Friday, March 20, 2009

[sonus] understanding issues: part 3

This is part 3 of the Sonus series of articles on where the economy and society is really headed and who's to blame. Sonus names names - learn about Deepcapture, the LBMA and Eddie George. See why we're effed.

Part 2 of the series can be read here.




Towards the end of a Fiat currency life-span, when debt levels are becoming difficult to repay, the tendency on the part of the authorities to cheat, to hide the facts from the voters, increases.

As the cheating persists, the studied avoidance of tough decisions is evaded by repeated bubble blowing that creates the illusion of economic well-being, but is merely an increase in private, and public Debt levels There has been no REAL increase in GDP for the previous decade, despite political spin.

This illusion becomes more and more difficult to hide, and the activities increasingly necessary to hide the reality, the State inspired corruption, and conspiracy, becomes more intense and more widespread, and endemic.

Today inflation statistics are grossly manipulated, as are unemployment statistics, as are GDP statistics, together with most global commodities. These may, or may not convince professionals concerning the state of the economy, but in concert with a supine and a “Deep Captured” MSM, it makes for comic debate on the screen, and spin and propaganda for the sheeple.

Monetary authorities on both sides of the Atlantic have manipulated the price of gold throughout the 20th century, to keep the price near to the “official price” at which currencies could be exchanged under the Gold Standard. This was nothing new.
This is an early document from 1961, discussing this subject, in vague terms.

It wasn't until the Reagan era, when market volatility increased, and the 1987 US/UK market crash occurred that the “Presidential Working Group on Financial Markets” was established.

The Working Group on Financial Markets (also known as the President's Working Group on Financial Markets, the Working Group, and colloquially the Plunge Protection Team) was created by Executive Order 12631, signed on March 18th, 1988, by United States President Ronald Reagan.

The Group was established explicitly in response to events in the financial markets surrounding October 19th, 1987, (“Black Monday”) to give recommendations for legislative and private sector solutions for "enhancing the integrity, efficiency, orderliness, and competitiveness of [United States] financial markets and maintaining investor confidence".

As established by Executive Order 12631, the Working Group consists of:

0. The Secretary of the Treasury or his designee (as Chairman of the Working Group);
0. The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
0. The Chairman of the Securities and Exchange Commission, or his designee; and
0. The Chairman of the Commodity Futures Trading Commission, or his designee.

In other words, parts of the Executive were now free, and instructed to, manipulate “free” markets, in order to help create the illusion of financial stability. The Fiat system, and the excessive use of debt, was beginning to show signs of stress.

This could not be allowed.

The inclusion of the leaders of the SEC, and the CFTC, on the Presidential Working Group on Financial Markets goes some way to explain the current enforcement problems, where oversight bodies have been criminally negligent , and persistently “looked the other way”. However, when Legally mandated oversight criteria are overridden by Executive Order, and obvious manipulation is conducted in the name of “Public Good”, lines in the sand become blurred, staff lose moral, and “things” happen.

Safe Haven explains that the working group has recently become far more pro-active in the markets, using money from the Fed, and linking it to the cessation in the publishing by the Fed, of M3, as increases in M3 were predictive of future market manipulations.

In other words, Fed created money was being used for market manipulation. Was there a legal mandate for that?

Once fraud, however well intentioned, becomes embedded in the system, it grows and spreads, and infects the thinking of all officials in the commission of their duties.

It is cancerous.

Like all cancers, it eventually destroys the host. The financial systems credibility of the US and UK are perilously near to that point, together with the entire economies of the G7, and probably G20, right now.

This is pure Opera.


And the Whistle Blower has his day of testimony ...

And it proved to be very revealing.

Further questioning was revealing.

There followed a further examination of Mr Markopolos, but it is difficult to find complete footage of this. Here are three revealing segments:

Here.

And here.

And Here.

DEEPCAPTURE explains this phenomenon in the US context, but it is present in the UK too.
Given the hearings running in the UK currently, concerning risk levels of bank lending, and the dismissal from employment of Risk assessors, and the promotion to FSA director level of those aggressively promoting risky lending practices, it becomes increasingly obvious that “Deep Capture” also exists in the UK. Banks in the UK have clearly, in the home market, been guilty of predatory lending practices, with home loans of more than 100% of equity, levered on MANY times the borrowers earnings multiples, and occasionally involving guarantees by parents of the borrowers. Teaser rates were in evidence, with extra-ordinary roll-over fees at the end of the initial period. Clearly these debts were beyond the borrowers ability to pay, and the banks and the UK Government, and the FSA knew it.

The revolving door of UK regulation was exposed by English bloggers.

Here.

And Here.

About 9minutes 30 seconds into the testimony of Mr Markopolos, above, mention was made of the state Attorneys General. It is important to realize at this point why Mr Elliot Spitzer was assassinated politically.

On Feb 14th 2008, Elliot Spitzer, US Attorney General penned an article for the Washington Post, “Predatory Lenders Partner in Crime”, explaining Federal corruption in the support for predatory bank lending practices, and explaining that EVERY US state had joined him in seeking curtailment of these practices, but had been prevented from doing so by legal actions of the Federal Gov't. The Federal Government was complicit in the sub-prime lending that is part of today's market problems, and was active in defending the practices.

Here is a link explaining it.

These are the very debts that were sliced and diced, fraudulently given triple “A” ratings by fraudulent ratings agencies soaked in moral hazard, and sold globally.

Understand this.

Given Government and Wall Street collusion here, this is typical of actions taken in a collapsing Fiat system, to obtain momentary profitability, and attempting to push the ultimate payment collapse further into the future. There was clear intent to involve the world financial markets, and foreign nations are now realising this, and are furious.

The future that we are now experiencing was anticipated, and WAS PLANNED.
I will return to this theme later.

The US Deepcapture link explaining the concept is here, and is vividly displayed by the previous links to the Madoff revelations.

And Karl explains Deepcapture in detail.

Ted Butler, an excellent writer, and campaigner for honesty, on the precious metal Silver, a monetary metal, has been pushing the CFTC for over a decade for an investigation of the clear and visible manipulation of the Silver Price, contained in figures published by the CFTC! At times the ounces short have approached the global annual output of Silver, yet in a decade of complaints, no action has been taken. The membership of the head of the CFTC on the Presidential Working Group on Financial Markets, explains the lack of action.

Here is the archive of his articles. Read them carefully, and understand.

Also understand that the same Bullion Banks involved in Silver manipulation are also involved in the manipulation of the price of Gold.

(Nothing happens in isolation, the mining of silver is often a by-product of Zinc, or other base metal mining operations. The current economic crisis resulting in collapsing commodity prices, has caused mine closures and in the future will cause commodity shortages with industry unable to respond speedily to renewed demand. The decades long suppression of Silver prices has resulted in either premature closure, or the non opening of mining projects. Silver has many industrial uses.)

These activities are not normal shorting. These banks do not cover after a price decline, they add to their position. That alone speaks of manipulation, together with their truly massive presence!

Who would do this? Who would benefit from the Silver price suppression, year after year?

The Bullion banks involved are all Federal Reserve Primary Dealers, - the owner of the Fiat currency!!!!!! And some are also members of the LBMA!!!!!!!!!!!

The CFTC is quite aggressively looking the other way!

A clear conspiracy on the part of the Fed/National Executives of US and UK is evident here.

And they don't even deny it!

Here is a quote from Eddie George.

Eddie George and Gold 
“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore, at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The U.S. Fed was very active in getting the gold price down. So was the U.K.” 
Eddie George, Bank of England, September 1999.

In other words, trading houses were short, in massive values relative to their abilities. If they went down, the price of gold would spike, and more short positioned institutions would fail if they were forced to cover. They therefore got help from the Fed, and the UK.

His mention of the Abyss shows how great the long position was.

“at any price, at any cost” is significant don't you think?

What was at stake?

Eddie George was the Governor of the Bank of England, responsible for the Fiat currency of the UK, and freely admits to manipulating allegedly “free” markets for the benefit of “trading houses”.

Could the viability of the UK Fiat currency have been under threat?

The US Fed cannot intervene in these markets, it would have used the same bullion banks/primary dealers as proxies.

And we are lead to believe that the LBMA am, and pm, price setting is free from B of E, and political pressure!!

Here is a graph that clearly shows the effect of announced Gold Sales.

And in case you were wondering, these are the parties suppressing the price of Gold, every day.

On 12th February, Rob Kirby tackled the disparity in the two accepted measures used to set the global price of oil.

Rob says “Monetary authorities induced highly levered hedge funds.....[...]..... dollar hegemony was threatened”.

Actually they did it via a global, concerted, margin call on every hedge fund on their loan book. Hedgie concerted selling to meet margin calls triggered further selling. The commodity cascade began. The dollar index recovered from that point, against all logic, that said a debased currency, debased as much as the dollar had been for two decades should have crashed. Hedgies had shorted the Dollar, and gone long commodities.

After the margin calls they had to sell commodities and buy dollars, hence the dollar index increase.

Was this legal?

Certainly a clear conspiracy!

I will deal with the second part of Rob Kirbys article, relating to gold, later. 


Two cry together refreshment break.

Part 4 of the series can be read here.


It says 'written by James Higham' below. Actually, it was written by Sonus but I can't reformat the author in my template.

1 comment:

  1. really good article. My hope is that hte more egregious actions of the financial elite are about to be exposed and a modicum of control re-exerted in the name of democracy.

    It is but a hope though.

    ReplyDelete

Comments need a moniker of your choosing before or after ... no moniker, not posted, sorry.