CHINA DUMPING US TREASURIES: THE PROBLEM IS, WHAT DOES IT MEAN? AND ...

This very, and I'd even say, extremely important article was shared by Mr. S.D., and I have to pass it along. It's in one of those "in the cracks" categories on this website, hence I've filed it not only under "Banks and Banksters" but under "You Tell Us". The article itself, from our friends at Zero Hedge, is worth pondering in its totality and at length, but there are a couple of highly suggestive statements in the article that call forth our traditional high octane speculation, which in this case might be more accurately described as geosynchronous orbital speculation, so "out there" were my thoughts when I read it. And when the "speculation" I am going to propose in this short blog hit my mind, my first thought was, "No, it can't be," and "Farrell, you've lost it," but we'll get to that in a moment.

Here's the article:

China's Record Dumping Of US Treasuries Leaves Goldman Speechless

Now, as the article title itself suggests, even Goldman Sachs can't make much sense of what's happening, and if they can't, then the reality probably is that no one else can either: not the Bank of International Secrec...er... Settlements, not the European Central Bank, not the Old Lady of Threadneedle St., not Hong Kong and Shanghai Bank, nor  Barclay's nor Lloyd's nor Morgan nor Chase-Manhattan nor anyone else... except maybe the NSA or GCHQ or the Mossad or the BND. So if Goldman Sachs can't make - as the saying goes - "niether hide nor hare" of it, then I feel safe, as a hack from South Dakota, in plunging right in and indulging in some geosynchronous orbital speculation. In other words, what I am about to propose is really "out there" and may indeed be simply "outlandish" and completely "loony tunes"(Play cartoon theme music here).

Consider just these statements from the article alone:

Needless to say, a capital exodus of that pace and magnitude would suggest that something is very, very wrong with not only China's economy, but its capital markets, and last but not least, its capital controls, which prohibit any substantial outbound capital flight (at least for ordinary people, the Politburo is clearly exempt from the regulations for the "common folk").

And these:

But what is likely the take home message for non-Chinese readers from all of this, is that while there has been latent speculation over the years that China will dump US treasuries voluntarily because it wants to (as punishment or some other reason), suddenly China is forced to liquidate US Treasury paper even though it does not want to, merely to fund a capital outflow unlike anything it has seen in history. It still has a lot of 10 Year paper, aka FX reserves, left: about $1.3 trillion at last check, however this raises two critical questions: i) what happens to 10 Year rates when whoever has been absorbing China's Treasury dump no longer bids the paper and ii) how much more paper can China sell before the entire world starts paying attention, besides just JPM and Goldman... and this website of course.

Finally, if China's selling is only getting started, just what does this mean for future Fed strategy. Because one can easily forget a rate hike if in addition to rising short-term rates, China is about to dump a few hundred billion in paper on a vastly illiquid market.

Or let us paraphrase: how soon until QE 4? (Bold-italics emphasis added)

Now, it's that bit about China being forced to dump its US treasuries, which at the same time means that its foreign exchange ("FX" in the article) is flowing out of the country at an alarming rate, in response to the "take down" of the Chinese stock market. (And, for a really interesting picture, check out the German stock market in this same approximate time period, as Catherine Austin Fitts pointed out to me). Assuming for the moment that somehow the USA was behind the Chinese stock market "correction," then an interesting - but dangerously "out there" scenario - emerges, namely, that the USA might possibly be buying back all those treasuries with all that QE money already sloshing around in the system.

"But... now... wait a minute," you're probably saying to yourself. "If that's the case, shouldn't all those dollars be showing up, leaving their footprint?" Yes, they should, on any conventional analysis. But we certainly haven't been living in anything like a conventional financial and currency picture for a long time. Indeed, it's because those dollars aren't showing up that Zero Hedge, I suspect, was led to propose the question "how soon until quantitative easing" number four?

But what if - just consider, what if - that "sell-off" was ulimately of a very different nature altogether? What if we're not being shown or told the entire picture(not an unlikely idea in a world where the USA installed a secret system of finance under Truman in 1947). What if a "Tanaka" has just been pulled on China, with the engineered "stock market correction" being the trigger for the bonds sell-off? Prime Minister Tanaka of Japan, you'll recall, came up with the scheme of the "57 bonds," when faced with a looming financial crisis of bonds coming to maturity that the Japanese financial ministry did not have the money to pay. Tanaka hit upon the scheme of "swapping the paper" with new bonds, denominated in astronomical sums of money, that were not sold on any public bond market, and which were issued with peculiarities and flaws that would allow the Japanese government subsequently to renounce the bonds as counterfeit. Only those playing along with the government would be allowed to redeem the bonds, and even then at only extremely sharp discount. It was a wonderful way to swindle the rich of Japan (and anyone else rich enough, and unlucky enough to have bought the bonds), and to retire from the books a mountain of bad paper all at one fell swoop.

So what if China's bonds have been swapped in some similar version of the scheme. The new paper would be denominated in dollars, but the bad paper - along with the dollars backing it - would be completely retired, leaving China stuck with bad paper that could only be redeemed at discount, and only if it played ball. And perhaps, just perhaps, the Chinese government saw this coming, and hence this might be a hidden reason they are so keen to open bond markets in Canada and Europe selling bonds denominated in reminbi and not US dollars.

Which raises the central question, not only for my wild and crazy speculation, but, even lacking that speculation, and that is the question raised by Zero Hedge itself: "What happens to ten year rates when whoever has been absorbing China's Treasury dump no longer bids the paper." It's that "whoever bids the paper" that is the real question, because it is implying no one really knows who it is. The obvious candidate is the USA, or, more precisely, the Federal Reserve. Indeed my wild and wacky scenario is based on that assumption. But what if it isn't?  What if it's someone else with similar amounts of "money" sloshing around on its books... someone like, well, maybe, Deutschebank perhaps? with the means to buy all that paper via cutouts? And then convert its new bad paper purchased from China into a stock buying spree in Frankfurt?

Well, who knows? But eventually, that "someone" will eventually leave a footprint. Most likely when it does that foot will smash my two highly improbable scenarios.

But the possibilities of those scenarios at least had to be admitted for the record.

See you on the flip side.

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

42 Comments

  1. Miguel on August 2, 2015 at 9:19 am

    Zero hedge logic is flawed in this article. There is no need for q4 at all… the seller of China stocks got his dollars and he will be bidding treasuries or any other dollar denominated asset… no impact whatsoever on usd rates for as long as the dollar remains on an appreciating course… which it will for a while longer 2 to 4 yrs, but perhaps not the 5 yr to a decade horizon the dollar banksters would like to see before they pull their last trick… move to crash usd stock and property markets to flush out q1,q2 and q3.



  2. Paolo on July 30, 2015 at 2:17 pm

    It means that the ‘War Scenario’, a real war with real bullets and, god forbid, missiles, is now a much more likely scenario. Note the timing of the Chinese stock market crash: they were exposed, they were warned, they did not play ball, and now they are being hit.



  3. henry on July 30, 2015 at 3:35 am

    Here is what Author of bestseller “Currency Wars” Song Hongbing has to say about ‘the Chinese stocks crash’, and some background on where he comes from.
    https://en.wikipedia.org/wiki/Currency_Wars

    this is straight from his recent video blog,

    “in my opinion, there is another category of accounts, the so called predatory accounts, these people must have made lots of money this time, how much money did these predatory accounts make, i can not say, because one must have first-hand statistical data to make that assessment, but i’d be very surprised if its below five hundred billion. This category of accounts must exist in that big form of CSDC(China Securities Depository and Clearing Corporation) concerning fifty million stock investors, because ‘cash conservation’ and all records of stock are there.

    But they may not necessarily appear in their own name, usually they appear in the name of someone else’s. If we audit the accounts you’ll discover for certain, that there exist ‘super personal accounts’. The money these accounts have, is not several hundred millions, not billions, but tens of billions or over a hundred billion. These super accounts, they are the ones that really made the money, it is through these accounts, that the ‘predators’quietly sneaked into the stock market. When i say “predators” i dont mean the big shareholders, but people who deliberately or even maliciously short-selling the stock market.

    These ‘predators’ entered stock market mainly through ‘off-market margin financing’. The thing with off-market margin financing is, if we do the reverse thinking, why they choose that channel instead of regular channels? Because if you are somebody, or a group of people trying to maliciously short-selling the Chinese stock market; if you are to invest in stocks market, ‘the regular channel’ would be opening an account with securities company, you’ll need your ID cards, the IDs will be copied, then all your transaction records will be seen by the securities company; but if you are someone trying to short-sell the stock market with malicious intent, are you going to leave records and trails behind? absolutely not, because its only matter of time before you got caught. So, these people have to be ‘anonymous’, leaving no trails behind, this is what they must do, and they can only do this through ‘off-market margin financing’.

    Speaking of ‘off-market margin financing’, we have to talk about HOMS system used by Hundsun Technologies, which has received quite media coverage now, that many people are blaming HOMS for the recent stock market crashes, but personally, i dont agree with this view. To be blunt, the system is just about asset management and risk control, nothing more. We use to see alot of private equities, or see alot of funds, when they invest in stock market, it’s not convenient, because, lets say i have 10 people managing the funds, each one needs to operate on the stock market, and additional people to monitor separately, which makes it complicated; but now we have HOMS system, i can set 10 subledgers under one general ledger, each fund manager managing their respective account, each managing one hundred million, and after trading in a year, i will see who has the best scores to have an easy assessment; and risk control, if there is a problem i can use risk control to guide, or say close position etc. So this system is a technology system, an IT system, it provides convenience and risk management so its very popular. Due to the convenience this system provides, so people who provide financing also find it very useful, thus many financing companies started using this system.

    If i’m the boss of a financing firm, the first step is to open an account with the securities company, all the stocks on my account will ultimately be registered on CSDC’s general ledger. But by utilizing HOMS, i can now set up several virtual accounts, from dozens to hundreds, even thousands of these, all under one risk control system, this serves as a convenient too for the financing firm to manage the virtual accounts. If i’m a ‘predator’, i will cut a deal with the boss of a financing firm, say putting my money into certain account without the firm retaining any records and leaving my name, and as long as there is commission and interests to be made, the private owner may agree. Under such circumstances, there will be lots of ‘virtual account’that are totally ‘anonymous’. The “predators” can easily hide in these accounts and short-selling the stock market. This way, after i succeeded, i can quietly close this account without leaving any trails behind, put the money into a bank account created with false ID, transfer the money then to shadow banks, by the time someone is investigating it the money is already transferred overseas, as for ‘me’, the person that did this, because there are no records left, i can just simply “disappear”, without leaving any traces. So if we are going to investigate what really went wrong with the stocks trading, then these people should be the prime suspect.

    Ofcourse, no matter how ‘anonymous’ they are, there will be traces left behind; first of all, the financing firm may keep a transaction record, because the boss have opened hundreds of virtual accounts, he needs to have a grasp of the transactions under each account, because he needs to have risk control, so they may have certain informations that are useful but it will be scattered since there are too many financing firms around, each possess only partial informtion; another way to gain more comprehensive data is via the HOMS system, say they sold the software to three-hundred ninety thousand clients, after they’ve installed the sofeware, technically one may obtain the data of these accounts and their transaction records through HOMS, by using these information that are retained by HOMS we could seek out the “predators”, their trading activities, how did they sell, short-sell,what did they buy, by obtaining these data we could find out the method for the short-selling of the stock market. So, the CSDC have the general ledger but only record the stocks, the securities company have the capital accounts, but they are isolated, the ‘smaller accounts’ are found in the virtual accounts, in the HOMS system, ofcourse, there are two other companies besides this one, but they are relatively small. So, in my opinion, the real “secrets” is in these “small accounts”.

    Now, some people say stock market crash is a natural phenomenon, after a period of rise it experienced a deep callback, this is completely normal, there is nothing to be shocked about it, no need to save the market or to investigate; others think that this stock market crash is very unusual, from the extent of the crash, to the coordination in the process, obviously it is not accidental, so these people think, there must be “predators” sneaked into the stock market, and there may even be “foreign predators” among them, that they are deliberately short-selling the stock market. In my opinion, we dont need to argue, we just need to audit the accounts, those small accounts, then you will find traces.
    What makes me to think this way, is we saw earlier that the government tried to save the market more than 20 times but they all failed, the stock market kept crashing, but when MPS (The Ministry of Public Security) announced on July 9 to investigate the securities companies, the same day the stock market stopped ‘crashing’, then for successive three days the stock market bounces back. Why is that? Why it didnt work out with neither government money or policy? Why it work out when the MPS showed up? Because these “predators” were scared off, they fled, then no one is maliciously short-selling the stock market anymore, that’s why the stock market steadied. It’s that simple, but whether this is the case, we need a thorough investigation, into those accounts, to see if there is certain pattern, if not then we can discard this possibility, but we need an investigation.

    Ofcourse, many readers also suspect if this stock market crash is a ‘financial war on the international level’, if this is foreign players short-selling China. According to my observation, it is not, or it doesnt like it. What makes me say that is, if we study what George Soros did back in 1997, we’ll see there is certain pattern when they do it, for instance, when they tries to short-selling Thai stock market they would make similar moves in surrounding countries, the stock market of Singapore and Malaysia, they would also make moves in the foreign exchange market, they make move on multiple front, causing the regulators to have hard time judging whether its the stock market or the exchange rate they are targeting, and usually they get their hands on these markets out of such confusion, that’s their classic behavior; and there is the component of ‘psychological warfare’ as well, that is “public opinion”, lets look back at what happened in 1977, writing the entire Asian economic development model off was the ‘norm’ across the globe, which brings great panic to the market. Now, let’s see this stock market crash, firstly, only the Shanghai stock market suffered a severe crash, but the stock market in Hong Kong did not, this means there was no coordination between these two stock markets, if this is them, then surely Hong Kong should be the target as well, but this is not the case; Secondly, the exchange rate of the Renminbi was steady during the stock market crashing period, this is another indication that this is not their doing; thirdly, there was no massive propaganda campaign utilizing this stock market crash to negatively ‘predict’ the Chinese economy, there are some reports in that nature but there was no “public opinion” like what they did back in 1977. Therefore, my opinion is that this time it is not players from Soros level. Rather, its quite possible that this is the doing of ‘domestic element’, or a collusion between domestic and foreign elements, and their method is crude compared to Soros, so this is some low-level players. Which is why this freaked people out, because if such low-level players with crude methods can crash the stock market like this, this means we need improvement in our regulations, imagine what if this is a high-level international player instead, that would be another level of playing, so we need to be prepared, we need to do an investigation.”(this analysis does not applied to the July 27 ‘crash’ as the video blog was created a week before it happened)///////

    Now, i think Mr.Song’s input on the recent stock market crash has alot of merits, but from my point of view, the most interesting part of his input would be certain things that he clearly ‘touched’ in his analysis yet he completely ‘overlooked’ them at the same time, things like “HOMS” and “Soros”.



    • Robert Barricklow on July 30, 2015 at 8:42 am

      I’m thinking the private Dark sector that not only has access to fund much more deadly/powerful than any state government but the NSA type of electronic surveillance and capabilities the engineering ups & downs at will.
      That hidden system of unaccountable finance that rules as the legendary invisible hand.



      • henry on August 1, 2015 at 3:01 pm

        @”rules as the legendary invisible hand”

        I call it “the Control Grid”, a concept i borrowed from the Sci-Fi tv series “Falling Skies”, in which the Espheni invaders of earth (also known as the “Overlords”) have set up a planet-wide grid-system to enslave and control the human population, and the main power generator for this vast system happens to be located on the Moon, I call it “the space assets”; in order to weaken the Espheni’s “control grid” and eventually overcome their occupation, the ‘resistance movement'” have to knock the “power generator” down first.

        There is another recent tv show called “Mr.Robot”. An underground hacker group calling themselves “fsociety”, who believe the world is run by the “Evil Corp”, try to recruit a ‘like-minded’ computer genius ‘Mr.Robot’ into their cause to fight the “Evil Corp”; and this is how they recruited ‘Mr.Robot’, they hack into a mainframe computer of the “Evil Corp” only ‘Mr.Robot’ can stop, that’s when and where the hackers deliberately left a unique signature for ‘Mr.Robot’, and thats how ‘Mr.Robot’eventually located their secret hideout. I call it “Operation Mr.Robot”.

        but let’s come back to ‘reality’, to Mr.Song’s analysis, it seems hes quite ‘right on the money’ when he says “the real ‘secrets’ is in these ‘small accounts'”;
        because the CSRC(China Securities Regulatory Commission) probed Hundsun Technologies on July 13, although it said “off-market margin financing and sell-offs using the HOMS system were merely “a small fraction” of total transaction value”.
        On July 27, the same day Shanghai stocks ‘crashed’ again, the CSRC also probed the other ‘two smaller companies’ running stock trading platforms(also mentioned by Mr.Song), namely ‘Mingchuang Software Technology’ and ‘Tonghuashun Network Information’; the announcement of the investigations came after the stocks slumping and the CSDC has urged all agencies to follow strict rules of implementing ‘real-name registration’ on July 14, prior to the July 27 ‘crash’.
        It seems the “‘secrets” is in the ‘small accounts'” indeed as all three technology company running stock trading platforms have now been probed by the CSRC following recent “stock market crashes”.

        While Mr.Song understands perfectly the very name George Soros is synonymous to “financial war”, he seems to be unaware of what ‘the subject of his study’ said lately,

        – “If there is conflict between China and a military ally of the United States, like Japan, then it is not an exaggeration to say that we are on the threshold of a third world war,” Soros said.”
        – “To avoid this scenario, Soros called on the U.S. to make a “major concession” and allow China’s currency to join the International Monetary Fund’s basket of currencies. This would make the yuan a potential rival to the dollar as a global reserve currency. In return, China would have to make similar major concessions to reform its economy, such as accepting the rule of law, Soros said”
        – “An agreement along these lines will be difficult to achieve, Soros said, but the alternative is so unpleasant. Without it, there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying.”

        these remarks were made by him On May 19, at the “Bretton Woods conference” held at the World Bank Headquarters in Washington. There, in his remarks, not only will Mr.Song find signs of conflict of interests in the financial arena/”financial war”, but the threat of ‘actual war’, and “world war” at that, but also the ‘real danger’ of the alliance between Russia and China, i call it the “Russo-Chinese/Sino-Russian duo”, otherwise known in the “Fringe” universe as “The Days of Future Past”, borrowed from the X-Men movie, where a military-industrial complex project called the “sentinals” were pursuing the X-men,first at a deserted Red Square, the heart of Russia, then the “sentinals” standing on the watchtowers of the Great Wall, symbol of China(being conquered), where these super-humans “turned the clock back” before their “extinction event” happened, fun movie, and again there was “the duo”.

        Not only ‘the duo’ suffered the greatest loss of human lives at the hands of fascist forces during WW2, they are also the alleged ‘enemies of Zion’ in Joseph Smith’s “White Horse Prophecy”..
        More recently, “the duo” held their first ever “joint naval exercise” in the Mediterranean Sea where they could ‘see Greece’ from their decks, the exercise started on May 11, ended on 21th, not coincidentally, the next day on May 12, RT reported “Russia invites Greece to join BRICS bank”, meaning leaving “Euro-zone”, and the fiat currency of the private “banking clique” that controls it, entering another zone where representative currencies backed by gold may just be the cure for the “Greek Crisis”, a crisis serves to be the “liability” of Europe’s number one economy. Once Greece leaves, the “shackle” will be off the German hands for them to use their repatriated gold to re-instate their own representative currency, others may follow, “Greece” could be the first piece of the domino.
        Even with this “shacke” still on, the Germans are already saying they “cant fulfil certain NATO obligation”, the bailouts keep the fiat currency alive, the Euro-zone intact,the EU functioning, ultimately this financial arrangement helps to solidify the military defense establishment of NATO. Inviting Greece to leave the Euro-zone thus constitute a “direct challenge” to NATO, then its no wonder the Russian sent out the invitation with their warships anchoring in the Mediterranean, and just before the joint naval exercise ends, on May 19, George Soros gave that warning about “World War III”.

        My question to Mr.Song would be, do you still think, under such circumstance, that the recent “unusual” stock market crashes were merely duo to ‘domestic element’ that it’s an isolated event? Soros may be “involved” afterall, just not the way Mr.Song expect him to behave like from your “1997 Asian Financial Crisis” example, and this time, he may be the “low-level player”, and the “low-level player” that you think caused the crashes, may in fact be the “high-level player”.
        Let’s not forget the “timing” too, given the stakes are this high with “Greece”, don’t you think its little “coincidental”, that at the same time that Greece “changed her mind”, the Chinese stocks experienced a worst market crash? that how “Greece” is related to the event at home, how Soros’s warning is related to the situation in Greece? Hence, Mr,Song, while i agree there may be “domestic element” that played certain part, but the “secrets” in those “small accounts” as you say, some of those may just be trailed to “beyond-domestic” places.

        Btw, Mr.Song, the Pentagon just established a new “Space-War Centre”, allegedly for countering “the Russian and Chinese threat to their satellites”, but is it little too late? i mean like 8 years late, considering that the Chinese have conducted their “anti-satellite test” back in 2007? with “Jurassic-age” rockets?
        that’s what your “lamestream media” news said anyway, don’t you think if it was intended as a “message” then it’ll take something more than “rockets” to get into the heads of those whose “secret space program” started at least decades before you?
        then we had little “confirmation”, the concerted effort of exposing those so called “mysterious structures” in the remote areas in Western China,by whom? “Google Earth”..so how is this fitting into the “puzzle”? remember Google had a big quarrel over “internet freedom” with the Chinese government back in 2010 then it pulled out of the mainland? the same year the Chinese unveiled their first “land-based mid-course missile interception test”, on January 11, how is this significant? back in 2007, on exact the same date, the “anti-satellite test” was carried..coincidence or design? but let’s add more “coincidence” to the ‘equation’, Google’s CEO Eric Schmidt who called China an “IT menace” took a surprising trip to North Korea in early January, followed by the second Chinese “ground-based mid-course missile interception test” which was carried out in late January, of which there are certain video footages to suggest it was possibly “directed-energy weapon” as opposed to “rockets”.. Another thing the “lamestream media” failed to inform is, the newly ascended North Korean leader Kim Jong-un was “happy” to see Google CEO but has never met with the Chinese president..and speaking of “Korea and IT”, and “coincidences”, in late December 2014, following the so called “Sona Hack incident” in November and subsequent U.S. accusations against DPRK, North Korea experienced an “internet outage”, at the same time, computer systems at nuclear power plants in South Korea were hacked,causing the South Koreans to conduct drills “to cope with a full-scale cyber-attack”; the cyber attacks was allegedly done by an “anti-nuclear organisation” as a Twitter account calling itself “president of anti-nuclear reactor group” leaked informations concerning the nuclear power plants online and claimed responsibility for the “cyber attack”. The group is allegedly based in “Hawaii”, where U.S. president Barrack Obama was “coincidentally”, having a meeting with Malaysia’s Prime Minister Najib Razak also in “Hawaii” on December 24, four days later, another “Malaysian” airliner flight QZ8501(Indonesia AirAsia Flight 8501) crashed into the Java Sea, on 28 December.
        and two days after the “second” Chinese stock market crash on 27th July, an wreckage belongs to the Malaysia flight MH370 which “mysteriously vanished” more than a year ago, has been allegedly found.
        http://www.msn.com/en-au/news/world/mysterious-plane-wreckage-sparks-mh370-speculation/ar-AAdGhWk?ocid=mailsignout

        Mr.Song’s “the real ‘secrets’ is in these ‘small accounts'” could well lead to “secrets” much bigger than what he originally anticipated, and possibly more humongous than what he could have ever imagined.
        like i said at the begining, its time for “the Control Grid” and “Operation Mr.Robot”, ofcourse, im talking about my favorite Sci-fic shows”, not my “worst reality”.



        • Robert Barricklow on August 1, 2015 at 6:02 pm

          An interesting analogy to say the least.
          Soros of course, is evil incarnate. Duplicitous in nature, and deceptive as hell. There is an Nazi/Zionist enigma in my mind’s eye. On the Nazi side I can see the attraction to fighting the banksters that initiated WW1 & WW11 as well. That, in itself, means they cross swords to draw blood. But then there are connections that defy that natural enemies given. Simple infiltrated/intrigues anomalies, or deep connections?
          China’s Rothschild infiltrations are do not bear well for China’s future, in the since of her people. I would like to think, that they & Russia can lead the way to a public banking system that benefits all the community, including the few rich. But the few want no part of this future based on the living/sharing.



        • Robert Barricklow on August 1, 2015 at 6:13 pm

          Found a couple of interesting quotes on this subject, matter that speaks to the heart of it:

          “It might be a basic characteristic of existence that those who would know it completely would perish(recent Banker deaths, for example), in which case the strength of a spirit should be measured according to how much of the “truth” one could still barely endure.” – Frederich Nietzche/Beyond Good & Evil.

          “The duty of a revolutionary is to always struggle, no matter what, to struggle to extinction” Auguste Blanqui

          Oh, I can’t resist:
          “The ultimate fight against radical evil is the ultimate affirmation of life.” Hannah Arendt



        • henry on August 6, 2015 at 2:43 am

          @”then we had little “confirmation””, no sooner said

          @”then we had little “confirmation””, no sooner said on gizadeathstar

          http://defensetech.org/2015/08/03/a-coming-war-in-space/

          the “interesting” thing is, it was the Chinese mouthpiece “globaltimes” report that led me to the story..

          //////
          btw, the Malaysian authority has just officially confirmed today(Thursday, 6 August) that “the aircraft debris found on Reunion Island is indeed from MH370”,

          personally, “i dont buy it”, when i say “dont buy it”, i dont mean the technical question of “whether the recently found wreckage belongs to MH370 or not” because as far as i’m concerned such question is a “diversion” that serves to conceal the “real story” behind its “discovery”.

          i’ve already noted in my earlier comments, that this discovery of MH370 debris “coincides” with a number of “concurrent events of significance”,

          – the “second” Chinese stock market ‘crash’
          – the approaching “Super Typhoon Soudelor”
          now add “the discovery and confirmation of flight MH370 debris” to this “equation”,
          – discovery of MH370 debris
          what’s the “common denominator” between these events?
          – China/the Chinese.

          but this is not the only “interesting background” behind “the story of the discovery of MH370 debris”, the Malaysian authority made the official announcement confirming the wreckage belonging to MH370 when the county is also hosting the 48th ASEAN Foreign Ministers Meeting in Kuala Lumpur, so how is this “interesting”? for starter, “the South China Sea dispute” once again ‘dominated’ the discussion, and apparently George Soros is concerned about “Chinese aggression” in South China Sea as well,
          “Well-known American investor George Soros also expressed concerns about the Chinese aggression in the South China Sea in recent months. He said at a recent World Bank forum that if China suffers economically, it is likely to initiate a third world war in order to achieve national solidarity and to get itself out of the economic difficulties. Even if China and the U.S. do not engage in a war directly, Soros said, there is a high possibility of military conflicts between China and one of the U.S. security partners, Japan. World War III could follow as a result, Soros said.” ( reported by VOA on June 3, after the joint Russo-Chinese naval exercise in the Mediterranean Sea)

          but there is something more “interesting” than the meme of “South China Sea”, apparently there was a “media buzz” about the U.S. Secretary of State John Kerry attending the summit in Malaysia, besides his talks with his Chinese counterpart Foreign Minister Wang Yi on “South China Sea”, which is, Mr.Kerry is apparently carrying a cane belonging to the Kennedy clan with him wherever he goes and showing it off to fellow ASEAN diplomats whenever is possible..

          if that’s not “interesting” enough,
          “at the same time”, the U.S. based outlets were running a ‘weird’ story of “small cylindrical UFO” trailing commercial airliner, this time the target is a Virgin Atlantic Flight taking off at John F. Kennedy International Airport in New York..

          i have expressed my opinion on the “disappearance of Malaysian flight MH370” quite clearly on gizadeathstar, but there is something i also had on my mind at the time when i expressed it but i never said it before, after the MH370 incident, based on the assessment that flight MH370 was possibly a “message” to the Chinese, a “pillar of the BRICS alliance”, there is the possibility another “pillar” of this alliance may get a similar message, it may even be the similar type of message, and it may occur at a similar “geopolitical/geographical hot spot”, then the story of MH17 disaster in Ukraine came, and i was not surprised to hear it because i was “expecting” it.

          i’ll just say this, besides the “coincidence” of “timing”, the “common denominator” between these two seemingly unrelated events are,

          – the 35th President of the United States of America John F. Kennedy
          – commercial airliner disaster/ or a potential threat to commercial airliner

          Back in 1963, President Kennedy signed Executive Order 10289, given the Treasury the authority to issue silver certificates which took away Federal Reserve’s monopoly to control money, but he was a president, and at least be knew what he was doing and what he might get himself into, then he was murdered,

          but now, dare i say, some people out there that are so afraid of losing their power, they are threatening innocent lives, innocent people who have nothing to do with this power struggle and are completely unaware of whats really going on.
          and this also concludes my assessment on “the disappearance of flight MH370” and its so called recent “discovery”.



  4. Robert Barricklow on July 29, 2015 at 8:53 am

    If both systems at odds with each serve the profit gods;
    what prey tell is the difference?

    The Prophets[profits] have become Gods[demigods]. The FIRE Prophets[finance, Insurance, Real Estate] rule over Earth[minerals, oil, gold, biopiracy, timber: the living]; Air[pollution, carbon tax, geo engineering, privatizing the sun rays(Spain), the very breath of life; Waters[polluting & radiating the seas/air/earth, privatizing the waters to where the very rain is declared unfair competition(Bolivia), rivers running dry. The Profits are now the new Gods that supply{people] & demand[the ruling tyranny] will now both obey/worship. The Bible[the law of the land will be amended daily] according to the bottom line: The Profit Gods.

    One amendment example today:
    http://rt.com/news/311040-puerto-rico-vulture-funds/



    • marcos toledo on July 29, 2015 at 9:09 am

      Thanks for the link Robert it’s so bad here in Puerto Rico that we have to pay sales tax on food stuff now. The book and record stores and major local department stores have closed.



      • Robert Barricklow on July 29, 2015 at 11:15 am

        Bankster Occupied Territory.

        “They” are picking them off one by one: Greece, Puerto Rico, and on down the line.
        As the saying goes to those in the know,
        “And then they come for you”.

        Unless…?



      • Robert Barricklow on July 29, 2015 at 11:41 am


      • Robert Barricklow on July 29, 2015 at 12:01 pm


        • marcos toledo on July 29, 2015 at 6:55 pm

          But as I written before what will the carrion eaters eat when all the carrion are gone. Each other I guess there be nothing else to eat. Thanks for the links especially the podcast and the BlogSpot on Puerto Rico.



          • Robert Barricklow on July 30, 2015 at 8:34 am

            Your most welcome marcos.

            Your right of course.
            They’ll cannibalize each other, as they are doing to others now.

            Their economic system is based on waste, destruction & death.
            Time for a 21st century one
            based on the living.



    • DanaThomas on August 2, 2015 at 12:36 am

      This reference to the classical Elements seems very apt, an analogical interpretation that can lead us far into unexpected territory.



      • Robert Barricklow on August 2, 2015 at 12:46 pm

        Dana I just came across your reply.
        I’m pleased & flattered that you found my analogy apt; and I would like you to expand on “unexpected territory”; that is, if you can so graciously fine the time. I mean no disrespect here; quite the contrary, I find your comments at times, making myself reexamine some conclusions I’ve had – and your links you provide are enlightening & informative.
        In speaking of prophets[above] Abraham Herschel said something to the effect that the prophet is “compelled to proclaim the very opposite of what his heart expected”. I think that many at this site and around the world for that matter, were brought up to believe in a spirit that is now absent – in the way the world is going; that a darkness has been let loose upon the air, waters & earth. In other words, many of us see what our spirits & hearts oppose.

        In closing, I’ll quote the humorist Professor Irwin Corey – who hits the nail on the head,
        “If we don’t change directions soon,
        we’ll end up where we’re going”.



  5. Rad on July 29, 2015 at 1:42 am

    I believe things are like this

    – Chinese hackers stole the entire US state employes data base, some millions of them
    – as a revenge US through its financial back doors and control elements crush the Chinese stock markets, trillions of dollars are lost



  6. henry on July 28, 2015 at 10:00 pm

    Did “Moscow” and “Beijing” just got “double-slapped”??

    – first, RT published an article on 26th July titled: “Collapse that never happened: China bounces back, discrediting Western analysts”,

    – the very next day, on Monday 27th, “China stocks suffer biggest one-day loss in 8yrs, Shanghai Composite drops 8.5%”, – RT

    – The very same day “China stocks suffers another ‘meltdown'”, an “apocalyptic thunderstorm” hit the city of Moscow, RT: “Apocalyptic scenes in Moscow as thunderstorm unleashes freak lightning on city”

    This caught my attention, because i was just on the phone with my mother yesterday evening when a “thunderstorm” also started hitting Beijing.
    It was actually my mother who first raised the question on the phone “is this thunderstorm another weather manipulation?”, i told her i cant make judgement because im not there and i dont have anything available to make a suggestion.
    http://tv.sohu.com/20150728/n417671938.shtml

    Then the next day when i read RT news that Moscow was hit by a “thunderstorm” on 27th as well..
    Maybe just a “coincidence” that Moscow and Beijing both were having thunderstorms the same day that China’s stocks experienced yet another “meltdown”?

    the thing is the ‘first’ Chinese stock market “meltdown” occured on July 8 and 9, at the exact time when Russia was hosting the 7th BRICS summit in Ufa, as someone who doesnt believe in “coincidences”, i had to suspect if this was a “message” to China and the BRICS alliance.

    and there was something else i noticed while reading RT news,
    it reported on May 12 (2 months before the Ufa summit) that “Russia invites Greece to join BRICS bank”, yet, on July 7, just a day before the summit, RT reported “Greece may apply for BRICS bank, but not discussed officially – Putin’s aide”,
    since Russia has invited Greece to become the sixth member of the BRICS New Development Bank back in May, then wouldnt the Russians want to discuss this “officially” when Russia is the hosting nation of the BRICS summit? something must have gone awry.. then the very next day, China’s stocks crashes..

    Ufa BRICS summit could have been a perfect occasion for Greece to become a member in the BRICS bank, the Russians obviously want this to happen, the Greeks themselves have been also gaining momentum in their freedom of choice for alternative financial partnership ever since the new ‘defiant’ Greek PM was elected, especially with the Greeks holding a ‘referendum on bailout terms’ on July 5 in which majority of Greek people(61.31%) voted “NO”.
    Yet,on July 6, on the day following the referendum, PM Tsipras put forth a draft proposal which included most of the demands of the creditors, this happened just 2 days before BRICS summit, and the very next day RT says ‘the issue of Greece joining the BRICS bank will not be discussed officially”, clearly, the Greek people were betrayed, but what about its “no back down” PM ‘backing down’ at such crucial juncture? was he and Greece blackmailed into submission?



    • henry on July 28, 2015 at 10:02 pm

      and this is what ‘Cobra’ has to say about these events, which completely validated my own suspicion.So, i will just quote the original conversations.

      “Rob –I guess one of the first things that we could probably look at here is this recent financial situation that happened in Greece. The people voted for it. Everyone wants to know. Ben Fulford said that the Dragons are going to support this. Can you talk about was this just plain corruption? Was it a threat? What happened with the president denying the people their vote? It’s nothing new for the Cabal, but can you talk about the Greece situation?

      COBRA – Yes, the Greece government has been threatened and this is the reason for these developments in Greece the last few days. As you know the Dragons have extended their offer to help Greece and this has also been reported in a certain way to the mass media. And now it’s actually an escalation of conflict between the Eastern alliance and the Cabal as you can see in the Greece situation right now.

      Rob – Okay, so the president’s not to blame. Were they threatened with a tsunami, a scalar wave, a false flag of some sort? Did the Mossad and the Khazarian Jew wing of the Cabal still have dirty bombs that could blow up in cities? Do we know anything about this specific threat?

      COBRA – Okay. There were also a little more personal threat to certain people in the Greece government and their families.”
      //////////////

      “Rob – Can you talk about this shutdown of the stock-market? Was this a little exercise by the good guys, the bad guys? Let’s talk about that shutdown that put those little frantic guys down there in the stock exchange kind of on their heels for a bit. What was that about?

      COBRA – Okay, there are a few situations happening here. First is an escalation of a secret world which is happening behind the scenes for the financial system. I’ve said before, between the Eastern Alliance and the Cabal – and I have actually explained in one of my last posts that JP Morgan had control over the computer program which controlled global financial systems and this computer program had been hacked in the last week by different forces. Some of them are of the light and some of them are not of the light. There was a certain operation by the light forces that have tested the security protocols and the firewalls of that computer program and there was also an attack on that global financial system by the Cabal forces. Again, China – because they want to warn China and they want to bring China on their knees, simply because China is preparing for the financial re-set and the transition to the gold-backed financial system. So there are those two things happening at the same time.”



      • Robert Barricklow on July 29, 2015 at 8:18 am

        Very informative.
        Thanks for the post & links.



    • DanaThomas on July 29, 2015 at 6:09 am

      I think weather manipulation is on the cards these days, like cyber attacks. And these are both areas that seem to have have several players with considerable capabilities…



      • henry on August 4, 2015 at 3:40 am

        thank you very much

        guess where “the strongest storm of 2015” is heading?

        http://www.msn.com/en-au/news/world/super-typhoon-soudelor-powers-towards-taiwan-may-boost-el-nino/ar-BBlnhqX?ocid=mailsignout

        and please remember “when” this event “happened”

        a week after the “second” Chinese Stock market ‘crash’.



        • henry on August 4, 2015 at 4:38 am

          @”a week after the “second” Chinese Stock market ‘crash’.”

          and less than a week after the alleged ‘discovery” of the wreckage of Malaysian Flight MH370.

          my reaction to it was: if the vanishing of Flight MH370 was a ‘message’ to the Chinese, then the ‘discovery’ of the plane would be a ‘message’ as well, especially if it happened right after the second Shanghai Stock market ‘crash’.

          and if the Chinese dont play ball with those sending the message, then i expect them to take ‘action’ as the possible next step,

          in another words, i was expecting “Super typhoon Soudelor”.

          meaning, the recent Shanghai Stocks ‘crashes’, and the ‘mysterious disappearance” of Flight MH370 more than a year ago are now “case closed” for me.

          as i’ve said it all along, that “a rogue international group” is responsible for Flight MH370 incident, that it’s an evidence of an intense conflict between competing factions.



  7. Miguel on July 28, 2015 at 9:42 pm

    I don’t think there is so much mistery around it but the usual management of the Minotaur since Nixon…. Those Tbonds were liabilities in china’s Central Bank… The holder of an asset/shares sold in the market shows up at the Cb and demands his Forex to wire overseas. CB has to take the RMB from the seller and give him back his foRex. Now, CB is stuck with the RMB that were formerly in the stock market…so CB will put them back in the market and will slowly engineer a Japan style deflation in the market to flush out the excess.

    The TBILLS floating around will eventually be swapped again towards some similarly odd purpose like a bail out of Brazil banking system and so forth .
    I agree there are sinister things happening… but this is only the first act… so ething is bound to go wrong at some point after 2017… and these tricks won’t be so easy to pull.



  8. goshawks on July 28, 2015 at 2:48 pm

    I have just finished Yanis Varoufakis’ book “The Global Minotaur” (updated version). In it, he notes the need for a ‘global surplus recycling mechanism’ (GSRM), which has near-vanished post-2008.

    Varoufakis observes that the US was the GSRM until the 2008 ‘recession’, in two ‘incarnations’: During 1945-71, it was through ‘surplus’ US industrial output producing profits, which were then dumped overseas (primarily to Germany and Japan) to build-up markets for US output. (‘Recycled’.) During 1971-2008, the situation was reversed. US manufacturing sectors took a quick slide toward oblivion, while massive foreign-capital influx to Wall Street (and reinvestment of same) provided a strange and barely-stable GSRM.

    Post-2008, Wall Street’s unwillingness to lend (because of toxic financial instruments in the system) shut down this iteration of the GSRM, leaving no unitary system in place. Financial chaos resulted. (You need to read the book to get a flavor for the above.)

    In the updated 2013 edition, Varoufakis discussed China’s potential to become the next GSRM country. It would serve in a role similar to the US during 1945-1971: “Surplus’ manufacturing at home, and dumping of profits overseas (‘recycling’) to build up markets for its goods. He noted China’s strengths, but also it’s vulnerabilities. These included weak consumption at home (necessitating FDR-style ‘priming of the pump’ through big projects in China), a property bubble set to explode, and neighbors wary of becoming dumping grounds for Chinese goods (i.e., no home industry).

    Varoufakis also noted that the US might try to fight China to resurrect another US-based GSRM. Major cat-fight. He predicted global malaise, high unemployment, and low-to-negative growth until another GSRM was in place – whoever/whatever it turned out to be. When you read the book, his predictions seem eerily accurate.

    I suspect that Varoufakis’ high-visibility in financial circles has caused deep-thinking and subsequent ‘moves’ by the Chinese, Wall Street, and other interested parties…



    • sjy1969 on July 28, 2015 at 3:28 pm

      Indeed, and now the whole state-driven investment/manufacturing model is running out of steam and has only been kept going by further applications of credit, seeing as deficient Chinese consumer demand cannot take up the slack. If that bubble pops …

      Add to that the coming demographic crunch, a legacy of the one child policy and things could get very interesting indeed.

      Seriously folks there’s enough home-grown factors influencing what’s going on in China without the need for bankster conspiracies.

      Interesting stat: the Chinese produced more cement between 2011-2013 than the U.S. did in the entire 20th century.



  9. DownunderET on July 28, 2015 at 2:06 pm

    I’ll just say one thing here, the Chinese are not financially stupid. So what’s this all about? I dunno but I smell a rat and that rat just could be the “hidden system of finance”. In other words, if anybody wanted to bring down China, it’s the elites, think taking aim here !!!!



  10. TRM on July 28, 2015 at 12:54 pm

    China is selling a lot and buying a lot of gold as the USA readies its trump card. Space! Of course they won’t admit they are off-world but they will reap the benefits. While Russia & China try to go to the gold standard the USA will go to the platinum standard.

    Watch Live As A Platinum Asteroid Worth Trillions of Dollars Flies Past Earth

    http://www.iflscience.com/space/watch-live-platinum-asteroid-worth-trillions-dollars-flies-past-earth

    “Spectroscopic analysis has revealed the composition of the asteroid, and made it a prime target for future asteroid-mining missions. It is approximately 452 metres by 1,011 metres in size.”

    So who could “aquire” it and “plant” it on earth to be “discovered” by someone in USA controlled territory? Pick me. I’ll be happy to be your cutout for a 0.0001% cut 🙂



    • Lost on July 28, 2015 at 2:16 pm

      Platinum can be made in quantity no need to mine it anywhere. It’s easier than gold.



  11. Aridzonan_13 on July 28, 2015 at 11:48 am

    The BRIC’s 105 nation alliance has a tiger by the tail.

    As I’ve stated previously, according to Water Burien of CAFR fame, International CAFR funds were used by Mr. Global to buy everything of serious value. So, Carlin’s maxim of “They own all the important land / stuff on the planet”, is not an exaggeration. And let’s not forget that there exist the possibility the Treasury Dept issued duplicate UST’s across the globe to purchase cooperation.. Another good reason for China to dump UST’s.

    Now, combine that with the serious probability that the Break-Away element may be mining space / Ceres https://www.youtube.com/watch?v=SkHh6FTKPYg&feature=youtu.be.. Therefore, the $T’s of fococta derivatives are backed by these space based mining / industrial ventures. Hence, we can surmise the Shadow Economy may indeed now rival the Main Steam Economy. The one that is being Naked Shorted out of existence by Wall St.

    Dumping UST’s won’t affect the Shadow 800lb gorilla..



    • Robert Barricklow on July 28, 2015 at 2:34 pm

      The of-the-books shadow gorilla is more likened to a Godzilla
      in their morality, behavior, lifestyle, and of course, size.



  12. marcos toledo on July 28, 2015 at 10:38 am

    Or is China like a smart rat jumping off a ship of economics that’s about to crash onto the rocks of reality. Off topic have you been following the resurrection of the Flat Earth and Geocentric Universe are our elites frighten that their slaves us might try to escape. Also there is a open letter article to Alexis Tsipras to put Greece on the gold standard I found interesting it on the top left.



  13. Robert Barricklow on July 28, 2015 at 8:27 am

    Or a hidden system of finance off shore or off world?



  14. basta on July 28, 2015 at 7:44 am

    The current Chinese financial carnage is really spectacular in so many ways, and the T bill dumping — over half a trillion dollars in six months — is jaw-dropping. What is equally jaw-dropping is that no one even noticed until this article came out.

    We are in virgin territory here, and have reached an unprecedented level of worldwide financial chicanery and manipulation; literally everything is a lie. It truly is breathtaking.

    Who indeed is buying this paper? The Fed, through “Belgium” is my first guess. Just throw another debt-log on the fire; as Hillary so rightly put it, in a phrase that truly defines our time: “What difference does it make?”

    Also, so much for China as some pillar of the BRICSA block. It is a paper tiger and has all that ails Western finance without the depth and reach of corruption to keep the fiat Ponzi racket going.

    Hair-raising times, folks.



    • loisg on July 28, 2015 at 8:45 am

      So much for China being a pillar of the BRICSA block…that may be the purpose to all this if Western finance is behind it. I’ve always contended that they won’t let some upstart take away their control without a fight, and this is certainly one way to fight it.



    • sjy1969 on July 28, 2015 at 2:04 pm

      This man has been warning about China for ages:

      http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/



      • basta on July 29, 2015 at 5:11 am

        Yes, Pritchard very much reflects the conventional view of the City re: China, and there is no great mystery that its stock market is still massively over-valued and that there will be a Great Unwinding.

        ZH reports that the Chinese PPT threw another ~$100 billion at the market yesterday to float it; if you are throwing that kind of money at the market on a nearly daily basis and it barely sticks then you will be seeing an even greater T-bill dumping moving forward. Then things will really get interesting, and if indeed it was Western players who destabilized the market, then there will be horrific blowback, and I don’t think they are in any way that stupid.

        But I also just don’t see how the Chinese authorities can get a handle on their market without severely undermining it, even breaking it. We’re in that loony upside-down thought territory now, akin to the infamous Vietnam-era officer who said, “We had to destroy the village to save it.”



  15. DanaThomas on July 28, 2015 at 7:32 am

    Even the proverbial “Mr Li’s” can make a serious mistake. And so China may have been “forced” to make this move. By “someone” out there. But if not, this may be just another move on the part of the Chinese oligarchy to create conditions they perceive as being favourable to them in the new financial system that will emerge from the current chaos.



    • sjy1969 on July 28, 2015 at 3:38 pm

      Or maybe the Chinese aren’t the sages and oracles many believe them to be and have made some bad decisions over the years which are now coming home to roost. What you are seeing is the predictable result. The only hand you may be seeing is the Invisible Hand of Adam Smith.



      • sjy1969 on July 28, 2015 at 3:43 pm

        Probably not a good analogy, using an inaccurate definition of invisible hand to arrive at a play on words but hey ho the wider point still stands. It’s a market reaction to fundamental problems.



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