Hat Trick Letter – červen 2011

Spekulace nad Obamovou návštěvou Velké Británie

PRESIDENT OBAMA VISITED ENGLAND FOR NO STATED PURPOSE IN THE OFFICIAL CHANNELS. IT WAS ACTUALLY A LAST DITCH ATTEMPT TO HALT THE LAST CHAPTER OF A $TRILLION FRAUD SCHEME, ONE PERPETRATED BY THE BANK OF ENGLAND AND THE USGOVT LED BY WALL STREET FIRMS. LONDON WANTS THE GIGANTIC FRAUD CHAPTER TO COME TO A CLOSE, YIELDING TO COURT PRESSURE. WITNESS THE END OF THE AMERICAN EMPIRE, WHOSE LATEST CHAPTER HAS FEATURED GLOBAL FRAUD WITHOUT HISTORICAL PRECEDENT, LARGER EVEN THAN WIDELY REPORTED. $$$

This story extends from a very murky and controversial fraud role program, which many analysts call kooky. Some call it the Wanta Funds. The Jackass has avoided the topic for a long time. Yet its validity has been confirmed by my most reliable source, a gold banker. It is real, it is ugly, and it is huge, the interest payments for which total over $1 trillion over a full decade. So it is worth stealing, as Hank Paulson would attest. The fund is part of a much bigger network of fraud role programs totaling multiple $trillionS for which Fannie Mae and other trust funds (Social Security Trust) have been involved. The concept is to lock down a huge fund, steal its interest, and keep the public in the dark. The USDept Treasury (aka Goldman Sachs) has been managing the theft for close to 15 years along with the Bank of England. During the Obama visit to London, a surprise email arrived without solicition, since it was deemed very important. A second independent source confirmed the same motive for the official London visit. He has USGovt, USMilitary, and US Homeland Security connections. The two sources have dovetailed nicely in confirmation of certain stories. For instance, each source in September 2010 mentioned Papa Bush providing narcotics money aid to Bank of America in order to prevent an overnight bank default. They each mentioned the exact same $13 billion figure without my prompt.

The message from the gold banker cited how Obama had no good reason to be visiting the British bankers. He claimed Obama went there to beg the London bankers not to discontinue obstacles for release of the giant fund of money that had been highjacked. The Intl Court of the Hague has been involved, as has Interpol, to apply pressure on the criminal banker leaders in England and the United States. Upon inquiry of whether the appeal centered upon Wanta Funds, he said yes, he believes so. Something big is going on behind the curtains. Here is the detailed comment from the gold banker. He wrote, „This is nothing but the final and desperate attempt to avoid the unavoidable. The global Anglo-American dominance is coming to an end. The Bank of England has decided to pull out of the grand fund highjack game that has been so profitable to the US-Anglo bankers for over ten years. Just look at how the Europeans dealt with Obama when he visited Poland. Lech Walesa even refused to meet with Obama, by publicly stating that he was not available for photo ops. They slapped him in the face repeatedly and then told him to kiss off. His sleeveless inappropriate wife did not even accompany her husband to Poland, since the Poles refused to offer a ladies program. Last night the German Chancellor Merkel was forced to circle in Turkish air space for two hours since the Iranians canceled the over-flight permit for her to go to India. The Iran lockout conducted by the Americans is causing huge problems in Europe. Another plane with some German ministers, that had left one hour earlier, was allowed to pass without a problem. If one adds up all the little details here and there, it adds up to a lot of serious change in the wind. The writing is on the wall and it is ugly. One can sense that something profound is in the air. Like a mega thunderstorm rolling in. You know it is coming but not how many lightning strikes will happen or how hard the rain will be.“

 

Bude QE3 a co případně může znamenat?

THE FACE OF QE3 IS STARTING TO TAKE SHAPE. IT WILL BE MAJOR FOREIGN CENTRAL BANKS AND BIG USBANKS THAT PURCHASE USTREASURY BONDS AT THE BEHEST OF THE USFED. INSTEAD OF BEING ISOLATED AS SOLE USTBOND BUYERS, THE USFED WILL URGE THE MAJORITY OF BIG PLAYERS TO JOIN OR WATCH THE SYSTEM FAIL. UNDER THE DECEPTIVE PLOY THAT BIG USBANKS MUST RAISE THEIR RESERVE REQUIREMENTS, THEY WILL BE COERCED TO PURCHASE MORE BUBBLY USTBONDS. THE NEED SUPPOSEDLY DID NOT EXIST SEVERAL MONTHS AGO. AS QE2 SUPPOSEDLY ENDS, THEY MUST CONFORM TO THE BASEL RULE.

With the advertised end of Quantitative Easing Chapter II, a total ruse sham lie, the USFed and USDept Treasury must lead the crowd into USTreasury Bonds, even if at bubble asset prices. The stock market has been undermined, fully forecasted here with an exodus into bonds right on schedule. What remains is inducing the big US banks, given the monstrous volumes necessary to cover USGovt debt issued and rolled over. The edict started out as a preliminary indication of 7% asset reserves to be required by the large banks, in conformity all of a sudden to the Basel III Rules. So the final 3% rule could be seen as a compromise, less abhorrent when swallowed. A mass of buyers is required to fill the void. The USFed and Treasury henchmen can fill only so much with hidden devices such as the Caribbean centers that mask Bank of England support for their colony. Notice the scare tactics deployed against their own bankers. The excuse of Basel III enforcement provides timely and credible cloud cover. The USTBond and USDollar managers will succeed in only buying a little time before QE3 must be announced.

Without new QE3 funding, the system will utterly collapse. With new QE3 funding, given that marginal debt brings negative results, the system still heads toward collapse. As the ongoing QE continues, it will further debase the USDollar and lead to even greater declines in foreign exchange rates. The USDollar will lead the USGovt debt default process. The prospect for foreign creditors to hold or purchase USGovt debt securities soon could be perceived as a losing proposition, since the inefficiency has turned grotesque. That might make the rollover of USGovt debt and new debt issuance progressively more difficult. The alternative is much higher taxes (not likely) or much more continued monetary hyper-inflation (extremely likely). The concept that USFed monetary expansion is free, or that USGovt debt continues to be risk-free is absurd.

QE3 IS DEMANDED, NOT BECAUSE IT WILL CAUSE USECONOMIC RECOVERY. INSTEAD, IT WILL PREVENT A SYSTEMIC COLLAPSE, OR AT LEAST DELAY IT. HOWEVER, ITS PREVENTION OR DELAY COMES WITH A HEAVY COST OF A RISING COST STRUCTURE FROM THE DECLINING USDOLLAR. PRESSURE FOR CONTINUED QUANTITATIVE EASING IS OBVIOUS. $$$

A false impression has widely been promulgated. The USEconomy is weak and breaking down, moving toward a worse recession. The recession of 2008 never ended. It needs all manner of treatment, but proper treatment is not remotely being considered. The blunt force of QE3 will not bring about a USEconomic recovery. The extension of Quantitative Easing will be to prevent a jump in USTBill yields, USTBond yields, and Mortgage Bond yields, thus avoiding higher consumer loan rates and mortgage rates, and even worse. The extension of QE by the USFed will be designed to prevent a collapse. It would be to prevent a series of visible failed USTreasury auctions. It would be to prevent at least one big US bank failure from sudden credit asset declines linked to an accelerated housing bust and mortgage bond fiasco. My bet is on Bank of America to undergo failure. Ultimately, the wretched unsupportable condition of the USEconomy, the US banks, the US households, and the USGovt guarantees continuation of Quantitative Easing. The USFed and USDept Treasury are actively pursuing a termporary Scorched Earth program to send the financial markets downward, even as the laundry list of horrendous USEconomic statistics reads endlessly. The degradation of the USEconomy is broad, and deep with great momentum. Instead, the QE3 would prevent a move toward collapse, but at a heavy cost. The avoidance of collapse would come with much more price inflation, leading to civil unrest. The entire cost structure will increase again, with more visible food & gasoline rising prices. Witness the degradation and deterioration into an inflationary recession, later to turn into a depression.

v  Basically, QE2 was a failure, so it will be repeated. QE3 will prevent a more rapid financial sector decline and possible collapse.

v  The QE2 provided demand for USTreasury auctions, when most foreign creditors went on a buyer’s strike. So QE will be repeated.

v  The housing market has resumed its downward path, with frightening problems to bank loan portfolios. Foreclosures continue. So QE will be repeated.

v  The big US banks remain insolvent, loaded down by a mountain of one million REO homes in inventory. Buyers of mortgage bonds have disappeared. Mortgage bond yields are rising. So QE will be repeated.

v  The USGovt deficit picture is a full blown nightmare. Rather than see market mechanisms kick into gear, with higher interest rates imposed, the leaders will continue on the hyper monetary inflation path. So QE will be repeated.

v  Talk of the risk trade counter to the USDollar ending is nonsense. Weimar has met Wall Street, the syndicate handlers of the USGovt and partners to US security agencies. The Printing Pre$$ with US nameplate cannot be stopped. So QE will be repeated.

v  The Gold & Silver prices will move up hard, as soon as the light bulb goes on that QE3 is imminent without interruption. One must be a total moron not to anticipate its immediate installation. To decide not to continue QE would force failures upon major US banks.

v  The USFed is all bluff with no good cards in their poker hand. They will wait for stocks to be a little cheaper and both sides of the USCongress to beg for QE3.

 

Řecko a EUR

THE BANKER WARS CONTINUE. ANOTHER COSMETIC BAILOUT IS PLANNED FOR GREECE. IT WILL NOT LAST A MONTH BEFORE FALLING APART. HOWEVER, BIG EUROPEAN AND LONDON AND AMERICAN BANKS ARE HIGHLY VULNERABLE TO A EUROPEAN DEBT DEFAULT BY ANY NATION. THEIR EXPOSURE IS HUGE, ENOUGH TO CAUSE POTENTIAL BANK FAILURES.

The more disturbing note came from a deep European banker source with strong connections to global banks. He responded to the Jackass comment that the Greek bailout would not stand the test of one month’s time, that the big European bankers are badly exposed, and a Greek debt default would send grand ripples both to London and New York City. He wrote, „Spot on. Citigroup has a tremendous exposure in Europe. Once Greece blows, then things will get very ugly. The Greek Govt default is the event that will ripple across all of Europe, even London, and force some important bank failures. Trichet was just awarded the Karls Prize in Aachen Germany. This is a very prestigious prize that Vaclav Havel received. Trichet delivered his acceptance speech in German. Take it as a clear sign that he, as a Frenchman, has accepted how the music is made in Berlin. The new axis is Berlin-Moscow-Beijing, and the new money will be commodity backed. It is a done deal.“ He was referring again to the New Nordic Euro currency, to contain a gold component. Its launch is very soon, no more definitive timing.

THE COMMON EURO CURRENCY IS KILLING THE SOUTHERN EUROPEAN NATIONS. IT REMOVES ALL LATITUDE IN POLICY TO REACT TO THE EXTREME CRISIS THAT EXTENDS FROM THE FINANCIAL SECTOR TO THEIR ECONOMIES. PRESSURE IS ENORMOUS TO REVERT TO OLDER DOMESTIC CURRENCIES. HOWEVER, THE BIG BANKS WANT FULL REDEMPTION, IN ORDER TO AVOID FAILURES. THE EURO CENTRAL BANK IS THE BAGHOLDER, JUST LIKE THE USFED.

The debt default will soon trigger the Credit Default Swap payouts. Any alteration to the debt contract represents a default, such as extension of time in relaxing payment terms, and surely partial debt forgiveness in restructure. The European bankers are going to great lengths to avoid debt default, even redefining a default. The ratings agencies are a thorn in their side, reminding of the definition with frequency and publicly. Since the Southern European nations are so slow to leave the European Monetary Union, where the Euro is the common currency, the Germans might just exit the Euro themselves and introduce a launch of the Nordic Euro currency, an extremely disruptive plan that would cause extreme disorder. Ironically, the pressure not to exit the Euro altogether for the Greeks and Portuguese et al is coming from the big European bankers. The Greek people want a debt default. The Greek leaders are under great pressure to continue the bailout loans. The recent wrinkle is for the big European banks to demand collateralization of the huge loans. That means rather than default, the big players want to seize national assets like large corporate stakes, factories, ports, telecom networks, and so on. The advantages to Greece for a debt default are great, and do not serve the big banks well.

The reversion to the Drachma currency by Greece would come with a certain 30% to 50% Drachma devaluation. So the big banks in Europe would suffer a sudden significant loss. When the Athens leaders go back to the Drachma (from the Euro) and devalue by up to 50%, the losses to the banks holding the Greek Govt debt will be painfully compounded.

 

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