Economic Warfare Against the US

Jim Willie, editor of The Hat Trick Letter (an investment newsletter) makes an interesting point about who owns our debt. (When our gov’t spends $700 billion to prop up the markets the money has to come from somewhere. Much of it comes from overseas.)

A hidden initiative has been in progress for the last two weeks.

Foreigners are forced to supply credit for the Untied States. Nations led by Russia, China, the Arabs, and Japanese are meeting to form a formal committee. They have a common purpose, to maintain and manage massive US$-based debt securities in danger.

Their continued credit support is hampered by three magnificent factors, each a show stopper.
1) The US banks are insolvent,
2) The Wall Street bankers export fraudulent bonds, and
3) The US Military has acted with chronic aggression in violation of established contracts, international treaties, and disrespect for sovereign boundaries.

So they are working to organize a committee of giant USTreasury Bond creditors. They wish to confront the US debtor with a single voice. Regard this important step as a prelude to possible default of the US Treasuries. It is one thing to be in trouble from insolvency. Add corruption from export of fraud, and you have a bigger problem. Throw in military aggression, complete with misreporting by a controlled press, and you have a crisis in need of almost immediate remedy.

My argument has been made for four years, that foreign held US debt creates a threat to national sovereignty.

Since when are the Chinese our friends and allies? They are business partners turned rivals, now adversaries.

Since when are Russians our friends and allies? They are energy and metals suppliers, betrayed by treaty violations, now adversaries, even on the military front.

Since when are Arabs our friends and allies? For three decades an uneasy partnership has been in existence, one that has turned into a blatant protection racket. The endless concocted war on terrorism is seen by Arabs as a war on Islam.

Jim then talks about the possibility of the US Gov’t defaulting. (Remember, credit ratings are extremely important. When AIG’s creditworthiness was downgraded to Baa last week it triggered their collapse and the freezing of commodity ETFs in Europe.)

Yesterday, it was with great disillusion yet satisfaction that my eyes and ears witnessed an interview by a Standard & Poor analyst.

He said there was no imminent danger of a USTreasury debt security downgrade, but he did say that if pushed, the S&P would put them on NEGATIVE WATCH.

Interpret that to mean the US Treasuries will soon be downgraded.

Never is a denial of such importance made without coming to fact and fruition later. Why else is the topic even discussed? This line of thinking is basic when ripping the BS from US financial propaganda.

Notice the Credit Default Swap price for US Treasury Notes. The price is around 0.24% for the AAA-rated US Govt debt. Without colossal, continued, corrupt pressure against the ratings agencies by the US thugs in financial orifices, the US Govt debt would have been downgraded immediately with the launch of the Iraq and Afghan Wars, or years earlier. The Shock & Awe should have been reflected in USTBond risk.

The US bankers have lost control badly.

Even ill-equipped US Fed Chairman Bernanke admitted recently as having lost control. He spoke to economist David Hale at a Florida financial conference last week.

Bernanke said, “We have lost control. We cannot stabilize the dollar. We cannot control commodity prices.”

[Did you catch that? Bernanke just admitted to manipulating the gold/silver markets to make the dollar look good.]  The age of central bank control, ala Soviet Politburo, is coming to an end. GOLD RECOGNIZES IT.

Check out the 1-month USTreasury Bill yield. Incredibly, it closed under 0.1% yesterday. This ultra short-term bond yield testifies to lost control and the advent of extreme conditions, the prelude to an historic storm. Just what should the US Treasury maturity yield curve look like before a default? Let me check, and get back to you. Ooops, no precedent!

The TED Spread (difference between USTreasury and EuroDollar yield) has jumped up, another signal of banking turmoil. In recent days, the tight grip control of certain commodities has been lost by the Evil Ones. Even Morgan Stanley has been forced to close down its trading desks at the Platts Window, where they trade crude oil.

The USCongress is equally lost. Today, a quote came from Senate Majority Leader Harry Reid. He said, “No one knows what to do. We are in new territory, this is a different game. [Neither Federal Reserve Chairman Ben Bernanke nor Treasury Secretary Henry Paulson] know what to do, but they are trying to come up with ideas.”

Gee! Maybe the chief architects of this grand failure have a solution? They should be ignored then imprisoned. Perhaps they are seeking final opportunities to steal, raid, and pilfer from the public till during the final months of this Administration.

Are we closer than we’ve ever been to a US Gov’t default. Is the US within a year or two of bankruptcy?

◊◊◊◊ Now: Gold @ $873.40, Silver @ $12.63, USDX @ 77.74◊◊◊◊
◊◊◊◊ Now: DJIA 11,388.44

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