Wednesday, 29 October 2008

WARNING! - November 3/4


Using the prophetic calendar of 360 days, the Twin Towers were destroyed on the 1st day of the seventh month of 2001 (September 11-12). One lunar month later, on the 1st day of the eighth month of 2001 (October 11-12), the legal entity used by true Christians, disassociated itself from the United Nations. In 2008, 7 prophetic years later, the 1st of the seventh month coincided with the October 4/5 and the 1st of the eighth month will coincide with November 3/4.

Please consider that November 3/4 is actually Bul/Heshvan 6 on the Jewish calendar; the same day that Christians began their flight from Jerusalem in the year 66 after Cestius retreated. The "abomination causing desolation" had been placed in the "holy place" the day before. So this could be an important date. It might be a destructive event in New York or Chicago, just before the presidential elections in the United States.

We previously stated:

There is a Scriptural possibility that a catastrophic event, comparable to the fall of the Twin Towers, occurs on October29/30, 2008 somewhere in the USA.

The fall of the global financial system became visible 7 years after the collapse of World Trade Centre and 7 years and 7 days later we saw the drop of 777 points of the Dow Jones on Wall Street.

One lunar month after 9/11 2001, the organization used by modern true Christians, disassociated itself from the United Nations Organizations due to media pressure on October 11, 2001. Another “tower” fell. If this event was part of the fulfilment of the prophecy in Isaiah30:25-26, it is possible that a significant event happens one month after Ethanim/Tishri1 this year, on Bul/Heshvan1.

Preliminary reports indicate that a major disaster “manufactured” by the “false prophet” could occur prior to the presidential election in the United States on November 4. This would be with the intention of promoting the rapid creation of a “New International Order”. In addition, the prophecy about the “death-stroke” against a political system (Revelation 13:14) suggests, that this event will be an action related to war. If these things occur not later than Nov 2/3 (Bul/Heshvan5), then this would be the real sign that Christians have been waiting for, heralding that they begin their “flight” to escape from the final destruction of the antitypical "Jerusalem".


Tuesday, 28 October 2008

Dirty nukes in cities as the "October surprise"?

Dear Readers!

At a news conference on October 22, 2008, U.S. Democratic presidential candidate Barak Obama was asked about a comment by his Vice Presidential running mate Joe Biden that Obama could expect to be tested within six months of the new presidential term by a “generated” international crisis that will force him to make unpopular decisions. Obama said the Delaware senator has occasionally engaged in "rhetorical flourishes," but the essential point was that the new President could expect to be challenged no matter who wins.

Obama held the news conference following a meeting with his national security advisers, who include long standing globalist asset Zbignew Brezezinski. He denied the meeting with his advisors had been called because of political damage stemming from Biden's remarks, in my view a classic ploy for calling more attention to it.

Colin Powell, former Secretary of State (2001-2005), echoed Biden’s warning by referring to an unknown crisis that will come a day or two after the inauguration:

I would start with talking to the American people and talking to the world and conveying a new image of American leadership, a new image of
America’s role in the world. The problems will always be there and there's going to be a crisis which will come along on the 21st, 22nd of January that we don't even know about right now. So I think what the President has to start to do is to start using the power of the Oval Office and the power of his personality to convince the American people and convince the world that America is solid, that America is going to move forward, we are going to fix our economic problems, we're going to meet our overseas obligations.

John McCain and Madeleine Albright added to the furor. Albright called Biden’s statement “a statement of fact,” in that one always has to be prepared “for something unexpected.” McCain raised the specter of nuclear war as he resumed his attack against Obama’s judgment by warning that the next president "won't have time to get used to the office."

Alternative news analysts speculated on the import of these simultaneous warnings by public figures, including their possible relation to a new false flag:

Albright, like Biden and Powell, is an insider minion, so she may know something is up. It is rather suspect that all these voices are saying basically the same thing: Obama will be “tested,” either by an [al-Qaeda] attack, a war or confrontation in the Middle East – read Iran, or Russia….Hopefully, the ACLU’s [Freedom of Information Act request regarding the combat unit deployed domestically as of 10/1/2008] will turn up more information on the emerging police state control grid going online. Unfortunately, we are but one “terrorist event” away from this system being used to identify, track, trace, and round up the opposition. If we are to believe Joe Biden, Colin Powell, and Madeleine Albright, this event may happen as soon as the end of January, 2009.

There has also been wide speculation about an imminent false flag, to be blamed on al-Qaeda, as an “October surprise” designed to influence the outcome of the election. The two scenarios, a staged event before the voting and another manufactured crisis following inauguration, are not mutually exclusive. In this article I argue for both occurring, as part of a multi-phased shock and awe campaign designed to move us into full scale martial law with the help of Barak Obama as the new national savior in a time of peril.

In my view, an October surprise consisting of a staged event in Obama’s home state, such as a dirty nuke detonated in
Chicago, is a hypothesis worth exploring. Such an attack would be designed in part to focus attention on Obama as the global elite’s U.S. President of choice. In a crisis such as urban “terrorism,” the propaganda machine could spring into action to spin Obama’s popular appeal in a time of crisis as well as his argument that the Republicans have failed miserably in not apprehending bin Laden seven years after 9/11.

I believe an urban attack would in fact be but step one in a broader psyop by the globalists to condition the public to accept Obama as a new protective father figure to replace George Bush as part of their final push for a full blown police state on a global scale. This possibility brings into bold relief Colin Powell’s reference (in answering fellow Council of Foreign Relations spin-meister Tom Brokaw’s query about how to respond to the post-inaugural crisis Powell had warned about) to the “power of the President’s personality to convince the American people that America is solid.” As Naomi Klein has revealed in her work on the shock doctrine of disaster capitalism, in the CIA’s basic interrogation manual declassified in 1963, a window of opportunity is highlighted in which torture reduces its victim to a state of traumatized disorientation and childlike regression, creating an opening for the interrogator to be transformed into a protective father figure. This is one of the classic tactics of tyrants across the planet. In the view of Klein and others, it was used after the shock of 9/11 to permit George Bush and others to offer a narrative on the shocking events allowing the profoundly disoriented victims to make sense of the trauma. Hence the extraordinary power of the mind control matrix known as the War on Terror.

My core argument is that the globalists’ final battle plan for world dominance is as follows: the current economic implosion that they themselves engineered, its ongoing exploitation to advance their agenda for worldwide financial and economic control, and finally, additional engineered crises designed to enable full-blown martial law as part of an international police state under their power.

I do not believe the globalists want to see riots or other forms of protest on any major scale in the U.S. because of the huge number of guns still in the hands of the populace and because of their uncertainty about the ability (and willingness) of their forces to prevail in armed conflict with Americans. They worry, in my view, that things could become similarly messy in other parts of the globe. Another mass trauma on the scale of 9/11 – or several back-to-back mass traumas involving large numbers across the globe - would be far more efficient for implementing and justifying worldwide full scale martial law, with its attendant confiscation of guns and detention of dissidents.

There is growing recognition of the commonplace use of false flag operations as a cold-blooded tool, even in so-called democracies, for promoting agendas that serve the interests of the power elite at the price of massive suffering for the common man. The most recent evidence of this criminal culture of death was a revelation by renowned investigative journalist Seymour Hersh in July 2008 that Bush administration officials had recently held a meeting in Vice President Dick Cheney’s office to discuss ways to provoke a war with
Iran. The discussion addressed the idea of disguising Navy seals to look like Iranians, put them on specially built boats that look like Iranian PT boats, and start a fake attack on them in the Straits of Hormuz.

The prospect of an October surprise has already factored into the 2008 campaign, including warnings of another al-Qaeda terrorist attack both from
U.S. intelligence sources and allegedly from al Qaeda itself.

The term “October surprise” stems from the 1980 election campaign between Ronald Reagan and Jimmy Carter to refer to last-minute sensations with the potential to reshape a Presidential race. Such a sensation occurred in the last Presidential campaign in 2004. Going into the final weekend of the campaign, Democratic candidate John Kerry had a good chance of winning. Then an alleged Osama bin Laden videotape was issued: Bush went on to beat Kerry and both men attributed the result to the influence of the tape.


In adding my voice to the widespread speculation about the spate of warnings of coming crises, I again proffer the hypothesis of a staged terrorist attack as an imminent October surprise going into the final weekend of the current campaign.

Monday, 27 October 2008

Internationl financial meltdown predicted in the Bible!

Dear Readers!

The current and global financial crisis predicted in the OT around Tishri1!

I was doing research on the Biblical prophecies predicting the current financial crisis and I was able to find some remarkable warnings.

It was of special interest for me to see that the financial meltdown is associated with the “last days”, the “end” and especially with the “Day of the Trumpet blast”, Ethanim/Tishri1…

First we see in Ezekiel 7 that a “unique” calamity is associated with a “turn of events” (markets) at the coming of the end…

(Ezekiel 7) 5 “This is what the Sovereign Lord Jehovah has said, ‘A calamity, a unique calamity, look! it is coming. 6 An end itself must come. The end must come; it must awaken for you. Look! It is coming. 7 The turn of events must come to you, O inhabiter of the earth, the time must come, the day is near. There is confusion, and not the shouting of the mountains.

Ezekiel continues giving is a cryptic hint for the time of the year (not the year itself) when these financially catastrophic events would unfold. It is at the time of the trumpet blast when all Jews are preparing for Atonement Day…

(Ezekiel 7:14-19) 14 “‘They have blown the trumpet and there has been a preparing of everybody, but there is no one going to the battle, because my hot feeling is against all its crowd. 15 The sword is outside, and the pestilence and the famine are inside. Whoever is in the field, by the sword he will die, and whoever are in the city, famine and pestilence themselves will devour them. 16 And their escapees will certainly make their escape and become on the mountains like the doves of the valleys, all of which are moaning, each one in his own error. 17 As for all the hands, they keep dropping down; and as for all knees, they keep dripping with water. 18 And they have girded on sackcloth, and shuddering has covered them; and on all faces there is shame and on all their heads there is baldness. 19 “‘Into the streets they will throw their very silver, and an abhorrent thing their own gold will become. Neither their silver nor their gold will be able to deliver them in the day of Jehovah’s fury. . .

So we see that “gold and silver”, - literally but also symbolic representing money -, would become worthless in these days. From this prophecy we see that famine and war will be resulting in the near future.

Well, according to the Scriptures, everything is established as true by the word of at least 2 witnesses.

This is why also Zephaniah is connecting the day of YHWH (the Great Tribulation leading to Armageddon) with the failing of gold and silver…

(Zephaniah 1:14-18) 14 “The great day of Jehovah is near. It is near, and there is a hurrying [of it] very much. The sound of the day of Jehovah is bitter. There a mighty man is letting out a cry. 15 That day is a day of fury, a day of distress and of anguish, a day of storm and of desolation, a day of darkness and of gloominess, a day of clouds and of thick gloom, 16 a day of horn and of alarm signal, against the fortified cities and against the high corner towers. 17 And I will cause distress to mankind, and they will certainly walk like blind men; because it is against Jehovah that they have sinned. And their blood will actually be poured out like dust, and their bowels like the dung. 18 Neither their silver nor their gold will be able to deliver them in the day of Jehovah’s fury; but by the fire of his zeal the whole earth will be devoured, because he will make an extermination, indeed a terrible one, of all the inhabitants of the earth.”

Yes, also the NT affirms the concept that riches, gold and silver will become worthless in the last days. Our 3rd witness:

(James 5:1-3) 5 Come, now, YOU rich [men], weep, howling over YOUR miseries that are coming upon YOU. 2 YOUR riches have rotted, and YOUR outer garments have become moth-eaten. 3 YOUR gold and silver are rusted away, and their rust will be as a witness against YOU and will eat YOUR fleshy parts. Something like fire is what YOU have stored up in the last days..

That is an amazing realization and I base my prediction of the further collapse of world trade, currencies and whole national economies on these prophecies! Banks, markets and currencies will collapse first and neither Europe nor Asia will be safe from these calamities. There is no escape until one centralized institution will come up with a so called “international rescue solution”.


Europe on the brink of currency crisis meltdown

The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992. “This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.

The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles. Europe has already had its first foretaste of what this may mean. Iceland’s demise has left them nursing likely losses of $74bn (£47bn). The Germans have lost $22bn.

Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisis”, this time unfolding in Europe rather than America. Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.

Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.

Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.

Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.

The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.

The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world. Inexplicably, the text was never published, though underground copies circulated. Little was done to cool credit growth, or to halt the fatal reliance on foreign capital. Last week, the silent authors had their moment of vindication as Eastern Europe went haywire.

Hungary stunned the markets by raising rates 3pc to 11.5pc in a last-ditch attempt to defend the forint’s currency peg in the ERM.

It is just blood in the water for hedge funds sharks, eyeing a long line of currency kills. “The economy is not strong enough to take it, so you know it is unsustainable,” said Simon Derrick, currency strategist at the Bank of New York Mellon.

Romania raised its overnight lending to 900pc to stem capital flight, recalling the near-crazed gestures by Scandinavia’s central banks in the final days of the 1992 ERM crisis – political moves that turned the Nordic banking crisis into a disaster.

Russia too is in the eye of the storm, despite its energy wealth – or because of it. The cost of insuring Russian sovereign debt through credit default swaps (CDS) surged to 1,200 basis points last week, higher than Iceland’s debt before Götterdammerung struck Reykjavik.

The markets no longer believe that the spending structure of the Russian state is viable as oil threatens to plunge below $60 a barrel. The foreign debt of the oligarchs ($530bn) has surpassed the country’s foreign reserves. Some $47bn has to be repaid over the next two months.

Traders are paying close attention as contagion moves from the periphery of the eurozone into the core. They are tracking the yield spreads between Italian and German 10-year bonds, the stress barometer of monetary union. The spreads reached a post-EMU high of 93 last week.

Nobody knows where the snapping point is, but anything above 100 would be viewed as a red alarm. The market took careful note on Friday that Portugal’s biggest banks, Millenium, BPI, and Banco Espirito Santo are preparing to take up the state’s emergency credit guarantees.

Hans Redeker, currency chief at BNP Paribas, says there is an imminent danger that East Europe’s currency pegs will be smashed unless the EU authorities wake up to the full gravity of the threat, and that in turn will trigger a dangerous crisis for EMU itself.

“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.

A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states.


Sunday, 26 October 2008

Joseph introducing state control in Egypt

Dear Brothers!

Right on schedule, the politician puppets are promising to save us from the crisis caused by the banker puppets by creating "a new world financial order."

Nicholas Sarkozy and Gordon Brown are calling for a "new international financial architecture for the global age" which will establish Rothschild global governance under the guise of "reforming and regulating" markets.

Well, I was studying and tried to see if I could find this pattern in the Scriptures and here is a surprising analogy that I found. It is way off our current interpretation of that account but maybe it applies in an untouched thread…

The manipulation of calamities to re-make society can be traced back to Biblical times. Joseph is best known for predicting seven years of abundance (inflation) followed by seven years of famine (credit- contraction or deflation.)

He is less well known for using this "business cycle" to establish a form of state control. All the cultivated land in Egypt became the property of the crown, and the people farmed it for the king, giving him one-fifth of the produce.

In Genesis 47, Joseph, second in command to Pharaoh, warned of a coming famine, and prepared stock-piles of grain to aid the people through the crisis. When the famine hit the land, the people came to Joseph to buy food stock. A simple transaction was made; the citizens used the national currency to purchase grain.

In verses 14 and 15 however we find an unusual development. After the grain was purchased, Joseph intentionally held the money back, keeping it from being re-circulated into the local economy. The result is predictably catastrophic for the people: Economic crisis.

According to the King James Version, "the money failed" (vs.15), and in the New World Translation it says that the " money has run out". Egypt experienced intentional, government-sponsored deflation in the midst of a natural calamity. The money collapsed.

Needing to eat, what did the citizens do? They brought Joseph their livestock in exchange for grain (vs.16-17). As an agrarian society, livestock represented the industrial basis of the people. Hence, placing this power in the hands of the government, the people's commercial activity was effectively abolished.

They couldn’t just eat the animals instead of trading them for grain because obviously there was no way to keep the meat fresh. Grain would have been the most valuable and stable food source during a drought. Now the people had neither money nor livestock; and a year later they were out of food.

Returning to Joseph, who obviously was in charge of the storehouses, the people begged their leader to take their land and themselves in trade for food (vs.18-19). Property was therefore consolidated under the state, and the citizens literally became slaves in their own country (vs.20-21).

This is a masterful population control strategy. Once the wealth of the nation had been consolidated under Pharaoh's banner via Joseph's actions - monetary wealth, the industrial base, land and productivity, and the people as economic assets - then Joseph instituted a new farming and taxation system (vs.20-24). How did the people respond? They gladly relinquished control of their wealth, property, and themselves (gave up their freedom) for the promise of state-dictated security.

Keep in mind; all of this started through a debasing of the currency system. The manipulation of money is, arguably, the most potent method to rearrange society.

Consider what the father of modern economics, John Maynard Keynes, had to say in 1919.

"There is no subtler, no surer means of overturning the existing basis of society han to debauch the currency." - John Maynard Keynes, The Economic Consequences of the Peace.

Roughly speaking, it's the idea that governments can stimulate the economy through interest rate management and other state-instituted incentive programs. Although the above quote was aimed primarily at inflationary actions, the same conclusion could be made regarding deflationary leveraging.

Anyway, I never thought about it why Joseph acted so harshly with the Egyptians. Mind you, the "king of the south" is the greater modern "Egypt", the US-UK coalition.

Also think about this: Finally "Joseph" was called by a name or title that in truth only belongs to Jesus Christ!!!! He was called "saviour of the earth", "Zaph´e·nath-pa·ne´ah". The NWT explains that the Hebrews understood it as "revealer of hidden things", but that does not matter, since Pharaoh and the Egyptians gave him that name/title and they (and thus he himself) understood it as "saviour of the world".

Is that a pattern, a story of the coming "anti Christ" or "son of perdition?"

Does the Great Tribulation continue for 3.5 years after the faithful are raptured and there are 7 more years to come?


Friday, 24 October 2008

Panic May Force Market Shutdown!

Dear Readers!

I have warned you about 3 weeks ago of a pending "bank run" and an enforced "bank holiday" to prevent it. That's why I adviced all my readers to take out their money now and stock up supplies. This article appeared on the Bloomberg today...

Oct. 23 (Bloomberg) -- Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.
``We've reached a situation of sheer panic,'' Roubini, who predicted the financial crisis in 2006, told a conference of hedge-fund managers in London today. ``There will be massive dumping of assets'' and ``hundreds of hedge funds are going to go bust,'' he said.

Group of Seven policy makers have stopped short of market suspensions to stem the crisis after the U.S. pledged on Oct. 14 to invest about $125 billion in nine banks and the Federal Reserve led a global coordinated move to cut interest rates on Oct. 8. Emmanuel Roman, co-chief executive officer at GLG Partners Inc., said today that as many as 30 percent of hedge funds will close.

``Systemic risk has become bigger and bigger,'' Roubini said at the Hedge 2008 conference. ``We're seeing the beginning of a run on a big chunk of the hedge funds,'' and ``don't be surprised if policy makers need to close down markets for a week or two in coming days,'' he said.
Roubini predicted in July 2006 that the U.S. would enter an economic recession. In February this year, he forecast a ``catastrophic'' financial meltdown that central bankers would fail to prevent, leading to the bankruptcy of large banks exposed to mortgages and a ``sharp drop'' in equities.

Bear, Lehman

The comments preceded the collapse of Bear Stearns & Cos. and Lehman Brothers Holdings Inc. as well as the government seizure of Freddie Mac and Fannie Mae. The Dow Jones Industrial Average, a benchmark for American equities, has lost 37 percent this year, including its biggest daily drop in more than twenty years on Oct. 15.
The Dow average rose 2.5 percent to 8728.73 as of 10:55 a.m. today in New York. Italian Prime Minister Silvio Berlusconi roiled international markets on Oct. 10, first saying world leaders were discussing shutting down global financial exchanges, and then saying he didn't mean it.

``In a fairly Darwinian manner, many hedge funds will simply disappear,'' Roman said, speaking at the same event as Roubini. The hedge fund industry is stumbling through its worst year in two decades and posted its biggest monthly drop for a decade in September. Hedge funds are mostly private pools of capital whose managers participate substantially in the profits from their speculation on whether the price of assets will rise or fall.

`Very Ugly'

Things are getting very ugly also in the emerging markets,'' Roubini said. ``The usual saying is when the U.S. sneezes, the rest of the world catches a cold. Unfortunately, this time around the U.S. is not just sneezing, it has a severe case of chronic and persistent pneumonia. It's becoming a mess in emerging markets.''

Developing nations' borrowing costs jumped to the highest in six years today as Belarus joined Hungary, Ukraine and Pakistan in seeking a bailout from the International Monetary Fund to help weather frozen money markets and a slump in commodities. Argentina risks defaulting for the second time this decade.

``There are about a dozen emerging markets that are now in severe financial trouble,'' Roubini said. ``Even a small country can have a systemic effect on the global economy,'' he added. ``There is not going to be enough IMF money to support them.''
Roubini, a former senior adviser to the U.S. Treasury Department, earlier this month said that the world's biggest economy will suffer its worst recession in 40 years. ``This is the worst financial crisis in the U.S., Europe and now emerging markets that we've seen in a long time,'' Roubini said. ``Things will get much worse before they get better. I fear the worst is ahead of us.''

Now I think it is really time to get your savings if you have not already done it...


The U.S. Dollar Death Dance and Gold

Dear Readers!

Here is a great article for all of you who wondered why the USD is going up during this crisis…

Jim Willie
The Market Oracle
Oct 24, 2008

The US Dollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death. Imagine an old man who just had a heart attack, lost feeling in certain body parts, his mind not working right, plenty of nonsense gibberish coming from his mouth, and now he is dancing hard on some last gasps. The vast liquidation movement is akin to the old man going through an embalming process while dancing atop the tables at the funeral parlor, as bidding proceeds for his cadaver.

Are Americans last to realize the financial structure destruction means the US Economy does not enter a recession, but rather a bizarre unprecedented disintegration? It seems so. The liquidation of speculative positions, the massive de-leveraging, the payout’s of defaulted bonds, these events are the opposite of developments toward revival or resuscitation, like business investment!!

Liquidation is the exact opposite of investment, and precedes job cuts, not job creation.

The following survey of important issues is covered in depth in the October Hat Trick Letter. This month, an additional Crisis Coverage report was included, since too much has been happening, most of it confusing. Plenty of stories are occurring behind the stories, many covered. Here is a quick survey touching the surface on issues discussed and analyzed more in depth for subscribers.

What is pushing the US Dollar up cannot be construed as anything remotely resembling healthy factors. In no way whatsoever does it resemble investment. It is more like paid off death contracts, paid off death investments, paid off transfers from toxic US bonds into what are falsely regarded as safer US bonds with a guarantee from a crippled USGovt. Foreign financial entities are liquidating on massive scale. They need a tremendous amount of US Dollars in order to complete transactions. Also, a tremendous amount of US Dollars are needed for CDSwap payout’s as defaulted bonds are resolved. Almost all CDSwap and other credit derivatives are paid out in US Dollars The Lehman Brothers payout was full of lies, again. The Lehman Brothers total volume of corporate bonds was $160 billion, but $400 billion existed in total CDS volume tied to them! It is no surprise that the Dow and S&P500 stock indexes fell hard (by almost 400 points on Dow) and on the Lehman resolution day. And market mavens boasted of no impact on the Lehman funeral date!

The DTCC (Depository Trust & Clearing Corp) reported only a net $5.2 billion payout on the Lehman Brothers failure CDSwap resolution. The ‘Dis-Trust Clearing Corp’ might want to check credit derivative experts who claim between $220 billion and $270 billion in that total after netting. By the way, the DTCC is the official banking entity that oversees all stock clearing overnight, including all the naked shorting. The de-leveraging process has left the central bankers empty handed, exposed as having empty financial cupboards. Thus the need for massive central bank swaps from the US Fed, which has perversely farmed out its function to foreigners. In fact, the foreign central banks might be in possession of more US$ inventory items than the US Fed So the US central bank has asked foreign central banks to do its job, and to manage the world reserve currency? This amidst a US$ rally!?!

The Credit Default Swaps are capable of burning Hiroshima holes all over the US financial system, resulting in US Economic implosion from eliminated bank and financial system structures almost entirely. The process has only begun, but in darkness. The other purpose for big bailouts was to prevent CDSwap explosions, risking a string of bombs to go off. The key aspect of CDSwap contracts is their hidden nature, with fuses intersecting in the dark.

When the market mavens talk about the de-leverage process, they refer to speculative investments being liquidated. Oftentimes, they do not include in the story how Wall Street firms, desperate to stave off bankruptcy, are targeting viciously their own clients. The big accounts lie in hedge funds, where the private wealthy are being decimated. Credit is being pulled. Margin calls are being delivered. Margin ratios are being raised. Those funds whose positions are aligned with the predators on Wall Street continue in their investment portfolios. Those funds in opposition are attacked with artillery, carpet bombs, and early morning raids. The US Dollar is rallying amidst this type of sinister liquidation.

The result has been numerous spread trades anchored by the USTreasury Bond are forced into sale. That means a USTBond buyback occurs from the short cover on the trade. Whether a spread on mortgage bonds, corporate bonds, emerging market bonds, or crude oil, or gold, the trade is liquidated, and a USTBond is bought back. NO TANGIBLE END DEMAND, ONLY USTREASRY BOND SHORT COVERS. This is the basis for a US$ rally?

How many times have we seen the US stock market go down, non-government bond yields rise, the US Dollar rise, and the USTBond yields fall? That has been the norm in the last few weeks. These are death signals, not investment signals. The US Economy cannot afford liquidation and constricted credit, a well-known fact, seemingly forgotten today. These signals come amidst falling confidence, more bank distress measures, more job loss, more home foreclosures, and lately, trouble with letters of credit at port facilities.

Financial markets, including the US Dollar, have yet to factor in the deep US Economic recession.

The US Dollar rally flies in the face of deteriorating fundamentals. See job cut announcements at Caterpillar, Merrill Lynch, General Motors, Chrysler, several Wall Street firms including Goldman Sachs today. Weekly jobless claims at close to half a million per week, equal to peak during the unrecognized 2001 recession. See the UMichigan consumer sentiment, Philly Fed index, Empire Fed index, leading economic indicators, durable goods orders, on and on. Retail sales, the backbone of the backwards US Economy, are plummeting. That is, the plummet is before inflation price adjustments. Car sales are plummeting also.

Exports are to be worse from the higher US$ exchange rate on the table, combined with slower foreign economies. The improved export trade has been a big boast from the lunatics running the asylum. The US Economy is accelerating in its decline, certain to produce a recession and huge USGovt deficits. That deficit is likely to at least double and possible quadruple next year. USTreasury Bond issuance cannot conceivably finance all, or at least half, of the commitments. The printing press will do the rest, which will cut down the US$ valuation. The US Dollar decline lies ahead, when the distortions slow or come to an end. Gold will soar on the other side of this liquidation.

An extreme backlash attack is coming against the US Dollar Rising import prices in foreign economies have already caused alarm. Foreigners will soon attack the US$ in a matter of time, using heavy US$-based reserves. Their banking sectors are in disarray, primarily because they are intimately tied to the US$ and USTBonds. The process has begun with Brazil and Mexico in Latin America, to use their strong reserves and sell into this queer US$ strength. That is what reserves are for. The process will spread to other nations.

John Embry of Sprott Asset Mgmt has raised the possibility of a December gold futures contract default. He is not predicting it, or claiming it as certain, but rather mentions how talk centers on the December gold contract as having extreme stress for actual delivery. Pressure is building. The December contract not only is end of quarter, but end of year. He suggests a possible default. He said, “there is probably going to be such an event to change perceptions.” He cited a possible force majeure that could act as a “seminal event that defines the whole situation.” He explained that the physical gold price would then dictate the paper gold price, a return to normalcy, and with a gigantic move up in the gold price. Right now the paper gold market is overwhelming the physical side, but the physical side is constricted on supply. He explained that hedge funds are being unwound on a massive scale, slaughtered by margin calls. The long side must call for delivery on many contracts. He also expects there will be many questions on the Exchange Traded Funds soon as well, although those are surely not as important as the COMEX contract defaults.


Thursday, 23 October 2008

What will Obama's 'international crisis' be?

Dear Readers!

Joe Biden’s “guarantee” that an “international crisis” will unfold shortly after President Obama takes office conjures up several different possibilities, but it seems the likely outcome will revolve around an announcement that Iran has developed a nuclear bomb, prompting a potential military attack.

“It will not be six months before the world tests Barack Obama like they did John Kennedy,” Biden told an audience in Seattle this past weekend.

“Remember I said it standing here if you don’t remember anything else I said. Watch, we’re gonna have an international crisis, a generated crisis, to test the mettle of this guy.”

The assured tone with which Biden delivered his forecast was staggeringly convincing, and left the observer in no doubt that there will be a major world crisis shortly after Obama takes office. “Mark my words, mark my words,” Biden stressed, adding that “tough” and “unpopular” foreign policy decisions will have to be made.

“I promise you it will occur,” Biden added, “As a student of history and having served with seven presidents, I guarantee you it is going to happen.”

Biden’s use of the word “generated” is even more startling. One of the dictionary definitions we find for the word “generated” is “to bring into existence; cause to be; produce,” which begs the question, will this be another staged and manufactured crisis like the 9/11 attacks, which occurred less than 8 months after Bush took office?

Or will it be something even more serious, a nuclear conflagration involving Russia or Iran?

John McCain raised the specter of nuclear war yesterday when he warned that the United States faces “many challenges here at home, and many enemies abroad in this dangerous world,” before mentioning the 1962 Cuban Missile crisis.

Echoing Biden’s comments, McCain said the next president “won’t have time to get used to the office” and “I know how close we came to a nuclear war and I will not be a president that needs to be tested. I have been tested. Senator Obama has not.”

What is the test to which McCain and Biden refer, and how can they be so sure that it will arrive shortly after Obama takes office should he win the election as expected? What was Colin Powell referring to on Meet The Press when he said, “There’s going to be a crisis which will come along on the 21st, 22nd of January that we don’t even know about right now.”

The most likely scenario seems to revolve around Iran announcing, or the U.S. government claiming, that they are ready to build their first nuclear bomb.

Indeed, the Mossad front news outlet Debka File reported yesterday that “Iran will be ready to build its first bomb just one month after the next US president is sworn in.” The very next sentence of the report ties this in with Biden’s promise of an international crisis immediately after Obama takes office.

“DEBKAfile’s military sources cite the new US timeline: By late January, 2009, Iran will have accumulated enough low-grade enriched uranium (up to 5%) for its “break-out” to weapons grade (90%) material within a short time. For this, the Iranians have achieved the necessary technology. In February, they can move on to start building their first nuclear bomb,” according to the report.

Of course, the legitimacy of these claims are likely to be completely fabricated - the official U.S. National Intelligence Estimate concluded in December that Iran had suspended its nuclear weapons campaign in late 2003 - but the Israelis may be laying the groundwork for a propaganda offensive similar to the “weapons of mass destruction” scam that preceded the invasion of Iraq.

Will the military assault on Iran occur not under the highly unpopular Bush administration, as many had predicted, but under an Obama presidency? Riding into office on a wave of popular approval and support, Obama will have the political capital to get the country behind the attack if the threat of imminent danger is cited - or at least stand by and allow Israel to do the dirty work.

Will a nuclear flash point on the scale of the Cuban Missile Crisis turn out to be the “international crisis” that Biden so vehemently promised? Or will the event take on a different characteristic.

Bush exploited 9/11 to realize the pre-set agenda of his Neo-Con masters months after he was inaugurated and Bill Clinton seized upon the Oklahoma City Bombing shortly into his second term to expand federal power. What will Obama’s crisis be that enables him to offer his contribution to

building the American police state?

- A terror attack, or a series of attacks, on major American cities, possibly involving crudely designed nuclear bombs or dirty bombs?

- A complete economic collapse and a new great depression leading to food riots and the imposition of martial law?

- A military showdown with Russia should Russia attempt to invade Georgia or another pro-U.S. Russian satellite country?

- A nuclear showdown with Russia should Russia start a nuclear war with Ukraine, as has been threatened?

- The necessity for another military attack on Afghanistan should the Taliban continue to regain control of the country?

- A confrontation with Venezuela should it be revealed that Hugo Chavez is receiving nuclear bomb technology from Russia or Iran?

- A new escalation in the Middle East should Israel deploy its nuclear arsenal to attack Iran, Syria Lebanon, or even Egypt?

Whatever the new “international crisis” that we have been guaranteed turns out to be, you can bet your bottom dollar that the response to it will ultimately lead to more carnage and a further assault on the fast-disappearing freedoms that we still enjoy - and in that sense under an Obama presidency, the more things “change,” the more they will stay the same.