May 1, 2017
For several months during 2016 I was
researching the SDR, Federal Reserve Note/U.S. dollar, global currencies
and the people behind the scenes pulling the strings. The pulling of
the strings was being conducted by oligarchs,
like the Group of 30,
the IMF, BIS and other unelected globalist operating in broad daylight
or the shadows. During this time it became clear the task the citizens
face is one of epic proportions. These unelected bureaucrats, that write
policy to determine our fate answer to no one except the people at the
very top of the economic/financial food chain. The people we rarely hear
about and know very little of their lives. These are the most dangerous
of all and the people benefiting the most from our labor and resources.
How did we reach this point? Why do these criminals get away with such heinous crimes?
The people, like Dr. Coats and Mr. Robert Pringle, both were
members/chiefs at the IMF, while they have been on the teams creating
policy, the policies they put forth were met with resistance – who is
this resistance and why are they resisting? Knowing these people and
understanding aspects of their motivations is what I am referencing. Why
would someone put up a wall to block logic? Why would anyone want to
institute a form of slavery, on a global scale, that is impossible to
get away from and actually make it illegal to get away from it? If I
print currency to be used instead of Federal Reserve Notes I would be
jailed for counterfeiting. Federal Reserve Notes, according to the
Constitution, have been and will continue to be, counterfeiting as long
as they exist, period. Anyone that says otherwise is protecting an
agenda or has no knowledge of the Constitution. Federal Reserve Notes
are an instrument of debt, they were born of debt and if the debt is
ever repaid the Federal Reserve Note would go “poof” in the night. It is
physically impossible to repay the debt that is the Federal Reserve
Note. What is the difference between a Federal Reserve Note, a Euro,
Canadian dollar, Australian dollar, Real, Yen or any other central bank
OWNED fiat currency? Nothing. The only difference is location and color of dye used to stain the paper.
Do you have “full faith and credit” in the government – any
government? Think about it. This is the back-stop for all the fiat
currencies being used around the world. Promises (lies) made by
politicians who’s only concern is staying in a position of power in
order to extract more of our wealth for themselves and their corporate
friends. Full faith and credit!
If we review the words of Alan Greenspan’s testimony before Congress
in 1998 we find the smoking gun in the hands of the head of the Federal
Reserve. Mr. Greenspan’s testimony overrides anything and everything
people have to say about gold, gold manipulation and the corrupt system
that enslaves us all. Federal Reserve policies and mandates are for the
sole purpose of protecting the Federal Reserve and it’s member banks.
Potential Application of the CEA to OTC Derivatives
The vast majority of privately negotiated OTC contracts are settled
in cash rather than through delivery. Cash settlement typically is based
on a rate or price in a highly liquid market with a very large or
virtually unlimited deliverable supply, for example, LIBOR or the spot
dollar-yen exchange rate. To be sure, there are a limited number of OTC
derivative contracts that apply to nonfinancial underlying assets. There
is a significant business in oil-based derivatives, for example. But
unlike farm crops, especially near the end of a crop season, private
counterparties in oil contracts have virtually no ability to restrict
the worldwide supply of this commodity. (Even OPEC has been less than
successful over the years.) Nor can private counterparties restrict
supplies of gold, another commodity whose derivatives are often traded
where central banks stand ready to lease gold in increasing quantities should the price rise.
To be sure, a few, albeit growing, types of OTC contracts such as
equity swaps and some credit derivatives have a limited deliverable
supply. However, unlike crop futures, where failure to deliver has
additional significant penalties, costs of failure to deliver in OTC
derivatives are almost always limited to actual damages. There is no
reason to believe either equity swaps or credit derivatives can
influence the price of the underlying assets any more than conventional
securities trading does. Thus, manipulators attempting to corner a
market, even if successful, would have great difficulty in inducing
sellers in privately negotiated transactions to pay significantly higher
prices to offset their contracts or to purchase the underlying assets.
Finally, the prices established in privately negotiated
transactions are not widely disseminated or used directly or
indiscriminately as the basis for pricing other transactions.
Counterparties in the OTC markets can easily recognize the risks to
which they would be exposed by failing to make their own independent
valuations of their transactions, whose economic and credit terms may
differ in significant respects. Moreover, they usually have access to
other, often more reliable or more relevant sources of information.
Hence, any price distortions in particular transactions could not affect
other buyers or sellers of the underlying asset.
No one, not even the money masters, can predict the future and no one
can predict the market. The money printers can create currency to
situation like Deutsche Bank
(DB), however, they can not whitewash the derivatives market that is
the underpinning of these too big to jail banks. $46 trillion in
notional derivatives at DB alone, another
$70+ trillion at JPMorgan
and that’s just two of the crime syndicates operating in the very
opaque OTC market. The derivatives market is the problem. Once something
gets moving through this market it will be almost impossible to stop.
The daisy-chain of interconnectedness is on such a scale that a handful
of derivatives could set the banking system ablaze. When you are talking
$1.2 QUADRILLION of
“financial instruments” getting out of balance or going belly up the
whole world has a problem. This is what DB represents and the financial
world knows it.
Why would Ray Dalio say, in October 2016, the ECB and BoJ have anywhere from 8 months to 5.5 years remaining before they go belly up? The only way to get the outside number is by monetizing everything
including 20% of the entire stock market. Is that realistic – is this
what’s happening to the S&P500 and why it continually post new
record highs? Is Mr. Dalio just another boob to be ignored? 5.5 years is
not that long. Mr. Dalio is not predicting the future he is merely
reviewing the trajectory the money printers are traveling.
As the 2008 economic – debt – implosion continues to unfold we need
to keep in mind the people that engineered this nightmare and then
foisted it upon each of us. The Federal Reserve being at the heart of
the situation working in concert with their henchmen the “too big to
jail” banking cabal and the people operating these crime machines. It is
not enough there was approximately $16 – $23 trillion stolen from the
American people, the crime spree has continued to this day with no sign
of letting up.
As China, Russia and the other BRICS, SCO and EEU
member nations continue moving their economic engine forward the
western world – primarily the U.S. and Europe – continues drowning in
the cesspool of debt created by these monsters. As the eastern world
becomes stronger will these nations simply walk away from the western
nations and the unsustainable debt load? The eastern nations, especially
along the One Belt One Road (New Silk Road) will no longer be
dependent upon the western nations to ship goods and services as these
nations will need the manufacturing and services for their own
internal needs. Where will the western world acquire the latest and
greatest developments? Who will manufacture the crayons, toilet paper
and all the other everyday items that have been off-shored and in the
very near future will be produced in fully automated factories? If
these manufacturing jobs return to the western world odds are the
factories will be designed with robots, AI and other technologies to
produce the goods and humans will need not apply.
Stephen Roach, Project Syndicate, describes this way:
Second, has the developing world finally broken free of its long-standing dependence on the developed world?
I have long
argued that claims of such a “decoupling” were spurious, given the
persistence of export-led growth in poorer countries, which tethers
their economies to external demand in richer countries. But the facts
now speak otherwise. Growth in global trade slowed to a 3% average pace
over the 2008-2016 post-crisis period – half the 6% norm from 1980 to
Yet, over the same period, GDP growth in the developing economies barely skipped a beat.
This attests to a developing world that is now far less dependent on
the global trade cycle and more reliant on internal demand.
So, where do we go from here and how will we get there? Debt, busted
infrastructure and lazy arrogant people doesn’t make for a great place
to build a new factory nor does it make a nation state, like China, wish
to invest. China may be pumping investment dollars into the western
world, but make no mistake about it, the goal is too extract all the
wealth possible from the host and return it to a more stable economic
environment at home. The “developed”/Western world will soon become the
“emerging market” while the current “emerging market” continues to
conduct business as the West conducts war.
Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.