Who Will Profit from this Crash? Will Derivatives Wipe Out Some Currencies?

[Guest guest]

the end of the moldy-Volde-ThingY?

 

draft, as of 20:46 pm, 14 September 2007

 

for the benefit of the youth and students in our Ojai

audience, those who will have been brought up in the Ojai

Valley Newspeak -- without benefit of truth or sincerity on

the part of their 'educators' -- I am going to attempt a

full background on the economic crisis confronting the US,

Europe, and the World at this time.

 

parts of this you will know, from reading previous OjaiPost

reports, or following the increasingly emotional dialog in

the media and amongst our families and friends -- as to the

falling US Dollar, the 'Falling Treasurys', the rising Gold

prices, the exponentially expanding Derivatives monster,

the 'Sub-prime Loan Crisis', the China Gauntlet, and

Private Banking and the Debt-Based Monetary System.

 

when I grew up in Ojai, in the fifties and sixties, it was

still largely true that " money in the bank " came from gold

and commodities, or at least was backed by cash, paper

money. the tens of trillions of dollars of debt did not

then exist, and a global military police state was not

required to maintain the flow of wood and food and minerals

and products to North America. [ten times our share of the

world's products, mind you.]

 

the US had conquered the world with its automobile and

aircraft factories, and the nuclear bomb, and demanded the

lowest prices on food and oil, and everything, nearly

worldwide. nations who did not agree, disappeared in

intelligence wars, and then miraculously re-appeared as

ally nations who signed away all their minerals and other

valuables to US corporations, for pennies on the dollar.

 

as to banking or economic theory, in order to make its

population happy, and voting, believing the newspeak,

supporting the wars -- LOTS of money had to find its way

into the hands of the US citizenry in order to pay for all

of the world's product we 'needed' to buy, to keep us fat

dumb and happy while we worked for the corporate machine

killing Mother Earth and supporting the military-aerospace

production lines keeping the world in servitude.

 

the result was Debt-Based Banking, what we have today.

 

http://en.wikipedia.org/wiki/Debt-based_monetary_system

 

money was created out of thin air, by the loan contracts

that the US public signed to buy their land and houses and

cars. and for their college educations. banks were only

required by the US government and the Federal Reserve to

back their accounts with the loan statements from the

borrowers. that is, a bank with only a million or a billion

dollars actual gold or cash in the vault, could lend out

ten million or ten billion dollars, by placing YOUR loan

contract in the bank vault. thus when you borrowed ten

thousand dollars for a car, or a hundred thousand dollars

for a home, the bank simply added ten thousand dollars or a

hundred thousand dollars to its bank account ledgers.

 

there actually was NO CASH or GOLD or other valuables

in the vaults.

 

for the last several decades ALL the money put into

circulation in the Western world has been simply

materialized out of thin air, by the keystrokes on the

computer creating the money in the bank computers. the

money never existed.

 

as of day before yesterday:

 

" The US currency has now fallen more than 2 per cent

against the euro in the last week, dropping to a low of

$1.3910 against the single currency, breaching the previous

record low of $1.3852 it hit on July 24. Meanwhile, the

dollar index, which tracks its value against a basket of

six leading currencies, fell to 79.404, its lowest level

since September 1992. "

 

" INVESTORS ALL OVER the world are collectively holding

their breath, waiting to see if the Federal Reserve lowers

interest rates at its September 18 meeting. They are also

looking toward investment bank earnings, specifically Bear

Stearns, Lehman Brothers and Goldman Sachs which will soon

post quarterly results, to get a better sense of just how

very bad the subprime crisis is. While they wait, many

investors are taking advantage of the accelerating chaos by

selling Derivatives calls and puts. "

 

http://en.wikipedia.org/wiki/Subprime_mortgage_financial_crisis

 

enter Bush, Clinton, Gore, Cheney at al and Gold!

 

http://www.google.com/search?hl=en & q=Al+Gore+Clinton+Federal+ReserveGold+Price+A\

ntitrust+Reginald+Howe

 

nearly twenty years ago the Financial powers that be --

centering around Washington DC but including London and all

the European, Japanese and Israeli banking powers --

determined to use a well-known covert financial mechanism

to keep this monetary elephant of the industrial-state

afloat. That mechanism is known as gold price suppression.

That is, if the world governments and media PRETEND that

the market is free -- and PRETEND that gold and prices are

free to rise and all, and PRETEND people actually make

capital gains by putting their money and pensions into

banks and mutual funds etc -- and then the price of gold is

actually secretly suppressed, held down by the western

banks and governments, then the OTHER currencies and

economies of the world, as in China, Africa, Latin

American, the Middle East, Eastern Europe will be

depressed, crushed. Their currencies and economies will

always drop, while the western computer-manipulated

economies go up.

 

thus the monetary scam launched during the Clinton/Gore

administration so long ago now, which evolved into the 9/11

StockPlay in 2001. the " Company's " 9/11 StockPlay ended the

epic-making global antitrust suit by Reginald Howe:

 

http://www.google.com/search?hl=en & q=Reginald+Howe+Gold+Adam+Hamilton+Derivative\

s+JP+Morgan

 

by bringing down fifty floors of evidence, the offices of

JP Morgan Chase which organized the 9/11 Derivatives Market

Crash and Gold Price Fixing scams.

 

at that time, Gold which had been held down to about $275

an ounce, was now free to rise -- to the Wednesday,

September 12, 2007 price of $706.00 !!

 

 

Millennium Twain

 

Paraphrased from " Gerald T. Agnew " , In EnergyResources:

 

There are two schools of thought on the US money crisis. In

a normal world, a country with a horrendous debt problem

would crunch its economy (to stifle demand) and raise

interest rates to get the capital to keep it afloat. The

alternative would be to let its currency (the US Dollar) go

to the devil and that would raise the price of imports to

the point where purchasing would stop. At the same time,

exports would become cheaper and more competitive and hence

(yet again!) draw money (pennies on the dollar) into the

US.

 

This wonderful, and naive, theory was the norm until a

generation or so ago ... [Now money is generated on the

bank ledgers in the forms of loans, and is no longer based

on gold or cash or assets.]

 

We are at the Dollar-depreciation point today. Lowering the

value of the USD would be done by lowering interest rates

as the US CURRENTLY CONSUMES 80-100% OF THE WORLD'S SAVINGS

just to cover its wanton spending, consumer consumption!

If Europe were to garner maybe 10% of that amount (to

develop Eastern Europe for example), then this tiny change

would cause a mammoth hit on the USD. The Dollar would no

longer attract the funds it needs in the tremendous volumes

it requires. End of story! Classical theory, as outlined

above, would seemingly demand this.

 

These days, this may not necessarily be so. In the age of

planetwide servitude, citizen-victim obediance, anything

goes. In other words, if the Fed lowers interest rates,

then the drumbeat (newspeak, propaganda) will be that cash

MUST continue to come to the US at any cost. Because if it

does not, then the US will have a balance of payments

crisis which will (thank you globalisation!) impact the

rest of the world in the most frightening way. [Cause a

global market crash.] Media propaganda to keep this fantasy

daisychain going is that if one buys US Treasuries while

the Fed's cutting interest rates, then the investor would

make large capital gains on the bonds as their prices

increase. Hear the laughter meter topping out?

 

The entire stock market will also be advertised as " on

sale " , claiming lower interest rates mean stronger

equities. Companies that trade overseas in large volumes

(ie Coca- Cola, Microsoft, IBM, John Deere etc.,) will

have large earnings because of the weakened USD and thus

must be a magnet for [compulsory] investments from

overseas. [The meter just broke.]

 

Things are therefore not as clear as they once were - " Skim

milk masquerades as cream " .

 

To try and sum this up, a policy of lowering interest rates

by the US Federal Reserve would be accompanied by a barrage

of financial nonsense extolling the virtues of investing in

the " new US economy " facade. The dollar would sink for many

years ... not crash overnight, if we are lucky.

 

This is what Treasury Secretary Henry Paulson wants right

now, a lower USD especially against the Yen and Chinese

Renmimbi/Yuan. The Treasury will claim it does not want a

Stock Market Crash right now as that would stop the flow of

funds to NY. The truth is, that either way, Stock Market

Crash or no, the US economy will collapse without an more

than impossible expansion of the current intelligence

agency and military enforced global investment program.

 

Whether they stage another hard 9/11 Crash, or a 'soft'

quarterly-earnings-report crash -- America's economic

future AFTER this September 2007 will require an equally

impossible increase in the global security state control of

Eastern Europe, China, Asia, Latin America, Africa and the

Middle East. The slaves would have to become MORE poor and

numerous, and their countrysides MORE productive and

liquid. The thought would never be entertained, as China is

now the world's greatest economic power, and is committed

to leveling the world economy, which means collapsing the

US

Mega-Bubble. Even if China WISHED to continue to work for

pennies, it too is a physical impossibility -- with a

majority of their work population now being prisoners and

homeless migrants, and with 95 percent of the world's

ecological/bio-resource base wiped out. The forests and

rainforests, rivers and wetlands, oceans and life, no

longer EXIST to be plundered.

 

And China, like the rest of the world, can no longer accept

any predation from Europe and the US ... THEIR populations

are now at the point of revolt too ... with no more room

left to maneuver. No more food to eat, no more air to

breath. No more love to share ...

 

....

 

see also the dialogs at:

 

http://www.ojaipost.com/2007/09/the_last_zuchini.shtml

 

http://www.ojaipost.com/2007/09/no_flights_available_to_new_yo.shtml

 

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