Forthcoming US bankruptcy and its "new dollar"?

The trusty European GEAB, N°28 -link- from LEAP/E2020 -that has been the most accurate about the US financial tsunami, in the midst of vulgar disinformation from Anglo-multimedia, designed to fool as much fools, neophytes and candid-, takes the risk to "anticipate that, before next summer 2009, the US government will default and be prevented to pay back its creditors (holders of US Treasury Bonds, of Fanny Mae and Freddy Mac shares, etc.). Of course such a bankruptcy will provoke some very negative outcome for all USD-denominated asset holders."

During this perturbing period, the US government will implement a "new dollar" ("to remedy the problem of default and of induced massive capital drain from the US.")

Could it be the clandestine amero, which US would warrant with Mexican and Canadian hydrocarbons?

According to the GEAB, the "bankruptcy" and the emission of the "new dollar" (the amero?) would be a resultant of five factors:

1. The artificial and anti-gravitational upward trend of the dollar "is a direct and temporary consequence of the collapse of stock markets." GEAB doesn't say this, but such rise is unsustainable, with the US presidential election in sight, it has served to the global "financial war" that Bush's torturing regime has declared on the world; to not fall alone on its misery and pretends to drag other currencies with it, such as the euro and particularly the petroleum ("The Samson Syndrome".) Let's  state that in this period of unavoidable decadence and decrepitude of the US, still exists the equation where the dollar and the petroleum are valued in inverse proportion, like we detected starting from march 2004, when the catastrophic military defeat of the US flourished on Iraq.

2. "Thanks to its recent « political baptism », the Euro becomes a credible « safe haven » value and therefore provides a « crisis » alternative to the US dollar." Our judgement is that here a fierce battle develops, a "financial war" that no one dares to call it for its name, between the dollar and the euro, precisely to attract the plethoric capitals in search of a safe currency -that paradoxically are not in abundance-, and have been sheltered in gold and silver that have sustained a relatively trustiness value, in wait for its imminent boom.

3. "The US public debt is now swelling uncontrollably." Our judgement is, without considering the virtual and anti-gravitational "financial derivatives" that ascend to a quadrillion, US debt simply cannot be paid when its "homes" (constituted by three persons, according to their ways to run statistics), have an average income of 50 thousand dollars a year and have a debt, somewhere in between half a million and a million dollars (depends on who's counting.) When the serious countries of the world run away from their possessions in dollars (with the demential exception of the masochist Bank of Mexico, in the dark age of the neoliberal jihadist Ortiz Martinez, which talent is to dilapidate reserves), the US government faces two options: rise taxes considerably (particularly to its insolvent and insolent plutocracy, which talent is evading taxes) and/or to print more garbage paper ("the Bernanke model" and the famous "helicopter" where it would distribute it massively), which would result in a hyperinflation and more devaluation of the dollar, to which only beneficial outcome would be a solvent debt that would be reduced to its minimal. Maybe in the aftermath, the "new dollar" would magically appear (The amero?)

China has discovered Bush's evil financial game that pretends to plummet the value of the "old dollar" to pay less debt and export more: "The U.S long-term goal to devaluate its dollars involves the likelihood of another large-scale expansion of the U.S dollars." according to People's Daily editorial -link- and says "the $700 billion bailout plan would possibly send the entire world plunging into a fresh (sic) wave of financial crisis" because "These dollar liquidities would push forward the devaluation of the U.S dollars, and in the mean time, would force up the futures prices of petroleum, grain, gold and bulk commodities", then it recommends "Against the global financial fears, the governments will also have to join efforts to combat the financial crisis and push ahead with the reforms in the international financial and monetary systems in order to curb the hegemony wielded by the U.S dollars over the world economy." Agreed!

4. "The ongoing collapse of US real economy (sic) prevents from finding an alternative solution to the country's defaulting." Besides the global illness caused by the toxicity of the US (the most irresponsible country in the world), lies here, in our opinion, the most dangerous factor of them all, and that's why it's urgent a "new multipolar Bretton Woods."

And 5. "« Strong inflation or hyper-inflation in the US in 2009? », that is the only question"

GEAB makes evident the divergence between US and "Euroland in the first place, [and] the rest of the world [that] seems determined to make its own choices." Hopefully! And forecasts a scenario where "Euroland, Asia and oil-producing countries, as well as US citizens of course, discover one morning of summer 2009 that, after a long-week-end or bank-holiday in the US, their US T-Bonds and Dollars are only worth 10 percent (supersic!) of their value because a « new Dollar » has just been imposed." Warns against the insanity of investing in dollars in the US, when "The New York Stock Exchange implement[ed] new circuit-breaker collar trigger levels" as result of the financial collapse. -link-

It calls for a great deal of attention, the coincidence between the resurge of the amero project: a common currency between the tri-partisan: US, Canada and Mexico, allegedly dealt in secrecy by Baby Bush, prime minister Paul Martin and the eloquent Fox in Waco (Texas) on March 23, 2005, as an extension of the NAFTA and the SPP -link- to which we should adhere the implementation of the Merida Initiative (Plan Colombia) and the incorporation of Mexico to the NORAD, with the calderon-beltron-ist blessing.

The design of the amero was realized by Daniel Carr, meanwhile the polemic Hal Turner, former radio commentator, now fired, claims in a public video that the Treasury Department has initiated the stage of massive coining to the state of sending some samples to China. -link-

Will the Canadian and Mexican hydrocarbons, rescue US from its bankruptcy and its "old dollar" throughout the amero?

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Alfredo Jalife-Rahme

La Jornada 10/19/2008

US declares financial war on the world?

The Financial tsunami is revealing astonishing events, hard to digest for a rational being that uses elemental arithmetic.

The US National Debt Clock (NBC) displayed in a screen close to Times Square, New York, has run out of digits to measure the US Government debt (that doesn't take into account State and Municipal debt, nor health care, retirement funds, even less, that of private companies and personal accounts). The NBC screen was installed in 1989 to make evident to the public the 2.7 trillion dollars of debt that  the country had at that time, but now is insufficient when the debt has passed 10 trillion, making the clock run out of digits -link-.

Linda Sandler -link- revealed shockingly that Lehman Brothers Holdings Inc.'s brokerage unit retired from the US more than $400 billion in assets months before its parent filed for bankruptcy. What is perturbing is that the bankruptcy was reported with four-month-old data. The bizarre disappearance (reminding that we are in the 21st century), according to Hughes Hubbard & Reed, law firm representing the bank during bankruptcy hearings in a Manhattan court, attributed it to "changes in the market". Right!

In what Ali Baba cave could the $400 billion been hidden?

The polemic The Voice of the White House -link- -alternate link- has caused controversy after accusing that the mysterious $400 billion were transferred to Israel before Lehman Brothers Holding Inc.'s bankruptcy, when "American business [is] frantically sending, electronically, huge amounts of money to banks in Israel." more specifically to Hapoalim Group, Bank Leumi and Discount Bank. Could be?

Hapoalim bank was the first bank to be acquired by the late Ted Arison, specialist in Caribbean and transatlantic "love boats" based in Miami and notable tax evader in the US.

Bank Leumi had $85 billion dollars in assets (now it must be more after the alleged miraculous mana in New York) and counts with presence in 21 countries. The bank is linked to the hedge funds global company Cerberus-Gabriel (Cerberus Capital Management) involved in a stinky contract scandal with the Pentagon and the CIA, where Dick Cheney and the former vice president Dan Quayle and the former Secretary of Defense Donald Rumsfeld, just as part of the Republican congress as well as oil company Halliburton were the beneficiaries. -link-

Discount Bank is the third biggest in Israel and was controlled until last year by Matthew Bronfman, who quited to the administration council, because of conflict of interest. The dark history of the Bronfman dynasty deserves an encyclopedia on its own.

The banker bandits, despite the tautology, have shown that they are still, because they have not stopped being, the true masters of the neoliberal world, as seen by the beneficiaries of the Paulson-Bernanke-Bush rescue. Any resemblance to Mexico's Fobaproa/IPAB is pure coincidence.

Gone is the "market" -that, in reality, never existed because it was controlled by the klepto-plutocracy of Wall Street and City- and its place has been taken by a fight for global power through financial weapons.

The massive rescues on both sides of the Atlantic try to avoid the financial crush and save to its minimal proportions the broken banks, and while they were at it, they take the chance to keep their currencies a float. (v. gr. the artificial dollar rise) and hit hardly to the G-7's enemies' goods (particularly the petroleum) and Russian finances.

The colossal British rescue for a trillion dollars, constitutes a de facto nationalization of the whole banking system that was in the seventh circle of Dante's hell (that of the usurers).

The recent "rescues" by the G-7, that, without looking back, have affected third party interests and have retaliated against their geopolitical and geoeconomic adversaries ("The Samson syndrome" [previous Under Magnifier article] -link in spanish-) making the OPEP call for an emergency meeting (from now on everything will be urgent) and try to stop the black gold from plummeting below permissible levels, which makes a big productor like Russia vulnerable. Is this a "financial global war" that the US has declared and doesn't dare to call it for what it is?

Very weird is Ireland's attitude [-previous Under Magnifier link in spanish-] [-related link-] that has destabilized Europe, most specifically Germany, after its strategic alliance with Russia [-previous Under Magnifier link in spanish-] [-related link-]. In a similar manner, Ireland had sabotaged the EU constitution, deed where many analysts detected the "invisible had", pretty obvious, of Bush's torturing regime to get off-its-rails the old continent and the euro.

Once again, with audacity for a small economy with a GDP of $258.6 billion dollars (compared to Germany's GDP of $3.32 trillion dollars, almost 13 times Ireland's GDP), Ireland "extended its controversial bank deposit guarantee to include foreign banks" that operate at its core, primordially Ulster Bank, First Active, HBOS, IIB Bank and Postbank, according to Tony Bonsignore -link-. Where will Ireland get that much money, suffering of a recession? Does Wall Street operates with its "invisible hand" evident behind the incredible measures taken by Ireland that have destabilized the euro, that has benefited artificially the anti-gravitational rise of the dollar condemned to execution?

As Russia and Germany, the two most powerful countries in Europe (integrally), are not handicapped; they have adopted defensive measures and even counteroffensive, effectively.

Stratfor -link-, headquarters for the texan-isreali mind, linked to the Pentagon, highlights Russia's move, of geostrategic proportions, to rescue Iceland, with $5.43 billion dollars that are worth pure gold in this debacle of Iceland: member of NATO and intimate US ally, but officially bankrupt. Whatever it was, Russia is now closer to the Atlantic coast of US.

We assist to a redistribution of world's wealth and to a new geopolitcal global rearrangement.

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Alfredo Jalife-Rahme

La Jornada 10/12/08

http://www.jornada.unam.mx/2008/10/12/index.php?section=opinion&article=012o1pol

Under Magnifier Inauguration

Under Magnifier is a project to translate to English the columns of the lucid geopolitical analyst Alfredo Jalife-Rahme, who writes Sundays and Wednesdays for the Mexican newspaper La Jornada in his column titled "Bajo La Lupa" which means Under Magnifier in English.