This informative analysis has been contributed by Brandon Smith of Alt Market.
On
the surface, the economic atmosphere of the U.S. has appeared rather
calm and uneventful. Stocks are up, employment isn’t great but jobs
aren’t collapsing into the void (at least not openly), and the U.S.
dollar seems to be going strong. Peel away the thin veneer, however, and
a different financial horror show is revealed.
U.S. stocks have enjoyed unprecedented crash protection due to a
steady infusion of fiat money from the Federal Reserve known as
quantitative easing. With the advent of the “taper”, QE is now swiftly
coming to a close (as is evident in the overall reduction in treasury
market purchases), and is slated to end by this fall, if not sooner.
Employment has been boosted only in statistical presentation, and not
in reality. The Labor Department’s creative accounting of job numbers
omits numerous factors, the most important being the issue of long term
unemployed. Millions of people who have been jobless for so long they no
longer qualify for benefits are being removed from the rolls. This
quiet catastrophe has the side bonus of making it appear as though
unemployment is going down.
U.S. Treasury bonds, and by extension the dollar, have also stayed
afloat due to the river of stimulus being introduced by the Federal
Reserve. That same river, through QE, is now drying up.
In my article
The Final Swindle Of Private American Wealth Has Begun, I
outline the data which leads me to believe that the Fed taper is a
deliberate action in preparation for an impending market collapse. The
effectiveness of QE stimulus has a shelf-life, and that shelf life has
come to an end. With debt monetization no longer a useful tool in
propping up the ailing U.S. economy, central bankers are publicly
stepping back. Why? If a collapse occurs while stimulus is in full
swing, the Fed immediately takes full blame for the calamity, while
being forced to admit that central banking as a concept serves
absolutely no meaningful purpose.
My research over many years has led me to conclude that a collapse of
the American system is not only expected by international financiers,
but is in fact being engineered by them. The Fed is an entity created by
globalists for globalists. These people have no loyalties to any one
country or culture. Their only loyalties are to themselves and their
private organizations.
While many people assume that the stimulus measures of the Fed are
driven by a desire to save our economy and currency, I see instead a
concerted program of destabilization which is
meant to bring
about the eventual demise of our nation’s fiscal infrastructure. What
some might call “kicking the can down the road,” I call deliberately
stretching the country thin over time, so that any indirect crisis can
be used as a trigger event to bring the ceiling crashing down.
In the past several months, the Fed taper of QE and subsequently U.S.
bond buying has coincided with steep declines in purchases by China, a
dump of one-fifth of holdings by Russia, and an overall decline
in new purchases of U.S. dollars for FOREX reserves.
With the Ukraine crisis now escalating to fever pitch, BRIC nations
are openly discussing the probability of “de-dollarization” in
international summits, and the ultimate dumping of the dollar
as the world reserve currency.
The U.S. is in desperate need of a benefactor to purchase its ever
rising debt and keep the system running. Strangely, a buyer with
apparently bottomless pockets has arrived to pick up the slack that the
Fed and the BRICS are leaving behind. But, who is this buyer?
At first glance, it appears to be the tiny nation of
Belgium.
While foreign investment in the U.S. has sharply declined since
March, Belgium has quickly become the third largest buyer of Treasury
bonds, just behind China and Japan, purchasing more than $200 billion in
securities in the past five months, adding to a total stash of around
$340 billion. This development is rather bewildering, primarily because
Belgium’s GDP as of 2012 was a miniscule $483 billion, meaning, Belgium
has spent nearly the entirety of its yearly GDP on our debt.
Clearly, this is impossible, and someone, somewhere, is using Belgium as a proxy in order to prop up the U.S. But who?
Recently, a company based in Belgium called Euroclear has come
forward claiming to be the culprit behind the massive purchases of
American debt. Euroclear, though, is not a direct buyer. Instead, the
bank is a facilitator, using what it calls a “collateral highway” to
allow central banks and international banks to move vast amounts of
securities
around the world faster than ever before.
Euroclear claims to be an administrator for more than $24 trillion in
worldwide assets and transactions, but these transactions are not
initiated by the company itself. Euroclear is a middleman used by our
secret buyer to quickly move U.S. Treasuries into various accounts
without ever being identified. So the question remains, who is the true
buyer?
My investigation into Euroclear found some interesting facts.
Euroclear has financial relationships with more than 90 percent of the
world’s central banks and was once partly owned and run by 120 of the
largest financial institutions back when it was called the “Euroclear
System”. The organization was consolidated and operated by none other
than JP Morgan Bank in 1972. In 2000, Euroclear was officially
incorporated and became its own entity. However, one must remember, once
a JP Morgan bank,
always a JP Morgan bank.
Another interesting fact – Euroclear also has
a strong relationship with the Russian government and
is a primary broker for Russian debt to foreign investors. This once
again proves my ongoing point that Russia is tied to the global banking
cabal as much as the United States. The East vs. West paradigm is a sham
of the highest order.
Euroclear’s ties to the banking elite are obvious; however, we are
still no closer to discovering the specific groups or institution
responsible for buying up U.S. debt. I think that the use of Euroclear
and Belgium may be a key in understanding this mystery.
Belgium is the political center of the EU, with more politicians,
diplomats and lobbyists than Washington D.C. It is also, despite its
size and economic weakness, a member of an exclusive economic club
called the
“Group Of Ten” (G10).
The G10 nations have all agreed to participate in a “General
Arrangement to Borrow” (GAB) launched in 1962 by the International
Monetary Fund (IMF). The GAB is designed as an ever cycling fund which
members pay into. In times of emergency, members can ask the IMF’s
permission for a release of funds. If the IMF agrees, it then injects
capital through Treasury purchases and SDR allocations. Essentially, the
IMF takes our money, then gives it back to us in times of desperation
(with strings attached). A similar program called ‘New Arrangements To
Borrow’ (NAB) involves 38 member countries. This fund was boosted to
approximately 370 billion SDR (or $575 billion dollars U.S.) as the
derivatives crisis struck markets in 2008-2009. Without a full and
independent audit of the IMF, however, it is impossible to know the
exact funds it has at its disposal, or how many SDR’s it has created.
It should be noted the Bank of International Settlements is also an
overseer of the G10. If you want to learn more about the darker nature
of globalist groups like the IMF and the BIS, read my articles,
Russia Is Dominated By Global Banks, Too, and
False East/West Paradigm Hides The Rise Of Global Currency.
The following article from
Harpers titled
“Ruling
The World Of Money,” was published in 1983 and boasts about the secrecy
and “ingenuity” of the Bank Of International Settlements, an
unaccountable body of financiers that dominates the
very course of economic life around the world.
It is my belief that Belgium, as a member of the G10 and the GAB/NAB
agreements, is being used as a proxy by the BIS and the IMF to purchase
U.S. debt, but at a high price. I believe that the banking elite are
hiding behind their middleman, Euroclear, because they do not want their
purchases of Treasuries revealed too soon. I believe that the IMF in
particular is accumulating U.S. debt to be used later as leverage to
absorb the dollar and finalize the rise of their SDR currency basket as
the world reserve standard.
Imagine what would happen if all foreign creditors abandoned U.S.
debt purchases because the dollar was no longer seen as viable as a
world reserve currency. Imagine that the Fed’s efforts to stimulate
through fiat printing became useless in propping up Treasuries, serving
only to devalue the domestic buying power of our currency. Imagine that
the IMF swoops in as the lender of last resort; the only entity willing
to service our debt and keep the system running. Imagine what kind of
concessions America would have to make to a global loan shark like the
IMF.
Keep in mind, the plan to replace the dollar is not mere “theory”. In fact, IMF head Christine Lagarde
has openly called for a “global financial system” to take over in the place of the current dollar based system.
The Bretton Woods System, established in 1944, was used by the United
Nations and participating governments to form international rules of
economic conduct, including fixed rates for currencies and establishing
the dollar as the monetary backbone. The IMF was created during this
shift towards globalization as the BIS slithered into the background
after its business dealings with the Nazis were exposed. It was the G10,
backed by the IMF, that then signed the Smithsonian Agreement in 1971
which ended the Bretton Woods system of fixed currencies, as well as any
remnants of the gold standard. This led to the floated currency system
we have today, as well as the slow poison of monetary inflation which
has now destroyed more than 98 percent of the dollar’s purchasing power.
I believe the next and final step in the banker program is to
reestablish a new Bretton Woods style system in the wake of an
engineered catastrophe. That is to say, we are about to go full circle.
Perhaps Ukraine will be the cover event, or tensions in the South China
Sea. Just as Bretton Woods was unveiled during World War II, Bretton
Woods redux may be unveiled during World War III. In either case, the
false East/West paradigm is the most useful ploy the elites have to
bring about a controlled decline of the dollar.
The new system will reintroduce the concept of fixed currencies, but
this time, all currencies will be fixed or “pegged” to the value of the
SDR global basket. The IMF holds a global SDR summit every five years,
and the next meeting is set for the beginning of 2015.
If the Chinese yuan is brought into the SDR basket next year, if the
BRICS enter into a conjured economic war with the West, and if the
dollar is toppled as the world reserve, there will be nothing left in
terms of fiscal structure in the way of a global currency system. If the
public does not remove the globalist edifice by force, the IMF and the
BIS will then achieve their dream – the complete dissolution of economic
sovereignty, and the acceptance by the masses of global financial
governance. The elites don’t want to hide behind the curtain anymore.
They want recognition. They want to be worshiped. And, it all begins
with the secret buyout of America, the implosion of our debt markets,
and the annihilation of our way of life.
You can contact Brandon Smith at:
brandon@alt-market.com
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