Who Is The New Secret Buyer Of U.S. Debt?

Tyler Durden's picture

Submitted by Brandon Smith of Alt-Market blog,

On the surface, the economic atmosphere of the U.S. has appeared rather calm and uneventful. Stocks are up, employment isn’t great but jobs aren’t collapsing into the void (at least not openly), and the U.S. dollar seems to be going strong. Peel away the thin veneer, however, and a different financial horror show is revealed.

U.S. stocks have enjoyed unprecedented crash protection due to a steady infusion of fiat money from the Federal Reserve known as quantitative easing. With the advent of the “taper”, QE is now swiftly coming to a close (as is evident in the overall reduction in treasury market purchases), and is slated to end by this fall, if not sooner.

Employment has been boosted only in statistical presentation, and not in reality. The Labor Department’s creative accounting of job numbers omits numerous factors, the most important being the issue of long term unemployed. Millions of people who have been jobless for so long they no longer qualify for benefits are being removed from the rolls. This quiet catastrophe has the side bonus of making it appear as though unemployment is going down.

U.S. Treasury bonds, and by extension the dollar, have also stayed afloat due to the river of stimulus being introduced by the Federal Reserve. That same river, through QE, is now drying up.

In my article The Final Swindle Of Private American Wealth Has Begun, I outline the data which leads me to believe that the Fed taper is a deliberate action in preparation for an impending market collapse. The effectiveness of QE stimulus has a shelf-life, and that shelf life has come to an end. With debt monetization no longer a useful tool in propping up the ailing U.S. economy, central bankers are publicly stepping back. Why? If a collapse occurs while stimulus is in full swing, the Fed immediately takes full blame for the calamity, while being forced to admit that central banking as a concept serves absolutely no meaningful purpose.

My research over many years has led me to conclude that a collapse of the American system is not only expected by international financiers, but is in fact being engineered by them. The Fed is an entity created by globalists for globalists. These people have no loyalties to any one country or culture. Their only loyalties are to themselves and their private organizations.

While many people assume that the stimulus measures of the Fed are driven by a desire to save our economy and currency, I see instead a concerted program of destabilization which is meant to bring about the eventual demise of our nation’s fiscal infrastructure. What some might call “kicking the can down the road,” I call deliberately stretching the country thin over time, so that any indirect crisis can be used as a trigger event to bring the ceiling crashing down.

In the past several months, the Fed taper of QE and subsequently U.S. bond buying has coincided with steep declines in purchases by China, a dump of one-fifth of holdings by Russia, and an overall decline in new purchases of U.S. dollars for FOREX reserves.

With the Ukraine crisis now escalating to fever pitch, BRIC nations are openly discussing the probability of “de-dollarization” in international summits, and the ultimate dumping of the dollar as the world reserve currency.

The U.S. is in desperate need of a benefactor to purchase its ever rising debt and keep the system running. Strangely, a buyer with apparently bottomless pockets has arrived to pick up the slack that the Fed and the BRICS are leaving behind. But, who is this buyer?

At first glance, it appears to be the tiny nation of Belgium.

While foreign investment in the U.S. has sharply declined since March, Belgium has quickly become the third largest buyer of Treasury bonds, just behind China and Japan, purchasing more than $200 billion in securities in the past five months, adding to a total stash of around $340 billion. This development is rather bewildering, primarily because Belgium’s GDP as of 2012 was a miniscule $483 billion, meaning, Belgium has spent nearly the entirety of its yearly GDP on our debt.

Clearly, this is impossible, and someone, somewhere, is using Belgium as a proxy in order to prop up the U.S. But who?

Recently, a company based in Belgium called Euroclear has come forward claiming to be the culprit behind the massive purchases of American debt. Euroclear, though, is not a direct buyer. Instead, the bank is a facilitator, using what it calls a “collateral highway” to allow central banks and international banks to move vast amounts of securities around the world faster than ever before.

Euroclear claims to be an administrator for more than $24 trillion in worldwide assets and transactions, but these transactions are not initiated by the company itself. Euroclear is a middleman used by our secret buyer to quickly move U.S. Treasuries into various accounts without ever being identified. So the question remains, who is the true buyer?

My investigation into Euroclear found some interesting facts. Euroclear has financial relationships with more than 90 percent of the world’s central banks and was once partly owned and run by 120 of the largest financial institutions back when it was called the “Euroclear System”. The organization was consolidated and operated by none other than JP Morgan Bank in 1972. In 2000, Euroclear was officially incorporated and became its own entity. However, one must remember, once a JP Morgan bank, always a JP Morgan bank.

Another interesting fact – Euroclear also has a strong relationship with the Russian government and is a primary broker for Russian debt to foreign investors. This once again proves my ongoing point that Russia is tied to the global banking cabal as much as the United States. The East vs. West paradigm is a sham of the highest order.

Euroclear’s ties to the banking elite are obvious; however, we are still no closer to discovering the specific groups or institution responsible for buying up U.S. debt. I think that the use of Euroclear and Belgium may be a key in understanding this mystery.

Belgium is the political center of the EU, with more politicians, diplomats and lobbyists than Washington D.C. It is also, despite its size and economic weakness, a member of an exclusive economic club called the “Group Of Ten” (G10).

The G10 nations have all agreed to participate in a “General Arrangement to Borrow” (GAB) launched in 1962 by the International Monetary Fund (IMF). The GAB is designed as an ever cycling fund which members pay into. In times of emergency, members can ask the IMF’s permission for a release of funds. If the IMF agrees, it then injects capital through Treasury purchases and SDR allocations. Essentially, the IMF takes our money, then gives it back to us in times of desperation (with strings attached).  A similar program called 'New Arrangements To Borrow' (NAB) involves 38 member countries.  This fund was boosted to approximately 370 billion SDR (or $575 billion dollars U.S.) as the derivatives crisis struck markets in 2008-2009.  Without a full and independent audit of the IMF, however, it is impossible to know the exact funds it has at its disposal, or how many SDR's it has created.

It should be noted the Bank of International Settlements is also an overseer of the G10. If you want to learn more about the darker nature of globalist groups like the IMF and the BIS, read my articles, Russia Is Dominated By Global Banks, Too, and False East/West Paradigm Hides The Rise Of Global Currency.

The following article from Harpers titled Ruling The World Of Money,” was published in 1983 and boasts about the secrecy and “ingenuity” of the Bank Of International Settlements, an unaccountable body of financiers that dominates the very course of economic life around the world.

It is my belief that Belgium, as a member of the G10 and the GAB/NAB agreements, is being used as a proxy by the BIS and the IMF to purchase U.S. debt, but at a high price. I believe that the banking elite are hiding behind their middleman, Euroclear, because they do not want their purchases of Treasuries revealed too soon. I believe that the IMF in particular is accumulating U.S. debt to be used later as leverage to absorb the dollar and finalize the rise of their SDR currency basket as the world reserve standard.

Imagine what would happen if all foreign creditors abandoned U.S. debt purchases because the dollar was no longer seen as viable as a world reserve currency.  Imagine that the Fed's efforts to stimulate through fiat printing became useless in propping up Treasuries, serving only to devalue the domestic buying power of our currency.  Imagine that the IMF swoops in as the lender of last resort; the only entity willing to service our debt and keep the system running.  Imagine what kind of concessions America would have to make to a global loan shark like the IMF.

Keep in mind, the plan to replace the dollar is not mere "theory".  In fact, IMF head Christine Lagarde has openly called for a "global financial system" to take over in the place of the current dollar based system.

The Bretton Woods System, established in 1944, was used by the United Nations and participating governments to form international rules of economic conduct, including fixed rates for currencies and establishing the dollar as the monetary backbone. The IMF was created during this shift towards globalization as the BIS slithered into the background after its business dealings with the Nazis were exposed. It was the G10, backed by the IMF, that then signed the Smithsonian Agreement in 1971 which ended the Bretton Woods system of fixed currencies, as well as any remnants of the gold standard. This led to the floated currency system we have today, as well as the slow poison of monetary inflation which has now destroyed more than 98 percent of the dollar’s purchasing power.

I believe the next and final step in the banker program is to reestablish a new Bretton Woods style system in the wake of an engineered catastrophe. That is to say, we are about to go full circle. Perhaps Ukraine will be the cover event, or tensions in the South China Sea. Just as Bretton Woods was unveiled during World War II, Bretton Woods redux may be unveiled during World War III. In either case, the false East/West paradigm is the most useful ploy the elites have to bring about a controlled decline of the dollar.

The new system will reintroduce the concept of fixed currencies, but this time, all currencies will be fixed or “pegged” to the value of the SDR global basket. The IMF holds a global SDR summit every five years, and the next meeting is set for the beginning of 2015.

If the Chinese yuan is brought into the SDR basket next year, if the BRICS enter into a conjured economic war with the West, and if the dollar is toppled as the world reserve, there will be nothing left in terms of fiscal structure in the way of a global currency system. If the public does not remove the globalist edifice by force, the IMF and the BIS will then achieve their dream – the complete dissolution of economic sovereignty, and the acceptance by the masses of global financial governance. The elites don’t want to hide behind the curtain anymore. They want recognition. They want to be worshiped. And, it all begins with the secret buyout of America, the implosion of our debt markets, and the annihilation of our way of life.

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nope-1004's picture

Who can print at will?


gmrpeabody's picture

I don't know who, exactly..., but I think I know where the money comes from.

(hint: your and my retirement)

So What's picture

I'm always astounded at how fast the chosen tribe destroys America.

Slave's picture

And, it all begins with the secret buyout of America, the implosion of our debt markets, and the annihilation of our way of life.

And the sheep will be begging for it all the way...

SumTing Wong's picture

All you crazy conspiracy theorists...the real entity purchasing all those T-bills? It's me. I sold my 1984 Yugo and took that money to buy a couple of savings bonds. Sorry to have caused the confusion.

Manthong's picture

Wut are U f.n saying… that the Belch do no have the capital to buy all of the superfluous US debt instuoomentations that the banksters feel like creating?

Say it ain’t so.


Supernova Born's picture

The national garb of Belgium is assless chaps and their national motto is "Hello, sailor".

Manthong's picture

Those airy chaps seem very appropriate for one mr. van rump boy.

Supernova Born's picture

The Keynesians' Waterloo.

How fitting.

Manthong's picture

um.. I do not understand..

Is this waterloo something like a water evacuation treatment for van rump boy?

sleigher's picture

"I'm always astounded at how fast the chosen tribe destroys America."

This vernacular is interesting in what is acceptable.  Almost code...

old naughty's picture

no code; not hidden...

In plain sight !

Oracle of Kypseli's picture

I am not buying anything from this article. We need proof, not theory. One can spin 100 different scenarios about this.

IMHO and many other ZHedgers, it is the FED itself through various dark pool entities.


Sean7k's picture

Brandon seems to forget the controlling power the US has over the IMF. Since no action can be approved without a US vote in favor. So, Congress would have to "go along". I'm not saying this could not happen, but it is not just a matter where an internatioinal organization freezes us out.

I agree, he "proves" nothing. However, why the need to prove anything? We know the world is in the last throes of a totatlitarian orgasm. The means or method are immaterial. Consequently, it will be up to The People, worldwide, to decide to go along. If we refuse, it will matter not what ploys are used. 

Stop participating, stop respecting, go black markets. They only have power if you give it to them.

RiverRoad's picture

And NATO's headquarters are in Belgium......how convenient.

Syrin's picture

So will the new currency be gold backed?

EscapingProgress's picture

The new currency will be backed with lies, same as the old currency.

knukles's picture

This is not new news... EuroClear, I mean, not waffles.

LetThemEatRand's picture

Yeah, I drank some of that EuroClear in college.  Leaves you broke and with a nasty hangover.

kito's picture

we used to put them in jello shots

gmrpeabody's picture

Can make you blind, they say.

Harbanger's picture

and yet we wonder what happened.

Handful of Dust's picture

I thought 'Ur All Clear' was that new prostate medicine. I guess I was spelling it rong.

Oracle of Kypseli's picture

Just spilled coffee on my keyboard! 

knukles's picture

That's Everclear, the depository of perpetual funds


I'm not sure its the IMF or BIS.  They have accounts directly at the Fed, holdings there showing up as "official foreign".
This stinks to me of some third party like a GS, JPM or Citadel, whomever, being engaged by the Fed/Treasury to purchase the securities so that they do not show as "official" and thus understates the reported monetization.

LetThemEatRand's picture

That's probably a good bet.   

DeadFred's picture

But Goldman isn't known for it's altruism so where did they get the cash that doesn't show a paper trail. The big banks may all be cesspools of darkness but they can't directly print fiat.

SumTing Wong's picture

So which person or people in places of power used to work at Goldman? Might those officials have "helped" their former employer?

Once a Goldmanite, always a dickhead. Or something like that.

TheReplacement's picture


That is how the Fed "prints".  Why would a bank "printing" electronic fiat be any different?  We aren't talking about dollars backed by gold.  We aren't even talking about dollars backed by paper.  We are talking about 1s and 0s in a computer.  Anyone who has access can "print".

Queue Wang Dong. 

RabbitChow's picture

Yah, that's in the hands of a low-grade GS 5 Treasury employee who is told to click the mouse button once or twice a day.  Lots of work there.

piliage's picture

Belgium? International plot of world domination? Can only be one thing... http://blogs.discovermagazine.com/sciencenotfiction/files/2010/11/dr-evi...

harposox's picture

Interesting idea. Here's another thought: We know from the aftermath of the 07/08 crisis that the U.S. Treasury sent bailout funds to the ECB and various European banks... Could this be the ECB, returning the favor?

old naughty's picture

all collaterals are in the vault, underwater and burned.


"...The East vs. West paradigm is a sham of the highest order."

Isn't that the kicker? Not what it seems...

Only one invincible hand, stirring.

SumTing Wong's picture

Kind of like a reacharound???

TheFutureReset's picture

ECB? Not likely, they have a mountain of shit at home and don't have the means either. Scary thought, the Fed doesn't know either. They are consistently incompetent, it'd only be fitting if some player or group of players is manipulating the Fed's manipulation. 

free_lunch's picture


Good luck, and don't be evil.

fockewulf190's picture

Didn´t the Fed print trillions and lent it to a bunch of EU foreign banks not so long back?   Could it be plausable that Dragi is just printing billions of Euros in secret, buying T-Bills with it for the Fed, and just giving them to Belgium as well as other EU nations?  I remember seeing a list of T-Bill holdings by EU countries recently, and they all are way up.  Sounds like the Fed asked for a favor, and they are getting it.

Hulk's picture

waffles with Aunt jemima syrup, datz razist !!!

TheReplacement's picture

Yeah but if you refuse the syrup you will be called racist for putting down a black woman.  Irony at its best.

bbq on whitehouse lawn's picture

That becomes less funny with time, and more important.

kill switch's picture

I posted this in another

As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying



Vote down!


Let's get this right class, the fucking Belgium’s have an extra $20,000.00 per person to buy fucking toilet paper of U.S. T's ???? This is the biggest kiting scheme in history, thanx Yellen...Proves their NOT tapering...

Jumbotron's picture

"My investigation into Euroclear found some interesting facts. Euroclear has financial relationships with more than 90 percent of the world’s central banks and was once partly owned and run by 120 of the largest financial institutions back when it was called the “Euroclear System”. The organization was consolidated and operated by none other than JP Morgan Bank in 1972. In 2000, Euroclear was officially incorporated and became its own entity. However, one must remember, once a JP Morgan bank, always a JP Morgan bank."


Morgan would be proud to know that his legacy lives on.  For he saved America with his own funds after the Panic of 1907

"The panic might have deepened if not for the intervention of financier J. P. Morgan,[3] who pledged large sums of his own money, and convinced other New York bankers to do the same, to shore up the banking system. At the time, the United States did not have a central bank to inject liquidity back into the market. By November, the financial contagion had largely ended, only to be replaced by a further crisis. This was due to the heavy borrowing of a large brokerage firm that used the stock of Tennessee Coal, Iron and Railroad Company (TC&I) as collateral. Collapse of TC&I's stock price was averted by an emergency takeover by Morgan's U.S. Steel Corporation—a move approved by anti-monopolist president Theodore Roosevelt. The following year, Senator Nelson W. Aldrich, father-in-law of John D. Rockefeller, Jr., established and chaired a commission to investigate the crisis and propose future solutions, leading to the creation of the Federal Reserve System.[4][5] "

And...yep...Morgan and the banksters colluded together after the Panic of 1907 to wrest Constitutional control of America's finances from the people and give it to themselves.

And in 1913 America died.  Shot to death by two bullets to the head.  The first being the Revenue Act of 1913 setting up the federal income tax and the I.R.S. to make sure the serfs paid their fair share.....and the second bullet was the The Federal Reserve Act of 1913.





Yes_Questions's picture



I guess this article points to a possible third bullet fired just to make sure?