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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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Wed, 05/21/2014 - 22:18 | 4783554 Snidley Whipsnae
Snidley Whipsnae's picture

"Isn't this just Jim Rckards theory re-hashed?"

Yes... Re-hashed and sprinkled with paprika... brings out the flavor in an SDR.

Wed, 05/21/2014 - 19:41 | 4783147 alfred b.
alfred b.'s picture

 

      If I were the buyer, I'd be kicking the tires.....using a firing-squad.

 

 

Wed, 05/21/2014 - 19:41 | 4783148 williambanzai7
williambanzai7's picture

You mean its not Barroso?

Wed, 05/21/2014 - 19:47 | 4783165 dumbStruck
dumbStruck's picture

Print, print, print, sell forward paper gold, silver, everything else that can be converted to chit like crazy, buy whatever forms of paper will help give an illusion of a stable financial system. When the collapse occurs seize the peons assets that haven't been already inflated away, reduce or eliminate entitlements, sell the entire population into perpetual debt slavery.

Wed, 05/21/2014 - 19:55 | 4783182 joego1
joego1's picture

Does anyone really think the pitchfork carrying masses are going to go for a global currency when everyone is at each others throat? There is real nationionalism in starting to take hold in many parts of the world. If anything the world will take steps away from globalization. The globalists will loose this one.

Wed, 05/21/2014 - 19:56 | 4783185 nostromo17
nostromo17's picture

WHy not ask Euroclear who the buyer is, and ask the buyer who their buyer is etc. What is actually in place to prohibit this?

Wed, 05/21/2014 - 20:50 | 4783307 Flagit
Flagit's picture

 

https://www.euroclear.com/en/contact-us.html

If you are already a Euroclear client and you have a query about your day-to-day business with us, log into MyEuroclear to find the specialised contacts you need in our Contacts app.

 

The #3 purchaser of the world's greatest superpower's debt, cannot spell.

Wed, 05/21/2014 - 22:43 | 4783629 Spumoni
Spumoni's picture

In fact, 'specialised' isn't misspelled. The writer is British. His usage is correct vernacular. As WC said, we are two people separated by a common language.

 

Thu, 05/22/2014 - 12:04 | 4785028 Flagit
Flagit's picture

Thank you for the correction.

Thu, 05/22/2014 - 00:10 | 4783810 Overdrawn
Overdrawn's picture

The spelling is correct using the English language.

Like so many descended from the old colonies, Americans have never fully grasped the intricacies of the mother tongue. The language they use is actually 'pigeon English'. Full of misspellings and mispronunciations.

Wed, 05/21/2014 - 20:03 | 4783204 disabledvet
disabledvet's picture

The "secret buyer" is called "what was once known as the Middle Class." The bourgeois hating lunatics have just obliterated what they learned to hate in their textbooks.

I imagine there are votes in this...but the payoff's just to assure "the obliteration of the taxbase" makes their peonic ethnic jail baiting seem a little out of sorts.

Phucking Marxists. Not even good for the bread...let alone circuses.

Wed, 05/21/2014 - 20:03 | 4783205 Bastiat
Bastiat's picture

Where is the money coming from? IMF doesn't have it.

Wed, 05/21/2014 - 20:13 | 4783228 yogibear
yogibear's picture

Keep printing and buting each other's debt. 

Wed, 05/21/2014 - 20:37 | 4783282 Bastiat
Bastiat's picture

IMF can't print and neither can the BIS - or am I wrong about that?

Wed, 05/21/2014 - 23:39 | 4783756 Snidley Whipsnae
Snidley Whipsnae's picture

My suspesion is that all central banks will dance to what ever tune the BIS fiddles... and the Fed is a central bank.

The IMF wishes they had the power of the BIS.

Rickards always comments "when the financial system collapses the IMF will have the only clean balance sheet left"... I'm not buying that line.

To halfass answer your question... I'm not positive but I believe that the IMF can print SDRs.

It's bed time... too late to go digging for answers. Peace.

Wed, 05/21/2014 - 20:29 | 4783264 samsara
samsara's picture

Maybe a few rich families each chipped in some, would that do it?

Wed, 05/21/2014 - 20:03 | 4783206 BeetleBailey
BeetleBailey's picture

The gubbermint locks up people and companies for doing this shit.

The fuckers are criminals...THEY ALL NEED TO BE LOCKED UP FOR LIFE

Wed, 05/21/2014 - 20:06 | 4783209 Ban KKiller
Ban KKiller's picture

BIS=POS that rules the world by controlling the flow? 

Wed, 05/21/2014 - 20:12 | 4783222 yogibear
yogibear's picture

One huge central bankster circle-jerk. Germany buys US debt, the US buys Euro debt, Japan buys US debt, the US buys Japanese debt and the debt creators and wealth stealing continues.

Wed, 05/21/2014 - 20:24 | 4783248 espirit
espirit's picture

ding-ding-ding!

We have a winner.

Debt Charades.

Wed, 05/21/2014 - 22:43 | 4783633 Spumoni
Spumoni's picture

Musical shares.

Wed, 05/21/2014 - 20:15 | 4783226 Youri Carma
Youri Carma's picture

Better Headline: Euroclear and Belgium Key in Understanding East vs West Paradigm Sham of the Highest Order!

Wed, 05/21/2014 - 20:19 | 4783239 Offthebeach
Offthebeach's picture

I'm of the vague notion that SDR's will need some sort of tax to be only paid in SDR's to manufactue value in the new fiat, just like 1913 requried the income tax, payable in FRN's.

World carbon tax maybe. Payable by every debt serf in everything they buy.

Forward !

Wed, 05/21/2014 - 22:45 | 4783618 palmereldritch
palmereldritch's picture

That was the plan as evidenced by Soros (no less) in Copenhagen December 2009 where the ball was to get rolling...

COPENHAGEN — As climate treaty negotiators continued to tussle over how much rich countries should pay to help poor ones deal with climate risks, preserve forests and adopt non-polluting energy technology, the financier George Soros appeared on the sidelines Thursday to identify a new pot of $100 billion that could help pay the bills.

The money, he said at a news conference, would come from a pool of assets made up of an international financial instrument called special drawing rights, or S.D.R.’s.

Placed in a “green fund,” he said, this money could be invested in the most vulnerable developing countries to protect rain forests, plant new forests, expand farming methods that store carbon, and help with adaptation and energy programs.

http://green.blogs.nytimes.com/2009/12/10/soros-hatches-climate-finance-...

But then, thankfully, Climategate had happened just prior in November 2009 to thwart their marketing push and the world began to see the orchestrated fraud of the academic, social engineering and bankster grifters in all its glory

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

http://wattsupwiththat.com/climategate/

 

Thu, 05/22/2014 - 03:57 | 4784014 supermaxedout
supermaxedout's picture

They need a global tax to serve the debts the new currency is going to shed out.

The scam of the Carbon Tax is ideal because every human living on earth is using energy by burning stuff somehow. So its a tax everybody has to pay. And there is no way that one can argue he is not using energy somehow to make his living. Carbon Tax is the ideal and ultimate tax no one can hide.

 

Wed, 05/21/2014 - 20:22 | 4783244 dsty
dsty's picture

there is going to be a one world currency

get used to it

just say'n

Wed, 05/21/2014 - 20:26 | 4783255 samsara
samsara's picture

I get this vision of Robert Redford and Paul Newman at the vey end of "The Sting".

People who shot each other were on the same side....

Wed, 05/21/2014 - 20:31 | 4783268 Peter Pan
Peter Pan's picture

whether it is BIS, IMF, the FED or Russia using Belgium as a conduit makes little difference.

The debt obviously does not belong to the little people. It is simply used to enslave the  people.

The debt needs to be wiped and the people's dependancy on government handouts has to be severely curtailed.

Wed, 05/21/2014 - 20:33 | 4783273 artvanderlay
artvanderlay's picture

Erm, unlikely. Euroclear is the primary clearing house/custodian for bonds outside of the US and in all likelyhood, Russia just tranesferred it's holdings to EC so that it could have more control of the postion than if the bonds were being housed in the US under the scruting of the SEC. Lame artilce.

Wed, 05/21/2014 - 20:40 | 4783288 Duc888
Duc888's picture

 

 

To preserve the republic we need to cut FED and State Gov by a minimum of 50%

 

But....

 

"...... “And of course, the reason is we’ve proved that Communism works. If you give everybody a good government job........."

 

So there ya have it.

http://dailycaller.com/2014/05/21/dem-congressman-weve-proved-that-commu...

 

Wed, 05/21/2014 - 20:59 | 4783334 edwardo1
edwardo1's picture

Mr. Smith wrote:

"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"

That is absolute rubbish. But before I explain why it's absolute rubbish, let me observe that the following turn of phrase: "fiscal structure in the way of a global currency system" is gobblydygook. The term "fiscal" refers to government revenue and the term currency refers to a medium of exchange. Where the planet's monetary system is concerned, the two have no practical connection.

A medium of exchange is issued by a central banking authority which, in the case of the ECB, does not operate under the aegis of a national government. And speaking of the ECB, The Euro, which contrary to skeptics here and abroad isn't going anywhere, and, because it marks its 10,000 ton gold reserve to market, is, contrary to the author's perspective, well suited to fill the medium of exchange void that will be created in the wake of the dollar's demise as a global reserve currency.

This entire piece is, quite frankly, conspiritard pish.

Wed, 05/21/2014 - 22:46 | 4783645 Spumoni
Spumoni's picture

"This entire piece is, quite frankly, conspiritard pish."

 

I hope you won't mind if I quote this line once in awhile. Excellent wordsmithery, sir!

Wed, 05/21/2014 - 21:02 | 4783353 jtz5
jtz5's picture

I'm just glad my kids are only 6 & 4 so they don't have to be in battle for this upcoming shitshow.

Wed, 05/21/2014 - 21:04 | 4783361 Fluxite
Fluxite's picture

Rubish:

 

The US Fed is buying it's own paper.

 

This way the Fed controls interest rates and ensures third parties cannot cause skyrocketing interest rates like they did in Greece.

 

The US Fed is 2 steps ahead of this writer and 2 steps behind the rest of us.

 

 

Wed, 05/21/2014 - 22:05 | 4783522 Almost Solvent
Almost Solvent's picture

Unlike Madoff, who couldn't print his way out of redemptions, the Fed can buy its own shit and play shell games until gas is $19.999/gal and a value meal is $30 at the golden showers.

Wed, 05/21/2014 - 22:54 | 4783665 Spumoni
Spumoni's picture

"Rubish:" Sarc; def/ 1]part rouble, part knish. 2] a conspiracy of Russian Jews to make alot of dough (as soon as they find more potato flour...)

Wed, 05/21/2014 - 21:11 | 4783382 asscannon101
asscannon101's picture

Its Zimbabwe! Zimbabwe! Its Zimbabwe, isn't it!?!? The Faustian circle is now complete!! What did I win!

Wed, 05/21/2014 - 21:14 | 4783385 asscannon101
asscannon101's picture

Its actually more like a Dutch Rudder than a Faustian Circle, but you get the idea...

Wed, 05/21/2014 - 21:13 | 4783386 buzzsaw99
buzzsaw99's picture

The Belgian Whale?

Wed, 05/21/2014 - 21:16 | 4783388 WAMO556
WAMO556's picture

My money is on the International Narco-terrorist criminal gangs that are buying up the debt. I seem to remember a UNODC report that stated that it was Narcotics MONEY that was keeping the banks from going bankrupt. These banks don't just launder money. They move drugs too.

Either that, or it is Al Qaeda doing the buying to help being about their goals.

You guys focus too much on the banks. I focus in who CONTROLS the banks.

Just saying

Wed, 05/21/2014 - 22:56 | 4783667 Spumoni
Spumoni's picture

You mean like Wachovia? Right before Wells Chargo absorbed 'em? Or like Scotland Yard, infiltrated by Mafiya? Who you think bought all those banks when the Enron Scandal drove their share prices into the shitter?

Wed, 05/21/2014 - 21:23 | 4783404 alfbell
alfbell's picture

 

 

Addicted to conspiracy theories. Due to a low intellect and lack of facts as to how the real world works. It is the lazy man's solution. "Right, it's this brilliant financial elite group that has a plan to make us all slaves. I understand it now. Ok back to the football game on the big screen." Pathetic.

Martin Armstrong is a financial and economic genius. He's been involved with governments and global banks all over the world. He's been deep inside and he's seen how they work and what they are made of. His opinion is that they are all confused, are only fighting to keep their own positions and power and are very short sighted. They are all just bungling along and competing against each other. They will make a huge mess. People can't seem to understand that evil CAN NOT be intelligent! It violates the principles of human behaviour and life. That comes from Hollywood and best selling authors of fiction. IT'S FICTION!!

Our leaders are corrupt, uneducated and miseducated and incompetent. They need to be removed. The people need to take back their power, get educated, become vigilant, become productive, become involved and save their countries. But fat chance of that. It will just be the standard routine of recovering from collapses and MAYBE setting up a better system next time, maybe not. 

 

Wed, 05/21/2014 - 22:46 | 4783642 813kml
813kml's picture

Well put, as always governments are competing for a bigger piece of the same pie.  Why would Russia and China be secretly conspiring with Western bankers when together they hold all the cards?  I think they might be willing to accept some kind of IMF SDR as reserve currency as an alternative to war, but that means the US would no longer be head of the table.  And the SDR is a big if because they know that the IMF is another tool of the Banksters.

In their eyes, the dollar must be removed as reserve currency because it allows the US to print ad infinitum to fund its strategy of buying allies and surrounding Russia and China militarily.  Not to mention the US ability to manipulate markets and "sanction" those on its shit list.  Russia and China are both proud countries with long histories, they are tired of the West trying to manipulate them with worthless pieces of paper.

I see the BRICS going their own way and letting the West deal with its own imploded financial systems.

Wed, 05/21/2014 - 23:03 | 4783679 Spumoni
Spumoni's picture

And who, pray tell is going to put anything together better than the existing body of law, hammered out across hundreds of years? The dumbed-down idiocrats from Head Start, No Child Left behind, Common Core? You're right, i suspect, about the confused muddle. But these guys are anything but uneducated. They all have MA's, MS's and PH.D's. Whatever one may think of eggheads, they are not uneducated. Stupid, unimaginative, shortsighted and narrow-minded? Yes. Incompetent? Certainly. If that bunch was able to agree on how to play golf, we might be in trouble with evil conspiracies to rule the world. I don't know that they can tie two shoelaces together.

Thu, 05/22/2014 - 00:43 | 4783854 alfbell
alfbell's picture

 

 

Spumoni:

Education isn't education if it is: authoritarian; full or false data; theory-based instead of reality-based information; lacking a code of ethics; not based on long term views and the future; failing to consider the consequences of its activites (prediction); not inviting creative thinking and innovation; not balanced with practical study and apprenticeships; etc. etc. 

We don't have education in this country (it's controlled by government for Christ's sake). MA's, MS's and PH.D's are bullshit. Look what the people with these degrees, working in our government, financial sector, insurance and health areas, have done to our country. Stop bowing down to and giving credence to American and European academia. They are a HUGE part of our problem!!

Wed, 05/21/2014 - 21:27 | 4783405 RMolineaux
RMolineaux's picture

It appears to me that this article assigns an unfair amount of malevolent intent to the Fed, the IMF and the BIS (its full name, by the way, is The Bank FOR International Settlements).  This last institution was created principally to facilitate the payment of reparations from WWI, so it had no choice but to deal with whatever government evolved in Germany.  The limited gold standard, which was the product of the Bretton Woods conference of 1944, was in effect from 1945 to 1971 when Nixon abandoned it so the US would not run out of gold.  It was in effect during a period of rapid growth in the economies of the US, as well as Germany and Japan, and had the possibility, if adhered to, to provide a world monetary system that was not dominated by one reserve currency.  It is clear that the current arrangement, in which the dollar is the only reserve currency, with no anchor, is disintegrating.  The Bretton Woods period facilitated the expansion of world trade,  which it is currently fashionable to criticize as promoting globalization.  But it had the advantage of requiring participants to maintain fixed exchange rates which had the potential to increase fairness in trade relations, and forced participants to pay close attention to these rates and adopt governmental policies which would maintain their stability.  As the expansion of federal deficits during the guns-and-butter period of the late sixties made it impossible for the US to adhere to the fixed exchange rate system, attempts were made to expand the gold base by the issuance of Special Drawing Rights (SDR's) by the IMF, but the idea was never fully implemented, although they remain on the books.  China favors the expansion of SDR's, as does the IMF.  By doing so, along with adjusting the voting power of states members within the IMF, there arises the possibility of re-establishing fairness and avoiding currency wars.

Wed, 05/21/2014 - 21:27 | 4783411 NoWayJose
NoWayJose's picture

You cannot have fixed currencies unless they are backed by something tangible, like gold or silver. I have no confidence in anything called an SDR basket determined by bankers.

Wed, 05/21/2014 - 21:28 | 4783413 The Fonz...befo...
The Fonz...before shark jump's picture

DTCC owns Euroclear and The Fed owns DTCC...

Wed, 05/21/2014 - 21:29 | 4783416 Auburn
Auburn's picture

Euroclear is a depository.  They don't buy anything - they hold securities on behalf of members firms.  So who is the buyer?  We still don't know.  Stating Euroclear is the buyer is like saying DTC has bought every US equity that is outstanding.   Bad research by Brandon Smith on this one.

Thu, 05/22/2014 - 03:53 | 4784013 smacker
smacker's picture

"Stating Euroclear is the buyer is like saying DTC has bought every US equity that is outstanding.   Bad research by Brandon Smith on this one."

Did you miss this sentence in the article:

"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 [...]"

Wed, 05/21/2014 - 21:30 | 4783424 SMC
SMC's picture

Only those who can increase the money supply without doing work (as in providing equivalent value) and enjoy zero risk would "buy" the debt of a corrupt and insolvent country whose final gasps are already audible for those astute enough to listen.

Wed, 05/21/2014 - 21:36 | 4783442 Nimby
Nimby's picture

Our "way of life" is based on taxation deferred for generations to come.  That's taxation without representation.  That is antithetical to our way of life.

Fri, 05/23/2014 - 23:05 | 4790505 Liberty2012
Liberty2012's picture

AKA Slavery

Wed, 05/21/2014 - 21:59 | 4783506 Woodrox
Woodrox's picture

must have add to read this whole article.....ramble on.

Wed, 05/21/2014 - 22:04 | 4783518 Colonel Walter ...
Colonel Walter E Kurtz's picture

Sounds like Euroclear is allowing someone to convert some of the $200 trillion in interest swap derivatives floating around oversea, since we all know those derivative are as good as gold, and buying up some treasuries. The Fed has been mopping the MBS with QE so why not now start getting rid of the really bad stuff hiding out there. Of course since this is overseas, lets keep it all off the Feds books this time, and just inject fiat into the system. Hell, Draghi is dying for inflation in Euroland anyways...isn't he?

Wed, 05/21/2014 - 22:11 | 4783529 I Write Code
I Write Code's picture

OK, I give up, you got me coppers, it's ....... me.

But if Discover doesn't raise my limit soon, I'm going to have to stop.

Wed, 05/21/2014 - 22:29 | 4783580 robnume
robnume's picture

Jeez, I thought it had already been well established that the Feral Reserve is buying this crap. Nothing to see here, move along.

Wed, 05/21/2014 - 22:31 | 4783587 FreeNewEnergy
FreeNewEnergy's picture

Come on. I thought ZH readers were more intelligent than 90% of the comments here indicate.

The Fed itself is using "Belgium" aka Euroclear to purchase the worthless Treasuries. And the Fed should rightly be called the IMF or the World Bank because they are the main funders of those organizations.

In the end, it's all smoke and mirrors from the money changers and every man for himself for the rest of us.

Sooooooooooooooooooo... diversify into gold, silver, cash (different currencies might not be a bad idea), water, land, tools, seeds, livestock, stores of food, guns, ammo, fuel, vehicles, machinery.

If you have a farm and anything more than five acres, a decent homestead, good storage and good tools, you're all set, no matter what the asshats at the top attempt to feed the masses.

If, OTOH, you are a working stiff who needs a JOB in order to pay bills and survive, you're dead. If you're anywhere within 5 miles of a major city center, RUN FOR YOUR LIFE.

There's no telling when or how the final catastrophe presents itself, but it surely will. The answer lies in being prepared to survive and prosper, ahead of time, NOT after the fact.

Wed, 05/21/2014 - 23:08 | 4783686 Spumoni
Spumoni's picture

Yeah. Its coming alright. Bound to be...peopple have been predicting the final disaster for at least 1200 years that history has recorded. I can't wait any longer. I'm off to have some fun.

Thu, 05/22/2014 - 00:03 | 4783800 A Dollar Short
A Dollar Short's picture

Now, that is the smartest post I have read tonight.

 

Thanks FreeNewEnergy!

Thu, 05/22/2014 - 05:00 | 4784032 runningman18
runningman18's picture

Nope.  It's bigger than the fed.  The fed is just an appendage of the IMF/BIS cabal.  We're talking about the big boys, not some franchise manager like Yellen.

Wed, 05/21/2014 - 22:53 | 4783663 alfbell
alfbell's picture

 

 

Ideally, if one has put themself into the status of "well to do", he/she can buy a farm, set it up so it's off the grid and stock it with water, food, seeds, meat producing animals, machinery, tools, equipment, protection, etc. Your average person has a job (if he's lucky) lives paycheck to paycheck, has debts, major living expenses to support his family, etc. and will never have the wherewithal to prepare for any major economic crisis. It will survival of the fittest (i.e. richest or wealthiest). Those who didn't realize the importance of being able to offer value, something to exchange in the market place, so as to amass some wealth will suffer. The high income earners who are smart enough to convert some of their wealth towards crisis preparation and to protect the rest, will be the ones out in little communities of farms that are self-sufficient. The rest of the masses will burn up in the big metropolitan areas. A natural thinning of the herd. Better do something very smart and very fast if you don't want to be one of the dying cattle.  

Wed, 05/21/2014 - 23:07 | 4783683 NickVegas
NickVegas's picture

"The 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."

 

That has been my working thesis over time. Everything is pointing to an engineered collapse of the American experiment. You will be impoverished, imprisoned if necessary, most likely during an engineered war. Debt and death, that is the globalists specialties. 1913 will live in infamy.

Wed, 05/21/2014 - 23:09 | 4783690 Spumoni
Spumoni's picture

"1913 will live in infamy."

Alongside the names of your schoolteachers, parents and peers who filled your brain with such rubbish.

Wed, 05/21/2014 - 23:08 | 4783687 lunaticfringe
lunaticfringe's picture

It is I, Lunaticfringe, who has been buying US Treasuries in Belgium. I don't want to run out of money in retirement because I plan on living as long as Methusaleh.

Wed, 05/21/2014 - 23:11 | 4783693 Spumoni
Spumoni's picture

I name you, "Lunathuselah!" Are eyes, brave kite, go forth and slay the fire-breathing deficit that stole all our virgins!

Wed, 05/21/2014 - 23:28 | 4783730 IridiumRebel
IridiumRebel's picture

Usually, I find Brandon Smith to have some succinct writings, but I think he misses the mark by giving too much credence to well orchestrated bankster collusion. Humans are foolish to think they can rule the world and it takes a special kinda rich cocksucker to believe that they can do so. This is all just a financial system circling the drain. Buy real shit with your fiat and learn to tend to your lot. I'm turning my fiat into this as well as solid education. My first garden is going well. I'll be here learning as much as I can and passing this knowledge to all who will listen. It's the least I can do. Pay it forward and don't take any shit.

Wed, 05/21/2014 - 23:39 | 4783755 w1LE.e
w1LE.e's picture

We are now accepting callers for these beautiful pendant keychains

Wed, 05/21/2014 - 23:41 | 4783765 Joebloinvestor
Joebloinvestor's picture

Get ready for the "super fiat".

A completely worthless piece of paper that will be granted "legal tender" status everywhere.

It will be used to convince and obfuscate.

 

Just like this bull shit deal.

Thu, 05/22/2014 - 00:05 | 4783773 Government need...
Government needs you to pay taxes's picture

Nobody can predict or manage all the forces required to pull this off.  I'll mention one likely wrench in the works: a Declaration of Independence from a group of current states within the USA at about the time the curtain comes down on the US dollar and US economy.  In all its variants, this is possible throughout the world, though the precedent and the guns in the hands of citizens make this scenario most likely in the US.  In a separate line of (very different) thinking that also supports the conclusion that author's predicted scenario will not come to pass:  the US Federal government doesn't like to give up power, and under a globalist regime, there would be losers from among the current sty of pigs that comprises Congress.  Who would want to bet against their odds when they could continue the status quo in some totalitarian state? 

 

I do expect an economic correction that forces the US to import less, manufacture more domestically, and live more frugal, less caloric, less resource-intensive lives.  I think the pendulum of government tyranny swings back in the direction of smaller, less terrible, while at the same time, the 'bigger/more global is better' mantra gets reversed with regard to corporate entities and government.  In my view, advances in technology have greatly reduced the need for national government, and greatly empower the individual to live a very focused, fulfilling life that includes the optimum amount and type of human social interaction.  There is a chance that customized, home-based manufacturing (3D printing) can vastly reduce the need for huge corporations.  Why cant taxes dramatically decrease as the old reasons for them fade while individuals choose lower tax areas to live?

Thu, 05/22/2014 - 11:22 | 4784858 Atticus Finch
Atticus Finch's picture

"Why can't taxes dramatically decrease as the old reasons for them fade while individuals choose lower tax areas to live?"

because all collected taxes are deposited into the accounts of the owners of the Federal Reserve. This financial grab is unlikely to end.

The Treasury part is only an electronic entry.

Wed, 05/21/2014 - 23:54 | 4783782 lunaticfringe
lunaticfringe's picture

Maybe that fucking Oracle is buying treasuries.

Wed, 05/21/2014 - 23:54 | 4783783 mrmister
mrmister's picture

Even mafia groups turn on eachother, so it is with this group. Brenton woods ultimately failed so will brenton woods 2.

Thu, 05/22/2014 - 00:03 | 4783799 honestann
honestann's picture

Simon says... while endless morons and sheeple accumulate and fight over this paper or that paper, accumulate real, physical gold, silver, platinum, palladium, rhodium... and especially productive equipment you can and do generate an endless supply of goods that never go out of style.

Goods are wealth.  Paper is not.  Simple.

Thu, 05/22/2014 - 00:27 | 4783835 kellycriterion
kellycriterion's picture

Ignorant irrelevant article. All income producing assets in US and Europe are pledged, committed, mortgaged, several times over.

QE isn't stimulus it's cash flow replacement. For governments, banking cartels, and their respective food chains. Cash flow to fund ongoing operations is the only thing that matters. All the rest are accounting fictions.

We've already crossed the Rubicon from confiscation of income producing value to confiscation of the underlying asset. The OPM mafias already have the senior claim on everything that's in a database.

No, jack booted thugs haven't broken door your door and walked off with the silverware.......yet. They haven't needed to and labor is still too expensive for manual confiscation.

Final swindle? It was a done deal in principle over 40 yrs ago. How to Build a Better Crime Syndicate? That could be a working title.

Thu, 05/22/2014 - 00:46 | 4783856 alfbell
alfbell's picture

 

 

 

Spumoni:

Education isn't education if it is: authoritarian; full of false data; theory-based instead of reality-based information; lacking a code of ethics; not based on long term views and the future; failing to consider the consequences of its activites (prediction); not inviting creative thinking and innovation; not balanced with practical study and apprenticeships; etc. etc. 

We don't have education in this country (it's controlled by government for Christ's sake). MA's, MS's and PH.D's are bullshit. Look what the people with these degrees, working in our government, financial sector, insurance and health areas, have done to our country. Stop bowing down to and giving credence to American and European academia. They are a HUGE part of our problem!!

 

Thu, 05/22/2014 - 02:05 | 4783941 unknwn
unknwn's picture

I've been a lurker for 3 years and I've gotta admit I'm a bit put off by all the conspiracy theories flying around here recently. This used to be a place for serious discussion about financial topics. The BiS using Belgium as a front, really? It's a large sum for sure, but Euroclear last reported having €24.2 TRILLION assets under custody. 

So tell me, why isn't this just a scramble for tier 1 capital due to the coming changes in risk-weighting of sovereign portfolios for capital purposes?

Thu, 05/22/2014 - 05:06 | 4784035 runningman18
runningman18's picture

The term "conspiracy theory" is a cop-out for people who don't have a concrete argument to back their criticism.  Also, Euroclear trades 24 trillion in assets as a middleman.  Euroclear does nothing without the say so of the owners of those assets.  You missed the point of the above article entirely.

Thu, 05/22/2014 - 06:03 | 4784047 unknwn
unknwn's picture

You didn't answer my question. I also think you don't even know how Euroclear even works (https://sites.google.com/site/confirmedfundsgroup/articles/howdoeseurocl...).

Its services are used by virtually every major financial player in europe, including banks. So, I'll repeat my question: why isn't this just a scramble for tier 1 capital due to the coming changes in risk-weighting of sovereign portfolios for capital purposes? Feel free to use concrete arguments.

Thu, 05/22/2014 - 02:33 | 4783964 pcrs
pcrs's picture

All previous reserve currencies, originally became this because of great economic achievement. That later morphed into military dominance and an empire, which then always fails. The IMF has no economic achievement,  it produces nothing. It will be a hard sell. This is more part of a death struggle I think. 

Thu, 05/22/2014 - 02:37 | 4783969 q99x2
q99x2's picture

Obama whispered something in Putin's ear that would go down during his second term. Do I believe that an entire group of gold thieves can agree on how to split up the the profits of the theft? No

To many variables. But we'll be able to tell for sure whether or not the West and East are working together by the way the violence, financial or physical, unfolds. If it is a global conspiracy certain sequences will occur. If someone is not in the game then it will become chaotic very quickly. It could be global and then go haywire also. So far I'm betting on oligarchs going directly after other oligarchs. The arrest by China of the JP Morgan banker was a sign that my hunch is correct.

Sit back and watch. Head for the hills if you have to but watch out for the BLM dude's that just got 7,000 machine guns.

Thu, 05/22/2014 - 03:21 | 4783997 kellycriterion
kellycriterion's picture

Hey why don't we have the North Koreans doing this? They're set up to do real physical honest to God paper. And I think we should be doing more real paper. It's about standards, esthetics, craftsmanship, tradition, it shows commitment.

Let's take a vote. Real facades or pretend facades? Accounting fictions that you must imagine or view on a screen vs accounting fictions you can actually touch?

Thu, 05/22/2014 - 03:33 | 4784007 CHX
CHX's picture

Wrong question, IMO. It's not who is the buyer, but WHO FUNDED the new buyer... That narrows it down to one ?

Thu, 05/22/2014 - 03:34 | 4784008 user2011
user2011's picture

I have no opinion on the article.   But I just feel that it is the FED buying those bond back through the proxy.  CIAA and NSAA know it well what the russian will do.   The FED just buy it back through proxy so that it won't tank usd and won't alarm the US sheeples.   Also, it may confuse the mass about someone other than Fed will support the usd, in the event someone try to dump the treasury.

Thu, 05/22/2014 - 06:30 | 4784060 falak pema
falak pema's picture

Sounds too good to be true! 

You mean to say there is a plan up there that makes Cheney's "Our way of life non negotiable" into a pipe dream and which restores FDR's multipolar dream that went up in smoke due to the Cold War scare?

We could return to a functional and rational UN/BW/ Fixed exchange rate system where social and capitalist agendas are treated on an EQUAL footing without preference for uber nation state rapist agendas as in Africa today (or in ME since Saud handshake) ? 

That East West Paradigm and nuclear sabre rattling is all smoke and mirrors?

I say YIPEE, let her rip this global system where nobody is top dog and where nobody can pull the wool over our eyes using "land of the free and home of the brave" bull shit. 

Maybe we will see more corrupt politicians and bankstas looking for jobs, and some serious thought paid to defining a NEW PARADIGM which does not destroy the planet in fossil fuel monopoly plays! 

The Idea that Euro Clear and IMF can be SPECTRE of James Bond type fantasies is absurd.

These so called global institutions will have to bow to people's needs all over the world, if we get rid of concentration of power like today in Pax Americana construct.

When a corrupt system collapses there is always the hope of a new system that addresses the REAL issues. And God knows there are real issues like the pollution/acidity of the Oceans and Air and the melting Antarctic to solve out there. And mal distribution of wealth since 40 years, ever since we revoked BW under Pax Americana hubris and war economy.

And, this article talks about current SYMPTOMS of systemic collapse not about CAUSES...

We ARE driven by FACTS in our ACtS, not by obscurantist theory.

Thats Western Civilization's greatest claim to fame and fortune. 

So play on Macduff! 

Thu, 05/22/2014 - 06:35 | 4784078 mfields111
mfields111's picture

Most definitely China is not part of this Euroclear, and now Russia and China are doing major business together.  I seriously doubt that Russia dumped all those US Treasuries to Buy Gold and secretly bought the treasuries it just dumped through Euroclear.  If it was, why buy all that gold with the money?  Why are all those Bric nations wanting to dump the dollar if a global central bank conspiracy of which they are a part is secretly buying them up? Are there globalists who are attempting to dominate the world economy for private gain? Yes. Are they winning this game? Not a chance. Their end game is to get the east and west fighting each other so they can control both..no doubt...but the bric nations, the eurasian partnerships..they are absolutely not part of this game and they are building huge strength and are not falling for the traps left by the globalists..they don't fall into any of them.  The globalists want to start a war between east and west in Ukraine.  Is it happening?  No .  Is Russia a puppet of Euroclear bringing its troops into Ukraine to 'battle' the West puppet regime in Kiev? No.  Likely Euroclear is run by JPMorgan all right and its the secret way the us is continuing Qe despite what they say about tapering and yes the globalists do dominate the US government and its puppet president but they are decidedly not having their way in the global economy.

Thu, 05/22/2014 - 07:13 | 4784125 esum
esum's picture

new currency backed by LEAD ...

Thu, 05/22/2014 - 09:03 | 4784378 Sharkie78
Sharkie78's picture

I believe the real person behind this article is no other then James Rickards . If you read the content as well as the style of writing it's 100% match to his book on currency wars.

Thu, 05/22/2014 - 10:29 | 4784645 Atticus Finch
Atticus Finch's picture

"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."

True, unless Russia and China are actually leaving the relationship.

My ongoing question, which is still unanswered, is why would Russia and China want to become part of a clearly Western goal. In the best of circumstances they would be the lesser of equals at the table.

Perhaps, I am wrong but with the BRICS setting up an alternate bank to the IMF, why wouldn't these countries go there own way?

There seems to be an evolving critical mass in this direction.

Sat, 05/24/2014 - 11:19 | 4791202 Seize Mars
Seize Mars's picture

Atticus

 

My ongoing question, which is still unanswered, is why would Russia and China want to become part of a clearly Western goal. In the best of circumstances they would be the lesser of equals at the table.

Remember when the Swiss started pegging the SFr to the Euro? Clearly that was not in the best interest of the Swiss or their currency. Similarly to your question, these paradigms and their agents are not interested in "what's best for...<people living inside of some crayola-colored boundary on a map>."

Of course it's not in the best interest of China, or Russia, or America, or Britain, or Germany, or France...

It's in the best interest of David Rockefeller, Lord Rothschild, and their sycophants.

It's bizarre, but you know every single crazy-ass conspiracy theory has a way of actually being shown to be true.

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