A global clash of nations is underway in full gear. The storm is picking up speed, power, intensity, and damaging force. Many are the swirls of the current situation. A hodgepodge of topics have been caught and trapped, best to discharge on paper, the effect like a wondrous enema. The banker lies grow thicker, as they are unable to so easily deceive anymore. The potential currency fix appears more imminent, as the solution seen as an assault on American interests (military angle). Any nation getting off the US Wagon Train is a rogue nation, the theme having become tired and ineffective. The fatal errors committed by the US economists and banker elite have finally resulted in clear signs of systemic failure. The psychological warfare is like a gigantic fog, as people's defenses are being challenged, even those based in fantasy and convenience. The world is undergoing change, the nightmare continues, while the Paradigm Shift moves into the fast lane by expedience. Entire swaths of wealth are being waterlogged, tainted, and ruined. The USDollar has been stuck in the corner for three years, finally pushed into the corner crack, sure to fall below the matt, where below lies a spittoon. The Hat Trick Letter informs and warns the public, converts the disheartened and confused among us, edifies clients, and provides forecasts like signposts to guide in the increasing fascist darkness. At the same time, it seems to drive families crazy, since when attempting to admonish and caution, the efforts are often seen as uncomfortable overturning of the temple tables (business and mental). So be it. Forewarned is forearmed, but many prefer their delusions and homes built upon false assumptions. The Jackass prefers reality accountable to the flow of events and verified facts, where actions can be taken in defense of livelihood and even life savings. The clash of worlds must be reported and properly understood.
CENTRAL BANKER LIARS
Newly appointed USFed Chair Janet Yellen has wasted no time in her stream of lies. The crime syndicate headquarters talks of tapering the bond monetization volume. As preface, be sure to know that unsterilized bond purchases, introduction of newly printed money without drainage in similar volume steps, has been considered the ultimate heretical practice for decades by the Economist Schools. It is called the greatest monetary sin, but now is blessed as a solution, perhaps no longer temporary. The Yellen Fed talks repeatedly about poor economic conditions, about weak bank structures, about punky labor markets, but also about improving something or other, while it speaks lies in great strokes. The financial circles applaud, while the business community languishes. They talk of reductions in the QE volumes, but they use back doors and proxies, hardly out of view. Yellen moved to the U6 jobless rate index, shoving the deceptive Clinton U3 jobless rate in the toilet. The USFed now has employed the Belgian bank as the new Caribbean offshore site. Its USTreasury Bond holdings are moving toward the $200 billion level. Recall this little turd on the economic table has no surplus and barely has an economy at all outside the finance sector. It operates as a parliament center and commission home office for pedafiles. The other deceptive tools used by the Yellen Fed are the same as those used by the Bernanke Fed, the powerful interest rate swap derivative. It produces leveraged phony demand without buyers, thus creates bond rallies out of thin air. Several banker murders were done to conceal the London Whale losses, estimated over $100 billion in the derivatives market. The story remains suppressed.
The Weimar machinery is working overtime and 24/7 to cover the USTBonds that no nation wants, except for Belgium and Japan, which was almost overlooked. The Asian lackey continues to buy USTBonds out of duty, under Yakuza threat (from Langley masters), in order to prevent an unwanted rise in the Japanese Yen exchange rate. They have lost their trade surplus during the industrial rise of China. Maintaining the Yen currency suppression via USTBond purchase will have to go the monetization route, a destructive path that worries many competent responsible financial firms in Tokyo. So the Yellen Fed is a liar institution, just like the Bernanke Fed. Do not expect Benjamin to be knighted, since he was just a store clerk to inaugurate QE bond purchases, a mere caretaker like President Gerald Ford. Poor Benjamin is busy collecting $200k speaker fees, where his message actually contradicts the policy he directed at the USFed itself for six years.
NEW GOLD-BACKED CURRENCIES
The time is finally right. The urgency is acute. The banking system insolvency is widespread. The illiquidity has reached the surface. The geopolitical chessboard has busy movements of many pieces, even with a delayed check in Ukraine after a devious capture of the Cyprus castle but not the Syrian knight. The Saudi support via OPEC for the Petro-Dollar has fallen out of view, dragging its pummeled chin on the desert sands. The Eastern superpowers are marching arm in arm, ready to challenge the West. It seems the Western leaders, in particular the robot sock puppets of the Untied States, see the end of the USDollar. They appear to wish to lay blame on Russia for the death of the dollar. The global rejection is well along, which began with the introduction of QE, then QE2, then Operation Twist. But the global rejection took flight after Taper Talk failed in its trial balloon, and achieved supersonic speed with the recognition of QE to Infinity was implicitly endorsed. The global rejection saw the prototype built in the hangar with the Iran sanction workarounds, where India bought Iran's oil & gas, but paid with Turkish gold, delivered to Tehran banks. The global rejection will achieve escape velocity with the acceptance of Russian Rubles for its energy products. The global rejection will achieve additional escape velocity with the acceptance of Chinese Yuan payments for Saudi crude oil (then all OPEC oil).
Coming is the launch of both the gold-backed Russian Ruble and the gold-backed Chinese Yuan. The global rejection will be final, and the funeral will be announced. They will enter the financial airspace first, followed by others. When the USMilitary defense of the USDollar is recognized as blatant, dishonorable, toothless, and ineffective, the other gold-backed currencies will follow. The isolated paper tiger was revealed in Syria. The toothless rampaging tiger will be revealed in Ukraine. The Kiev Govt is almost ready to collapse already. The Jackass originally expected the collapse to occur in six to nine months, but it looks more like three to four months.
The Russians and Chinese might put the first daggers in the USDollar heart, but numerous death blows will come from other parties. The water will be judged safe to enter. Expect the Saudis and fellow Arabs to launch a gold-backed Dinar currency. Expect the Germans and fellow Europeans (not from the Catholic South where socialism, absent industry, and slack work ethics prevail) to launch a gold-backed Nordic Euro. Expect the Latin Americans to rally behind Panama, the new Switzerland of the Americas. Several nations are reported onboard the launch of the gold-backed Panama Balboa. It will be supported by gold and copper, possibly crude oil. It will be the resource currency of the bunch. Watch closely Norway, which might launch a gold-backed Norwegian Krone, supported indirectly by crude oil. They can easily convert oil to gold, since crude is black gold. Watch certain groups of resource-rich African nations. They are extremely large in land mass and they are loaded with resources (energy) and minerals (metals). They could launch a few gold-backed currencies and declare independence from Western colonialists.
The USDollar might split soon, from external pressures and internal pressures. Foreign nations will no longer permit the QE bond monetization and currency debasement. The old version could remain but as the International Dollar, which will retain value. The new version might split in launch as the Scheiss Dollar, which will be deeply devaluated in steps. The Scheiss Dollar is the US ticket to the Third World, complete with imported price inflation, diverse product supply shortage, and widespread violence like at supermarkets for food, service stations for gasoline & diesel, and ATM machines for cash. The USDollar will not continue in its present form. Its central bank responsibility will split also, with China taking more control of the Intl Dollar, and the USDept Treasury taking control of the Scheiss Dollar launch and ensuing decisions. See their JPMorgan HQ acquisition as hint for critical changes. The Untied States Govt has a horrible task of financing its debt, which strongly resembles Third World type. It cannot without hyper monetary inflation, a temporary stopgap.
FATAL ECONOMIC POLICY ERRORS
The fatal errors in US banking and economic policy could fill a book. It might be a future Jackass publication. Hats off to Gonzalo Lira for his book"A Secret History of the American Crash" which is a docu-drama work in the year 2020 set in Los Angeles. It provides a real life look on the streets and offices at where the broken Untied States is heading, based upon systemic failure, economic ruin, and society impact. The economic errors have been enormous, steady, and unending. One must wonder if sabotage has been the higher order directive. The US nation used to be admired, well run at the corporate level, expert at the finance ministry, competent at the central bank. But so much went wrong. The Jackass has chronicled much of the erroneous pathways and the fatal national errors that have led to systemic failure, national insolvency, and ultimately debt default. It is a broken nation which has succumbed to a hidden fascist attack with full plunder. The Fascist Business Model is not properly recognized either, despite its integral role. The Jackass has harped on the concept for other eight years on a regular and frequent basis, pointing out the merger of state with big corporations (led by banks), pointing out the permitted financial fraud and banker welfare, even General Motors welfare, pointing out the economic effect, pointing out the war levers used to guarantee supply, and pointing out the systemic failure it has caused. Not 10% of Americans comprehend what fascism is, but 30% of the nation would qualify easily to serve as Nazi Youth Group leaders, possibly without realization of the group functions. Witness the honor guards and flag ceremonies at sporting events, including an occasional fighter jet flyover. This is not healthy, but rather a slippery path to a dark place. The bigger question is whether the US nation will recognize the Third World when it approaches with all its nasty trappings.
The fatal errors are many. They cannot be fully detailed. The seminal original sin was breaking off the Gold Standard by Nixon. In my book, the move was probably the second half of the arrangement to have Kennedy removed, followed by a clever deft move to install Kissinger. He created the Petro-Dollar mechanisms, by pushing for a quadruple in the crude oil price, then instituting the Petro Surplus Recycle plan, having the Saudis run OPEC, forcing nations to accumulate USTreasurys in their banking system. The Petro-Dollar defacto standard replaced the formal Gold Standard. The kicker benefit was that Arab nations and Iran were able to fill their coffers, buy fancy yachts, build casinos in the desert, erect oversized palaces to stroke their egos, arrange $million allowances for royal kids, and kick back profits to the USMilitary industrial complex, the monster to be fed. The Petro-Dollar has permitted the USEconomy to live off a credit card, without direct consequence to abused debt. The Petro-Dollar has permitted the USMilitary to seek out and conquer, to effect the hearts & minds, and to plunder. The creditor nations of the world realize their role as the victims who finance the field operations and covert operations. That all changed with the narcotics industry born in the Cambodia Triangle, advanced in the Kosovo depot, and accelerated in the Afghan poppy fields. The USGovt security agencies have had independent income for over three decades. Witness the first Langley coup of a foreign state in Ukraine. The untold story is the conflict between the USMilitary and the Langley Mercenaries. Look later to find the Odessa Ltd split, just like in the 1950 birth for the old Nazi Germany war machine enterprise.
Many are the errors. The US corporate titans responded to both environmental strictures and labor union demands, by relocating many operations in the Pacific Rim. The US domestic income source was displaced. The Americans sought to rely upon asset bubbles for income. They spent home equity on consumerism objectives, but in fairness often for necessities. The Greenspan Fed contributed significantly to the wrecked state. They moved away from valid monetary policy whereby money supply increase was to match economic growth. Instead, following the Rubin directive, the Mr Magoo cutout ordered the monetary aggregate to follow the Consumer Price Inflation index in the most egregious central bank error in modern history to that date. The falsified CPI enabled unchecked increases in money released within the system. Debt growth also exploded to create a USEconomy that resembled a cross between a hedge fund and a Ponzi scheme. The Irrational Exuberance speech was his disclaimer, a weak statement easily seen through by the Jackass and many others.
The promoted strategy of easy money being stimulus is patently false. The low interest rates actually act like a wet blanket, reducing income to savers, but keeping interest payments down. Unfortunately twice as much volume exists in accounts due interest income payouts, versus loan portfolios due interest from monthly service payments. To the contrary, easy money is a debt bomb and capital acid. The climax error was likely more a grand betrayal, granting China the Most Favored Nation status. The purpose stayed hidden for many years, to lease their gold by Wall Street firms. The result has been a loss of US legitimate income, during a period of profound capital investment in China by Western firms. The Western Govts idiotically complained about Chinese trade surpluses, when two thirds of their surpluses came from subsidiaries of Western firms with heavy blessed foreign direct investment. The result has been debt writedowns that take capital equipment and other fixed assets into the mothballs, while hyper inflation has killed capital directly. The result is systemic failure for the US nation, which can no longer finance its debt.
The mindset of the nation has been that to promote recovery, the people must be given money to put in their pockets for spending purposes. Wrong again, since what the people need is jobs, removal of heavy corporate taxation, and clearing of malodorous federal regulatory obstacles. The US nation has lost its way on what capitalism is. It embraces socialism, with all its ravages. It endorses austerity, which is nothing more than poison pills. It permits war machine aggression as foreign policy for both infrastructure alteration and currency defense. The nation can rebound if the capital structures are renovated and permitted to grow from seed, namely capital formation. This has become a foreign concept in the nation once considered the cradle of capitalism. The former communist nations have become the capitalism adopters, while the former capitalist nation leader has adopted national socialism (aka nazi). The Untied States will undergo re-industrialization again, but by the Chinese carpet baggers. They are loaded with $1.3 trillion in USTreasury Bonds.
Look at the new businesses that have been hatched in the last decade, as they litter the Wall Street landscape. They are truly pathetic. See NetFlix and FaceBook and Groupon and LinkeIn, even Twitter and Monster. The list is long and unimpressive. These are disk drive racks and elaborate living room couches and kitchen boxes. These are not corporations with deep capital investment and useful products flowing, intellectual capital exploited, value added from talented work forces, and enduring contributions to both economy and society. Look at the new national initiatives. There was the Green Revolution sponsored by Obama, but it proved to be a sham. See Solyndra and its fraudulent loans, the favorite personal Obama portfolio investment. There should have been a freight firm IPO to reward Obama ventures on gun running to Mexico. It could have become a good movement, for solar, for wind, for waves. Instead a fraudulent field, just like the mortgage weeded field. The new national initiative is the shale oil and fracking gas strategy, which is both short-lived and destructive. The shale oil revolution is a fleeting flash in the pan, requiring a Ponzi growth in new wells to compensate for extremely rapid wellhead depletion. The fracking gas movement punctures the natural tables, and thus contaminates the water supply, catering to the Halliburton monopoly on fracking chemicals. Not even witnessing evidence of tens of thousands of water pools on fire can stop this administration, hellbent on destruction.
Even the Obama Care national health insurance plan has hidden malignant tumor-like motives. See the slush funds to cronies, where money vanished. See the triple cost versus touted by officials. See the required financial statements that enable tracking other assets wished to remain in shadows. See the eventual ID chip implanted on the upper left arm. Feel the part-time nightmare response to the labor market. The disasters of the Obama Admin will be the stuff of history books. What Bush Jr Admin did to wreck the USEconomy from aggressive war costs, the Obama Admin complemented with wreckage of the USEconomy from internal caustic seeds.
PSYCHOLOGICAL WARFARE & FRAIL HOUSES
The US nation is filled with households that cover the spectrum. Many are very unhappy about the current path taken by the nation. Many are suddenly insecure with the popular inflation hedge in the home equity having vanished. Many are suddenly insecure also from the poor labor market, and the plethora of substandard jobs. Gone are the engineering jobs and foremen posts that used to pay well, or even bond issuer posts. They are replaced by fast food marts, cashier posts, retail sales, customer service, freight movers, secretaries, night watchmen, janitors, and cleaning staff. The nation has a new disease uncovered in many households, if the scattered reports from Hat Trick Letter clients reflects the masses. The Jackass refers to it as Arrogant Ignorance, which separates the ordinary bright educated masses from the Intellectuals. Take an intelligent person, remove the scientific method of working with verifiable evidence, add on assumptions embedded in defiance, sprinkle with some righteous indignation, add some old fashioned anger and insult, and you arrive at Arrogant Ignorance. This disease is rampant, and divides families. The Contempt Before Investigation, with harsh dismissal of actively thinking people, is a horrendous mental rotten apple all too often seen on the table. Both factors are ripe in the Jackass own original family, although the new adopted Latina families are far more open minded and promising. Let it be known that my father, although not in agreement with many perceptions and beliefs, has supported the newsletter, in particular with 2004 seed capital to accompany the intellectual sweat equity and shoestring needs. If professional workers used these weak mental methods in the work place, the would fail on a widespread basis, lose and look bad. The national condition is not being examined rationally, but rather emotionally and against weird psychological frameworks built in flimsy defense.
In the last three years, a few colleagues and the Jackass have investigated reasons why people do not investigate or show interest in the decayed financial structures and depleted economy. We examine why they choose to remain uninformed and in the dark.This is a new intriguing aspect of human psychology to me, and as fascinating as disturbing. Here are some conclusions after a couple of years. a) We conclude that some people have over-arching belief systems for their lives that are sacrosanct and not challenged. b) We conclude that some people are so frightened by certain threats, that they wish to ignore them. c) We conclude that some people wish to believe the leaders, laws, and system protect them, another sacred belief. d) We conclude that some people are successful in their work, and deeply invested in the current system, that they do not wish to alter the system in which they succeed. These justifications and phenomena are not comprehensive or exhaustive. They are a work in progress, which go together with the Stockholm Syndrome and the Warsaw Effect. These two address the emotional integration between victim and assailant, and the denial of threat while trapped within walls. However, integrate the four described items and something more perverse emerges. What appears is defense mechanisms for a failed nation and delusional defeated masses. Too many people have succumbed to the pressures, and remain hidden in their little anal caves.
HOPE IN GOLD STANDARD
The hope lies in Gold & Silver, if they can find any available supply, that is. The household and business savings hoard available to convert to precious metals is no longer ample, another challenge. The suppressed price has wrecked the market. The supply chain has been interrupted, with numerous mining firms putting marginal projects on hold or suspended them indefinitely. The Chinese are acquiring the mine capacity, and even courting the global mining firms, to take supply from the COMEX. The precious metal bars and coins remain the salvation for the masses. They should be accumulated despite all obstacles by the USGovt and protestations by unschooled irrational spouses. The downtrodden masses have hope. Their hope lies in a return to the Gold Standard, with a legitimate New Dollar currency. The nation must pay for its economic sins and financial frauds and warmongering deeds first. It will be a painful process, probably with an isolation which could resemble a quarantine, during a period of frightening chaos.
The Return to the Gold Standard will be a rocky process, complete with tremendous disruptions. The nations of the world must recapitalize their central banks as well as their entire banking systems. They will convert USTreasury Bonds to Gold & Silver bullion. They will then move to convert UKGilts, EuroBonds, PIGS sovereign bonds, JapGovtBonds, and other toxic paper into Gold Bullion. The bullion banks must restore the allocated gold accounts they pillaged. The USFed and Bank of England must restore the allocated gold accounts they rehypothecated (borrowed, stole). The birth of the Eurasian Trade Zone is on the verge, and the US & UK fraud kings are not to be invited. The BRICS Bank will soon emerge with a key role to convert toxic sovereign bonds into Gold Bullion for the Emerging Market nations. The parade of gold-backed and resource-backed currencies will provide a procession of legitimacy and honor. The US & UK will be outside looking in, a punishment for acting at the Axis of Fascism in the last few decades, not just the last several years. The 911 event was just a coming out party, their Patriot Act an actual Gestapo Manifesto declaration. The true defense is to acquire Gold & Silver and gild the doors from the jackboots.
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