Thursday 17 April 2008 02:16

By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York: see this website for subscription information.

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NEW YORK: The United States was dragged kicking and screaming like a spoilt child in overdue need of a diaper change into the Basel-II compliance mode with effect from 12.01 am on Monday 14th April, as expected. US institutions now have 100 days to reorder their affairs to comply in all respects with the Basel-II requirements, as agreed within the international financial community. This represents a massive defeat for the two-headed Luciferian Government of the United States led by the criminal operatives President George W. Bush Jr. and his ‘Himmler’ character, Vice President Richard B. Cheney, and their cynical criminalist Clinton ‘Box Gang’ co-conspirators.

The development also slaps down the arrogance of the criminal financial enterprises, both in the United States and elsewhere (but it has to be said, mainly in the United States) which have been playing fast and loose with the Rule of Law, stealing other people’s money and generally behaving as though they were above the law and could do as they please ad infinitum.

Observe the drawn, unsmiling features of the current Governor of the Bank of England to gauge just how painful ‘going straight’ is turning out to be, and note how very tactfully the Editor selects a British institution here in order to make this point.

Funding is proceeding from Hong Kong via Wells Fargo to Citibank, Bank of New York Mellon, Bank of America and Wachovia. Expect a sudden wave of ‘the worst is over for the big banks’ stories in the ‘mainstream’ media, to be followed down the pike with egregious ‘Bush Miracle’ updates in the more sycophantic elements of the Fourth Estate, praising the steady nerves, brilliant tactics and unbendable resolve of ‘Our Great Leader’ with all residual expletives expunged from the record.

Arrangements for payment to the ‘country representatives’ are believed to have been completed although the precise details, naturally, are not known with precision in the public domain. Funds are reported to be being taken inter alia in the format of US Treasury instruments. If this is so, we suspect that the maturities of these instruments will be/are at least 20 years, and probably 30 years.

Ironically, US Treasury securities are actually ‘a better deal’ than cash in the bank, which can be sequestrated if the bank in question goes under (whereas of course funds in a securities account do not form part of the assets of the broker/dealer in the United States, as previously analysed). The United States is completely bust and the US Treasury is the most powerful institution in the United States: yet US Treasury securities represent the most valuable asset obtainable!

Information about ‘the packages’ and the Omega payments etc. currently in circulation may lack an appreciation of how they may fit into the broader overall picture as it has evolved.

Concerning the grounding of American Airlines planes last week, note the important fact that the HQ of AA is Dallas, Texas. The Editor believes that the planes were grounded in the context of suspicions that one or more ‘devices’ may have been planted on AA aircraft. In this context we further believe that the ‘Iran noise’ was intended to have been the ‘cover’ for a grotesque ‘inside job’ atrocity that has been aborted. The Editor does not expect the attack on Iran to proceed.

All of which should be reviewed in the context of the settlements that are proceeding.

The reference on another website to the Wanta tax being paid is believed to refer to the fact that the tax amount is reserved in a tax account, no more and no less. The relevant funds in any case are Treasury Direct, so such allusions are of little significance in the context of the much broader issues, which can be summarised as follows:

• The global settlements ARE IN PROCESS, following not least the conference call among bankers which started last Thursday and continued right through the weekend. In our previous report, we suggested the need for such a conference call, unaware that precisely such a conference call was actually taking place. As indicated above, it is understood that the ‘countries’ are being paid.

• The wayward, decadent, duplicitous financial behaviour of the United States has been exposed and is now hostage to the furious international community. Scope for further illegallities has been severely truncated, although in the Editor’s opinion nothing short of a sinking fund into which the proceeds of on-the-books high-yield trading operations are paid, can possibly address the colossal magnitude of the underlying crisis associated with the derivatives overhang, which may aggregate something close to $750 trillion, according to the estimates of our best sources.

• There is a sense, evident both in the United States and internationally, that there is no way that the key perpetrators of these financial scams can be allowed to get away with their crimes. Some days ago a CIA operative walked into our London office without an appointment. The Editor asked him inter alia whether ‘they’re going to get away with it’. He hesitated for quite a long time before answering the question, and then diffidently suggested that ‘they are’. However this view diverges from the best information available to this Editor, which holds that the levels of official anger now exceed anything monitored previously and that there is essentially a collective DEMAND that these crooks are brought to justice, whatever format that may take.

• At the recently concluded Spring Meeting of the International Monetary Fund/World Bank Group, Dominique Strauss-Kahn, the Fund’s new Managing Director, made a special point of stressing to the international press, which included the Editor of this service, that the world now faces a very rapid increase in rates of inflation. What he refrained from explaining was why this is a certainty.

It is a certainty because (a) the refinancing operations which should have been kick-started nearly two years ago were frustrated because Bush Sr. and Jr., Paulson, Cheney and the other inveterate highest-level crooks chose to perpetuate their secret financial thievery and scamming operations, as exposed by this service in the series of analyses that concluded with our filing dated the 18th March 2008; and (b) the scamming and endless off-balance sheet hypothecation operations went on far longer than could ever be consistent with medium-term global financial stability.

Old-style, corrupt off-balance sheet operations cannot currently be undertaken.

The exposures of open-ended official financial criminality have been a key factor in bringing this scandalous state of affairs, and its enforced resolution under duress, to a head; but the downside is that inflationary pressures that COULD have been avoided will now erupt on a far larger scale than would otherwise have been the case. Payment in the format of US Treasury securities, to the extent that this is implemented, will obviously have the effect of ‘spacing out’ the massive increase in the money supply that is having to be brought on-balance sheet ‘as we speak’, thus containing huge consequent inflationary pressures: but the unprecedented scale of this global refinancing guarantees much higher inflation numbers worldwide in the months and years ahead.

The US dollar is actually being ‘refloated’, for the fifth time. This operation should have occurred two years ago, but was delayed by the notorious US corruption ops. exposed by this website.

In this context, the US Statutes of which the criminal perpetrators and the co-conspiring financial institutions are and have been in breach include but are not confined to the following:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Conspiracy to commit and cover up murder.
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminal activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war

The US securities regulations which have been and continue to be flouted wholesale include:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

Our promised report exposing the folly and fallacies of the ‘Paulson’ proposals unveiled some days ago, which fly in the face of the Basel-II environment of regulatory stringency, and which are now actually ‘going nowhere’, is in preparation and will be published in the forthcoming huge double issue of International Currency Review [Volume 33, Numbers 3 and 4]. The report will cover this subject in some detail, and will make concrete suggestions. In this connection, the Editor has a file of enquiries for this large issue, and will be communicating with all who have reserved a copy or copies, as soon as production is well enough advanced and we know how many orders we have, so that we can set the price. The issue is currently on machine but will take the rest of April to print.


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