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Dillon Read & Co.
And The Aristocracy
Of Stock Profits
By
Catherine Austin Fitts

Geopolitical Musings of a Crazy Canuck

In the wake of 9/11, the analysis of geopolitics took on a whole new life. This event turbo-charged the growth and evolution of the nascent alt-media and lit a huge fire under what the mainstream media referred to as often admonished “conspiracy theory”. The aftermath of 9/11 saw the rise of alt-right media personalities like Alex Jones and his Info Wars platform, whose early growth was primarily steeped in coverage of inconsistencies in the official narrative of the events of 9/11. Through Jones‟ platform and the enormous “in-your-face” nature of the events of 9/11, a different segment of extremely well connected patriots from the intelligence realm were inspired to throw their hats in the ring and start speaking publicly about the existence of the “Deep State”.

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Derivatives – A Look Back on 2020

The best info on derivatives activity is published quarterly in arrears by the Office of the Comptroller of the Currency [OCC].  The most recent quarterly report was for Q3/20, published in the dying days of December 2020.  Thus, our “look back” on derivatives activity for 2020 only provides a “snapshot” of the first nine months of the year.  What we now know is that aggregate notional derivatives holdings by the top 25 US Bank Holding Cos. Has fluctuated from 228.2[T] in Q4/19, to 267.6 [T] in Q1/20, to 242.8[T] in Q2/20, to 239.5[T] at the end of Q3/20. 

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Confounding Compounding Perspectives - May 8, 2020

In recent interviews I have “borrowed” a descriptive I originally heard from Chris Martensonexplaining the effect of compound interest and exponential growth. The descriptive involved picturing Yankee Stadium and beginning with a drop of water and doubling the amount of water until the stadium was full. Regarding the compounding visual – I misspoke somewhat when I originally explained – the reality is that the timeframe used – 50 minutes – is correct. I should have said the doublings only have to occur every MINUTE [not every second] and the outcome remains the same – stadium fills up in 50 minutes, with all the “action” [water going from ankle deep to overflowing the stadium] occurring in the last 5 minutes – this is the power of compounding.

Now On to Compound Interest

The underlying mathematics that supports the model explained above is understood by monetary officials responsible for stewardship of the world’s reserve currency – the US dollar.  They and their “propeller head” quant clowns model EVERYTHING.  Now consider the interest rate derivatives market where there are hundreds of trillions in notional outstanding.  The clueless quants will try to argue that these are “notional amounts” [typically settled ‘net’] and the principal amounts do not get exchanged.

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Plandemic: Raison D'être - April 8th, 2020

The plandemic was [conveniently or coincidentally, take your pick?] "dropped" because we are on an exponential, vertical growth curve for money which had to be created – due to the magic of compounding - before we ever had a "virus".  

plandemic1

I would like to now remind EVERYONE of a piece I penned back in August of 2018 where I did write in a piece titled,

Big Money and the Big Lie:
 

“The important take-away from the picture above is that the US dollar is now on the vertical growth part of its “life curve”.  Naysayers might argue, “money growth is not increasing at a vertical rate because the Fed stopped QE [Quantitative Easing] a number of years ago”.

Perhaps the Fed did “technically” stop QE a number of years ago, BUT, the folks at the Fed are well aware of the facts regarding the life cycle of fiat money depicted above.  They know if the money is not created, the financial system [US Dollar] collapses onto itself.  So what gives?

Connecting Dots

Instead of the vertical nature of the money growth chart above, the Fed would like us to believe that money growth is better reflected by their more sanguine “official” count depicted below:

plandemic2

Do remember folks, the chart above reflect the “officially acknowledged money supply”.  The growth rate does not appear to be vertical, does it?

But what about the fraudulently created, missing 21 TRILLION identified by Dr. Mark Skidmore [PhD. Michigan St.] and Catherine Austin Fitts [former undersecretary of HUD – Bush 1 Admin]?  This money is not acknowledged to exist and IS NOT part of the official monetary aggregate data depicted above.  If one was to “add” the missing 21 Trillion to the 16ish Trillion depicted above – the growth rate would INDEED BE VERTICAL.

So folks, while the Fed may be able to legally claim that QE ended years ago, the REQUIRED monies have been created and they have been silo-ed in places like the ESF [EXCHANGE STABILIZATION FUND]. 

“The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of January 31, 1934. 31 U.S.C. § 5117. It was intended as a response to Britain's Exchange Equalisation Account.[2] The fund began operations in April 1934, financed by $2 billion of the $2.8 billion paper profit the government realized from raising the price of gold to $35 an ounce from $20.67. The act authorized the ESF to use its capital to deal in gold and foreign exchange to stabilize the exchange value of the dollar. The ESF as originally designed was part of the executive branch not subject to legislative oversight.”

The web page devoted to the ESF claims that it contains only roughly 100 billion US dollars but then again, it is NOT SUBJECT TO LEGISLATIVE OVERSIGHT, so who really knows?  We also know that the ESF was created to protect the dollar.  We also know that 21 Trillion US dollars are unaccounted for.  We also know that money growth matter-of-factly is greater than what is reported – because it MUST BE.  It is not a stretch to figure the existence of this “dark money” is the real reason why US Government Bond auctions have NEVER failed, despite the reluctance of America’s traditional financiers to purchase record amounts of additional US government debt.

So folks, while the Fed may be able to say they are not directly engaged in QE, the US Treasury [ESF] IS and has been for some time – because they MUST.  Additionally, the Fed necessarily was complicit in assisting the ESF in creating the dark money.

This is why the Fed will never be audited and this is also why,

"In an apparent departure from 'generally accepted accounting principles,' federal agencies will be permitted to publish financial statements that are altered so as to protect information on classified spending from disclosure…

It’s all part of the BIG LIE, ladies and gentlemen.”

A reminder ladies and gentlemen, this [above] is what I wrote back in August of 2018.  Now, as everyone knows, the have been multi-trillions of dollars committed and created in response to the Pandemic crisis.  Coincidentally, if you believe in coincidences, 4 months after publishing the piece above [Jan., 2019] I was hospitalized in critical care for 5 weeks with a mysterious respiratory ailment [double pneumonia and blood clots on my lungs] that presented EXACTLY like Covid-19.  I was lucky to have lived.

 

Without a virus, humanity would NEVER have put up with this kind of money creation.  Now that the bogey man has appeared and everyone is in "lockdown" in their homes - they want to be paid and will not only tolerate but are WELCOMING the money creation - so long as the fridge is full and Netflix keeps working - the modern day equivalent of bread and circus [Coulisse anyone?] of Roman times.  We even have the modern day currency debasing equivalent of coin clipping occurring – excessive money printing – showing that while history doesn’t necessarily repeat, it certainly does rhyme.

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Cannons or Pop Guns and the Real Story - March 16th, 2020

Yesterday, to sooth roiled financial markets, the Federal Reserve pre-announced MASSIVE [cannon sized] term repo operations to be conducted in instalments of up to $US 500 billion each.

Today, the $US 500 billion cannons have turned out to be “pop guns” with 24.1 B in 1 month repos [8.35 B in mortgage backed securities [MBS]] being conducted this am along with 17 B in 3 month repos [14 B in MBS]. Adding this to the 78.4 B in 3 month repos from yesterday [39.25 B in MBS] and we have seen the grand sum of 119.4 B of a potential 1.5 Trillion liquidity add.

Of course, the Fed also did its customary overnight repo in the amount of 45.15 B [22.2 B in MBS].
You can view the details of these repo operations here.

The bigger story here is that these MASSIVE amounts [Headline numbers] were announced so that no one would notice the real problem, namely, the mortgage market.

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Mainstream Media Miscreants - Merchants of Mayhem - Mar 6th, 2020

It’s the wee hours of Friday morning, March 6, 2020 and I am tuned in to Bloomberg “Surveillance” business news host Mr. [CFR] Tom Keene.  Global equity markets are flat on their backs, crude oil prices are collapsing to multi year lows and the $US dollar looks like it’s preparing to do a swan dive into the Hudson River.  Thank god we have the likes of ole Tommy Keene and the rest of the globalist hacks from Bloomberg News and the traitorous Council on Foreign Relations to give us “lumpen” some reassurance in turbulent economic times.  As one of Tommy’s esteemed Bloomberg “experts” espoused this morning regarding the roiled global equity markets,

“We need something like [Warren] Buffet to come in and buy something for 10 or 20 billion to calm things [in the equity markets] down”.

But don’t worry folks, no matter what height the $US dollar takes its proverbial swan dive from – ole Tommy and Bloomberg and Co. will always be there to point out how money surging into the US 10 yr. bond yielding at historically low 74 basis points represents the foremost “safe haven” play in times of economic uncertainty by posting big banner headlines like this.

Bonds surge on slumpin stocks

Ladies and gentlemen, it’s the Big Lie, a time tested propaganda technique used by ruling elites time-and-time again to obfuscate colossal criminal acts and epic miscreant behaviour.

Watching the Big Lie play out, time-and-time again, is much like observing the hustle of a street addict conman looking for his next fix, coercing people to accept and believe the notion there is “safety” in debt obligations that the issuer has absolutely ZERO intention of ever repaying with fair value.

Now that we’ve broached the topic of “fixes”, it provides a perfect segue for some thought and discussion on topic of precious metals pricing, which in the case of gold, its price is “fixed” twice a day in London.  To say, “the fix is in” when it comes to pricing of precious metals is a colossal understatement, but stating as much makes one the object of scorn, ridicule and the labelling of one being a “conspiracy theorist” –an important adjunct of the Big Lie. 

Who Are These Conspiracy Theorists?

So who are these conspiracy theorists anyway?  Generally speaking, they are people who question the notion of the magic bullet in the Kennedy assassination or the official story of 9/11-the tale of 19 cave dwelling Arabs bringing down 3 New York skyscrapers with 2 planes while simultaneously striking the Pentagon with an alleged 3rd plane – making a bulls eye strike on the accounting area of said Pentagon where all financial records were kept that might explain the unaccounted for 2.3 Trillion missing dollars from DOD that Defense Secretary Donald Rumsfeld spoke of on 9/10 - one day earlier.

These same conspiracy theorists are also the type of folk who have for years documented MASSIVE financial malfeasance and currency debasement on the part of the US Treasury’s Exchange Stabilization Fund [ESF] in conjunction with the US Federal Reserve and Bank for International Settlements [BIS].  These [scoffed at by mainstream financial media] charges have basically made claims that too much reckless money printing would ultimately lead to the demise of the US dollar as the world’s reserve currency.  Never mind the fact that none other than the Office of Director of National Intelligence posted job opening last month seeking a qualified individual to evaluate the impact of the US dollar losing its status as the world’s reserve currency.

In the descriptive of the job opening referenced above, everyone should take notice of the segment, relevance to the intelligence community:

Maintaining the U.S. dollar as the world reserve currency is vital for the national security community. It enables the U.S. to impose and enforce sanctions on entities that violate treaties or international law – results are essential to counter-proliferation and counter-terrorism activities. Sanctions are imposed when countries or their citizens develop or expand weapons programs that are considered dangerous to the international community. Having U.S. dollar transactions settle through the U.S. gives law enforcement jurisdiction to investigate, charge, and convict criminals of financial crimes such as money laundering, fraud, and terrorist financing. Since the U.S. dollar holds value through time, it is the safest currency in which to conduct international business transactions. This gives the U.S. global economic dominance. If the U.S. dollar loses its status, these national security advantages disappear, leaving the U.S. vulnerable. This project could allow the national security community to prepare for and defeat scenarios that could prevent this economic crisis.

Admission the UD Dollar Has Been Weaponized

At the risk of calling the US Director of National Intelligence a conspiracy theorist, the intelligence community clearly states that maintenance of the dollar standard is a tool that allows the US to threaten and impose its will on the world community. 

As for the intelligence community’s claim that the dollar holds it value, let’s examine.  Using US government data, they are saying that $US 20.67 in 1913 is worth $US 538.61 in today’s 2020 dollars.  However, if one had purchased one ounce of gold in 1913 for $US 20.67 it is worth $US 1,684.00 today.  The boyz at US intelligence are, in Joe Biden parlance, lying-dog-faced-pony-soldiers.  Demonstrably, gold is a far SUPERIOR [more honest] currency to do business in and settle international accounts:

inflate

Remember the Big Lie everyone, now go buy your bonds and sell your gold.  The mainstream financial press would NEVER deceive you.

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Addendum to Wallstreet Wet Works - Feb 21st, 2020

Yesterday, I wrote about a crypto exchange BitMEX and criminal activity that occurred on their site related to 600 dollar price drop of bitcoin in 5 minutes on Wednesday, February 19, 2020.  It now appears that there is some more history to these kind of transgressions on the part of BitMEX.

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Wall Street Wet Works - Feb 20th, 2020

Welcome to Wall Street and the world of high finance everyone!  A place where dreams are shattered and hopes are “hookered”.  Yesterday was Wednesday, February 19, 2020.  Yesterday afternoon, at 4:47 pm, the price of bitcoin [was assassinated] dropped 600 dollars [5.6 %] in 5 minutes.  Here’s what that looks like on bar chart [3 minute intervals]:

wallstreet

For those of you who might not understand the gravity of transpired here, imagine the DOW Jones Industrial average dropping by 1,650 points in 5 minutes commencing 13 minutes before the market closes at 4:00 pm eastern time.  If that were to happen, there would be investigations.  There would be questions put to regulators.  Answers would be DEMANDED from regulators.

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The Chosen Ones? - Feb 13th, 2020

What has happened to our capital markets? The reactions to the onset of a global pandemic in our capital markets are, for the most part, fundamentally counter- intuitive and, in my opinion, will not continue.

Incapacitating the second largest and fastest growing economy in the world is no reason to “buy stocks” into record territory or conduct fire sales of precious metals. If you drop a ball and it falls “up” I suggest you not jump to the conclusion that the laws of gravity have been repealed. Instead, you might want to take heed of the old adage, “It’s not nice to fool Mother Nature”.

American equity markets have celebrated treasonous, undermining, political assault and subterfuge:



subterfuge

Pelosi

Clearly, the DOW was chosen [ordained] to RISE. Why?: It makes the population at large [in the western world] believe in the narrative that a global pandemic coupled with treason on the home front is nothing to be concerned about – the economy is doing just fine.

Other Managed Outcomes

There is still a large constituency in our dystopian world who does not believe that the powers-that-be would engage in such financial shenanigans.

To begin wrapping your head around the “depths” and skulduggery that monetary officials will stoop to, let’s revisit some of the handiwork performed by Robert Rubin in the Clinton era. The mindset at the Fed and Treasury might be best summed up by Robert Rubin as he reveals the motivation or drivers of crisis
management in the interaction between himself, Lawrence Summers, the ESF [exchange stabilization fund], the IMF and presumably the Maestro at the Fed – during the Clinton administration. On pages 290 - 291 of his book, In An Uncertain World, referencing the Brazilian financial crisis of the late 1990’s, Rubin outlines how very expensive “bad decisions” can buy time. Sometimes, he asserts, these bad decisions have a great deal of merit because they can,

“..Probably defer the impact of the collapse for six or eight months, and that will more than justify the effort.”

After reading this passage I could not help but ask myself if this type of thinking perhaps extends to the dollar, gold and the rest of our capital markets to this very day?

Lemonade from Lemons or Money from Thin Air?

Back in the day, Rubin was so adept at financial sleight of hand that his mastery of the “craft” was given its own name – Rubinomics. In layman’s terms, it’s better labeled “making something out of nothing” or just plain old FRAUD. It works something like this:

Back to 1995, in the twilight of the first Clinton Administration, Treasury Secretary Robert Rubin and the U.S. government were facing a sovereign default on financial obligations due to a bitter, partisan debate causing delay on raising the debt ceiling. In the words of Robert Rubin himself in his book, In An Uncertain World, on page 170 he states,

 “Without an increase, the federal government would hit the debt ceiling before the end of 1995, possibly as early as October. Default and the President being forced to sign an unacceptable budget were both untenable. We needed to find a way out, rather than simply hoping that at the last minute the opposition would blink and increase the debt limit.”

The response to this dilemma is chronicled by Rubin, on page 172, where he reveals,

“It was Ed Knight, our savvy chief Treasury counsel, who suggested borrowing from the federal trust funds on an unprecedented scale to postpone default.”

You see folks; as Mr. Rubin is/was well aware, the federal trust funds DO NOT AND NEVER DID CONTAIN ANY MONEY. These accounts exist in the minds of accountants and lawyers [ledgerdom] only. So here’s what really happened:

Beginning Nov. 12, 1995, the Treasury started issuing government bonds, IOU’s, and putting them in the Social Security Trust Fund “cookie jar” – with the Fed then PRINTING the corresponding amount of money they needed and called this a ‘legitimate loan’. By accounting for their finances in this manner, the government got to understate their annual budget deficit by the same amount that they were burdening the cookie jar with IOU’s – all the while dramatically increasing the unfunded [off balance sheet] liabilities of the government by the same amount.

Where I come from, this is neither savvy nor a loan. It is better described as both treasonous and outright fraud. Isn’t government finance fun?

Rubinomics provided the cover for the hollowing out of America’s middle class and involved the de-industrialization of the heartland. Offshoring involved industrial mavens making a conscious decision they would rather pay workers 2 dollars a day than 20 bucks an hour plus benefits. From the Late 1990’s onward, missing Trillions involved a further and more sophisticated refinement in LOOTING when the propeller heads realized they were facing this reality:

chosen3

Elaborate financial shenanigans have continued, which we are aware of due to the diligent work of Catherine Fitts and Dr. Mark Skidmore who documented 21 Trillion in unsupported financial adjustments [missing money] in the books of DOD and HUD from the time period 1998 – 2015. When the DOD failed an audit and the Trump administration was questioned about the missing money, new financial regulatory legislation was passed in the name of FASAB 56 which essentially took US Federal finances “dark”.

We don’t need no stinking accounting.

So here we are in the present day, facing a global pandemic known as Covid 19 [coronavirus]. I recently listened to someone I respect in this field, Mike Adams [Naturalnews.com] “the health ranger” speak about the virus. Adams stated that the coronavirus is undoubtedly “manmade” as it demonstrates genetic markers/manipulations that could only have come out of a laboratory. He then went on state that the Chinese military made the genetic modifications to this virus at their level 4 bio lab in Wuhan and their intention was to “unleash” this weapon-ized virus on America but something went wrong; according to Adams the disease was mistakenly released on the Chinese.

I just want to say that I take issue with this hypothesis. While I do believe the virus is “manmade” [this has pretty much been scientifically proven beyond a shadow of a doubt at this point], I cannot agree with the notion that the Chinese military was behind this. Reason: if the Chinese “had it in for America” as Adams maintains, why would they develop a virus that is relatively benign to white and African peoples and “lethal” to Chinese men in the first place? Anything lethal to Chinese men would represent an imminent danger to the Chinese leadership itself.

This line of thought is illogical, improbable and makes absolutely no sense to me.

What makes sense to me is that this was an orchestrated attack on China, whose Communist regime I abhor, but do recognize they represented a direct threat to the existing, faltering Anglo/American [Globalist] banking complex that has ruled the world with an iron fist for at least the past 200 years.

Other capital markets “tells” that, in my opinion, help identify the perpetrators [besides the counter-intuitive rise in equity prices] are the reactions by dollar alternatives, gold and the crypto-verse [bitcoin]:

chosen4

Since the New Year and the onset of coronavirus – gold [the nemesis of the Globalists] has risen 37 dollars to 1565.00 or 2.4 %.

Meanwhile:

chosen5

The price of bitcoin [representative of the globalist’s digital “wet dream] has risen, since New Year, from US $ 6,979.00 to US $ 10,350.00 – up 48.3 %.

Ladies and gentlemen, if you cannot see that our globalist masters have chosen a “digital future” for humanity – read on:


chosen6

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Coronavirus: Dreading the R Naughts - Feb 4th, 2020

The following is evidence presented from a research paper produced by the Cold Spring Harbour Laboratory and deals with the transmit ability of corona virus in populations. Research outlined in this paper indicate that contraction of corona virus appears to be highly biased toward Asian males, perhaps as much as 4 to 5 times more so than females, whites and those of African descent.

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Another Look Back at Martin Armstrong’s Incarceration - Jan 27th, 2020

A very short preamble to what follows is this: Frank Veneroso did foundational work that led to the creation of GATA [Gold Anti-Trust Action]. Frank Veneroso’s utterances in this regard originated from information fed to him back in the 1990’s about gold lending and swapping via Central Banks and Bullion Banks by Bank of England gold head – Terry Smeeton. Bill Murphy had intimate knowledge of Veneroso’s work because he had been living in his attic after going bust as a principal trader in the copper market. The information presented here is/was all dated and archived between the websites of gata.org and Bill Murphy’s Lemetropolecafe.com
1995 is the year that gold leasing “TOOK-OFF GLOBALLY”. We know this due to the historical record of communication between Frank Veneroso and Terry Smeeton [from the Bank of England]; I [Frank Veneroso] started out on this crazy voyage with a statement that was made by a man from the Bank of England- --Mr. Terry Smeeton---who was in charge of the gold operations of the Bank of England. On something like November 21st or 22nd of 1995 at the 5th Annual Banking Conference in the city of London, he addressed the issue of gold lending. He gave some statistics. He basically said that gold lending had roughly doubled over the last year and a half. Precisely, what he said was that gold loans more than doubled and gold swaps increased by more than 50%

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Democrats Doing Deagel’s Work - Jan 22nd, 2020

dd1

dd2

Listening to Jerrold “penguin” Nadler and Adam [bug eyed] - friend of Ed Buck - Schiff speak about President Trump in terms of the Senate procedurally lacking in allowing legitimate witnesses in Senate trials is an utter insult to humanity. It was Schiff and Nadler, along with [drunkard?] Pelosi

dd3

who championed secret “star chambers” to impeach President Trump.

Meanwhile in Davos, Trump proclaimed that America is “thundering back” with record low unemployment rates and record amounts of “offshored” companies and jobs returning home. Well, here’s a reality check ladies and gentlemen, labour participation rates as reported by the Bureau of Labour Statistics don’t exactly support President Trump’s “perfect” portrayal:

dd4

If labour force participation rates “thundering” from a low of 62.4 % in Sept. 2015 to 63.2 % today – then yes, we have much to celebrate.

We’re told the economy is doing great, yet Trump rails for lower interest rates. Can anyone shoot straight?

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We’ve Been Sold a Bill of Goods - Jan 7th, 2020

During the run-up to year end, the narrative being fed to the population by the Wall St./Fed crowd was that massive liquidity [cash] injections were required in the banking system to ensure there were no “accidents” over the “turn” of the year end calendar to 2020.  We’ve all been treated to some pretty sophisticated technical explanations by Wall Street and Fed mavens about the intricicies and manutia of balance sheets and bazookas.

So what is the true nature of our global financial malaise?

Compound Interest and Debt

What the Fed is confronting is not unique or specific “squaring financial books” for the year end.  The issue is much more systemic in nature and it stems from the very fact that irredeemable debt based fiat money systems with compound interest are unstable in their very design.  Years ago, when this fact that keynesian monetary theory was fatally flawed and it was pointed out to the dispicable cad John Maynard Keynes [who lends his namesake to our failing monetary system], he shrugged and said, “so what, we’re all dead in the long run anyway”.

Well folks, welcome to the long run.

Outcome Guaranteed, Perpetual Money Growth

In an irredeemable debt based fiat monetary system there is no way to “reduce” money supply except bankruptcy or forgiveness [jubilee].  Empirically, these outcomes are avoided at all cost.  The reason money supply must perpetually grow is as follows:  when each new monetary unit is loaned into existence, the future interest due on the loan is not.  For interest to be paid, this necessitates perpetual money growth to satisfy the payment of ever increasing interest due.  As in nature, perpetual uncontrolled growth is referred to as cancer – which often kills the host.  When money was redeemable in specie, debt money could be extinguished with an exchange for specie. 

Cancerous Growth and Timing of Collapse

In monetary parlance, perpetual money growth is referred to as monetary debasement.  When monetary debasement grows in an unbridled fashion, mathematics dictates that it metasticizes into hyper-inflation through dilutive destruction of the value of the currency unit.  The destruction of the currency unit through hyper-inflation is manifested through parabolic [vertical] growth in money supply.  This is the ultimate fate for ALL irredeemable debt based fiat money regimes with compound interest – bar none.

 

lifecyclefiat

 

How the System “Buys Time”

In the chart below, the inflection point where money growth goes vertical is a mathematical certainty.  So the ultimate outcome is not in question but “when” this inflection occurs can be delayed [not avoided] with lower interest rates.  So now we know why the Exchange Stabilization Fund [ESF] engaged in trading hundreds upon hundreds of trillions in interest rate derivatives with the likes of J.P. Morgan, Citi, BofA, MS and Goldman  Sachs in the wake of the financial crisis of 2008/9.  Engaging in this trade made the banks captive buyers of US government debt; thereby, kicking the can down the road, so-to-speak, buying time for our failing fiat financial system by dramatically lowering rates.  Some may have trouble believing that the system would go to these lengths to buys time.  For those who feel that way I invite them to consider the following:  summing up the thought of former US Treasury secretary Robert Rubin as he reveals the motivation or drivers of crisis management in the interaction between himself, Lawrence Summers, the ESF [exchange stabilization fund], the IMF and presumably the Maestro at the Fed – during the Clinton administration.  On pages 290 - 291 of his book, In An Uncertain World, referencing the Brazilian financial crisis of the late 1990’s, Rubin outlines how very expensive “bad decisions” can buy time. Sometimes, he asserts, these bad decisions have a great deal of merit because they can,

 

“..Probably defer the impact of the collapse for six or eight months, and that will more than justify the effort.”

 Ladies and gentlemen, players at the apex of power are demonstrably strong adherents of the addage, “live to play another day”.

Do Deficits Really Matter?

To say America spends money like “drunken sailors” is an understatement.  America’s “official” national debt currently stands at 23.2 Trillion with roughly an additional Trillion being added to the debt pile every year.  This amount represents $187,000 per taxpayer in the US.  US federal tax revenue is currently 3.5 Trillion, so the official national debt amounts to almost 7 times revenue.  All told, the data above paints a pretty bleak financial picture, or so one would think.

Despite the realities of the debt picture portrayed above, the thinkology of the most ardent of the Deep State looters would suggest otherwise.  Remember folks, it was none other than Donald [let me hold your wallet] Rumsfeld who, on Sept, 10, 2001, curmudgenly proclaimed,


“According to some estimates we cannot track $2.3 Trillion in Transactions.”

Of course, shills in and for the mainstream make claims like this one,

“In 2001, Donald Rumsfeld said 'According to some estimates, we cannot track $2.3 trillion in transactions.' This has been misinterpreted by many people as $2.3 trillion actually going missing. However it's really just about the way the money was accounted for.”

In other words, the messaging coming from the mainstream is that there is nothing to see here, MOVE ALONG. 

Coincidentally, or perhaps not, it was shortly after 9/11 – in 2002 that V.P. Richard “Penis” Cheney uttered to then Treasury Secretary, Paul H. O'Neill,

                          “that deficits don’t matter.”

tinman

Love him or hate him, the arrogant hubris that was uttered from the heartless one would seem to indicate that unfettered spending in the W. Bush administration was “no problem” – like they had a secret stash of wizardly cash they could rely on to “screw” anyone who opposed them.

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The ABC’s of Fiat Money - Dec 10th, 2019

The machinations and bravo sierra excuses that are being “served up” attempting to explain the onset of massive Fed liquidity “adds” are fogging up my glasses. As a savant I once worked with in the institutional capital markets told me many, many years ago when I first parked my butt in a chair on a trading desk fresh out of University told me, “Kirby, what happens in here is really quite simple – we deal with money and the only things you can do with that are: buy it, sell it, borrow it or lend it. It isn’t rocket science”.

When the Fed adds “liquidity” [aka fresh fiat money] they purchase debt – either on a temporary basis [repo] or a permanent basis by outright purchases [expanding their balance sheet]. Fresh fiat money is the oil that greases the wheels of our debt based money system. When the Fed purchases debt they are signalling concern that the wheels of our money system are seizing up.

Why does this happen?

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The Way It Used to Be - Dec 5th, 2019

Years ago, major oil producing countries like Russia, Iran, Iraq and Venezuela – all “low cost” producers - used to sell their dollars exclusively for US Dollars. Being “low cost” producers, they had profits that they used to reinvest in the US Government bond market. In recent times, these producers have stopped selling their oil for US Dollars and instead have been selling their oil for Euros, Yen and Chinese currency.

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Admission of Conspiracy, Guilt and Collusion - Oct 24th, 2019

Having long been a researcher of the gold and silver markets I have become familiar with the labels, “conspiracy theorist”, “gold bug”, “tin foil hat” and a host of others – less flattering. Over the years I have listened to a host mainstream economic commentators incredulously lament, “gold bugs actually believe that people meet – in rooms - and conspire to suppress the price of precious metals”. These same mainstream economic commentators frequently scoff, “if such activities were actually being undertaken, surely someone from “officialdom” would go rogue and out the perpetrators. They frequently cite the lack of such “outings” as concrete evidence that market manipulations on the part of or complicity with regulators as being “hearsay” or the product of delusionals.

Well ladies and gentlemen; conspiracy theorists are deluded no more.

On Oct. 22, in the year of our Lord 2019 – it was none other than former chairman of the CFTC [Commodities Futures Trading Commission] Christopher Giancarlo admitted in an interview with CoinDesk,

“One of the utold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping he bitcoin bubble. And it worked.”

Giancarlo elaborated,

that] “bitcoin’s dramatic price run-up in December 2017 was the first major bubble following the 2008 financial crisis.”

Not so fast Mr. Giancarlo; speaking of bubbles – may I direct your attention to the “run up” and collapse in silver prices circa 2011 and contrast that to the “run up” and collapse in bitcoin prices in 2018. Notice any similarities??? Have any of you ever heard the cliché, “birds of a feather fly together”? How about, “if it looks like a duck, it’s a duck”?
Quack, quack Mr. Giancarlo.

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A Crude Oil Awakening - Oct 2nd, 2019

It was a little bit more than a year ago that the “fabled” Wharton School published the following headline:

Could Fracking Debt Set off Big Financial Tremors?

Most of us have heard of “fracking” and many of us have had this development described as America’s answer to foreign energy dependence.

While the fracking boom has absolutely increased American crude oil and natural gas output, serious questions remain as to how profitable or at what cost has this ramp up in oil output actually cost America?

“[The fracking] industry doesn’t make money. It’s on much shakier financial footing than most people realize.”  - Bethany McLean

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Inflation For the Nation: Coming to a Theatre Near You Soon

Back on the weekend of August 24th, I had the opportunity to spend a couple of days with Catherine Austin Fitts and Dr. Mark Skidmore as they were guests at my home in Toronto. Catherine wanted to interview me regarding my thoughts on inflation. One of the big questions Catherine asked was, “in light of severe monetary debasement [money printing] which has already occurred, why have we not visibly seen inflation to date?” 

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The Ramifications of 21 Trillion in Missing Money

Recently, American regulators have instituted a new accounting framework for the US Federal Government with the passage of FASB 56. The creation/adoption of FASB 56 arose when the US federal government was questioned about the amount of US currency that really exists when 21 Trillion in unexplained dollars appeared on and then unexplainably disappeared from the books of DOD [Dept. of Defense] and HUD [Housing and Urban Development]. The essence of FASB 56 was to “excuse” the US federal government from being required to keep accurate / auditable financial books – meaning the American government is now excused from accounting. 

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The Real Roots of the Global Financial Crisis

The narrative put forward by mainstream financial press regarding the financial crisis of 2007 – 2009 has generally labelled it as “the Lehman event”.  What I’ve come to learn is that mainstream monikers seldom describe the true nature of the underlying.  One only need ask if they really believe the “Patriot Act” is patriotic or whether or not Iraq’s Saddam Hussein ever really possessed weapons of mass destruction.  We might also ask how three skyscrapers collapsed into their own footprints on 9/11 when only two of them were hit by planes – but we won’t go there lest we labelled conspiracy theorists.

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Big Money and the Big Lie

The picture below is one of the most important pieces anyone could look at to begin understanding the true nature/condition of our global financial system:

 

This picture depicts the life cycle of “ANY” fiat currency with compound interest.  This concept is explained thoroughly by Chris Martenson on his web site under the moniker of The Accelerated Crash Course.  I recommend everyone read it...... [more]

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To all subscribers; 

A new lengthy interview with Catherine Austin Fitts is now posted for subscribers at Kirbyanalytics.com.  The subject matter covered in the interview in Catherine’s own words; 

“From fiscal 1998-2015, the Department of Housing and Urban Development had almost $1 trillion of undocumentable adjustments. The Department of Defense had approximately $20 trillion of undocumentable adjustments. (See Missing Money)

Indeed, during this period these agencies and the US government failed to comply with the Constitution, laws and regulations relating to financial management. (See our series on the legal provisions related to US government financial management)

If you think this is acceptable, try the same approach on your next IRS filing and see what that division of the US Treasury says and does in response.

I often hear that it is not possible for $21 trillion in real assets – whether cash, government securities or credit or armaments and hard assets to be stolen over a twenty year period. That is absolutely not correct. It is more than possible.

Another response is that if this much had indeed be printed, created or in circulation that we would have hyperinflation. Not so. (Although, real inflation is running at a much higher rate than the official statistics indicate. See: http://www.chapwoodindex.com/)

To help you understand the mechanics of how so much money could go missing as well as how it could be reinvested or circulated without hyperinflation, I invited Rob Kirby of Kirby Analytics to join me for an exercise in imagination.

If Rob and I were screenwriters and we were going to write a movie about the missing money, what would the various financial fraud schemes we would consider for our plot be? Which would we choose? And how would we make sure inflation would not give us away? How would we make sure that the majority of Americans would not notice that the savings in their pension funds, IRAs and 401ks was being laundered through the US government and they would ultimately be liable for the related IOUS?

Join us in the imagination room for a wild ride through the financial ecosystem and our thoughts on what has been going on in the darkest corners of the financial and pension systems as they fund the national security state.”

Link to interview….[members].

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Doings at Deutsche Bank

A recent ZeroHedge article chronicled a very large one day loss suffered by German banking giant, Deutsche Bank in the first quarter of 2018.  This one day loss was reported as being “12 times VaR”.  So what is VaR anyway?  The definition/explanation of VaR is can be read at the Office of the Comptroller of the Currency [OCC] latest quarterly derivatives report – page 11 - at this link.  Boiled down in layman’s terms VaR is a proprietarily calculated measure, unique to each financial institution - expressing how much money they could likely lose on any given day on a worst-case-basis……[more]

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Inflation for the Nation:  The Cause and Effects of Monetary Debasement

In recent interviews I have made mention of how median income in America over the past 10 years has risen from 50k to 59k.  I have also pointed out that 10 years ago, 50k purchased 23,000 lbs. of ground beef while today 59,000 purchases roughly 17,000 lbs. of ground beef – more money buying less, a classic symptom of monetary debasement...[more]

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Where Is the Missing Money?

Last weekend, Greg Hunter interviewed Dr. Mark Skidmore PhD. of Michigan St. University:

Michigan State University economics professor Mark Skidmore made an astounding discovery about the finances and budgets of the U.S. federal government earlier this year. He and a team of graduate students discovered $21 trillion missing in the federal budget going back to 1998. Dr. Skidmore, who specializes in public finance, explains, “We know from official government sources that indicate $21 trillion is, in some way, unaccounted for. Furthermore, if we come back to the Constitution, all spending needs to be authorized by Congress. It looks to me, and I think I can conclude with a high degree of certainty, there is money flowing in, as well as out, that is unaccounted for. . . . That’s the one thing we know from these documents, that there is $21 trillion in unaccounted funds.”..................[more]

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The Big Lie[s]

Dystopia knows no bounds. According to Wikipedia;

“Dystopian societies appear in many artistic works, particularly in stories set in the future. Some of the most famous examples are George Orwell's 1984 and Aldous Huxley's Brave New World. Dystopias are often characterized by dehumanization, totalitarian governments, environmental disaster, or other characteristics associated with a cataclysmic decline in society.“

Does any of this sound familiar?

How many of you ever watch or listen to the mainstream financial press make prognostications – usually based on the utterances of Fed officials or members of government regarding the economy, inflation or the future direction of interest rates?...…[more]

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The Golden Rules: Making A List and Checking It Twice

Let me preface this article by saying I am not an advocate of trading precious metals; instead, I am an advocate of buying and storing physical precious metal whenever your financial resources permit.

That being said, I want to bring to your attention the remarkable work of James McShirley – who over the years has been a regular contributor to Bill Murphy’s daily “Midas” commentary at LeMetropole Café [lemetropolecafe.com]……[more]

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The Cryptos Are Coming

The Rise of the Block Chain and Asset Backed Crypto Currencies undoes the primacy of the US dollar in international trade settlement.

How? Decentralization: The very nature of block chain technology is that it efficiently enables rapid, reliable, low cost, documented, peer-to-peer transmission of ownership. As such, the move to block chain enabled crypto assets amounts to an asymmetric attack on the current US fiat dollar standard because it eliminates costs [redundancies], fraud and hence the likelihood of corrupt practices – all of which are the life-blood of the GLOBALIST DEEP STATE.

Why? Post 1971 when President Nixon closed the gold window, the U.S. military "enforced" the deal Henry Kissinger made with Saudi Arabia where ALL oil transactions were settled in dollars. By doing this, the America managed to use everyone else’s trade to back the valuation of the dollar, something gold used to do.[more]

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The Undoing of Fiat Money

To be completely honest, I have for a very long time understood that fiat money would fail – mathematics dictates that this will occur. This math is explained in a very concise manner at this link. As a goldbug, I must admit that I always believed that fiat money would FIRST spectacularly fail against precious metals – and it’s not quite working out exactly that way - yet. Fiat money IS failing in Technicolor against crypto currencies, with Bitcoin (so far) leading the way. The market capitalization of the space is now $ US 142 billion today, August 18, 2017. In January 2017 – eight months ago – this space had a market cap of just under $ US 100 billion and six months before that it was $ US 25 billion…..[more]..  

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Tom Foolery at Its Finest:  The Truman Show Redux

The purpose of this paper is to highlight how hegemonic American economic doctrine has infected global economics in creating a surreal plutocratic corporatocracy, or in other words, what’s black is white, what’s up is down, what’s safe is risky, you get the idea!

Do Deficits Really Matter, or, What’s Unaffordable is Cheap


Back in 2002, Treasury Secretary Paul O’Neill warned [then] Vice President Dick Cheney about the folly of deficit finance as the annual U.S. Government deficit approached $500 billion.  Cheney responded by having O’Neill fired; but before that, he uttered these words,

"You know, Paul, Reagan proved deficits don't matter," continuing, "we won the midterms (congressional elections). This is our due."

Judging by what deficits were then versus what they are now – roughly $1.5 Trillion annually – it’s evident that America continues to be “ruled” by the dictum that deficits do not matter.

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Tic, Tac, Toe, Three Clowns in a Row

Treasury International Capital [TIC] data was released Wednesday morning by the U.S. Treasury.



Appended from: U.S. Treasury TIC data

Appended below is a summation of the U.S. Treasury’s take on what happened in Sept., 2011 reporting:

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The Rape and Pillage of Humanity

With a title like, the Rape and Pillage of Humanity, many of you are probably expecting this paper to be a story about greed, power, misplaced trust and abuse in College Football.  So if you thought that – you’d be wrong.

Instead, this is tale about greed, power, misplaced trust and abuse in our global monetary system – and what Central Bankers have done to it.  In short, they’ve taken us to the showers and had their way with us all.

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The Genesis of Financial Contagion

In private correspondence with a colleague earlier today – he made the point that the Wall Street Journal was trying to lay the blame of the failure of MF Global at the feet of the Commodity Futures Clearing Corp. [CFTC].

I agree with much of what my colleague said, namely, trying to lay the blame of MF Global’s blow-up at the feet of the CFTC is a diversion.   Citing “credit default swaps” he pointed out this fact: Ruben, Greenspan and Summers, prevented the CFTC from regulating derivatives in the Commodity Futures Modernization Act of 2000.

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Algorithms, Bullion and Criminals:  The ABC’s of Understanding Precious Metal

At the link to the S.E.C. below – there is an archive of “fails to deliver equity” data whose original source is the DTCC [Depository Trust Clearing Corporation].

http://www.sec.gov/foia/docs/failsdata.htm


What is presented below is an analysis of September 2011 “fails to deliver” equities which are understood to represent physical gold and silver bullion in the market place.  The individual instruments are aggregated on a coloured, daily gross ounce basis to show the serial and systemic nature of the DRAMATIC SHELL-GAME build in [naked] short ounce equivalents – which, when one considers the Jeffrey Christian Constant. It was back in March, 2010 – at CFTC hearings in Washington that expert testimony was given by C.P.M. Group Chairman, Jeffrey Christian where he explained,

Precious metals are financial assets - and like currencies, T-Bills and T-Bonds they trade in paper at a multiple of a hundred times the underlying physical.

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