The Great Deceiver
— The Federal Reserve
Paul Craig Roberts and Dave Kranzler
Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.
From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.
Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP?
No, Belgium’s trade and current accounts are in deficit.
Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase?
No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.
So where did the $141.2 billion come from?
There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month.
In other words, during those 3 months there was a sharp rise in bond purchases by the Fed. The Fed’s actual bond purchases for those three months are $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. (In March 2014, official QE was tapered to $55 billion per month and to $45 billion for May.)
Why did the Federal Reserve have to purchase so many bonds above the announced amounts and why did the Fed have to launder and hide the purchase?
Some country or countries, unknown at this time, for reasons we do not know dumped $104 billion in Treasuries in one week.
Another curious aspect of the sale and purchase laundered through Belgium is that the sale was not executed and cleared via the Fed’s own National Book-Entry System (NBES), which was designed to facilitate the sale and ownership transfer of securities for Fed custodial customers. Instead, The foreign owner(s) of the Treasuries removed them from the Federal Reserve’s custodial holdings and sold them through the Euroclear securities clearing system, which is based in Brussels, Belgium.
We do not know why or who. We know that there was a withdrawal, a sale, a drop in the Federal Reserve’s “Securities held in Custody for Foreign Official and International Accounts,” an inexplicable rise in Belgium’s holdings, and then the bonds reappear in the Federal Reserve’s custodial accounts.
What are the reasons for this deception by the Federal Reserve?
The Fed realized that its policy of Quantitative Easing initiated in order to support the balance sheets of “banks too big to fail” and to lower the Treasury’s borrowing cost was putting pressure on the US dollar’s value. Tapering was a way of reassuring holders of dollars and dollar-denominated financial instruments that the Fed was going to reduce and eventually end the printing of new dollars with which to support financial markets.The image of foreign governments bailing out of Treasuries could unsettle the markets that the Fed was attempting to sooth by tapering.
A hundred billion dollar sale of US Treasuries is a big sale. If the seller was a big holder of Treasuries, the sale could signal the bond market that a big holder might be selling Treasuries in large chunks. The Fed would want to keep the fact and identity of such a seller secret in order to avoid a stampede out of Treasuries. Such a stampede would raise interest rates, collapse US financial markets, and raise the cost of financing the US debt. To avoid the rise in interest rates, the Fed would have to accept the risk to the dollar of purchasing all the bonds. This would be a no-win situation for the Fed, because a large increase in QE would unsettle the market for US dollars.
Washington’s power ultimately rests on the dollar as world reserve currency. This privilege, attained at Bretton Woods following World War 2, allows the US to pay its bills by issuing debt. The world currency role also gives the US the power to cut countries out of the international payments system and to impose sanctions.
As impelled as the Fed is to protect the large banks that sit on the board of directors of the NY Fed, the Fed has to protect the dollar. That the Fed believed that it could not buy the bonds outright but needed to disguise its purchase by laundering it through Belgium suggests that the Fed is concerned that the world is losing confidence in the dollar.
If the world loses confidence in the dollar, the cost of living in the US would rise sharply as the dollar drops in value. Economic hardship and poverty would worsen. Political instability would rise.
If the dollar lost substantial value, the dollar would lose its reserve currency status. Washington would not be able to issue new debt or new dollars in order to pay its bills.
Its wars and hundreds of overseas military bases could not be financed.
The withdrawal from unsustainable empire would begin. The rest of the world would see this as the silver lining in the collapse of the international monetary system brought on by the hubris and arrogance of Washington.
Welcome to Nulandista?n: Propaganda and the Crisis in Ukraine
Published on May 23, 2014
This full length GRTV documentary looks at the fictitious land of Nulandistan that has been constructed out of Ukraine.The GRTV documentary deconstructs Nulandistan and the propaganda of the Obama Administration, the US Department of States, US officials, and their allies about the crisis in Ukraine and takes a look at their growing frustration towards the Russian media, particularly RT, for challenging their account of the events on the ground in what they have declared is an intensifying information war.
The full length documentary starts by looking at the self-benefiting description of the EuroMaidan protests that US officials have used and how it has grossly diverged from reality. Then Odessa Massacre is deconstructed for audiences.
The documentary then looks at the situation in East Ukraine, including the violence and referenda. The events in East Ukraine are then contrasted to the positions of US officials and Russia.
This documentary shows how the reality of events in Ukraine has been been misappropriated and propagandized to support US foreign policy and to justify tensions against Russia.
“A point comes when caution ends and cowardice begins.”
Dear Mr. Putin,
As the fascist flag of Kiev slithered upwards beyond the flames of the House of Trade Unions building, the visible horror of the Odessa massacre ricocheted across the globe, and the stench of burning human flesh hung fresh in the sour air. Modern-day Nazi atrocity, murder, and barbarism have returned to your borders, Mr. Putin, in colorized newsreel fashion.
You merely watch?
Your Russian Foreign Ministry last week issued a “White Book,” a documented government report detailing the atrocities of the unabashedly fascist regime in Kiev. The White Book reveals what is already known to us; that the American-backed junta loves and craves the taste of blood.
The only acceptable substitute is treasure.
This was before Odessa. This non-fiction horror story will be repeated soon in East and South Ukraine. This is the terrifying sequel to the History of the Third Reich. Mr. Putin, new chapters are about to follow. Soon.
On your own TV screen, you see the same ashen faces, staring dumbfounded. Bats smashing skulls. Chains maiming the injured. Guns shooting the defenseless. The wide hollow eyes of horror watching the exploding petrol bombs, the smoke and the flames of American empire stripping the flesh from those screaming in pain. Screaming in outrage. Screaming to be rescued. Screaming.
These hollow eyes, Mr. Putin, now look in only one direction. East.
Nuances be damned. Today, one man’s “freedom” is that same man’s brutal oppression. Now, faced with the complete inhumanity that is Odessa, “invasion” is now the civilized man’s, the moral man’s, and the Ukrainian man’s, rescue!
Mr. Putin, you know that Ukraine must be rescued. The American dogs of war are on your doorstep and on ours. Why are you suddenly showing weakness? Yes, the media will exponentially use the word “invasion.” Do not succumb to this lie. Rest assured that to us, the correct, most accurate single word is truly “rescue.”
You, Mr. Putin, are the only world leader with the military assets, the close proximity, the will of your own people, and the avowed moral obligation to save Ukraine. The empire intends to leave another once-peaceful nation in the shambles of civil war. You saved Syria. Save Ukraine.
You must act.
It is time.
Who are we to so bullishly remind you of your obvious impending peril? Who are we to slap you to consciousness of the carnage you seem to ignore?
We know many secrets, Mr. Putin. We will share these with you. These are desperate times, Mr. Putin. What we have seen, you must hear. We also know what it sounds like to scream. Hear us now!
Who are we?
I am Afghan. The American menace is finally gone. Freedom and democracy leave only misery in their wake. We have nothing, but we now have hope.
I am Iraqi. Chaos. Fear. Terror. Civil war. Dozens are blown to bits daily. I see the hollow eyes everywhere. Well we know the American legacy of freedom. The fire. The smoke.
I am Sudanese. I am very hungry. I will die soon for I am expendable. The American black dogs of war have no food for the likes of humans like me. All I have to offer is my soul, but that has no value.
I am from Myanmar. American greed has no limit. In the first three years of our new “Democracy,” American empire has already destroyed our hopes. It lays waste to our lands and slaughters our people. The stench of empire is in the wind.
I am Venezuelan. The empire will stop at nothing to steal our oil and land. Human carnage has started. The evils of American “freedom” foment civil war. We have already heard the bombs. Seen the flames.
I am Libyan. The worst days of Qaddafi were better. The remaining semblance of our nation is in the tatters of civil war. Now the empire can plunder our oil, while we kill each other. The unholy flag of empire is never at half-mast.
I am Egyptian. Our Arab spring turned it into Arab tyranny, torture and execution. Dissent is now a death sentence. The American-backed, -educated, and -financed coup destroyed our fledgling democracy. The fire and smoke of civil war will be upon us soon.
I am Palestinian. Why is our freedom impossible? We have been left with so little. We suffer more everyday. The Israelis steal ever more at will. For only one reason, America.
I am English. Like my European brothers, the American banking system has ruined our economy. The carnage of endemic greed in society worsens as the empire grows, stealing ever more via austerity. We have no more to give. I fear we will soon see the petrol bombs fly.
I am Greek. And I am Cypriot. The men are leaving. In coffins. By their own hand. Austerity turned to despair. Such are the sorrows of empire. Is it now time for the fire and the smoke?
And I am American, Mr. Putin. I will tell you the biggest secret of all.
Americans see the fire and smoke in Odessa and we know that our government is lying. We know the truth about our government; it is not a government of all. It is a vampire called empire. It has an insatiable thirst. We Americans are already being ravaged by the fire and the smoke of our empire. Police kill us daily. To resist is to die.
Mr. Putin, have you missed the metaphor that is your Odessa? Those swirling, all-consuming flames are the American empire and the burning House of Trade Unions is your Russia. That is you, Mr. Putin, who is standing on the ledge outside those smoke-engulfed, burning windows three stories up.
The flames swirl, cascading through the smoke-engulfed windows, while the rabid inhuman pack of American-backed thugs waits with chains and bats to kill any survivors. With every blow, with every hammer strike of chain, terror personified expunges the last breath of the intolerable notion of personal freedom.
But, these jackals have other meat on their minds. Bigger game to kill.
That inhuman crowd far below you, Mr. Putin, wants your blood. While these beasts of empire extinguish the life of their Odessa victims, it is you they look for in the faces of their dying victims. You.
The forty six or more victims of the empire-massacred in Odessa screamed for rescue. The citizens of eastern and southern Ukraine cry out for rescue. Humanity howls in outrage. We look to you.
Mr. Putin. Sit. Absorb the flaming images of empire. A world typified by Odessa. That is fire and it is dangerously close to your border. That is real smoke. Not since the Nazi ovens were closed has that putrid smell caused the human condition to retch involuntarily. Those sacks dropping to the concrete. Real people, flesh and blood, jumping from those ledges. Yes, and those are actually Nazis, killing yet again. Killing with impunity. Killing with uncontrolled rage. Killing for sport.
It is time to rescue Ukraine. It is time to rescue Russia. It is time to rescue us. Who are we, Mr. Putin, to impudently assail you with these most important truths?
We are the last available spoils of empire. We are the future and we are history. We are the quest for happiness, and the proponents of peace and dreams. We are the voice of reason and of right versus so much wrong. We wear the white hat while the empire’s evil minions wear black.
We now must be your conscience, Mr. Putin. For your own good, the good of Ukraine, Russia, and countries East to West.
We tell you Mr. Putin, it is time. We tell you that you must act. You, and we, are next.
Mr. Putin. We are the world.
We beg you.
It is time.
Brett Redmayne-Titley spent his formative years with his family in Queensland, Australia, Ghana, West Africa, and the Bahamas. Visiting over fifty counties over four decades he has seen the world slowly destroyed by greed, capitalism and empire. Not content to watch from the side lines, Brett has taken up his pen to tell the truth about important stories. On-scene reporting is his specialty. Traveling to the story he has written in-depth, multi-part articles about the Keystone XL Pipeline, Trans Pacific Partnership (TPP) negotiations, the San Onofre Nuclear Power Plant, the 2012 Democratic National Convention, the police killing of Evan Kwik and many more. His articles have been published by dozens of on-line news services. More articles by Brett Redmayne-Titley
America Brings Hell to Ukraine as Part of its Plan for World Domination
Kerry says ‘all options remain on table’ for Venezuela
US Secretary of State John Kerry says “all options” are on the table against Venezuela days after a US Senate panel approved the imposition of sanctions on the Latin American country.
During his first visit to Mexico as the US secretary of state which was aimed at increasing educational ties between the two countries, Kerry spoke forcefully on Wednesday about the recent political unrest in Venezuela, saying the US is losing patience with the Venezuelan government.
“All options remain on the table at this time with hopes to move this process forward,” Kerry said in Mexico City. “Our hope is that sanctions won’t be necessary.”
Kerry’s remarks came one day after the Senate Foreign Relations Committee voted 13-2 in favor of legislation requiring the Obama administration to ban visas and freeze the assets of Venezuelan officials for alleged human rights violations during anti-government demonstrations. The bill will now go to the full Senate floor for consideration.
Venezuela has been the scene of violent pro- and anti-government demonstrations since early February.
The opposition criticizes the government for the high crime rate and economic hardships in the country, claiming that the policies of the government have led to a shortage of essential goods and a high inflation rate.
The government of President Nicolas Maduro has said the violent protests are part of a US-engineered plot to overthrow the government in the oil-rich Latin American country.
Who Needs The United States? Not Russia And China
Russia and China have just signed what is being called "the gas deal of the century", and the two countries are discussing moving away from the U.S. dollar and using their own currencies to trade with one another. This has huge implications for the future of the U.S. economy, but the mainstream media in the United States is being strangely quiet about all of this. For example, I searched CNN's website to see if I could find something about this gas deal between Russia and China and I did not find anything. But I did find links to "top stories" entitled "Celebs who went faux red" and "Adorable kid tugs on Obama's ear". Is it any wonder why the mainstream media is dying? If a particular story does not fit their agenda, they will simply ignore it. But the truth is that this new agreement between Russia and China is huge. It could end up fundamentally changing the global financial system, and not in a way that would be beneficial for the United States.
Full story here
U.S. warns China its actions in sea disputes are straining relations
WASHINGTON (Reuters) - China's "provocative" actions in maritime disputes with its neighbors are straining ties with the United States, raising questions over how the world's two biggest economies can work together, a senior U.S. official said.
The strong comments from Washington on Thursday come after deadly anti-China riots broke out in Vietnam in response to China towing an oil rig into a part of the South China Sea claimed by both Hanoi and Beijing.
l More here
Sneak attacks come from United States
The most aggressive attacks on Chinese cyberspace originate from within the United States, and the US is the biggest thief of secrets in the world, Xinhua News Agency quoted a representative of China’s State Internet Information Office as saying.
From March 19 to May 18, 2,077 Trojan-horse networks or "botnet" servers originating in the US controlled 1.18 million computers in China, according to the country’s network emergency response center.
Meanwhile, 135 computers from inside the US controlled 563 phishing websites targeting China, leading to 14,000 cases of online fraud, such as theft of users' personal information, online passwords and locations, the center said.
Such fraud has inflicted significant losses on Chinese netizens and has included the theft of business secrets, according to the center.
In addition, 1,754 Chinese websites were implanted with software codes via "back-doors" by 2,016 IP addresses originating in the US, the center said.
These are considered the most dangerous threats to online security because such attacks are hard to identify by webmasters and users, the center said.
Based on the data, the US accusations of hacking against five Chinese military officers on Monday are "groundless", the spokesperson told the agency, saying China is a solid defender of cybersecurity and does not support online crimes.
American defense contractors: Profiting from Russian and Chinese technologyClick Here To Comment
by John Stanton
"Boeing is a leader in creating the U.S.-China Aviation Cooperation program, an initiative of U.S. government and American aviation companies, working with CAAC and airlines to help advance China's commercial aviation. Good corporate citizenship has always been an essential part of The Boeing Company. In China, the company's vision for corporate social responsibility program is to stretch Boeing expertise and commitment to the science, technology, engineering and mathematics (STEM) education of Chinese youth from elementary school to college." Boeing in China, Backgrounder, April 14, 2014
It is a fine thing that Boeing is supporting STEM education in China. But as part of the American Defense Industrial Base Critical Infrastructure, Boeing regularly moans about the dearth of America's own STEM/ aerospace engineering capability. For example, in a glossy publication from 2007 comes the article Engineering Brain Drain? by Louise Wilkerson, in which the reader learns that "According to a recent study by Aviation Week & Space Technology magazine, the United States is turning out only about 110,000 engineers a year compared with China's 600,000 a year and India's 350,000 a year."
Even though there is no conclusive evidence to claim there is a shortage of aerospace engineers in the USA (immigrants or not), the Pentagon and its defense contractors continue to moan and groan about a mythic shortage that does not actually exist. Perhaps Boeing is hedging its bets by financially supporting STEM in China and advanced materials and computing research there.
"Boeing has also established Boeing Research & Technology-China, a part of Boeing's advanced central research and development organization. The center is involved in collaborative research with the Chinese Academy of Sciences and Chinese universities. Three joint research laboratories and a joint research center have been formed with the research partners. Activities are focused on the environment, advanced materials, and advanced computing technologies for aviation and industry design."
One of the most sophisticated missile defense early warning platforms was constructed by Boeing. The company's Sea Based X Band radar system currently floating in the Pacific was built by Russia's Vyborg Shipyard.
According to navaltechnology.com "The Sea-Based X-Band Radar-1 (SBX-1) constitutes a mid-course fire control radar based on a seagoing semi-submersible vessel. The platform was developed by Boeing, as part of the ground-based midcourse defence (GMD) component of the US Ballistic Missile Defence System (BMDS). The GMD intercepts incoming warheads. The SBX vessel was transferred to the Military Sealift Command (MSC) in December 2011." The X Band Radar System on board was built by another Defense Industrial Base heavyweight Raytheon Corporation.
Lockheed Martin, the world's largest defense contractor, is in the news as being a victim of Chinese PLA military personnel who apparently surreptitiously entered Lockheed computer networks and engaged in industrial espionage. Yet Lockheed has been doing business with China in the area of nuclear reactor safety and construction. The F-35B has its genesis in Russia.
According to a corporate press release on Lockheed Martin's website, "Lockheed Martin and [China's} State Nuclear Power Automation System Engineering Company (SNPAS) have signed an agreement to prototype, manufacture and qualify nuclear power plant reactor protection systems for China's Generation III reactors. SNPAS is a subsidiary of China's State Nuclear Power Technology Corporation (SNPTC). Lockheed Martin and SNPAS will develop a nuclear safety instrumentation and control platform, based on field programmable gate array (FPGA) technology, for a new generation of Reactor Protection Systems in China. Terms of the agreement were not disclosed."
It turns out that the vaunted F-35 has its origins in Russian aviation. According Aviation Intel "People look at the F-35B and see an ultra- modern transformer of sorts, with massive doors that open up and an articulated exhaust tube that seems to warp downward unnaturally on command. The next thing you know the 5th generation stealth fighter is HOVERING IN MID AIR. Lay on decent range (for a V/STOL fighter), higher than Mach speeds, and the most cutting edge radar and avionics package ever and you have a truly groundbreaking design......But is the F-35B's unique design really that ground breaking at all? The F-35B's novel lift fan and vectoring tailpipe design was conceived not in Fort Worth, Texas but in Moscow, Russia, about 35+ years ago! The Yak-41 that utilized this exact same concept, now known as the Yak-141, NATO codename "Freestyle," was designed to be what it's much lacking Yak-38 predecessor should have been."
And maybe it is coincidence but Lockheed stands to gain big-dollar cyber security contracts from the US government.
There is something shady about spending billions on cyber offense and defense when no one seems to have a formula or can quantify how much proprietary/national security data has really been covertly compromised by the Chinese, Russians or a middle-school student located in Houston, Texas. The US government-Lockheed officials are not to be trusted. They offer dubious information that lacks specifics or legitimately quantifiable formula/data with which to assign dollar losses. It's a sham not unlike the trumped up aerospace engineering gap.
Cyber Threats are Real?
According to Tereza Pultarova, writing in Engineering and Technology Magazine (May 2014) "Speaking at the Reuters Cyber-security Summit in Washington, the company's vice president Chandra McMahon said that only since January 2014, the firm had to ward off attacks by 43 distinct hacking groups. The number of cyber-attacks on Lockheed's systems has been growing steadily - in 2007, ten attacks were detected while three years later it was already 28. In addition to being Pentagon's number one weapons supplier, Lockheed Martin is also the most important provider of information technology to the US government. The company's systems are widely used by the US military, energy companies, utilities and other critical infrastructure firms.
The latter have seen, according to Lockheed Martin, a substantial increase in the number of cyber-attacks in the past years. "While we haven't seen specific action on objectives in terms of damage, what we have seen over the last several years (is) malware created and deployed to damage critical infrastructure," McMahon said... Lockheed expects double-digit growth in its cyber business, which now accounts for 10 per cent of revenues in the $8bn (£4.77bn) information systems sector. Lockheed and other US weapons makers are frequent targets of criminal groups, nation states and other hackers seeking to extract valuable information about high-end weapons systems. US intelligence reports have cited attacks launched by groups in Iran, China, Russia and North Korea. Lockheed declined comment on any specifics about the campaigns it had identified."
John Stanton is a Virginia based writer. Reach him at firstname.lastname@example.org
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