Sunday, December 15, 2013

China Guts Dollar, Crushes U.S. in Alarming Financial War!!!

China Guts Dollar, Crushes U.S. in Alarming Financial War Game…
 Sep 23, 2010 7:00 PM ET
On a rainy Tuesday in March 2009, U.S. military and intelligence officials gathered in a war room north of Washington to watch a simulated conflict flicker across a bank of video screens.
The struggle was pitting the U.S. against China. And China was winning hands down, writes Eric J. Weiner in “The Shadow Market,” a bleak survey of how flush authoritarian governments deploy financial means to achieve geopolitical ends.
The weapons were dollars, stocks and bonds, not bullets and bombs. The soldiers were Wall Street bankers, hedge-fund traders and economists. For two days, they explored what would happen if the world sank into economic warfare. The outcome was alarming.
“There was no way for America to win,” Weiner says.
Whenever the U.S. did something Beijing didn’t like, China began dumping a fraction of its dollar-backed assets, driving down the currency, sowing economic chaos and prompting U.S. leaders to appease the Chinese. America didn’t have as much leverage with its Asian banker as had been assumed — a lesson reinforced this week when Chinese Premier Wen Jiabao rebuffed U.S. complaints that the yuan was undervalued.
The US Pentagon recently conducted the first financial war game in the world. This simulation exercise was the culmination of months of preparation.The exercise simulates a global financial crisis where the reserve status role of the US Dollar comes under assault by other nations. Participants must determine what the US should do to defend. The 2-day exercise seeks to find out what modes of attack opponents will adopt through role-playing, how various geopolitical scenarios may affect international finance and what measures nations can adopt.This was the game scenario:
Russia announces that she will move her gold reserves to Switzerland.2. Russia conducts bilateral talks with Japan to stop using US Dollar for energy transactions.
3. Russia persuades China to join the arrangement.
I have been studying the dollar’s death as the world reserve currency for a few years now and I want to share some thoughts;
1st – The last 2 years or so, lots of deals going around the dollar between trading countries. Some oil exporters trying to sell outside the dollar getting pressure or war from U.S.
2nd – Now a war of propagda showing up on foreign news sites like – they are anti dollar and also China openly stating they are ready to be the new reserve currency. A call from Chine for all nations to ditch the US dollar.
3rd – The first shot fired will be when China dumps US T-bills at a discount and crashes us and the global economy.
some links…
9 Signs That China Is Making A Move Against The U.S. Dollar
#1 Chinese credit rating agency Dagong has downgraded U.S. debtfrom A to A- and has indicated that further downgrades are possible.
#2 China has just entered into a very large currency swap agreement with the eurozone that is considered a huge step toward establishing the yuan as a major world currency.  This agreement will result in a lot less U.S. dollars being used in trade between China and Europe…
The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at
“It’s a way of promoting European and Chinese trade, but not doing it with the U.S. dollar,” said Brooks. “It’s a bit like cutting out the middleman, all of a sudden there’s potentially no U.S. dollar risk.”
#3 Back in June, China signed a major currency swap agreement with the United Kingdom.  This was another very important step toward internationalizing the yuan.
#4 China currently owns about 1.3 trillion dollars of U.S. debt, and this enormous exposure to U.S. debt is starting to become a major political issue within China.
#5 Mei Xinyu, Commerce Minister adviser to the Chinese government,warned this week that if the U.S. government ever does default that China may decide to completely stop buying U.S. Treasury bonds.
#6 According to Yahoo News, China has already been looking for ways to diversify away from the U.S. dollar…
There have been media reports this week that China’s State Administration of Foreign Exchange, the body that handles the country’s $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.
#7 Xinhua, the official news agency of China, called for a “de-Americanized world” this week, and also made the following statement about the political turmoil in Washington: “The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized.”
#8 Xinhua also said the following about the U.S. debt deal on Thursday: “[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system”.  The commentary in the government-run publication also declared that the debt deal “was no more than prolonging the fuse of the U.S. debt bomb one inch longer.”
#9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold from other nations.  But instead of slowing down, the Chinese appear to be accelerating their gold buying.  In fact, money manager Stephen Leeb says that his sources are telling him that China plans to buy another 5,000 tons of gold.  There are many that are convinced that China eventually plans to back the yuan with gold and try to make it the number one alternative to the U.S. dollar.
So exactly what would happen if the Chinese announced someday that they were going to back their currency with gold and would no longer be using the U.S. dollar in international trade?

David Morgan: Gold Plays An Important Role In Monetary History

In this interview, Sprott Money talks with David Morgan about several topics. We have picked out some interesting parts of the discussion: long and short term outlook for the metals, as well as the part about the gold standard.
The world never has truly gone off a gold standard, as the dollar took over the role of the world reserve currencyin August 1971:
David Morgan: If you go back in history about a decade and you look at the BIS, the Bank of International Settlements, that’s the bankers’ bank. They accounted in one thing and one thing only, and that was gold. That’s the only thing they accounted for, gold.
Now, if you’re talking about the central bankers’ bank, you’re talking about basically the monetary powerhouse of the entire globe. The only thing that they care about is how much gold you have in a nation state. I would certainly say that that somewhat carries merit. The problem is that we really don’t know who owns what because of all these swaps, interconnections, hypothecations, and rehypothecations.
I’ve always thought what would be the event. No one knows. But, if it ever came to light that there is no real gold in Fort Knox, and of course there’s a lot of conjecture about that.
If somehow there was a Senate investigation or whatever, pick your idea, and it came to light internationally that “oh no! we opened up the curtain and we saw the wizard, and the wizard is naked. There’s no gold at Fort Knox. The US has no gold reserve at all.”
If that were ever to come to light I would think that the US dollar could take a huge plunge. Because the perception, maybe not the reality, maybe the reality, is that the US still has a large gold hold, around 265,000,000 ounces of fine gold.
I doubt it, but again, the market’s perception. So, you could look at different currencies through history and basically, like it or not, gold bug or not, gold plays an extremely important part in monetary history.
The average public is very happy just to believe whatever the government tells them. What is going to wake people up?
David Morgan: I think it’ll be a slow wakeup call. I think it’ll be a series of events, or reality checks, I’ll call them, that take place. I’ll give you a few examples.
Going to the gasoline station and having to wait in a long line. Or, going to the gasoline station and the high grade is out but only medium grade exists. Or, diesel isn’t there. In other words, a disruption in the production chain in something as critical as energy.
And, food. going to the grocery store and your favorite brand of XYZ, you name it; bread, peanuts, pizza, I don’t care what it is, all of a sudden that’s not carried any more. Or, the price of that particular item has gone up substantially. Or, the size has been reduced substantially. Or, again, the shelf is bare. Like, you used to carry this here. Well, that’s out of business. Or, they don’t carry it any more. We’re not going to stock it. The markup is too high.
I think there’ll be kind of subtle little things like that. The general populace will start to realize that things are costing more. There are not as many choices as before. There are disruptions that are coming about in my Internet service. There are disruptions in the energy supply. There are disruptions in the food supply.
Those will be things that’ll cause people… Because that’s on the ground stuff that people do on a daily basis that, awake or asleep, they still will kind of get a wakeup call, so to speak, if they see a disruption. I think that’s what’ll take place.
On top of that, of course, us that are more awake and more aware will be questioning when is the next bail-in coming and what country is it going to be. And, probably, hopefully. preparing ahead of time until that, in my view, eventuality does take place.
Short term forecast for gold and silver:
David Morgan: Within a year I’m upbeat on 2014, but not extremely so. I mean the breakdown point technically in gold was about $1,550 and in silver $26. Both the metals are under those levels right now.
I think both metals will be above those levels in 2014, but not significantly so, although I do have to give the caveat that anything could accelerate. If there’s some big disruption somewhere, some gold delivery that doesn’t take place, or silver, or something along those lines, then certainly the market could accelerate. But, I don’t see that in 2014.
Long term forecast for gold and silver:
David Morgan: Longer term much higher in value. I don’t like to give a paper price although I can. I’m on record back in the early 2000?s saying silver would make it to $100 an ounce, and I think that’s very realistic.
Again, I think it’s the value. I’m along the lines of Mike Maloney and others that you don’t want to focus too much on the paper price, although that’s what everyone does and rightfully so. Because if you sell metals you’re only going to get it for currency. You’re going to take that currency, and it’s either going to be a greater amount or a lesser amount than the currency you put into the investment.
You really want to look at the value, what does an ounce of silver buy historically, and what does it buy today. That is the gauge you should use to determine whether or not it’s fair valued, undervalued, or overvalued.
If you look at gold, the old adage is, of course, a fine men’s suit. You want to look at an ounce of gold, does it still do that? Or, if it buys ten suits then you might consider the fact that it’s overvalued on a historical basis.
That’s the way I’ll be looking at it more than the paper price.
I think it’s going far higher. I think you’re going to see gold overvalued and silver overvalued, and I think in an extreme way. As I just outlined, I think you’ll see where an ounce of gold doesn’t buy one fine man’s suit, it buys 10 or 50 or some extreme metric. I really think that’s where we’re going.
I think we’ll get there before ten years. I think ten years from now… I’m an optimist really. I might not sound it after I’ve been painted with the doomer broad brush, and in some cases that’d be valid. But, I’m a realist is what I am. I’m in the reality of what’s going on in the financial system. And, things are getting worse, not better, in my very studied opinion.
Regardless, I think ten years from now we could definitely be on the upswing. There are a lot of things out there, like the nanotech world, what’s going on in the energy frontier as far as being able to perhaps upgrade the system as a whole and use energy sources that are worthwhile.
I’m not talking about solar and wind. I’m not against them, but they’re really not very efficient. But other areas that might deem higher energy flex density where people have more energy available on a per capita basis, the better that is the higher living standard you have. That’s pretty easily proven.
Ten years out I’m pretty optimistic. But, I think getting to ten years out is going to be very trying over the next few. I’m looking for round numbers, if you want them.
I think $5,000 an ounce gold is probably realistic. Depending on your view of silver, if you’re super optimistic like me and you think it could follow a ten to one ratio you could use that number. Or, you think the current 50 to 1 or 60 to 1 ratio is more appropriate you could use that number.
I think we’re probably going to get to a minimum of the classic monetary ratio of 16 to 1 and as high as 10 to 1. I’ll be consistent here. I wrote about that many years ago. So, if you saw $5,000 an ounce gold then that would imply one tenth would be $500 silver.
But, let’s get past $50 again. I want to be very practical. People ask me all the time what’s the ultimate price. I say let’s be practical. Let’s see it above $26. Let’s see how it trades. Let’s get it back above $30 and see how much interest are in the metals.
I’ll go on the record as saying this. I know markets fairly well. You’re not going to see too much buying by the nonsophisticated money at these levels, unfortunately. But, what you will see once you see silver and gold work their ways higher, once you get the gold above, I don’t know, pick a level, $1,500; $1,600; $1,700, there’ll be a lot more interest in it.
And there’ll be a lot of money spent on the metals once they break to new highs. You’ll see a lot of money come into gold above the $1,900 level, and you’ll see a lot of money come into silver above the $48 level.
It’s not too late, because I think they’re going far higher than that. It’s not nearly as advantageous as buying today. But, the interest in the market today is at a low, and that’s how lows are made.

Iran Is Looking To Remove The Us Military Presence That Protects The Central Banks Interests In The Middle East. Be Prepared For A False Flag

Spain is going further into debt, the people of Spain are leaving to find work elsewhere. Ireland has paid off the debts to the EU or have they? The budget deal in the US benefits everyone but the people of the US. The US will not let Iran do business with foreign oil companies and Iran decided to call off the “nuclear” negotiations. The US can now point the finger at Iran not negotiating with US for peace. Iran is looking to remove the US military presence that protects the central banks interests in the middle east. Be prepared for a false flag.

Let’s Make Money (Full Version)

The truth about Global Warming, Kony 2012 & Zeitgeist.
Over the past decade, the documentary genre has become a bad joke. Fact is no longer a factor. As technology has developed, sights like youtube and vimeo make it possible for anyone to broadcast information, even if the information they express is based on lies. In an academic environment, a paper must have detailed references according to a set of university standards, but in a film, anything goes. The Art of Deception is an explanation of how a documentary is constructed to communicate truth, brainwash the audience and push an agenda.
The Art of Deception explains the way the media has become a puppet for certain people. For example, Al gore used his documentary ‘An Inconvenient Truth’, as a puppet to persuade people that climate change is a real problem. The convenience of Gore’s investments is where the truth really lies, and not in his movie (Which is banned in UK schools because of its blatant lies and disrespect for science).
The US government used Kony 2012, or the invisible children, as a puppet to invade Uganda after they discovered huge amounts of untapped oil. This is explained in great detail in the documentary.
Support the filmmaker at:

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Europe ‘Doomed To Depression’ If Banks Not Fixed

Carl Weinberg, chief economist at High Frequency Economics, says there will be no “happy ending” in Europe unless the banking sector is made stronger.

ALERT US dollar free fall will continue here’s why

Bankers Arrested, Civil War Averted, Economy On The Rebound

Wish List, and a Tale of Two Countries

Dave Hodges
Activist Post

Who says there isn’t justice in the world for the globalists who continue to plunder the assets of average people? Four prominent bankers have been sentenced to prison and assessed hefty financial penalties.

The First District Court of Appeals sentenced four former Goldman Sachs Executives to prison terms ranging from three to five years in prison for financial crimes dating back to 2008. The Supreme Court, fearing civilian reprisals, has refused to hear the bankers appeals.

The mainstream media is reporting that Hank Paulson, former CEO of Goldman Sachs and Secretary of the Treasury as well as being known for being the architect of the bailouts, received the heaviest sentence of five years in prison. Paulson was ordered to pay $33.4 million dollars in fines. Along these same lines, former Goldman Sachs CEO and World Bank President, Tim Geithner, was sentenced to three years in prison along with being assessed a hefty $23 million dollar fine. The mastermind of the MF Global theft, former Goldman Sachs executive and the former Governor of New Jersey, Jon Corzine, was sentenced to four years and an $18 million dollar fine. The most recent Goldman Sachs CEO, Lloyd Blankfein was also sentenced to three years and assessed a $13 million dollar penalty.

When hundreds of thousands of citizens showed up at the Capitol building and began throwing rocks at the building, this triggered the biggest civil unrest in the country’s history. The military refused to become involved and government officials cowered in fear as DHS fought off the protesters. Shortly thereafter, the beleaguered Congress rediscovered its backbone and issued arrest warrants for the four criminal banksters. Of course, Goldman Sachs and several other international bank entities warned the citizens that the country would collapse economically and it would become necessary to usher in martial law. This proved to be an empty threat, as the opposite ended up being true. The year following the arrests of these four bankster thugs, the economy grew at a rate of 2.6%. It is safe to say that the government will never tolerate the undue influence of any financial institution again. The country is approaching financial solvency. Goldman Sachs has been turned into a bed and breakfast location. Who would have thought that this would have been possible?

In a related story, Nancy Pelosi also went to prison for two years after being convicted of insider trading on Wall Street. And Dianne Feinstein went to prison for five years for repeated violations of conflicts of interest as Feinstein’s husband was the beneficiary of several no-bid federal government contracts. Obama was impeached and convicted for identity theft and most importantly, treason. Happy days are here again.

Fade to black….not in a pigs eye!

I would pray that these events would take place, but unfortunately, our bankster crime rate continues to rise exponentially. However, the equivalent of these events, and more, just took place in Iceland.

The World's Center of Democracy
Icelander’s must not eat GMOs, their water must not be fluoridated and their men never need Viagra. If Americans were to ever travel to Iceland, they would find that the country has much more than just snowballs! Why? Icelander’s have courage and intestinal fortitude. Meanwhile, back in the USA our sheep are too busy watching reality shows, while at the same time running from reality. However, as the reader will soon discover, the circumstances in Iceland are unique and are not likely shared by other Western nations.
True Justice

In an unprecedented ruling, Reykjavík District Court sentenced four former banking executives of the Kaupthing Bank to between 3 and 5 1/2 years in prison for financial crimes dating back to 2008. Vísir is reporting that former Kaupthing director, Hreiðar Már Sigurðsson received the heaviest sentence which consisted of five and a half years. He was also ordered to pay $33.4 million and also pay the government’s legal fees. There is a God and there is justice in Iceland as former Kaupthing chairperson, and former Interpol fugitive, Sigurður Einarsson, was sentenced to five years, and ordered to pay a total of $14.3 million as well as legal fees.

If the Icelandic people could get their hands on Goldman Sachs officials they would.They impeached and convicted corrupt politicians who were in league with Wall Street, many of which are serving prison sentences. Iceland is on its way to a full economic recovery while still saying no to the corrupt Goldman Sachs influences in Europe. Iceland is saying no to the Bank for International Settlements. Iceland is a beacon of hope for the rest of the G20 nations including the United States, or is it?

Why Did the Uprising Work in Iceland and Nowhere Else?

Gadaffi showed the same level of defiance to the corrupt banksters as did the people of Iceland, yet he is dead. What is the difference? In Iceland, the people are engaged and are committed. This was not the case in Libya and this is certainly not the case in the United States. Both Libya and the United States have been invaded by massive immigration (i.e. many al-Qaeda took up residency in Libya before the revolution) and America’s immigration issues have been well chronicled. Both countries lacked the solidarity which ultimately served to dilute their national resolve. Further, in America, the mainstream media keeps the masses docile and dumbed down while conducting their version of “Occupy America”.

The Major Reason Why Iceland Beat the Bankers

Most of Congress has been bought off. The so-called representative government is beyond the reach of the people. In Iceland, that is not the case and even if it was, it would not matter.

The most important fact related to the Icelandic revolution happened after the implementation of a type of self-governing approach which includes some elements of "Direct Democracy". Icelanders have much more say in their government than we do. This is a huge advantage for the citizens of Iceland, as from this moment on, no external power can conquer their country through hidden activities and the creation of bribed puppets. Politicians can theoretically be bribed, but it would not matter.

Iceland’s President, Olafur Ragnar Grimmson, was interviewed earlier this year at the World Economic Forum in Davos on why Iceland has enjoyed such a strong recovery after its complete financial collapse in 2008, while the rest of the West is still mired in debt, poverty and hopelessness to go with empty promises of an economic recovery.

When asked whether Iceland’s policy of letting the banks fail would have worked in the rest of Europe, Grimsson stated:
… Why are the banks considered to be the holy churches of the modern economy? Why are private banks not like airlines and telecommunication companies and allowed to go bankrupt if they have been run in an irresponsible way? The theory that you have to bail-out banks is a theory that you allow bankers enjoy for their own profit their success, and then let ordinary people bear their failure through taxes and austerity. 
People in enlightened democracies are not going to accept that in the long run...

Americans have three choices if our nation is to recover: (1) Civil War; (2) Establish direct democracy and begin the political purge that will rid the government of the banker takeover; or, (3) Passively accept our present circumstance and embrace our ultimate and complete demise.

Our best and most effective course of action would be to work towards direct democracy. This would be a slow process because our government has stage-four cancer. We would have to continually create one-term politicians until we got a majority of people who would grant the country a say in how they we are governed.

Some believe that civil war is inevitable as the bankster controlled government tightens it noose around the country. This could be the case when the government and its foreign assets begin to seize guns from American citizens. The implementation of Obamacare could prove to be the trigger event leading to the government’s need to seize the guns due to massive civil unrest.

Given the fact that the past is the best predictor of the future, at least at this moment, I would bet that FEMA camps and the unimaginable lies directly in our future.

What do you think? Is there a way to galvanize the country and proceed against the existing establishment with a single purpose similar to what happened to Iceland? I would propose that we have an electronic town hall meeting in order to share ideas. Please share your thoughts on the comment board with regard to these questions and issues.

Dave is an award winning psychology, statistics and research professor, a college basketball coach, a mental health counselor, a political activist and writer who has published dozens of editorials and articles in several publications such as Freedoms Phoenix, News With Views and The Arizona Republic.

The Common Sense Show features a wide variety of important topics that range from the loss of constitutional liberties, to the subsequent implementation of a police state under world governance, to exploring the limits of human potential. The primary purpose of The Common Sense Show is to provide Americans with the tools necessary to reclaim both our individual and national sovereignty.

'Iceland model: How to deal with bankers should be standard for whole wo...

“Honey Traps” and the Strauss-Kahn Affair: A Stealthy Coup d’état at the IMF?

Source: José Miguel Alonso Trabanco

What power has law where only money rules?» –Petronius
French-born Dominique Gaston André Strauss-Kahn became the International Monetary Fund’s (IMF) tenth Managing Director in November 2007.
His term was remarkable because of three different extraordinary facts, namely:

Unlike most of his predecessors at the helm of the IMF, Dominique Strauss-Kahn –also known as DSK to his fellow Frenchmen– is not a banker and has no known affiliations to banking entities. Instead, he had worked as a politician and as a college professor. (Whitney, 2011).
1. Less than a year after his arrival at the IMF, a worldwide financial crisis of considerable proportions took place. (Chossudovsky, 2011).
2. As a member of the French Socialist Party, DSK was widely believed to harbor aspirations to run for the highest political office in France, i.e. the Presidency, in the elections that were scheduled for 2012. He was regarded as a competitive challenger who would contend against the then incumbent President Nicolas Paul Stéphane Sarkozy de Nagy-Bocsa, candidate of the conservative-leaning UMP Party –Union for a Popular Movement– (Weisenthal, 2011).
3. His skill as IMF Managing Director was praised for being a “sagacious leader” (Stiglitz, 2011) and, replaying the role of the legendary Austrian Prince and statesman, DSK was described as “Metternich with a Blackberry” for his bright maneuvers to establish a “system of interlocking interests” in order to ensure that stability and balance, understood in both financial and political terms, could prevail (Johnson, 2010).
A Sex Scandal at the Highest Levels

Nevertheless, DSK’s promising career, in both the IMF and French politics was abruptly undermined in New York, on May 14th, 2011 when he was arrested and charged with sexual assault and attempted rape of Guinean-born Sofitel Hotel chambermaid Nafissatou Diallo. Shortly afterwards –on May 18th, 2011–, DSK tendered his resignation from the IMF. He was swiftly replaced by French Finance Minister Christine Madeleine Odette Lagarde. DSK pleaded not guilty and, eventually, all charges were dismissed (Los Angeles Times, 2011) after even public prosecutors became unable to believe the accuser’s words (BBC, 2011).

Was this incident just another high-profile sex scandal, similar to the ones involving former US President William Jefferson Clinton, former US Democratic Senator John Reid Edwards, former Italian Prime Minister Silvio Berlusconi, former Israeli President Moshe Katzav, former President of the World Bank Paul Dundes Wolfowitz, former Director of the Central Intelligence Agency David Howell Petraeus, et al. or… is there more than meets the eye at play? As an educated guess, this research paper is meant to provide a plausible answer.
Unanswered Questions and Reasonable Doubt

«Justice, and only justice, you shall follow… » –Deuteronomy 16:20
 This section is neither a specialized forensic analysis nor is intended to be one. Instead, it is meant to highlight the correlation of political circumstances that, once encompassed together, turn out to be too disturbing and coincidental to be dismissed outright as a mere product of chance and, thus, they provide a plausible basis to raise more than reasonable doubts concerning the official version of events as described in the previous section.

In the hermetic jargon of intelligence circles, well organized setups involving sexual baits and specially designed to compromise high-value targets are euphemistically known as ‘honey traps’, i.e. operations which are “undertaken to ensnare an unwary target in a compromising sexual encounter that may leave the victim vulnerable to blackmail that might result in espionage” (West, 2007). In fact, an experienced analyst observes that “a useful rule of thumb in evaluating spectacular scandals around prominent public figures is to ask what and who might want to eliminate that person” (Engdahl, 2008).

Statesmen, military leaders, diplomats, strongmen, warlords, ministers, dictators, potentates, monarchs, lawmakers, government officials, spies, businessmen, corporate executives, merchants, bankers, media moguls, influential journalists and decision makers in general, like any other human being, have personal weaknesses and flaws that can and sometimes are indeed exploited by rivals willing to damage them.

Those are factors that are closely scrutinized by psychological analysts employed by several intelligence agencies specifically for that purpose. Those same agencies “prepare sophisticated psychological profiles before they intervene. They know that the knowledge of the secret lives—and kinks— of public figures can easily discredit them. They specialize in foraging for dirt and can leak information or use it opportunistically […furthermore,] sex scandals have become a staple of media exploitation with personal morality plays trumping political morality confrontations every time. They are both great distractions and effective tools of character assassination which are often more effective than more violent ways to neutralize people considered dangerous” (Schechter, 2011).
DSK was well aware of his personal traits which could be used by political opponents to damage his aspirations: “cash, women and being Jewish” (Harman, 2011). The latter could be exploited by vicious anti-Semites close to both extremes of the French political spectrum. Nevertheless, his reputation of being a seducer was a far more threatening vulnerability because he could be blackmailed if he were to contend against then incumbent French President Nicolas Sarkozy, as was discussed in French journalistic outlets (Bacqué, 2011).
Concerning more specific details, there are several conditions surrounding alleged victim, Nafissatou Diallo that question the truthfulness of her testimony. Prior to the incident, it has surfaced that the Guinean-born woman’s bank account had received 100, 000 dollars (Roberts, 2011). Even mainstream media published that “little by little, her credibility as a witness crumbled — she had lied about her immigration, about being gang raped in Guinea, about her experiences in her homeland and about her finances, according to two law enforcement officials. She had been linked to people suspected of crimes. She changed her account of what she did immediately after the encounter with Mr. Strauss-Kahn. Sit-downs with prosecutors became tense, even angry. Initially composed, she later collapsed in tears and got down on the floor during questioning. She became unavailable to investigators from the district attorney’s office for days at a time(Wilson, 2011).
 At this point, it is important to briefly examine a remarkable precedent. Back in 2008, it was leaked that then Governor of New York Eliot Spitzer had resorted to exclusive sexual entertainment services. The scandal was taken advantage of by Republican politicians willing to unseat the Democratic Governor and his political career was ultimately undermined.
 Initially, Spitzer had inflicted a painful defeat on the Grand Old Party –GOP– when was elected Governor with close to 70% of the vote and, a few years later, he may have irrevocably sealed his own fate by being an outspoken opponent of the Bush Administration’s apparent criminal complicity with banking behemoths –“predatory lenders”– at the expense of common citizens, i.e. homeowners, taxpayers and consumers (Spitzer, 2008). Also, as former Attorney General of the State which houses the very core of the US financial system, Spitzer even challenged powerful interests by looking deep into financial crimes, frauds and corruption by Wall Street investment banks in the early 2000’s (Engdahl, 2008).

 Interestingly, in an apparent attempt to further tarnish DSK’s integrity, Kristin Davis, the Manhattan Madam of the prostitute who was involved in the Eliot Spitzer sex scandal, publically announced that “one of her call girls refused to service Strauss-Kahn a second time because he was too rough in the act” (Roberts, 2011).

So the possibility that Spitzer was overthrown by a cabal integrated by a combination of powerful financial interests and opportunistic political opponents must be seriously considered. The aforementioned raises an unavoidable question: Could something similar, although on a larger scale, have happened to Dominique Strauss-Kahn?

On the other hand, DSK had been alerted in advance that his political opponents back in France –the UMP Party– somehow had managed to gain access to his personal communications and, more amazingly, “he had already been warned by a friend in the French diplomatic corps that an effort would be made to embarrass him with a scandal(Epstein, 2011). It is telling that DSK had previously anticipated that he would be the target of a conspiracy masterminded by political enemies and engineered to topple him through accusations of an alleged rape (Allen, 2011).

His suspicions could not have turned out to be more accurate given that he was well aware of his particular vulnerable points. It is even more revealing that the very first person to disseminate the news about the French FMI Managing Director was Jonathan Pinet, a politics student who also happens to be an activist in Nicolas Sarkozy’s UMP party. That information was, in turn, spread by Arnaud Dassier, a spin doctor who had worked for Sarkozy’s presidential campaign and responsible of orchestrating a campaign designed to discredit DSK’s Socialist political position (Roberts, 2011).
 Furthermore, Accor Group is the owner of the Sofitel hotel. Along these lines, it cannot be ignored that, at the time of the incidence, Accor’s head of security was none other than René-Georges Querry, who had previously “worked closely in the police with Ange Mancini, who [was] coordinator for intelligence for President Sarkozy” (Epstein, 2011).

Sometimes, even silence is deafening. Dominique Strauss-Kahn could have been politically protected by prominent members of the US political establishment. He was not. Quite the contrary: DSK was charged with seven crimes –attempted rape, sexual abuse, forcible touching, among others– by Manhattan District Attorney Cyrus Vance Jr., son of former US Secretary of State Cyrus Vance, whose Deputy Executive Secretary of State was former CIA official Frank G. Wisner II, who became Nicolas Sarkozy’s stepfather in 1977 when he married his stepmother Christine de Ganay. Additionally, DSK was denied bail by Judge Melissa Jackson, who was politically sponsored and handpicked by New York Mayor Michael Bloomberg, who also happens to be a powerful player in Wall Street. (Chossudovsky, 2011).

Moreover, the fact that DSK was arrested aboard an airplane shortly before it was scheduled to depart creates the “image of a man fleeing from a crime” (Roberts, 2011) even though he was heading to Europe in order to hold a meeting with German Chancellor Angela Merkel and, afterwards, participate in a meeting of eurozone finance ministers in Brussels (Bucci, 2011).
 Afterwards, it must not be forgotten that, when Strauss-Kahn was arrested, he was temporarily substituted by John Philipp Lipsky before Christine Lagarde was officially appointed as the next Managing Director of the IMF. During his career, it has to be pointed out, Lipksy had worked for banking corporations such as Salomon Brothers and JPMorgan Chase (Whitney, 2011).
By the way, Lagarde’s candidacy to succeed DSK was promptly and enthusiastically backed by the US Treasury Secretary Timothy Geithner –himself a former Goldman Sachs man–, who somewhat prematurely argued that Dominique Strauss-Kahn was “obviously not it in the position to run the IMF” (Calabresi, 2011). Perhaps not incidentally, “the report from the prosecutor proving DSK’s innocence was released on the day following the IMF’s executive board decision instating Lagarde as Managing Director of IMF for a five year term […] if this information had been revealed a few days earlier, Lagarde’s candidacy as IMF chief might have been questioned” (Chossudovsky, 2011).

These surprising coincidences have lead some analysts to assert the hypothesis that “regime change at the IMF […had] been speedily implemented” (Chossudovsky, 2011). Was it? It is certainly a legitimate question that deserves careful attention. If so, who was interested in ousting him and, even more importantly, what were the motivations behind such move?
The above article is Part I of a longer essay forthcoming on Global Research
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 [1]SDRs are supplementary foreign exchange reserve assets held by member countries and maintained by the IMF and their value is based on four international currencies: the US dollar, the euro, the yen and the pound and can be exchanged for freely usable currencies. They represent a potential claim on the freely usable currencies of IMF member states.

'Iceland model: How to deal with bankers should be standard for whole world'

Iceland Jails Former Bank Bosses

Four former bosses from the Icelandic bank Kaupthing have been sentenced to between three and five years in prison.
They are the former chief executive, the chairman of the board, one of the majority owners and the chief executive of the Luxembourg branch.
They were accused of hiding the fact that a Qatari investor bought a stake in the firm with money lent – illegally – by the bank itself.
Kaupthing collapsed in 2008 under the weight of huge debts.
For years, Kaupthing and other Icelandic banks had aggressively pursued overseas expansion plans, but when they went into administration, they brought the country’s economy to its knees.
Just a few weeks before the collapse, Kaupthing announced that Sheikh Mohammed Bin Khalifa Bin Hamad al-Thani had bought a 5.1% stake during the financial crisis in 2008.
The move was seen as a confidence boost for the bank.
Legal costs
Hreidar Mar Sigurdsson, the former chief executive, received five and a half years, while Sigurdur Einarsson, former chairman of the board, was sentenced to five years in jail.
These are the heaviest sentences for financial fraud in Iceland’s history.
The court gave Olafur Olafsson, one of the majority owners three years and Magnus Gudmundsson the former chief executive of the Luxembourg branch, three and a half years.
None of them were in court for the decision but it is expected that they will appeal.
The four were also made to pay their own legal costs for the case, which amount to millions of pounds.
The special prosecutor, Olafur Hauksson, said the deal had influenced the bank’s share price. He also said the loans provided for the deal were illegal.
Mr Hauksson told the BBC that there was still another, bigger case against Kaupthing Bank ongoing, in which it is accused of market manipulation. It is due to come to court at the end of January.
Kaupthing Singer and Friedlander was the UK arm of Kaupthing Bank – the largest of the Icelandic banks that went into administration in October 2008.
According to the Icelandic media, the charges state that the deal was done by first depositing a loan from Kaupthing bank into shell companies in the British Virgin Islands.
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