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Central banks and sovereigns arses getting kicked hard first? So be it!

January 4, 2012

Noted:
* More bankers face US tax evasion charges
* Benjamin Fulford: “The Year of the Fire Dragon has started, expect big changes”

There’s no difference really whether one is a central bank, a sovereign or a private bank. As long as one has the power to control the supply of money and consequently the influence on peoples’ lives for the worse through its value, one is a bankster! Like I said in my New Year greetings … let 2012 be the year that the banksters’ arses get kicked harder … so let’s have them happen faster and more furious to boot, yay!

Nations Ponder Their Escape From Debt

(An excerpt from Bob Chapman’s weekly publication)

By Bob Chapman’s The International Forecaster

December 31 2011: Fighting downgrading ratings, ratings agencies suddenly doing their jobs, quantitative easing not working in UK, US Fed operates around the world with no authority, and Fed should be ended, Bernanke subterfuge, a ponzi scheme for more debt.

Public institutions worldwide are fighting ratings downgrades foremost of which is France, the US and, of course, sovereigns and banks worldwide. Miracles of miracles finally the rating agencies are doing their jobs. The caper they pulled in collusion with Wall Street in rating mortgage securities should have put them all in jail for life. We’ll call these efforts makeup time for their previous sins, which they never were prosecuted for. The complaint is their methodology is unreliable. We can assure you they know exactly what they are doing. The French want them to cease and desist. That is not going to work, because the French government and banks have very serious solvency problems. Central bankers and sovereigns always believe they are above the law. Eventually they all pay the price of greed and corruption.

Early in December the BIS informed the UK’s policy of quantitative easing, the creation of money and credit, was not working. The US central bank, the Federal Reserve, has been doing the same thing for 12 years, so we ask why has not the BIS cited them as well? Horrors of horrors just two weeks ago the ECB, European Central Bank, decreed that they were going to implement QE as well. We ask, why no BIS comment regarding the Fed and the ECB? Might it tend to bring both systems down? All of these central banks and sovereigns playing this game know that it won’t work, but they play the game anyway buying time to hope to create an opening to bring about a change in direction, which never comes. That is why we have well planned wars to distract the people from the real economic and financial problems and, of course, to relieve population problems. If you doubt us we refer you to many of the writings and statements regarding population control via Foreign Affairs, the literary organ of the CFR, the Council on Foreign Relations, or the Trilateral Commission, along with their statements as well. We might add Obamacare, which will be implemented in one year, and the “death panels”, which will become part of your life and death. Wait until you are told that your beloved mother and father’s illnesses will cost too much to treat and they will be allowed to die. We are not meandering and you cannot make such stuff up. These are the thoughts and actions of our leadership, which control your lives from behind the scenes.

The euro zone may have publicly made it clear it is their show and that they need no assistance from, of all places, the Bank of England nor the Federal Reserve, yet they mimic them, now having implemented their own QE, accompanied by $1 trillion in swap assistance from the Fed. We see the words and ideas, but the reality is that behind the scenes the Fed is pulling the strings. You judge them by what they do not by what they say. In view of their newfound responsibilities we still find the rating agencies far behind the curve, due to pressure from banking and the political structure. Keeping that in mind investors have to rely on their own research and not that of an intimidated rating system. Besides rating changes are discounted months in advance by other professionals.

All of the events you have seen in the UK, US and Europe were predicted by us. The revelations of the past year were yesterday’s news. All three entities have committed themselves to the furtherance of hanging paper whenever and wherever they can. We saw the euro crisis before it happened, so it was of no surprise to readers. The specialty media and the financial sector completely missed the boat. All three entities have proven themselves incapable of any plan or initiative of solving their problems. They just keep the game going knowing the result and refuse to purge the system, because it will rob them of their power base. This is why heretofore the PTB have not allowed any attacks verbally on their central banks, with the exception of the US. Over the next three years that will change and the Fed’s monetary work will be passed back to the US Treasury. If Ron Paul is elected it will probably happen in 2013. An end to “The President’s Working Group on Financial Markets” will precede it. That will end official market manipulation and kill the control that has been exercised by the owners of the Federal Reserve for the past 100 years. The termination of both entities will be important beyond belief.

We mention over and over again that the Federal Reserve has been in part bailing out Europe. This is the second time they have done this in concert with other central banks. Last time it was $500 billion in swaps and this time we are told that the swap figure is $1 trillion. We suppose we will find out in time. The Fed, which can lend directly, goes through the ECB, because they will guarantee the return of the funds, not only to the Fed, but also to other supposedly active lenders such as the Bank of Japan, the Bank of Canada, the Bank of England and the Swiss National Bank. The lenders are charging .50% to lend the funds. The Fed and other central banks are trying to obscure what they are doing after the revelations pertaining to massive lending by the Fed previously as exposed by the GAO under Dodd-Frank. The currency swap is not technically a loan and does not show up on the Fed’s books as a loan. By the ECB borrowing dollars from the Fed it keeps the ECB from having to print more euros. This way the ECB lends dollars it has borrowed to its member banks. These banks are under severe pressure by their governments to purchase new and outstanding government debt. There is no doubt this will happen, but in what amounts we cannot say. Thus, we see $638 billion the ECB has in hand plus perhaps $1 trillion from the Fed and its helpers, which is being served up to 523 banks. We then have to remember that this is a fractional banking system, which historically lending at 9 to 1 is prudent. If used that would be some $15 trillion, certainly enough for Europe to survive on. As you can see, the funds available could be endless.

Also, as you can see all is not the way it seems to be. 99.9% of Americans do not know what is going on and we’d be surprised if 35% of Europeans understand. In the US there has been a media blackout and in Europe very light coverage. The banks simply do not want anyone to know what they are up too. As we display these numbers it should be kept in mind that all these countries are loaded with unpayable debt, so what they are doing is going further into debt to pay off existing debt. This approach is generally recognized as a Ponzi scheme – we might also add all the derivative exposure these banks and government have.

The privately owned Central Bank of the US, the Federal Reserve, has absolutely no authority to bailout Europe, which they have been doing for three years and no one says a thing about it. Less than a month ago, Fed Chairman Bernanke said he has no authority to bailout Europe and he had no intention of doing so.

This is why the Fed needs to be terminated and its functions returned to the US Treasury. The Fed and other central banks running the world and they shouldn’t be. Mr. Bernanke has promised more transparency and two weeks later we get more subterfuge. There is no question Ron Paul and we have been right for over 50 years. Elect Ron Paul and get rid of the Fed.

This past week the ECB balance sheet soared to $3.55 trillion via new lending. The increase in bank lending by the ECB rose $278 billion to $1.143 trillion. That was at a 1% interest rate.

One Comment
  1. ewoon,

    Just to share this…

    PwC Hit With Record Fine For UK Audit Failures – UK Regulators Said PwC Was Let Off With A Lesser Fine Owing To Its Co-Operation In The Probe – By Reuters (6/1/12) PDF

    Reuters Friday, 06 January 2012 21:19

    Top auditor PwC has been fined a record £1.4 million (RM7 million) in Britain for wrongly telling local regulators for seven years that JPMorgan Securities was keeping client money safe.

    The successful case brought by the Accountancy and Actuarial Discipline Board (AADB) is the latest sign of how regulators are taking a harder line on auditors, seen by policymakers as being too soft on banks in the run-up to the financial crisis.

    The AADB said PricewaterhouseCoopers (PwC), one of the world’s “Big Four” auditors, which check the books of nearly all blue-chip companies, admitted it failed to obtain “sufficient appropriate evidence” to report that JPMorgan Securities complied with strict client money rules spanning several years.

    Most of the client money from futures and options trading was being daily “swept” into interest-bearing, non-segregated accounts overnight at JPMorgan Chase bank, the firm’s parent, the AADB said.

    In June 2010 the UK Financial Services Authority (FSA) slapped a record £33.32 million fine on JPMorgan Securities for failing to keep client money separate at all times from the firm’s money over a seven-year period to July 2009.

    Sums ranging between US$1.9 billion (RM5.9 billion) and US$23 billion of client money were being held in unsegregated accounts that would have been at risk of loss had the lender become insolvent, the FSA said at the time.

    Today the AADB said an independent tribunal found that PwC’s misconduct was “very serious.”

    The tribunal would have fined PwC £2 million but reduced the penalty because the auditor had co-operated. The tribunal also made PwC pay the AADB’s costs in investigating and prosecuting the case.

    The AADB had proposed a £6 million fine, while PwC had suggested to the tribunal the fine should be at the lower end of a £500,000 to £1 million range. “It’s an appropriate penalty, given the framework the tribunal had to deal with,” Tom Martin, AADB executive counsel, told Reuters.

    Sanctions are being reviewed, however, as part of updating the Financial Reporting Council, the regulatory umbrella group to which the AADB belongs.
    “We think there may be a time for debate about the level of sanctions for firms the size of the Big Four,” Martin said.

    The tribunal appeared to call for further action.

    “We wish to comment that we have been surprised and concerned that no partner at PwC has been named in relation to this matter or proceeded against by the (AADB’s) Executive Counsel,” the tribunal said in its ruling.

    Martin said the AADB planned to take no further action against PwC in the JPMorgan Securities case.

    Barclays was fined £1.1 million in January last year for client money rules breaches, and the AADB is probing PwC’s role as auditor.

    PwC chalked up gross revenues of US$29.2 billion in the financial year that ended June 30, 2011.

    The complaint against PwC focuses on its reports to the FSA for the seven years ended December 31, 2001 to December 31, 2008. The segregation error came to light on July 8, 2009.

    The safety of client money was thrust into the spotlight in September 2008 when US bank Lehman Brothers went bust. The AADB is probing auditor Ernst & Young’s role in Lehman’s failure to hand back client money in Britain.

    Following Lehman’s demise, the FSA set up a team of nearly 40 staff to monitor client money rules, and its record fine on JPMorgan Securities is one of seven fines for breaches.

    Britain’s biggest fine for an auditor had been £1.2 million pounds in 1999, also for PwC, in relation to the failings of Coopers & Lybrand, which later merged with Price Waterhouse to form PwC, in its work on the accounts of the late Robert Maxwell’s group of companies.

    You be the judge.

    Shalom.

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