QUEEN OF ENGLAND'S favorite blogger CHRIS STORY at MI-5: "BUSHES are headed to jail"?

http://worldreports.org/news/217_war_of_attrition_against_the_u.s._crime_cadres



WAR OF ATTRITION AGAINST THE U.S. CRIME CADRES

DOLLAR REFUNDING OPERATION TO PROCEED FROM LONDON



Monday 8 June 2009 02:00




NEW REPORT STARTS HERE:




POSSIBLE RATIONALE FOR AIR FRANCE 447 DISASTER
Initially, French authorities reacting to the loss of Air France 447 on Monday 1st June with 228 people on board, suggested that the aircraft had broken up in the course of a terrible electrical storm. Later, they conspicuously refrained from ruling out sabotage.

By the weekend of 6-7 June, it was being reported that the huge oil slick that had been identified earlier was now thought not to have been associated with the disappearance of the Airbus A330. If an explosion took place, there would be no oil slick.

On the other hand, since the oil in question was diesel oil, reports that a diesel-powered submarine may have launched a missile at the aircraft, as happened with TWA-800, when an Iranian submarine was suspected, are not to be dismissed – especially as France despatched a nuclear submarine to the area – we speculate, to search for the submarine in order to establish whether it was German or Iranian. The Iranians would have a motive, as France under President Sarkozy has ceased supply Iran with plutonium for its nuclear programme.

If the Iranians have demonstrated that they can destroy a French airliner, they could do so again. On the other hand, if the submarine is one of the German refurbished diesel fleet, the immediate consequences for the already (see previous reports) fractured Franco-German alliance, based on the timeless Treaty of the Elysée of January 1963, could be momentous.

Tensions between France, the United States, Germany and Britain are at an all-time high due to the chaotic and hideous struggle over the money, which has progressively eroded and destabilised all dimensions of these powers’ bilateral and broader relationships.

In the absence of an official list of passengers, we were able during the week ending 5th June to establish that passengers included Eric Heine, a senior executive of the German steel corporation Thyssen-Krupp, several executives from Michelin’s South American operations, and a 25-year-old relative of Portuguese Royalty.

On 2nd June it emerged that Michael ‘Butch’ Harris, a top geologist with Oklahoma City-based Devon Energy Corporation and his wife Anne, had been on the aircraft. A spokesman for the company, Chip Minty, confirmed that Harris was a geologist working out of Devon’s Rio de Janeiro office. The late Mr Harris had moved to Brazil from Houston in July 2008, according to Mrs Harris’s sister, Mary Riley, of Lafayette, LA, in an interview with the local newspaper, The Advertiser. The couple, married for 16 years, were originally from Lafayette and had lived there until 2004.

Mr Harris was a Clemson graduate and a brilliant geologist. The ‘Jack 2’ well drilled in the Walker Ridge area of the Gulf of Mexico 175 miles off the coast of Louisiana, is located in about 7,000 ft. of water. Chevron, which has a 50% stake in the oilfield, has two partners for this project, both of which have a 25% stake: Statoil ASA (Norway), and Devon Energy Corporation of Oklahoma City.

Fadel Gheit, an analyst with Oppenheimer & Co., said on 4th June that ‘relative to its size, Devon has one of the greatest exposures to the deepwater Gulf of Mexico’. Devon’s shares rose by about 15% on the New York Stock Exchange following news about the ‘Jack 2’ oilfield.

Before moving to Brazil, Michael ‘Butch’ Harris and his wife Anne lived in the Woodlands area of Houston, which ‘just happens’ to be where George Herbert Walker Bush lives.

We ‘speculate’ that Mr Harris was en route from Rio de Janeiro to Paris where he was to realise a brief from Bush Sr. to leverage Devon Energy Corporation's 25% stake in the ‘Jack 2’ oilfield with the corrupt ‘Kissinger-Bush’ bank, Paribas, for an enormous credit line, enabling the desperate Bush Crime Family to ‘start over’ with a pile of cash for the usual leveraging and hypothecation purposes. We further ‘speculate’ that Air France 447 was sabotaged, to close off this option.

That George Bush Sr. would have no compunction in arranging for one of his associates to run the risk of being murdered in mid-air given that the whole world (with the sole exception of the crime network’s remaining cornered assets) is intent upon removing the Bush Crime Family from the chessboard, goes without saying.

The sole motivation of this criminal group operating outside and within the US Intelligence Power, the White House and the Treasury, has all along been to retain control of the levers of Fraudulent Finance at all costs, without regard for collateral damage. Given the unconscionable level of their arrogance, these people never expected to encounter any opposition to their activities, and have accordingly received the overdue shock of their lives.



BLOWS RAIN DOWN UPON THE CRIMINAL ELEMENTS


Among the most recent shocks applied to these criminal operatives, the following developments were confirmed to us on 5th June and have subsequently been spontaneously reconfirmed twice:



• Bush 41, Clinton 42 and Bush 43 and US Chief Justice John Roberts were told that they would all be arrested if there was any further interference in the Settlements process. We were advised that heavy documentation is associated with this statement.


• Criminal former President Bush 41 and his wife Barbara Pierce Bush (illegitimate daughter of the late British intelligence operative and Satanist, Aleister Crowley) were instructed by enforcement to ‘pack light’ (i.e. to place necessary clothes and toiletries only, in two small suitcases) so that they would be ready to be conveyed to jail at a moment’s notice. Recall from the preceding report that on 24th May 2009, Bush 41’s passport was taken away from him,



• Dr Henry Kissinger has been and is being accompanied at all times by two Interpol agents with instructions to arrest him immediately and take him into high security custody, in the event that he attempts to intervene in the Settlements process. These agents are not for Kissinger’s protection.



• President Obama, faced with the issuance of a Contempt of Court Writ by the World Court following a two-day extension granted on 1st June, which was the value date originally ‘agreed’, finally became ‘upset’ (the word used by our sources), and exerted himself against forces standing in the way of the Settlements process, given that the World Court proceedings could lead to the arrest of the President of the United States himself.



• An unknown number of senior US Army and Air Force personnel were arrested during the week ending Friday 5th June.



• The ‘Connecticut Trustee’ (group) obtained access to ‘their’ funds in the evening of Thursday 4th June 2009. However access was subsequently denied, the explanation given to us being that no parties may draw funds down until arrangements for subsequent recipients have been completed. [This information was ‘good’ up to 6th June but cannot be further elaborated upon given lack of updated information at the time this report was being prepared].



• With the same batch of information, the following assertion was included: ‘Next time people lie to [the Editor of this service], THEY will be liable to be arrested and jailed/indicted for disseminating false information’.



• We stress as follows:


ALL of the above intelligence has been RECONFIRMED TWICE by impeccable sources.

According to separate reports, a key Trustee failed to appear at a bank in Dallas in accordance with instructions at 1:00 pm Texas time on Thursday 4th June, in a move thought to have represented a delaying tactic. An earlier report to the same effect was also received.

The same Trustee was reported to us not to have had his paperwork ready on Monday 1st June, when he asked for more time. However on 6th the Trustee was duly escorted to the bank by US Marshals and was reported to be in the bank at 2:00pm Texas time on that date.


Finally, the criminal compartments, including we presume US Treasury operatives such as Timothy Geithner, the Bush and Clinton cadres, Leon Panetta and the ruthless fools inside the CIA and the rogue military elements, were, on 5th June, decisively rebuffed along the lines of (as it was put to us): ‘Who are you to destroy the American and world economies and to fling the American people into poverty?’....


As late as Saturday 6th June, several operatives tried to block the progressing Settlements process, and were ‘dealt with’, according to reliable reports. There have also been unconfirmed reports of ‘horizontalisations’ and other drastic measures in the above overall context and within the timeframe referenced here.



EARLIER INTELLIGENCE RECEIVED [DIARY FORMAT]


Prior to receipt and confirmation of the foregoing data, the Editor obtained the following updates:


• The British head of State and Chinese Elders/authorities were reported to be working in ‘lock-step’ to insist upon the application of the Rule of Law inter alia through the World Court. We now believe that the primary momentum for resolution has been directed all along by Her Majesty The Queen and her special representatives.

It is likely that this momentum was greatly intensified following the stealing of The Queen’s gold on 29th-30th March 2007 which this service alone reported, and the subsequent scandal involving the misapplication of sovereign LOAN funds provided on 19th-20th June 2007 via the Bank of England to Bank of New York Mellon: [see reports: Archive], which had to be placed into ‘lockdown’ (10th-12th September 2008) inter alia after advice by the Editor of this service on 6th September 2008.


Prospective access to these LOAN funds was finally denied, again on our recommendation, on 29th January 2009, after the new Obama Administration had reneged on Barack Obama’s undertakings, signed during his earlier trip across Europe, to procure the Settlements without further ado and to allow the Refunding of the US Dollar System to proceed in a fully transparent taxable manner in the private sector with no US Government input and control. [Government creates debt only: it cannot generate taxable accruals. The private sector generates taxable income]....






• 29th May: A significant number of associates of George Bush Sr. and of Dr Henry Kissinger were reported to have been arrested on Thursday and Friday 28th/29th May.





• 30th May: A massive movement of funds between the Bank of America, Charlotte, and the Bank of America, Dallas, was reported to us to have occurred between noon on Saturday 30th May and noon on Sunday 31st May.


• 1st June: Former President George W. Bush (43) was reported to be ‘on suicide watch’ which, being interpreted, was taken to mean ‘suicidED watch’.



• 1st June: George Bush Sr. was reported to be adamantly refusing, as usual, to cooperate: ‘You know who to talk to’, he was reported as shouting (presumably a reference to the Bush/Clinton stooge Leon Panetta, Director of Central Intelligence). In the face of this crude display of Bushite intransigence, enforcement personnel were reported to us to have shown Bush Sr. a number of statements from ‘his’ bank accounts. According to our sources, the amounts shown on these statements read: $0.00.


From subsidiary questioning, the Editor then established the likelihood that some of these bank statements would have been issued by one or more of the German banks acting as custodians of Bush Sr.’s funny money accounts, over which Chancellor Angela Merkel, bribed by Bush Sr. to guard ‘his’ financial interests within the German banking jurisdiction, was supposed to have exercised surveillance, as previously reported.


• 3rd June 2009: The World Court Contempt Writ first mentioned to us after the 1st June value date was ‘missed’, was confirmed to be issued on Thursday 4th June against President B. Obama in the obstruction of justice context previously explained by this service.


• 3rd June: Bush Sr. was reported to be engaged in hyperactive, vituperative behaviour in frantic moves to recoup the situation from his perspective, demanding that payments must be blocked, and telling anyone who would listen: ‘Can’t pay, won’t pay’.



• A key source told the Editor; ‘From what I hear, not a lot of people are listening’.



DISCONNECT AT THE U.S. TREASURY


The continued reprobate behaviour of the US Treasury is one of the darker mysteries that has not yet been fully explained, given that everything the Geithner Treasury is doing contravenes the principles of commonsense and sound finance.

Our key sources have confirmed that foreign governments have generally been stunned by, and unable to comprehend, the quite extraordinarily bovine behaviour of the Geithner-led delegation during their recent visit to Peking, which ended in Geithner’s humiliation (in a repetition of what happened to the equally unpopular Henry M. Paulson on several similar occasions).


Unbelievably, Geithner et al presented the Chinese with a proposal for a trading operation using $4.0 trillion – just as John Snow and Henry M. Paulson had done earlier. It will be recalled that the $4.5 trillion brought over in May 2006 from the People’s Bank of China following a visit to Peking by the criminal operative Dr Alan Greenspan and John Snow, the former US Treasury Secretary, was placed under contract (with the Chinese) in June 2006. These funds were then criminally replicated by the usual leveraging and hypothecation means, to yield multiple trillions.


Evidently the Geithner Treasury thought it could ‘pull’ the same trick with the Chinese in May/June 2009. However, with their fingers badly burned on multiple occasions by these duplicitous Jewish Americans, the Chinese turned the offer down and sent Geither packing with ‘a flea in his ear’ (or, as London East-enders would say ‘GBH of the ‘ear-’ole’ [Grievous Bodily Harm of the Ear-hole].


It appears that, following a leak, loose talk and sabotage attributed to a renegade British-based possible double agent, the US Treasury operatives thought they could pre-empt, replicate and displace, by means of a bilateral deal with the Chinese, the G-7-approved Refunding Programme (that is to be operated through London without US official input and control).

They reckoned without the central reality of the close collaboration and lock-step determination of the British Head of State and the relevant Chinese parties that there are to be no changes to the revised agreed arrangements.

The Chinese rejected the US Treasury’s proposed $4.0 trillion trading contract when (inevitably) they discovered that the funds were compromised; and Geithner was accordingly advised that it would be prudent for him and his delegation to leave the Chinese capital forthwith [see above].

The US Treasury is now engaged in TALF-4 – representing the FOURTH phase of its operation to try to regalvanise the moribund Fraudulent Finance sector, as lusted after by the recalcitrant Wall Street institutions, in defiance of logic but in response to the greed of certain banks (which might otherwise be surplus to the real economy’s requirements), and of US holders of high office.


The US Treasury is therefore persisting with its obtuse, perverse intent to revive the derivatives sector that collapsed as a direct consequence of the events of 10th-12th September 2008 (as a result of which the Editor received, on 18th September, the three-gunshot voicemail). It was no coincidence, either, that the most vitriolic attack on the Editor of this service perpetrated by one of the CIA-controlled disinformation and confusion-building websites occurred on 13th September.



[As previously reported here, data based on Bank for International Settlements’ (BIS) findings, published by the International Monetary Fund in April 2009, showed that the total notional market value of all derivatives contracts outstanding at the end of June 2008 (taking account of double-counting) stood at an estimated $683.7 trillion, leveraged from an actual gross market value of just $20.4 trillion.

However given the ‘events of September 2008’, the derivatives sector was sharply reduced for the first time, to $592 trillion by the end of December 2008, according to a BIS report released on 18th May 2009. This first-ever decline brought the aggregate notional value of global derivatives contracts outstanding back close to the level of $595.3 trillion at end- December 2007].



‘MAINSTREAM’ NOW USING THE WORD ‘CRIMINAL’



That the US Treasury’s intellectual, moral and practical perversity in this crisis has now at long last been grasped at least by the New York media, was revealed in a Wall Street Journal article by Barry Grey dated 4th June, which contained inter alia the following observations:

‘Under the guise of enhanced regulation, the Obama Administration is working with major Wall Street banks to sanction a continuation of the speculative practices that precipitated the financial meltdown and the deepest economic slump since the Great Depression’.....





The Wall Street Journal article dated 4th June continued:

‘Treasury Secretary Timothy Geithner has, according to a detailed exposé published May 1 by The New York Times, adopted a proposal drawn up by a group of Wall Street firms for new regulations on the lucrative trade in derivatives such as Credit Default Swaps. Geithner headed the New York Federal Reserve Bank and played a key rôle in the Bush II Administration’s bank bailout program before being named to his present post by Obama. His recently issued proposal on derivatives regulation, in opposition to measures backed by certain corporate interests, such as agribusiness firms and Congressmen who represent them, would exempt most trading in Credit Default Swaps from any serious public exposure or government regulation’.


‘Credit Default Swaps are contracts agreed to between corporations in which the seller insures the buyer against the default of specific corporate bonds or securities. The transactions are ‘over the counter’, i.e., arrived at privately without being listed on any public exchange. Since the passage of a law in 2000 supported and signed by then-President Clinton, they have been unregulated’.

This legislation triggered ‘an explosive growth of this form of financial gambling’.



Under the Geithner proposals, a ‘special dispensation’ is meant to apply to so-called ‘customized’ derivatives, a vague term that comprises most Credit Default Swaps, which would shield them from public scrutiny or government regulation’. This and other permissive ideas were incorporated into the current proposals for ‘increased’ oversight promoted by Geithner.

The article added that The New York Times had quoted Yra Harris, an independent commodities trader, as having summed up the situation as follows (this being of course entirely consistent with our own analysis):

‘The banks want to go back to business as usual – and then some. And they have a lot of audacity now that everyone has bailed them out. But we have to begin with the premise that Wall Street doesn’t want transparency because more transparency means less immediate profits’.

‘The instrument through which the banks are resuming at full throttle the criminal methods that have brought the US and world economy to its knees and inflicted growing social misery on the working class, is the Obama Administration’.



• Now, who would ever have imagined that there would come a time when the leading ‘mainstream’ newspapers in New York would at long last openly characterise the financial methods that are at the root of this crisis as CRIMINAL, as we have done these past three years?

• And who would ever have predicted that the leading New York ‘mainstream’ press would finally come to agree with us that the reason that sound finance is being rejected by the idiots in the driving seat is that practitioners of these CRIMINAL METHODS, abhor and fear TRANSPARENCY?


Which, of course, is precisely why the Group of Seven-Approved Refunding Programme, which is to be 100% TRANSPARENT, with the proceeds subject to taxation rather than being stashed untaxed in secret offshore bank accounts, is now to be operated wholly out of London, where the misguided Geithners, Paulsons, Bernankes and Dick Cheneys of this 'Black' world cannot interfere – and with Basel-II/Basel-III compliant UK and European banks exclusively, likely to be selected to participate in the programme because the big American banks have so consistently demonstrated throughout this crisis that, like the US Treasury and the Federal Reserve, they cannot be trusted.



PERVERSE INTENT TO REVIVE AND CONTINUE THE FRAUDULENT FINANCE CAROUSEL


So it is now glaringly obvious from all key quarters on both sides of the Atlantic that, following the obtuse lead of the wrong-headed US Treasury, the international financial community is dead-set on seeking the revival of the corrupt derivatives sector and the Fraudulent Finance trade operations underpinning it, without regard for the extreme dangers that will arise from the continuation of this criminal and speculative off-balance sheet trading.

Notwithstanding the power of this website, and the publicity we have given to the sound proposals developed by the US securities expert Michael C. Cottrell, B.A., M.S. – the most qualified technician in this specialist area who has not been compromised (and who would be a trillionaire by now had he succumbed on many occasions earlier) – the reprobate intention of the Wall Street institutions and the likes of Barclays Bank, Deutsche Bank, Paribas and the multiple other corrupted financial institutions including the Israeli banks which have brought the world to the brink of financial and economic disaster in their relentless pursuit of fiat profit, is to revert, as The Wall Street Journal has at last understood, to CRIMINAL ‘business as usual’.

For this reason, there is extreme concern in the relevant circles at the fact that the Refunding Programme, which was to have been run out of the United States, has been switched to London, where it will be operated exclusively in the private sector and in a 100% transparent manner, with all accruals subject to tax in the United Kingdom – as well as in the United States (via the profits earned on the intended trades by Pennsylvania Investments, Inc.). ....





The Geithner Treasury is pursuing the WRONG POLICIES for the primary and overriding reason that it seeks to retain control and cannot tolerate the prospect of losing it.


• FACT: As repeatedly stated here, Government, by definition, cannot generate taxable income. It can of itself only create DEBT. Taxable income can ONLY be generated by the private sector. The Government cannot tax itself (other than via the remuneration of its employees).

Therefore, the US Treasury’s policy of inventing convoluted mechanisms which have the objective of enabling it to retain control of trading, is perverse and represents a gross fraud perpetrated on the American taxpayer – since a corresponding mountain of new debt appears on the other side of the Treasury’s balance sheet.

This behaviour is correctly describable as FINANCIAL TERRORISM and we hereby again denounce it as such. The British Treasury have adopted a similar derivatives-centric stance.

Indeed, the point we made recently about the UK Treasury paying huge sums of money for advice from tainted City-based institutions, to guide the Treasury's response to the mayhem caused by those same criminalist institutions, has now been confirmed by Lord Oakshott of Seagrove Bay, the Liberal Democrats' Treasury spokesman, who is cited in The Times of 8th June 2009, in a Business Section article by correspondent Suzy Jagger entitled 'City Banks send the Treasury a £9m bill for advice on solving the financial crisis', as saying:

'Taxpayers are paying through the nose for Treasury officials' ignorance of how the City [of London] works. From my experience of dealing with them in connection with the nationalisation of Northern Rock, it is matched only by the arrogance'.

'Because the Treasury has no core expertise, it has been running in desperation to the City which is not able to give proper independent advice. Many of these investment banks were on the one hand creating the toxic investments which made the crisis much worse, and on the other hand taking fees to get us out of it'.

• PRECISELY.

MACROFINANCIAL ASSESSMENT AND PROSPECTS
Asia-based analysts are pointing out that the size of the ‘hidden’ US financial bubble that has burst is so colossal that actual losses cannot be quantified, given the lack of transparency.

For several decades, the US banks, operating within the context that the Federal Reserve has one asset alone – the power to print money without limit – ‘went global’, issuing debt instruments to foreigners for proprietary ‘over-the-counter’ (private, unrecorded) speculative trading operations and investment – over-leveraging their base capital by several dozen times.

This ‘easy money’ policy, associated with the low interest rate policy pursued during the loose Greenspan era, created a bubble economy without historical precedent – against the background that the untaxed, off-balance sheet trading operations were ballooning the overall (unquantified) dollar money supply, with ongoing inflationary consequences.

Since Nixon and Bush Sr. implemented the long-range German strategy of de-industrialising ‘the Main Enemy’, starting in the early 1970s, the United States and Britain have both foolishly walked away from manufacturing, shifting the ‘productive’ economic focus towards consumption and the parasitical financial services feeding on the underlying inflationary environment – backed by the United States’ temporary privilege of being able to issue currency that foreigners were prepared to accumulate and hold. The US dollar was floated worldwide, functioning as the de facto medium of international transactions at virtually zero cost to the United States. Against this background, US consumers went on a consumption binge, enhancing their already high standard of living.

When the Editor first became ‘hands-on’ engaged in aspects of this crisis, he warned several parties (whose eyes duly glazed over) that this process could not continue for ever as there is no free lunch: and that when it ran into a brick wall, the shock would be devastating, with the real prospect that US living standards could collapse by 50% within a matter of months – as foreigners refused to accumulate more dollars and dollar-denominated assets, sought to dump those they already held, and the dollar then collapsed, driving foreign currencies sharply upwards so that Americans would be unable to afford many imports.

• When that happened, the only remaining ‘remedy’ for the Federal Reserve would be to print money, leading to the inevitable hyperinflation.

Dr Bernanke, Chairman of the Federal Reserve Board, has told Congress recently that the Fed is confident that this outcome can be avoided, without providing any back-up for this statement.

The mechanism whereby we wind up with a hyperinflation is slightly different to that envisaged when we first warned of such an outcome in our report dated 2nd September 2006 – due to the irresponsible behaviour of the US Treasury and the Federal Reserve in adopting the chronically unsound policies that will generate huge mountains of background debt that will burden many generations of Americans to come – in the absence of a hyperinflation, that is.

The dollar paper issued to foreign creditor institutions, funds and sovereign governments around the world, is becoming a vast liability. Global economic imbalances, associated with the mentioned US overconsumption, and with overproduction in key emerging market economies and Japan, are experiencing a sharp correction. The Americans over-consumed by issuing fiat debt to finance consumption, while foreign countries channelled reserves back to the United States, so that US consumers would continue to buy their cheap goods.

But since exports to the United States have collapsed, foreign creditors are wary of subscribing to new US debt, especially given their shrewd understanding that US official debt-issuance is out of control due to the fact that the US Treasury has chosen to follow the wrong course – having the US Government (and its cronies, and the Intelligence Power) involved in a resumption of the familiar criminal ‘business as usual’, against the background of technical arrangements which generate massive unnecessary Treasury ‘background debt’.

And foreign creditors understand perfectly well that this wrong-headed course is being pursued because the US Treasury and the Government’s cronies plus the CIA want to retain control of speculative trading, as though there was never any discontinuity last September.



FOREIGN CREDITORS ARE CUTTING THEIR LOSSES


Not surprisingly, foreign creditors are cutting their losses and are seeking to diversify out of US dollar-denominated holdings. As the permissive US official debt issuance proceeds, the alarm bells that have been ringing in foreign capitals will wax much louder.

It is a fact that without the contrived on-balance sheet liquidity-raising operations spawned by the Treasury and the Federal Reserve, certain banks would have collapsed – which is why well-known names are refusing depositors’ requests for large withdrawals: indeed we have heard that at least one US institution has, in recent months, required its customers to give notice when they intend to withdraw more than $10,000. All of which implies that a run on the largest banks has only narrowly been avoided. Citibank of course, like General Motors, is no longer a stock exchange name.

Participating banks were issuing fraudulent ‘bundled’ mortgage-backed securities (itself a wholly fraudulent description) and other derivative financial ‘products’ in the same way that the Federal Reserve issues currency – backed by nothing at all, and ‘supported exclusively’ by the bank’s brand name. Despite the hyped ‘recovery’ rhetoric and a probably temporary illusion of renewed prosperity fuelled by the vast issuance of liquidity to stave off collapse, the banks that have issued these dubious (fraudulent) instruments are now having to take them back: and since they lack the necessary liquidity to finance such buy-backs as the credit market has long since stalled, the US banks are having to rely on the Federal Reserve for ‘cash’.

Partly as a consequences, US Treasury instruments, previously considered risk-free (backed by the ‘Full Faith and Credit of the United States’) are now under pressure.

Several key emerging countries, including Brazil, India, Russia, China and Iran, are discussing the possibility of abandoning the US dollar as a reserve currency (a prospect fraught with practical problems: but the point is that this is being discussed).

Due to our take-down of the idea during the Spring Meetings of the International Monetary Fund and the World Bank, the proposal to expand the use of the Fund’s Special Drawing Rights for this purpose flopped immediately: but the point, again, is that this development reflected international nervousness about the US dollar as the reserve currency.

The huge deficits that the Obama Administration seeks to finance cannot be funded of course by the US Treasury itself, let alone by Americans whose savings and investments lost 50% of their value over one year prior to the recent stock market recovery fuelled by the Fed’s ‘quantitative easing’ policy. There are therefore only two obvious options, as US policymakers have rejected the private sector Refunding Programme option, which would solve the entire problem once and for all: selling ever more debt to reluctant foreigners, or the domestic printing press.

The above-board Refunding Programme to be operated from London will resolve all issues, even though we know for a fact that US authorities have tried, unsuccessfully, to sabotage it. Incredible as it may appear, the US Treasury, the recalcitrant Intelligence Power and the US ‘crony community’ would prefer to destroy the US financial and real economies, and to create conditions for a 50% collapse in American living standards, rather than to yield to the impeccable logic of the private sector Refunding Programme. This is clear from the unsuccessful steps they have taken to try to redirect, amend and hijack it in recent weeks.

One of these steps involved a UK-based intermediary, working indirectly for Cheney, failing to deliver papers to the highest level in the United Kingdom, and yet representing that he did so.

Since the Treasury will not back off from the misguided course it is pursuing, under Geithner as under his criminalist predecessor, Paulson, the United States will career towards the inevitable hyperinflation – with the GOOD MONEY generated by the private sector London operation quickly gaining the upper hand so that the US Treasury will no longer need to issue debt on the open-ended basis currently planned. This is because the Treasury will, ‘whether it likes it or not’, find itself at the receiving end of the windfall dollar tax receipts that it has refused to countenance.

It seems that nothing can be done to get the US authorities to see sense, beyond the fact that the Settlements process has been driven, of late, by the real prospect of the London-based Refunding Programme. Unfortunately, given the reckless intransigence, not to mention the criminal terrorist financing tendencies, of the US Treasury, the rapid US inflation that is now anticipated by the Bank of England, the Swiss National Bank and the Bank of Japan, will wind up chasing American goods domestically, because foreign goods (including crucial ‘just-in-time’ supplies) will be uncompetitive due to the appreciation of foreign currencies against the collapsing dollar.

• So to assume that the real crisis has even started, is naïve in the extreme.



POLICY DECISIONS WITHOUT THE MISSING INPUT



Moreover it appears that policymakers have acted on the assumption that the Settlements process will never be completed (as intended by the Bush-Greenspan ‘never-pay’ model).

That the controlled media have ignored this dimension of the crisis, and our own reports as well as those published in International Currency Review, is one thing (with which we are all familiar).

But for policymakers, who know all about this central dimension of the crisis, to take decisions that appear wholly to ignore the completion of the Settlements process, is extraordinary – implying that the US Treasury’s notorious myopia, untrustworthiness and moral perversity are replicated in other financial capitals as well.

It will therefore be ‘interesting’ to see how policymakers react to the completion of the Settlements process. Frankly, all decisions taken since the crisis erupted, due to the wrong decisions adopted by the Paulson and Geithner Treasury, will have to be reviewed in the light of this ‘unexpected circumstance’ (which was ‘never supposed to happen, you understand’).

As usual, there will be an overlap while the new environment takes hold – and even as national policymakers continue to take comfort from the erroneous assumption that deflationary data is inconsistent with a hyperinflation later.




INDICATORS OF GLOBAL DEFLATION



The World Bank’s Chief economist, Justin Yifu Lin, has reported that global capacity utilisation is running at the historically low level of between 50% and 60%, implying that firms will have to keep dismissing employees, which will depress domestic consumption further. Asian trade data look awful, too: the latest monthly export figures for Malaysia, South Korea and India show year-on-year contractions of 26%, 33% and 28.3% respectively; and the share of exports in Asian Gross Domestic Product (GDP) has risen from 36% to 47% over the past decade, thereby exacerbating Asia’s fatal dependence on exports to the West.


Year-on-year deflation rates for selected countries look worse by the month:
China: – 1.5%; United States: – 0.7%; Singapore: – 0.7%; Ireland: – 3.5%; Japan: – 0.1%;
Thailand: – 3.3%; Switzerland: – 1.0%; Spain: – 0.8%; Taiwan: – 0.5%; Belgium: – 0.4%;
Sweden: – 0.1%; Germany: 0%.



According to the Association of American Railroads, traffic was 22% down in the third week of May 2009 compared with a year earlier, while Canadian rail freight was down year-on-year by 34%. The Chief Economist of the American Trucking Association has said that tonnage is down by 13% over 12 months, with monthly declines of 4.5% in March and a further 2.2% in April.



In Britain, where analysts rely inordinately on a recovery of housing prices, mortgage approvals rose for the third month running in April, to 43,000 – whereas the total volume of monthly approvals needed for UK house prices to stop declining is 80,000.

Overall, the loose talk of ‘green shoots’ is nothing more than propaganda fuelled by a slight ‘feel-better’ factor arising from the historically unprecedented orgy of ‘quantitative easing’ undertaken by central banks which were themselves heavily involved, along with huge institutions they were supposed to be supervising, in the criminal Fraudulent Finance that has been exposed.



And the US Treasury wants to revert to that discredited model!





CHENEY’S NEWSMAX OPERATION CLOSED DOWN?




In the preceding report [26th May 2009] we exposed an elaborate scheme [‘the new Cheney-linked dollar-collection scheme’] to mobilise smaller US investors’ dollars via the Newsmax service which, when analysed, boiled down to the provision of two-month interest-free loans via the purchase of refundable multiple subscriptions, by gullible participants who may well have learned nothing from recent events – ‘permitting’ the investors to ‘follow’ the investment trades to be undertaken by or for the Newsmax proprietor, Christopher Ruddy, on the advice of the CIA financial operative David Frazier.


We revealed that this operative works for Cheney, and that his task in the operation was to ‘free up’ ‘small money’ dollars in order to generate a pool of US dollars for exchange through the collaborating London-based US agent Dr Cynthia Dremel for the Euros stashed illegally by Cheney abroad while he was in office.


We pointed out inter alia that because this operation involved discounting the US dollar, it was de facto a fraud against the United States. It was also exposed as a form of Ponzi operation, given the incorporation of the 60-day 100% refund ‘guarantee’ which meant that if the subscriber wished, he or she could demand their money back within the 60-day period, during which time the promoters will have had the use of the subscriber’s funds interest-free, and will have been able to trade those funds for their own purposes.



• FACT: Following our exposure, nothing more has been heard of this operation.



Instead, on 6th June, Ruddy started promoting his own appearance at ‘FreedomFest’, scheduled for 9th-11th July 2009, at Bally’s in Las Vegas, to be attended by Steve Forbes and ‘my friend, Mark Skousen’. The Editor recalls that the first commentator to mention the Editor’s investigation into Fraudulent Finance (in 2003) was Mark Skousen, who pooh-poohed what we were doing, adding that ‘Christopher Story would be liable loose all his subscribers’, as a result of this investigation.


Anyway, the hassle-hassle Newsmax sales spiel promoting ‘Your Million Dollar Secret Code’ was suddenly switched from the Ponzi scheme to the urgency of needing to register at Bally’s: ‘You can book your deluxe accommodation for just $74 per night! Rooms are going fast, so register today for Newsmax’s special schedule at FreedomFest – and book your room today’.


• And for goodness sake, don’t ever mention ‘Your Million Dollar Secret Code’, please. Nope: a thick veil has been drawn over that one. Other careless CIA promoters of Ponzi schemes: please note: you may be exposed before you can even get started