Have you read the recent financial news? Texas billionaire Allen Stanford was charged with "massive" fraud involving his Stanford International Bank. The U.S. Securities and Exchange Commission accused Stanford of fraudulently selling $8 billion in high-yield certificates of deposit. They want to know how Stanford International Bank could earn
profit without lending money.
The arrest of Sir Allen Stanford reminds of the case of Bernie Madoff. In December, 2008, he was charged with perpetrating
investment fraud. Bernie paid returns to investors from their own money or money paid by subsequent investors rather than from profit.
And do you remember Arthur Nadel who was accused by federal authorities of defrauding clients of millions of dollars? Or Nicholas Cosmo, an investment-firm owner, surrendered to federal authorities. He earned over $370 million between 2006 and 2008 by promising investors 48% annual returns from funding commercial loans.
Bernie Madoff, Allen Stanford, Arthur Nadel, Nicholas Cosmo … Who is next? What is going on in this world? Why have investors started to lose their businesses and what to expect in the future? Can these events be a part of a big game that somebody plays? Let’s find answers for all these questions.
No doubt that the present day economic environment is the main concern of all analytics, financiers, company owners and bankers in the world. They want to know – how did it happen? The main reason of the world financial crisis is the over-issuance of the basic international currency – the US
dollar.
You probably know about the Bretton Woods system. It concerns the forms of international cooperation. Every country adopted a monetary policy that maintained the exchange rate of its currency within a fixed value in terms of gold. However, in 1971 the United States unilaterally terminated convertibility of dollars to gold. This action let the U.S. dollar became the international currency for the states which had signed the agreement.
Since that time dollars were printed at full speed. Their purchasing power is provided not only with US GDP, but with GDP of all countries. However, all those countries can’t control how many dollars can be issued. This right belongs to the US Federal Reserve.
The Federal Reserve is a company owned by 20 private American banks. Their main business is to issue international money. The owners have spent a lot of time and efforts to get that successful business. They initiated the World Wars, the Bretton Woods system, and, of course, the creation of the Federal Reserve in 1913 after the financial crisis of 1907.
So, the group of private persons has the right to issue dollars and decides how much money to issue and when to issue. Since 1971 to 2008, the total volume of dollars has increased in dozens of times! Their sum exceeds the quantity of goods in the world in many times.
Such amazing situation is very beneficial for the Federal Reserve owners as well as for the USA. The GDP of this country is just 20%, but they consume 40% of all goods produced in the world. So who pays for the rest of goods?
The answer is simple – all other countries. They sell the USA their goods and receive dollars that have no fixed value in terms of gold, as you remember. That’s why we can see the redistribution of the world’s wealth for benefit of the USA.
Why does the Federal Reserve need to issue more money than it is necessary for the proper functioning of the world’s economics? Because it gives them fantastic opportunities to make profit. It’s the main aim of the Federal Reserve and the main reason why this company was launched. For this nearly virtual money they can buy real property such as companies, factories, gold, etc.
The part of this money is spent for the support of the U.S. The Federal Reserve system can be described as a “mind” while the USA is its “body”. So the company spends money to make this body strong (the army) and happy (goods).
That’s why the Federal Reserve provides “affordable” consumer credit, including mortgages. You have not earned much but you can buy a large house or a posh car. Everything is possible!
Of course, you will need to work for over 30 years to pay off your debt. But the Federal Reserve owners have always known that the American consumers won’t need to fulfill their financial obligations because of the dollar default in future.
No, don’t think that the Federal Reserve owners take care of American consumers. They just make profit. The U.S. is their body, but they can create as many bodies as they want. It is just the question of time and money.
The over-issuance of dollars could ruin the goods market and lead to the depreciation of money. Trying to avoid it, the Federal Reserve owners created several very effective ways to freeze a part of dollars. First of all, they took advantage of the stock market. Its main focus was shifted on the cost of shares. The real income of the companies didn’t matter any more!
As you know, a lot of businessmen spent their real money on shares, so their dollars became virtual. Investment firms reported years of strong gains, making eye-popping returns seem more plausible. Why do you need to work when you can just buy shares?
However, the stock market is like a bank without any assets! The real price of shares depends on the income of the companies. This amount is much smaller that than the cost of shares on the stock market. So don’t believe that somebody can save the stock market now. You will need to issue trillions of dollars to cover all expenses, but it means that the dollar will weaken. Do you think that the Federal Reserve needs it?
The second option to lower the over-issued volume of dollars is… oil! It is nearly the only product that will be bought in any case. People will eat less, but they will buy gasoline for their cars! The high price of oil helps to freeze the money of ordinary people and doesn’t let the dollar weaken. In addition, the high price of oil causes a high price of all other goods and services, so people will spend more.
Do you want to know the real reason of the war in Iraq? No, it is not the control of oil resources. Americans didn’t want Iraq oil to be sold on the market. It led to the high prices of oil. That’s simple, right?
Don’t blame the Federal Reserve owners. These clever people created fantastic opportunities to influence on our world. But they are not God, so they don’t need to take care about other people. They just want their business to grow.
If you don’t believe in the world conspiracy now, let’s analyze a very interesting situation. Do you know who determines the prices of gold? The members of the Rothschild family. They gather in their London house, analyze the supply and demand, and decide how much gold will cost.
Five or six years ago, for example, the Rothschild family lowered the price of gold to just $250 per troy ounce. In that time you could read numerous articles telling that it was necessary to get rid of gold because its prices would be even lower. But when the Swiss and English banks sold about a half of their gold reserves, the price went up to nearly $1000 per ounce.
Can you imagine what it means to determine the price of gold for the whole world? The Federal Reserve is in the similar situation. However, they have much more power.
We have some suggestions what will happen in the world in the nearest future. Now we see a perfect example of “a controlled financial meltdown”. Everything is going on according to the plan. As you know, any financial bubbles tend to burst, so it’s time for the stock market to collapse.
This situation could occur 2-3 years later, but in this case the process would be uncontrolled. Now, when everything is planned, the Federal Reserve has an excellent opportunity to buy the most profitable and the most important companies for nearly nothing!
How did they manage to prepare the collapse? Of course, it was not easy. This process involved several steps. Do you remember that in the mid-90s the bank secrecy nearly disappeared? It was connected with numerous tax crimes. After that it became possible to find out about all money transactions.
The next step is September, 11 2001. Nobody believes in mythical Ben Laden anymore. This dreadful act of terrorism was designed to solve a wide range of problems. The most important of them is the introduction of the law designed to prevent terrorism financing.
This law lets blocking any sum of money on a bank account for any period of time. There is no need to have any judicial decision. Just say that you believe that the money is aimed to support terrorism. You don’t have to prove it! So this law is a good tool to control the situation during the planned financial meltdown.
As a result, we see the collapse of the stock market and the following problems in building, chemical, automobile and other industries. Just read the news headlines!
How did we get to this point? The stock market collapse caused the lowering of liquidity of many banks. They preferred to invest clients’ money to the stock market, and as a result they lost significant amounts of money.
In turn, banks stopped to give credit to companies. The similar situation was in 1929 – “Great depression”. If this scheme worked in that time, why can’t it work now?
Without credit, many companies simply can’t work! So the Federal Reserve owners can buy profitable companies. However, they can’t do it directly. Instead, the Federal Reserve uses the state governments. They will offer new lines of credit for the companies’ assets or shares.
When all companies take credit, the financial situation in the world will become really bad. The price of oil will go down. Consumers won’t buy as many goods as before. The companies won’t be able to pay off their debts and as result they will have a new owner.
We will see a new world, a new financial system. After that, it is possible to speak about the US dollar default. We can’t avoid it because the over-issuance of dollars is like a giant financial pyramid. It let its creators earn a fantastic amount of money, and after that it’s time to take advantage of another financial scheme, of new Bretton Woods system. It’s impossible to do with the old currency – the dollar. As we have already mentioned above, their sum exceeds the quantity of goods in the world in many times.
So sooner or later a default will happen. Many people will ask “Why did it happen? Who is responsible for it?” It’s not good for the Federal Reserve – people can find answers to these questions! That’s why the better variant to cause a default with the help of terrorists. Imagine a great act of terrorism in Israel or in the U.S., with a nuclear weapon and thousands of victims.
Of course, these are suggestions – just suggestions! But this situation can become real. Keep in mind that we deal with a group of genius people who customized our world. It is necessary to understand their profession to predict their future actions. They are book-keepers. The main thing that matters for them is money, income, and bank transactions. Kindness and humanism are not the words from their professional lexicon.
What country has a nuclear weapon and might sell it to terrorists? Our answer is Pakistan. The political situation there is dangerous. Benazir Bhutto is killed. Now the president of Pakistan is Zardari, her husband. This person is able to perform any anti-American actions.
The new act of terrorism will result into a war with millions or victims. Of course, the USA will want to “punish” the country. After that it is natural to expect a default. The U.S. can say – “You know, we have taken all possible measures to save the dollar - we held international summits, punished greedy bankers, invested money into the stock market – but it was impossible.”
We have some other ideas how the default can happen. For example, the USA can just announce that the dollar can’t stay the international currency during the world financial crisis. Otherwise, their economics will be ruined. And all mass media will tell us that it’s the only way out for the USA to survive. This scenario of default is cheaper than the previous one. The Federal Reserve will need to pay only to mass media.
What will happen after that? All profitable companies will be in the hands of a small group of people. Real companies for virtual money. An excellent deal, right?
We don’t want to scare people. However, the present day financial and political events make us start to think – what is going on? Just look around and you will see that somebody is playing with our lives and our businesses. If not the Federal Reserve, than who?
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