is coming. It lies on the horizon for those with vision to see. The exchange in Shanghai is a road that leads to the movement away from the obsolete destructive Petro-Dollar defacto standard.

◄$$$ THE FAST RISE FOR CHINESE YUAN USAGE IN TRADE SETTLEMENT IS NOTED. NOW RANKED #13, IT RECENTLY SURPASSED THE RUSSIAN RUBLE. THE DATA IS UNDER-STATED SINCE MANY BILATERAL IRANIAN TRANSACTIONS ARE NOT COUNTED. $$$

The Chinese Yuan has overtaken the Russian Ruble for transactions in the global payment system, according to Society for Worldwide Interbank Financial Telecommunication, a financial messaging platform based in Belgium known more commonly as SWIFT. Usage of the Yuan in global trade payments sequentially increased 24% in January from December, but a ripe 171% from a year ago. The Russian Ruble usage declined 5.4% on the month. The actual figures do not seem impressive, unless viewed against the other non-major types. The Chinese currency accounted for a record high of 0.63% of global payments, lifting it the 13th position among currencies. The Ruble accounted for 0.56% in global payments, now 15th most used. The Euro leads the list among currencies, followed by the USDollar, and the British Pound. These are impressive growth rates for Chinese Yuan usage, but the ramp-up process is early. However, such statistics are understated since they exclude all China-Iran transactions, UAE-Iran transactions, and Turkey-Iran transactions conducted outside the SWIFT system. These nations are using Chinese Yuan more and more every month. See the Bloomberg article (CLICK HERE).

◄$$$ CHINA AND SINGAPORE HAVE DOUBLED THEIR EXISTING CURRENCY SWAP DEAL TO 300 BILLION CHINESE YUAN. WITNESS THE CONVERSION OF THE ENTIRE ASIAN REGION AWAY FROM USDOLLAR TRADE. $$$

In early March, China and Singapore signed an agreement that expanded their existing currency swap facility to 300 billion Yuan (=US$48.22 bn). The deal is effective for three years, and will replace a 150 billion Yuan agreement signed in 2010. The expanded deal is designed to help strengthen financial cooperation, to boost bilateral trade, to foster investment, and to provide short-term liquidity. More Asian trade is thus committed outside the USDollar, the general theme to bring isolation for the global reserve currency being destroyed by inflation and corrupt management.

◄$$$ A LARGE SCALE SAUDI-CHINA PETROCHEMICAL PLANT ASSURES FURTHER MOVEMENT AWAY FROM USDOLLAR TRADE IN THE PERSIAN GULF CORE. A LIMITED LIFESPAN FOR THE PETRO-DOLLAR IS VISIBLE. THE PLANT COMES ONLINE IN SEPTEMBER 2014. MANY ARE THE GLOBAL STONES FOR SIDESTEPPING THE USDOLLAR AS IT FADES INTO THE SUNSET. WITH FADING SETTLEMENT ROLE, THE USTREASURY BOND WILL BE REMOVED FROM GLOBAL BANKING RESERVES. THE ISOLATION OF THE USDOLLAR WILL THEN ENABLE A FINAL STEP. WITH LOST GLOBAL RESERVE STATUS COMES DEEP DEVALUATION, AS IT MUST BE VALUED ACCORDING TO MERIT AS PER FUNDAMENTALS. IT WILL RESEMBLE A THIRD WORLD CURRENCY AND BE VALUED LIKE ONE. $$$

See the Yasref website for details on the plant (CLICK HERE). The giant petro-chemical plant is expected to go online by September Sept 2014 and attain full capacity by 4Q2014. See an informative article from last year by the Economic Collapse (CLICK HERE). This plant was cited in the Hat Trick Letter a year ago, anticipating its importance. No new details will be offered, except to emphasize that the Petro-Dollar is being undercut by various trading swap facilities, exchange futures contracts, and projects of significant size. The Petro-Dollar is history, with only the deeply devoted wonks and the dumb sheeple unwilling or unable to anticipate the final chapter for the profoundly corrupted, debased, and ruined USDollar. The greenback has turned toxic. The Eastern nations recognize the change, and are taking action. The Persian Gulf nations will follow the next leader, China.

The many critical dominos are aligned to attack and cripple the foundation of the USDollar itself. The process is well underway. If control is lost of global trade settlement, control of USTBonds will be lost, since they are interest bearing vehicles of US$ denomination stored for later usage in making payments. Then they would lose control of global bank reserve systems, since the USTBond is the standard reserve item held in bank balance sheets the world over. Finally the USDollar would be isolated as toxic agent, since not widely used. Health would be restored to banking systems that do not rely upon it. The many nations of the world would begin to accelerate their divestiture of the USTBonds, selling them in volume over time. The USDollar would fall into the province of the US and its principal allies. The end result will be the USGovt and banking helm forced into extreme decisions to devalue it by 30% to 50% in order to make payment for the many supplies imported, both finished product and commodity. The key point is that the US authorities are fast losing control of trade settlement, which augurs for dire outcome on the USDollar. It will be isolated, rejected, then devalued into the Third World currency it represents on the fundamentals.

◄$$$ TAIWAN HAS ESTABLISHED A CURRENCY PLATFORM FOR CHINESE YUAN, WHICH WILL AID IN CLEARANCE OF TRADE WITH CHINA. ONE BY ONE, ASIAN NATIONS ARE ADOPTING THE YUAN AS STANDARD FOR REGIONAL TRADE, PUSHING ASIDE THE USDOLLAR. $$$

A foreign currency settlement platform has been launched in Taiwan. The Central Bank of China in Taiwan has established a foreign currency settlement platform. It is designed to strengthen the domestic financial infrastructure and to facilitate the operation of a Renminbi clearance mechanism for trade across the strait with the Mainland. The platform was created by Financial Information Services, set to handle USDollar remittances initially, with Yuan remittances later in July, according to the central bank. Statistics gathered by the central bank show a total of 46,444 US$-based transactions in Taiwan were completed in 2012. They amounted to US$316.2 billion in volume value. That constitutes a 3-fold rise in transactions and a 42-fold increase in trade volume. After the formal inauguration of the foreign currency settlement platform, the number and value of domestic US$-based transactions will grow at an even faster rate, according to deputy central bank governor Yang Chin-lung. The new currency platform will enable immediate conversion to Chinese Yuan by trade participants, yet more favorable convertibility required for global presence. See the Want China Times article (CLICK HERE).

◄$$$ USDOLLAR REJECTION IS EARLY BUT WILL COME TO PASS LIKE TO UNCLE SAM WITH LEPROSY. THE GOLD BREAKOUT WILL OCCUR IN THE MAJOR CURRENCIES OUTSIDE THE UNITED STATES. ALL NATIONS WITH A DEFENSIVE CENTRAL BANK WILL SEE A GOLD PRICE UPWARD THRUST IN THEIR NATIVE CURRENCY TERMS. THE GOLD BREAKOUT WILL BE LAST FOR THE UNITED STATES, WHEN IT LOSES ITS GLOBAL RESERVE STATUS AS PUNISHMENT FOR CREATING A TOXIC USDOLLAR BY VIRTUE OF ENDORSING HYPER MONETARY INFLATION, SPONSORED BANK BOND FRAUD, REGULAR ATTACKS OF FOREIGN FINANCIAL STRUCTURES,  AND CORRUPTING FINANCIAL MARKETS. $$$

The foreign central banks will not stand quietly as the USFed continues with its bond monetization to the moon and beyond, better described as QE to Infinity. As a basis, keep firmly in mind that the USGovt will not permit its USDollar currency to falter badly. It provides a baseline value in defense. The only permitted movement is upward, which in lunatic fashion the US leader crew regards as a sign of success at the helm. The US deals much more in financial securities export than finished product export. So it desires a USDollar in uptrend. Each foreign currency responds to the endless QE and endless monetary expansion by pushing up foreign exchange rates uniformly. The USD debasement process continues relentlessly. Therefore the foreign central banks put in place monetary policy to push down their native currencies, not once but as policy. They will probably buy anything but the US$-based Govt Bonds, since the currency is turning toxic rapidly. So they will push their native currencies down by buying other sovereign bonds or by buying stockpiles of commodities. The latter will raise their cost structure and render damage to their economies. The former will bring about a slower global trade pattern. Both result in damage, from local and global sites.

The entire warlike process in native currency pushdowns and stockpile purchases will continue to encourage a Gold price advance in foreign currencies. The warlike conditions will power upward the Gold price in every vigilant nation with a defensive central bank. They are all turning defensive. The next Gold market breakout with higher prices will be in foreign lands, in their foreign currencies. One by one, already begun. The Gold breakout will be last in the United States. Due to the competing currency devaluations, the Gold breakout will occur in the major currencies outside the US, in particular Asia. The US propaganda machine will herald the dull shine off the Gold market in the forlorn depressed nation, the former beacon of freedom, the current bastion of fascism. But in Yen terms, in BPound terms, and in Swiss terms, it will be a big bright glow from the golden reflection. When the trigger in Europe is lit, and big banks topple, and contagion spreads, the Gold price in Euro terms will be magnificent. Finally later comes the Gold price upward explosion in the USD terms when it loses its global reserve status and is rejected globally. See the ATimes article (CLICK HERE).

## VATICAN SUCCESSION TURNS FASCIST

◄$$$ INTERPRETING THE ELEVATION OF THE NEW POPE IS DIFFICULT. THE EVENT IS LOADED WITH ANGLES FROM THE DARK SIDE. NOTHING DEFINITIVE CAN BE STATED, BUT SOME EXPOSURE ATTEMPTS TO PUT THE PIECES ON THE TABLE. THE ELECTION IS BY FAR THE MOST SIGNIFICANT IN DECADES, AS THE VATICAN IS UNDER SIEGE FROM SEVERAL SIDES, FROM CHALLENGES BOTH ON NARCO MONEY LAUNDERING AND CHILD SEXUAL ABUSE. $$$

It is hard to find a place to start. At first glance, it appears both the pope and bank leader are on the wrong side of the fence. The papacy now seems under banker control in a visible way. Jorge Mario Bergoglio is a Jesuit, officially known as the Society of Jesus, the first such Jesuit to be elevated to pope (Vatican CEO). The dark side of the Vatican, where the bankers and business school clergy manage the vast wealth, they are almost all Jesuits, offical called the Dark Catholics. The name is not loosely applied, since the bankers are widely known in the industry to be populated by both satanists and child sacrifice advocates. One contact attests to this characterization from personal experience in Rome. As footnote, by remaining in the Vatican, Ratzinger will shift his post to Chairman of the Board at the Vatican, and thus remain within protected walls but with some retained hidden power. To be sure, the CEO and Chairman are somewhat figure heads, with the great power held by the wealth managers.

One must consider two angles. Like exiting Pope Benedict (Ratzinger), the new pope speaks fluent German. More accurately, make that trilingual with Italian and Spanish also. The German angle is difficult to comprehend fully. The newly appointed Vatican Bank executive von Freyberg is a German native. An excellent German banker source continues to beat the drums for upcoming reforms and distinctive surprises, and giant traps laid that soon will snap. The second unusual angle is that by electing Bergoglio as pope, the Vatican just installed a Knight of Malta, whose cluster (cult) has worked well together with the Jesuits going back to the days of the Knights Templars. It is very unclear to the Jackass how the German angle will play out. It is totally unknown what the Maltese angle means.

My vote for the next pope was Berlusconi, but my mocking voice was drowned out by the din from the dungeons where Beelzebub dwells. Cardinal Jorge Bergogli won, my vote not mattering more than a twit. The former Italian Prime Minister (my candidate) and his followers prefer girls, and boasts real world business experience. The new Pope Francis (Bergoglio) has far too many high ranking followers who prefer boys, the dirty secrets leaking out in many avenues. He has no business experience, except in colluding with a military junta. Big distinction. Keep in mind both my experience and bias, having been molested sexually by priests in high school. The lawsuits and large awards to sexual victims could not be long enough or large enough in my book, paid by the Vatican and its satellites. The total in awards is a trifle amount. Pope Berlusconi would have served the billions of global Catholics far better than a man with fascist roots who tolerated countless kidnap murders in Argentina. Yet the Desaparecedidos (the Disappeared Ones) probably made a quick trip to heaven, the ultimate mission of the church. For a little background education, check out Matthew Fox (former Catholic priest). He discusses the Vatican's work with the CIA and its alliance with far right political forces. He covers the opposition maintained by Cardinal Bergoglio and his liberation theology in Latin America. See the YouTube video (CLICK HERE).

 

The official story line sounds wonderful, sweet, and homespun, a success story. Thousands cheered the new pope after viewing the tell-tale white smoke from the building. The new pope, Jorge Mario Bergoglio will be called Francis I, the 266th pontiff of the Roman Catholic Church. He is also the first non-European pope in more than 1200 years, the first member of the Jesuit order to sit on the ex-cathedra throne, and first South American to lead the church. In the past he served as archbishop of Buenos Aires. His election sends a message that the global south will play a role in the future of the Roman Catholic Church. He spoke to the throngs of faithful from the balcony on St Peter's Basilica as thousands cheered joyously. It is doubtful that even 1% know anything about the new pope. He is portrayed as a humble man who spoke out for the poor and led an austere life in Buenos Aires. He was born to Italian immigrant parents and was raised in the Argentine capital. The new pope inherits a church struggling with an array of challenges that include a shortage of priests, growing competition from evangelical churches, a sexual abuse crisis that has undermined the church's moral authority in the West, and internal difficulties governing the Vatican itself, in particular its scummy bank. See the New York Times article (CLICK HERE).

◄$$$ THE NEW POPE HAD STRONG TIES WITH THE FASCIST MILITARY DICTATORSHIP FROM THE 1970 DECADE IN ARGENTINA. THE VATICAN RELIGIOUS CHAMBER WILL BE RUN BY A FASCIST, THE FAVORED CHOICE FROM WASHINGTONDC. THE IMPLICATIONS ARE UNKNOWN. QUESTIONS SHOULD BE RAISED WHY BERGOGLIO WAS EVEN ELEVATED TO CARDINAL, LET ALONE POPE. HIS HANDS ARE DIRTY FROM YEARS AGO. $$$

Professor Michel Chossudovsky was visiting Professor at the Universidad Nacional de Cordoba Argentina in 1976. His major research focus at the time was to investigate the social impacts of the detrimental macroeconomic reforms adopted by the Military Junta. Think old style fascist military dictatorship. He was managing teaching duties during the initial wave of assassinations, which also targeted progressive grassroots members of the Catholic clergy. The university faculty did not feel safe either. The Northern industrial city of Cordoba was the center of the resistance movement. He personally witnessed the Catholic hierarchy actively and routinely supporting the military, thus creating an atmosphere of  intimidation and fear throughout the country. The general feeling at the time by Argentinians was that they had been betrayed by the upper echelons of the Catholic Church. One can safely doubt that Argentines on the street are as joyous as those in Rome. What follows is largely taken from a recent lengthy article composed by Chossudovsky, whom the Jackass first followed ten years ago regarding the historical background of gold, and more. He is erudite, respected, and very knowledgeable. See the Global Research article by the courageous professor (CLICK HERE).

The malicious background of Pope Jorge Mario Bergoglio speaks for itself. The secret oath taken by Jesuit Priests is to exterminate all heretics, and Jorge took his oath with the others. After being appointed in 1973 within the Society of Jesus, he rose to the highest ranking Jesuit in Argentina during the military dictatorship led by General Jorge Videla (1976-1983). He later became bishop and archbishop of Buenos Aires. In turn, the Catholic Church hierarchy played a central role in sustaining the legitimacy of the Military Junta. The Jesuit Order, which represented the conservative but most influential faction within the Catholic Church, was more closely associated with Argentina's economic elites. The Jesuits were firmly behind the Military Junta, in direct opposition to the so-called Leftists from the Peronista movement. Refer to Isabel Peron, whose administration followed her husband Juan Peron.

Pope John Paul II elevated Bergoglio to cardinal in 2001, dispatching him to Rome. The decision was very curious, given the political entanglements and controversy. The Argentina Military relinquished power in 1983, at which time the elected president Raul Alfonsin took control of power. The Military Junta had been supported covertly by the USGovt. Then Secretary of State Henry Kissinger played a key role behind the scenes in the 1976 military coup, with many photos to prove the association. Wall Street was firmly behind the military overthrow and subsequent financial dealings. During that era, a few $100 billion found its way to the New York banks from Argentina, supposedly to protect it from the greedy fascist clutches. It was a combination of stolen money and elite in capital flight.

The so-called Dirty War was waged against the people of Argentina, as the fascists seized power. The fascists never hold human life or rights in high regard as priority. During this era, allegations were directed against Cardinal Bergoglio. The Catholic Church under the Bergoglio reign condemned any criticism of the military dictatorship, including its human rights violations that extended to murder. It was taboo within the Catholic Church to lay criticism. A conflict was fierce. While the upper echelons of the Church were supportive of the Military Junta, the people of the Church were firmly opposed to the imposition of military rule. They disappeared by the thousands. In 2005, human rights lawyer Myriam Bregman filed a criminal suit against Cardinal Jorge Bergoglio, accusing him of conspiring with the Military Junta in the 1976 kidnapping of two Jesuit priests, Francisco Jalics and Orlando Yorio, as well six members of their parish. The two were later released after torture, but the other six were presumed dead since disappeared. Upon his release, Priest Orlando Yorio accused Bergoglio of effectively handing them to the death squads, while Jalics moved into seclusion at a German monastery. The photo shows Cardinal Bergoglio with Videla.

By endorsing the Military Junta and working closely with it, the Catholic hierarchy was complicit in torture and mass killings. The estimates total 22,000 dead and disappeared from 1976 to 1978. Thousands of additional victims were killed between 1978 and 1983 when the military was forced from power, according to the National Security Archive. The contrast of positions held by the Catholic Church as seen by Chile versus Argentina is stark and revealing. Following the military coup in Chile in September 1973, the Cardinal of Santiago, one Raul Silva Henriquez openly condemned the coup led by General Augusto Pinochet. The bold stance by the Catholic hierarchy in Chile was instrumental in curbing the tide of political assassinations and human rights violations directed against supporters of Salvador Allende and opponents of the military regime. If Bergoglio had taken a similar honorable stance as the Chilean Cardinal Henriquez, thousands of lives would have been saved in Argentina.

The election of Cardinal Bergoglio by the Vatican conclave to serve as Pope Francis I will have direct repercussions toward the ongoing trial concerning Operation Condor in Buenos Aires. The project was led by the CIA, which oversaw the military coup d'etat and helped to manage the many assassinations. The Church was involved in supporting the brutal fascist dictatorship, the darkest chapter in modern Argentine history. Scattered details will emerge in course of the trial proceedings. To be sure, attempts will be made to confuse and distort the role of the Catholic hierarchy and the newly appointed pope. In Latin America, several governments are now challenging US dominance. Perhaps a hidden political role can be exploited on behalf of the US leaders and interests. The hierarchy of the Catholic Church in Latin America can once again be effectively used not only in Argentina (concerning Cristina Kirschner) but throughout the entire region, including Venezuela, Ecuador, and Bolivia. It should be known that Jorge Mario Bergoglio was Washington's preferred candidate. Some day the unwashed public masses might hear of pressures discretely exerted by the USGovt within the Catholic Church, directly or indirectly on the 115 cardinals who serve as voting members of the Vatican conclave. They elected a pontiff who might in hidden ways serve US foreign policy interests in Latin America.

◄$$$ THE VATICAN BANK EXPOSURE MIGHT BE STARTING. WHEN IT COMES TO PROTECTED CRIMINAL ACTIVITY, THREE GROUPS REIGN SUPREME. THEY ARE BIG BANKS, THE CHURCH, AND THE SECURITY AGENCIES. CRIME, FRAUD, COUNTERFEIT, NARCOTICS ACTIVITY, AND MONEY LAUNDERING ALL FLOURISH. THE VATICAN BANK IS RUN LIKE ALL THE REST, PROTECTED FOR ITS SCUMMY DEALINGS AND COMPLICITY TO MURDER AT ARM'S LENGTH. TAKE A WALK ALONG MEMORY LANE FOR A BRIEF HISTORY. $$$

The image of the Vatican Bank, formally known as the Institute for Works of Religion, has been badly tarnished in the last decade or two. It has been linked in clear terms to criminal activity. The paths to its bank are littered with corpses of avid Roman investigative reporters trying to obtain a story. The secretive Vatican Bank was established in 1942 by Pope Pius XII so as to manage the vast Vatican finances. Its operation is run by a CEO and overseen by five cardinals like a Board who report directly to the Pope. The Jesuit bankers are in charge, known as the dark catholics or the black cardinals. In my opinion they follow the Prince of Darkness from the nether domain, complete with child sacrifices. Their advanced communication center connects the covens of the world, according to a direct contact who endured a two-year internship 15 years ago in Rome. The bank has extensive ties to the central banks of the West, with a long history of deals, back scratching deals like hired mules to move bearer bonds, like leasing gold, like arrangement for murders.

The official Vatican Bank charter is to safeguard assets and to administer property dedicated for works of religion or charity. The actual activities of the bank are somewhat different. They include money laundering for narcotics traffickers, bribery, skimming charitable funds to enrich priests, and tax evasion means for wealthy Italians extending a hand into the Holy See. The bank answers to nobody, since the pope is left uninformed, and the Holy See is a sovereign city state. If a pope attempts to interfere or to expose the corrupt dealings or sexual underworld, he ends up like John Paul I, who was treated to a heart attack in his first month. Injection of potassium is my guess. My belief is firm, not a natural event. The door to sexual impropriety was exposed by American monsignor Paul Marcinkus, the chief of the Vatican Bank from 1971 to 1989, whose tenure was mired with scandal.

The scandals tied to the Vatican Bank of the last few decades are so despicable and heinous that they defy the imagination for the majority of religious observers who conjure thoughts of foreign missions and UNICEF for children and hunger. In medieval times when Martin Luther roamed Europe, the past offenses were to sell indulgences and to charge fees for sacraments. They have been updated and modernized in adaptation to the elevated criminal level of modern finance, complete with shell companies like for Manhattan property and London property (SEE LINK), speculation in popular leveraged financial instruments, and secret transfers such as bearer bond mule traffic like seen at the Swiss border in 2009. Roman journalists and reporters routinely attempt to penetrate the Vatican. Last year, Italian journalist Gianluigi Nuzzi published a book delving into the intrigue and corruption swirling in a bank that is accountable to no one. It was a shocker. He might be killed for it.

The door swung wide open for light to shine on the dark side where the Jesuit bankers operate. In May 2012, the butler to Pope Benedict was arrested for leaking documents bursting with juicy evidence of financial corruption and criminal activity. The Vatican has been in league with major Italian companies on shady dealings. The last Vatican Bank chairman, Ettore Gotti Tedeschi, was fired when the bank was caught hip deep in international money laundering. The bank has been serving as a rogue offshore vehicle favored by widespread politicians, mafia figures, and tax evaders. Recent information from a USGovt source indicates that Obama, Geithner, other leading figures, and even Bill Gates from Microsoft infamy, each own slush fund accounts at the Vatican Bank, many of which were fed by the raided Falcone account. The source has been reliable over half the time in intriguing stories. My belief is that Gates is being paid for his service on developing a virus arsenal toward African genocide under the guise of HIV vaccine. The Vatican is Cayman squared for the elite.

More recent violations have resulted in a shutdown of credit card transactions at all Vatican venues, including the famed museum. Certain transactions bank to bank with Roman financial firms have been suspended. In the 1980s, the Vatican Bank was involved in a major political and financial turmoil related to the $4.7 billion collapse of Banco Ambrosiano. Its CEO Marcinkus had dirty hands, and was almost indicted in 1982, within the Italian jurisdiction. On Vatican turf, he was protected by the dark side. The Italian courts let him skate free, after ruling that his status as a priest and high-ranking prelate of the Vatican gave him diplomatic immunity. The Banco Ambrosiano chairman was Roberto Calvi, who not only was in league with God's demon figures but also with key Mafiosi. He was found in June 1982 swinging from Blackfriars Bridge in London the day after his dismissal from the bank. The death was ruled a murder, and is widely suspected to have been a mob hit.

Seeking to restore relations with the international financial community, former Pope Benedict appointed a new director of the bank, German lawyer Ernst von Freyberg. Some minor stench might obstruct his work to conduct an audit of the bank. It appears that Freyberg might have ties to a company with a history of making warships for the old Nazi Germany war machine. The depth, let alone confirmation, of such reports have not been confirmed. See the Alternet article (CLICK HERE).

A highly credible contact in New York City with claimed information source shared his perspective. The Swiss Mafia out of Basel had shut down the Vatican finances at the local ATM level, and at the higher SWIFT bank level in the last six months under the facade of fighting money laundering. A clear message to bankrupt the Vatican was given, the deed done by the Bank For Intl Settlements. Then the Pope received the final warning: resign or be found dead like John Paul I, who lasted a mere month. So Benedict left, the first pope not to die in the Vatican arms in over six centuries. It is difficult to confirm that the last pope to resign occurred 666 years ago.

◄$$$ PRESSURE IS ON VATICAN BANK TO GIVE INCREASED TRANSPARENCY. THE BATTLE IS ON FOR CONTROL OF THE BIG BANKS, THE RIVALRIES FIERCE, THE GROUPS POWERFUL, THE GAME DEADLY, THE PLAYERS DIABOLICAL. SCORECARDS FOR TEAMS ARE NOT READILY AVAILABLE. $$$

A noble initiative by the European Commission to impose stricter oversight on banking activity throughout Europe has put pressure on the Vatican Bank to reform itself. The new pope faces a difficult task. He will be forced to modernize the Vatican's finances while not angering its sordid clients. He must restore moral authority but earn a vengeful contract on his own life, as in not be himself murdered. The Vatican Bank was founded in 1942. The bank does not customarily grant loans, but instead manages deposits for religious institutions. Its longstanding confidentiality on account holders has appeared as plain, to protect gray area accounts like for politicians, government ministers, and organized crime heads. Some disclosure began in 2011, when for the first time it released data. The bank has 33,000 accounts with $8.2 billion in assets under management. More recently, the Bank of Italy (central bank) blocked Deutsche Bank Italy from operating at the Vatican, when the Holy See failed to meet a compliance deadline last December related to continued money laundering. In response, the Vatican quickly replaced it with a consortium in Switzerland where at first glance it found friendlier office partnerships.

But the Swiss are full of guile and a tad sinister. They might have laid a trap for the Vatican, thus exposing a schism. In fact, a great battle is on for control of the banker wealth among the Zionists in Switzerland, the Catholics in Vatican, the narcos in the CIA, and the White Dragons from China. Steeped within the battle, the bizarre bunch, are the Satanists & Pedofiles in Royal London and Colonial New York. It surely aint that simple, as Masons and Templars and Skull & Bones abound, but those are the some of the groups at odds vying for power to control the shrinking pie. Some key partnerships have formed in the past, like with Goldman Sachs and the Swiss in Basel, and JPMorgan with the Vatican. Other ties are more hidden like connections from the Skull & Bones to Mao Tse-Tung in past years. Tools like Interpol and the Intl Court Hague are being used as leverage, like by the White Dragons.

Other extreme leverage is used by the more ambitious less honorable elements of the Pentagon tied to the massive USMilitary contractors led by nefarious Halliburton. Urchins like George Soros attempt to present the public image of propriety when his past could not be more sordid among gentlemen. New members must pay dues, like Bill Gates of Microsoft, with his vaccine killers for African application. Following their paths and depots is a deadly project, not worth the risk. For a breath of bad rancid hot air, meander through a review of Freemason Lodge versus Teutonic Knights versus Sabbatean Mafiosi secretly controlled by Satanists. The players are many, including Gnostic Illuminati, Vatican Jesuit dark Catholics, Wall Street giant narco money laundering banks, Chicago mafia banks (sponsored Obama), Khazarian mobsters, CIA narco barons, MI5 liaisons, London Royals, Israeli Mossad contractors, Japanese Yakuzi, and more. See the UK Telegraph article (CLICK HERE) and the JHaines WordPress article (CLICK HERE). Prepare to have your head spin. As for Ben Fulford, once upon a time the Jackass was told he was a White Dragon mouthpiece, but he has his own roots. Maybe he is Bullford. The Jackass prefers to be coy on some sources, never too smart to show full banners.

## THANKS

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.