Zero Hedge reported that US GDP is growing at an annualized rate of 1.1% while the debt is growing at 21% though John Williams of Shadow Stats has said the US economy is actually contracting in real terms after discounting for inflation. Collapse is now certain. What remains for us is to observe how the collapse will unfold and whether or not World War III can be avoided.
LIBOR (London Interbank Offered Rate) overcharged many cities in the US on interest rate swaps hedging against higher rates the banks knew would not be forthcoming. Detroit lost 100 million dollars and Oakland lost 12 million. Tim Geithner was head of the Federal Reserve Bank of New York when he acknowledge the ongoing interest rate manipulation. Other potential lawsuits could be forthcoming from people who bought Credit Default Swaps. These lawsuits against the 16 banks including JP Morgan are worth tens of billions. Lawyers have enough evidence to argue successfully against dismissal and move beyond that to a motion for discovery to force release of evidence from JP Morgan, Bank of America, Societe General, Deutsche Bank. HSBC and the others.
Neither Obama nor Romney nor the Congress is willing to send the CEOs from those banks to jail. This means they will soon be forced to manufacture a settlement as they did in the mortgage fraud cases. In that instance the bankers had defrauded American home owners and buyers of mortgage backed securities of trillions. The cases were settled for 5 billion dollars. That is like a bank robber being caught by the police with 2 million dollars fining him $2,000 and letting him keep the rest of the money and go free without trial. This settlement will not be popular in an election year. The public does not understand LIBOR but they will be angered when they see more banks being given minimal fines and CEOs escaping jail time.
Another scandal has emerged involving banking. HSBC executives were forced to testify before the Senate regarding money laundering through a branch office in Miami and a bank subsidiary they had bought in Mexico. The Senate did not call John Cruz, the author World Banking World Fraud, who revealed that HSBC stole customer identities to help them launder drug money. Cruz also said that 71% of all commercial accounts at HSBC were completely fraudulent. He also found PayPal was helping HSBC launder money. This hearing is a limited hang out and will go nowhere beyond a few headlines and a fine.
This follows revelations that Wells Fargo-Wachovia and Bank of America were laundering money for the Sinaloa and Zetas Drug cartels. Also on the back burner is the Fast and Furious scandal which is really just a continuation of the guns for cocaine program that first surfaced in the 1980s Iran Contra scandal. Previously, I calculated that more than trillion dollars a year in drug money, illegal weapons sales and political bribes are laundered annually by the banks. Asia Times told us 500 billion dollars a year in bribes which does explain why governments are doing what they are doing. American currency weighs one gram. A trillion dollars in $20 bills weighs 50 billion grams or 50,000 metric tons which is more than a thousand American tons every week. That cannot be done without the approval of the government so do not expect much to come of any of these hearings at least until the dollar collapses and the nationwide food riots begin.
A favorite method of exiting Depressions is war. The CIA-Mossad combine with the help of the Saudis was able to set off a bomb inside the Syrian Defense headquarters killing the President’s brother-in-law and other top officials. In Bulgaria a bomb was placed in the luggage of an Israeli tourist bus. A man who was a Swedish citizen of Algerian descent was blamed though Sweden said that man is incorrectly identified. That man had a fake Michigan drivers license with a Baton Rouge Louisiana address indicating the forger wanted this man to be caught. Netanyahu blamed Iran but Israel’s Mossad works very closely with Bulgarian secret service. The man in question was in CIA custody at Guantanamo for two years. America has routinely drugged, tortured and brainwashed young Muslim men at 20 or so black prison sites. Hitler allowed unrestricted monthly visits from the Red Cross to every camp but no Presidents Bush and Obama. The graduates from America’s secret prisons are used in American Muslim mercenary armies and as espionage agents. He is more likely to be a CIA patsy than an Iranian agent.The Syrians do not have a history of financing terrorism. They will likely respond by killing those NATO-Saudi funded mercenaries who are killing civilians in Syria. Some of these battles last as little as 5 hours. Others last 2 or 3 days with heavy losses for the mercenaries. They have no NATO air support so this offensive will not last long.
There can be no successful attack against Syria or Iran that does not begin with a thermonuclear and tactical nuclear preemptive strike against Iran, Syria and Lebanon because they have 150,000 missiles capable of destroying Israel, all 55 US military bases in the area as well as the Persian Gulf fleet. An attack on the Iranian nuclear power plant plus all those nuclear weapons would release enough radiation to kill tens of millions of people around the world. And it could spark retaliation by Russia and Pakistan. It is insane.
That is why the Russian Chief of Staff Nikolai Makarov went to Washington and held professional talks over a period of 3 days his American counterpart Martin Dempsey. They are professionals and see no reason for the theater or drama in the Mideast to draw us all into World War III.
It looks more and more like a financial collapse without a war because the US and Israel cannot pull off a war that will win. Israel alone could not even invade Lebanon. Hezbollah has enough missiles to turn Tel Aviv into a parking lot.
For many years it has been known that the bankers would lease gold bullion from either the US government or from the Central banks of England and Europe. They then sell this gold as paper certificates about five times which would be illegal if you or I did it.
Jim Willie has a PhD in statistics and his writings have been quoted by respected analysts. His latest warning is that allocated gold accounts have been looted just as the customer cash deposit accounts at MF Global and Peregrine Best. There are about 165,000 tons of gold above ground in the whole world. Jim Willie says the bankers have been looting those accounts and substituting paper certificates for the gold bullion on deposit. This charge has been made on the basis of inside informants known to him to have been truthful and knowledgeable in the past. Jim Willie says that at least 20,000 tons of gold held in what have been claimed to be allocated accounts is actually not there. These thefts will be exposed as soon as the banks go into bankruptcy and the court appointed receivers have to distribute assets to claimants. Of course we now know that Gordon Brown famously sold off half of Britain’s gold reserves to help bail out one American bank that had sold more gold than they owned. That cannot be done again for 20,000 tons.
The banks are insolvent. They are propped up with subsidies and Bailouts but will continue to operate until the Credit Default Swaps overwhelm them and shut down them down. Imagine all the lawyers trying to determine who owned the gold and who owned the paper certificates foe gold that had been sold five times.
The bankers’ plan is to hyperinflate our currencies and reduce us to starving masses begging for a handout from the IMF. I do not think that will work since the war option has been taken off the table by the combination of the Russian and American military as well as the ability of Iran and Syria to defeat any military invasions.
There is one last August rumor to dispose of. It has been rumored that some sort of false flag event will be unleashed at the Olympics especially at the closing ceremonies on August 12th. I don’t think anyone will believe them if they say Iran set off a series of bombs. They could release a plague and blame the Iranians. But how believable is that? It is the banker owned Foundations that have been extolling the virtues of plagues for more than 60 years.
There is no way for the US and Israel even with NATO and Turkey to attack Syria and Iran and win. That means that a false flag will not work. Sheikh Imran Hosein has interprets the Hadiths (sayings) of the prophets as predicting Damascus will conquer Constantinople (Istanbul.) Besides Syria and Iran have enough missiles with fuel air explosive warheads to eliminate the Turkish Army in five minutes.
There is the old idea of uniting the world against aliens from outer space. In this version the aliens would attack us at the closing ceremonies on the 12th of August. Again. Nobody will believe it no matter how big a hologram the CIA can project onto the skies above London and other cities.
Bottom Line. World War III has been postponed or cancelled. No plagues will be released soon. But Hyperinflation and bankruptcy are in the future. That means nationwide food riots, rebellions and an offer of a world government with a new world currency that does pay interest to the bankers for money they create out of nothing.
That offer of world government should be vociferously declined.
Notes: This first article will tell you a lot about the ways of the Money Junkies.
Catherine Austin Fitts: The Black Budget And The Leveraged Buyout Of The World Using Stolen Money
This next article will explain a lot about the origins of Money Junkie thinking.
Israel Shahak: The Laws Against Non-Jews In 2 Minutes
The 72 Threat Fusion Centers Were Designed To Threaten You.
There Never Was An American Empire Only A Machine That Consumed Us All
Israel Did 7/7 And 911 Part II
LOL!! I Stole 3.5 Trillion Dollars From You. I Dare You To Do Something.