CHINA TO PURCHASE THE FEDERAL RESERVE

By JC Collins

 

In essence, China has been slowly buying up the Federal Reserve for some time now.  If you can call it a purchase.  Its more of a negotiation over assuming the liabilities of both the Federal Reserve and the U.S. Treasury.

The Federal Reserve is the largest holder of U.S. debt at $2.1 trillion.  China is second at $1.3 trillion.  Think of it as the United States government doing a debt consolidation of all its treasury bonds because it can no longer pay or service the debt.

which-countries-bought-treasuries-2009

China, or the BRICS countries, and/or a consortium of international interests, most likely organized through the I.M.F., will manage the U.S. debt through exchange rate increases and trade tariffs.

The reality for Americans for the next decade or more will be price increases/inflation of 30% to 50%, segmented by industry and region, until such a time that its debt, or a negotiated margin of their debt, is cleared from the books.

The post WW2 boom in the United States was funded by the exportation of the dollars inflation to what is now the emerging markets.  Americans lived on the backs of other countries.  Now the tables have turned.  Or have been turning for many years already.  This would explain outsourcing, trade agreements, immigration, favorite nation status, etc..

Why would China and other countries take on the risk of this debt?  Simple, it’s economic reset or economic collapse.  Its in the worlds interest to re-structure the U.S. debt to save the whole whale from beaching itself.

Rumors are circulating that the U.S. dollar will have a rate for in country use, and a separate international rate.  That is because the U.S. treasury and the Federal Reserve are about to be severed from each other.  The Treasury will control the in country dollar, and the “international reserve” dollar will be controlled by China and or the I.M.F. consortium of debt holders.

The U.S. in fact defaulted back in October of 2013.  This has not been told to the public at large.  Why would the congress insinuate that the debt ceiling is now irrelevant?  The only way the debt ceiling, or debt limit,(eg. the amount the government can borrow) can become irrelevant is if the U.S. has in fact defaulted and the process of default negotiations are taking place.  Think of it as the rest of the world cutting up the credit cards belonging to the United States government.

China has recently purchased the JP Morgan building in Manhattan for $725 million.  One could reason that they have in fact purchased all of JP Morgan.  And I’m sure it will soon be announced that China has or is in the process of purchasing other Western banks and physical assets. These banks make up the majority owners of the Federal Reserve.  (edit:  Big call out to Archer for catching my typo and error in the amount which the building was sold.)

http://www.bloomberg.com/news/2013-10-18/jpmorgan-tower-sale-sets-record-for-chinese-in-new-york.html

The gold reserves of the west have been depleted by China.  Some say there is no gold left.  This is more physical assets gone from the legers of the Western banks.  The system of debt based money creation of the Western world is dead.  It’s over.  The shift East is in the final stages of completion.

Obama’s so called “pivot east” is less about positioning assets to counter the stirring of the eastern dragon, and more to do with making those military assets easy to confiscate when the terminal day arrives.  (edit:  not Obama specifically, but the Federal Reserve system and the military it controls.  One assumes the rhetorical is understood.)

It will happen over a weekend, as many have already predicted.  The televisions will announce the largest deal in financial history between the Federal Reserve and China.  They will discuss how all the worlds currencies have been revalued to reflect true production ratios and physical assets.  Accounts will be balanced.  War criminals will be prosecuted.

This is only a summary post to capture the broad strokes.  Keep checking back as I will post a more detailed metric “oriented” essay on the thesis presented here.   – JC

UPDATE:  See Addendum – America’s Karma and World War Two Gold Theft

UPDATE:  See latest blog posts:

SDR’s and the New Bretton Woods – Part One

SDR’s and the New Bretton Woods – Part Two

NYSE Euronext Shutdown Before the Great Consolidation

Source:

http://philosophyofmetrics.com/2014/01/16/china-to-purchase-the-federal-reserve/

Related:

All Wars are Bankers’ Wars

 

Karen Hudes ~~ World Bank Insider Blows Whistle on Corruption, Federal Reserve ~ Update

22 May 2013

Written by  Alex Newman

A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success.

Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”

According to the peer-reviewed paper, which presented the first global investigation of ownership architecture in the international economy, transnational corporations form a “giant bow-tie structure.” A large portion of control, meanwhile, “flows to a small tightly-knit core of financial institutions.” The researchers described the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers. Of course, the implications are enormous for citizens as well.

Hudes, an attorney who spent some two decades working in the World Bank’s legal department, has observed the machinations of the network up close. “I realized we were now dealing with something known as state capture, which is where the institutions of government are co-opted by the group that’s corrupt,” she told The New American in a phone interview. “The pillars of the U.S. government — some of them — are dysfunctional because of state capture; this is a big story, this is a big cover up.”

At the heart of the network, Hudes said, are 147 financial institutions and central banks — especially the Federal Reserve, which was created by Congress but is owned by essentially a cartel of private banks. “This is a story about how the international financial system was secretly gamed, mostly by central banks — they’re the ones we are talking about,” she explained. “The central bankers have been gaming the system. I would say that this is a power grab.”

The Fed in particular is at the very center of the network and the coverup, Hudes continued, citing a policy and oversight body that includes top government and Fed officials. Central bankers have also been manipulating gold prices, she added, echoing widespread concerns that The New American has documented extensively. Indeed, even the inaccurate World Bank financial statements that Hudes has been trying to expose are linked to the U.S. central bank, she said.

“The group that we’re talking about from the Zurich study — that’s the Federal Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes explained. “So the Federal Reserve secretly dominated the world economy using secret, interlocking corporate directorates, and terrorizing anybody who managed to figure out that they were having any kind of role, and putting people in very important positions so that they could get a free pass.”

The shadowy but immensely powerful Bank for International Settlements serves as “the club of these private central bankers,” Hudes continued. “Now, are people going to want interest on their country’s debts to continue to be paid to that group when they find out the secret tricks that that group has been doing? Don’t forget how they’ve enriched themselves extraordinarily and how they’ve taken taxpayer money for the bailout.”

As far as intervening in the gold price, Hudes said it was an effort by the powerful network and its central banks to “hold onto its paper currency” — a suspicion shared by many analysts and even senior government officials. The World Bank whistleblower also said that contrary to official claims, she did not believe there was any gold being held in Fort Knox. Even congressmen and foreign governments have tried to find out if the precious metals were still there, but they met with little success. Hudes, however, believes the scam will eventually come undone.

“This is like crooks trying to figure out where they can go hide. It’s a mafia,” she said. “These culprits that have grabbed all this economic power have succeeded in infiltrating both sides of the issue, so you will find people who are supposedly trying to fight corruption who are just there to spread disinformation and as a placeholder to trip up anybody who manages to get their act together.… Those thugs think that if they can keep the world ignorant, they can bleed it longer.”

Of course, the major corruption at the highest levels of government and business is not a new phenomenon. Georgetown University historian and Professor Carroll Quigley, who served as President Bill Clinton’s mentor, for example, wrote about the scheme in his 1966 book Tragedy And Hope: A History Of The World In Our Time. The heavyweight academic, who was allowed to review documents belonging to the top echelons of the global establishment, even explained how the corrupt system would work — remarkably similar to what Hudes describes.

“The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole,” wrote Prof. Quigley, who agreed with the goals but not the secrecy. “This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”

But it is not going to happen, Hudes said — at least not if she has something do to with it. While the media are dominated by the “power grabber” network, Hudes has been working with foreign governments, reporters, U.S. officials, state governments, and a broad coalition of fellow whistleblowers to blow the entire scam wide open. There has been quite a bit of interest, too, particularly among foreign governments and state officials in the United States.

Citing the wisdom of America’s Founding Fathers in creating a federal system of government with multiple layers of checks and balances, Hudes said she was confident that the network would eventually be exposed and subjected to the rule of law, stopping the secret corruption. If and when that happens — even if it may be disorderly — Hudes says precious metals will once again play a role in imposing discipline on the monetary system. The rule of law would also be restored, she said, and the public will demand a proper press to stay informed.

“We’re going to have a cleaned-up financial system, that’s where it is going, but in the meantime, people who didn’t know how the system was gamed are going to find out,” she said. “We’re going to have a different kind of international financial system…. It’ll be a new kind of world where people know what’s going on — no more backroom deals; that’s not going to keep happening. We’re going to have a different kind of media if people don’t want to be dominated and controlled, which I don’t think they do.”

While Hudes sounded upbeat, she recognizes that the world is facing serious danger right now — there are even plans in place to impose martial law in the United States, she said. The next steps will be critical for humanity. As such, Hudes argues, it is crucial that the people of the world find out about the lawlessness, corruption, and thievery that are going on at the highest levels — and put a stop to it once and for all. The consequences of inaction would be disastrous.

source:

http://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve

>>> Karen Hudes Exposed <<<

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