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