Ponder why this financial crisis had to happen as you read what's below.
It's just basically simple crime...theft of funds...it seems no one wants to do anything about it.
NEW REPORT STARTS HERE:
PULLING THE WOOL OVER THE MARKET'S EYES HAS FAILED
President Barack Obama makes a nice speech. That’s what he does.
But by the end of February he had squandered this sole asset – and had revealed not only his status as an Emperor without clothing, but the void that sits in the White House. It is matched by parallel black holes at the Federal Reserve Board and the US Treasury.
When it comes to the Federal Budget, which the Editor of this service has studied for the past three decades, the official expectation is that the whole world will immediately contract Ego (Eyes Glaze Over), so that no-one will be able to separate the smoke from the mirror image of the smoke generated by the duplicitous Office of Management and Budget (OMB) – whereupon time will pass, the press will rapidly get bored of the subject, and the latest duplicitous budgetary sleight of hand will have passed undeconstructed except by diligent observers of whom nobody takes any notice.
Such cynical, self-defeating thinking has notoriously accompanied the aftermath of US Federal Budget presentations since Carter’s Presidency and earlier: so, one might ask: what else is new? Haven’t we all been here before?
No, we certainly have not.
In the first place, President Obama’s speeches have been littered with the words ‘transparency’ and 'accountability' – the primary subliminal message being that since the American people voted for a ‘Break with the Past’, this is what they’re going to get.
In other words, Obama and his team are all nice’n WYSIWYG: what you see is what you get.
Er, not at all. The reverse is the case.
TALK OF TRANSPARENCY AND ACCOUNTABILITY WHILE PRACTISING FRAUDULENT FINANCE
President Barack Obama talks ‘transparency’ and ‘accountability’, while presiding over a revised Federal Budget decorated, would you believe, with the slogan ‘An Era of Responsibility’, that is such an insult to the intelligence of even the most uninitiated amateur budgetologist, that the only possible reaction, prior to tearing one’s hair out, is to ask the question: are these people really as mentally defective as the Budget numbers suggest?
Or is the problem that they are so steeped in deception, lies and diversionary counterintelligence antics, that they have become terminally confused?
Actually, the problem may be that the previous Administration stole an estimated $9.0 trillion, which has vanished from the false books. And since the Clintons were, as noted earlier, working with the previous Administration (as Clinton ‘works for’ Bush Sr.), THEY were involved in this pillaging.
So it’s not just that these people are mental defectives, like all US counterintelligence operatives specialising in lies and deceit, but that they have a colossal problem, too – a problem so terrible that they have been reduced to publishing Budget numbers which stretch credulity to infinity.
In other words, their madness is dictated by the absolute necessity of trying to avoid being picked up, handcuffed and consigned to spending the rest of their tawdry lives in jail (if only the US Gold Badges weren’t so compromised themselves that they won’t actually support the Rule of Law).
Certainly, in nearly 40 years of watching second-rate US and British politicians and policymakers mess up everything that they touch, the Editor of this service has never observed any US Budget presentation as devoid of common sense as is implied by the Federal Budget that Barack Obama introduced in February, having torn up the Budget presented by his discredited predecessor’s Administration (at enormous cost to the taxpayer, of course) and replaced it with a set of numbers so fanciful and ridiculous that one can hardly believe that the OMB didn’t hire lunatics from the local asylum to prepare this scandalous piece of official documentation.
INDIA RUBBER NUMBERS: TREASURY TO SELL $450 BILLION TRASH PER MONTH
The Office and Management and Budget wants the world to believe that the nominally outstanding Federal debt total of nearly $10 trillion as of 30th September 2008 can safely be ballooned to over $23 trillion by the end of Fiscal Year 2019 (these are data 'as reported': but see below).
For these entirely fanciful projections to materialise, the Treasury will ‘need’ to sell $13.2 trillion of trash instruments over the period. Bear in mind when looking at OMB numbers that beyond the preceding and current Fiscal Years’ data, all its numbers are made of India Rubber (even though the current data are likewise manufactured from a similar material).
So, as this veteran budgetologist can testify, what you get is ever such a smooth fake projection upwards: no shocks, you understand.
But on 17th February 2009, the Statutory Debt Limit was jacked up from $9,961 billion, to $12,104 billion, an unprecedented increase of $2,143 billion, to accommodate much of the 'projected' increase in debt to be issued by the Treasury, of $2,718 billion, by the end of Fiscal Year 2009, namely by 30th September this year. That's RIGHT! The Budget documentation says that the US Treasury is to sell more than $2.7 trillion of debt instruments in the space of six months!
TO REPEAT: The Obama Office of Management and Budget’s documentation seriously states that the US Treasury must sell trash instruments ‘worth’ more than $2.7 trillion in the space of just six months – that is to say, it must sell $450 billion of trash Treasuries every month from March to September 2009. But the financial markets are saying: NO WAY, JOSE.
As previously reported here, on 18th February, the cost of insuring a $10 million US Treasury instrument for a five-year maturity against default was $90,000, whereas in a normal market environment, the cost should be $10,000. On 19th February, this cost had risen to $93,000.
By 23rd February, the price had escalated further, to $100,000. This information emerged from the Chicago ‘pits’, so it represents an accurate snapshot of what the market thinks of the intellectual calibre of the Obama Treasury and the Office of Management and Budget.
Now, even if prospective purchasers of such US Treasury trash existed ‘out there’, the price that the market would insist upon being paid for it would be not just prohibitive: it would rule out any such market’s existence. Hence, the moment that the position is considered by anyone who is not a mental defective, it must immediately become apparent, perhaps even to the most arrogant CIA/ONI dumkopf, that what was being proposed wasn’t just a non-starter: it indicated that President Barack Obama, Timothy Geithner and the OMB Chief, Peter Orszag, all need emergency brain surgery.
MRS CLINTON’S BRAIN FELL OUT, TOO
Mrs Hillary Clinton, the US Secretary of State, and the CIA wife of the CIA operative co-running the world’s most destructive terrorism financing machine and drug-running racket in history, in which Mrs Clinton has herself been closely involved ever since the drug-running operations via Mena in Arkansas, departed in February on a trip to the Far East, winding up sitting awkwardly on a couch in Beijing, face to face with the Chinese top man du jour.
At the end of that visit, Mrs Clinton, who has never been renowned for possessing a first class brain, told the controlled Chinese media:
‘We have to incur more debt. The US needs the investment in Treasury bonds to shore up its economy to buy Chinese products’.
This observation has to rank as the most crass to emerge from the lips of an American Secretary of State in the whole demented history of this frenetic geomasonic Republic – and is certainly by far the most asinine official remark that this Editor has recorded since he began the mournful task of monitoring the endless foolishness and idiocies of officials and politicians nearly 40 years ago.
WHY MRS CLINTON'S COMMENT LENDS NEW MEANING TO THE ADJECTIVE 'CRASS'
For the sake of ‘joined-up’ analysis, we can briefly summarise the depths of stupidity and mental retardation plumbed by this woman’s reported pronouncement:
(1): It has been explained to these people ad nauseam that the United States does NOT have to incur more debt. A scheme which would bypass debt-creation was presented to and agreed by the Group of Seven Financial Powers at their meeting in Northern Germany in June 2007. This scheme was reviewed and reapproved in 2008. It consisted of:
(2): Transparent on-the-books private sector capital markets transactions generating fully taxable REVENUE using funds lent for the purpose by Her Majesty the Queen and Prince Al-Aweed Al-Talal of Saudi Arabia. Together with a further $7.8 trillion of sovereign funds belonging to the Chinese parties, these monies, owned by foreign owners but made available pro bono publico to help get the United States, the US dollar system, the world trading system and the world economy out of the hole eagerly dug for it by the practitioners of Fraudulent Finance and their shadow financial sector, remained on the table for 19 months (in the case of the $6.2 trillion) until they were withdrawn on 29th January 2009, as we reported – after it had become clear that the new Obama Administration preferred the yellow brick road to absolute perdition rather than to seize the no-strings-attached lifeline which would indeed have rescued the Obama Presidency, the United States, the US dollar system, and the whole world. The funds were made available PRO BONO AMERICANO PUBLICO.
Needless to say, instead of being used for the purposes for which they were intended by the owners and lenders, the $14.0 trillion of foreign funds were misused, leveraged and securitised – so that the illicit proceeds generated therefrom are today worth – guess what? NOTHING!
• Because all derivatives assets are worth: ZILCH. As the world is rapidly finding out.
• See? We told you the day of reckoning would arrive much faster than anyone anticipated, shocking the whole world in the process. And that's EXACTLY what's happening, isn't it?
(3): ‘Continuing to buy Chinese products’ does not ‘shore up’ the American economy: it contributes further to decimating it. There is no law which requires the United States to buy Chinese products: the United States should be manufacturing these products itself, as it used to do in the old days before 'free trade’ was manipulated to provide cover for ‘globalism’, a.k.a. Fraudulent Finance.
• Mrs Clinton's brain appears to have been working back to front before it fell out.
(4): The suggestion that the Chinese must pour vast sums into worthless Treasury trash, only days after key Chinese parties had removed $7.8 trillion from residual access as described in our earlier reports, indicated that Mrs Clinton's brain is disconnected from the rest of her body and that she is even dumber than those who have had dealings with her know her to be.
Quite simply, Mrs Clinton’s brain fell out: which may not be surprising since, if she hadn’t managed to get herself appointed Secretary of State, she would be in handcuffs. She's so uptight, she can’t think straight, given the extreme ongoing bind she’s in, as her protective house of cards collapses.
AN EXOTIC LIE TO OBFUSCATE THE BUDGETARY SMOKE
As soon as elements of the panicking, self-interested and traitorous US intelligence community realised that the financial markets were not about to buy into these fantasies and lies, designed to preserve the usurped hegemony of which the CIA is so protective, a ‘story line’ was put about, to the effect that the Chinese authorities had demanded ‘eminent domain’ terms enabling them to seize real assets (property, infrastructure, warehouses, government buildings, plants, railways) in exchange for agreeing to pour their good dollars into the Treasury sink-hole.
This pack of lies was concocted both to terrify the already hysterical American people and also, in part, to cover up the fact that the Federal Budget as proposed cannot be implemented.
This needed covering up, because an automaton called Barack Obama was continuing, day by day, to promise not only the moon, but also the planets, the stars and the Milky Way to the masses – whose expectations have been very dangerously aroused and are scheduled to be dashed to smithereens ‘even as we speak’.
The other reason for this ‘story line’ connects with what we report above – namely that the Obama Administration and the Clintons are covering up a giga-problem so enormous that they have been driven to publishing nonsense Budget numbers to provide ‘rationales’ for intended Fraudulent Finance operations behind the scenes which the despised hoi polloi are not supposed to suspect, let alone to understand.
Unfortunately for President Obama and his deluded colleagues, these dimwits, none of whom have any actual business experience, have forgotten about something called the marketplace.
It is signalling loud and clear that it believes that Obama’s fine rhetoric represents empty verbiage, that the Federal Budget numbers are garbage, and that it has no intention of assisting the Geithner Treasury (if Geithner is still around) to finance these final twitches of the maddened financial snake which has emerged from the Bushes.
TAKING THE BUDGET DATA AT FACE VALUE
The way the Editor has deconstructed US Federal Budgets over the years is always the same: to take the published numbers at face value. The point here is that we are dealing with official data: so who on earth are WE to question the reliability of these numbers?
By taking the official OMB numbers at face value, it becomes a simple matter to expose them to ridicule, which is the purpose of this report.
When reviewing the US Federal Budget, our routine practice for many years, both in International Currency Review and Economic Intelligence Review, has always been to ‘add back’ the ‘Debt held by Government accounts’ to the ‘Gross Federal Debt’ (as reported).
The reason this must be done is that since at least the Carter era, the monies accruing in so-called budgetary ‘Trust Fund’ accounts is EARMARKED money that will be needed in the future to meet longer-term statutory obligations of the Federal Government. However, by Statute, and ever so conveniently, these earmarked moneys are ‘required’ to be ‘invested’ in the so-called Federal Funds accounts (current expenditure accounts).
It therefore follows that the ‘Trust Fund’ moneys have already been squandered – whereas, as indicated, they are needed to meet future obligations. So the ‘Debt held by Government accounts’, which is REMOVED from the official OMB statements of 'Gross Federal Debt', has to be ADDED BACK in order to yield a ‘true’ picture of Gross Federal Debt Outstanding (always bearing in mind that all the OMB Budget numbers are made of India Rubber).
AN UNTHINKABLE BORROWING REQUIREMENT
On this basis, and using ONLY the published numbers, total Gross Federal Debt Outstanding jumps from $14,144 billion as at 30th September 2008, to $17,019 billion at the end of September this year, winding up at $30,892 billion on 30th September 2019 – long after the American Republic will, at this rate, have ceased to exist.
Even if the Chinese had caught Mrs Clinton’s brain disease, they could not possibly accommodate this borrowing requirement. And since the Chinese parties withdrew their $7.8 trillion of real cash money, which had been ‘sitting there’ inside the Treasury’s custodial account system for at least 19 months (this was certainly the case with the $6.2 trillion of loan money), the likelihood of the savvy Chinese having agreed to an arrangement whereby they enjoy eminent domain and thus freedom to seize real assets in the United States in the event of the US Treasury defaulting on its trash debt obligations, can be seen to be quite ridiculous.
THE MALICIOUS ‘EMINENT DOMAIN’ RUMOUR RECYCLED NOCH EINMAL
The Chinese have been ‘doing this stuff’ for hundreds of years and, unlike Mrs Clinton, aren’t stupid. They would have the smarts to work out that such ‘eminent domain’ would, like the US Treasury trash itself, be worthless – since in any such crisis they would naturally be physically prevented from taking over ‘their’ US assets.
In any case, the US Secretary of State could not offer such an undertaking without exceeding her powers: and in the unlikely event that she HAS traded open-ended Chinese purchases of trash US Treasuries to the tune of $450 billion a month between now and September 2009 for such ‘eminent domain powers’ (a ‘story line that cropped up about a year ago, so it’s nothing new), she should be arrested and impeached.
As for those operatives disseminating this rumour, and variants of it, it is incumbent upon them to reveal the name of any US Embassy official who may have leaked this (spurious) information, the date and times of the relevant telephone call, chapter and verse concerning the document (?) in question, and other hard information necessary to corroborate such an outrageous and traitorous assertion. If they cannot do so, THEY should be arrested by law enforcement without further ado.
OH, AND WHAT ABOUT ‘SOURCE OF FUNDS’?
But most important of all, everyone who pays really serious attention to these matters should train themselves to ask the following question at all times: WHAT IS THE SOURCE OF FUNDS that are to be used to finance Obama’s purchase of the moon, the planets, the stars and the Milky Way?
They won’t answer your question because in President B. Obama’s ‘transparent’ Universe of ‘full accountability’ consistent with the Office of Management and Budget’s slogan used for its February Budget presentation – ‘A New Era of Responsibility’ – they would have to COME CLEAN.
And they can’t do that: DON’T’ BE RIDICULOUS: because the Obama Administration is engaged in Fraudulent Finance on a much larger scale, even, than its disreputable predecessor régime.
So, while the new Presidential automaton mouths his lies and duplicitous deceits about so-called 'transparency', 'accountability' and halving the deficit, his DOUBLE-MINDED colleagues thought they could pursue the opposite strategy of continuing with their untaxed Ponzi operations off-balance sheet, creating fake money out of nothing. The ‘visible deficit’ in Fiscal Year 2009 will exceed $1.7 trillion, to be followed by a 'visible deficit' in 2010 of nearly $1.2 trillion.
In addition to the foregoing, the false mathematics on which Mr Barack Obama’s promises to give American voters the entire planetary system are based, encapsulate what English schoolmasters call elementary SCHOOLBOY HOWLERS (mistakes).
The most astonishing of these is the official assumption that ANYONE, even foreign investors suffering from senile dementia, would ever contemplate investing in US Treasury trash given that such monthly Treasury debt emissions are to average $450 billion for the next six months alone, ACCORDING TO THE OFFICE OF MANAGEMENT AND BUDGET DATA.
If these numbers are ‘wrong’, why publish them? They will be found on page 134 of the part of the OMB documentation entitled ‘Summary Tables’, published in February 2009.
No wonder Mr Geithner was unreliably reported on 2nd March not to have been seen for 19 days. Even if he has surfaced by the time the Editor has eaten his breakfast, he would be wise to keep his face behind his office door: which, preferably, for his own peace of mind and physical safety, should perhaps be kept locked, while he decides when to resign.
• FACT: Following submission of documents on 29th December 2008, Pennsylvania Investments, Inc., of which Michael C. Cottrell, B.A., M.S., is the proprietor, was appointed the lead operation to proceed with the approved private sector-based, transparent, on-balance sheet, fully taxable US dollar capital markets trades generating REVENUE, deploying the lenders' funds which had been waiting to be used for that purpose for 19 months, but had instead been illegally leveraged.
These funds, which had been placed into 'lockdown' between 10th and 12th September 2008 on advice, after they had been abused contrary to the lenders' requirements, were finally withdrawn altogether on 29th January 2009, after it had become apparent that Barack Obama was not going to authorise the private sector REVENUE-generating option. Also then withdrawn from US access in tandem was the $7.8 trillion of Chinese sovereign funds, for a total of $14.0 trillion cash.
It is strongly recommended that the delayed REVENUE-generating on-balance sheet capital markets transactions should be implemented from the United Kingdom on the same basis, given that GOOD MONEY pushes out bad money. The REVENUE generated by such operations will be 'good' money because it will be visible, transparent, fully reported, taxed and ON BALANCE SHEET.
By contrast, Government can only generate DEBT. That's why enormous quantities of trash US Treasuries are theoretically to be sold in order to finance Obama's programmes, generating the further debt mountains alluded to above. Choosing the debt route is the WRONG DECISION, as the markets are now confirming. The CORRECT DECISION would be to generate TAXED REVENUE on the books via the private sector capital markets transactions.
By this method, which the G-7 Financial Powers all approved in 2007 and 2008, NO NEW TREASURY DEBT WOULD BE CREATED AT ALL. Simple and straightforward: which is why the G-7 approved it