By Ernest Bey
Today at 7:56am
WHAT WAS STOPPING MR OBAMA SIGNING OFF THE REVISED RELEASE DOCUMENTS?
With the former Vice President Cheney reportedly making provocative statements apparently criticising those who question the underlying purposes of US involvement in Afghanistan, his real intention being to try to protect himself from prospective war crimes indictments as exposure of the drug-trafficking imperative behind this war (as with Vietnam) progresses, Barack Obama, who has ordered a surge in Afghanistan, should surely understand that he, too, might be vulnerable to such an indictment in due course – especially as Mrs Hillary Clinton is placing statements on the record before the National Security Grand Jury that has been investigating many aspects of these matters, including those that we have been exposing in these reports. In this connection there may be a split between former President Clinton and his CIA-wife, Hillary.
Why would Mr Obama add to his problems by continuing to block the Settlements – especially as Rahm Emanuel, Obama’s Chief of Staff, was reportedly told that if he continued to stand in the way, he would ‘cease to exist’? Sources now inform us that, behind Barack Obama, the Settlements are being blocked in real-time by Mr Leon Panetta, the Director of Central Intelligence, in a desperate stand to prevent the termination of the CIA’s free-wheeling Fraudulent Finance operations that have made it the most dangerous criminal enterprise in the world.
'IT WILL BE DONE, OR THERE WILL BE BLOOD ON THE FLOOR'
From several sources came the message [2nd December 2009] – and this is a direct quote that we have been AUTHORISED to use NOW:
‘It will be done, or there will be blood on the floor’.
In the foregoing context, we have also received several indications of ‘infighting’, or a power struggle, going on behind the scenes. When we asked sources whether this meant verbal and internal strife within the structures, we were told: no, probably physical as well.
That is also the impression gained from various separate reports received in this office from close observers in the Washington DC area, and elsewhere.
RECENT PUBLIC SIGHTINGS OF ADOLF SHICKELBUSCH
In the report dated 26th November, we noted that a correspondent had reported that a friend in Houston had taken his wife out for an anniversary dinner at a restaurant where he observed a party which included George H. W. Bush Sr. and Barbara (Pearce) Bush, who was ‘calling the shots’ and issuing directions to all present.
On 30th November, a long-standing subscriber and correspondent indicated to us, separately from another report, that he observed Bush Sr. ‘in the owner’s box at the Reliant Stadium in Houston at the Houston-Indianapolis pro-football game played in Houston’ that Sunday afternoon. The source said that Bush Sr. ‘looked a little ragged but he was next to a young woman not his wife’ [no need to get excited: she was probably a security detail].
OUR PUBLISHED INFORMATION ON BUSH CRIME FAMILY CORRUPTION
In our report dated 26th November we released certain intelligence implicating inter alia both Bush Presidents in grotesque corruption, and we were subsequently informed cryptically that ‘this has been used’ (i.e. appropriate use had been made of the intelligence). It is understood that, since the information (and the accompanying further data) could not be ignored, the effect was to accelerate events while at the same time sharply raising the temperature behind the scenes.
In addition to the reference to Bush Sr.’s Caribbean accounts, you will of course have noted that $12.5 billion of monies awarded consequent to legal process for disbursal to CMKX DIAMONDS INC (CMKX:OTC) were stolen on the instructions of President George W Bush by Executive Order on the Sunday before he left office, from the DTC suspense account in which they were held ready for disbursement. This incredible finding has shocked many observers, we understand.
You will also have taken note of the heading to our report dated 26th November: ‘The financing of Al-Qaeda by US intelligence‘ – a title which we were informed after the posting was ‘absolutely, specifically accurate’. As for the rest of the ‘hard’ information we published, its relevance to ‘the interested’ goes without saying: and has been confirmed.
Concerning Marvelous Investments Limited, the following information first published in the three reports exposing the Wanta ‘Principality of Snake Hill’ deception [20th September, 22nd October and 17th November 2009] is re-appended for the record:
THE 'MARVELOUS INVESTMENTS LIMITED' DIMENSION
At incorporation, the officers of Marvelous Investments were shown under Article VIII of the incorporation documents to be:
• Lee (not Leo) E. Wanta (President and Director) of (Residential address): 4000 Steeles Avenue West, Suite #221, Woodbridge, Ontario, Canada L4L 4VS;
• Charles Crowninshield (Treasurer and Director) of (Residential address):
400 Main Street, Boxford, MA 01921, USA; and:
• John (a.k.a. Giovanni) Ferro (Director) of (Residential address):
16 Madill Street, Toronto, Ontario, Canada M9P 2PS.
BANKING ARRANGEMENTS FOR MARVELOUS INVESTMENTS LIMITED
Banking arrangements for Marvelous Investments Limited were encapsulated in a document, a genuine copy of which is held by this service, which reads in toto as follows:
CORPORATION ACCOUNT: (SECURITY CASH ACCOUNTS ONLY: FULL AUTHORITY)
BANK OF AMERICA
231 NORTH LaSALLE STREET
CHICAGO, ILLINOIS, USA 60697-0000
THE UNDERSIGNED CORPORATION, BY LEE E. WANTA, ITS PRESIDENT, PURSUANT TO THE RESOLUTIONS, A COPY OF WHICH AUTHORIZES YOU TO OPEN AN ACCOUNT IN THE NAME OF THE SAID CORPORATION, AND THE UNDERSIGNED REPRESENTS [sic] THAT NO ONE OTHER THAN THE UNDERSIGNED HAS ANY INTEREST IN SUCH ACCOUNT.
THIS AUTHORIZATION SHALL CONTINUE IN FORCE UNTIL REVOKED BY THE UNDERSIGNED CORPORATION BY A WRITTEN NOTICE, ADDRESSED TO YOU AND DELIVERED AT YOUR OFFICE IN CHICAGO, ILLINOIS, USA.
BY THIS DOCUMENT, WE, MARVELOUS INVESTMENTS LIMITED, AUTHORIZES [sic] THE BELOW-MENTIONED PERSON TO OPEN SAID BANK OF AMERICA-CHICAGO ACCOUNT IN FAVOUR OF SAID CORPORATION:
MR THOMAS G. HENEGHAN
2405 FREY AVENUE
VENICE, CALIFORNIA, USA
TELEFON [sic]: 310 305 9606
CALIFORNIA DRIVER’S LICENSE – C-204-6914, EXP: 3.17.04
YOURS VERY TRULY
MARVELOUS INVESTMENTS LIMITED
BY: LEE E. WANTA, PRESIDENT.
TONY BLIAR BEING EXPOSED AND SET UP AS PREDICTED
The ‘takedown’ of Anthony Charles Linton Blair, predicted by this service, has accelerated since we last reported. This is highly significant generally, because it represents a further dimension of the unravelling of the operations of the Octopus, revealing that ‘the worm is indeed turning’ and that a blinding spotlight is being shone into the Bush-Abwehr-Kissinger-CIA pitch Blackness, which is an indication that we are indeed observing further signals of an historic discontinuity.
Some of the language used in recent days to describe the enormity of the crimes committed by Bliar (proxy for the Bush-CIA-DVD Hell Machine) has been much sharper than we are used to in the laid-back United Kingdom (although those using such language should have done so much earlier).
• On 30th November, George Pitcher, a columnist with The Daily Telegraph, wrote:
‘Tony Blair, with a truly toxic mixture of sanctimoniousness and wealth-enhancing chutzpah, has always maintained that his Iraq invasion was a just war. He has held firm to this shibboleth with trembling lip and quasi-religious conviction. But the letter to him from Lord Goldsmith, which emerged at the weekend, changes everything’. [Goldsmith was the Attorney General at the time].
‘Dated July 29, 2002, a full eight months before Blair launched his grotesque Middle Eastern misadventure, the then Attorney General wrote to tell him that such an invasion would be illegal under international law. It is in the bundle of documents at the Chilcot Inquiry, to be addressed when the former Prime Minister, abortive President of Europe and putative Middle East peace envoy, gives evidence to it in the New Year’.
Blair’s line has always been that he was “guided” by the Attorney General. It turns out that this guidance was unequivocal and in writing from the outset, and was not what he wanted to hear.
Blair had to despatch a couple of his heavies, in the shape of Lord Falconer and Baroness Morgan, verbally to duff up Lord Goldsmith and to bully him into toeing the line, so that Blair could honour his private pledge to follow George W. Bush into the valley of death’.
[Recall our repeated reminder that the ONLY product these people generate and have on offer is, precisely: DEATH (spiritual as well as physical)]…. ‘Blair’s actions were not only illegal, as now conclusively demonstrated by Lord Goldsmith’s evidence: they were also immoral’.
THREE SUSPICIOUS BRITISH HORIZONTALISATIONS
And what about the sudden horizontalisations of Dr David Kelly and the former Blair Foreign Secretary, Robin Cook, who died way before his time from a ‘sudden’ heart attack, like Blair’s predecessor as leader of the Labour Party, John Smith?
This ‘dirty linen’ is inserted here just to remind ‘the interested’ that these horizontalisations won’t be brushed under the British Government’s filthy dirty carpet, should by any chance it have been assumed that this has already been satisfactorily accomplished.
A RESPECTED BRITISH GENERAL FINGERS BLAIR, TOO
Nor is the aforementioned newspaper columnist alone in pointing fingers at Blair. On the contrary, Mr Pitcher’s pointing finger has been joined by the right forefinger belonging to the distinguished General Sir Michael Rose, who has bluntly called for Tony Bliar to be prosecuted for war crimes following the illegal and immoral invasion of Iraq.
Writing in ‘The Mail on Sunday’ on 30th November 2009, Sir Michael stated that the Chilcot Inquiry on the origins of the war should be the first step in a judicial process that brings those responsible for the disasters of the Iraq War before the Courts, ‘and could, as I shall explain, ultimately result in Tony Blair being indicted for war crimes’.
Sir Michael then reviewed the past week’s evidence to the Chilcot Inquiry which proved that Mr Blair lied blatantly to the House of Commons and the public about Iraq’s alleged weapons of mass destruction (WMD). The article reconfirmed that the evidence spelled out how Mr Blair ‘AND OTHER SENIOR GOVERNMENT FIGURES’ [our emphasis – Ed.] had been told that there were ‘no WMDs, no missiles, no atom bombs and that there was no legal basis to pursue a war against Iraq’.
‘Despite these compelling accounts of what happened, the truth is that we already know the main lessons of Iraq: Britain was taken unprepared into war on false grounds, and the inevitable result was the destruction of Iraq, enormous loss of life’ [THE DEATH PRODUCT] ‘and continuing political turmoil in the Middle East. Worse, the Iraq War has radicalised Muslim opinion against the West throughout the world, even spawning terrorism on the streets of London’, Sir Michael wrote.
The General elaborated that Britain has a tradition of holding its leaders to account when they lead the country into a disaster. He pointed out that when the British Army was defeated at Yorktown in 1781 at the end of the American War of Independence, the entire British Cabinet resigned. When Winston Churchill, who, as First Sea Lord, had been the main architect of the Empire’s Gallipoli campaign against the Turks, saw the scale of the disaster that occurred in 1915, he immediately volunteered for the trenches in France where it is believed he hoped either to find death or to be able to redeem his honour.
[The Editor’s father somehow survived the entire duration of the First World War in the trenches].
By contrast, General Sir Michael Rose added, Blair swans around the world today making millions from business contacts and lectures. And to make matters still worse, a large proportion of these earnings are only possible because of his US and Middle Western contacts arising out of his unconditional support for the Bush War and Death Machine.
THE POST-WAR RECONSTRUCTION SHAMBLES IN IRAQ
On 1st December, the Chilcot Inquiry heard from Sir Peter Ricketts, former Director-General of the political section of the Foreign Office, who said that attempts by British officials to persuade the Americans to delay the invasion of Iraq so that post-invasion reconstruction preparations could be properly finalised instead of being rushed, met with the usual arrogant brush-off from Washington – accompanied by boasts that the coalition forces would be welcomed as ‘liberators’.
This represented a piece of naïve US military ignorance, which failed to take account of the obvious psychology that ANY invading power will be loathed by the population being invaded, IRRESPECTIVE of the malodorous characteristics of the national government under which the population has been languishing.
Sir Peter told the Inquiry that the so-called Office of Reconstruction and Humanitarian Assistance (ORHA) set up by the Pentagon had been very poorly prepared with ‘very little time and very little expertise’ and ‘very few people’ for this ‘huge undertaking’.
He added that ORHA was ‘a shambles’. Edward Chaplin, the former head of the Middle East section of the Foreign Office, told the Inquiry that post-war planning had been ‘dire’, hampered by a belief in the United States that there would be ‘dancing in the streets’ when the troops entered Baghdad. He added that there was ‘a touching belief [in Washington] that we shouldn’t worry so much about the aftermath, because it was all going to be sweetness and light’.
Thus, not only has the US Intelligence Power systematically provoked the universal corruption of the banking sector with its open-ended Fraudulent Finance operations designed to perpetuate and finance both its own usurpation of supreme power and hegemony in the United States itself, as well as to fund its rampaging ‘Black Operations’ around the world; but its chronically brainwashed and penetrated co-conspiring, rampant partner in crime, the US Military Power, cannot even be relied upon to conduct an invasion and occupation in a disciplined manner without ‘messing up’ – thanks to its insufferable, coruscating arrogance and self-belief. Wherever the American military goes, mayhem follows, in conformity with the norm that its sole product is DEATH.
THE CHAOS IS DELIBERATE: IT FACILITATES ‘BUSINESS AS USUAL’
HOWEVER, what needs to be understood is that this chaos is to an extent DELIBERATE. As in the case of The New Underworld Order operation known as the European Commission, the accounts of which have not been approved by the EU’s Court of Auditors for the past 14 years, IRREGULARITY PROVIDES ADDED SCOPE FOR CORRUPTION.
After all, the chaos which followed the US-led invasion provided cover not only for the ransacking of the Central Bank of Iraq (and the subsequent mass murder cover-up of the 100++ operatives involved in that operation), but also for the Bush-controlled ‘misdirection’ of those preprinted banknotes destined for Iraq that wound up in the collaborating custody of the Central Bank of Jordan, whence the huge consignment could subsequently be stolen ‘with impunity’.
Contrived chaos, then, is good for ‘corrupt business as usual’. Hence the protestations of the British officials at the Chilcot Inquiry betray their profound and incompetent failure to understand how the corrupted and criminalised US Intelligence Power thinks and works.
FACTORS IN THE BACKGROUND OF THE CHILCOT INQUIRY
Concerning the Chilcot Inquiry’s deliberations, we would like to point out additionally, as follows:
(1): In the first of these analyses [dated 12th October 2005: see Archive], it was reported that Blair was at the receiving end of 75 million Euros as a payola pay-off from a DVD Swiss bank slush fund for ‘facilitating’ the European Union’s Collective Treaty du jour – equivalent to about $100 million, which was placed first with the Central Bank of Belize (and showed up in Belize’s official foreign exchange reserves in March 2006). It is believed that the Belizean authorities seized these illicit funds. None of this has ever been denied: and it’s all been ‘out there’ for more than four years.
(2): It was reported at the time of the Iraq War that $134 million had been paid into an Abu Dhabi bank account with Blair as ultimate beneficiary, by the Bush-Baker-Cheney Crime Syndicate as a payoff for dragooning Britain’s Armed Forces into the illegal Iraq War on a false pretext, and lying about the background to the House of Commons.
(3): As can be seen from the above, British officials knew perfectly well that the Iraqi régime did not possess Weapons of Mass Destruction. But what is being covered up here, as we noted earlier, is that the WMD were removed from Iraq under its version of the Romanian-Soviet ‘Sarindar’ WMD dismantling programme, exposed retrospectively by the former head of Romanian intelligence, Ion Mihail Pacepa in the third quarter of 2003 [in The New York Times], and promulgated inter alia via our newsletter Arab-Asian Affairs. The Iraqi WMD were removed on board two Soviet vessels that sailed from the Iraqi port of Umm Qasr in February 2003. [Note: Further details on how the Soviets themselves actually dismantled the Iraqi WMD and transported it away in a fleet of trucks, has been made available to us and will be elaborated upon as soon as time permits].
• The Editor was badgered by a Pentagon-linked operative named Demchuk (‘The Visitor’) to reveal what he knew about all this, even though the Pentagon must have known perfectly well that Ion Pacepa’s revelations (published retrospectively in September 2003) were accurate. Demchuk’s concern, we believe, was not to establish the facts of the Soviet involvement, but rather to make sure that the Editor was not about to blow the reality that the Soviets had removed the WMD, which would have destroyed the US pretence, echoed by Mr Blair, that the Iraqi régime possessed WMD, used as the pretext for the invasion – which was really all about completing the ‘switch’ component of the Bush Crime Family’s ‘bait and switch’ operation against Saddam Hussein, Bush Sr.’s former trading partner, so that the Central Bank of Iraq could be seized, its assets, gold and currency stolen, and access gained to the Rafidain Bank sub-accounts in London, thought to have held a colossal volume of funny money based on hypothecated trading operations.
• So far, there has been no hint in the Chilcot Inquiry hearings that any of the British officials concerned knew about the Iraqi ‘Sarindar programme’. This either means that these mandarins were and are incompetent, or else that they are being typically disingenuous and duplicitous, or rather ‘economical with the truth’ – or all of the above. It was known as early as 1991 that the British Foreign and Commonwealth Office had thrown away its Library on Communism and the Soviets, as we ourselves bought some of their discarded volumes, which clearly indicated that the Foreign Office truly believed that the Soviet Union and Communism were 'dead'. That may explain why the words Russian or Soviet have not so far been noted at the Chilcot Inquiry.
• Finally, like all senior UK military, General Sir Michael Rose himself appears not to understand that military power in The New Underworld Order has been collectivised. In other words, Britain’s military power has been and continues to be hijacked and diverted in pursuit of an internationalist agenda, the surreptitious nature and purposes of which CANNOT BE REVEALED to the general public, which pays for these abuses through its high taxes.
THE BRITISH PEOPLE ‘CANNOT BE TOLD’ THAT THE MILITARY
HAS BEEN HIJACKED TO SERVE CORRUPT INTERNATIONALIST AGENDAS
The underlying point here is that in order for Britain to continue to wield military power, it is ‘necessary’ for the population to remain under the illusion that our military exists to defend the British people and its assets and interests. That is not the case. Britain’s military power has been collectivised and is therefore being exploited for purposes that are alien to the interests and priorities of the British people.
• And it gets worse: because not only has Britain’s military power been hijacked in pursuit of an internationalist agenda, but that agenda has itself been hijacked a second time round, to conform with the priorities of the (now cornered) criminalist cadres within the manipulating elements of the controlling US Intelligence and Military Powers – namely, in the case of Iraq, to seize the assets of the Central Bank of Iraq, gain access to the Rafidain Bank sub-accounts, and seize the Iraqi energy assets so as to meet the imperative of never having to fall back on reliance upon US domestic oil production. As previously explained, domestic price-fixing is illegal: hence the external dual cartel structure – with OPEC covering for the price-rigging perpetrated by the energy corporations.
CORRUPT U.S. INTELLIGENCE POWER WORSHIPS MAMMON
The US Intelligence Power is fixated upon illicit financial operations to the virtual exclusion of everything else, except murder and the maintenance of an intense barrage of disinformation, diversionary New Age claptrap, lies and fabrications perpetrated by all means at its disposal – via the ‘mainstream’ media (Operation Mockingbird), and nowadays through its immense sponsorship and control of a vast array of websites which specialise in maximising the potential for the ongoing intensification of the fog of confusion – the objective being to mask, and divert attention from, the criminality of the US Intelligence and Military Powers, and to procure that the crimes and Ponzi frauds perpetrated by their operatives never see the light of day.
That colossal agitation and propaganda offensive is now failing, which explains why there is much concern at our routine posting, at the top of these reports, of the text of the Misprision of Felony Statute. This places EVERY AMERICAN with knowledge of criminal activity ON THE SPOT, making many (we know for a fact) feel decidedly uncomfortable.
At an earlier stage of this research, we identified operatives located in remote parts of the United States who had been equipped with Haliburton cases containing the equipment necessary for the operatives to be able to access the military ‘grey screen’ for illicit financial trading and monitoring purposes. One source spoke of CIA having had special satellite equipment erected on the family home which was ‘never understood’.
ORIGINS OF THE U.S. INTELLIGENCE POWER’S MAMMON-WORSHIP
The US Intelligence Power’s obsession with illicit and clandestine financial operations can be traced historically to the Black Eagle Trust or Fund and the Philippine Golden Lily sequence – the obsessive ransacking by US ‘freelance’ teams of ‘former’ operatives, impeded by characters such as General Singlaub (who spent millions digging for stored gold in the Philippines in all the wrong places), of the hoards of gold ingots amassed and stolen by the Japanese during the Second World War, and buried in ‘holes’ primarily in The Philippines under the (incorrectly alleged) direction of General Tomoyuki Yamashita. This gold included ‘royal gold’ exported from the United Kingdom to Asia when the British assumed that Hitler might overrun the whole of Europe, including the British Isles. A sizeable number of these ‘gold holes’ are located within the territory of the US-leased Clark Air Base, explaining the real reason for US plotting to retain this base.
Among the cast of characters following Henry L. Stimson and Bill Donovan who shaped the CIA’s obsessive orientation towards Mammon from the outset were William Casey, whose legacy at the US Export Import Bank has ensured that this institution has remained heavily involved in dubious intelligence community financial operations ever since; Allen Dulles (ditto: Bank of New York, now BoNY Mellon); General Olmsted (International Bank of Washington; Financial General Bancshares and the criminal money-laundering Bank of Credit and Commerce International (BCCI) CIA bank); Paul Helliwell and William Colby (Castle Bank, HouseHold Bank, Mercantile Bank; and the Nugan Hand International Bank, used for laundering drugs from the ‘Golden Triangle’ founded in Sydney in 1973 by the Australian lawyer Frank Nugan (thought to have been a Mafia operative) and the former US Green Beret Michael Jon Hand, who had operated as an assassin, controlling multiple assassination squads in Northern Laos under Operation Phoenix); General Earl Cocke (Black Eagle Trust, or Fund; Driscoll Trust; Synergy Trust; Pilgrim Investments (George H. W. Bush); Martwell Investments (Marc Rich, a.k.a. the long-range DVD operative Hans Brand); and Project Hammer – the operation to bring down the Soviet Union so that the Soviet oil and gas resources could be brought under the control of US and Western investors); Henry Morgan and Spencer Morgan (Morgan Stanley, JP Morgan Chase: Chase Manhattan); and George B. Moore (First National City Bank: Citibank, which wound up with over 116,000 tonnes of the stolen Yamashita/Marcos gold).
SOME FAMILIAR NAMES IN THE WITCHES' CAULDRON
Any investigation of these linkages will pull up names such as Adnan Kashoggi, J. Keswick, Henry Keswick (of the British connection: Jardine Mathieson); Richard Armitage, the notorious, foul-mouthed drug-trafficking expert; William Colby; Lucky Luciano, Carlos Marcello, Santos Trafficante, Meyer Lansky, heads of US Mafia families, hired for ‘special tasks’ and ‘delivery protection’ by the CIA; David Kimche (the Head of the Israeli Foreign Office, whose British brother Jon Kimche sold the newsletter Arab-Asian Affairs to the Editor of this service many years ago, and then proceeded deliberately thereafter to furnish us with detailed information about the SOVIET involvement in Iraq which completely blotted out any hint of nefarious US intelligence operations there); the CIA's professional assassin, Ted Shackley; Robert Gates, the former Director of Central Intelligence, now in charge at the Pentagon; Oliver North, of Iran-Contra notoriety; Richard Secord; General Singlaub; Bin Mahfouz [see In Memoriam and Horizontalisation News]; Richard B. Cheney; Leo or Lee Wanta; Donald Rumsfeld; Colin Powell; Paul Wolfowitz; Miss Condoleeza Rice (whose codename is: Velvet Mushroom); and of course George Herbert Walker Bush and Dr Henry (‘Heinz’) Kissinger.
CHANCELLOR MERKEL: ‘WE ARE IN A VERY CRITICAL SITUATION’
Given the evils inflicted on the world as a consequence of the traitorous clandestine activities of the US Intelligence Power (and its Mossad, DVD and MI-6 associates in any Metabridge context), a moment of schadenfreude is appropriate as we contemplate the unexpected statement, reported on 1st December 2009, by Bush Sr.’s duplicitous agent and STASI operative, Frau Angela Merkel, the former Secretary of the Agitation and Propaganda Department of the Kommunist Yugend at Karl-Marx University in East Berlin, now functioning as the German Chancellor:
‘We are in a very critical situation. We are going to discuss with leaders of the financial institutions what can be done to head off a credit crunch’.
What ON EARTH can Frau(d) Merkel have meant by THAT?
The German Government is reported to be rushing out a new emergency package of measures for consideration by the Bundestag, to buttress ‘ailing banks’ and to prevent a ‘second wave’ of the debt crisis suffocating a large swathe of the grossly over-extended German manufacturing sector. The Bundesbank recently revealed that German banks are contemplating some 90 billion Euros’ worth of probable write-downs over the next year. The package of measures reportedly includes a scheme under which 10 billion Euros would be allocated for the purchase of ‘toxic’ (i.e. fraudulent) securities from the banks, at a colossal discount.
At the end of November, a survey by the IFO institute of Munich revealed that lending conditions in the German economy tightened sharply in October, with 53% of German manufacturing firms having encountered problems in obtaining credit. The President of IFO, Hans-Werner Sinn, commented that ‘the financing situation of firms remains critical and poses a real risk to economic recovery’. Volcker Trier, the Chief Economist for the German Chamber of Industry and Commerce (DIHK), is reported to have added that the Middelstand (middle-ranking) family firms are in difficulties: ‘The real test has yet to come: the drastic decline in sales has not yet shown up in balance sheets’.
COLOSSAL CONTRACTION OF EXPORTS WORLDWIDE
As we have recently pointed out, immense declines in exports (and therefore of imports) have been reported from all over the world. For instance, the volume of exports by Italy over the 12 months to July 2009 collapsed by 68.7%.
Data for selected countries: Australia (August 2009), – 30.2%; Austria, – 37.0%; Belgium, – 28.5%; Canada, – 40.7%; Czech Republic, – 30.8%; Denmark, – 24.8%; Finland, – 44.8%; France, – 26.0%; Germany, – 28.3%; Greece, – 28.1%; Hungary, – 26.1%; Japan, – 26.8%; South Korea, – 21.0%;
Mexico, – 26.3%; Netherlands, – 28.3%; New Zealand, – 26.4%; Norway, – 34.5%; Poland, – 32.9%;
Portugal, – 29.3%; Slovak Republic, – 32.7%; Spain, – 16.6%; Sweden, – 24.9%; Turkey, – 29.3%;
United Kingdom, – 33.5%; and United States, – 26.0%.
Within the area of developed countries covered by the OECD membership, the average year-on-year contraction of export volume to June 2009 was 29.9%, with the contraction of exports by the major seven OECD economies averaging 33.2%; and within the European Union Collective as a whole, the average decline was 29.0%.
GERMAN BANKS’ ‘TOXIC ASSETS’ TIME-BOMB PRIMED
But WHAT prompted the normally cool Frau Merkel to allow such panicky comments of hers to be widely reported? Not, surely, her concern about the problems facing German manufacturing firms (which have displaced, for instance, much of the British manufacturing sector, thanks to ‘free trade’ within the EU’s ‘internal market’, in accordance with the original aggressive pan-German blueprint set out in the Nazi compendium Europäische Wirtschaftsgemeinshaft of 1942).
No. There’s a much more immediate, and ghastly, nightmare that has been keeping this STASI operative awake at night on her estate east of Berlin. It is this:
• Deutsche Bank, Dresdner Bank, and reportedly also Commerzbank, are stuffed to the gills with worthless ‘toxic’ trading junk 'assets' which threaten to destroy the big German banks as the US-attempted clandestine operation to reignite the derivatives trading bonanza fails, so that the counterparty ‘assets’ held by the German banks are being exposed as worthless, given that off-balance sheet ‘assets’ cannot legally these days be brought onto the balance sheet.
• Viewed conventionally by analysts who have largely ignored the criminal finance dimension, there are ‘fears’ that a cascade of corporate downgrades by rating agencies will compel banks to place more equity capital aside, thereby compounding the existing contraction of credit, at a time when lending to the private sector in Germany contracted by 0.8% over the 12 months to October 2009, while key money supply measures have also been contracting when adjusted for inflation.
• But viewed ‘unconventionally’ and therefore accurately, so as to take account of the ‘cover-up’ dimension associated with the exposure of Fraudulent Finance, the German Chancellor’s quite uncharacteristically anguished public observation indicates loud and clear that the game is almost up for the criminal financial enterprises in Germany that have been corrupted by the Bush-DVD Criminal Finance carousel: as we shall doubtless observe in the weeks and months ahead.
It will be recalled that we recently indicated earlier that a huge overhang of Fraudulent Finance positions mature during December 2009.
It is unprecedented for the usually buttoned-up Chancellor Merkel to let her guard down with such a public indication of how worried she is. And with good reason. She forgot to bring a long spoon when supping with Adolf Shickelbusch.
THE DUBAI DEBACLE AND THE DODGY STATE OF BRITISH FINANCES
As has been well understood internationally, of course, the ownership of 28% of the London Stock Exchange by interests in beleaguered Dubai has obvious implications for the City of London.
The crass stupidity of this example of ‘globalisation’ is now staring the LSE in the face. In the final week of October, Dubai World requested a ‘standstill’ debt agreement from its creditors which shocked investors who had wrongly assumed that the Central Bank of the United Arab Emirates would stand behind Dubai World’s extrenal debt. Payments on this debt fall due within the next two weeks. Shortly thereafter the Central Bank announced that it would be providing liquidity support on favourable terms for local and foreign banks.
But the Chief Economist with Banque Saudi Fransi in Riyadh, John Sfakianakis, warned on 1st December: ‘The [decision by the UAE Central Bank] is a step in the right direction, but a bare minimum. This only deals with the domestic banking system. They have not yet made any announcement dealing with the debt of Dubai’.
That may reflect the possibility that a significant number of accounts in the United Arab Emirates may have been frozen by order of the World Court, according to an unconfirmed report received by this service – as part of the enforcement procedures surrounding the stealing and diversion of sovereign assets that we have repeatedly referenced in earlier reports. In this connection there was recently a curiously brief UK press mention of the fact that a senior Ruler from the United Arab Emirates was in the presence of Her Majesty The Queen in London, even as the Dubai crisis was exploding in the faces of the criminal finance fraternity in recent days.
‘BRITAIN MAY LOSE ITS AAA CREDIT RATING’
Meanwhile, the European investment team at Morgan Stanley, of all sources, published a report featured on 1st December entitled ‘Tougher Times in 2010’ which included the following assertions:
‘Growing fears over a hung parliament [in Britain, which goes to the polls in 2010] would likely weigh on both the [British] currency and gilt yields, as it would represent something of a leap into the unknown, and would increase the probability that some of the rating agencies [may] remove the United Kingdom’s AAA status’ as a sovereign borrower.
‘In an extreme situation, a fiscal crisis could lead to some domestic capital flight, severe pound weakness and a sell-off in UK Government bonds. The Bank of England may feel forced to hike [interest] rates to shore up confidence in monetary policy and stabilise the currency, threatening the fragile economic recovery’.
However in Britain, there has been NO ECONOMIC RECOVERY, with the economy shrinking in real terms by an officially estimate 0.3% in the third quarter of 2009 (an annualised rate of 1.2%).
The OECD has predicted that the British public sector deficit will reach 13.3% of Gross Domestic Product in 2010, in real terms. Morgan Stanley, anticipates a 10% further reduction in sterling’s trade-weighted external value, completing the most extreme slide in the pound’s external value since the industrial revolution. The decline would exceed the 30% collapse that occurred after Britain was driven off the gold standard in 1931.
The irony of Morgan Stanley, of all institutions, promulgating such realities requires no elaboration.
HAVE YOU RATNERED YOURSELF LATELY*?
Given the blockages perpetrated by the RATS, and the report about a code-carrying banker or trustee having been shot in the foot, and on a closing and lighter note, it may be recalled that a British jeweller, Gerald RATner, with an engaging sense of humour, triggered the near-destruction of his own successful business in 1991 when he jokingly told a meeting of shareholders that a sherry decanter set that his firm was selling for £4.95, was a piece of ‘crap’.
After seven years of despondency – during which, he reports, the highlight of his day was watching the TV show ‘Countdown’ in bed in the afternoons – Mr Ratner picked himself up, started again, and now runs Britain’s biggest Internet-based jewellery business.
In an article in The Daily Telegraph on 2nd December 2009, Mr Ratner described the odd sensation of having had his name hijacked and incorporated into the English language.
Specifically, the verb ‘to ratner oneself’ has come to mean ‘to shoot oneself in the foot’; while ‘to have been ratnered’ means ‘to have been provoked into shooting oneself in the foot’. As a noun, the word ‘to do a ratner’ has the same connotation. (Proper incorporation into the vocabulary presupposes dropping the capital R for Ratner).
Mr Ratner pointed out ruefully that ‘in the past week alone, Boots [a UK pharmaceutical store] had acknowledged that it ‘did a Ratner’ by admitting that so-called herbal remedies didn’t necessarily work, although it was happy to sell them; while British Telecom was said to have ‘Ratnered’ itself when it hooked its Chairman up to Broadband in a small village where no-one else has Broadband access. And now John Bercow, the Speaker of the House of Commons, has finally admitted that the “reputational carnage” inflicted’ [on themselves by Members of Parliament due to their greed and insensitivity over their so-called ‘expenses’, which has revolted the entire nation] had ‘meant that Parliament must urgently restore an image that “it has managed to Ratner”’.
The commendable Gerald Ratner realises that – notwithstanding his remarkable achievement in picking himself up off the floor from the slough of despondency and depression lasting seven years, and surfacing with another high-flying jewellery business – he won’t be remembered for his business achievements at all.
No Siree. He’ll be famous for having contributed a potently descriptive verb and noun to enrich the English language. For that, and for his own successful deratnerisation, he will be remembered for ever and ever. Amen.
PS. Gerald Ratner says he has set up a ‘Google alert’ which sends him an email every time his name crops up on the Internet. No doubt, therefore, he’s reading this column ‘as we speak’.
APPENDIX: A NEW WORLD BANK REPORT REVIEWS THE IMPOVERISHMENT ARISING FROM THE CRISIS AROUND THE WORLD: A CRISIS THAT HAS BEEN PROLONGED BY U.S. OBSTINACY.
THE REPORT REFERS TO QUOTE 'THE RAPIDLY DETERIORATING ECONOMIC ENVIRONMENT'.
Readers and subscribers will be well aware that we know, and have in the past, referenced the participation of the World Bank in certain Fraudulent Finance operations. However the quality and professionalism of World Bank and IMF staff is, generally speaking, second to none: so that a clear distinction must be drawn between abuse of the international institution's inner workings (via its tax-exempt bank account privileges, for instance), and the professional work of the staffers.
The World Bank has just issued a report, summarised below, which provides new information on the impact of this crisis, which has been prolonged by the criminal behaviour of US office-holders and operatives, on parts of the Rest of the World (the phrase we use to distinguish everywhere else from the United States itself). We append a summary of the new report:
The global financial crisis is having a devastating impact on families in emerging Europe and Central Asia, with the risk of the region giving back a fifth of the poverty reduction gains of the past decade, according to a new World Bank report. By 2010, there could be over 10 million more poor people in the region, and close to an additional 25 million more who were almost middle class but now just above the poverty line (relative to pre-crisis projections) with the potential of losing their homes, jobs, and basic services.
The new report, 'The Crisis Hits Home – Stress-Testing Households in Europe and Central Asia', takes a unique look at the impacts of the global financial crisis at the household level in this region. According to the report, families are being hit by credit market shocks, the increasing prices of goods and services, and rising unemployment.
“The global financial crisis risks reversing the substantial gains and improvements in living standards achieved by the Europe and Central Asia region over the last few years”, said Luca Barbone, Director for Poverty Reduction and Economic Management in the World Bank’s Europe and Central Asia Region. “One of the tragic impacts of the crisis has been that the middle income countries that had turned the corner, are the ones hardest hit. Across countries in the region, unemployment levels have risen while economic activities have collapsed. Poverty will rise. Families are being stretched to the limit”.
• Editor's inserted Note:
See data for the collapse of exports, in the narrative above. See also the report's reference below to quote 'THE RAPIDLY DETERIORATING ECONOMIC ENVIRONMENT' unquote.
CREDIT MARKET SHOCKS
The report says that stress tests recently conducted by the World Bank on household loans show that ongoing macroeconomic shocks to interest rates, exchange rates, and household income may increase the numbers of families that are unable to pay back their debt.
For example, up to 20 percent more families with mortgages and other loans in Lithuania and Hungary could be at risk of defaulting on their loans.
PRICE SHOCKS IN THE PIPELINE
The food and fuel crisis may not be over. International commodity price levels have not returned to pre-2007 levels. In addition, falling currencies in some countries are now generating a new round of price increases. Because food represents a very large share of the poor’s total consumption – in some of the low-income countries of Europe and Central Asia, the food share of consumption among the poor is 70 to 80 percent – the poorest consumers will again be vulnerable.
In addition, in a number of countries, such as Belarus, Moldova, and Ukraine, the utility reform program remains largely incomplete. As a result, a number of countries will have to adjust their energy tariffs to cost-recovery levels in the coming years.
EMPLOYMENT AND INCOME SHOCKS
Over the recovery period following the 1998 Russian crisis through 2006, more than 50 million people moved out of poverty in the region. However, the poverty impact of this crisis will be enormous. The RAPIDLY DETERIORATING GLOBAL ECONOMIC ENVIRONMENT [sic] is eroding the region’s substantial gains and, given the increased poverty projections, is threatening the welfare of a total of about 160 million people – close to 40 million people who are poor and approximately 120 million people who are just above the poverty line.
It is the middle-income Commonwealth of Independent (CIS) countries that have seen the largest and most significant downward revisions to their Gross Domestic Product growth projections.
COPING WITH THE CRISIS
According to the report, lessons from the region’s own experiences with previous crises suggest that temporary economic shocks have a lasting impact on human development, as families cut back their education and health investments in response to a banking or exchange rate crisis.
Compared to past crises, the scope for households in Europe and Central Asia to fall back on their traditional coping strategies – from secondary employment and money transfers from friends and family to working abroad – is much more limited. [SUMMARY END]