MONETARY CRISIS REPORT
CLIMAX OF FINANCIAL FRAUD
COMPREHENSIVE GUIDE

* Intro Monetary Fragments
* Morgan Stanley Implosion
* US Central Bank Inflators
* European Central Bank Inflators
* Grand Bank Shell Game
* Banker Criminality


HAT TRICK LETTER
Issue #102
Jim Willie CB, 
“the Golden Jackass”
19 September 2012

"The United Socialist States of America is experiencing a Reverse French Revolution. That is where revolting peasants do all they can to elect an aristocrat who will swindle them out of their savings even faster and lock up even more of them in the Bastille. And what makes these peasants so revolting is that they are all fat, from eating cake, just as Marie Antoinette had suggested." ~ unknown

"This gets to the heart of the issue I have with today's monetary charlatans: They are content to completely ignore history, including the now 20-year sordid experience with contemporary activist central banking and resulting monetary inflations. At this point, there is clearly no end point and certainly no Exit Strategy. They are experts supposedly with solutions, of course unwilling to admit that their policies have directly contributed to losses by millions upon millions of innocent victims around the world. They prescribe more potent doses of what we have already repeatedly witnessed ends in calamity. And somehow they have turned the monetary inflation debate upside down, intimating that it would be immoral and unethical to not keep printing." ~ Doug Noland (Prudent Bear)

"The Hippocratic Oath dictates never to do harm to the patient. The central bankers instead take the Hypocritical Oath that dictates to cripple the patient, to drain the blood, to preserve power by tightening the straps, to erode buying power from hard work, and to render life savings a weak shell, while whispering lies in the ears on blame for what went badly wrong, against the background din of endorsed war themes." ~ the Jackass

"Central bankers are counterfeit money printers and Federal Reserve Chairman Ben Bernanke should resign for messing up the USEconomy so badly. Bernanke was one of the main proponents of an ultra-expansionist economic monetary policy that was to blame for the latest financial crisis. If I had messed up as badly as Bernanke, I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous. It does not work that way. It is a temporary boost followed by a crash." ~ Mark Faber

"On the margin, nobody owns the Treasury bond; it is rented. Trillion$ of USTreasury paper is funded on Repo. You buy $100 million in Treasurys and immediately put them up as collateral for overnight borrowings of $98 million. Traders can capture the spread as long as the price of the bond is stable or rising, as it has been for the last year or two. If the bond principal price drops 2% [value, not yield], the spread has been wiped out. If that happens, the massive Repo structures (that is, debt owned by still more debt) will start to unwind and create a panic in the Treasury market. People will realize the emperor is naked." ~ David Stockman (former Budget Director in Reagan Admin)

"The European Stability Mechanism, insofar as it is constitutionally viable at all, should only come into force when the Euro Central Bank has taken back its self-awarded power as a hyper rescue shield." ~ Peter Gauweiler (noted EuroSkeptic in Germany)

"Paper is poverty. It is the ghost of money, and not money itself." ~ Thomas Jefferson

"Over 60% of the heroin that hits the US streets comes from Afghanistan. That figure is up from a mere 7% ten years ago. The US security apparatus is responsible for flooding the US population with heroin in the supposed War on Terrorism. They are merchants of addiction and death." ~ Consultant Watchdog group

## INTRO MONETARY FRAGMENTS

◄$$$ THE 1995 BANKRUPTCY LAW REVISIONS WERE PROFOUND BUT HIDDEN. THEY OPENED THE DOOR FOR MFGLOBAL CLIENT THEFTS. THEY PUT DERIVATIVES FIRST IN LINE FOR LARGE FINANCIAL FIRMS, THEREBY SUBORDINATING CLIENT ACCOUNTS. THEY WERE SET UP FOR TOTAL WIPEOUT. THE USGOVT AND US-CONGRESS DO NOT HAVE CITIZEN CONCERNS AS A PRIORITY. THEY HAVE THE BANKERS. WORSE, THEY ARE DESIGNING THE ERADICATION OF PERSONAL CITIZEN WEALTH, STRIPPING THEM OF LIFE SAVINGS. $$$

The 1995 Bankruptcy Law was sweeping and radical. It virtually removed the door for Chapter 7 types, whereby a debtor could erase all debts when matched up against all assets (few really). It pushed all debtors into the door for Chapter 13 types, where debts are restructured for future payment in agreed upon plans. The law had stipulations for taxes to be paid, never to be avoided, often never fully paid off. The revised law was a resounding success for banks, who would create an army of debt slaves, never to pay off the burden during their lifetimes. Hidden within the sweeping new law was a carefully crafted provision applied to financial firms, which most people overlooked. It came to Jackass attention only in 2002 or 2003 in my studies. The law stipulates that in the order of subordinated types of debt, the big derivative contracts were placed first in line. The revision carries enormous consequences. It means all other assets residing (but not owned) by the financial firm could be wiped out in a single stroke. Think of bank reserves, certificates of deposit by clients, brokerage accounts by clients, and much more. In the past, financial firm failures wiped out stock equity holders first, then gave a better deal (like 30 or 50 cents per dollar) to preferred stock holders and corporate debt bond holders. The entire picture has changed, seen in the MFGlobal case, and possibly to be seen in the Morgan Stanley case next.

In my view, the law was a prescription for eradicating US wealth in a future ruin of the banking industry, as part of some sinister global fascism agenda. They will ruin the citizens as well. Think of it as a poison pill developed by the bank sector, to ensure citizen death if the bank sector dies. Any new political and economic system planned might have an ensured wipeout of personal wealth. The effects of the sweeping law of 1995 might have seen its first victims in MFGlobal futures brokerage accounts, with a second victim at Peregrine Financial Group. One could properly surmise that the word Re-hypothecation has been introduced into the financial lexicon, as a result of the new bankruptcy law. It is doubtful that Ann Barnhardt has pointed out the foul wind from the law. My guess is that Morgan Stanley stock brokerage account holders might soon receive a bad taste from the downstream winds of this law. Few analysts or observers expected to see the impact on private wealth from financial firm failure. The application of derivative contracts is broad, enough to include the MFGlobal leveraged contracts on sovereign debt. The derivatives will take down the entire house, including all standing inside.

◄$$$ NOTE A HISTORY OF BUBBLES, AS THE CURRENT BUST CONTINUES. THE AUTUMN MONTHS ARE THE TIME FOR THEIR OCCURRENCE. EACH SUCCESSIVE BUST HAS BEEN AND WILL BE WORSE THAN THE LAST, SINCE NO SOLUTIONS ARE PURSUED, THE SYSTEM ENTRENCHES MORE FIERCELY, AND THE POWERZ HOLD ON MORE DESPERATELY WHILE THE WESTERN BANKING AND CURRENCY SYSTEM BREAKS IN CONVINCING FASHION. THE CURRENT BUST IS SECULAR, AND WILL TAKE THE SYSTEM DOWN. $$$

Bob Hoye provides a good overview insight regarding the foibles of humankind and their mismanagement of money. The blame goes to the bankers, who exploit the system, keep the masses poor, while monopolizing the wealth control levers. The patterns continue, with bravado and braggadocio the telltale signal as prelude to the busts. The bankers use the yield curve to make easy money, sowing seeds of destruction in debt saturation. The pattern of abusing phony money is as old as the hills, going back to the Roman Empire. The concept of experts serving as Dream Teams is not new, and certainly not reserved to the Greenspan gang who failed. A progression in the realized damage is assured, where the destruction in the next phase will be an order of magnitude greater than seen after the Lehman Brothers bust. Hoye wrote the following.

"To be serious, there is only one financial history and it repeats. A great asset inflation, otherwise known as a bubble, climaxes and collapses. While horrendous, the transition from boom to bust has been methodical. That is on six examples from the South Sea Bubble in 1720, to the Roaring Twenties in 1929, and to usual suspects beginning in 2007. These have been the greatest dislocations in financial history. All five prior to ours [in the USA] marked the beginning of a Great Depression that lasted for some twenty years. If the Black Swan guys were on the scene in the fall of 1720, they would have been surprised. At the time participants knew it to be an ephemeral bubble. Also in 1772, 1825, 1873, or 1929 the calamity would have been called a Black Swan Event. But, all the initial crashes occurred in the fall [autumn], and that is methodical.

Also methodical is that each bubble included a frenzy of borrowing short and lending long, of which the signature is an inverted yield curve. Then where data are available, typically a boom will run some 12 to 18 months against inversion and when the curve starts to reverse, it signals the end of speculation. This provided a three month warning to the end of the dot.com mania in March 2000. And in 2007 the killer month for the reversal in the credit markets counted out to June. The curve began to reverse in May and in that fateful June it began to be accompanied by widening credit spreads. By early June these had clocked the trend change and the observation was that the Biggest train wreck in the history of credit had started. It is not over.

Another feature of the post-bubble world has been severe recessions and weak recoveries. There is another methodical step as the recession virtually starts with the bear market. Usually the stock market leads the business cycle by around 12 months. Using NBER numbers the recession started in October 1873 and the crash started in that fateful September. As credit stresses were building in the summer, a leading New York newspaper editorialized that the USTreasury System was superior to a central bank constrained by a Gold Standard. An excerpt from the editorial records the belief that the agency of the day was proof against contraction: 'Power had been centralized in him to an extent not enjoyed by the Governor of the Bank of England. He can issue the paper representatives of a score or more of millions ... it is difficult to conceive of any condition or circumstances which he cannot control.' In so many words, nothing could go wrong.

This is similar to Harvard economist Greg Mankiw's beliefs. In December 2007, he boasted that nothing could go wrong because the Fed and the White House had a Dream Team of economists. Eventually, the NBER decided that the recession started in that fateful December. It became the worst recession since the 1930s. What else would one expect? Late in 2009, and not noticing the irony, the establishment began boasting that without the stimulus that crash would have lasted forever. This contrasts with the boast that nothing could go wrong. The notion that markets do not clear exists only in textbooks." The cast of clueless economists and corrupted bankers do not permit the banks to liquidate or the housing market to clear, since the event would remove them from power. Not gonna happen. This bubble & bust sequence has not permitted the bust to fully occur, since it is secular not cyclical. So the system grinds toward systemic failure, complete with more typical denials. See the Safe Haven article (CLICK HERE). Harken back to February 1999 to recall the Time Magazine cover lavishing praise to that failure of a Dream Team. They have more in common than just being economists and bankers. They are paper alchemists and sewer plumbers. Greenspan should be seen for the creature he really is.

    

◄$$$ A BRIEF MEATY UPDATE ON EUROPE, FROM A HAT TRICK LETTER SUBSCRIBER IN LONDON. TROUBLE BREWS IN SPAIN, WHERE A BREAKDOWN IS NEAR. SOLUTIONS ARE NOWHERE, NOR SOUGHT. THE SITE OF LIKELY GRAND BREAKDOWN IS SPAIN. $$$

He will remain unidentified, but works in the London Financial Center, where he has a keen perception. He has provided useful information in the past. He wrote, "A serious war of words has broken out between Draghi and Weidman, head of the Bundesbank, making the September 6th Euro Central Bank meeting quite challenging. Draghi probably knows that the German Constitutional Court is either going to refuse to ratify the European Stability Mechanism (ESM), or more likely ratify it with such conditions that it puts the shackles on the politicians and EuroCB. Draghi wants to be like Bernanke, preferring to override all rules and laws and simply print money. Interesting how Draghi chose not be at Jackson Hole but Weidman gave a speech. We are at a fork in the road, with no good alternatives. Let sovereigns and banks default, or print and watch stagflation take place to where consumer and corporate defaults. The PIGS sovereign debt picture is bleak. A ripe EUR 74 billion of Spanish bank deposits left in July, which is 5% of the deposit base and 7% of their national GDP. They have 2.7% inflation in Spain when the economy is contracting at minus 2%. The Keynesian experiment is already over in Greece and Spain. The regions are asking for a massive bailout as they face bond redemptions. In Germany the inflation rate is running at 2.2% inflation. Across the entire EuroZone, inflation runs at 2.6% where there a recession worsens. Santa's currency induced inflation is here and now. Greece needs to find another EUR 14 billion in savings to win the third bailout tranche by end of September. This can only be done by cutting significantly into the wages & pensions & benefits of the civil service and military. Good luck with that. I believe the decision regarding Greece and the ESM is known to the Powers That Be and they are now on their world tours passing it on."

◄$$$ GERMANY AND CHINA AGREE ON A PLAN TO SETTLE MORE TRADE IN CHINESE YUAN AND EUROS. THEY MOVE AWAY FROM THE USDOLLAR IN TRADE SETTLEMENT STANDARD. ONE MORE CASE OF MOVING PARTS ISOLATING THE CORRUPTED TOXIC USDOLLAR SATURATED IN DEBT. $$$

Germany and China plan to conduct an increasing amount of their trade in the Euro and Chinese Yuan currencies. The two nations announced the accord in a joint statement after talks between Chancellor Angela Merkel and Chinese Premier Wen Jiabao in Beijing at the end of August. They issued a brief statement to this effect. The communique also stated that both parties welcomed investments in China's interbank bond market by German banks. The German and Chinese banks will make moves toward the settlement of business in the Yuan currency on an increasing basis. Also, cooperation will come for the issuance of Yuan-denominated financial products in Germany. See the CNBC article (CLICK HERE). Contrast to the non-existent progress and sharp friction with the USGovt meetings held in Beijing.

◄$$$ HILLARY WAS SNUBBED IN BEIJING, BUT THE GERMANS MET FOR CONSTRUCTIVE MEETINGS. WITNESS A 180 DEGREE SHIFT AS THE AMERICANS ARE THE NEW PARIAHS ON THE GLOBAL STAGE, BEARING THE LOAD OF ONE HOTSPOT CONFLICT AFTER ANOTHER. CONFLICT IS THE ONLY ITEM ON THE TABLE WITH THE USGOVT DELEGATIONS. SNUBS HAVE BECOME STANDARD LIKE AT THE G-20 MEETINGS. $$$

The visit to China by Secy State Hillary Clinton turned into a fiasco. She argued with the Chinese over a long list of intractable issues, where no compromise appeared possible. China held a firm great wall against US positions and initiatives. The hot spot topics were Syria, Iran, North Korea, and the territorial disputes in the South China Sea. Past conflicts continue on the themes of currency manipulation and copyright violations. The US has sided with the Philippines on the Scarborough Shoals conflict. The US wants more mediation and usage of the ASEAN to settle disputes. See the Asia Times article on the regional dispute centered on these roiling waters (CLICK HERE). No longer does the USGovt attempt to sell Boeing aircraft, computer software, or nuclear power plants. The Google battles have turned to a higher level and higher pitch of conflict. The futility and distance were so great that Vice President Xi Jinping, possibly the next leader of China, cancelled the meeting with her.

The Jackass really questions Hillary's qualifications for New York senator. Being a dark special projects manager for Clinton in Arkansas, then First Lady in the White House do not qualify. Even her brief tenure as senator seemed inadequate to serve as emissary for the nation. The Jackass view is that any high level talks should focus on returning factories with Western investment concerns back to the United States, where jobs are urgently needed. The Administration talks about jobs, but sticks with its agenda of making conflicts, escalating them, then painting other parties as rogue nations. The contrast on meetings held with German Chancellor Merkel over projects and progress is stark and not flattering. See the Zero Hedge article (CLICK HERE).

A comment came from a source who works in a global consultancy. He wrote, "The Chinese have marked the USA for a takedown and takeover. The decendents of the coulee (Kuli) slave labor that built the infrastructure in the early days are now coming back to take what they deem to be theirs. It is regrettable and very dangerous to witness the USA and its Bill of Rights being destroyed. As always, the real enemy is within. We are all going to pay an incredible high price for the West's unmitigated arrogance."

◄$$$ ON AN INCREASING BASIS, VETERANS COMPREHEND THE WAR ON TERRORISM PLAYED OUT IN AFGHANISTAN IS A GRAND LIE. THE LEADERS ATTEMPT TO REDEFINE WHAT PATRIOTISM MEANS. THE USARMY GUARDS THE POPPY FIELDS WITH PRIDE. NARCOTICS SUPPLY SERVES AS THE LIFELINE OF LIQUIDITY TO THE BIG US-BANKS. THE USECONOMY HAS A STIMULUS PACKAGE, CALLED ENDLESS WAR. TRAGICALLY, IT IS DESTRUCTIVE. $$$

Methinks Clint Eastwood has more fans than Barack Obama. At least we know the full Eastwood identity. Bear in mind that images are powerful, like in political cartoons (see Boss Tweed in late 19th Century US). In an environment where more soldier suicides take place than battlefield deaths, they speak out. See the real chair dangling from an attack helicopter, and a mock photo of an empty chair suspended from AirForce-1. It is the president's personal campaign shuttle for speeches and fund raising. The President could easily be accused of going AWOL, with more vacations and golf days off than any past president. His wife has spent more on tours than her two predecessors combined. His perceived job since March has been to raise funds and win re-election, rather than comply with leadership duties. Let's see if the next election in November is rigged, as many pieces are in place, like making vote challenges illegal and issuing a contract to a Spanish firm owned by George Soros to count the votes. The gross mismatches of exit voting polls versus precinct votes conducted in Ohio and Florida show gross violations in the corrupted elections of 2000 and 2004. The historical correlation of exit polls and precinct votes is over 95%, the highest of any paired series in my professional memory. But not in Ohio and Florida, the two states targeted for vote rigging since big critical swing states. The United States cannot even count its own votes submitted, in a burlesque of democracy with vote rigging ala Banana Republics. The USMilitary Veterans have become a vocal source of criticism. See the Veterans Today article about the lies behind the war (CLICK HERE).

 

Capitalizing upon the citizens without jobs, the USGovt offers an education plan after military service ends, a recruitment device extended in a very bad USEconomy. Of course, the USMilitary reserves the right to put the soldiers back on the next tour endlessly, even if psychologically drained. That is precisely what has happened, the basis of some movies even. Also, the soldier might attend college after service, but without legs. Notice the stimulus applied to the defense contract sector and to suppliers for bullets and other ordinance. The USArmy no longer hides the fact that a chief duty in Afghanistan is to guard the rich poppy fields, whose narcotic final product sustains the big US banks with urgently needed funds to ensure liberty and preserve the American way of life. They do hide the 100 lbs of narcotics in every soldier coffin returning stateside. An article that explains the angst and anger has been written by Paul Farrell, a retired USMarine. He is incensed that soldier suicides outnumber war deaths. He cites 18 war veterans kill themselves every single day, an epidemic. The war costs well over $1 billion per day, with an estimated $30 billion per year stolen by the service contract team led by Halliburton, which had a big hand in the Deepwater Horizon sabotage in the Gulf of Mexico, and probably the Matt Simmons death. See the Market Watch article (CLICK HERE).

The War on Terrorism is phony, and provides an effective smokescreen to cover the attempt both to control narcotics in Afghanistan and crude oil in Iraq. In an interview from 2007, the four-star General Wesley Clark said that he was told at the Pentagon that the USGovt had decided to take down seven countries in five years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran. The motivation, he claimed, was to control the region's oil, not to fight terrorism. See the YouTube video clip (CLICK HERE) before it is yanked.

◄$$$ A FOOTNOTE ON MANUEL NORIEGA, DEPOSED LEADER OF PANAMA. THE SLIVER OF A NATION FLOURISHES AS A LATIN AMERICAN BANK CENTER THAT IMMEDIATELY IMPRESSES ANY TOURIST. A TRUCE WAS STRUCK WHEN THE STRONGMAN LEADER WAS DEPOSED BY A USMILITARY ACTION OF SPURIOUS BASIS. THE STORY BEHIND NORIEGA REMAINS SHROUDED IN MYSTERY AND SPECULATION. $$$

Noriega did not learn the fine art of diplomacy. An enemy of Papa Bush, the unavowed nazi son of Prescott Bush, who could have been executed by Franklin Roosevelt for sedition and treason in a failed nazi coup d'etat, Noriega angered the narco baron back in the 1980 decade. So Bush created a pretense for a brief war skirmish in Panama to remove Noriega. A closer investigation reveals that Noriega held some blackmail over Bush, as he threatened to expose a catalogue of photos showing Papa in warehouses of stacked packets of cocaine and heroin, standing next to USMilitary generals, all smoking cigars and laughing. The Jackass has met a man with Canadian Military security experience at a Toronto conference, who has personally seen the warehouses. Any broad exposure might have caused a bit of bad publicity for the old Papa. Noriega had a larger plan to remove the USDollar from usage across Panama, including their banking system. He was thwarted. Many observers might be caught in a celebration when Papa enjoys his own passage into the Bowels of Beelzebub in the next world.

The nation of Panama is often called the Switzerland of Latin America. It contains more banks than one can shake a stick at, twice as many names as what the Jackass could recognize. My firm belief after numerous conversations on the ground with acquaintances in the City is that as part of the Noriega imprisonment (not a firing squad), the Powerz turned Panama City into a haven of banks where three groups live and operate in harmony. A No-Fire Zone was created, that parallels the Free Trade Zone, where all groups prosper and no bankers are killed. They are the narco barons from the USGovt security agencies, the Colombia narco drug lords, and the drug-free importers & exporters. The canal results in around $8 to $10 billion per year for the nation with a mere 3.5 million in population, which brings about crazy low prices for every product under the sun, from home electronics to clothing to shoes. Despite some setbacks from clumsy tax treaties that were never ratified, Panama in the Republic of Panama is flourishing.

◄$$$ THE WORLD TRADE TOWER AND THE PENTAGON EVENTS OF 911 WERE STAGED INSIDE ATTACKS TO EXECUTE A NAZI COUP D'ETAT AND DISMANTLE THE CONSTITUTIONAL REPUBLIC. NUMEROUS SMART AND INFLUENTIAL PEOPLE ARE BEGINNING TO SPEAK OUT, SINCE THE OFFICIAL REPORT IS SO FULL OF OMISSIONS, NONSENSE, AND PURE BULLSHXX. SOME IMPRESSIVE GROUPS LIKE AE1000 HAVE CONTRADICTED THE OFFICIAL USGOVT WHITEWASH REPORT FOR ITS SCIENTIFIC IMPOSSIBILIITES AND OUTRIGHT FICTION. THE ENTIRE EVENT SERVES AS A VERITABLE LITMUS TEST OF LOYALTY TO A NAZI REGIME CENTERED UPON ENDLESS WAR, NARCOTICS TRAFFICKING, AND BANK BOND FRAUD. $$$

The Jackass is steadfast in the claim of the World Trade Tower attack being staged by insiders, primarily USGovt security agencies and Wall Street bankers. The beneficiaries read like the Syndicate itself that holds USGovt and USMilitary and Wall Street power. Any criticism directed to me is like soft rain on an Irishman, hardly a loon. The motive was a seminal event that would serve as cover for the largest bank heist in US history, for $100 billion in bearer bonds, $100 billion in gold bullion, and $100 billion in diamonds. The timing of the event was driven by another hidden motive, to eliminate payout of the infamous $240 billion in Russian Bonds that were due the next day after 911. Those bonds were used to fund the failed attempt for Yeltsin to take control of Russia, to purchase Russian infrastructure, to buy their Treasury, and to pay off the Russian Military, with tentacles connected to big Western oil firms. On 912 (day after 911), for the first time in USFed history, the bonds were cleared anonymously by the central bank under a suspension of securities clearance rules, due to national security declarations. Numerous official agencies and syndicate players would have been exposed during a normal clearance procedure. The Eldorado Task Force was disbanded, its work halted, which was investigating the vast scheme of money laundering and other illegal activities. Many people from the 55 inter-governmental task forces were killed. Much of the evidence was destroyed in the World Trade Towers. Mission Accomplished.

The big picture motive on the US domestic front was to put an end to the Constitutional Republic, a mission accomplished. The Pentagon attack was also staged, to eliminate the release of a USArmy Accounting Office report on $2.1 trillion missing, stolen, or over-charged in defense appropriations over a 20-year period. A mission accomplished. At least fifty different items of information from subscribers, friends, acquaintances, colleagues, contacts who know others at the WTC site on 911, a military guy who was at the Pentagon on 911, and more paint a rather disturbing mosaic of a Coup d'Etat. However, no records are kept in my office or computer, all just chatter. The AE1000 group of brave architects and engineers continue to propagate the message that runs counter to the official  911 Commission fictional report. They are constantly harrassed.

The following is from a professional airline pilot named Philip Marshall with security agency experience, using a catchy "Big Bamboozle" book title (CLICK HERE). The videos on the event are without end in a long stream of bold clips. But a couple have been recommended to explain all in a mere five minutes, surely not possible, but a very good overview to grab your attention like a grip around your neck. See the YouTube (CLICK HERE and HERE). This special story above is brought as a commemorative item on the 11th anniversary of the grandest bank heist and biggest mass murder event in US history, which has changed the course of the nation into deep fascist territory. Another video was shown amazingly on the Public Broadcast System. It is a documentary about 911 by engineers and scientists disputing the official version, which has more holes in it than my 17-old T-shirt used exclusively for sweat sessions like housecleaning, gardening, or 2-mile runs. No longer are quality videos relegated only to the internet. See the PBS video (CLICK HERE).

Paul Craig Roberts has become an esteemed spokesman for the counter position against the ruling Syndicate. He is untouchable since of dossier and rank. He served as the Asst Secretary of Treasury for Economic Policy in the Reagan Admin, and as associate editor of the Wall Street Journal. Following 911, his doubts were immediate. For the Jackass, doubts came in a strong stream several weeks later when nothing made sense from sixteen corners, starting with the free fall of the towers. Roberts has for years been making powerful comments on numerous topics pertaining to the fading American Empire, with focus on the most important and controversial (third rail) concepts. He points out that the twin towers supposedly were taken down by commercial aircraft, but that they fell at rates dictated by the physics of gravity noted by free fall, a point the Jackass has made for 11 years. Yet the demolition of Building 7 at the World Trade Center was more obvious. He points out that driver's licenses of kids were found in the rubble, but not dozens of bodies, an absurdity on its face. He notes simultaneous air defense holes in the most advanced system on the planet. He notes the structural strength of the World Trade Center towers was sophisticated in design. He mentions the countless reports of explosions in the basement of the WTC towers, where the bank vaults were located. He almost chuckles at the usage of Osama bin Laden as boogeyman, whose face appeared on numerous video tapes. Almost all video releases were pronounced as fakes later by experts. But the most convincing small item is the discovery of thermite throughout the rubble, a powerful explosive ingredient with high tech nano makeup. The Boyz could not conceal the thermite. See the Global Research article (CLICK HERE).

Hundreds of eyewitnesses reported numerous explosions inside the World be-Trayed Center Towers on 911. The news media did an sturdy job of not following up with any of them. The official 911 Commission would not permit the New York City police captains or chief to add testimony either, who were frustrated to tell the story of the many explosions. All USGovt studies ignored them entirely. The wives of the WTC victims have been frustrated to tell their story in televised shows, routinely interrupted at the last stage by the USGovt security agencies. Several eyewitnesses have met with violent unusual deaths, much like the Grassy Knoll witnesses in Dallas in 1963. See the BrasscheckTV article (CLICK HERE). While 20 pages could be filled with compelling evidence to sway even the most ardent patriot, let it end here. Yet another anniversary has passed in commemoration. The lost lives were not to protect the sanctity of the nation, but rather to hide the bold power grab that dismantles the republic. The victims of the event are many. Their families live a daily horror from the grief and frustration.

The twisted defense is to label critics as unpatriotic, even terrorists. This bizarre Soviet style of attack continues with arrest and psychological treatment with heavy medication. In parallel, another twisted defense is to pursue on the financial front the funds of private citizens seeking safety like refugees in foreign lands. This Nazi style of attack continues with angles used as narcotics money laundering and terrorist funding. Witness the merger of Soviet and Nazi pathways for the United States in a systemic failure leading to the Third World. The Jackass has not wavered in this viewpoint since the Lehman Brothers seminal event of failure in 2008.

◄$$$ THE PRESIDENT OF THE ITALIAN SUPREME COURT IS TO REFER 911 CRIMES TO INTERNATIONAL CRIMINAL COURT. THE COMPLAINT CITES OPERATION GLADIO CONDUCTED IN PAST DECADES IN SOUTHERN EUROPE. $$$

As preface, recall that in 2007 a retired Italian Prime Minister went public to announce the bin Laden videos were made in a Milan studio. The Hat Trick Letter mentioned the story with details. The leaders of Italy are well versed in the US charades dressed as the War on Terrorism. Enter Ferdinando Imposimato, the honorary President of the Supreme Court of Italy, and former Senior Investigative Judge. He has presided over several terrorism cases, including the kidnapping and ultimate assassination of President Aldo Moro, the attempted assassination of Pope John Paul II, other political assassinations and kidnapping cases, even several cases against the Mafia. He is a former Senator who served on the Anti-Mafia Commission in three administrations. Imposimato is also a former legal consultant to the United Nations regarding institution of laws to control drug trafficking. He is a seasoned veteran of high repute and integrity.

In early September, Judge Imposimato stated publicly in writing that 911 was just like the a strategy of tension carried out in Italy. Refer to the USGovt security agency program to foment public reaction against communism, shaping attitudes. It was called Operation Gladio, a great success but led to exposure. Specifically, the former Italian Prime Minister, Italian judges, and the former head of Italian counter-intelligence admit that NATO, with the help of the Pentagon and CIA, carried out terror bombings in Italy and other European countries in the 1950 and 1960 decades and blamed the communists. Their motive was to rally people's support for their governments in Europe in their fight against communism. The blame was falsely placed on the Red Brigade. He is describing Operation Gladio, the infamous CIA program which served as their first highly effective sinister project to fan fear across Europe. See the Washington Post article (CLICK HERE).

A wave has begun. More rebuttals have come from Eastern Europe. The government of Hungary faces retaliation by the Powerz of Europe and the United States after dismissing both Monsanto and the Intl Monetary Fund from their country. They blame Monsanto for tampering with the food supply and the IMF for contaminating the banking system. It will interesting to watch the backlash. Maybe Hungary will be labeled a terrorist nation. In a couple years, all nations except the United States might be labeled as terrorists. The wave will surely gather momentum, as more nations perceive the United States as isolated, on the defensive, and weakened.

◄$$$ THE WESTERN BANKING SYSTEM IS DUE TO COLLAPSE. THE RISK IS NOT ONLY TO COUNTER-PARTIES BUT TO CORRESPONDENTS. A MINOR EVENT WILL TRIGGER THE COLLAPSE. ONE CAN ONLY SPECULATE AS TO THE EVENT THAT WILL CAUSE A CHAIN REACTION. PERHAPS THE POWERZ WILL ATTEMPT TO CREATE AN INCIDENT TO EXPLOIT, BUT WILL LOSE CONTROL. $$$

Consider the following Jackass speculation on events that lead to collapse through panic and persistent bank holidays.

  • A bank run and failure of a major Italian, Spanish, or French bank
  • Disruption to narco money laundering for Wall Street bank benefit by angry intermediary banks in Europe
  • A group of important gold depositor turn against the Syndicate and pulling the gold in Allocated accounts
  • Sabotage of a London financial firm by Arab investors from the Persian Gulf
  • An accident in offices close to Interest Rate Swap contract defensive grounds
  • WTexas oil price jumps to $110, causing cash settlement in any currency
  • An overly active USFed bond monetization that removes USTBond liquidity.

## MORGAN STANLEY IMPLOSION

◄$$$ A MORGAN STANLEY FULL COLLAPSE IS NOT LIKELY RIGHT AWAY. COLLAPSE WOULD MEAN A USTREASURY BOND DEFAULT AT THE SAME TIME. THE SYSTEM IS NOT READY FOR THE FULL COLLAPSE. EXPECT INSTEAD A RESTRUCTURE OR FAILURE OF SOME MORGAN STANLEY BUSINESS SEGMENTS. THE RISK REMAINS ACUTE FOR VANISHED ACCOUNTS. WITH A PLANNED DEMOLITION OR NOT, THEY ARE LOSING CONTROL. $$$

My expectation is that some important parts of the giant Morgan Stanley structures will break beyond repair soon. The financial conglomerate firm is very large, but much smaller than JPMorgan. The total MS collapse is not imminent, despite rumors from insider commentary and my own analysis. It will not happen yet, but some ugly developments will for certain. The conglomerate mini-monster is too broken, too big, too many moving parts, too many players, with insolvency persisting for too long. After much thinking, the Jackass position is that Morgan Stanley will not die a total sudden death, but rather a death of certain big components. It will require surgery to remove limbs steeped in gangrene. Staggering internal impact from broken parts, falling parts, and rotten parts will be sufficient to bring the New York quarters to their knees. The Boyz will try to control the failures, but they will not succeed. They wish to exploit the collapse, to bury derivatives and have them redeemed in a TARP 2 program, to transfer some derivative exposure to JPMorgan, to bury mortgage bond fraud, and to steal private accounts. In the works is highly likely a plan to consolidate Wall Street firms under the JPMorgan roof (essentially the USFed) and Goldman Sachs roof (essentially the Syndicate), with strong cables linking the two criminal organizations. If they attempt a controlled demolition, they will be in for a gigantic surprise. They will lose control. To be sure, they are running scenario games in simulation now. Unfortunately, they are losing control from the natural sequence of events.

Colleague and friend Rob Kirby offered a perspective that convinced me the Morgan Stanley collapse cannot occur quickly or perhaps very soon. He wrote, "The USTreasury has done tens of $trillions in derivatives with Morgan Stanley. I suspect MS is very likely holding and warehousing $trillions of US government securities. They will continue to hold these securities forever, because short term rates are nailed to the ground at zero and will never rise, so long as there is a USTreasury, an Exchange Stabilization Fund, and a Federal Reserve. Betting on the demise of MS is tantamount to betting on a public sovereign default of the United States. Both will no doubt happen in time. I just would not bet on it being imminent." That does not exclude an event such as a grand restructure of MS to achieve a goal, to run an agenda, to cover some rot and fraud while they address broken parts affecting the healthier parts of the giant firm. In the process, many private accounts could vanish. Any person with a stock account in a major US financial firm is at risk, and should deplete the account, remove the funds, and close it out. That includes both Morgan Stanley and Merrill Lynch, which operates under the Bank of America broken wing, full of wrecked parts and insolvent rot. These giants will surely attempt to re-hypothecate client assets in brokerage accounts. Get out!!!

◄$$$ EXPECT MORE BANK DEBT DOWNGRADES ON SCHEDULE OVER THE NEXT SIX MONTHS. THE SYSTEM LACKS HUGE COLLATERAL, WHICH WILL BE FOUND IN PRIVATE ACCOUNTS ACROSS THE ENTIRE GAGGLE OF CRIPPLED FINANCIAL FIRMS. IN PRACTICAL TERMS, MORGAN STANLEY IS A VAST MUTUAL FUND. ITS PRIVATE ACCOUNTS ARE VULNERABLE TO VANISHING. $$$

The Morgan Stanley breakdown of profits is surprising. Investment banking comprised a mere 11% of profit in 1H2012. The global wealth management and asset management was up to 50% in profit percentage. This is where the estimated 3.5 million private accounts lie at risk. They are as vulnerable as a bedsheet hanging to dry on the line at an Oklahoma home during an approaching tornado. They are like a stack of dollar bills on a backyard table on a winter day in Boston. They are like a pile of leaves in the canyons outside Los Angeles when the Santa Ana winds rise.

◄$$$ MORGAN STANLEY HAS BEEN PERMITTED TO TAP $48 BILLION IN A DEAL WITH CITIGROUP. THE TENTACLES USED TO HYPOTHECATE AND LAY CLAIM TO PRIVATE SEGREGATED ACCOUNTS ARE BEING EXTENDED. THE LOSS TO PRIVATE ACCOUNTS IS ASSURED. THE PUBLIC IS ASLEEP. THE EVENT IS COMING. WALL STREET IS TRYING TO BUY MORE TIME, BUT IN DOING SO IT MAXIMIZES THE EXTENDED LOSSES BY WIDER GRABS. $$$

The Wall Street Journal reported that in an agreement with Citigroup, access to $48 billion in former Smith Barney brokerage deposits will be made available to Morgan Stanley by year 2015. Expect the tentacles to be connected far sooner. Recall that MS is a merger of old Smith Barney and Dean Witter brokerage firms. Morgan Stanley and Merrill Lynch are the two brokerage giants on Wall Street. The firms Citigroup and Morgan Stanley agreed to value their Morgan Stanley Smith Barney brokerage joint venture at $13.5 billion. The amount favors the Morgan Stanley team, after months of dispute. The agreement paves the way for Morgan Stanley in coming years to take full ownership of the company at a favorable valuation. The deal will cause a Q3 writedown at Citigroup, since carried on its books at a higher value. Under the plan announced, Morgan Stanley wins access to a huge pool of deposits. Expect the timetable behind the closed doors and in basement channels to be more immediate.

Morgan Stanley clearly is attempting to gain access to ample liquidity, when deep insolvency is their enduring plague. There is no place for hope in the current environment. The risk is screaming loud that segregated client theft at failed futures brokerages such as MFGlobal and PFG-Best will leap to private stock accounts. The risk is for Morgan Stanley to create collateral grabs permitted by law within the giant financial firm, which lay claim to private brokerage accounts in order to sustain the vast hidden counter-party extensions. They must keep the great game going in the US financial system. Clients at the giant banks are not properly informed of the risks. The practice is sanctioned by the courts, and might be an ugly extension of the 1995 bankruptcy reform law. The regulators and exchange officials at the SEC, CFTC, and CME, together with the tilted court system have all proven that criminal fraud will not be prosecuted. See the Silver Doctor article (CLICK HERE). The private account theft concept is gaining publicity. Egon Von Greyerz at the Matterhorn Fund has seen the seizures of private Allocated Gold accounts, evidence with his own clients. See the King World News interview of Von Greyerz (CLICK HERE).

◄$$$ MORGAN STANLEY HAS BEEN USING ITS UTAH-BASED SUBSIDIARY AS A FOREX DERIVATIVE BUCKET SHOP. RECENTLY PLACED FOREX DERIVATIVES GREW $800 BILLION IN THEIR UTAH OFFICE, A SMALL AMOUNT BY DERIVATIVE VOLUME. $$$

A corresponding row appears for Morgan Stanley from each of the Office of the Comptroller to the Currency reports from 4Q2008 through 1Q2012. Refer to Morgan Stanley Bank NA in Utah. In 4Q2010, the Utah bank switched strategies completely, going from a mix of Interest Rate Swap and Credit Derivatives to almost exclusively Foreign Exchange contracts. Hence, these comprise comprise 98.8% of all of their derivatives contracts, held only by the Utah bank subsidiary. The Wall Street home office appears to be converting the Utah bank into a bucket shop operation. A review of exposure by product for the biggest commercial banks reveals that while virtually every single bank has a majority of its derivative exposure in the form of plain Interest Rate Swaps, on average accounting for more than 80% of total, Morgan Stanley at its Utah-based commercial bank Morgan Stanley Bank NA, has almost exclusively all of its exposure tied in with the far riskier FOREX currency contracts.

The volumes are enormous. Their exposure has shifted from $1.7 trillion to $2.5 trillion, or roughly 10% of the entire market for FX contracts. From the OCC report provided for 1Q2012, some losses were posted by the perfectionist braggart Goldman Sachs. Some very strange events occurred in 4Q2010, in the aftermath of the $8 trillion posted by Morgan Stanley in Interest Rate Swap contracts. It seems the two Morgan Stanley banks (based in New York and Utah) have different credit ratings. The internal MS counter-parties could be forcing a shift from one entity to the other in a notable arbitrage to sqeeze a few basis points of profit on utterly huge volume. Finally the Wall Street banks are receiving some unwanted publicity concerning betting the entire farm in 2010. The Hat Trick Letter reported on it and was not sitting in the dark.

◄$$$ JPMORGAN EVIDENCE REGARDING THE LIBOR SCANDAL WAS RAISED BY ROB KIRBY. MUCH MORE OCCURRED THAN MEETS THE EYE. JPMORGAN BROKE THE LIBOR BY BROKERING $TRILLIONS IN O.T.C. SWAPS. THE INSTABILITY OF THE USDOLLAR IS PLAYED OUT IN THE DERIVATIVES ARENA. THE ORIGINAL BREAKDOWN IN LIBOR MIGHT HAVE BEEN FROM JPMORGAN ACTIONS FIVE YEARS AGO. $$$

Rob Kirby has analyzed the LIBOR developments. As former bond desk trader, linked with derivative activity, he has strong experience. He disrupted the Wall Street operations by accusing them in the 1990 decade of creating phony USTBond demand. Kirby offered the following analysis, with minor edits for readability. The root of the entire LIBOR scandal was a fabrication conducted under the Exchange Stabilization Fund (the ESF run by USDept Treasury) utilizing the NYFed trading desk to broker $trillions of OTC Swap deals between the ESF and JPMorgan. Specifically they were short-term Forward Rate Agreements. The creation of the vast package of OTC Swaps compelled JPMorgan to buy the hell out of short-term USTreasury Bills, specifically 3-month and 6-month maturities. This took place in late 2007. The JPMorgan activity made the LIBOR appear to be broken, which manifested itself in the TED spread blowing out. The LIBOR is formally linked to settlement of the Treasury versus EuroDollar spread contract. To be exact, it is the difference in yield between 3-month USTBills and 3-month EuroDollar Future.

Consider some evidence in proof, as Kirby offers. The aberration first manifested itself as a 3Q2007 trading phenomenon. A clue is given when the underlying derivative contract accounting is examined. Kirby looked at the composition of the JPMorgan derivatives book during a control period 2Q2007 through 4Q2007. The Swap component under one year in contract duration from the JPM book grew from $25.2 trillion in 2Q2007 to $32.8 trillion in 3Q2007, before reverting back to $24.7 trillion in 4Q2007. That particular $7.5 trillion bloat in the JPM book, coupled with the plunge in rates and failing USDollar Index in 3Q2007 strongly explains how JPMorgan was a truly massive player interfering with the very short end of the curve, centered on the 3-month credit space. We can deduce that JPMorgan was an enormous purchaser of 3-month USTBills, almost certainly to serve as hedges for trades being conducted with the Exchange Stabilization Fund brokered through the New York Fed trading desk. This is what caused the blow-out in the TED spread as well as the EuroDollar Future/LIBOR spread, which together put the brakes on a major breakdown of the USDollar Index. Their book re-coiled three months later when these positions matured. One can conclude that management of the USDollar exchange rate involves both the LIBOR rate and the USTBonds. Instability in one arena spreads to another arenas. Thanks to Kirby for this bright light to explain the corrupted LIBOR.

◄$$$ MORGAN STANLEY DEPARTURES OF FUND MANAGERS OCCURED IN WAVES RECENTLY, OFTEN BLAMED ON TECH PROBLEMS. THE ACTUAL CAUSE IS MORE LIKELY GROTESQUE INSOLVENCY AND VAST HOLES IN THEIR BALANCE SHEET. ITS CONCEALMENT IS HARDER WITH EACH PASSING MONTH. AS RANCID ICING, THEIR CRAPPY INVESTMENTS IN FACEBOOK HAS LEFT OTHER HOLES AS WELL AS A STENCH. $$$

As many as 50 fund managers and key advisors at Morgan Stanley are on the verge of abandoning ship. They point to widespread technology problems that have made their jobs difficult. They manage tens of $billions, but a source puts the figure at $48 billion. They have taken steps to solicit legal counsel in order to work out a deal to retain their pensions. Executives are well aware of deeply engrained problems ranging from trading delays and problems with foreign currency transactions to inaccurate account statements and bounced checks, according to internal sources. The publicity has gone to the symptoms, while the cause of the problems might be deep insolvency and zombie conditions. See the Reuters article (CLICK HERE) and the Business Insider article (CLICK HERE). Never overlook the central role played by Morgan Stanley in the Facebook initial public stock offering. They were a leading underwriter. Their clients were saddled with over $3 billion in Facebook (symbol: FB) toxic stock that has lost over half its value. MS has its own exposure to FB stock losses. Expect lawsuits down the road. See the Forbes article (CLICK HERE).

◄$$$ MORGAN STANLEY HAS LOST MORE TRADERS TO MERCHANT FIRM MERCURIA. THE TREND CONTINUES, AS OUTFLOW OF CAPITAL IS MATCHED BY AN EXIT STREAM OF TRADING PROFESSIONALS. THE DAMAGE EXTENDS TO THEIR EUROPEAN OPERATIONS. THE ADVANTAGE OF STORAGE AND TERMINAL ASSETS IS LOSING ITS PULL. $$$

Three key Morgan Stanley gasoline traders in Europe will soon join Swiss commodity trader Mercuria. It is the latest Wall Street bank to lose traders to aggressive merchants. Morgan Stanley Managing Director Leo Sint Nicolaas, along with Sebastian Ferraccu and Louis Mitchell are expected to move from London to Geneva to work for Mercuria. The foul wind of insolvency has coupled with bonus caps, new USGovt regulations, and Wall Street job cuts. Banks including Goldman Sachs and Barclays have lost dozens of traders that include hedge fund managers. Several firms are restricted on trading limits and salaries. The expanding merchant dealers are not bound by such limits. Morgan Stanley is finally feeling the ill effects of publicized bonus caps at $125,000 along with diminished physical trading using old software. The firm also could be in the process of a partial sale of its mammoth commodity trading desk to the Qatar sovereign wealth fund. The news was first reported on SparkSpread.com. In May, Mercuria made a big bold move when it hired Barclays commodities trading chief Roger Jones, one of the biggest sector players in Europe. Until the last couple months, Morgan Stanley had a successful retention record that industry experts attributed to its physical assets. They own oil storage facilities, warehouses, and terminals. They are very valuable tools for traders, who can observe the intersections, the flow, the parties, the movement, and contracts. Once outside the giant bank, lack of visible access makes it difficult for traders to compete. See the Finance Yahoo article (CLICK HERE).

◄$$$ EXECUTIVES AT THE LONDON AND RUSSIAN SUBSIDIARIES OF MORGAN STANLEY ARE BUGGING OUT. THE RATS ARE JUMPING SHIP. $$$

Patrick Lynch is the head of European credit sales and trading at Morgan Stanley in London. He is joined by several other leading figures in departures at the bank in London. Fernando Ortega (head of emerging market fixed income sales and trading), Amanda Webb (securitization sales desk), and Janko Nedic (collateralized loan obligations) also have departed the firm. Morgan Stanley announced in August a plan to cut 1600 jobs amidst a steep decline in revenue from investment banking and trading. The figure amounts to about 2.6% of the entire employee salary base at the end of September. The formal terminations will take place in the first quarter of 2013 at all levels. Jason Kennedy is CEO of the London-based recruiter the Kennedy Group. He said, "Morgan Stanley after 2008 really has not come back. The big salaries are so high at that level. They have to thin out and they are cleaning house of the old regime." See the Bloomberg article (CLICK HERE).

Reuters in Moscow reports that both the Chairman and the President of the Russian division of Morgan Stanley are leaving the firm. The chairman of Morgan Stanley's Russian office, Rair Simonyan is leaving the Wall Street firm subsidiary. So is the bank's current president Yelena Titova leaving the Russian office. Simonyan is a former Rosneft executive whose team led the IPO for the top Russian oil producer in 2007. They are both stepping down. The Russian media has reported Titova is a candidate to head the All-Russian Regional Development Bank, a mid-sized bank owned by Rosneft. She spent 12 years at Goldman Sachs before joining Morgan Stanley in Moscow. Since the IPO, Rosneft has tapped Morgan Stanley for a succession of executives to run its finances. The current vice president for finance, Dmitry Avdeyev, served as co-head of investment banking at Morgan Stanley after a stint as CFO of oil services company Integra. See the CNBC article (CLICK HERE).

## UNITED STATES CENTRAL BANK INFLATORS

◄$$$ THE JACKASS WILL NOT GIVE EITHER THE USFED NOR CHAIRMAN BERNANKE ANY RESPECT FOR LAUNCHING A FRESH QE3 PROGRAM. IT IS HATCHED IN PURE DESPERATION. THEY WILL BUY MORTGAGE BONDS. THEY WILL CONTINUE BOND MONETIZATION WITH FOCUS ON A THRESHOLD ECONOMIC GROWTH LEVEL. THEY WILL TAKE SOME FOCUS OFF PRICE INFLATION. THE ECONOMIC GROWTH TARGET LIMIT WILL NEVER BE REACHED, SINCE THE 0% POLICY ASSURES SHRINKING PROFIT MARGINS, TERMINATED BUSINESS SEGMENTS, JOB CUTS, AND CONTINUED ECONOMIC DECLINE FROM CAPITAL DESTRUCTION. THE BERNANKE FED HAS OFFERED JUSTIFICATION OF PERMANENT 0% MONETARY POLICY. $$$

Bernanke has made ZIRP the permanent policy. Bernanke is proving his PhD thesis to be incorrect. The Gold Standard (not heightened liquidity) enabled the United States to emerge from the Great Depression. The bankers are a broken crew selling heresy and ruin, fast losing the public trust. The hype leading to the Jackson Hole Conference was more amusing and pathetic than hopeful and inspiring. The gaggle of banker losers went fishing, a gathering to congratulate each other for killing the global financial system and ushering in a powerful enduring recession. The attendees are stuck in apologist mode, having solved nothing with greater applications of the same toxic solutions founded in a debt elixir in medicine. The USFed is out of ideas, out of tools, holding a ruined balance sheet which will not be restored. These loser bankers do not even attempt legitimate solutions, choosing to sell power preservation schemes instead with heavy masks. These loser bankers choose instead their usual fare to work toward power preservation whose schemes are marred by yet more broad thick layers of paper mache covering the toxic sores of insolvency and lost legitimate income.

The Acting Man assembled some nasty illogical summary interpretations of the latest version of Bernanke apologist Fedspeak. They have four parts and make much sense to outline the heresy, not to sell it. 1) The money printing must have had a positive effect on the USEconomy, although not provable. To be sure, the in-house models say it was beneficial. Phony economic statistics help to verify the effect. 2) Nothing can go wrong. All the destructive tools are under control. The 2008 crash was a one-off accident. 3) The USEconomic outlook is gloomy. We remain puzzled that the recovery is not farther along, given our tried & true solutions. More time is needed for more of the same applications that do not work. 4) The USFed cannot do it alone. The USCongress must bring the deficit spending under control, but maybe more direct economic stimulus is a good idea. Discipline and chastity can be ordered later. What a total joke failure the central bank is!! See the Acting Man article (CLICK HERE).

Discussion of growth targets has turned absurd, since the recession is accelerating in speed. Discussion of bond buying shell game specifics has turned absurd, since the USFed has been buyer of over 80% of USGovt debt since 2010 during a foreign buyer strike. Discussion of inflation considerations and the ordinary deceptions has turned absurd, since the Consumer Price Inflation has been over 7% or 8% for years on end. Discussion of the stimulative effects of 0% has turned absurd, since it is a giant wet blanket that raises costs and shrinks profits, thereby killing capital through retirement of equipment in unprofitable business enterprise. Current monetary policy assures a greater and faster economic decline, where GDP minimum limits will never be reached. Discussion of the benefits of more printed money has turned absurd, as the nation slowly becomes wise to the sham and counterfeit to wealth. If dispensed money is not earned, the hangover arrives the next year or next decade, whose tab is due now. Discussion of the urgently needed spending restrictions imposed upon the USCongress has turned absurd, since they are deadlocked and should be disbanded. They are but an ineffective temple of beggars to banks and industry, whose main function has been to raise funds and win the next election. Discussion that relies upon keywords laced throughout commentary has turned absurd, since the entire vocabulary has suffered from propaganda in a vast dumbing down of the American people. The Bernanke Fed has offered justification of permanent ZIRP, a 0% monetary policy, never to end. His legacy is failure, along with Greenspan.

The Bernanke Fed will buy as an opening salvo $40 billion in mortgage bonds. Yet the sub-4% mortgage rates have done nothing to repair the wrecked housing market. Past mortgage bond purchases accomplished nothing. So the USFed will try it again, this time with more gusto, more crowds cheering, more lies on beneficial effects. The Bernanke Fed will target a level of US GDP growth, without realizing it will never come. The 0% rate will once again lift the entire cost structure, as reaction to the QE3 itself. His comprehension of economic dynamics is truly horrendous.

The central bankers realize they fight engrained problems of insolvency with tools designed to provide vast liquidity. Imagine giving a steak & potatoes dinner with a side of cherry pie and a glass of milk chaser to a man who is dying of thirst. It has not worked. It does not work. It will not work. In their conferences, they struggle to justify the continued application of extreme liquidity treatment like utter morons, although increasingly recognized as futile. The newest wrinkle in the mad professor scheme is the continue bond purchase to reach a minimum GDP, given minimal details by Bernanke. The Jackass insists that his PhD degree be revoked, as he has proven in his five years as USFed Chairman that liquidity does not provide remedy to an insolvent system today, nor did it provide the basis for remedy to emerge from the Great Depression. Instead, as contradictory thesis to the vapid treatise that supports his PhD degree in revisionist history style, it was the Gold Standard that permitted emergence from the Great Depression. The absent standard nowadays makes impossible any recovery today, since the new money causes spinning the gears in a broken locomotive that heads over the cliff. The USEconomy will continue its current path toward systemic failure, debt default, and chaos with martial law. Abandon all paper assets, including sovereign bonds bearing near 0% yield, subjected to inflation assault from QE bond monetization. Invest in Gold & Silver bars and coins, and take possession.

◄$$$ CAPITALISM IS A LOST ART IN AMERICA. EMBRACE OF THE FASCIST BUSINESS MODEL DOES THAT. THE FAILURE AND RUIN OF FINANCIAL MARKETS IS STARK, SURE TO SUSTAIN AN ECONOMIC DEPRESSION. $$$

The national economic hive is in its twilight phase, long past the point of remedy, due to two decades of ransacking the asset base and capital base. The nation no longer comprehends the basic concepts of capitalism, nor the direct implications of artificial low interest rate on cost structures and profit margins. Business formation through capital equipment layout is never discussed, just liquidity and putting money in the hands of consumers. Job creation would result with capitalist steps, but it does not with liquidity measures. Reduced tax burden is urgent. How heretic! Yet it passes for central bank leadership, like a pack of Politburo morons. Instead it embraces socialism and carries out fascism against a constant drumbeat of war, which even features appearances of military symbols at signature sporting events. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

The failure is stark and clear. Monetary policy has gone amok, pressing harder on the same failed levers. They have no solutions, so they return to the same spot, eager to devour like dogs the vomit they emitted a year ago with a failed QE2. What the world is witnessing is the official institutionalized ruin of sovereign bond markets in the United States and Europe, which serve as foundations for the USDollar and Euro currencies. Both currencies are doomed to the dustbin of history, all in time, like soon. Central bankers have lost all credibility, cornered without options in a public way. Central banker appear writhing flailing wiggling as they apologize for lack of solutions, while their integrity vanishes like an oily mist off an overused printing press. Central banks are presiding over wrecked bond markets, wrecked currency markets, propped stock markets, and a divergence gold market (paper versus physical). They are at the helm of giant vessels, which are sinking from their own ordered liquidity measures, taking on water, unable to negotiate around icebergs.

◄$$$ THE FOCUS OF ATTENTION WILL SHIFT TOWARD THE GOLD STANDARD TO ANCHOR THE MONETARY SYSTEM GONE ADRIFT AND TO ADDRESS FEDERAL DEFICITS GONE PARABOLIC. THE FOCUS WILL CENTER ON HOW AN ENTRENCHED ZERO PERCENT INTEREST POLICY UNTIL 2015 IS CAUSING RISING COSTS, LOWER PROFITS, SHUTTERED BUSINESSES, AND LOST JOBS. THE FOCUS WILL CENTER ON HOW THE USFED BOND MONETIZATION IS UNSTERILIZED, CAUSING THE RELEASE OF PRICE INFLATION, BUT OF THE WORST KIND, ON THE COST SIDE. $$$

A negative inflation adjusted interest rate serves as the primary cylinder to the Gold Bull market. The 0% official rate makes such negative real rates all the easier to comprehend. The Gold Standard would enforce traction, along with industry long ago forfeited to Asia. The nation neither has sound money (for healthy circulation) nor factory income (for legitimate income). The artificially cheap money helps business to expand their overseas operations, borne by numerous reports. The nation is hopelessly dependent upon printed money and government handouts, as it slides into a Banana Republic shadow, populated by economic ignoramuses, suitable to serve as perfect debt slaves. Only Gold & Silver investors will survive the storms, but they will be branded as rebels.

A vicious cycle has been institutionalized, dictated by ZIRP, the zero percent interest rate policy. The hapless clueless wayward USFed has decreed that bond monetization will continue until the USEconomy grows above some empty-headed decreed level. This is death by decree by a myopic professor whose doctoral degree is losing stock with each passing month of no recovery. If the 0% rate assured a slow erosion of capital, then the overall economy will continue to decline in large part from the artificially low interest rate. The effect of ZIRP is to guarantee a systemic failure if extended indefinitely, like it is now. Blame can be placed upon Europe, but in reality they are committing the same cardinal sin to price free money in the United States and England. The universal culprit is central bank policy and the 0% mantra. It does not stimulate. It smothers capital and entire economies.

The Gold price responds to the installation of hyper monetary inflation engines, the extreme dependence upon them, their amplified usage after previous failures in their application, and the absent comprehension of the extreme detrimental effect on capital. As Weimar features are kept in place, the Gold price will eventually be released when the funnels of printed money spew more freely into the system. As the big banks and central banks exhaust their supply of widget plugs. When they run out of short-term USTBills, commercial paper, and money market funds, the flow of new money will enter the Main Street economy in direct unsterilized form. That time draws near. For an enlightening brief essay by Charles Hugh Smith, about the USFed as parasitic wealth transfer machine and leader of the financial crime syndicate, see the Of Two Minds article (CLICK HERE).

◄$$$ THE HIDDEN FEATURES OF THE QUANTITATIVE EASING SNAKE OIL SOLD FOR ALMOST THREE YEARS PERTAINS TO STERILIZATION, OR LACK OF IT. FEW ECONOMISTS EVEN DISCUSS IT, SINCE IT REVEALS THE RISK. FOLLOW THE PATH OF PAST QE PROGRAMS TO SEE THAT THE USFED HAS TURNED DESPERATE ENOUGH TO INVITE INFLATION FROM UNSTERILIZED BOND BUYS, HOPING ERRANTLY THAT IT WILL FOSTER ECONOMIC GROWTH. THEY ARE AT THE LAST WATER STATION ON THE RAILROAD PATH OVER THE CLIFF. BY ORDERING QE3 WITHOUT WEARING A MONETARY CONDOM, THE USGOVT AND ITS BANKER HANDLERS MIGHT BE CONTENT TO PENETRATE ARAB NATIONS, WHO IN TURN AFTER DISRUPTIONS ATTACK THE SACRED SHRINE EMBASSIES. $$$

QE1 and QE2 were unmitigated disasters, unless the objective was to replace the missing USTBond buyers on the world stage. A buyer strike occurred, and the Bernanke Fed stepped in to serve as buyer of last resort. The first two Quantitative Easing programs were done with blatant bond monetization of both USTBonds and USAgency Mortgage Bonds, using printed money with no protection from sterilization. That means the money did not come from other sources, like selling assets to unsuspecting fools willing to pay good money for toxic bonds blessed with Keynesian holy water. The money came from the Printing Pre$$, and thus was unsterilized, from the high risk pond. There was no protection from monetary ills of infected new money, which by any other name is toxic paper. The result in 2010 was a swift rise in commodity prices, most noticed in the food & energy ledger item. The uprisings around the world were largely in response to higher food prices. The Arab nations are among the poorest, spending over 80% of income on food. Thus the instability hit suddenly. The USDollar fell in stride, leading to higher commodity prices, and the Gold price rose handsomely to the $1900 high. These were QE1 and QE2 effects. To the rescue to force an artificial USTBond rally was the handy Interest Rate Swap derivative contract, well cited and analyzed by the Jackass. Broad global pressure brought the QE1 and QE2 to an end. Criticism came from the poor nations and from USTBond creditor buyers, who saw their reserve assets decline from the USDollar downward effect.

Next on the central bank heretic path was Operation Twist. It had many features. Let it be known simply that the USFed sold its short-term USTBills in order to supply sterilized funds with which to purchase long-term USTBonds. The twist had an easy backdrop, in unlimited ease to produce the USTBills, since the cost of money is 0%. No need to use artificial demand, not when money is free. In the twist, the USGovt debt moved more toward the long dated maturities to capture the lower rates. Financing the vast expanding never-ending huge USGovt debt and annual deficits is a high priority. So do it with that artificial cheap sub-2% rate on the long end. Also, Operation Twist had a more hidden motive to enable the foreign creditors to dump their USTBonds. All conversions were done in secret under the table. The volumes were very big. The deceptions were equally big. At the same time, the USFed and USDept Treasury were actively pursuing a sickening policy to dampen final demand, to bring down the crude oil price and other important commodity prices. However, their formula results in capital destruction, reduced economic base, and more distress to the federal deficits. These bankers have no solutions, only measures to preserve their power and privilege. They wish for total power in a wrecked system, declared during emergency sessions.

The newest QE3 is to be pure unsterilized bond monetization of both USTBonds and USAgency Mortgage Bonds. The talk is open about targeting growth and permitting more price inflation. The hope and prayer is that inflation causes economic growth, an utterly lunatic concept, but a central plank in monetary policy. The public is beginning to comprehend that no solutions are available. It is not surprising that hope and prayer are relied upon, since for years they have been spouting heretical notions how growth causes inflation, the flip side to their stupidity and propaganda. Watch the same symptoms return that occurred in QE1 and QE2, more commodity price inflation (especially food & energy), and more declines in the USDollar. As counter weight, the Gold price will attack the $1900 price highs again. A sinister notion comes to mind. The Arab nations that suffered the worst impact from rising food prices are almost all in a major stir of instability and revolt. See Syria, Libya, Tunisia, and Egypt. Sure glad not to be working in those embassies in any capacity, even in laundry, meal, or bedpan service.

 

More hidden is the instability of Saudi Arabia. So if the Arab nations are all turning away from the United States, developing other loyalties, the USGovt and USFed might be making conscious decisions to serve up nasty monetary Molotov cocktails in the form of unsterilized QE3 through inherent bond monetization with new free money. Arabs be damned! Not my words or thoughts, but the US Elite. The Western Banker Elite is willing to destroy the rest of the world and the USEconomy in order to preserve their power. The free helicopter inside the cereal box probably does not fly, and the many types of tasty currency kernels are easily counterfeited.

◄$$$ SOME SCATTERED THOUGHTS ON QE OR NO QE. THE DESPERATION HAS NO SOLUTIONS ON THE CURRENT PATH. THE WITCH DOCTOR LEADS THE ECONOMIC PATIENT TO STUMBLES AND EVENTUALLY A TUMBLE INTO THE DUNGEON OF THE THIRD WORLD. THE INFINITE FUNCTIONS ARE COMING INTO VIEW, NEED TO VASTLY OUTSTRIP SUPPLY. WITNESS WEIMAR NATION, IF NOT WEIMAR WORLD. $$$

An excellent point made lately is that the USFed might be out of USTBills to spend in any further Operation Twist deception. Thanks to Turd Ferguson and Zero Hedge for the revelation. That means any new heavy duty QE will soon be pure unsterilized maneuvers. My belief is that Bernanke is scared witless of ripping another big upleg in food & energy prices. The entire world cast disdain at him and the USFed in 2010 for causing global price rises in the essentials. It really whacked the poor nations. The guilty party was very very clear, the United States. The part vehemently disliked by the Jackass is that no global parties criticise the wars which are financed by QE funding. My hatred of war is constant. The Vietnam War started a process to kill the USEconomy, by opening the door to 1970s price inflation, then labor union demands and cost of living raises, then offshored manufacturing deals, finally Chinese foreign direct investment, with climax in asset bubble dependence for income.

A scared Ben and a devious USFed will do more overt QE when absolutely desperate. They have turned absolutely desperate since the USEconomy is accelerating into the dumpster, and housing is a wrecked market. Few noticed how in July vs July, the California sales tax receipts went down 40%. That is a death knell of clear type. Whatever the USFed does will be an open demonstration of its increasingly powerless position. Their balance sheet is ruined permanently, since housing will not revive. Be on the watch for strange talk of a USFed that might resign its contract, due to a ruined balance sheet and the door closing on additional 22 $trillion grants bestowed to bankers in two tranches. See the Ahead of the Herd article (CLICK HERE). The step would lead to a USGovt debt default. This thought was first raised by my gold trader source The Voice when Lehman failed in 2008, as he was thinking forward aloud.

The central bank owners might someday pull out and leave the USGovt in debt default with contempt. It might happen that way. The Jackass sees no virtue, no solution, no hope, and no panacea with QE. The financial markets love it, see a rise in asset prices as inevitable and virtuous, like dogs in tow of the dumbest breed (ironically the Afghan dog breed). The newest QE will only hasten the USEconomy collapse from raising costs without rising income. The amplified effect of more rapid profit margin erosion, job cuts, and capital retirement will hasten to kill the system. The big question in my mind is whether the nation of dullards will recognize the culprit to be the QE brought by the central bank and its fixed 0% official rate. Probably not, since too dumb on economics concepts. The USFed is like a witch doctor and the USEconomy as patient a stumbling drunk repeatedly walking into walls, falling down steps, being punched by angry foreigners. The patient will fall into the dungeon, otherwise called the Third World. The procession is inevitable but not perceived. The destructive monetary policy is a perfect world for Gold investors, all forces pushing upward the price.

The Titanic will have infinite coal for its engine furnaces and infinite buckets with which to remove water from the lower decks. Bernanke might promise that the Titanic will have a new and improved engine, from perceived fresh capital infusion. Better yet, the Titanic will have miraculous patches from an unlimited capital repair kit. Pick your favorite metaphor, but it is all illogical, impractical, lunatic, and pure folly. They will work toward infinite replenishment for infinite losses. In math terms, this as a problem featuring INFINITY MINUS INFINITY. It is hardly clear at all. The math treatment is to take the DERIVATIVE VERSUS THE DERIVATIVE, not derivative contracts, but rather rate of change of each component flow. So consider the rate of change for supply of replenished funds, versus the rate of change for growing losses. The Jackass is a guy well versed in mathematical treatment of infinite functions. Math is the Queen of All Science. The treatment is called L'Hopital's Rule, and it has several infinite versus infinite applications. My bet is the losses overwhelm replenishment on volume, rate of change, and all else. The losses come from the broken system and the replenishment comes from human operators with limitations in perception. The Weimar chapter taught us much about human operators, but this time the Weimar room is global. The public and investment community are about to receive an education on infinite functions butting heads in deep conflict. Going puff will be life savings and pension systems, which will follow the lost home equity and lost job security. Going up will be Gold & Silver holdings, kept safest outside the US jurisdiction where the nazi bankers rule.

◄$$$ BERNANKE IS WITHOUT TOOLS. THE MATH IS SCARY BEHIND THE MECHANICS OF QE3. BERNANKE'S HANDS MAY BE TIED. OPERATION TWIST IS ALMOST OUT OF AMMUNITION, INDICATING MORE UNSTERILIZED BOND MONETIZATION LIES AHEAD. THAT IS WHY THEY MENTION STERILIZATION, SO THEY CAN DIRECTLY LIE ABOUT IT AND ASSUAGE FEARS. THE USFED IS GRADUALLY BECOMING THE SOLE HOLDER OF LONG DATED USTREASURY BONDS. HOWEVER, A QE3 PROGRAM WILL BE BOGGED DOWN BY THE REALITY THAT THE USFED MIGHT REMOVE THE LONG DATED USTREASURY BONDS AND LEAVE NOTHING FOR THE FREE TRADING MARKET, AS IN ZERO LIQUIDITY. $$$

The USFed has been forced to promise ZIRP past year 2015, since it might be forced to sell longer dated bonds from its SOMA portfolio. The System Open Market Account valued at $2.654 trillion is a portfolio of USTreasury and Federal Agency securities, foreign currency investments, and reciprocal currency arrangements. The devotion to QE removes all possible rate hikes in the next 5 years. The USFed can mollify some unsterilized risk by selling into the SOMA account, but secretly of course. In effect, the QE3 will have a hidden Operation Twist 2 feature. The USTreasury curve will work to flatten further from OpT2, but work to steepen the curve from QE3. Some analysts expect QE3 in unsterilized form to bring down the long bond yield, like the 10-year to below 1.5% in yield. QE3 will surely provide demand to cover the $1.3 trillion in new USGovt debt supply. The USFed will essentially monetize all new debt issuance in USTreasurys. If global revolt occurs, with Russia & China selling oil outside the USDollar, with trade payment systems bypassing the USDollar generally, with animosity growing from Iran sanction workarounds, then look for the TNX not to come down to 1.5% but to rise above 2.0%. It has been on the rise lately, rising past the 1.8% level after having touched the 1.4% low. More stress has gone to the IRSwaps buttresses.

The USFed as taking over the role as the primary holder of public debt. Some intrepid research by UBS analyst Michael Schumacher reveals that the USFed owns all but $650 billion of 10-year and 30-year nominal USTreasurys. OpTwist 2 is already absorbing all of the long dated maturity supply. Herein lies the powerful ugly rub. UBS research stated, "Taking out say, $300 billion in long-end Treasurys almost certainly would put tremendous pressure on liquidity in that market. Ploughing ahead with a large, fixed size QE program could cause liquidity to tank." A full blown Large Scale Asset Purchase (LSAP) program that focuseds only on USTreasurys will very likely cause disappointment fast, since the USFed will certainly realizes that it has left only $650 billion in total 10-year plus 30-year bonds available in the entire private market. The USFed would become the USTBond market, resulting in a disaster.

Bill Gross of PIMCO wonders aloud if the USFed will just monetize the Mortgage Backed Securities market. However, the math works against the central bank there also. Directing purchases toward MBS bonds implies that the new QE program would need to be drawn out in time. Monthly supply of conventional 15-year and 30-year USTBonds and 30-year GNMA has averaged about $85 to 90 billion over the past year. The USFed has already committed to buying about $25 billion. They might be able to buy another $40 billion without disrupting the market. Assuming that the USFed program in QE3 commits to a $600 billion program with 75% in MBS, it would need to buy $450 billion in mortgages. The math dictates the program would need to last nearly a year. UBS does not believe the bond market would respond well to that prescription from Bernanke, the mad doctor. The math does not enable Bernanke to engage in anything remotely resembling the $1 trillion LSAP in a new fresh QE3 that has been whispered, desired, and depended upon. Expect the paper mache artisan to talk a lot and act less, with disappointment certain to follow. A new version of FedSpeak is coming, centered on deceptive volumes and deceptive lack of sterlization. The benefits of the bond buying program will be very limited. See the article by Zero Hedge on the scary math of QE3 (CLICK HERE).

◄$$$ A BOND YIELD VERSUS STOCK YIELD MAJOR CROSSOVER IS UNDERWAY. IT SIGNALS TREMENDOUS PROBLEMS LIKE DURING THE GREAT DEPRESSION. NOTICE A VERY OMINOUS SIGNAL. THE MAJORITY BELIEVE THAT 0% (ZIRP) IS STIMULATIVE. IT IS INSTEAD CAUSE FOR RUIN. PREPARE FOR A GREATER DEPRESSION. $$$

Gary Kaminsky of Neuberger Berman and later Cowen is a regular on CNBC. He showed a chart which reveals 140 years of financial US history through the graphic depiction of USTreasury yields versus stock dividends. This chart embeds much economic and financial history. The direst of signals is the crossover, where dividend yields are rising above USTreasury yields. The very rare event is happening, in progress in 2012. He concludes the meaning is dreadful terrible and calamitous, either a great rally in dividend stocks or the beginning of something more ominous. The previous time this crossover appeared was 1928, the spawn of the Great Depression. Another noted crossover to the upside occurred in 1951, the year of the famous Treasury/Fed Accord, when the USFed regained its independence following World War II. The Vietnam era and Bretton Woods era began, with grand USTBond yield spikes, hardly evidence of stability. Prepare for the Greater Depression, well along since the tech-telecom bust in 2000, the housing bust in 2007, and the Lehman bust in 2008, followed by the endless ZIRP that began in 2009, sure to extend to 2015. Think nasty harsh gripping Greater Depression. See the spike in 1980 and the circled crossovers in 1930 and 1951 to capture the year markers.

◄$$$ BIG BANK CARRY TRADE IS PRECARIOUS. THE BERNANKE ASSURANCE OF EXTENSION INTO 2015 IS A MESSAGE DIRECTED TO THE BIG BANKS TO STAY THE COURSE SAFELY ON USTBOND CARRY TRADE. THEY ARE NO LONGER LENDING VEHICLES, BUT SPECULATIVE ENGINES. THE MESSAGE UNTIL 2015 REALLY MEANS FOREVER, AS THE USGOVT DEBT AND BIG BANK CARRY TRADE HAVE LOCKED THE USFED IN THE ZIRP CORNER ON A PERMANENT BASIS. DISTORTIONS ARE PERMANENT AND RUINOUS. $$$

The big banks are running USTreasury carry trade in overdrive. They are not lending to customers. Instead they are just running the arbitrage of borrow short, invest long, exploiting the 0% borrow side and investing in the long maturities. Unfortunately for them, diminished returns have come with the sub-2% TNX (10 year) and near-3% TYX (30 year). This is quite a transition from normal operations, to borrow short and lend long to actual customers, those old fashioned borrowers who used to dot the economic landscape. The assurance of an extended official near 0% FedFunds rate to 2015 is telling. It should be jumped on as a critique of central bank failure globally. The message of extension to 2015 is directed at the bank carry trade participants. They cannot be pushed off the track. Any offical rise in rates by the USFed would smash not only the USGovt borrowing cost structure but the big bank UST carry trade. The entire bond market and financial foundation for the USDollar is so screwy as to be indescribable. It is hopeless beyond repair after four years of ZIRP and all its distortions. As the USTBond Tower of Babel falls, the Gold price will rise as bonafide safe haven. As the Interest Rate Swap contracts implode to cause a Black Hole, the Gold price will rise like a phoenix.

## EUROPEAN CENTRAL BANK INFLATORS

◄$$$ MARIO DRAGHI HAS DONE A POWER PLAY WITH HERETICAL BASIS AND BIG DECEPTION. HE WILL IMPOSE AN UPPER LIMIT ON BOND YIELDS, A CLEAR MARKET INTERFERENCE. HE PROMISES THE BOND PURCHASES WILL BE UNLIMITED, YET STERILIZED. TRANSLATE THAT TO MEAN OPEN ACCESS TO COMMIT AND RUIN UNLIMITED EUROPEAN ASSETS WITHIN REACH. DRAGHI LUSTS FOR EQUAL MONETARY POWER AS THE USFED. $$$

As September dawned, the Euro Central Bank head Mario Draghi carved out a highly destructive but universally praised plan for unlimited bond purchases of toxic Southern European government debt. All Hail Mario! He promised to enforce an upper barrier on sovereign bond yields, thus relieving all bond market distress and to keep them calm. Except his formula is hyper monetary inflation. This means a limit on PIGS bond yields will be enforced, which will override the free market, as in market controls. He wants to regain control of interest rates in the EuroZone, to directly fight speculation of a currency breakup. Draghi lusts for the same powers as the USFed, to print money and buy bonds without daddy's permission, and to override financial markets like god-men. He said, "The program will enable us to address severe distortions in government bond markets which originate from, in particular, unfounded fears on the part of investors of the reversibility of the Euro. Under appropriate conditions, we will have a fully effective backstop to avoid destructive scenarios with potentially severe challenges for price stability in the Euro area." He calls monetary inflation without controls effective, like the heretic central banker he is. The EuroCB held its benchmark rate at 0.75%, a record low. Draghi has erected a Weimar defense for toxic PIGS bonds. Witness the construction of Twin Weimar Towers at the USFed and EuroCB, each mighty edifices of ruin.

Next action within the toxic paper arena is for Spain and Italy to trigger ECB bond purchases by requesting aid from European rescue fund, but only by making commitments to its conditions. Draghi and the ECB reserve the right to terminate bond purchases if governments fail to fulfil their part of the bargain. The German Bundesbank was the sole objector to Draghi's plan on the 23-member Governing Council for the central bank. Bundesbank President Jens Weidmann issued a statement in response, criticizing the bond program as "tantamount to financing governments by printing banknotes" with an added caveat that the program might actually encourage them to postpone necessary reforms.

The Euro Central Bank bond program is to be called the Outright Monetary Transactions, which sounds better than Unsterilized Hyper Inflationary Bond Transactions. It will target government bonds with maturities of one to three years, including longer dated debt with remaining maturity of the same three years time guideline. Here is where Draghi is a liar. He claimed the bond purchases will be unlimited, yet fully sterilized, meaning that the overall impact on the money supply will be neutral. In order to provide additional smokescreens, Draghi promised that the ECB will not have seniority, which was a major criticism in the stillborn baby called the Long-Term Financial Operations last spring. As that program failed, the EuroCB put itself first in line for liquidation benefits. See the Bloomberg article (CLICK HERE).

My criticism is plain. The bond buys cannot be all sterilized. If unlimited bond buying is done, all sterilized, then the EuroCB will be committed to destroy unlimited assets on the European continent. They will make Conan the Destroyer a mere mockery. The Draghi claim to be sterlized is to lay claim on an unlimited amount of assets. If the  European banks do not have enough assets to push forward as collateral, they must find a way to draw upon unlimited assets. This is nonsense and more heresy by the high priests of central bank witchcraft.

◄$$$ THE VEIL IS PULLED OFF THE BOND PURCHASE CLAIM OF BEING STERILIZED. THE INITIAL LAYER IS FROM ACCOUNTING SHIFTS FOR ASSETS PLEDGED, MERE SHELL GAMES EASILY EXPOSED. IN NO WAY CAN HUGE UNLIMITED VOLUME PREVENT A POWERFUL RISE IN THE MONEY SUPPLY, WHICH WILL BOTH DEBASE THE CURRENCY AND CAUSE PRICE INFLATION. WHAT A FANTASY WORLD. $$$

The claim of sterilized ECB bond purchases is being challenged. The concept of sterilization will be thrust into the debate room for more thorough discussion. In theory it means is that if for instance, the ECB goes out and buys EUR 50 billion worth of sovereign debt, then somewhere else it will remove an equal EUR 50 billion from the system so as to avoid inflation in the monetary aggregate. In doing so, the the Germans would be placated. This is utter nonsense and not the least bit practical. The challenge is to identify which assets the ECB will sell in order to finance the outsized purchases. Many corners are not worried, probably since they prefer to be deceived than convinced through critical thought. Other investors believe that the sterilization cover is mostly for show, the end result having minimal impact on the amount of money in the system. They are wrong.

Last December, Greg Fuzesi at JPMorgan explained how the EuroCB engaged in bond sterilization. Strange to see elucidating work from the Morgue. The context was the old Securities Market Program (SMP), but the practical deception is the same. The purchased peripheral bonds were held as assets in the SMP category, matched on the liability side by a larger amount of bank reserves. Fuzesi summarized, "The way the ECB has chosen to sterilize these reserves balances is to encourage banks to shift them from the fully liquid current accounts into fixed term deposits, which are just another form of reserves. The ECB could offer these at any maturity but has chosen a short maturity of just one week (likely for operational reasons). The deposits are auctioned through a tender procedure, which requires banks to put in bids, stating the amount they are willing to tie down for the one week period and the interest rate at which they are willing to do so." Clearly, the sterilization ruse just means that banks commit to keep some liquid assets at the ECB for a fixed period of time, so it does not technically enter the system. And since that money at the ECB is liquid and guaranteed, it is not a problem.

The ECB might conduct a shell game on accounting, but the brief period of time with assets set aside in compensation would only delay the issue of sterlization later. Like an endlessly rolling wall. The tactic used by Draghi is likely not to shrink the ECB balance sheet back to its original size, as would be the case if the ECB sold other assets. Expect the ECB balance sheet to increase, a lot. The sterilization itself does not neutralize the impact on the banking system's balance sheet. It only makes the inherent assets permanently more liquid by declaration, and more attached. Witness accounting gimmicks, technical artistry, asset shell games, complex terminology, the same old deceptions to conceal hyper monetary inflation and the absent sterilization. The result will be more price inflation, since the system cannot be protected from a rapid rise in the money supply to account for the massive bond purchases. Draghi did say unlimited. See the Business Insider article (CLICK HERE). For further edification on the deceptions behind the claimed sterilized unlimited bond purchase, see the SGT Report (CLICK HERE), where Rob Kirby poked big holes. He concludes the currency will be made worthless by the central bank desperate actions.

◄$$$ INTL MONETARY FUND SUPPORTS THE EURO CENTRAL BANK. THE BROKEN FUND WILL MONITOR ITS IMPLEMENTATION. THEY CONCLUDE SPAIN AND ITALY HAVE DONE ENOUGH TO MANAGE THEIR DEFICITS, OR ELSE THEY ARE TOO BIG TO FAIL. DO NOT EXPECT THE IMF FUND TO OFFER ITS ASSETS TOWARD THE STERILIZED FEATURE. $$$

The Intl Monetary Fund strongly backed the desperate plan put forth by the European Central Bank to staunch the EuroZone debt crisis with unlimited bond purchases. It stands ready to assist in designing and monitoring its implementation. Director Christine Lagarde pronounced the large debt burdned nations of Spain and Italy had taken enough action to repair their finances to merit aid from the rest of the European currency union. That is really doubtful, so interpret them as too big to fail. Resisting a full European bailout, Lagarde left open the scale of the IMF involvement in the EuroCB newly hatched plan, whose basis is hyper monetary inflation of the purest kind. However, Lagarde left some wiggle room when asked whether the IMF would be prepared to deploy its balance sheet as part of the Draghi plan. The question goes to the heart of the sterilized claim. When pressured, she merely dodged by focusing on monitor of conditions for aid. See the Yahoo Finance article (CLICK HERE).

◄$$$ THE DRAGHI DEBT TRAP LURES IN GERMANY, WHICH WILL RESIST AND OBJECT. THE GERMAN CENTRAL BANK HEAD WEIDMANN THREATENED TO RESIGN OVER THE DRAGHI OPEN DOOR TO HYPER MONETARY INFLATION. OBSERVE GERMAN HIGH COURT DRAMA. MUCH ADO ABOUT VERY LITTLE, NOT WORTH THE ATTENTION. TH GERMAN STATE OF SAXONY SUPPORTS LEGAL ACTION AGAINST THE EURO CENTRAL BANK. SAXONY IS ONE OF A FEW POWERFUL FREE GERMAN STATES (LIKE BAVARIA) WHICH DID NOT SIGN THE EUROPEAN CONSTITUTION. $$$

Mario Draghi set a debt trap for the Bundesbank. The Euro Central Bank focuses on price stability, in keeping with its sole mandate. The German bankers focus on monetization and price inflation. The monetary policy is effectively transmitted to assure price stability. The two powerful groups are at direct odds. The monetization of sovereign debt lies in the middle of the two priorities and mandates. A battle will be waged, for the umpteenth time. It remains to be seen whether the ECB can hyper inflate against German wishes. See the Coppola Comment article (CLICK HERE). Expect a string of court battles challenging the legitimacy of the Euro Central Bank, and its over-reach in authority, certainly its reckless plans with a price inflation outcome assured. Unlike Italy, the Germans will challenge heavy handed actions that involve their finances, their economy, and their lives.

A highly respected and experience German banker added some comments after his opinion was solicited on the issues pertaining to the pitched battle. He said many things over the course of several days, since the topic had been on the table. Rather than use quotations, let his comments be assembled in prose, his points for content, my edits for readability. The ECB is acting more like a mafia with deceptive tricks. Next comes the surprise on how the Germany Economy is sliding into a powerful recession. The German people are waking up, and they are angry. Little of this postured battling might matter, mere Kabuki theater anyway, since the financial structures are crashing, the implosion assured. As interesting as all these news snippets might appear to be, they are irrelevant in the bigger context. An event driven scenario is unfolding that is unstoppable.

The Paradigm Shift is in full swing and only those who reach higher ground in time will be kept safe. The overflow of information on the current situation overwhelms most people. The Western financial system might soon see a sudden collapse, perhaps like the collapse of the Soviet Eastern Bloc in 1989-1990. However, this time it will be distinctly different since global. Hard assets will survive whereas all paper assets will crash and burn. Barter will become the new economic backbone for trade to continue. One should think of the Titanic. Look for seemingly irrelevant and unconnected events to occur which will lead to an implosion from a chain reaction of deadly consequences. All are interconnected, almost all pieces are insolvent and broken. The worst that can happen is the collapse of the United States. Sadly, I am afraid that it is going to happen. These kind of scenarios are all much closer to unfolding than many people realize. ME: His thoughts are indeed frightening, but they make sense. The Western financial structures are breaking down stage by stage in full view. The monetary systems are being debased in totality. The warnings should be heeded, and protection taken in Gold & Silver assets held in physical form.

## BANKS SHELL GAME

◄$$$ BIG BANKS HIDE RISK BY TRANSFORMING COLLATERAL FOR DERIVATIVES BETS. THEY ARE NOT ADDRESSING THE PROBLEMS. THEY ARE AVOIDING DIRECTIVES TO DE-LEVERAGE AS  ORDERED BY THE FINANCIAL REGULATORY BILL. THE SYSTEM IS GOING BUST. A TREMENDOUS AMOUNT OF NEW COLLATERAL MUST BE PRODUCED AND POSTED. INSTEAD OF WORKING TOWARD SOLUTIONS, THE BIG BANKS ARE EXTENDING THE RISK TO INCLUDE LOWER QUALITY ASSETS TO POST. THE USUAL SUSPECTS WITH WALL STREET HOPE TO SERVE AS TOLL BOOTH OPERATORS TO COLLECT FEES. $$$

JPMorgan Chase and Bank of America are leading a backroom initiative to shuffle collateral and assets in order to shore up the rickety derivative structure. They are working feverishly with fellow shadowy banking desks to locate an extra $2.6 trillion to back derivatives trades amidst signs that a critical shortage of quality collateral within the financial system. Starting next year, new bank rules designed to prevent another meltdown will force traders to post USTreasury Bonds or other AAA-rated holdings like USAgency Mortgage Bonds in order to fortify their voluminous but dodgy teetering derivative structures. Incredibly but secretly, the derivative platforms hold up the entire US financial structures that enable the USDollar to flow and the USEconomy to move. The rule change takes effect as the $10.8 trillion market for USTreasurys is stretched thin by banks rebuilding balance sheets and investors seeking safety like in money markets, leaving fewer bonds available to backstop the $648 trillion derivatives market. The big banks have decided to make a commitment to extend the risk throughout the system, to reach into private accounts further, rather than to improve its integrity. The theme bandied by the Jackass for four years is No Solutions. See it here also.

The solution is an end-around rise in risk, a cowardly action. At least seven banks plan to let customers swap lower rated securities that do not meet standards in return for a loan of USTreasurys or cousin Agency bonds that do qualify, a process dubbed Collateral Transformation. It is a vast shell game that is clear to wise investors, bank executives, and finance professors that measures intended to avert risk are hiding it instead. Darrell Duffie is a finance professor at Stanford University, an expert in derivatives and securities markets. He concluded, "The dealers look after their own interests, and they will not necessarily look after the systemic risks that are associated with this. Regulators are probably going to become aware of it once the practice gets big enough." In other words, regulators are asleep at the wheel and will awaken when it is too late, again. Adding to the risk within the system are clearing houses. The Chicago Mercantile Exchange is accepting bonds rated four levels above junk, in response to dire collateral shortages.

The culprits in the backroom initiative to shuffle collateral and assets are JPMorgan and Bank of America, who are setting up desks to collect hefty transformation fees. The big US banks are starved for revenue, as every conceivable business line is drying up, from investment banking to commecial lending to home mortgages to credit cards. The Zero Percent Interest Policy does that, as it distorts the cost of money and all assets, dampening the real economy. JPM and BOA look to generate $billions in fees. These two banks control the biggest derivatives businesses among US bank holding companies with a combined $140 trillion of the instruments. The campaign has begun, as they are already marketing their new collateral transformation operations. Other participants in the swap desks are Bank of New York Mellon, Barclays, Deutsche Bank, Goldman Sachs, and State Street. The JPMorgan machine attempts to paint a picture of constructive activity. They issued a statement from the public relations office, "Collateral transformation is a client service that does not hide risk. It is a form of short-term secured lending, which has always been an important part of capital markets, subject to tight capital and liquidity rules, and fully transparent to regulators." That sounds like street propaganda. What a relief, a normal bit of operations that the regulators can observe.

At issue is the vast derivative market, unregulated, out of control, and as seen in the MFGlobal case, capable of causing private accounts to vanish from easy reach. The derivative contracts allow buyers to bet on the direction of currencies, interest rates, and sovereign markets to protect assets against risk, to insure against defaults on bonds, or to lock in a price on commodities. They operate in the shadows. Over 90% of the trades are privately negotiated, claim Swiss castle chieftains. That exempts them from effective rules that assure integrity within the system. No initial collateral posting as a viable deposit to ensure bets is placed. The system is rife with leveraged extensions without fortification, unable to handle weight or stress. The new rules from the 2010 Financial Regulatory Bill (aka Dodd Frank Act) require that the big banks post more collateral, but the big banks are avoiding the process like a trip to the dentist office without novacaine.

A new process is being resisted. The USCongress has issued new rules that the vast array of private Over The Counter derivatives trades pass through the Central Clearing Houses. JPMorgan lies in that avenue with wide berth. The entities are run by firms such as CME Group in Chicago, and LCH Clearnet Group in London. The CME is already badly tarnished by its role with MFGlobal thefts of private supposedly segregated accounts. The clearing house function is simple, to accept collateral and settle the leveraged trades, seizing collateral and converting to cash, placing the funds on the side of winner accounts and taking them from the side of losing accounts, covering defaults when they occur. The problem is that a woefully inadequate amount of collateral is sitting within the system to fortify the entire derivative gaggle of putrid toxic rotten paper held by over-extended leverage. Estimates for how much extra collateral participants will need range from about $500 billion to $2.6 trillion, based upon Bloomberg data. The top figure comes from Tabb Group, the low figure from Morgan Stanley. Bias is clear.

On the table and sinking from its sheer weight is $462.2 trillion of interest rate derivatives, the most common type, which are most often Interest Rate Swaps. They hold up the USTreasury Bond Tower and maintain an artificially low bond yield that has no bearing on reality. Think annual $1.3 trillion of fresh debt, think absent demand from disgusted creditors, think dependence upon a USFed stuck in hyper monetary inflation mode that must perpetuate bond monetization. The result is 0% with no actual bond demand from end buyers. Regardless of whether the dire Tabb estimate or the rosy Morgan Stanley estimate is correct, the result is that the amount of additional collateral required to be produced and posted is multiples of the collateral currently required. Most cleared trades currently are between securities dealers, where the rate nets out to about 0.005%, incredibly. Adding to the bank pressures, the new banking safety rules will compel lenders to keep more cash and liquid investments on hand for emergencies. See the Bloomberg article (CLICK HERE).

◄$$$ BIG BANK PROBLEMS CANNOT BE FIXED WITH PRINTED MONEY. MANY LEVERAGED ASSET POSITIONS ARE CREATED WITH ILLEGAL COLLATERAL POSTED FROM GOLD TIED TO ALLOCATED ACCOUNTS. THE BIG BANKS ARE WRECKED SHIPS AT SEA WITH HOLES APLENTY. THEY ABUSED LEVERAGE. THEY ARE COMMITTED TO CONTRACT POSITIONS ON THE SEVERE DOWNHILL PATH. THEY MUST DE-LEVERAGE. THEIR WRECKED RAMPARTS ARE INVITING ATTACK BY PARTIES THAT UTTERLY DESPISE THEM AND WANT THEM DESTROYED. SUCH CONDITIONS ARE NOWHERE CONDUCIVE TO REMEDY WITH FREE MONEY PATCHES. TO BELIEVE SO IS ABSURD AND NAIVE. $$$

The broken big banks cannot be fixed by printed money. The claim that newly printed money can solve any and all bank problems is naive and grossly incorrect. This claim is commonly heard, more often lately than ever before. The big banks have broken paper contract structure problems, with abusive leverage applied, often linked t marketable assets that are going to ruin. They have wrong sided positions that start a chain reaction of disasters, thus requiring never ending demands for more margin cash. The structural positions cannot be removed without collapsing the financial system upon which they rest. Their leveraged games have gone so far amok that they are not remotely recoverable. Their exotic nature contributes to their irreconcilable ruin. The notion that one can simply toss money into the mix, even new phony money, and expect the broken structure to be remedied is absurd. They have positions that trigger margin calls on a regular basis, during a time when the Basel III rules force a de-leveraging. New capital infusion, even as gifts from central banks, do not fix their structures. But the capital patches do buy time. The solution from such an attempted remedy is to deliver new capital patches every week to compensate for massive losses and margin calls. The increase in needed capital infusions follows the Ponzi Scheme requirements, becoming infinite over time. The dependence upon narco money laundering is very prevalent and engrained, soon to be exposed. A new JPMorgan probe on money laundering has begun, which might have traction. See the Reuters article (CLICK HERE).

Pressures are coming at the banks from all sides, except from the cost of money, which is near zero. That is also part of the problem, as all asset prices are screwy. The big banks possess broken structures, some of which are recognized, whose pieces invite opponent attacks constantly, like the JPMorgan sovereign bonds and the Interest Rate Swaps. Printed money does not fix any of these wrecked parts. The big banks are cooked and realize finally they are lined up for a slaughter house. Their only remaining option is to cut deals with the new masters and their sheriff. They will not be given much mercy, unless they turn on their fellow bankers.

Thanks to an anonymous London Siren for his sage views coming from the City Financial sector where he has a great vantage point. He shared some opinions on the banking sector plight and stress from derivative exposure and the de-leverage process. He helped the Jackass to comprehend the shifting shells for the big banks, as they adapt to the collateral requirement (above story). He warns of an inevitable USTBond downgrade. His points are as follows. The derivative developments and reactions contain a lot of embedded messages. The big banks realize that USTreasurys will be eventually downgraded, which is going to create problems we cannot imagine. In the spotlight, Morgan Stanley might quickly run out of collateral to post. The outcome will spell stagflation (recession + inflation). The smarter more nimble counter-parties will then start asking for hard asset collateral, like Gold, Silver, long-term oil & gas contracts, perhaps even foreign real estate assets earning yield or farmland. Some very critical things are coming together, such as Dodd-Frank, derivatives, US fiscal position, gold & silver as collateral, lack of growth, USDollar & USTBond problems. The big banks are increasingly seeing themselves squeezed with no real business to create revenues. The implications of the Dodd-Frank new Financial Regulatory Bill likely reduced revenues by $34 to $68 billion at a minimum for the banking sector.

◄$$$ THE WRONG DIRECTION IS AVIDLY PURSUED. DEPENDENCE UPON PRINTED MONEY CANNOT FIX INSOLVENCY. MEETING MARGIN CALLS BY BIG BANKS EXPOSES THE VAST LACK OF FOUNDATION IN EQUITY. THE RISK IS A STRING OF BANK RUNS AND BANK FAILURES. THE NEW BASEL III RULES APPEAR TO BE AN ORCHESTRATED PROGRAM TO CAUSE SYSTEMIC FAILURE AND INTRODUCE A NEW TOTALITARIAN REGIME. $$$

Cash from the Printing Pre$$ cannot fix the insolvent banks, no matter in what volumes. The big banks have transformed into factories running vast carry trade devices sucking profit off the USTreasury Bonds, with a hidden powerpack in the Interest Rate Swaps. They move farther away from their traditional healthy role of credit engines and business formation facilitators as time passes. New $trillions of liquidity does nothing to fix insolvency. As the big US banks teeter and falter, with assured failure on the closeby horizon, a new consolidation phase will be attempted. But due to internal strife and collusion, my firm belief is that any consolidation attempts under a joint JPM/GSax roof will be met with resistance by the system and the markets. Two pillars under siege cannot easily move their members and equipment, since heightened exposure would create new risks.

Meeting margin calls on leveraged positions drains the big US banks. The essence of the Black Hole is evident, which does not end. The matter of accelerated implosion is occurring, which destroys capital matter and forces grandiose abuse of new money created. The problem is wrecked positions that they cannot exit, with a constant drain. Include the ruinous secretive derivatives also in the mix, both interest rate contracts and credit default contracts. The result is platforms eroded, upon which the banking system cannot stably rest. The placement of huge amounts of cash simply will not work, since the cash must be applied for 16 ruined areas. In the past, it has been quite clear that cash patches might buy a few weeks time, or a few months time. However, the acceleration has hit the erosion process. Cash buys less time, just like with Ponzi Schemes.

The tighter Basel III rules seem wise, but they appear to have an curious side effect to bring down the system. Maybe that is the plan. As component parts fail, new Goldman Sachs craftsmen take control of offices. See the Euro Central Bank with Mario Draghi and the Italian Prime Minister post with Mario Monti. By no recognized authority but through hidden threats did Monti replace Berlusconi. Goldman Sachs provided assurances of Italian Govt funding. The tighter reserve requirements act like a de-leveraging pathway that cannot restore solvency, but rather financial firm failure with rising exposure like the ocean tide withdrawing. Firms are leaning heavily on excuses, like faulty technology, rogue traders, and the last resort of Europe to blame. The big Western banks must conform to the tighter rules, but the perverse result has been a fierce defense of money market funds. These precious funds are the final source of equity within the big banks. They are not owned by the big banks, but rather probably re-hypothecated (committed as collateral). Either bank runs or financial firm failures will halt the process, bring attention to the unfixable situation, and lead to a grand outcry for new different paths toward more viable solutions.

◄$$$ SPAIN WILL SERVE AS THE FLASH POINT FOR EUROPEAN BANK MELTDOWN, BUT ITALY IS WHERE THE POLITICAL MISALIGNMENT IS MOST ACUTE. BOTH NATIONS WILL PRESSURE THE BOND MARKET FOR FUNDING IN COMING MONTHS. WATCH FOR A SPANISH BANK RUN. AN ODD HARSH RULE IN ITALY WILL LIMIT CASH TRANSACTIONS TO 50 EUROS. BUT IN PORTUGAL THE ATM-MACHINES DO NOT WORK. BANK RUNS ARE COMING TO SOUTHERN EUROPE. THE PRESSURE POINTS ARE EVERYWHERE. THE EURO CENTRAL BANK OPEN WINDOW WILL NOT STOP IT. $$$

In October, the demands from Spain will come to the table, as $25 billion in sovereign debt matures. To be sure, plenty of new fresh debt will arrive for securitized funding as well. Bankia recently put sand and saltpeter in the kettle, when they reported bad loans of $8.24 billion and a further operating loss of $5.58 billion. The adopted basket case serves as a major drag. The Spanish Govt responded with a promise to inject up to $6 billion into the bank immediately to prevent its collapse. Expect rankles and cries of foul, when the funds from the IMF backstop are to be utilized. The newly issued Bankia preferred shares would be wiped out fast. Pressure builds on the streets, as the jobless rate remains over 25% and continues to rise. The violence tends to come from the youthful jobless, who contend with a 53% jobless rate. They are much more capable of tossing objects, with less to lose by lighting things afire, and run away.

Between December 2011 and end March 2012, the Spanish banks bought $109 billion of the Spanish sovereign debt. They have been a regular sucker for the nation's bad debt paper, causing their own insolvent ruin. Much was facilitated by the Euro Central Bank, who steadily lowered the collateral rules in their lending window. Years of carrying bad real estate loans on their books without proper writedowns have finally caught up with the ruined Spanish banks, well covered since 2007 in the Hat Trick Letter. The filling of insolvent holes will be an endless process. Tremendous impact comes when Spain inevitably hits the wall and defaults, regardless of Draghi promises and open lines and wide berth at the windows for bond purchases.

The Spanish banks have been actively upchucking bonds in a forced response to their own inadequate capital positions. They have sold $21.3 billion of Spanish sovereign debt with $11.7 billion in July alone. Capital flees from their banks en masse, with the fantasy of dynamic provisioning becoming clear. Heck, the US banks have mark to myth. The Prime Minister Mariano Rajoy appears increasingly like a buffoon out of touch with reality. He actually said as his country headed into bankruptcy, it was a victory for all of Europe. Crazy concepts like the EuroCB buying all their debt are actually turning into the conventional wisdom, even the endorsed magic solution. Europe enters the Weimar room from a different side door, while the Americans enter from the marbled front door. Spain will surely walk the same street lined by red ink and debt default paved by Greece, Ireland, Cyprus, and Portugal. The only uncertainty is when. See the Zero Hedge article (CLICK HERE).

Meanwhile, Italian banks plan to limit cash transactions to a mere 50 Euros in a feeble attempt to prevent capital flight. The citizens of the country will not even be permitted to fill up their car with gasoline without a credit or debit card beginning in 2013. The strictures are to be imposed by the Italian Council of Ministers, who have voted to increase the current capital controls. They had banned the use of cash on transactions over 1000 Euros (policy since July), but will lower the limit down to any transaction over 50 Euros. The measure is intended to address the money laundering and black money payments, which they want to clamped down, especially at border crossings. Across the sunny strip, the ATM cash machines in Portugal are not working. A note from Trevor on the ground in Portugal. "I am on holiday in Portugal and today not one bank is working. The banksters have blocked all ATM machines. Even the hotels credit card machines are not working. So people cannot pay." See the Max Keiser note (CLICK HERE). To be sure, bank runs are coming to Southern Europe, with or without the lunatic machinations of Mario Draghi.

◄$$$ DRAGONS, DRAKE, AND BEN FULFORD PROVIDE BACKGROUND THAT CANNOT BE FULLY CONFIRMED, BUT SHOULD NOT BE DISMISSED. MY REFERENCE TO A NEW SHERIFF IS VERY LIKELY BASED UPON THE WHITE DRAGON SOCIETY, WITH BASE IN ANCIENT CHINA. THEIR WEALTH IS IMMENSE AND EXCEEDS ALMOST ALL WESTERN ENTITIES COMBINED. $$$

The White Dragon Family might have as many as six million members, far more than what was loosely described to me last March and April at initial exposure from a source living in Costa Rica. The family group is in possession of vast wealth, an order of magnitude larger than Fort Knox at its legitimate peak. The group members possess the names and addresses of the 10,000 Illuminati Bankers that Drake mentioned. The men Drake and Wilcock are quite reliable in their accounts regarding the group. The Western Powerz might have met their match, on an equal playing field. Fulford reports that the group has at its disposal thousands of professional assassins and ties with organized crime like the Triad (Hong Kong) and Yakuza (Japan). However, the group has top leadership loaded with intellectuals whose intensely altruistic motives and ethics are of utmost importance. They are working toward great changes, such as the Harmonious 623 Project against global poverty. The Western elite promote poverty. The Eastern society works against it.

The relationship between the Chinese Secret Society and the White Dragon Family is not fully known, but some overlap is possible. The Chinese Secret Society has members at the highest ranks of the Chinese Govt. My belief is that the transition in Chinese Govt power in progress involves White Dragons assuming power at the  highest levels. The Western Illuminati have an opponent finally of formidable nature and strength. This is not a story that the Jackass is extremely well versed on, but information is flowing slowly and regularly. Stories about undersea prisons for Western bankers are on the rise, some related to me as well. Assurances have been passed onto me that some leading Western bankers will not be subjected to prosecution, but will vanish instead. Those who want banker heads on a spike might be disappointed. My growing belief is that Benjamin Fulford has been chosen as the White Dragon Family spokesman. See the Before Its News article (CLICK HERE) and keep an open mind.

This is all like from a futuristic novel. For further evidence, one should research the Yamashita Gold stolen by the Japanese over centuries from ancient China, hidden during World War II in the Philippines. It was recently recovered, after many years under protection, and contains a mindnumbing quantity of gold bullion. The Eastern Coalition is using the gold as collateral for loans. The funds are being used to drain the Western cartel banks of their gold in powerful struggles over margin calls. Vast gold from Allocated Gold accounts is involved, in grossly improper usage, one can conclude. The key is the off-market trades where concentrated power meets, and gold bullion is removed from the banks, sent East.

## BANKER CRIMINALITY

◄$$$ THE BIG US-BANKS HAVE NOT YET FULFILLED THEIR PROMISES IN THE GRAND MORTGAGE SETTLEMENT DEAL. SHORT HOME SALES ARE COMMON, WHICH DO NOT PERMIT THE OWNERS TO REMAIN IN THEIR HOMES. THAT WAS A BIG PART OF THE AGREEMENT, VIOLATED. THE ECONOMY WILL NOT RECOVER AND JUSTICE WILL NOT BE DONE UNLESS AND UNTIL THE MORTGAGE MESS IS RESOLVED. THE BANKS ARE INVITING A RE-OPENING OF MORTGAGE CONTRACT FRAUD CASES AND CLASS ACTION SUITS. ANGRY HOME OWNERS ARE GATHERING IN MASS, STUCK WITH TAX BILLS FROM BOTH SHORT SALES AND LOAN MODIFICATIONS. $$$

Justice has not been served for mortgage abuses, as the big banks have not honored the court ordered agreement. They promised to provide $25 billion in mortgage relief in exchange for a respite in lawsuits over past foreclosure fraud. The fines were very small compared to the extreme damage done to homeowners and the economy, resulting in $trillions of lost home equity as well as millions of foreclosures, and involving $trillions in mortgage bond fraud. At the time, the Jackass called it a sweet deal for the banks, too sweet. Six months after the big banks settled with state and federal officials over widespread foreclosure contract fraud, the banks are continuing more or less with business as usual. It is a blatant covenant violation that begs the issue of enforcement.

The Office of Mortgage Settlement Oversight, the monitor of the settlement, released a preliminary report in late August showing that 138,000 homeowners had received some form of relief from March 1st through June 30th. That is not progress, roughly the same volume expected under various aid programs in effect before the settlement. Given that three million borrowers are stuck in or near foreclosure, according to Moodys Analytics, the volume is nowhere near the level of relief needed to fix the housing market. The practice of short sales, in which a bank allows a homeowner to sell for less than is owed on the mortgage, had been common before the settlement. The agreement was designed to stop these short sales, so that home owners could remain in their homes, a primary motive of the deal. While short sales are better than foreclosures, since they prevent vacancies that depress house values, they serve as an easy way out with a minor loss to the bank balance sheets. Prices from short sales are typically higher than they would be in the bargains seen in foreclosure sales.

No sacrifice or punishment is remotely apparent to the banks for their fraud. They cut a deal, and continue their business as usual. Instead of collecting homes in inventory, they execute short sales that indeed lose money. The agreement was supposed to encourage the banks to reduce loan balances, so that home owners could remain in their homes. The banks are not reducing loan balances. In conclusion, the settlement's main purpose is not fulfilled: to keep underwater borrowers in their homes by reducing the principal on their mortgage loans. According to the report, $8.7 billion of home loan debt has been written off in short sales versus only $750 million of principal reduction from loan modifications. That was not the deal. But so what? The legal enforcement is nowhere. The big banks invite re-opening of the fraud lawsuits.

The settlement was not designed as a panacea cure for the wrecked housing market. Future progress reports will surely reveal more homeowners receiving big loan modifications. By activity to date, the big banks appear to be operating under a priority to clean up balance sheets rather than to aid home owners. Furthermore, much of the perceived short sale relief, as a result of tax law, will be counted as taxable income to the borrowers, thus creating outsized tax bills that cannot be paid. No change to believe in here. All forgiven debt from short sales and balance reductions from loan modifications is considered taxable income, in the new debt slave state. The planned $billions in loan modifications set a tax trap. Several bills in Congress call for extending the law to give a helping hand to ruined homeowners. What is desperately needed is a broader law shielding all forgiven mortgage debt from tax, unless the desire is to perpetuate a debt slave state. The settlement left open the possibility of civil and criminal suits on mortgage securitizations and other practices that inflated the bubble. The aim is to produce deeper accountability and larger fines with which to provide even more mortgage relief, but no suits have yet been filed. An Obama Task Force to investigate mortgage abuse has been doing a lot of foot dragging and paper shuffling, as expected. See the New York Times article (CLICK HERE).

◄$$$ A GOLDMAN SACHS MORTGAGE FRAUD CASE HAS BEEN RE-OPENED BY AN APPELLATE COURT IN NEW YORK. PERHAPS THE NEW SHERIFF IN TOWN MADE A PHONE CALL, AS THE TIDE IS TURNING AGAINST THE SYNDICATE BANKERS. $$$

The mortgage backed securities case that was dismissed in 2010 is back on the table. A class-action suit against Goldman Sachs Group over securities fraud was brought back to life by a federal appeals court in New York. Investors in 17 mortgage bond securities offerings, led by the NECA-IBEW Health and Welfare Fund, filed lawsuit against Goldman Sachs. The focus was bond securities backed by pools of residential mortgages originated by National City Mortgage, Countrywide Home Loans, Washington Mutual Bank, and others. US District Judge Miriam Goldman Cedarbaum dismissed the suit in 2010, on the grounds that NECA, which purchased certificates from only two of the offerings, lacked standing to represent investors in the other fifteen parties. It is not clear whether she is related by family lineage to founders of Goldman Sachs the firm, and should have recused herself (just kidding, but scummy coincidence).

After a long pause, a panel of three judge at the appeals court reversed that ruling in early September. Worse, the court also reversed the Cedarbaum ruling that NECA failed to claim a sufficient loss from the investments. The court ruled, "We hold that plaintiff has class standing to assert the claims of purchasers of certificates backed by mortgages originated by the same lenders that originated the mortgages backing plaintiff's certificates, because such claims implicate the same set of concerns as plaintiff's claims." US Circuit Judge Barrington Parker wrote the opinion. It is highly likely that Parker is not related in lineage to the syndicate titans. The case is NECA-IBEW Health and Welfare Fund versus Goldman Sachs, case 11-2762, in the US Court of Appeals for the Second Circuit in Manhattan. See the Business Week article (CLICK HERE).

◄$$$ JPMORGAN CHASE HAS NO LEGAL RIGHT TO FORECLOSE ANY LOAN ORIGINATED AT WASHINGTON MUTUAL. THE SYNDICATE TITAN JPMORGAN CHASE CANNOT PROVE IT OWNS ANY OF THE LOANS IT OBTAINED FROM WASHINGTON MUTUAL IN THE FORM OF PROMISSORY NOTES. ONE SHOULD SUSPECT THE TRANSFER WAS NOT COMPLETE, FOR REASONS TO HIDE MUCH DEEPER MORTGAGE BOND FRAUD. $$$

In the balance are thousands of home loans. Countless homeowners in default on payments, or underwater in equity, are affected. Gaggles of homeowners seeking a loan balance reduction or a forced short sale (where bank suffers a loss at sale) are affected. Attorney Jeff Barnes is leading the charge like El Cid of medieval Spain. He claims that JPMorgan actively has admitted that the schedule of loans purchased from Washington Mutual does not exist, and no evidence of transferred ownership of loans from WaMu to JPMorgan Chase exists. One might conclude that thousands of documents were shredded by WaMu during the Lehman events marred by chaos, to cover up fraud in mortgage contracts, fraud in mortgage bonds, and fraud in property titles. See Arthur Anderson for precedent.

Jeff Barnes wrote, "Confirming, under oath and in print what we already suspected: there is no schedule of mortgage loans evidencing what JPM allegedly purchased from the FDIC in connection with the failure of WaMu. This is from the sworn deposition testimony of Lawrence Nardi, the operations unit manager and a mortgage officer for JPMorgan, who was previously with WaMu and was picked up by JPM after the WaMu failure. The 330-page deposition was taken by counsel for the homeowner on May 9, 2012 in the matter of JPMorgan Chase Bank, NA as successor in interest to Washington Mutual Bank versus Waisome, Florida 5th Judicial Circuit Case No. 2009-CA-005717." See the Use Foreclosure Law article (CLICK HERE).

◄$$$ JPM IS BADLY ISOLATED IN CLEARING FUNCTION. THEY ARE BEING GIVEN THE OPPORTUNITY TO PUT A GOOD FACE BY ITS FINANCIAL MARKET PARTNERS. FORCED UPON JPMORGAN ARE FINANCIAL FIRM FIREWALL DEVICES THAT REDUCES THE BANK'S POTENTIAL FOR MORE THEFTS. THE OTHER FIRMS WANT TO PROTECT FROM THE INEVITABLE NEXT BUST, COMPLETE WITH LEGAL ENTANGLEMENTS. JPM IS THE SUBJECT OF GREAT FOCUS IN FIREWALL CREATIONS. BUT WHEN THE IMPLOSION OCCURS, THE SUB-BASEMENT CHANNELS WILL EXPERIENCE TREMENDOUS ACTIVITY ACCORDING TO SOME UNREVEALED AGENDA. $$$

JPMorgan reports being rankled by leverage and risk, having undertaken a grand program to reduce its risks. The giant criminal syndicate bank is taking the offensive in the media, being pro-active, during a time when other financial firms are erecting firewalls to protect themselves from JPMorgan itself. The big bank provides crucial plumbing for Wall Street's money flows. It is the nation's largest bank by assets, and a major player in providing clearing and settlement services to scores of other financial firms. JPMorgan's Treasury & Securities Services business, which houses clearing and settlement operations, is a major profit center. Net income at the unit was $463 million in 2Q2012, up 39%from the same period a year ago. The unit accounted for 9% of the bank's $4.9 billion Q2 profit and 9.4% of its revenue. The bank in late July announced that the business would be combined with the investment bank into a new unit called Corporate & Investment Banking.

The story goes that JPMorgan is reviewing its dealings with dozens of brokerages that use the bank to settle trades. The truth might be that the other firms are reviewing risk of dealing with JPMorgan, and sense the urgent need to protect themselves from the next MFGlobal or Peregrine Financial event, and then the Knight Capital event. The JPM review supposedly began in early 2012, to assess the profits clients generate for the bank versus risks they pose. They are reacting to the newly installed firewalls. The clincher for many firms was the open squabble with Knight in the brokerage clearing function, when tensions were visible in the open. It could be that the financial industry has finally awakened to the monster risk set up by JPMorgan dealings in the clearing function itself, which might permit thefts from re-hypothecation of assets to keep the busted JPM leveraged game going. The clearing role performed by JPM stands at the crossroad of massive financial interest, sure to ripple across all of Wall Street. Word has it that JPM has stopped serving some sizeable clients. However, one might interpret this as the clients abandoning the large thief in their midst.

An important comment came from my colleague George, who himself was a victim in his Chicago office from the MFGlobal thefts. He assures that he has not seen restitution of his account, nor have any of his acquaintances. He offered an opinion on the JPMorgan restructure, which must be juxtaposed with the financial industry protecting itself from JPM the master thief. George wrote the following (with my heavy form edits, not to alter the message).

The recent events mean that the JPM tricks to steal segregated funds are seeing a reaction. In a flurry of activity before a firm goes under, JPM has been detected pulling lines of credit from the company in trouble. JPM has been exposed as part of the problem, a contributor toward the firm's failure. The other parties will work to prevent the failures to be repeated. Thank people like Koutoulas with the CCC class action lawsuit against MFGlobal, who has been tireless chasing these crooks down. Koutoulas founded the Commodity Customer Coalition and has worked for free or from donations toward expenses. He represents over 7000 MFG clients, relentlessly pursuing and exposing JPM and Corzine for theft. Their full criminal actions have come to light in the inner circles. Refer to the regulatory circles, the financial press, the bankruptcy court, even in investigations not being made public. The regulators facilitated the crimes as well. The illegal acitivity has become a matter of legal record. The JPM & MFG team tried all they could to set up the theft, and then get away with it with vast coverups. But they were exposed, not necessarily prosecuted, but exposed. In reaction, many financial firms have taken new fortified positions in defense, to protect themselves from JPMorgan.

JPMorgan is fighting a battle against exposure. If you really wanted to pull back the curtain, two things would have to happen. JPMorgan would have to be forced to bring back all the securitized toxic paper off balance sheet and honestly value it. Or they would have to confess to the monster amounts of highly levered equity positions they now hold, effectively concealed with end of quarter swap agreements. They hide their exposure at the end of every reporting quarter. A new law would be required to accomplish these things. It would result in maybe a 2000-point stock swoon or worse. Any event like that would cause nuclear winter for the money center banks that have so much at stake in the stock market from their high frequency trades and core equity.

George concluded that it is very important to understand the bond monetization angle with QE3, possibly coming from the US Federal Reserve. It will cause some tremendous effect in his estimation. If the Bernanke Fed does a big broad QE3 with grand balance sheet expansion, the big US banks will be forced to participate while the USFed acts like a gigantic vacuum cleaner in the bond market. Some unintended consequences could arise with huge implications, one of which is drained liquidity in the USTreasury Bond market itself. The big banks would have to provide high valued collateral like USTBonds and Mortgage Bonds. They would hence be forced them to unwind derivative trades where they cannot post collateral. In calling for the most secure bonds, the USFed might force the big banks into squeezes, an unintended consequence. JPMorgan is evaluating which financial firms to squeeze in return, by how much, to obtain the necessary collateral for them to survive. The Bottom Line is that both possibilities are linked to unsustainable positions in the derivative world which require increasing amounts of collateral, made more scarce by the month. Each scenario is very bullish for Gold. As footnote, consider that Goldman Sachs might be orchestrating much of this inner conflict and strife. The Jackass warned a couple months ago that the big banks would attack and eat each other to assure survival. The process is underway. George openly wonders if Goldman Sachs engineered the London Whale episode, the LIBOR revelations, or the Knight collapse. He admits that such notions are wild speculation, but could indeed be true.

◄$$$ A LONDON SOURCE BELIEVES JPMORGAN IS IN TREMENDOUS TROUBLE WITH INTEREST RATE DERIVATIVES. HE EXPECTS JPMORGAN WILL ATTEMPT TO EXECUTE A BIG BANK FAILURE IN ORDER TO EXPLOIT IT. $$$

A London-based colleague in the city's financial district pitched in. He is given by me the name of the London Siren since so adept and effective in sounding the warnings. He gave his interpretation, always of high value. So JPM as the largest bank by assets, a major cog in providing clearing and settlement services to other financial firms, is reviewing its dealings with dozens of brokerages that use the bank to settle trades. There are two ways to interpret this review and revision, if not reform. The following are his thoughts and conclusions.

1. JPM is in very big trouble as a result of its highly leveraged critical positions in Interest Rate Swaps to defend the USTreasury Bond tower, as the Jackass refers to it (his words). JPM also is in very big trouble with its Gold & Silver positions. Any counter-party who has muscle or size is removing collateral from JPM, causing serious pain and creating big holes. JPM in reaction is looking at every firm who depends upon them, in order to squeeze them for urgently needed collateral, including Morgan Stanley. Not really tiny tail risk, the motive to grab collateral in whatever corner to address their growing desperation is of a finite probability.

2. JPM wants to create a demolition event like in 2008 but with Morgan Stanley. They have any number of motivations, such as A) to suspend the nettlesome Dodd-Frank Financial Regulatory Bill, or B) to suspend mark-to-market rules on derivatives in the wake of the highly damaging and embarrassing London Whale episode. Much talk circulated that certain derivative positions would be moved to Level 3, permitted a marking of value to whatever the bank wished (mark to myth). They might be greatly motivated C) to grab collateral in desperation to stave off a failure event under their own JPM roof in a certain business segment, or D) to suspend or nullify all leveraged contracts in Gold & Silver, in crude oil, and in Interest Rate Swap derivatives. They might wish to pursue a national directive toward a TARP 2.0 in the name of national security! It could actually be the price Obama might have to pay to his masters on Wall Street for re-election. His theory.

My Jackass conclusion is simply stated as JPMorgan might be isolated further, much more than meets the eye. The financial players are defending against criminal theft via re-hypothecation done in the open, protected by the system. My view is that JPMorgan is far more under siege, as its cohorts work feverishly to firewall it from more thefts. However, when the implosion occurs, and it will occur sooner rather than later, the sub-basements will see frantic activity. The channels will move funds and bury toxic assets and destroy documents in a manner directed by the monster JPMorgan. It is not clear though whether the movement will work to create a stable JPMorgan creature. When the systemic failure reaches climax in the United States, my belief is that JPMorgan and Goldman Sachs will be the only pillars standing. They will be gutted fortresses with viable assets removed and wrecked contracts awaiting USGovt guarantee during the bankruptcy restructure.

◄$$$ LIABILITIES FROM LIBOR BANK MANIPULATION MAY EXCEED $176 BILLION. THE ESTIMATES ARE STARTING TO ROLL IN, AS THE PROCESS HAS JUST BEGUN. PROVING LOSSES MIGHT BE REMARKABLY EASY, AFTER THE CASE OF COLLUSION TO KEEP THE LIBOR RATE LOW IS PROVED. EXPECT THE BANK LAWSUITS TO CONTINUE FOR AT LEAST THREE TO FIVE YEARS. LOSSES WILL REACH WELL ABOVE A TRILLION DOLLARS, WHEN THE BANKERS TURN INTO NEGOTIATORS OF A NEW SYSTEM. $$$

The floodgates are preparing to open, with vast valves and levies ready to be turned and lowered. Estimates have begun to hit the table. The more impartial source of Macquarie put forth a $176 billion estimate, after factoring in numerous aggrieved parties that include the giant CalPERS retirement fund. The highly biased source of Morgan Stanley put forth a laughable $7.8 billion estimate, more a prayer than a legitimate calculation based upon anything. The few $100 million in fines levied so far against Barclays will soon seem like a wrist slap. The venerable Syndicate bank agreed without challenge to pay almost $500 million in fines, for LIBOR price manipulation in the discount wholesale cash market. Numerous sources are listing the lawsuit plaintiffs in a very long list indeed. The lawsuits and potential liabilities are rising rapidly as cities, insurers, investors, and lenders all jump on the bandwagon to extract blood from the nasty bankers in a slam dunk case. The city of Detroit Michigan is the latest to cry foul. The individual investors claim lost returns from low rates to hedge funds squeezed in derivatives trades. Liabilities could exceed $176 billion as the lawyers emphasize that the process is only beginning. Scores of interested potential clients have inquired, willing to join the parade. My Jackass estimate is well over $1 trillion in lawsuit losses, sufficient to turn them into negotiators in the design of the next global financial foundation. They will be forced to relinquish or share global bank power. The current platforms are collapsing.

Winning in court is another matter, although the cards are stacked against the bankers. The collusion is obvious, the evidence abundant, the testimony plentiful. It will surely take years for the lawsuits to see resolution. Analysts point out that the floating rate bond holders are likely to have the quickest success and easiest claim. The central challenge is to convince a jury that the LIBOR rate was too low as a result of collusion. My belief is that will be easy, but not quick. A clear logical path can be painted that even the dimmest of jurors can follow. The winds that could make the case even easier will come from the regulators and their investigations, which will drive the outcome of litigation. Even the corrupted bank regulators will not stand in the way of this locomotive. It will be simple to show that too little interest was paid, once the case of an artificially low LIBOR is constructed. See the Zero Hedge article (CLICK HERE). Again, bigger questions remain like why the LIBOR scandal hit at all, and who ordered it, and why they had such an easy time with pushing Barclays over. My firm belief is that a new sheriff is in town, and he comes from the East with bigger money than the Western castle dwellers. The sheriff represents the interests of very old, extremely wealthy families who are themselves victimized by the Western bankers and their endless thefts. They have hired Interpol, according to my sources.

## 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.