Former heads of failed bank Kaupthing receive the heaviest jail sentences for financial fraud in Iceland’s history


By Staff

  • Convicted From left, chairman Sigurður Einarsson, CEO Hreiðar Már Sigurðsson, CEO of Luxembourg branch Magnús Guðmundsson and investor Ólafur Ólafsson. Photo/Vísir.is

The Supreme Court of Iceland sentenced today four former heads of failed bank Kaupthing to jail for their role in market manipulation of share prices in Kaupthing bank in 2008.

Former CEO, Hreiðar Már Sigurðsson, received a five-and-a-half year long sentence, which is the heaviest sentence for financial fraud in Iceland’s history.

Former chairman, Sigurður Einarsson, received a four-year sentence, Magnús Guðmundsson, former CEO of the bank’s Luxembourg branch, got four-and-a-half years and so did investor Ólafur Ólafsson, who was a leading shareholder in the bank.

The four men were convicted for conspiring to try to manipulate Kaupthing’s share price by claiming that sheikh Mohammed Bin Khalifa al-Thani, a Qatar royal, had risked his own money by buying a 5% stake in the bank for 155 million UK pounds in September, only weeks before the bank collapsed in October 2008.

At the time of the investment the bank’s chairman, Sigurður Einarsson, told English newspaper the Guardian that the bank’s strategy of increasing the diversity of its shareholder base had proved “fruitful”.

However it later surfaced that it was the bank itself that was indirectly buying the shares and now the four men who conceived that strategy are going to jail for a long time.

Kaupthing was one of Iceland’s big three banks that crashed in the autumn of the 2008. The other two were Glitnir and Landsbankinn. All three are still in winding-up proceedings.

http://icelandmag.com/article/former-heads-failed-bank-kaupthing-receive-heaviest-jail-sentences-financial-fraud-icelands

Ed. Note: Excuse me, while I applaud Iceland for jailing the banksters – meager sentences of only 4-5 yrs are a slap on the hand when taking into consideration the number of lives that were destroyed when Iceland’s three biggest banks failed. In addition to light sentences, if Iceland’s penal system is like the U.S., they’ll do time at minimum security facility and if they’re good boys and behave themselves, they’ll get out early for good behavior.

To deter future corruption, the justice system must deliver sentences that fit the crime…period. These bozo’s will likely get out in 2-4 yrs and be back to living the life of Reilly on money stashed in foreign accounts.

On the bright side, Iceland sets a precedent – the time to jail the banksters is long overdue.

Prepare-We are at the Verge of Collapse Says Jonathan Cahn Author of Mystery of the Shemitah


Best-selling author Jonathan Cahn says you better get ready for “a great shaking.” Cahn, whose new book titled “Mystery of the Shemitah,” says, “The Bible says a prudent man prepares. What do you do? I am not a financial expert, but I will speak for myself . . . in general, I would not be putting my stock in the stock market or have things attached to it. . . . You should also have essentials in store so if there is a collapse of not only markets but of infrastructure and services, and these things should break down, that you would be okay for this time period. I am not a survivalist. I am more of a revivalist. . . . We say things will always work perfectly, and I don’t believe things will always work perfectly. I believe we are at the verge of collapse.”

How do you get ready for this collapse? Cahn, who is a Christian minister, says, “The first thing is if you are listening to this and you are not right with God, get your life right because America is rapidly accelerating into a moral collapse and a spiritual collapse.”

Join Greg Hunter as he goes One-on-One with Jonathan Cahn, best-selling author of “The Harbinger,” and “Mystery of the Shemitah.” – http://usawatchdog.com/great-shaking-…

Zero Hedge – Ten Banks, Including JPM, Goldman, Deutsche, Barclays, SocGen And UBS, Probed For Gold Rigging


zero-hedge-dot-com-red

Submitted by Tyler Durden on 02/23/2015
No matter how many times the big banks are caught red-handed manipulating precious metals, some failed former Deutsche Bank prop-trader (you know who you are) will take a vociferous stand based on ad hominem attacks and zero facts that no, what you see in front of you is not precious metal rigging at all but a one-off event that has nothing to do with a criminal banking syndicate hell bent on taking advantage of anyone who is naive and dumb enough to still believe in fair and efficient markets.

The last time this happened was in November when we learned that “UBS Settles Over Gold Rigging, Many More Banks To Follow”, and sure enough many more banks did follow, because in Europe, where the stench of gold market manipulation stretches far beyond merely commercial banks, and rises through the central banks, namely the BOE and ECB, culminating with the Head of Foreign Exchange & Gold at the BIS itself, all such allegations have to be promptly settled or else the discovery that the manipulation cartel in Europe involves absolutely everybody will shock and stun the world, which heretofore was led to believe that such things as gold market (not to be confused with Libor or FX) manipulation only exist in the paranoid delusions of a few tinfoil fringe-blogging lunatics.

However, as usually happens, someone always fails to read the memo that when it comes to gold-market manipulation one must i) find nothing at all incriminating if one is a paid spokesman for the entities doing the manipulation such as former CFTC-sellout Bart Chilton or ii) if one can’t cover it, then one must settle immediately or else the chain of revelations will implication everyone.

This time, that someone is the US Department of Justice, which as the WSJ just reported, is investigating at least 10 major banks for possible rigging of precious-metals markets. The DOJ is shockingly doing so “even though European regulators dropped a similar probe after finding no evidence of wrongdoing, according to people close to the inquiries.” Of course, the reason why said probe was dropped in Europe is because it would have implicated virtually the entire trading desk at the biggest and most important European bank: Deustche Bank, as well as the biggest bank in Switzerland, UBS and UK’s own Barclays, reveal a manipulation cartel rivaling even that of Libor. And once traders at the commercial banks turned sides and squealed for the prosection, well then it would be the central banks’ turn next. Which is why it was imperative to bring this investigation to a quiet end.

But not in the US.

According to the WSJ, “prosecutors in the Justice Department’s antitrust division are scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodity Futures Trading Commission has opened a civil investigation, these people said. The agencies have made initial requests for information, including a subpoena from the CFTC to HSBC Holdings PLC related to precious-metals trading, the bank said in its annual report Monday.

HSBC also said the Justice Department sought documents related to the antitrust investigation in November. The two probes “are at an early stage,” the bank added, saying it is cooperating with U.S. regulators.

Who is involved in this latest gold-rigging scandal? Why everyone! … which makes it immediately obvious why the European regulator had to promptly cover up the whole affair. Under scrutiny are Bank of Nova Scotia , Barclays PLC, Credit Suisse Group AG , Deutsche Bank AG , Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Société Générale SA, Standard Bank Group Ltd. and UBS AG , according to one of the people close to the investigation.

Robert Hockett, a law professor at Cornell University, said it is “not particularly surprising” that the Justice Department is plowing ahead despite the decision by European regulators. Recent scrutiny of big banks’ operations in the physical commodities markets and criticism of the Justice Department’s financial-crisis track record make it “quite understandable” that the agency would investigate allegations of precious metals price-rigging.

Last year, the FCA fined Barclays £26 million ($40.2 million) for lax controls after one of its traders allegedly manipulated the gold fix at the expense of a client.

Swiss regulator Finma settled last year allegations of foreign-currency manipulation with UBS. The regulator said it found “serious misconduct” among precious-metals traders at UBS, including “front running,” or trading ahead of, the silver-fix orders of one client. A spokeswoman for UBS, which said at the time that it “instituted significant cultural and compliance changes,” declined further comment.

You mean to say that the banks that were for decades rigging Libor… and FX… and bonds… and stocks… oh, and gold, were let go with a slap on the wrist and a promise to “change their ways” and not to do it again? Yup, that’s exactly right.

So what happens next? Well, we finally will find just how much of a banker-controlled muppet the so-called US attorney general truly is. Recall that a week ago he gave his subordinates 90 days to being cases against individuals for their role in the financial crisis.

Well here is the perfect opportunity. Should Holder let this latest mass criminal ring go without any incarecration, one can officially stick a fork in the US justice system, which is meant for everyone, but the rule-flouting bankers who can clearly get away with absolutely anything.

As for the rigging in the gold market, rigging which begins with the lowliest prop-traders at Deutsche Bank and involves every single central bank and High Frequency trading outfit and is now a proven fact, we have explained over the years and thousands of times just how to end it all, so instead of wasting readers’ time on this topic yet again, here are just two very simple solutions how to fix this one particular market:

@StockCats

all trading in “paper” gold should cease immediately and all contracts be settled in physical for true price discovery
3:53 PM – 24 Feb 2015
@StockCats

audit Fort Knox
4:08 PM – 24 Feb 2015
So simple, even the most corrupt US Attorney General caveman can do it.

http://www.zerohedge.com/news/2015-02-23/ten-banks-including-jpm-goldman-deutsche-barclays-socgen-and-ubs-probed-gold-rigging

ZeroHedge ~ HSBC Bank: Secret Origins To Laundering The World’s Drug Money


GREAT find Andre, thanks for the link…mahalo!

Tyler Durden's picture

Submitted by the Drug Trafficking & Narco-Terrorism Department of GreatGameIndia

HSBC Bank : Secret Origins To 26/11 Mumbai Attacks

#SwissLeaks what the media has termed it is a trove of secret documents from HSBC’s Swiss private banking arm that reveals names of account holders and their balances for the year 2006-07. They come from over 200 countries, the total balance over $100 billion. But nowhere has the HSBC Swiss list touched off a more raging political debate than in India.

That’s why to obtain and investigate the Indian names, The Indian Express partnered in a three-month-long global project with the Washington-based International Consortium of Investigative Journalists (ICIJ) and the Paris-based Le Monde newspaper. The investigation revealed 1,195 Indian HSBC clients, roughly double the 628 names that French authorities gave to the Government in 2011. The new revelation— published as part of a global agreement — is expected to significantly widen the scale and scope of the ongoing probe by the Special Investigation Team (SIT) appointed by the Supreme Court.

For years, when banks have been caught laundering drug money, they have claimed that they did not know, that they were but victims of sneaky drug dealers and a few corrupt employees. Nothing could be further from the truth. The truth is that a considerable portion of the global banking system is explicitly dedicated to handling the enormous volume of cash produced daily by dope traffickers.

Contrary to popular opinion, it is not “demand” from the world’s population which creates the mind destroying drug trade. Rather, it is the world financial oligarchy, looking for massive profits and the destruction of the minds of the population it is determined to dominate, which organized the drug trade. The case of HSBC underscores that point. Serving as the central bank of this global apparatus, is HSBC.

2009 CIA Map of Drug Trade Routes

* * *

East India Company Origins

The opium trade began in the early 1700s as an official monopoly of the British East India Company, which conquered India, and ran it on behalf of the British Crown and the financiers operating through the City of London. Indian-grown opium became a key component in the trade for tea and silk in China.  The East India Company had a thriving business selling British textiles and other manufactured products in India, and selling Chinese silk and tea in Britain. But the Company ran into problems with the opium end of the trade. The influx of opium caused major problems for China, and led the Emperor to issue an edict in 1729 prohibiting opium consumption. Then, in 1757, the Emperor restricted all foreigners and foreign vessels to a trading area in the port city of Canton. A stronger edict in 1799 prohibited the importation and use of opium under penalty of death.

None of this stopped the British from continuing to flood China with opium, creating millions of addicts, but it did cause the East India Company to protect its tea and silk trade by shifting its Chinese opium operations to nominally independent drug runners who bought opium legally from the East India Company in Calcutta, and smuggled it into China. The most prominent of these drug-running firms was Jardine Matheson & Co. It was founded in 1832 by two Scotsmen, William Jardine and James Matheson.  Jardine had been a ship’s surgeon with the East India Company, while Matheson was the son of a Scottish baronet. The firm today is controlled by the Keswick family. In 1839, the Chinese Emperor launched an anti-opium offensive, which included the confiscation of all opium stocks in the hands of Chinese and foreign merchants. The merchants put up a fight, but were ultimately forced to concede, turning in their opium stocks after being indemnified against losses by British officials.

In response, however, the British launched a propaganda campaign against China, accusing it of violating Britain’s right to “free trade.” Britain sent its fleet to China, to force the Chinese to capitulate to the opium trade. The action, known as the First Opium War, resulted in the Treaty of Nanking in 1842, under which China not only capitulated to the opium trade, but also agreed to pay reparations to the opium runners and gave the British control of the island of Hong Kong. However, the treaty did not specifically legalize opium, so the British launched a second Opium War, which resulted in the 1856 Treaty of Tientsin, which legitimized the opium trade and opened China up to foreigners even more.

As the opium and other trade with China expanded, Britain’s new territory of Hong Kong became a major imperial commercial center. The opium dealers gathered together to form a bank, the Hongkong and Shanghai Bank, as the financial flagship of the British opium trade. Over time, the bank—now known as HSBC—would extend its reach into the drug fields of the Middle East and Ibero-America, as befitting its role as the financial kingpin of Dope, Inc.

Role of Secret Societies

In 1783 Lord Shelbourne launched the Chinese opium trade with Scottish merchants from the East India Company and members of the House of Windsor-allied Knights of St. John Jerusalem.

Shelbourne’s chief propagandist was Adam Smith who worked for East India Company, which emerged from the slave-trading Levant Company and later became known as Chatham House, home to the powerful Royal Institute for International Affairs (RIIA). In 1776 the high seas pirate Adam Smith wrote Wealth of Nations, which became the bible of international capitalism.

In the Far East the British organized the Chinese Triad Society, also known as the Society of Heaven and Earth, to smuggle their opium.  Beginning in 1788 the Freemason Grand Lodge of England established lodges in China, one of which was the Triad Society.  Another was known as the Order of the Swastika.

In 1839 William Jardine- a Canton-based opium trafficker- steered Britain into the first Opium War after Chinese officials confiscated his stash. The second Opium War lasted from 1858-1860.  Lord Palmerston commanded both expeditions for the Brits.  He was also the High Priest of Scottish Rite Freemasonry in the British Empire.

Throughout the 19th century the British families of Matheson, Keswick, Swire, Dent, Inchcape, Baring and Rothschild controlled the Chinese heroin traffic.  The Inchcape’s and Baring’s Peninsular & Orient Steam Navigation Company (PONC) transported the dope around the world.

To the US West Coast, the families brought Chinese coolies to build JP Morgan’s railroads, slave laborers who were kidnapped (shanghaied) by the Triads.  The Triads came along too, setting up opium dens in San Francisco and Vancouver and using a network of Chinatowns as a channel for heroin.  This network exists today.  To the US East Coast the families brought African slaves and cotton.  These same families built plantations and became kings of southern cotton on the backs of shanghaied Africans.

The American families Perkins, Astor and Forbes made millions off the opium trade.  The Perkins’ founded Bank of Boston, which is today known as Credit Suisse First Boston.  The Perkins and Morgan families endowed Harvard University.  William Hathaway Forbes was a director at Hong Kong Shanghai Bank shortly after it was founded in 1866.  John Murray Forbes was the US agent for the Barings banking family, which financed most of the early drug trade.  The Forbes family heirs later launched Forbes magazine. Steve Forbes ran for President in 1996.  John Jacob Astor invested his opium proceeds in Manhattan real estate and worked for British intelligence.  The Astor family home in London sits opposite Chatham House.

These families launched the Hong Kong Shanghai Bank Corporation (HSBC) after the second Opium War as a repository for their opium proceeds.  HSBC, a subsidiary of the London-based HSBC Holdings, today prints 75% of Hong Kong’s currency, while the British Cecil Rhodes-founded Standard Chartered Bank prints the rest.  HSBC’s Hong Kong headquarters sits next to a massive Masonic Temple.

Freemasonry is a highly secretive society, making it an ideal vehicle for global drugs and arms trafficking.  According to 33rd Degree Mason Manly Hall, “Freemasonry is a fraternity within a fraternity – an outer organization concealing an inner brotherhood of the elect…the one visible and the other invisible.  The visible society is a splendid camaraderie of ‘free and accepted’ men enjoined to devote themselves to ethical, educational, fraternal, patriotic and humanitarian concerns.  The invisible society is a secret and most august fraternity whose members are dedicated to the service of an arcanum arcandrum (sacred secret).”

Wealth derived from selling this Chinese opium during British colonial rule, helped build many landmarks on India’s west coast. The Mahim Causeway, The Sir JJ School of Art, David Sassoon Library and Flora Fountain, landmarks in modern Mumbai, were built by prominent Parsi and Jewish traders from profits made by a flourishing opium and later cotton trade with China.

Prominent families from Mumbai’s past, names that adorn today’s famous institutions such as the Wadia’s, Tata’s, Jejeebhoy’s, Readymoney’s, Cama’s and Sassoon’s sold opium to China through the British. By the end of the nineteenth century, when the opium trade went bust, cotton from India’s western state of Gujarat, which had already developed strong trade links with Canton profited. The Paris’s ploughed profits from the trade with the Chinese back into India, setting up several schools, hospitals and banks. Historical records prove that some of India’s prominent Parsi traders at the time, were founders of the Hong Kong and Shanghai Banking Corporation (HSBC) founded in 1865. For a detailed report read Rothschild colonization of India.

It is this deadly opium empire that Gandhiji was very much conscious about and spoke out against for which he was jailed in 1921 by India’s British rulers for “undermining the revenue”. Having seen generations of Chinese youths rendered docile and passive Gandhijis was concerned over opium and its deadly effects on India which is clear from his letters. These opium production activities ran until 1924 in India and were stopped with the heroic efforts of Mahatma Gandhi who first agitated to remove opium production from India and destruction of China using Indian soil. Finally the British transferred the entire production to Afghanistan in 1924 handing the production to southern Afghani tribals which after 90 years became the golden crescent of opium production. Though the production is in the hands of Afghan tribals the distribution finance market control is still exercised by the same old British business houses or their proxies.

Afghan Opium for Bankers and Terrorists

There is a general impression that Afghanistan has always been the center of opium production. In fact, it has not. Prior to the Soviet invasion in 1979, opium production in Afghanistan was less than 1,000 tons; that grew to 8,200 tons (based on conservative UN Office on Drugs and Crime/UNODC figures) in 2008. Throughout this period, Afghanistan was in a state of war. Following the Soviet invasion, the anti-Soviet powers, particularly, the US, UK, and Saudi Arabia, began generating larger amounts of drug money to finance much of the war to defeat the Soviets. Since 1989, after the Soviet withdrawal, there has been an all-out civil war in Afghanistan, as the US-UK-Saudi-created mujahideen dipped further into the opium/heroin money.

What was happening in Afghanistan during this period that caused opium production to soar to those levels? History shows that the US invasion in 2001 came close to wiping out the Taliban forces; the Afghan people, at least at that point in time, because of the Pakistani-Saudi links to the Taliban and the oppressive nature of the Wahhabi-indoctrinated regime, supported the invading American and NATO forces. That began to change in 2005.

The year 2005 is important in this context, since one of the most damning parts of the US Senate report details HSBC’s relationship with the Saudi-based Al Rajhi Bank, a member of Osama bin Laden’s “Golden Chain” of important al-Qaeda financiers. The HSBC-Al Rajhi relationship has spanned decades; perhaps that is why, even when HSBC’s own internal compliance offices asked that it be terminated in 2005, and even when the US government discovered hard evidence of Al Rajhi’s relationship with terrorism, HSBC continued to do business with the bank until 2010.

In fact, the report said, Al Rajhi’s links to terrorism were confirmed in 2002, when US agents searched the offices of a Saudi non-profit US-designated terrorist organization, Benevolence International Foundation. In that raid, agents uncovered a CD-ROM listing the names of financiers in bin Laden’s Golden Chain. One of those names was Sulaiman bin Abdul Aziz Al Rajhi, a founder of Al Rajhi bank.

Recently an operation by German Customs official revealed that the British Queen financed Osama Bin Laden. German officials in an operation raided two containers passing through Hamburg Port and seized 14,000 documents establishing that Osama bin Laden was funded by UK Queen’s bank Coutts, which is part of the Royal Bank of Scotland.

HSBC & 26/11 Mumbai Attacks

Why did HSBC not terminate its links with the Al Rajhi in 2005? The answer lies in what was then put in place in Afghanistan to generate large amounts of cash. When it comes to opium/ heroin and offshore banks, Britain rules supreme. In 2005, poppy fields in southern Afghanistan began to bloom, and it became evident to the bankers and the geo-politicians of Britain and the US that cash to support the financial centers and the terrorists could be made right there.

It was announced on Jan. 27, 2006 in the British Parliament that a NATO International Security Assistance Force (ISAF) would be replacing the US troops in Helmand province as part of Operation Herrick. The British 16 Air Assault Brigade would make up the core of the force. British bases were then located in the districts of Sangin, Lashkar Gah, and Gereshk.

As of Summer 2006, Helmand was one of the provinces involved in Operation Mountain Thrust, a combined NATO/Afghan mission targeted at Taliban fighters in the south of the country. In July 2006, the offensive essentially stalled in Helmand, as NATO (primarily British) and Afghan troops were forced to take increasingly defensive positions under heavy insurgent pressure. In response, British troop levels in the province were increased, and new encampments were established in Sangin and Gereshk. In Autumn 2006, some 8,000 British troops began to reach “cessation of hostilities” agreements with local Taliban forces around the district centers where they had been stationed earlier in the Summer, and it is then that drug-money laundering began in earnest.

This drug money, at least a good part of it, is generated in this area with the help of Dawood Ibrahim, who also played a role in helping the Mumbai attackers by giving them the use of his existing network in Mumbai. At the time, Ibrahim worked on behalf of the British, and ran his operation through the British-controlled emirate of Dubai. Drugs came into Dubai through Dawood’s “mules,” protected by the Pakistani ISI and British MI6; the dope was shipped in containers which carried equipment sent there for “repair” from Kandahar and elsewhere in southern Afghanistan. British troops controlled Helmand province, where 53% of Afghanistan’s gargantuan 8,200 tons of opium was produced in 2007.

The drugs were converted, and still are today, to cash in Dubai, where Dawood maintains a palatial mansion, similar to the one he maintains in Karachi. Dubai is a tax-free island-city, and a major offshore banking center. The most common reason for opening an offshore bank account is the flexibility that comes with it.

With the development of the Dubai International Financial Centre (DIFC), which is the latest free-trade zone to be set up there, flexible and unrestricted offshore banking has become big business. Many of the world’s largest banks already have significant presence in Dubai – big names such as Abbey National Offshore, HSBC Offshore, ABN Amro, ANZ Grindlays, Banque Paribas, Banque de Caire, Barclays, Dresdner, and Merrill Lynch, all have offices in the Emirate already.

In addition to Dubai, most of the offshore banks are located in former British colonies, and all of them are involved in money laundering. In other words, the legitimization of cash generated from drug sales and other smuggled illegitimate goods into the “respectable banks” is the modus operandi of these offshore banks. The drugs that Dawood’s mules carry are providing a necessary service for the global financial system, as well as for the terrorists who are killing innocents all over the world.

In December of 2007, this Britain-run drug-money-laundering and terrorist-networking operation was about to be exposed when Afghan President Hamid Karzai learned that two British MI6 agents were working under the cover of the United Nations and the European Union behind his back, to finance and negotiate with the Taliban. He expelled them from Afghanistan. One of them, a Briton, Michael Semple, was the acting head of the EU mission in Afghanistan and is widely known as a close confidant of Britain’s Ambassador, Sir Sherard Cowper-Coles. Semple now masquerades as an academic analyst of Afghanistan, and was associated with the Harvard Kennedy School’s Carr Center. The second man, an Irishman, Mervin Patterson, was the third-ranking UN official in Afghanistan at the time that he was summarily expelled.

These MI6 agents were entrusted by London with the task of using Britain’s 7,700 troops in the opium-infested, Pushtun-dominated, southern province of Helmand to train 2,000 Afghan militants, ostensibly to “infiltrate” the enemy and “seek intelligence” about the lethal arms of the real Taliban. Karzai rightly saw it as Britain’s efforts to develop a lethal group within Afghanistan, a new crop of terrorists.

The drug money thus generated to fund the financial centers and terrorists through HSBC was also responsible for ongoing terrorist attacks that have destabilized most of South Asia. The most important of these was the massive attack on Mumbai.

The mode used to launder such drug money is through diamonds. A 2003 Report assessed various alternative financing mechanisms that could be used to facilitate money laundering and or terrorist financing. Trading in commodities, remittance systems, and currency were assessed on each of their abilities to earn, be moved, and store value. Diamonds were the only alternative financial device that fit into all of these assessment criteria.

Diamonds can be vulnerable for misuse for money laundering and terrorist financing purposes because they can transfer value and ownership quickly, often, with a minimal audit trail. They provide flexibility and an easy transportation of value.

Top diamond traders of the country, several of whom are now settled abroad, figure on what the media calls as the #SwissList, with mostly Mumbai addresses given. Many persons on the list are Gujarati diamond merchants with offices all over world having roots in Palanpur.

However their involvement in not just limited to money laundering. Almost 6 months before 26/11 2008 Mumbai Attacks the Financial Intelligence Unit of India (FIU-IND) (the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions) was already tracking the diamond industry for suspicious activities by terrorists.

“A year ago, some people from Mumbai began purchasing diamonds worth crores of rupees. When the industry tried to trace the traders, they turned out to be non-existent,” said Vanani.

The FIU traced all foreign transactions of Surat’s diamond industry, especially those emanating from Belgium. It found that a great deal of money was being invested by terrorist groups.

However in May 2014 eight of these Belgium based diamond dealers were given a clean chit by the Income Tax department in the black money case. The I-T department said a probe was initiated against the eight individuals, but there was no proof of tax evasion by them. Why is the Government reluctant in disclosing Black Money related data; be it NDA and even UPA before it ? For a detailed report on the issue read 26/11 – The Black Money Trail.

From the Far East to the Middle East to Ibero-America to India, everywhere the drug trade is flourishing, you will find HSBC. It may not handle the dope, but it does handle the money, making sure that the “citizens above suspicion” who run the empire get their cut of the proceeds.  Now HSBC has been caught red-handed laundering money in the U.S., India, China, Argentina almost everywhere the sun shined through the colonies. This is a bank which has abused us, assaulted our people, and violated the law with abandon. Isn’t it time we set an example and revoke its charter to do business here in India ?

Strawman Trust Understood (Kiri Campbell’s Exchange System) | The End of Debt Slavery? Perhaps…You Decide


Ed. Note: Interesting developments with Kiri Campbell, at this point it’s probably a good idea to see what happens. I wouldn’t bank on anything right now…

Also, I had a difficult time posting this article without running off into the columns…it happens. Much love and aloha! Annette

February 11, 2015

Note from Brian: this article contains a substantial amount of research and information which proves, beyond the shadow of a doubt, that humanity does in fact operate within a global slavery system designed to control the population through debt and banking. Much of this information is not new. However, it will be new to many. The content of this post, specifically the links to supporting articles and videos are a great starting point for any friends or family who are new to this information, or even on the fence still trying to figure out what to believe. 

If there is too much information here and the reader is not interested in diving into all of it, I suggest scrolling to the middle where I share a quote from Colonel Edward Mandell House, providing verifiable evidence of the gross coercion at play behind the scenes in the build up to the creation of the Federal Reserve. This quote alone will likely inspire digging into the rest of the material presented here. To the people who may end up reading this content and diving into this material for the first time, this information will be shocking at the very least. Before you get mad, angry or upset, please understand that there is a light at the end of the tunnel. As you read this post, this system, designed to control and manipulate the masses for the benefit of the few is failing. In fact, the whole reason for me putting this out now, is to highlight recent developments which lead myself and many others to believe, this failure may be taking place sooner rather than later. Be strong. Keep the Faith. We are all in this together. Humanity will prevail. Our destiny guarantees it. Namaste ~BK

For live real time updates, make sure to check out http://www.consciousconsumernetwork.tv. The world’s first alternative media live streaming news platform.

This is a long story that spans back nearly two years. In fact, it spans back to the dawn of the Federal Reserve and the installment of debt into modern day money mechanics. For those with a reasonable level of awareness of how the debt and money system works, this will be pretty simple to grasp. For everyone else, in order for this information to make any level of remote sense, a significant amount of research and digging will be in order. I will do my best to provide a few links and videos to help initiate that process.

Before I do so, let me say this. It is easy to judge that which we do not understand. This is the type of high profile story, with global ramifications beyond which my mind can even fathom at this point, which will undoubtedly bring with it a great deal of judgment, criticism and skepticism. So be it. Goes with the territory. This story needs to be told and I will do whatever I can in my power to help get the message out. Wayne Dyer once said, “the ultimate form of ignorance is when you reject something you don’t know anything about.”

So, before you reject, seek to understand.

This article I put out back in August, 2013 is a great start: http://briankellysblog.blogspot.com/2013/08/kiri-campbells-innocence-web-of-lies.html.

Within that article, there are also links to a few other key blog posts, which provide a substantial amount of additional data to help illustrate the underlying story and statement of facts presented herein. Here are the links to those two articles, previously posted here on this blog. To this date, these are the most widely read blog posts I’ve ever pieced together and have since been shared on hundreds of other blogs all over the internet.

Proof ALL Your Debt is PRE-PAID
The United States — A Private for Profit Federal Corporation — Bankrupt & has to Pay Our Bills

The following is an animated short video that went out back in 2010, called Meet Your Strawman. In just a few minutes the creators of the short have captured in a fun and playful way the concept of the strawman (the creation of the corporate fiction aka: YOU), as well as the story behind its creation.

For a deeper read into how the strawman works, I highly recommend reading Mary Elizabeth: Croft, How I Clobbered Every Bureaucratic Cash-Confiscatory Agency Known to Man, which can be read here. There are also free pdf versions available for download all over the internet by searching the title on Google.

http://briankellysblog.blogspot.com/2013/07/mary-elizabeth-croft-how-i-clobbered.html

Still not convinced?

This is a direct quote from Colonel Edward Mandell House, on the Federal Reserve System, as stated to then President, Woodrow Wilson.

Edward Mandell House On The Federal Reserve System

The Federal Reserve is the real (hidden) government of the United States Corporation. What is unknown to most Americans, is that Washington D.C. is merely the Federal Reserve System’s puppet.

“Passage of the Federal Reserve Act was a major milestone on the ‘road to serfdom’ that this entire progression outlines. The conspiratorial nature of matters is exemplified in comments by one of the major actors in the triumph of the Federal Reserve, Edward Mandell House, who had this to say in a private meeting with President Woodrow Wilson: 

[Very] soon, every American will be required to register their biological property in a national system designed to keep track of the people and that will operate under the ancient system of pledging. 

By such methodology, we can compel people to submit to our agenda, which will affect our security as a chargeback for our fiat paper currency. 

Every American will be forced to register or suffer being unable to work and earn a living. They will be our chattel, and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. 

Americans, by unknowingly or unwittingly delivering the bills of lading to us will be rendered bankrupt and insolvent, forever to remain economic slaves through taxation, secured by their pledges. 

They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debt to the registrants in the form of benefits and privileges. 

This will inevitably reap to us huge profits beyond our wildest expectations and leave every American a contributor to this fraud which we will call ‘Social Insurance.’
‘Without realizing it, every American will insure us for any loss we may incur and in this manner; every American will unknowingly be our servant,
however begrudgingly.
The people will become helpless and without any hope for their redemption and, we will employ the high office of the *President of our dummy corporation to foment this plot against America.’” 

Editor’s Note: President, referring to the President of the United States of America AKA, the United States Corporation.”

Now that there is sufficient background in place, let’s fast forward to present day, February 11th, 2015. Last Friday a platform called Credit Xchange www.creditxchange.co.nz (website currently down to increase server capacity) was launched in New Zealand, by Kiri Campbell and her team of Freedom Fighters. Below is the first public announcement about this new program.

There is still much information coming out now as to how this system will work. Since I am still in the process of understanding its inner workings, I will hold back any explanations, so as to avoid unconsciously providing any misinformation.

I will say this. This development may not be “THE” answer. However, from my assessment it represents one of major importance. The likes of which, carrying the capacity to create a tsunami of positive change, likely to follow as a result.

Let me take this moment to send a HUGE thank you to Kiri Campbell and her team for your unwavering commitment and collective service to humanity. This is an exciting time to be alive and I’m honored to be sharing this mission of Operation Liberate Humanity with all of you who read this blog and beyond. Victory will be ours!

More on this coming soon…

In closing one of my favorite YouTube videos ever created to accompany the famous speech by Charlie Chaplin from the movie The Dictator:

Bix Weir: A FINAL CHECKLIST FOR EVERYONE


http://www.roadtoroota.com/public/422.cfm?awt_l=PL07Y&awt_m=3YT14D9fr0AZ85B

My Road to Roota analysis shows that we are VERY CLOSE to the breakdown of the entire fiat monetary system and I thought it a great time to go over final preparations for the coming chaos. In the grand scheme of things you can never be fully prepared for what is about to transpire because nobody on earth has been through it before…not to this scale. I guess the closest thing we can compare it to is the experience of the Germans in the early 1920’s with the Weimar Republic. Look at how quickly their currency lost value:

422a

Compound that onto a GLOBAL SCALE and the currency in question is ALL FIAT CURRENCIES IN EVERY COUNTRY and you can get an idea of just how big this is and how fast it can happen.

Let me ask you an important question. How safe do you think ELECTRONIC ASSETS really are? I’m not that old but I can remember my first savings account and I was issued something called a “passbook” where the bank had a special stamp they put in my book to record every deposit and withdrawal I made. They also wrote it down in their ledger and signed off on the transaction. For some reason, the act of physically recording my fluctuating wealth made me feel very secure even though the access to my “wealth” was totally dependent upon the health and well being of my bank.

That was only 40 years ago. Now days EVERYTHING is done on computers. Your balance, statements, checks, withdrawals, deposits have all been turned into little 1’s and 0’s and stored on magnetic disks. Oh, be assured that that’s all computer data storage is… 1’s and 0’s recorded on a storage disk. They rarely even mail statements anymore…everything is VIRTUAL.

Money is CREATED in the same way….with little 1’s and 0’s on magnetic discs. Convenient…yes. Durable…NO. Free from fraud…NO. Free from manipulation…NO. In the hands of the Bad Guys…YES! The fact is that computer wealth is even less reliable than paper wealth which in itself is not credible. It is not real wealth but a derivative of wealth. It is nothing but VIRTUAL WEALTH!

You might laugh at the 17th century Dutch who experienced the first recorded financial bubble bursting with Tulip Mania.

http://en.wikipedia.org/wiki/Tulip_mania

How could they have possibly believed that a FLOWER could take on the characteristics of money…of true wealth? Well, what do you figure those “Crazy Dutchmen” would think if we told them that we placed ALL our faith in tiny electronic 1’s and 0’s recorded on a magnetic disc? Who are the REAL FOOLS?

Trust in electronic wealth has turned into some kind of MASS HYSTERIA. To think that the entire world has freely placed all their wealth in these little electric blips and in the hands of those who control all the 1’s and 0’s. What if those 1’s and 0’s were to disappear one day? Gone forever? What would you REALLY own then? Would you kick yourself for buying into the MASS HYSTERIA when it cracks?

I guarantee you that our little experiment with “VIRTUAL WEALTH” is going to end very badly…and very soon!

Let’s talk about different scenarios of how these 1’s and 0’s can be erased from this world.

SCENARIO 1 – The EMP (Electro Magnetic Pulse)

Let’s talk about the sun. It’s changing. It’s always changing but understanding what ramifications might come of these changes will be relevant for a discussion about the future of our monetary system. First, the sun goes through cycles with increased solar activity on a fairly regular basis…

http://www.spaceweather.sflorg.com/space_weather/sob_multimedia/flvswm_14

We are entering into a solar maximum where we will encounter more and more solar flares and coronal mass ejections. These events have the ability to seriously mess with our electronics down here on earth.

A while back USA Today posted an interesting article about the potential of an EMP (Electro Magnetic Pulse) going off over the US:

http://www.usatoday.com/tech/science/2010-10-26-emp_N.htm?loc=interstitialskip

One hundred years ago a decent sized EMP hitting the earth would not have been such a big deal because we were not so reliant on electronics. Today is a much different story. Electronics are in EVERYTHING. From automobiles to media transmission we are 100% reliant on fully functioning electronics. EVEN OUR MONEY AND STORES OF WEALTH ARE NOW ELECTRONIC!

So the stability of our electronic world is a big deal these days.

I have talked a few times about this in past Friday Road Trips. Now imagine if a large EMP hit the States. We are not just talking about “the grid” as the article suggests but rather EVERYTHING that is run by electronic blips including cars, gas pumps, food delivery and of course ALL OUR MODERN ELECTRONIC ASSETS such as bank deposits, 401k’s, ETF’s…I can go on and on.

Unfortunately, these EMP’s can also be caused by setting off a nuclear explosion at altitude. The higher and stronger the blast the more area is effected below.

There’s more info on Wikipedia with this visual:

http://en.wikipedia.org/wiki/Electromagnetic_pulse

The fragility of our VIRTUAL lifestyle is massively underestimated. One big solar flare or nuclear bomb and we are TOAST. Back to horse and buggy days instantly.

SCENARIO 2 – The Super Computer Virus

Do we really have to have a natural disaster to totally erase all those little electronic blips from our financial system? According to George Ure over at www.urbansurvival.com the latest Super Computer Virus could do virtually the same thing!

The virus is called STUXNET and a description of it can be found here:

http://en.wikipedia.org/wiki/Stuxnet

The big mystery behind this virus is WHO could have possibly spent the many years and many man hours to put together such an elaborate program. Mr. Ure tends to lean towards what he and Clif High call the PTB or “Powers That Be”. At the Road to Roota Letters I like to call them the “Bad Guys”.

But what if this super virus wasn’t the work of the Bad Guys…but the GOOD GUYS?! What if this is the FINAL END GAME of the long term implementation plans originally hatched up by Alan Greenspan and Stephen Devaux that is the premise of the Road to Roota Theory?

http://www.roadtoroota.com/public/190.cfm

In my mind there are certain correlations that have sparked my interest down this line (road) of thinking. I have long suspected that Warren Buffett was working with the good guys but what about his close friend and confidant…BILL GATES?! They often spend hours talking about business and macroeconomic issues…much the way that Warren Buffet’s father, Senator Howard Buffet, would talk to Warren at the dinner table when he was growing up. Howard Buffett battled the banking cabal for many years but was never able to achieve his ultimate goal of returning the United States to a fully backed Gold Standard. Here’s an excerpt from what this amazing man said in the US Congress:

Human Freedom Rests on Gold Redeemable Money

By HON. HOWARD BUFFETT U. S. Congressman from Nebraska (1948)

IS TIME PROPITIOUS

Most opponents of free coinage of gold admit that that restoration is essential, but claim the time is not propitious. Some argue that there would be a scramble for gold and our enormous gold reserves would soon be exhausted. Actually this argument simply points up the case. If there is so little confidence in our currency that restoration of gold coin would cause our gold stocks to disappear, then we must act promptly.

The danger was recently highlighted by Mr. Allan Sproul, President of the Federal Reserve Bank of New York, who said:

“Without our support (the Federal Reserve System), under present conditions, almost any sale of government bonds, undertaken for whatever purpose, laudable or otherwise, would be likely to find an almost bottomless market on the first day support was withdrawn.”

Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion.

The paper money disease has been a pleasant habit thus far and will not be dropped voluntarily any more than a dope user will without a struggle give up narcotics. But in each case the end of the road is not a desirable prospect. I can find no evidence to support a hope that our fiat paper money venture will fare better ultimately than such experiments in other lands. Because of our economic strength the paper money disease here may take many years to run its course.

But we can be approaching the critical stage. When that day arrives, our political rulers will probably find that foreign war and ruthless regimentation is the cunning alternative to domestic strife. That was the way out for the paper-money economy of Hitler and others.

In these remarks I have only touched the high points of this problem. I hope that I have given you enough information to challenge you to make a serious study of it.

I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. You must be prepared to meet their opposition intelligently and vigorously. They have had 15 years of unbroken victory.

But, unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money.

There is no more important challenge facing us than this issue — the restoration of your freedom to secure gold in exchange for the fruits of your labors.

END http://www.fame.org/PDF/buffet3.pdf

To Warren Buffett there was no greater man in the world than his father and he has made it one of his life’s goals to finish his father’s business. Those who claim that Buffett has “lost it” with all his recent comments are not seeing the big picture. He hasn’t lost it but rather he is suckering EVERYONE in (and away from gold) so the wealth re-distribution after the big crash is more equitable. Eventually, Buffet will throw himself on the derivative sword to make sure the fiat monetary system implodes fully and finally this time.

To continue…

So is it too far fetched to imagine that Buffet and Gates would talk of monetary policy and/or the return to sound money over their long philosophical discussions about macroeconomics? I don’t think so. I know Gates is associated with MANY “Bad Guy” enterprises so don’t hold me to my take on his involvement because I DON’T KNOW. It’s just a guess.

Here’s some clues as to their penchant for monetary metals. Both Buffett and Gates were investors in SILVER back in the early 2000’s. Buffett with 120M oz of physical and Gates with a large ownership position in Pan American Silver (PAAS). Both sold out of their silver positions about the same time. Both have given away 1/2 their gigantic fortunes to charities and have urged other rich folks to do the same. What did they know about the coming destruction of fiat money? Did they try to do some good with all that money before it became WORTHLESS FIAT PAPER?

Still with me? Along this line it struck me that the STUXNET computer virus is a “Windows-based” virus. Could Bill Gates have been recruited by the Good Guys (via Warren Buffet) to create and implant this virus around the world such that they could “pull the plug” on the fiat monetary system when they were ready? This angle may have legs but it is way out of my area of expertise.

But there is one more thing that hits right to the heart of the Road to Roota early days and the first “Implementer” of the original market rigging programs – Stephen Devaux. This is from the Original Road to Roota article:

http://www.roadtoroota.com/public/120.cfm

Here’s what I wrote about Stephen Devaux:

****

Stephen Devaux, the person who “adapted” the cartoon “Wishes and Rainbows”, worked for the Federal Reserve in Boston…Mr. Devaux is now a world renowned author and trainer on “Project Management and Implementation” …Stephen Devaux would have been the perfect person to implement the Greenspan plan. His teachings talk about long implementation time frames, and the necessity of profit enhancement during the process of change.

Mr. Devaux worked for the Federal Reserve Bank for 9 years during the Gold Commission crisis. The 1980’s is when many gold bugs believe Citicorp and Goldman Sachs implemented the trading programs for “managing” the markets.

Devaux went to work for Citicorp right after his stint at The Federal Reserve Bank of Boston. His job at Citi was described as: “Developed and taught customer seminars in the implementation and use of Citicorp banking software.” Oil and Gold were just the beginning. Then he went on to Fidelity to train them how to use his software in the share market.

His last job before moving on to his own consulting firm was for Project Software and Development Inc or PSDI which supplied the software Maximo to the US Mint and almost every other high value asset business.

“Businesses, government agencies, and other organizations use PSDI’s products across their enterprise to assist them in the management of their high-value capital assets, such as plants, facilities, and production equipment, to cut inventories and supply chain costs, control maintenance expenses, reduce downtime, and more effectively deploy productive assets, personnel and other resources.”

PSDI software is now owned by IBM and is embedded in asset control software throughout the world (…now is that “Total Project Control” or what?!). END

******

Are you starting to get the same chills I am? Could Stephen Devaux’s computer programs still be out there lurking in the deep recesses of all those “high value capital assets”?

Over the years I have tried to understand more about Stephen Devaux but I’ve always come up short of getting a full picture. From what I understand he is extremely confident in his professional beliefs to the point of being self righteous. He is also very private and, supposedly, incredibly altruistic.

It seems to me that Stephen Devaux is the VERY LAST MAN in the world to walk away from a “Project” before it was finished! (Anybody who writes a book called “Total Project Control” and charges $140 for it likely takes himself very seriously and would want to see that his “total project” was FINISHED)

http://www.amazon.com/Total-Project-Control-Integrated-Operations/dp/0471328596

Has Devaux teamed up with Bill Gates to embed a Super Computer Virus hidden in the Windows Operating System and that now has “Total Project Control” over the Global Electronic Monetary System with the ability to destroy all those “electronic blips” we call ASSETS? Since I write a “Conspiracy Letter” I would have to say that it is VERY possible that Mr. Devaux is still heavily involved with the good guys and ready to “FLIP THE SWITCH” at any moment (next week maybe?). He’s just not the kind of guy to walk away from such an important project as the Implementation of the Gold Standard!

Just one more little bit on Devaux. He has a little quirk that may be a clue…STEPHEN DEVAUX LOVES PALINDROMES. Palindromes are anagrams (a type of word play) that are spelled the same way in either direction…like “EYE” or “RACECAR”. Here’s a letter he wrote that I found on the internet:

“I have always been delighted by palindromes, and have spent many hours composing them. (My masterpiece: “A man? A prisoner! A cage? Iron! = Did Noriega care? No, sir! Panama…”) I had always regarded this as an idiosyncracy until, a few years ago, I saw a Devaux family tree which listed one of the 18th century branches as having an oldest son named Xuaved Devaux. tell me, is there any other evidence of love of palindromes among Devaux genes?” http://www.famille-louisdevaux.com/steve-devaux.htm

So why do I mention this quirky fact? Because when I was reading George Ure’s analysis of the STUXNET virus I came across this statement:

“Besides, somewhere down in the guts, the anagram of “STUXNET” might be just the PTB having their fun with us – and keeping up their old tricks of ‘doing evil in plain sight’ which seems to be one of their ‘rules’ of engagement. So is STUXNET and anagram for “T US NEXT” or “US NEXT T”? END

Yes. That’s a HUGE stretch and not at all conclusive that Stephen Devaux is still involved with the Good Guys…BUT HE WAS IN CHARGE OF IMPLEMENTING THE OFFICIAL COMPUTER MARKET RIGGING IN THE 70’S AND 80’S so why assume he ever totally removed himself?!

HOW MUCH CONTROL DOES THE LITTLE MAN BEHIND THE CURTAIN NOW HAVE?

Ok…let’s get back to earth for a bit. I’m not saying that either of the above scenarios are going to happen in mid November and send us back to the stone age but they are potential scenarios for the crash that the world so desperately needs to change our global monetary system.

SCENARIO 3 – Derivatives = Weapons of Mass Financial Destruction

The simple fact is that we really don’t even need something so drastic as an electronic computer related meltdown. The popping of the Derivative Bubble would have a similar effect as it would freeze all financial assets in much the same way an EMP or Super Computer Virus would. Our VIRTUAL banking system is so interconnected with the way our entire system functions on a daily basis that the failure of only ONE large bank can bring the entire world to a grinding halt.

The dominoes are easy to follow. One large bank fails who has derivative contracts with 20 others who have corresponding contracts with 100 others and all are leveraged 30-1 or more with “Off Balance Sheet Special Purpose Entities”…blah, blah, blah. All of a sudden people scramble to get their money out of their banks, the stock market, their 401k only to find out that it was all running off a “fractional reserve” system so nobody gets anything because there is no money to distribute. You know how the story goes…

Can the world function without money? Would you go to work if you weren’t getting a dime for it and your family needed you at home to protect them? Push that scenario across all professions and you begin to get a sense of what may happen. Our “advanced society” totally breaks down then the 1’s and 0’s are wiped clean from this earth. It matters not if it was caused by a natural disaster or a man made one or just your simple banking Derivative Meltdown.

Everything will stop in it’s tracks.

Sorry if this scares you but you’re much better off if you UNDERSTAND what may happen than if you are one of the BILLIONS who will be scared, lonely and confused waiting in line for days at the bank.


  
Many people have asked me the two big questions:

“How long will it take?”

and

“What will I need to get through it?”

Those are questions you need to answer for yourself. Everybody’s situation is different so think through what you are going to need in case of a global banking breakdown. A good rule of thumb is surviving on your own for 4-6 months to be safe. If it goes on longer than that…well, go watch the movie “The Road” and you’ll get the idea….

ALRIGHT: Break OUT of that mind set. Like I have said all along the Road to Roota…

The Road to Roota Theory postulates that there is a group of people in the United States as well as around the world that are working to remove and destroy the financial banking powers that have secretly controlled all aspects of our lives for hundreds of years.

The end result of all this will be GLORIOUS but we will have to go through the DARKNESS to reach the LIGHT!

Use this FINAL CHECKLIST to prepare yourself for what is coming.

Remove Yourself From The Electronic Financial System - The corruption, fraud and abuse goes so much deeper than anyone knows that the ONLY way to get beyond this mess is 100% collapse of the current system and start again. Without the complete collapse of all electronic and paper assets and debt there will be those in the shadows who continue to run the show. The $700B bailout was NOTHING when it comes to the “Shadow Banking System”. I have heard estimates of total fiat monetary instruments in the QUINTILLIONS! If we try to “readjust” our system with something like www.NESARA.org we will only be hurting ourselves, delaying the pain and playing into the hand of the Bad Guys. We will feel that the problems were solved but a readjustment wouldn’t take care of what lurks in the shadows. We need a complete and total CREATIVE DESTRUCTION EVENT that ZEROS out everything. That will be achieved in a derivative collapse and/or an EMP.

So if you have any “assets” that are still entangled in the Electronic Financial System expect to lose them somewhere in the coming crash. That will most likely be balanced out by your holdings of gold and silver coin but only if it’s in your own possession.

Food & Water Storage - For anyone who’s analyzed how quickly food stocks turn at your average grocery store the timing is scary at best. Even without any kind of panic mentality most perishables take only a few days to sellout and get restocked. Imagine what would happen if there was a financial breakdown with no new deliveries due to a collapse. We’re talking only hours after the word starts to spread before all the shelves are wiped clean (most likely from looting as electronic transactions will freeze).

So I recommend having a substantial amount of dried food on hand at all times. How much you will need will depend on the amount of people you will be sheltering and the duration of the collapse. I am of the view that the more dried food you have the better off you will be. Bartering with your extra food will prove to be very, very valuable if the problems persist.

And don’t forget water. You won’t survive without water. If there is a total breakdown you won’t be able to rely on the local utilities for ANYTHING for a while. Get yourself some large plastic kegs that can hold enough water for you to survive off for at least a month or two. You’ll also need it to cook with.

Gold, Silver & Cash - If there is a total breakdown of our electronic monetary system (as in wiped clean from the earth) you are going to want a nice pile of physical cash as well as gold and silver coins. The cash will be very valuable in the early stage of the crash because very few will have access to any and people are still conditioned to deal in fiat money. I suggest $1’s, $5’s, $10’s and $20’s. Also keep piling up that change that you currently toss into your change jar. It should go a long way right after the crash.

As for gold and silver…it might take a while for them to be accepted by the masses. With the markets frozen shut even gold and silver diehards will not know the value of a 1oz eagle coin. It is likely that there will be some sort of announcement by the Government about backing the new currency with gold or silver but it will take a while for people to both understand and accept this transition. Pre-1965 90% silver coins may be a very good transition money as they are recognized as legal tender, have the form and shape of our current money and their purity is reliable as forgery of these coins has not been a problem due to their low value…at least at the moment. There will likely be warnings to watch out for fake gold and silver as the veil is lifted off the ETF fraud and the bars drilled.

Piles of Basic Necessities and Just Stuff - One of the results of the currency crash will be the End of Globalization. This is easy to understand because nobody will be accepting fiat money any more. There will be anger at the US for basically defaulting on the dollar promises. China will nationalize all our factories and equipment in their country as payback. They will use this infrastructure to supply goods to their own population. Every other country will follow suit.

Unfortunately, the US imports almost everything these days so expect massive shortages on “STUFF” even after we get back on our feet with a new domestic backed currency. Make a checklist starting with the basic necessities such as toilet paper, medicines, soap, cleaning supplies, clothes, etc. Then you should move on to survival gear such as matches, tents, sleeping bags, knives, camping gear, etc. Then think about barter stuff like cosmetics, alcohol, sporting goods, kids toys, bicycles, etc.

EVERYTHING you stock up on can also be used for barter because there will be things that you didn’t think of but will really, really want. Barter goes both ways.

It will take some time before manufacturing of most goods starts again in the US. It will start with the necessities and slowly but surely we will rise from the ashes…but it will all be domestic production for a while.

Protection & Safety - Given that you WILL be one of the few that is fairly prepared for this transition it is only appropriate that you protect your possessions as well as yourself and loved ones against those that were not as prepared and willing to take what they need. The obvious answer is getting a gun. I don’t like to recommend it…but I will. If you do get a gun make sure you know how to use it and understand that it carries with it the ultimate moral responsibility. Don’t use it UNLESS you have to.

Having said that there are many other steps you can take to tighten up your security. Get a VERY LOUD alarm for your home (and a battery powered back-up). Get motion censored security lights. Get a BIG safe and anchor it into the ground. Get some sort of air filter breathing mask in case of disease outbreaks. Get a portable water purifier. If you are with a group of people get some walkie-talkies.

But MOST of all GET TO KNOW YOUR NEIGHBORS as they will be your new community. You will need to band together and help each other through this. That old saying “there is safety in numbers” is something you should take to heart. Share your knowledge with them on how this all came about and the great potential for us to get though it if we stick together. YOU can change the way your community thinks and deals with the coming chaos. Yes, you might have to approach them AFTER the first signs of the crash because we all know how people react to us radical gold bugs already. But you can ease them into a NEW relationship you must development when things really start to fall apart. This local group will also be your barter partners so develop a good working relationship with your neighbors.

Tools To Rebuild Your Future - Once the initial shock wears off we will ALL be able to CREATE A NEW LIFE for ourselves. Remember…there will be no more debt. If it all goes the way I think it is planned by the Good Guys we will all be started off with a nice chunk of cash (gold and silver backed) so everyone will be able to take some time to figure out what they want to do with their NEW future. Many of the old jobs will disappear (finance jobs will be cut back the most) but new jobs will be available as we rebuilt our civilization.

So think about WHAT YOU ALWAYS WANTED TO DO but never had the time, money or confidence to do and start preparing for it now. What are the “tools of the trade” you might need for your new profession? It will take a while for manufacturing to get back on it’s feet so you might want to stock up on supplies now to get a head start on the competition. Remember, people will have the means of payment but not so much the tools to be a producer. Get a head start while the tools are still available.

Examples: If you always wanted to be a clothes designer stock up on fabrics and thread. An organic farmer should stock up on seed and fertilizer. A guitar player should stock up on strings and a recording equipment. A local bread baker should stock up on flour, ingredients and paper bags to sell their products. In the beginning of our rebirth everything will be small and community centric so think about what people will need, how you can contribute and what will fulfill your desires as a profession.

These are just some of the things you should be thinking about to prepare for the coming changes. If you live in the city you will have different wants, needs and resources than someone who lives in the country. REALLY put your head to this topic and ACT before the chaos begins…

How long?

I think the initial “Shock and Awe” period where EVERYTHING shuts down and there is mass global chaos will be about 1 week. Then I think there will be a very slow improvement as local communities band together trying to help each other through the crisis. My time frame for that is 3-4 months. These will be very hard and very dark days with a lot of anger, fear and chaos.

OUR GLORIOUS FUTURE: After 4-6 months we will realize that we are finally FREE of the evil controllers that have held us in bondage for so long. We will rejoice in our new found freedoms and rejoice in the idea that we can create our own future full of peace and prosperity. The way we ALWAYS thought life should be if we had our choice. Now WE get to CHOOSE!!!

HUMANITY HAS ARRIVED AT OUR LONG PROPHESIED CROSS ROADS…

MAY GOD HELP US PICK THE RIGHT ROAD FROM HERE.

All the best in your endeavors.

Bix Weir www.RoadtoRoota.com

HSBC exposed in tax evasion data leak


Submitted by Andre, mahalo!
Published time: February 09, 2015 10:46
Edited time: February 09, 2015 14:16

Reuters / Edgard Garrido

Reuters / Edgard Garrido

​A new investigation exposes HSBC’s Swiss private banking arm of helping royalty, criminals, terrorists, drug dealers, and even music stars such as Tina Turner and David Bowie to conceal their identities to dodge taxes.

The Washington-based International Consortium of Investigative Journalists (ICIJ), which obtained the documents from French paper Le Monde, found over 100,000 account holders in 200 countries listed in the data leak.

The documents shed light on the bank’s practice of courting rich depositors in exchange for protection from taxes from 2005 until 2007. During this period, the private banking armed controlled $100 billion in assets, according to Bloomberg.

HSBC reportedly reassured client that its bank was a safe haven for secrets, and that it would not disclosure details of accounts to national authorities or taxmen. Files also reveal that several clients were allowed to quietly transfer bricks of cash in foreign currencies.

A recorded example in the files is the case of Richard Caring, British retail tycoon and restaurateur, who walked out of the bank with 5 million Swiss francs in a suitcase.

This is the cancer that is destroying our society. The rich dodge tax with impunity while the poor are hounded for every last penny.

Seven hundred and forty Russian clients are on the list with combined assets of $1.7 billion, according to Vedomosti. Sanctioned businessman Gennady Timchenko, the former president of Russia’s state-owned Rosneft Sergey Bogdanchikov and the children of Boris Yeltsin’s Prime Minister Viktor Chernomyrdin are among them. Several civil servants appear on the list, despite Russia’s 2008 law that forces officials to declare foreign bank accounts and property.

The leak began in 2008 when Herve Falciani, a former HSBC computer technician turned whistleblower, left the company with troves of confidential information which he then turned over to the then French Finance Minister Christine Lagarde.

So, has colluded in tax avoidance? ‘Surprising.’ Let’s remember that when they inevitably screw up and need another taxpayer bailout.

“We acknowledge that the compliance culture and standards of due diligence in HSBC’s Swiss private bank, as well as the industry in general, were significantly lower than they are today,” the bank told ICIJ. HSBC said that since 2007, it has gone through a “radical transformation.”

HSBC is just one of more than a dozen Swiss banks under fire for nontransparent banking and aiding tax evasion.

READ MORE: Tax Haven No.1 – 340 global companies avoid billions in Luxembourg

The European Commission, along with the G20, has made it a goal to get rid of secret banking regimes, and in October signed an agreement to end tax evasion and money laundering.

There has been mounting pressure on several European banks that provide cover for illicit money. Switzerland’s largest bank UBS admitted to helping 52,000 American clients evade taxes in 2009, and paid a $780 million fine to the US Justice Department.

In February 2014, Credit Suisse was accused by the US Senate of holding more than 12 billion Swiss francs for more than 22,000 American clients.

More than $2 trillion in assets is held in more than 300 private Swiss banks.

http://rt.com/business/230483-hsbc-leak-swiss-bank/

 

“Cheerful” Dutch Financier Becomes 4th ABN Amro Banker Suicide


Tyler Durden's picture

Following the deaths of 36 bankers last year, 2015 has got off to an inauspicious start with the reported suicide of Chris Van Eeghen – the 4th ABN Amro banker suicide in the last few years. As Quotenet reports, the death of Van Eghen  – the head of ABN’s corporate finance and capital markets -“startled” friends and colleagues as the 42-year-old “had a great reputation” at work, came from an “illustrious family,” and enjoyed national fame briefly as the boyfriend of a famous actress/model. As one colleague noted, “he was always cheerful, good mood, and apparently he had everything your heart desired. He never sat in the pit, never was down, so I was extremely surprised. I can not understand.”

As Niburu details, friends and colleagues were startled by the news that Chris van Eeghen had committed suicide.

He worked in Amsterdam for ABN / AMRO in the position of “head of syndicate and corporate finance markets.”

Again, there is again a familiar pattern, namely that there is no indication that Van Eeghen had plans to take his life.

Ostensibly a successful banker, coming from what was described as an illustrious family. Chris was also a familiar sight in Amsterdam’s nightlife scene and enjoyed national fame as possible new boyfriend of Tatjana Simic (a famous Croatian-Dutch model, singer, actress).

 

 

“I have never expected. It was an incredibly nice cute guy, “said a neighbor from Amsterdam. In banking circles he had a good reputation.

Most believe that the suicide is not related to his work at the bank,
but a former colleague had noticed that on his Facebook recently changed
its job title to “former.”

Chris leaves behind a son – who had recently been cleared of cancer.

*  *  *

This is the 4th ABN Amro suicide in recent years…

In December last year, missing couple, Thieu (64) [a relationship manager at ABN Amro] and Ellen (55) Leenen from Valkenswaard were found dead in their car Monday afternoon in the Bocholt-Herentals canal in Mol (Belgium). The circumstances under which the car is hit water, point to suicide, police said.

In April last year killed former ABN Amro board member Jan-Peter Schmittman even suicide.

In 2009, ABN-Amro banker and Fentener Vlissingen scion Huibert Boumeester an end to his life in London to put a bullet through his head. Cause for the suicide were missed Madoff investments, was then suggested.

* * *

This is the third banker death in 2015…

1) Michael Flanagan, 45, head of Foreign Exchange, National Australia Bank, London, England

2) Omar Meza, 33, Vice President, AIG, Los Angeles, America

3) Chris van Eeghen, 42, Head of Syndicate and Corporate Finance Markets, ABN / AMRO, Amsterdam, The Netherlands

*  *  *

After at least 36 banker deaths last year…

1) David Bird, 55, long-time reporter for the Wall Street Journal working at the Dow Jones news room
2) Tim Dickenson, a U.K.-based communications director at Swiss Re AG
3) William Broeksmit, 58, former senior manager for Deutsche Bank
4) Ryan Henry Crane, age 37, JP Morgan
5) Li Junjie, 33, Hong Kong JP Morgan
6) Gabriel Magee, 39, age JP Morgan employee
7) Mike Dueker, 50, who had worked for Russell Investments
8) Richard Talley, 57, was the founder and CEO of American Title (real estate titles)
9) James Stuart Jr. 70, Former National Bank of Commerce CEO was found dead in Scottsdale, Ariz
10) Jason Alan Salais, 34 year old IT Specialist at JPMorgan since 2008
11) Autumn Radtke, 28, CEO of First Meta, a Singapore-based virtual currency trading platform
12) Eddie Reilly, 47, investment banker, Vertical Group, New York
13) Kenneth Ballando, 28, investment banker, Levy Capital, New york
14) Joseph A. Giampapa, 55, corporate bankruptcy lawyer, JP Morgan Chase
15) Jan Peter Schmittmann, 57, voormalig topbestuurder ANB/AMRO, Laren, Nederland
16) Juergen Frick, 48, CEO Bank Frick & Co AG, Liechtenstein
17) Benoît Philippens, 37, directeur BNP Parisbas Fortis Bank, Ans, België.
18) Lydia…, 52, bankier Bred-Banque-Populaire, Parijs
19) Andrew Jarzyk, 27, bankier, PNC Bank, New York
20) Carlos Six, 61, Hoofd Belastingdienst en lid CREDAF, België
21) Jan Winkelhuijzen, 75, Commissaris en Fiscalist (voormalig Deloitte), Nederland.
22) Richard Rockefeller, 66, achterkleinzoon elitebankier John D. Rockefeller, Amerika
23) Mahafarid Amir Khosravi (Amir Mansour Aria), 45, bankeigenaar, zakenman en derivatenhandelaar, Iran
24) Lewis Katz, 76, zakenman, advocaat en insider in de bancaire wereld, Amerika
25) Julian Knott, Directeur Global Operations Center JP Morgan, 45, Amerika
26) Richard Gravino, IT Specialist JP Morgan, 49, Amerika
27) Thomas James Schenkman, Managing Director Global Infrastructure JP Morgan, 42, Amerika
28) Nicholas Valtz, 39, Managing Director Goldman Sachs, New York, Amerika
29) Therese Brouwer, 50, Managing Director ING, Nederland
30) Tod Robert Edward, 51, Vice President M & T Bank, Amerika
31) Thierry Leyne, 48, investeringsbankier en eigenaar Anatevka S.A., Israël
32) Calogero Gambino, 41, Managing Director Deutsche Bank, Amerika
33) Shawn D. Miller, 42, Managing Director Citigroup, New York, Amerika
34) Melissa Millian, 54, Senior Vice President Mass Mutual, Amerika
35) Thieu Leenen, 64, Relatiemanager ABN/AMRO, Eindhoven, Nederland
36) Geert Tack, 52, Private Banker ING, Haaltert, België

http://www.zerohedge.com/news/2015-01-24/cheerful-dutch-financier-becomes-4th-abn-amro-banker-suicide

Millionaires for Carbon Control – New World Next Week with James Corbett and James Evan Pilato


01/23/2015

Welcome to New World Next Week — the video series from Corbett Report and Media Monarchy that covers some of the most important developments in open source intelligence news. This week:

Story #1: Pharrell & Al Gore Announce Global @LiveEarth Concerts On All 7 Continents
http://ur1.ca/ji5aa
Pharrell Planning Worldwide Sing-along Psyop for Live Earth Concerts?
http://ur1.ca/ji5eh
Wikipedia: Live Earth 2007 – Controversies and Criticism
http://ur1.ca/ji5ep

Story #2: UK, US to Stage ‘Cyber War Games’
http://ur1.ca/ji5fc
Britain and US to Train ‘Cyber-Agents’ to Protect Banks From Terrorists
http://ur1.ca/ji5fl
iPhone Has Secret Spy Software That Can Be Remotely Activated
http://ur1.ca/ji5de
GCHQ Classifies Investigative Journalists As ‘Threats’
http://ur1.ca/ji5do
Ex-MI6 (That’s their CIA) Chief: ‘We Cannot Stop Terrorism Unless We Spy On Innocent People’
http://ur1.ca/ji5dt

Story #3: Teenager’s Browser Plug-In ‘Greenhouse’ Shows You Where Politicians Get Their Funding
http://ur1.ca/ji5g8
Get The ‘Greenhouse’ Plug-In Here
http://AllAreGreen.us/
Thirteen Year-Old Builds Braille Printer With Legos, Starts Company
http://ur1.ca/ji5gq
Where Cellular Networks Don’t Exist, People Are Building Their Own
http://ur1.ca/ji5gx
A Year After Marijuana Legalisation In Colorado, Police Confirm “Everything’s Fine”
http://ur1.ca/ji5h1
Broc West: Community Garden Journal – Week #2 ‘Planting Seeds, Making Cuttings & Soil Prep’
http://ur1.ca/ji5h8

#NewWorldNextWeek Updates: Argentinian Prosecutor Who Accused President of Terror Cover-up Murdered Before Testimony
http://ur1.ca/ji5hk
How The U.S. Government Convinces a Newspaper To Kill a Story
http://ur1.ca/ji5ho

Visit http://NewWorldNextWeek.com to get previous episodes in various formats to download, burn and share. And as always, stay up-to-date by subscribing to the #NewWorldNextWeek RSS feed or iTunes feed. Thank you.

Previous Episode: IRS Goes Global
https://www.corbettreport.com/?p=13342

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Comments (6)

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  1. Colin Green says:

    Thanks James and James. I like where you are going. Balance is key to critical ‘free’ thinking. You can’t think freely when the information you consume is too heavily marinated in either syrup or vinegar.

  2. Nick says:

    Consider this re the Argentina prosecutor/bombing story: http://youtu.be/XkC4wvRK5OI?t=9m22s

    Wouldnt be the first time actual anti-semitic facists in Argentina got cover from both the US and Israel for expediency’s sake.

  3. Jeff says:

    Many thanks 2xJames, love this show, and in complete agreement on the focus on solutions here. Personally, the evidence has been in for a long time so to speak and solutions are what I’m interested in now. Looking forward to more open source solutions in the future and helping to explore the groundwork for such environments.

  4. candideschmyles says:

    While I am in complete agreement that the effort to own the climate debate is being dominated by big government/industry and is sold to the masses by the talentless whores of popular entertainment I still think you two are throwing out the baby with the bathwater. Ordinary scientists are not globalist conspiracists yet again and again I detect this evil scientist paradigm coming through on this subject.

    I am not a scientist but I have worked with them and understand the scientific method. Neither am I an ecofascist with some axe to grind over some notional humans = bad agenda. I love our natural environment and I love mankind and our singularly awesome achievements, many of which were only possible because we developed the scientific method. So I find the dismissal of the science I find here really rather sad. And it seems obvious to me you are both only reading the politicised interpretations of the data and not the data itself.
    In 1989 I did several square metre surveys of every plant species growing in several locations within a local national park. Returning to the same plots 22 years later I witnessed with my own eyes that grasses had been n replaced by mosses and reeds. This is consistent with the 60% increase in rainfall Scotland has experienced in the past 50 yrs. Am I a liar? Am I cooking the books? Well I know I am not and it is the 100s of 1000s of little studies like this that convince me rapid change is afoot.
    While there is much manipulation of the science by politicos your approach does not clarify it only compounds. The truth is that the overwhelming majority of scientists, not politicians, industry or bloggers, do not think massive changes are taking place they know it with certainty. Yes we can and will adapt but that is no excuse for complacency and especially no excuse for continuing to poison our biosphere.

  5. Simon says:

    Well indeed Metallic played Live Earth 2007, Sad But True. Well to Metallic fans I guess Nothing Else Matters, probably boring to most so Enter Sandman. Although I believe Master of Puppets is a song about drug addiction, still the lyrics for me make me think of the powers that should (not) be. So if they do play Live Earth 2015 perhaps Master and …Justice for All would be my suggestions.
    Good show guys, and I do like the other album low in the background, don’t know it but the title made me smile, like you both do, BECOME THE MEDIA!

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“Russia, India and China: the emerging Eurasian equation” ~ What you won’t learn from Western Media


Note: I stumbled on this excellent article on FB written by Arun Shrivastava on some of the behind the scenes geopolitical movements behind BRICS developments. He’s provided some great links for further research into this emerging equation…

Copyright: Arun Shrivastava

New Delhi, India
The three dominant components of BRICS in the Eurasian landmass are Russia, India and China or RIC. Led by Vladimir Putin, Narendra Modi and Xi Jinping, the three have forged an economic, energy, trade, finance and banking, and weapons (manufacturing and trade) alliance within a span of five months. Military cooperation will be a continuous feature as much as a coordinated effort to neutralise and eventually defeat largely USA sponsored terrorism.

Such tectonic shifts in geo-politics do not happen overnight. Here are a few points that illustrate the processes that went behind forging of the alliance.

1. Narendra Modi [1] has worked closely with Putin for over fourteen years. Modi was not even a minister then, just a senior party worker. Prime Minister Vajpayee [1999-2004] was grooming him for bigger role. It was Modi and Putin who worked out twinning arrangement between Gujarat State and Astrakhan. They laid down a strategic cooperation plan between Russia and India, adopted in 2001. Putin, already President of Russia, came to Delhi to initiate strategic dialogue covering economic, energy and military cooperation. When Modi became Chief Minister of Gujarat late in 2001, that relationship was further strengthened. Discussion to lay down a gas pipeline from Astrakhan to Gujarat was first initiated during this early period. [2][3]

When 9/11 events happened both Vajpayee and Putin offered to collaborate with the USA. Both offers were rejected and we all know why. By late 2003, after the US attack on Iraq, it was clear that a devilish, global resource war is on in which democratic leaders and international law would be ignored. Even the UN system became an extension of US power through its Framework Team. Putin went on to say that ‘they [the West] don’t want any discussions, or partners; they want to dictate to vassals.’ In 2004 ‘stolen’ election Manmohan Singh, a former IMF Executive Director and a despicable character, was inserted as Prime Minister and India became one of West’s vassals. They stole another election in 2009. During Manmohan years [2004-2014] there was no significant progress on Indo-Russian strategic partnership. A hostile posture vis-a-vis China was maintained along with diplomatic inanities with BRICS. If Manmohan Singh and her de facto boss Antonia Maino [known in India as Sonia Gandhi, a low level Nazi’s daughter] had won the election in 2014 [April-May], they would broken up and sold India to the West. [4] The planned balkanisation, role of West sponsored ‘Secularists’ and NGOs, west funded political groups, academics and media, and the hijacking of people’s anti-corruption movement is properly documented. [5] The embassies of USA, UK, France Germany, Norway, Switzerland and Sweden and the Israelis have ensured that Nepal and Bhutan can be exploded anytime and the entire Himalayan region straddling China and India can go up in flames. [6][a,b,c,d]

2. Modi’s Asia centric strategy evolved from early 1990s onward. Twenty years ago, around the time Dawood Ibrahim funded terrorist acts followed by communal riot in 1992, he had warned that terrorist activities will have to be resolved at global level but he was told that ‘such activities are local law and order problems.’[7] Recall history. Whenever there was an uprising in India, the British Media called it local law and order problem. Now, it is the same story except that they engineer the events and call it local law and order problem.

Narendra Modi, denounced by West’s liberal Left as fascist, saw through the game back in the early 1990s. Had warned. Was denounced ‘hard-liner’. By who and why? Governments are extremely well briefed. They have access to top class information. Officers know and can brief leaders. Modi reads a lot even now, rather more so. That is worrying the West.

Within months of his taking office as Chief Minister, a communal riot was engineered in which he was implicated. Even after 12 years of most intense intelligence probes, instigated by the Western Crime Conglomerate including the Jesuits and American Christian fundamentalists, no one, not even the Supreme Court of India, find could a single evidence showing Modi’s involvement in these riots.
When he became Gujarat’s Chief Minister [2001], he established contact with China, invited investments and joint ventures. As Chief Minister Modi travelled to China five times. Just as he was impressed by China’s economic progress, so were the Chinese political and commercial leaders impressed with his no-nonsense approach to business and economic development. As a result Gujarat has largest investments from China. Businessmen from around the world wanting to do business in India during Singh-Sonia rule avoided Delhi, went directly to Gujarat and flew out ignoring Delhi’s rulers.

In one of his China visits [Nov., 2011] Modi was accorded the honour to address senior Politburo members led by Mr Wang Gang at the Great Hall at Beijing usually reserved for head of the states. [8] Modi’s personal rapport with the Chinese Communist Party [CPC] leadership was built parallel to that with the Russian leadership and particularly Putin, facts that few analysts know and fewer bother to even mention in the mainstream media.

When Xi Jinping was in India [Sept., 2014], Indo-Chinese border tension was escalated by the Chinese line commanders. Both leaders ignored this and instead, with a shared concern for rapid economic development and cooperation, said in their Joint Statement: [We agree] “to make this developmental partnership a core component of the Strategic and Cooperative Partnership for Peace and Prosperity……. conducive not only to the common interests of both sides, but also to stability and prosperity of the region and the world.” [9][10]

This vital public statement uncovered an evolving relationship where constructive engagement will be the new normal. Following his return to China, Xi Jinping called a top level meeting with services chiefs and gave them, as some reports say, real dressing down telling them that the armed forces must work under the CPC. This was not reported by India’s pro-West mainstream media but the border incidence was kept on the front page for days.

3. Between 2004-2014, Narendra Modi was consolidating his power within his party [BJP] but even within the BJP a large segment was secretly collaborating with Singh-Sonia duo. Many of Modi’s current cabinet ministers are known collaborators of pro-West clique which ultimately links them with the Western Crime Conglomerate [WCC] whichever way one defines WCC. [Banksters, Anglo-American Zionists, the Bilderbergers, the Jesuits, American fundamentalist Christians or any combination]. Russia and China were watching the drama unfold as India stumbled from one multi-billion dollar scam to another, open looting of its natural resources, and the NGOs, particularly Liberal West’s darling Arundhati Roy openly advocating ‘Breaking India’ for which she was charged with sedition. Events between 2009 and 2014 gave an impression, to me at least, that India would be broken up into five to seven countries.

My detailed report weeks before Narendra Modi’s landslide victory was not published by leading Left Liberal websites because they still believe that Narendra Modi is a fascist. They have not done their homework and don’t know the ground reality in India.

4. Modi won absolute majority in the Parliament and became Prime Minister in May [results were declared on 16th May, 2014]. A Chinese delegation was in Delhi that time finalising Agriculture related agreements. They stayed back and returned one month later! Perhaps during this initial phase the ground work for BRICS and broad based cooperation was discussed and shared with the Russians. People don’t know in the West that 50-60% of all international treaties India has are with Russia and China. Also worth noting is that China and India never had a border, never fought a war in their 8,000-year history and about 3000-years’ history of trade relations. [Fleets of merchant ships would sail around November from India, aided by wind, drop anchor at Bali (Indonesia), then sail up North to East Asia, China and Japan. Even today Bali-Yatra (Voyage to Bali) is celebrated as a major festival in Orissa. Similarly, Chinese ships came here].

5. Modi, Xi Jinping and Vladimir Putin are deeply religious and deeply grounded in their traditional civilizational values. Modi is conservative Hindu, Xi follows Confucius and Putin is Eastern Orthodox Christian. They have evolved a common world view in which Britain and USA-the main architects of Western domination, the Anglo-American Zionists, and the Vatican- have no role. That’s what is the deep structure of their shared belief system. They can’t accept coercion. Modi made that absolutely clear in his joint Press conference with Putin and Jinping.

6. Fact check-economy: The combined GDP of Russia, China and India [RCI] in 2014 was larger than that of Germany. USA, UK, France and Italy [GUUFI]. Savings to GDP ratio and investments in Fixed Capital were much higher in RIC as compared to GUUFI. The western media alleges that Russia lives off oil and gas economy. This is false. Russia has balanced and diversified economy with perhaps lowest tax rate [about 13%]. RCI are unlikely to privatise core strategic assets and one reason RCI did not face financial problem in 2008 and earlier is that their biggest banks are Government owned and tightly regulated. Private Western banks have limited role, even in India. RIC have real manufacturing economy projected to grow at 5-6% [China], 8-10% [India] and about 8-10% [Russia]. All three have aversion to GMOs so their food sector will grow as well. RIC have 388 million hectare of good land which can feed the world. American agriculture will eventually be finished because RIC as well as EU have zero tolerance for GMOs. Furthermore, Modi’s declared policy is to compensate a farmer at Cost of production + 50%. China increased its agricultural production by 750% between 1980 and 2005. Russia has earmarked agriculture sector for heavy investment. Armies can fight wars only when they have healthy food. American soldiers have GMOs in their belly, somehow surviving to walk straight.

6. Fact check-military: RIC have an immense military infrastructure. Active men/women number about 4.37 million against GUUFI’s 2.15. Total armed forces number 11.92 million for RIC against GUUFI’s 3.64. The technological gap has been closed in almost all types of weapons’ system. Russia has trained its soldiers to such high level that each can perform the role of five NATO soldiers because they have just 145 million people and the smallest armed forces. It is for this reason that the West has used the fifth columnists [NGOs] to create problems in Russia, China and India, consistently for the past 15-20 years. Insiders from the USA say that their nuclear command has been compromised by Obama, perhaps a reason why both Paul Craig Roberts and Lynn LaRouch have been warning of thermonuclear war.

7. Important recent developments juxtaposed against history

Xi-Jinping and Modi signed an agreement on many cooperation areas but paragraph 18 paves the way for potentially full spectrum military alliance. Without China’s tacit cooperation India could not have taken up massive deployment of troops against Pakistan in 1971 war. India withdrew the highly trained mountain divisions across the Indo-Chinese border to be redeployed against Pakistan. Many writers cite Indo-Chinese war of 1962 and the border issue as a hindrance to full scale cooperation. If I remember correctly, Chou En Lai had made an offer to India in the mid 1950s to cede barren rocks of Aksai Chin for access to Tibet, in exchange for more fertile land in the East, part of Tibet, north of Arunachal Pradesh then known as North East Frontier Agency [NEFA]. India’s Prime Minister Nehru, gloriously known as international political monkey and a British lackey, refused the deal and ordered war without any preparation. Indian soldiers with canvas shoes and no high altitude survival training capitulated against 9:1 Chinese attack force. This event is written about in India as China’s war against India. The fact is that straight analysis in “The Great Himalayan Blunder” prove foolishness of two British stooges and many army commanders of World War II vintage caused the problem. Misleading writings of typically pro-Empire rogues like Maxwell’s “India’s China War” can be dismissed.

Russia-India military alliance was signed in 1971 during the Soviet era that still is on the statue books. That alliance ensured the liberation of East Pakistan now known as Bangladesh. When the US Pacific fleet sailed from Guam to ‘teach India a lesson,’ the Soviet fleet was right behind. British warships in the Arabian Sea sighted Russian submarines too frequently and left the area in a hurry. Before the Pacific fleet led by USS Enterprise could reach war zone, Bangladesh had been liberated. IT was one of the greatest defeats of Anglo-American warlords.
Putin and Modi have signed a raft of MoUs on 20 cooperation areas including joint design and construction of nuclear reactors for world market, joint development and manufacturing of helicopters, passenger aircrafts [essentially to compete with Airbus and Boeing], joint military officers’ training programme, etc. Putin’s 22 hour stay in Delhi was a momentous occasion during which sixteen major cooperation agreements were signed in addition to already existing 69, highest with any country. The most important ones deal with joint production of nuclear reactors, as many as ten new nuclear reactors in India, manufacturing of Russia’s technologically advanced helicopters in India, major energy deals and other cooperation.
https://www.youtube.com/watch?v=Qmy1MHqupqc

Foreign policy: The most significant statement came in the joint press conference of Putin and Modi on 11th December on Afghanistan, Iraq and Syria and earlier with Xi Jinping. Both statements have been downplayed or removed. They said (a) the way things are going on has to change and (b) Russia, China and India have a role to play to start peace process and economic development. The oblique reference was that the world has had enough of plundering and killing, It must stop now.

SUN TZU in the ‘ART OF WAR’ states: “Those who use fire to assist their attacks are intelligent; those who use inundations are powerful.” [sic]

[1] Modi’s background
http://en.wikipedia.org/wiki/Narendra_Modi
[2] http://timesofindia.indiatimes.com/…/articleshow/1715287.cms
http://timesofindia.indiatimes.com/…/articleshow/1698471.cms
[3] Russia India dialogue on Pipeline starts
http://www.hindustantimes.com/…/india…/article1-1248292.aspx
[4] http://www.salem-news.com/ar…/may132012/soetoro-maino-as.php
[5] http://www.vijayvaani.com/ArticleDisplay.aspx?aid=3188
In this article I had said weeks before election results that if Narendra Modi does not win, India could be dismembered and South Asia would be in serious trouble.
[6] http://www.globalresearch.ca/the-political-crisis-in-…/31494
[7] http://defence.pk/…/modi-warns-against-narco-terrorism-by-…/
[8] http://www.narendramodi.in/speech-of-hon%E2%80%99ble-chief…/
He is the first Prime Minister who has not gone to London to pay obeisance to the Lords of the planetary manor. Nor has he given much importance to the Western European Governments, nor to the World Bank whose CEO came calling within days of his taking up as PM.
[9] Xi Jinping accorded ceremonial welcome [last 5 minutes, very important]
https://www.youtube.com/watch?v=6gqxWEz8zok
[10] http://www.mea.gov.in/bilateral-documents.htm…

 

It’s Time to Fix America’s Infrastructure. Here’s Where to Start


An aerial view of the Interstate 35W bridge that collapsed over the Mississippi River in Minneapolis, Aug. 3, 2007.

President Obama believes America must build “21st century infrastructure—modern ports, stronger bridges, faster trains and the fastest Internet,” and in his State of the Union this week he asked the Republican-controlled Congress to pass a bipartisan infrastructure plan, likely the trillion-dollar legislation Senator Bernie Sanders proposed earlier this month.It’s an ambitious plan that many agree is desperately needed.

The American Society of Civil Engineers says the US needs massive investments in all essential infrastructure, from bridges and airports to dams and railways. According to the society’s most recent infrastructure report card, the US earns a D+ for its infrastructure. It is, in a word, a mess. This is about much more than potholes. This is about keeping the economy, literally and figuratively, moving. Much of the economic boom the United States has experienced over the last 50 years is because the network of highways makes it easy to ship goods. If it continues into a state of disrepair, the long-term hit to our economy could be catastrophic.

“The grades in 2013 ranged from a high of B- for solid waste to a low of D- for inland waterways and levees,” the society wrote in the 2013 report, which is issued every four years. Things got a bit better, but not by much. “Solid waste, drinking water, wastewater, roads, and bridges all saw incremental improvements, and rail jumped from a C- to a C+. No categories saw a decline in grade this year.” Bringing it all up to current standards will be a massive, and massively expensive, undertaking akin to the construction of the interstate highway system. At the bottom line, the US would have to invest $3.6 trillion to bring it all up to snuff by 2020.

“Let’s set our sights higher than a single oil pipeline,” President Obama in the State of the Union, referring to the controversial Keystone XL oil pipeline. “Let’s pass a bipartisan infrastructure plan that could create more than thirty times as many jobs per year, and make this country stronger for decades to come.”

There’s a lot of work to be done. Here’s an overview of the American infrastructure that needs to be fixed, and some good places to start the work.

Highway Funding

In 2007, taxpayers spent $146 billion on highways in the United States, with three-quarters of that coming from state and local governments and the rest from the feds. For major highway projects, federal funds are matched with state or local dollars, especially if the project benefits interstate travel. Much of highway investment comes from the Highway Trust Fund, funded by an 18.4 cent per gallon excise taxes on gasoline, and 24.4 cents per gallon on diesel. There are also revenues generated various taxes on trucks.

Unfortunately, highway fund revenues have been insufficient to fully fund existing highway spending, with Congress authorizing billions of dollars in transfers from the US Treasury’s General Fund into the Highway Trust Fund to keep it solvent, including a $10.8 billion transfer last August. It has ongoing funding needs that will continue unless a more permanent solution can be found, either by raising the national gas tax (which hasn’t been increased since 1993), or some other funding measure. The Congressional Budget Office expects the Highway Trust Fund to have an annual shortfall of $15 billion.

A number of solutions have been proposed including mileage-based fees on drivers, additional gas taxes, or simply pulling more money from the Treasury’s General Fund. And that’s just for highways.

Falling Down Bridges

One in 10 bridges are deemed structurally deficient, meaning the bridge has a significant defect that requires reduced weight or speed limits. (It does not necessarily mean the bridge is unsafe.) Another 14 percent of the nation’s 607,380 bridges are considered “functionally obsolete,” meaning they are no longer suited to their current task because of overuse or a lack of safety features, yet are still in use.

This is not an academic issue. Just last week, an overpass collapsed on I-75 in Cincinnati as it was being dismantled, killing a construction worker and gravely injuring a truck driver. It remains to be seen if the collapse was due to the age and condition of the span, or was an unfortunate demolition accident, but it underscores the risks we face. More well known was the collapse of the I-35 West Mississippi River Bridge in Minneapolis seven years ago. Thirteen people were killed and 145 injured. The bridge had been deemed structurally deficient in 1990, though the collapse was attributed to a design flaw that was exacerbated by an increase in bridge load over time.

“For many years we have underfunded the maintenance of our nation’s physical infrastructure,” Sen. Sanders wrote in an op-ed earlier this week. “I will soon be introducing legislation for a $1 trillion investment, over five years, to modernize our country’s physical infrastructure.”

Waterways

Inland waterways, including canals and rivers, move the equivalent of 51 million truckloads of goods every year—and half the locks are more than 50 years old. According to the ASCE, the problem is so bad that many barge operators have supported an increase in their fuel tax to increase funding to the Inland Waterways Trust Fund, the main user funding mechanism for construction and rehabilitation of inland waterways. So, what needs to be done?

The US Army Corps of Engineers, which maintains most of the system, says it will take $13 billion through 2020, with 27 percent of that going towards new lock and dam facilities and 73 percent toward improving existing facilities. Without an increase in funding, it could take the Army Corps until 2090 to finish everything on the to-do list.

The Olmstead Lock Project on the Ohio River, estimated at $3 billion, has been one of the biggest drains on the Inland Waterways Trust Fund. Originally authorized by Congress in 1988 for $775 million, the project isn’t expected to be completed until 2020. It’s the largest and most expensive inland water navigation installation in the country.

Before legislation introduced last year, the project absorbed almost all of the Trust Fund, though now Congress has separately appropriated funds to pay for the project, freeing up cash for other overdue projects.

Ports, Harbors, and Dams

Then there are the hundreds of commercial ports and harbors. But it’s not the cargo terminals that need upgrading—those have seen significant investment as shipments in standardized containers have risen over the past couple of decades. Instead, it’s the navigation channels that need upgrading, and taxpayers foot that bill. To handle the New Panamax ships—which, at 1,200 feet long and 161 feet wide, are the largest capable of navigating the new locks being built in the Panama Canal—navigation channels as deep as 45 feet will need to be dredged.

The ASCE cites the Port of Savannah, in Georgia—the fourth busiest in the country—as needing improvement, claiming that deepening its channels by just six feet will reduce the cost of shipping in and out of the port by 15 to 20 percent.

Our dams are equally in need of investment and upgrades. In 2012, nearly 14,000 dams were considered a high-hazard, where failure of the dam would likely cause the loss of life. They’re not necessarily unsafe, but if they were to fail, very bad things would result. Complicating matters, just 4 percent of the nation’s 84,000 dams are owned and operated by the federal government; the rest are managed by state governments, regional authorities or private entities like utility companies. These dams are overseen by state, rather than federal, safety programs, many of which lack sufficient funding. South Carolina, for example, has one full-time inspector and one half-time inspector to inspect the state’s 2,380 dams.

They’re also frightfully expensive to maintain. The US Army Corps of Engineers says it will take more than $25 billion to do all of the maintenance required at the 694 dams it manages, and without an infusion of cash it will take 50 years to complete the repairs. According to the Association of State Dam Safety officials, rehabilitation of all dams categorized as high-hazard would cost some $21 billion.

“For the U.S. economy to be the most competitive in the world, we need a first class infrastructure system” said the ASCE report. “We must commit today to make our vision of the future a reality—an American infrastructure system that is the source of our prosperity.”

Whether a Republican Congress and the Democratic President can actually get together and agree to do it is another question entirely.

http://www.wired.com/2015/01/time-fix-americas-infrastructure-heres-start/

 

Catherine Austin Fitts-2015 Forecast Volatile & Violent ~ Greg Hunter


Investment banker Catherine Austin Fitts predicts that 2015 is going to be “volatile and violent.” Fitts says, “I think 2015 is going to be a very rough year. I think you have to be prepared for wild swings. We’ve seen oil come down 50%.” Fitts also points out, “The creative destructive aspects are pretty scary.”

Are we going to have a big U.S. dollar devaluation at some point? Fitts says, “That’s a military question. Where the dollar comes out really comes down to both the covert and overt military capacity of the United States.”

On gold, Fitts says, “I think everybody believes they need some gold. Gold is central bank insurance. . . . Basically, what I say is you have to have a core position.”

Join Greg Hunter as he goes One-on-One with Catherine Austin Fitts, publisher and creator of the Solari Report.
http://usawatchdog.com/lawless-leader…

 

This Is What Gold Does In A Currency Crisis, Euro Edition ~ ZeroHedge


Tyler Durden's picture

Submitted by John Rubino via Dollar Collapse blog,

Yesterday the European Central Bank acknowledged that the currency it manages is being sucked into a deflationary vortex. It responded in the usual way with, in effect, a massive devaluation. Eurozone citizens have also responded predictably, by converting their unbacked, make-believe, soon-to-be-worth-a-lot-less paper money into something tangible. They’re bidding gold up dramatically.

So after falling hard in 2013 and treading water for most of 2014, the euro price of gold has gone parabolic in the space of a couple of months. This sudden rather than gradual awakening is the standard pattern for a currency crisis, mainly because it takes a long time for most people to figure out their government is clueless and/or lying. But once they do figure it out, they act quickly.

Gold in euros Jan 2015

Europe’s gold chart isn’t as dramatic as Russia’s (see it here) because Europe doesn’t depend on oil exports and the euro, while dropping versus the dollar, isn’t yet in free-fall. But with another trillion euros due to hit the market in the coming year, and a series of currency union-threatening political crises in the pipeline, the flight to safety could easily become a stampede.

Europe and Russia, meanwhile aren’t the only countries with incipient currency crises. Here’s gold in Canadian dollars:

Gold in Canadian Dollars Jan 2015

Just to be clear, this isn’t a prediction about the immediate future, but an attempt to illustrate the nature of gold. It behaves this way in crises because it is sound money which can’t be created in infinite quantities by panicked central banks as can euros, Canadian dollars and all other fiat currencies. These charts illustrate what happens when this difference starts to matter.

Right now, the fear is country-specific. Europeans start to distrust their government and shift to gold, without necessarily questioning foundational concepts like big, activist government and central bank management of fiat currencies. They still assume that the euro would be fine if managed correctly.

The next stage will begin when enough local currencies blow up to make people realize that the problem isn’t with specific governments or national forms of money, but with the idea of fiat currency itself. When that happens the global gold chart will look like Europe’s — but with more zeros.

http://www.zerohedge.com/news/2015-01-23/what-gold-does-currency-crisis-euro-edition

How The Swiss National Bank Almost Crushed George Soros ~ ZeroHedge


 Submitted this morning by Andre…nice find, mahalo!
Tyler Durden's picture

Minutes after last week’s Swiss National Bank shocker, jokingly we mused:

… because there would be nothing more ironic if the man who “broke the Bank of England” ended up being FXCMed himself by another central bank, over two decades later and just as he was set to finally retire, at the age of 84, formally, something he supposedly announced in Davos yesterday.

As it turns out, we were almost correct, and according to the WSJ, Soros Fund Management, which manages more than $25 billion for investor George Soros, was betting against the Swiss franc in the fall before it removed those bearish positions.  Why did the Soros so conveniently take off a bet which, with leverage, could have resulted in massive losses for his hedge fund? The WSJ says he did so after “viewing the risk as too high relative to potential gains, said people close to the matter.” Well as long as “people close” think Soros did not have input directly from the Swiss central bank, or perhaps the occasional hint from Kashya Hildebrand, then one can’t help but marvel at the octogenarian’s impeccable timing.

As a result, the franc’s surge last week didn’t have a major impact on Mr. Soros’s firm’s profits, “these people said.” Naturally, if Soros was still short the CHF, he would have suffered massive losses.

Curiously, Soros wasn’t the only one to “luckily” pull his bearish CHF exposure ahead of the 30% move: Brevan Howard Asset Management, run by billionaire Alan Howard , was profiting from a negative bet on the Swiss franc against the dollar before it cut back shortly before the Swiss currency soared. Brevan’s flagship $23.7 billion fund gained 0.8% last week, taking gains for this year to 1.9%.

How lucky.

So Soros and Brevan were spared due to some truly impeccable timing. Others were not as lucky. Here is a quick recap of all the hedge funds (excluding the numerous retail FX brokers such as FXCM that blew up in the aftermath) that have been known to have suffered terminal or partial, but still cripppling, losses. We already know about

  • Marko Dimitrijevic, who survived at least five emerging market debt crises, is closing his largest hedge fund after losing virtually all its money when the SNB unexpectedly let the franc trade freely against the euro, according to a person familiar with the firm. Everest Capital’s Global Fund had about $830 million in assets as of the end of December, according to a client report. The Miami-based firm, which specializes in emerging markets, still manages seven funds with about $2.2 billion in assets. The global fund, the firm’s oldest, was betting the Swiss franc would decline, said the person. A spokesman declined to comment on the losses. Calls to Dimitrijevic weren’t returned.
  • Michael Platt’s BlueCrest Capital Management lost 5.5 percent in its macroeconomic fund through Jan. 16, two people with knowledge of the matter said. Amid the losses, Luke Halestrap and Peter McGarry left the $15 billion Jersey-based firm and BlueCrest shut a portfolio run by currency money manager, Peter Von Maydell, according to people with knowledge of the decisions. Von Maydell, Halestrap and McGarry didn’t reply to e-mails and telephone messages seeking comment.
  • Comac Capital, the $1.2 billion firm run by Colm O’Shea, is returning money to clients after it lost 8 percent from the franc surge. The declines bring its loss this month to 10 percent, according to a person familiar with the matter. London-based Comac will continue to trade with internal money, the person said. A spokesman declined to comment.
  • Fortress Investment Group’s main macro hedge fund lost 7.6 percent last week, a period during which markets were roiled by movements in the Swiss franc. The macro fund’s decline last week brought its losses this year to 7.9 percent, Reuters reported, citing a letter to investors. Fortress didn’t give a reason for the loss in the letter, according to Reuters. Gordon Runte, a spokesman for Fortress, declined to comment.
  • SaxoBank moments ago reported it would lose up to $107 million on the Swiss Bank move.

But while the vast majority of “hedged” speculators were massively short the CHF into the Swiss announcement, there were some who bet against the central bank, and made huge profits.

First and foremost among these, Quaesta Capital AG: “The firm, which oversees $3 billion in Pfäffikon, Switzerland, bought options “a considerable time” ago betting that the euro would drop below 1.20 francs, said Chief Executive Thomas Suter.”

Those bets paid off last Thursday, when the Swiss National Bank ’s decision sent the franc soaring against the euro and delivered a boost to investors in a $120 million Quaesta strategy that is up at least 14% this year, according to a letter to investors.

“We immediately knew that it was going to be a very, very good day for this strategy and its investors,” said Mr. Suter, who said the firm made the bet because of its low cost and high potential rewards.

Omni Partners was another such winner, which “locked in a small profit, by making small trades that it closed out the same day following the massive franc-euro swing, according to a person familiar with the matter. Omni Partners has about $1 billion under management in London.

London-based macro hedge fund Rubicon Global was down 2.3% at the end of the first full week of January but recouped most of those losses, helped by a positive bet on the Swiss franc, said a person familiar with the matter. Rubicon declined to comment.

Stockholm-based Lynx Asset Management, which manages $5.5 billion, gained more than 2% last week, helped by bets against the euro. The firm is up about 4% this year to Jan. 16, said a person who has seen the numbers.

We expect to learn about even more victims and casualties in the coming days as career-ending margin calls can only be pushed straight to voicemail for so long.

As for everyone in the investing world else who was spared the violent move either to the up or downside, fear not: as more central banks retreat from currency wars, now that things are really heating up, the volatility seen last week will be merely a pleasant reminder of what is about to come as the Big Three move from mere soundbites and proceed to all out tactical FX warfare, until one day, China joins in as well. Then all bets are off.

http://www.zerohedge.com/news/2015-01-23/how-swiss-national-bank-almost-crushed-george-soros

 

 

How China Deals With Deflation: A 60% Pay Raise For 39 Million Public Workers


Tyler Durden's picture

While the rest of the developed world, flooded with re-exported deflation as a result of now ubiquitous money printing, scrambles to print even more money in hopes of stimulating the economy when all it is doing is accelerating a closed deflationary loop (at least until the infamous monetary helicopter drop), China – which still has the most centrally-planned economy in the world even if the US is rapidly catching up – has a more novel way of dealing with the threat of deflation: a massive wage hike across the board for all public workers. Two days ago, at a press conference, the Chinese vice minister of human resources and social security Hu Xiaoyi said that China’s 39 million civil servants and public workers will get a pay raise of at least 60% of their base salaries as part of pension plan overhaul.

The hope is that just like in the US where the Federal government would love to be able to do just that and more, surging wages would stimulate the Chinese economy which over the past year has had to content with the double whammy of surging bad loans and the collapse of shadow banking, as well as the burst housing market.

The pay raise “will make sure that the overall incomes for most of these workers will not decrease after the reform, and some of them could actually earn a bit more,” Ziaoyi said, even if he did not provide details of the plan, which will cover civil servants and public workers, such as teachers and doctors.

According to Caixin, top civil servants, including President Xi Jinping and Premier Li Keqiang, will see their monthly base salaries rise to 11,385 yuan from 7,020 yuan (to $1,833 from $1,130), starting in October. Of course, both are billionaires with hidden money around the world, but the raise is all about optics and boosting confidence. The base salaries of the lowest civil servants would more than double to 1,320 yuan. It is unclear if the plans Caixin saw are final.

The impact of the pay raise will be dramatic: according to China’s State Administration of Civil Service, China had nearly 7.2 million civil servants and more than 31.5 million public-sector workers employed by institutions such as schools and hospitals at the end of 2013. Those workers do not contribute to their pension fund, meaning taxpayers fund their retirements.

Caixin has more details on the parallel pension reform:

A reform announced on Jan. 14 by the State Council, China’s cabinet, will see civil servants and public workers start to contribute to the pension program in October. They will make contributions similar to those private-sectors workers, who have been paying in since the late 1990s.

Government agencies and public institutions will pay 20% of their workers’ base salaries to the pension fund on behalf of their employees. The employees will contribute 8% of their salary.

The reform plan says government agencies and public institutions should also introduce an income annuity program for employees. That change will see employers contribute 8% of their employees’ salaries to an annuity fund, while employees pay 4%. The annuity program will provide retirees with another monthly payment.

And while the pre-funding of pensions from current income will provide a small offset to the wage hikes, the net effect will still be one of significant increase in disposable Chinese income.

Hu Jiye, a professor at the Center for Law and Economics at the China University of Political Science and Law in Beijing, said the annuity program and pension scheme will ensure government employees and public workers enjoy the same level of benefits after the reform. That assurance will help the reform make smooth progress, Hu said.

Data from the China Statistical Yearbook show that in 2011 the average government pension paid 2,175 yuan a month per retiree. A private-sector pension paid 1,508 per month.

Pension reform is partly aimed at closing this gap. However, the version of the annuity program for private-sector employees will only cover 6% of them because it is not compulsory, Zhang Chewei, a labor economics expert at the Chinese Academy of Social Sciences, told the Oriental Morning Post.

Some analysts say that the gap will remain an issue in the near term, but over a longer period the authorities could narrow it by pushing more employers to join the annuity program.

What is left unsaid, is that while this wage boost is masked as part of pension reform, what it really is, is an under the radar stimulus for some 39 million Chinese, the bulk of whom will end up with a big net take home pay when all is said and done.

A far more important question is how this move will impact not only inflation in the coming months, but wages for the private sector, whose workers will likewise clamor for a comparable pay rise, and also what the consequences on internal labor migration will be in the near future, now that China’s Lewis Point is assured to be hit far sooner than most had expected.

Last but not least, if China has decided to tackle the inflation, and thus growth, problem from the bottom up instead of top down via rate cuts, this may mean that all those sellside notes that even the smallest drop in the Shanghai Composite means an imminent RRR-rate cut, can be used for kindling.

http://www.zerohedge.com/news/2015-01-22/how-china-deals-deflation-60-pay-raise-39-million-public-workers

Peter Schiff: Swiss Surrender Wins Currency War


Submitted by Tyler Durden on 01/15/2015

by Peter Schiff via Euro Pacific Capital,

By ending its three year currency peg to the weakening euro Switzerland has become the first major economy to surrender in the international currency war, and in so doing has given a long-delayed victory to the Swiss people. Contrary to the indignant reaction by the media and financial establishment, the decision is not a disaster for Switzerland. A continuance of an open-ended peg to the euro could have ultimately ruined the country. Its surprise move, perhaps prompted by the European Central Bank’s recently announced intentions to unleash its own quantitative easing program, may be looked at in the future as the first significant counter-attack against our current global system of monetary insanity.

With a centuries-old legacy of economic independence, the Swiss initially had the good sense to avoid joining the monetary quagmire that became the Eurozone. But when the Swiss National Bank (SNB) decided to enforce a peg against the euro in 2011, the country de facto joined the currency union. The result was that the franc sank along with the euro and SNB’s balance sheet ballooned. In order to maintain those levels, the SNB had to buy approximately $10,000 of euros per year per Swiss citizen! These are enormous sums, even for a rich country. The francs used to buy euros were taken out of the Swiss economy to effectively languish at the SNB. Although the Bank achieved its objective of creating a weak franc, its goal of printing its way to prosperity was far more elusive. In fact, the policy was doomed from the start. If continued indefinitely, the SNB’s balance sheet would have stretched beyond its breaking point.

With the risk of full-blown European QE, bringing with it the prospect of having to back up the toboggan to buy an ever larger quantity of euros, the SNB had no choice but to pull the plug. The mistake was not ending this peg, but in adopting it in the first place. The franc has now rallied anyway (which contrary to conventional “wisdom” is a good thing for the Swiss). The Swiss once again have a strong currency with expanded purchasing power. But now Switzerland is stuck with tens of billions in losses on the SNB’s bloated 500 billion franc foreign exchange reserves. In the meantime, enforcing the peg has led to economic and financial mistakes that market forces must now correct.

Ironically, without the support of the SNB, full-blown European QE may now be a far more remote possibility, and a euro rally against the dollar may not be too far off. Goldman Sachs notes the Swiss’ message is that QE is going to be done and perhaps even larger than previously thought. But perhaps it will have the opposite effect, with tough love from Switzerland forcing the European Union to consider real economic reform rather than QE without Swiss support. In fact, the forces now in motion, accelerated by the SNB’s move, may push the Fed that much closer to launching QE4.

Since the “long dollar, short euro” trade is predicated on the expectation of QE in Europe and rate hikes in the U.S., if we end up with QE4 in the U.S. and no QE at all in Europe, the fireworks in the foreign exchange market are just getting started.

http://www.zerohedge.com/news/2015-01-15/peter-schiff-swiss-surrender-wins-currency-war

Joseph Farrell “News and Views From the Nefarium” Jan15 2015


Servant of Truth submitted this today..mahalo, nice find!

GMOs and geopolitics: the GMO issue may be a hidden issue in the Ukraine and a hidden driving factor behind Russia’s growing opposition to them.

AL HODGES & MICHAEL C. COTTRELL UPDATE – DICK CHENEY & BUSH CABAL OUTED- JANUARY 6, 2015


Note: This “appears” to be a smoking gun which could potentially put Cheney & Bush behind bars for a very long time, time will tell.
Yes indeed, we’re certainly in a time of “revelations”, where the veils will continue to fall until all hidden truths are revealed…
PLEASE DISTRIBUTE AS WIDELY AS POSSIBLE!
I RECEIVED THE FOLLOWING MESSAGE FROM MY CLIENT, MICHAEL C. COTTRELL THIS MORNING; PLEASE BE SO ADVISED:

PLEASE SEND THIS OUT VERBATIM.

“I, MICHAEL C. COTTRELL, B.A., M.S., DO HEREBY SWEAR AND AFFIRM THE FOLLOWING FACTS:

1.  THAT FURTHERANCE TO THE AFFIRMATION GIVEN ON DECEMBER 20, 2014, THIS DOCUMENT WILL SPECIFY ADDITIONAL EXAMPLES OF THE THEFT OF THE AUTHORITIES OF MY COMPANIES AND DELMARVA TIMBER TRUST, et al., BY THE BUSH-CLINTON-FEDERAL RESERVE CABAL (RAT) GANG, AND THE CRIMINAL ACTIVITIES OF G.H.W. BUSH / RICHARD B. CHENEY, et al., REGARDING THE ILLEGAL FUNDING OF THE “DEPARTMENT OF HOMELAND SECURITY” WITH NON-GOVERNMENT MONIES;

2. THAT THE AFOREMENTIONED INDIVIDUALS WERE USING THEIR ELECTED POSITIONS AS A MEANS TO DIRECT “DUAL-USE” EXPORTS OF CHEMICALS AND OTHER MEANS OF MASS MURDER TO IRAQ, et al., VIA BANK ACCOUNTS WITHIN NAMED INTERNATIONAL BANKS AND AUTHORITIES UNDER NSA AND NATIONAL SECURITY DIRECTIVE 26, AND APPROPRIATING THE PROFITS FROM SAID TRANSACTIONS;

3.  THAT THE LETTER, [BELOW], IDENTIFIED AS “15 JANUARY 2002″ ADDRESSED TO THE HONORABLE RICHARD B. CHENEY ON BEHALF OF THE BENEFICIARIES OF THE DELMARVA TIMBER TRUST, et al., AND THE LETTER, [BELOW], IDENTIFIED AS “4 MAY 2001″ TO MR. PAUL BRODERICK OF THE OFFICE OF FOREIGN ASSETS CONTROL — BOTH GIVE DETAILS AS TO HOW THIS ACTIVITY OBFUSCATED THE LAW AND SEIZED THE ASSETS OF A PRIVATE TRUST;

4.  THAT ADDITIONAL INFORMATION AND DOCUMENTS WILL BE FORTHCOMING IDENTIFYING THE ROLES OF OTHER MEMBERS OF THE BUSH FAMILY AND ASSOCIATES, BANKS, ACCOUNTS, AND AMOUNTS THAT WERE USED BY THE BUSH-CLINTON-FEDERAL RESERVE CABAL (RAT) GANG VIA THE FEDERAL RESERVE “TAP” TRADING PROGRAMS — THAT INCLUDED MY COMPANIES AND FUNDS GENERATED BASED ON MY (FRAUDULENT) SIGNATURE(S) THAT WERE IDENTIFIED WITHIN THE 20 DECEMBER 2014 AFFIRMATION;

5.  THAT DELMARVA TIMBER TRUST ACCOUNTS WERE “RAIDED”(VIA TAP AND DERIVATIVE STREAMS) BY MR. CHENEY AND ASSOCIATES (SPECIFICALLY THOSE AT THE U.S. DEPARTMENT OF THE TREASURY, THE BANK OF NEW YORK, AND THE BANK OF ENGLAND) AFTER THE 15 JANUARY 2002 LETTER AND PACKET WAS RECEIVED AT THE WHITE HOUSE VIA FEDEX, AND WAS THE MAJOR SOURCE OF THE NON-CONGRESSIONALLY APPROVED FUNDING OF “HOMELAND SECURITY”;

6.  THAT AS A RESULT OF THIS AND OTHER EGREGIOUS CRIMINAL ACTIVITY, THE PEOPLE’S REPUBLIC OF CHINA AND THE RUSSIAN FEDERATION, ALONG WITH THE 200+ COUNTRIES THAT HAVE SIGNED THE “GOLD TREATY”, HAVE SPECIFIED THAT NO FUNDS WILL BE RELEASED, VIA CURRENCY REVALUATION OR PENALTIES AND REDRESS OF THEFT, UNTIL THE INITIAL STEP OF THE TREATY AND MOSCOW AGREEMENTS HAS BEEN MET, i.e., THE DELIVERY OF THE CODES AND FUNDS TO MICHAEL C. COTTRELL, B.A., M.S., FOR THE FUNDING OF THE NEW TREASURY OF THE REPUBLIC OF THE UNITED STATES OF AMERICA.”

I, MICHAEL C. COTTRELL, B.A., M.S., PRESIDENT OF PENNSYLVANIA INVESTMENTS, INC., LOCATED AT 1157 WEST 7TH ST., ERIE, PA 16502, DO HEREBY SWEAR AND AFFIRM THAT THE ABOVE INFORMATION IS TRUE AND FACTUAL.

/S/ Michael C. Cottrell
Dated 6 January 2015

CHENEY – Cov.:

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Rob Kirby-Financial Meltdown and Confiscation of Your Money Coming in 2015 ~ Greg Hunter


Rob Kirby of KirbyAnalytics.com thinks what is happening with oil prices being cut in half in a matter of months is no accident. Kirby explains, “I look at what is transpiring in the crude oil market as yet another engineered or financial trickery on the part of the financial elites. . . . What this breakdown in the crude oil price is going to spawn another financial crisis. It will be tied to the junk debt that has been issued to finance the shale oil plays in North America. It is reported to be in the area of half a trillion dollars’ worth of junk debt that is held largely on the books of large financial institutions in the western world. When these bonds start to fail, they will jeopardize the future of these financial institutions. I do believe that will be the signal for the Fed to come riding to the rescue with QE4. I also think QE4 is likely going to be accompanied by bank bail-ins because we all know all western world countries have adopted bail-in legislation in their most recent budgets. The financial elites are engineering the excuse for their next round of money printing . . . and they will be confiscating money out of savings accounts and pension accounts. That’s what I think is coming in the very near future.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with gold and derivatives expert Rob Kirby.
http://usawatchdog.com/oil-derivative…