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The massive Quantitative Easing (QE) abuse by the USFed and steeped lies
are centered on its volume, which in reality is an order of magnitude higher
than admitted. The recent usage of certain REPO windows has been effective to
disguise huge volume of bond purchases. The entire bond system is irreparably
corrupted. The REPO window hides QE extras with naked bond shorting linked to
a $1 trillion extravaganza that receives almost no publicity. While the
public, and even more financial market participants, focus on the Dow Jones
stock index, the Treasury Bond yield, the crude oil price, and very little
else, they overlook the Reverse REPO window and the related Failures to
Deliver data for USTreasury Bonds. The two work like a hand and glove.
The abuse is laced all through the USTreasury Bond market. These big banks
never pay for their crimes, as they repeat them in other forms. Since JPM is
the official USFed market agent, no consequence in criminal charges. It is
given praise and more bond redemptions. When caught, the Wall Street and
London Centre banks pay fines and penalties, sometimes even meager
restitution, but they chalk it all up to a business expense. Criminal fraud
is merely a cost of doing business in New York and London. The public is none
the wiser. The American public by and large are in need of remedial
education, lately showing no knowledge of money, capital, banking reserves
concepts, the USDollar status, or economic meters. The greatest shortcoming
is knowledge of how to grow an economy, since tin cupping with handouts aint
the answer. The answer is found in business investment, something our Marxist
leaders oppose unless they have personal investments involved. See Chertoff
and airport devices. See Rumsfeld and Tamiflu programs. See Obama and Solari
investments.
REVERSE REPO ABUSE
Focus on the Reverse REPO, which is highly innovative from two angles.
Normally the USFed requires collateral to be placed at the REPO window, from
companies seeking cash infusions on a temporary basis. Sometimes the USFed
announces a ripe volume of Reverse REPO infusions into the system. They
occasionally attract bad attention, but it wanes with the next fiction on
strong markets and recovering economies, or even debate among fools who
anticipate official rate hikes. The USFed uses the Reverse REPO to hide
some of its QE volume. It is concealed QE volume, part of the biggest lie in
US financial history since the USFed has generated multiple $trillions in
hidden channel support, massive gushers. The key is no collateral placed
on the opposite side of the window. It is neither stimulus nor minor in
volume. The central bank helm is managing a gigantic volume, hidden in
numerous ways. The John Q Public is none the wiser, reading the controlled
fiction in financial press publications, about wondrous stimulus. In reality,
QE kills capital and assures an economic collapse. It is happening before our
eyes.
The related other side of the table features the Failures to Deliver on
USTreasury Bonds. The Wall Street Journal and New York Times report on the
phenomenon, but quickly move off the topic. To have a significant figure of
undelivered USTBonds speaks of more deep criminality. It indicates
counterfeit or naked shorting by Wall Street banks. They have found a way to
bring in liquidity to their broken insolvent big banks, selling USTBonds they
do not own, receiving the funds into the corporate treasuries, improving
handsomely their cash flow, never to deliver on the product. The buyer is
often none other than the US Federal Reserve, which does not force
prosecution for counterfeit or bond fraud from its vassal bank accomplices in
the crime of counterfeit. Other buyers must wait, since no penalty is meted
out for violations. The result is a fancy pants infusion of big $billions
into the Wall Street banks with no costs associated. One must wonder how they
hide the funds within their balance sheets, 10-Q filings, and quarterly
statements. Probably they do so by mixing it in with their ample busy narco
funds within New York money center banks.
The USFed has been also concealing its QE volume by export. They have
arranged since 2012 to create a group of secondary nations for second
sourcing gigantic USTreasury Bond purchases. The source of funds is both
Dollar Swaps for the USFed to buy USTBonds at arm's length in Europe, but
also dumped Chinese USTBonds from their reserves. Some Russian held USTBonds
might also be in the mix. The nations are the BLICS nations, namely Belgium,
Luxembourg, Ireland, Cayman, and Switzerland. The latter is not a small
nation, but probably helps to manage the slush funds from the Basel fortress.
The Belgium location is important as seat of the European Commission and
Parliament. The BLICS as a group have invested in over $800 billion in
USTBonds since mid-2012, almost equal to the USFed itself on its stated (lies
for sure) QE volume. The official USFed understates the true QE volume by
at least two-fold. Add in the derivative contract coverage, and the Jackass
believes the true QE volume is perhaps 10x to 30x greater. It is an end game
signal for Zimbabwe style monetary policy with grand grotesque rupture. The
abuses, beginning with QE and extending to Reverse REPO, invites an Eastern
rejection of the USDollar.
FAILURES TO DELIVER
Failures to deliver in USTreasurys signals breakdown as well as naked
shorting abuse. Wall Street firms funnel in free money without criminal
consequence, to tune of $40 billion per day. It is a nice racket, protected
by the USGovt and their goon squad. The public is none the wiser, cheering
the stuck low rates. They seem unaware that QE destroys capital. Few seem to
focus on the deep decline in Money Velocity, which in itself proves that QE
is not stimulus.
The gimmicked rigged corrupted USTreasury Bond market is currently
cruising along with about $40 billion Failures to Deliver on a daily basis in
the bonds. This is a veritable bonanza for the Wall Street firms, probably
London and Western European banks as well. It is free money, and
disguised QE volume which totals over $1 trillion per month in magnitude. Yet
the counterfeit receives very little publicity, since it provides ample cash
flow for the broken criminal banks. Think over $1 trillion per year in free
cash flow to the big broken banks. Compare to the minor $40bn per month
admitted by the USFed, even the other $40bn per month by the BLICS nations in
exported QE. The Failures to Deliver is 12 to 25 times larger in volume,
surely hidden QE by any other name.
The USTBonds are not being bought by legitimate investors, while the
USDollar is rising. At the same time, the globe is liquidating the USD-based
derivatives. Doing so is leaving them with little USD general exposure. The
enormous $40bn in failures to deliver come from naked shorting, principally
by Wall Street banks in league with the USFed. They have found a sweet
channel for pushing up liquidity via fraud, of course with full impunity. It
is linked for sure with both QE and the Reverse REPO angle, to complete the
loop. The USFed shoves money into the system, which finds its way to the big
banks via fraudulent naked bond shorting. There is no demand for USTBonds
outside QE of substance, except maybe for Japan. The graph below shows a
staggering volume of bond delivery failures, which is HIDDEN QE VOLUME.
DTCC's Fixed Income Clearing Corporation serves as the clearing house for
markets that trade in USGovt securities. Assume that a firm fails on a $50
million position on which it is owed $50.1 million. If the Target Fed funds
rate the previous day was 1%, then the fails charge will be 2% per year, to
be applied to the $50.1 million total value of the trade. The resulting
charge for the firm would be $2783 for that day. It is a mere pittance, a 2%
fee per year for the theft which retains 98% of the funds gratis.
The Jackass would like to embark on a business of selling cars and plasma
televisions and Air Jordan shoes, take in the cash on the sales, and never
deliver on the products. The concept is patently illegal, yet the Wall Street
banks are routinely selling USTBonds without delivering on the bonds on the
other end. The buyer does not care, since it is the USFed, the helm of the
banker crime syndicate. Witness the exceptionalnation at work in the cash
register. The public is almost completely unaware, since Zero Hedge is not
favored over network news, reality shows, and other pablum.
NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
Events of the last two or three weeks could not be more disruptive,
dangerous, or ominous. The IMF refused inclusion of the RMB in their currency
basket, clearly feeling threatened. In response, expect China to hasten
its efforts to dislocate the USDollar from its perch in trade and banking.
Expect extreme pressures to accelerate the increasing required usage of
Chinese RMB in trade settlement. The Chinese are even more motivated
after the strategically important Tianjin business center and logistics data
center was converted into a crater. Langley finger prints might soon be
found. Almost a full decade has passed for setting up the widespread usage of
Yuan Swap Facilities for bilateral trade between nations with China. Expect a
major step toward coercing the Saudis to accept RMB currency for payment in
oil shipments, a movement sure to spread to all Gulf Emirate nations. The oil
card is the flash point.
In time, expect an eventual refusal by Eastern manufacturing nations to
accept USTreasury Bills in payment. The IMF reversal decision assures this
USTBill blockade in time, and might accelerate the timetable. The United
States Govt cannot continue on five glaring fronts of gross violations. These
violations have prompted the BRICS & Alliance nations to hasten their
development of diverse non-USD platforms toward the goal of displacing the
USDollar while at the same time take steps toward the return of the Gold
Standard. The violations are:
1) to import finished goods and crude commodities, paying with IOU coupons
2) to commit multi-$trillion bond fraud in its big banks, done without
legal prosecution
3) to do QE bond purchases in applied hyper monetary inflation, monetizing
debt
4) to rig all major financial markets in favor of the primal USDollar
5) to engage in numerous regional wars to support the USDollar.
The key step upcoming is the Gulf Emirates soon to accept RMB for oil
payment from all Eastern & Asian countries, the major flash point. Such
event will sound the global alarm. Coupled with broadbased RMB trade
settlement and more purchase of Chinese Govt debt securities, the movement
will be on to finally initiate the grand dump of USTreasurys from Eastern
banking systems. Then later the entire world (except for England and Canada
and certain Western European coulee nations) will diversify out of USTBonds
in their banking systems. The result will be then a forced reaction by USFed
and USDept Treasury to launch the New Scheiss Dollar, which will at the
outset have a phony gold foundation. A formal international audit process
will break down the fraudulent basis, and lead to a series of painful New
Dollar devaluations. Then comes the import price inflation, the supply
shortages, and the civil disorder.
The New Scheiss Dollar will have a 30% devaluation out of the gate,
then many more devaluations of similar variety. The New Dollar will fail all
foreign and Eastern scrutiny. The USGovt will be forced to react to USTBill
rejection at the ports. The USMilitary and Langley threats will not work
much longer. The Langley crew might attack the entire world, which could
result in an American Quarantine. The US must accommodate with the New
Scheiss Dollar in order to assure import supply, and to alleviate the many
stalemates to come. The United States finds itself on the slippery slope that
leads to the Third World, a Jackass forecast that has been presented since
Lehman fell (better described as killed by JPM and GSax).
The Gold price will find its true value and price over $10,000 per ounce.
The Silver price will find its true value and price over $400 per ounce. In
reaching these levels, the ratio will return to the 25-1 range. Several steps
have been laid out by the Hat Trick Letter toward the return of proper price
to precious metals. The major upcoming events will be exciting to watch
unfold, one after the other, in an inevitable sequence away from fascism and
concentrated uni-polar power, with a strong movement toward freedom and
equitable systems with distributed power. The steps will each involve a
quantum jump in the Gold & Silver prices. The process will take a few
years, but might be breath-taking in speed once the process is begun. The
steps involve:
- the critical mass of rejected USTBills in trade
settlement, citing its corrupt roots and illicit monetary policy as
foundation
- the return to the Gold Trade Standard and introduction
of Gold Trade Notes as letters of credit, in replacement for a fair
tangible payment system (no more IOU coupons)
- the recapitalization of the global banking system with
Gold as primary reserve asset, so as to relieve the grotesque
stagnation, insolvency, and dysfunction
- the seeking of equilibrium in Supply vs Demand in the
new fair uninhibited market, with exclusive control removed from London
and New York, and placed elsewhere like in Shanghai, Hong Kong, Dubai,
and Singapore.
- the seeding of BRICS gold & silver backed currencies
from participating nations within the Alliance (likely several with
slight variation in features)
- the re-opening of the gold mine industry with some blue
sky, and relief from the Evergreen element at Barrick
- the remedy toward owners of over 40,000 tons of
rehypothecated and stolen gold in bullion banks across the world
(primarily in Switzerland.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
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