- "Everybody knows that the dice are loaded. Everybody
rolls with their fingers crossed. Everybody knows the war is over.
Everybody knows the good guys lost. Everybody knows the fight
was fixed. The poor stay poor, the rich get rich. That's how
it goes, Everybody knows" - Leonard Cohen
-
- And this is how the U.S. Treasury would handle an economic
collapse. It's called the 6900 series of protocols. It would start with
declaring a force majeure, which would immediately be interpreted by the
marketplaces as a de facto repudiation of debt. Then the SEC and the various
regulatory exchanges would anticipate the market's decline, hour by hour
-- when Japan's markets opened the next day, what would happen when the
European markets, and all the inter- linkages of the global markets. On
the second day, US Special Forces would be dropped in by parachute in the
cities where the twelve Federal Reserve district banks are located.
-
- The origin of these protocols comes from the Department
of Defense. This is contingency planning for a variety of post-collapse
scenarios. Those scenarios would include, obviously, military collapse,
World War III, in other words, and its aftermath. What we're talking about
now is aftermath -- how the aftermath would be handled.
-
- One does not necessarily know how the events would transpire
that would cause the collapse, whether it's military collapse or economic
collapse. In World War III, it would become obvious -- when the mushroom
cloud started to appear over cities.
-
- Economic collapse scenarios were always premised on the
basis of a US declaration of force majeure on debt service. It's a very
extensive scenario. The scenarios are all together, i.e., military, economic,
political and social complete destabilization leading to collapse. Then
they break down individual scenarios. In the economic collapse scenario,
the starting point would be the United States Treasury declaring a force
majeure on debt service, which is de facto repudiation, and that's how
it would be interpreted by the world's capital marketplaces. Then the scenario
goes on from there. The US Treasury would obviously declare a force majeure
sometime after the European markets had settled down. In other words, they
had gone out on the day, which means 11:38 a.m. EDT, our time. They'd wait
until the European markets closed, and the US markets had been open for
a couple of hours. That's when they'd determine how to begin the process
of unwinding or controlling the collapse to the best extent possible, mainly
because they know that the greatest hedge pressure would be people seeking
to use other markets to hedge their long exposure in the United States
and that the US would be the biggest seller in all the rest of the world's
markets. Therefore you would want to declare the force majeure when the
rest of the world's markets closed. The declaration of force majeure would
be precipitated by the declaration that the United States is no longer
able to service its debt. That's pretty simple. Who makes that decision?
The Treasury Department. The President does not make that decision. The
Secretary of the Treasury does. He has that authority. You might ask --
wouldn't he have his arm twisted not to do that?
-
- The answer is that if there isn't any money left to service
the debt, it doesn't make any difference what the current regime might
want to do.
-
- The day of reckoning is now coming. What has happened
in the interim, from 2001 to present, is dynamic, global economic deterioration.
The economic deterioration visited upon the United States by Bushonomics
is not a localized event. It is, in fact, global. We have a planet now
that is sinking into a sea of red ink.
-
- The United States is consuming 80% of the planet's savings
rate to finance its debt. The central banks of Germany, Japan and Saudi
Arabia are no longer the powerhouses they used to be. Their reserves have
now been substantially depleted. They can, therefore, no longer hide the
fact that they own a certain number, likely in the trillions of dollars,
of U.S. Treasury debt that isn't being serviced, because they can't hide
it through bookkeeping tricks anymore because their reserves are so depleted.
-
- Therefore somebody has covertly been putting demands
on the Bush- Cheney regime for payment. Why do you think 2900 metric tons
of gold is depleted from U.S. inventory since March of `01?
-
- Why do you think that $2 billion in currency seized from
Iraq last May is now unaccounted for?
-
- Someone is putting demands on the Bush-Cheney regime.
Someone is saying to the Bushonian Cabal that -- You've got to start servicing
this debt because we, foreign central banks, are in nations - European
and Asian - whose reserves are now nearly exhausted.
-
- Who could be putting that kind of pressure on them?
-
- It has to be coming from whoever is organizing this thing
at the very top, which I would tend to think has got to be most likely
a cabal of people that would involve Henry Kissinger, James Baker, George
Schultz, possibly William Simon. It would be somebody at the very top that
is familiar with how to do this. It would have to be someone familiar with
finances.
-
- So would this be one faction of a cabal blackmailing
or forcing another faction? No, it's not really blackmailing. It's being
done out of desperation. The German, Japanese and Saudi central banks are
saying to the Bushonian cabal, You've got to start servicing this debt
because we don't have the reserves to cover you anymore. We can no longer
make it appear that the debt is being serviced because our own reserves
are so substantively depleted. Therefore you must begin to cover this debt.
If you don't, then, at some point, we will have to publicly admit in order
to save our own necks -- that we were the end buyers of a lot of stealth
debt, a lot of debt that your Treasury issued illegally and has never serviced.
That would then expose the whole cabal.
-
- The Kissinger-Baker faction are at the top of how this
was done on the economic side of the equation. They were not the original
insiders so much, but the managers of the conspiracy from the U.S. Treasury,
to wit, the U.S. Treasury and Federal Reserve role-play the part.
-
- Take Henry Kissinger. It may not have occurred to anyone
why in the last 3 years Henry Kissinger has been back in Washington more
than he has in the last 30 years. And why are all these quiet meetings
in Washington with alleged senior Bush-Cheney regime officials, as foreign
news services endlessly put it. It's because Kissinger is the point man.
He's the one that is telling them the disposition of other foreign central
banks.
-
- Kissinger would probably also be involved in transfer
or hypothecation of any assets from the cabal. In other words, they're
being stolen from the American people by the Bush-Cheney regime and the
Bushonian Cabal, and they are being used to hypothecate, transfer, service,
or otherwise carry this debt held by certain foreign central banks.
-
- The process of unraveling has already begun because of
ever-spiraling Bushonian budget deficits. The Bush-Cheney regime, even
in its overt policies (now they're overt political, economic, social and
military policies) is generating $600-billion-plus deficit per year, which
is consuming 80% of the planet's net savings rate.
-
- It doesn't have the slack. In other words, it can't refinance
stealth debt by issuing more stealth debt anymore. Nor can they bleed money
out of the system like they could in the 1980s by hiding it when the overt
policies of the Bush-Cheney regime are already producing a budget deficit
of 6% of Gross Domestic Product. There is no other mechanism that they
could use anymore to hide expansion of debt that could be used to service
said stealth debt, and they are, frankly, running out of assets that they
can steal from the American people.
-
- So the proverbial day of reckoning is coming. The Bush-Cheney
regime (and I give them credit for this) are telling the American people
what's coming, knowing the American people are too stupid to understand.
They are telling the American people about the re- institution of the Gold
Confiscation Act and the sudden scrapping of the Treasury's emergency post-collapse
gold note scheme to maintain domestic liquidity.
-
- David Walker, US Comptroller General and chief of the
GAO has said that should the Bush-Cheney regime be re-ensconced into power
and, hence, the scourge of Bushonomics persist, that the United States
could no longer service its debt beyond 2009. They're not hiding it from
anybody anymore. They are telling you what's happening. Now, what does
that mean? The key is in what Walker is saying when he says the debt can
no longer be serviced. I've been asked this on the radio shows. People
have noticed what Walker said because he's out in the news more often than
he used to be. It's unusual for the Comptroller General of the United States,
which is a rather arcane position, to be out in the news so much.
-
- It simply means that when he says the United States will
no longer be able to sustain Bushonian budget deficits, he means that by
2009, if Bush-Cheney have a second term in office, the United States will
be consuming 100% of the planet's savings rate to finance Bushonian budget
deficits.
-
- Therefore, if the planet can no longer generate any more
liquidity to lend to the United States, one of three things have to happen:
A) There has to be a sudden and dramatic reduction in federal spending.
There are only two places that can come from. There would have to be an
immediate $100-billion cut in defense spending, which would end any hopes
the Republicans had of getting into office for years to come because it
would destroy any confidence the NFWCs (Naïve Flag Waving Crowd) had
in them. Or you would have to scrap the multi-trillion- dollar Bushonian
tax cuts for the Republican rich, something that's equally unpalatable.
-
- The other option, B, as Paul O'Neill mentioned, is a
dramatic increase in the rate of federal income taxation from the current
nominal rate of 28% to 65%, which is what the Treasury Department estimated
would be required post-2009 to provide the U.S. Treasury with sufficient
revenues to continue to service debt.
-
- The third option, or C, becomes the declaration of a
force majeure on credit service of U.S. Treasury debt by the United States
Treasury, which is tantamount and would be accurately construed as de facto
debt repudiation by the United States of America.
-
- There are other signs to look for. They're not going
to happen now, but if Bush-Cheney is re-elected, you'll begin to see more
signs that the end is coming. I know a lot of people may disagree, but
you wait and see. If Bush-Cheney has a second term, see if they do not
institute some currency expatriation control. See if that doesn't come
in the way Nixon tried it in May-June of 1971.
-
- In the second term, there will be some sort of currency
expatriation control in the United States, but there will also be loopholes
that will allow the large money to escape. The restrictions will apply
to the 10- and 20-thousand-dollar people. It ain't going to apply to the
10- and 20-million-dollar people. It would be self-defeating to do that.
-
- When that day comes, in other words, when the U.S. Treasury
declares a force majeure on debt, it wouldn't be broad-cast on mainstream
media. There's no sense because the American people don't even understand
what it means. But the announcement would actually be put on the Federal
Reserve wire system, which would, of course, immediately be picked up by
all media outlets anyway.
-
- The U.S. Treasury would declare a force majeure on debt
after the Asian and European markets closed, probably at 12:30 p.m. EDT.
The reason why that hour was always selected is because Asian and European
markets close. It's also the lunch hour for the markets. It's when you're
going to have the fewest people on the floor of the exchanges. That would
be the ideal time to make such an announcement.
-
- A few seconds after that announcement was made, all United
States markets, both equities debt and commodities i.e., stock, bonds,
commodities, that have trading collars or permissible daily limits would
all be limit-offered with pools. Limit-offered means that there are more
sellers at the limit i.e., limit down, than there are buyers.
-
- So-called 'pools' would immediately begin to form, probably
a thousand contracts every few minutes. 'Limit-offered with pools' - this
is trader language. Pools to sell 2,000 lots, 3,000 lots. That means, the
number of sellers over and above the available buyers at the limit- offered
price. That would begin to build.
-
- By 1:00, the news would begin to sink in because it would
take awhile before panic selling would arise from the public. This news
is being released at lunch hour.
-
- A lot of the American people initially would not even
understand the temerity of the news. You would see professional selling
first, and as that professional selling intensified over the afternoon,
the SEC, the CFTC, NASDAQ, and various market regulatory authorities would
begin to institute certain emergency market protocols. This would be the
installation of the so-called 'declaration of fast market conditions,'
for instance; the declaration of 'no more stop orders,' the declaration
of 'fill at any price,' etc. in a desperate bid to maintain liquidity.
-
- That first day, the Dow Jones Industrial Average and
related indices on a percentage basis would lose about 20% of their value
by the close of business that day. The real impact would come overnight
when the American people found out what this was all about and when it
was explained to them.
-
- At 7:30 a.m. EDT, the Tokyo markets would open, and no
price would be affixed for probably three or four hours into the session
due to the avalanche of selling. Once prices were established, the government
of Japan would close all of its financial markets. Europe would not even
open. All European governments would close all capital exchanges the next
day.
-
- The United States would, in order to accommodate global
electronic trading, attempt to open the market on the second day, which
they would do, regardless of price, just to maintain some liquidity. At
the end of Day Two, the Dow Jones and related indices, would have lost
two thirds of their value, and prices would be set accordingly.
-
- On Day Three, the New York Stock Exchange, the SEC and
other related agencies would recommend to the United States Treasury and
the Federal Reserve that all markets be closed. That would be on the morning
of Day Three. Eleven a.m., the Federal Reserve would then order all domestic
banks closed. All of the twelve Federal Reserve district banks would (30
minutes later) have special U.S. forces parachuted in and around them to
secure whatever gold bullion reserves they had left.
-
- Day Three, 9:00 p.m., the President of the United States
would declare a state of martial law. All financial transactions would
come to an end. The Treasury would act to formally de-monetize the U.S.
dollar and declare it worthless.
-
- This would be totally unprecedented. In the past, collapses
have been temporary and have been brought back up. But what we're talking
about now is the end.
-
- These protocols that I'm referring to aren't even all
that secret. They were publicly available all through the Clinton era.
These are Treasury protocols that were instituted mostly in the late 1970s
when the Treasury and Federal Reserve began to feel that it was important
to have an emergency-collapse protocol in place.
-
- What precipitated the timing of this was the inflationary
spiral of the late 1970s. The U.S. Treasury and the Federal Reserve were
both concerned that this inflationary spiral, which was occurring not only
domestically but globally, might lead to a global, uncontrollable hyper-inflation
that the Federal Reserve or major central banks could not stop by traditional
means, i.e., by raising interest rates and contracting money supply.
-
- There was also the recognition, of course, that global
central reserve bank bullion inventories had been so depleted over the
previous 30 years that any re-institution of a species currency, even on
a temporary basis, and even within a regional or individual nation-state
basis, was no longer possible.
-
- This is an analogy. In a military scenario, it's like
the President of the United States pushing the final red button -- the
commit button. The Treasury Secretary of the United States has a similar
mechanism. It's called the yellow button, the commit button. The Secretary
of Defense has the same system. This is what happens. Computer program
starts to institute these protocols. Imagine the complexity of trying the
manage all this. I think it's going to happen all simultaneously. There
are hundreds of different agencies involved, both domestically and internationally.
In order to maintain liquidity for as long as possible, it has to be extremely
well-coordinated, and there must be existing collapse protocols that can
be used.
-
- The reason I was familiar with them was because I used
to see the U.S. Treasury 6900 Series Collapse Protocol, 6903, 6904 there'll
be A, B, and so on which keyed in to the Department of Defense to be incorporated
within the Department of Defense's own World War III scenario and various
types of military/ political/ social instability/ war/ pestilence, chaos,
etc. scenarios.
-
- All federal agencies had individual collapse protocols
that ultimately got coordinated through the Department of Defense. Obviously,
the Department of Defense would be the ultimate coordinator because it
would need to have special forces available, on a stand-by basis, ready,
that could quickly parachute into areas all over the country, into the
cities particularly, to secure federal properties and assets.
-
- And that's literally how it would begin. By the end of
the third day, it would be all over -- a state of martial law. We're not
talking about war, now; this is just economic collapse.
-
- There's no military implication here, no political, no
social implication or policy directive thereunto. This is strictly economic
collapse. By the end of Day Three, effectively, all banks in the world
will be shut down, all paper currencies will become valueless. Martial
law would be declared. There would be no continuing transactions, at least
for a period of time, of commodities. All providers of fuels and foods
would be shut down automatically.
-
- They have this in great detail too. U.S. Department of
Defense Special 117th Assault Unit would parachute in to seize control
of the cattle yards in Oklahoma City. This is how well it's planned. In
other words, economic collapse would automatically involve expansive military
action and control.
-
- By the end of the third day, when you no longer have
a domestic medium of exchange, you have to have secured food and fuel stocks.
You've got to have troops that have secured distribution points where there
is food and fuel stocks, warehouses, tanks, etc. Otherwise people are just
going to go get them, and the people have to know that if they try to go
break into that store and steal that loaf of bread, they're going to be
shot.
-
- Protocols for environmental disasters are called 'scaling-circle
scenarios.' 'Scaling circles' is a Department of Defense euphemism. It's
also used in FEMA, OEM and other emergency management services. In environmental
catastrophes, which are going to become national or global, it's got to
start someplace. It's going to start in one very small, specific area.
Therefore what happens is that the immediate force containment is the greatest
in the first circle, to try to contain the spread of the disaster and keep
it within that circle.
-
- The environmental problem, to whatever extent it's possible,
before it spreads, will be neutralized or mitigated, in order to keep that
catastrophe within that circle, or, if it is likely that it is to escape
that circle, to attack whatever it is in such a fashion as to mitigate
its strength and its ability to contaminate or otherwise affect other areas.
-
- In the case of earthquakes, for instance, affecting the
west coast, beginning at Mt. Rainier and moving southward -- that's a different
type of scenario. That does not include as much Department of Defense involvement.
It includes separate protocols, wherein mostly FEMA and OEM act as the
senior coordinating agencies between municipal, county and state disaster
and containment, which is called Disaster and Containment Units. Federal
troops would only be brought in for the purposes of maintaining control.
-
- In a military or economic collapse situation, National
Guard units would provide any spare help they could in combating whatever
the problem is. Federal troops would be used in order to have the specific
authority simply to shoot anyone. There are plans for all sorts of scenarios.
The economic-disaster scenario is the one I always found the most intriguing
because it is the one that is least understood by the American people.
-
- Military control would be necessary when lines begin
to form at the banks, people trying to access their money. But that wasn't
even anticipated as a big problem. Lines would form at the banks, but it
was not even envisioned until sometime on Day Three because the American
people wouldn't get it. It would be announced that the stock markets are
down 2000 or 3000 points, and since we've always been taught they'll come
back, the people would still be buying stocks.
-
- You could count on everybody remaining in ignorance all
the way down because the American people have never been taught Economics
101. The American people wouldn't realize the full extent of it until the
markets were closed on the third day, or until the time when they went
down to cash a check and the bank was closed with soldiers out in front.
Then they would go down and see the gas station's closed. They see the
local supermarket has been shuttered, and there's federal troops in front
of it. Then they might begin to catch on. And remember -- it's not just
federal troops. In emergency-collapse protocols, even before the declaration
of a formal state of emergency or a state of martial law, the local military
authorities within any given county or jurisdiction have the ability to
essentially militarize anyone, that is, any civilian. This would be more
than just deputizing civilians. It's federal. In other words, they would
have the ability to militarize and give military authority to a civilian
force. This would include not only police and the sheriffs and state police,
but all local law enforcement that exists below the state level would be
immediately militarized. They wouldn't take just anybody like they did
in Iraq. It would be like the military when they call for volunteers. Then
they'd have everybody and their brother-in-law volunteering, waving around
the American flag and so on.
-
- You've got a lot of pickup-driving guys in this country
with the gun racks in the back and the Confederate flag flying. So you
start waving the American flag in front of their face and say, Hey, you're
going to get your chance you always wanted -- to fit your potbelly inside
an army uniform and carry a gun and shoot people. How appealing would that
be?
-
- And besides, if you do this, then you're going to get
to eat.
-
- In other words, this is how it would unfold over three
days, but, in fact, very few Americans would know what to do about it or
how to take any precautions. They wouldn't have a clue because they don't
understand enough about economics to know what is happening. So that's
what it is -- Economic Armageddon. If the Bush-Cheney regime is re- installed
into power, that is effectively what Comptroller General David Walker is
saying.
-
- In conclusion, since there is very little the people
of the United States can do to protect themselves. We're not going to make
any suggestions of how to protect yourselves because there's very little
you can do.
-
- We could tell you to go out and buy gold coins and bury
them in the coffee can in the back yard and go to your nearest survivalist
store, but, frankly, that's useless. In the last analysis, it's a lot of
hype. There is very little the average US citizen could do.
-
- The only thing that can prevent this, as the Comptroller
alluded to when he was asked by Barbara Walters, How do we prevent reaching
the problem by 2009? He said simply, "A change of regimes."
-
- So how do you prevent it? Don't vote for Bush and Cheney
-- and hope that Bush does not use his emergency powers to cancel or postpone
the election by edict, powers which you, the flag-waving citizens, have
given him.
-
- All flag-waving citizens, be warned. If you want to vote
for Bush- Cheney again, make sure you got plenty of Spam on hand.
-
- Here's an interesting and humorous aside. A couple of
days ago, Hormel Foods, which makes Spam, announced that in the last six
months there have been record sales of Spam in the United States the survivalists'
food of choice. After all, they pride themselves on the fact, as the spokesman
for Hormel said, "It is the only food product you can buy with an
expiration that's 50 years."
-
- When everything goes to hell, when all that man has created
has turned to dust again, the final legacy is going to be Spam. It will
be the last surviving item -- when the anthropologists of 20 thousand years
from now are digging sites and they see these enormous mountains of unopened
cans of Spam They'll have monuments to the past out of Spam.
-
- So if Bush-Cheney has a second term in office, there
will be some sort of currency restriction, like Nixon did in 1971. On April
13, 2004, Deputy Assistant Treasury Secretary John Boine talked about potential
currency restrictions. He used the word that's going to fuel the flames
of the survivalist and gloom-and-doom collapse people.
-
- It's very, very telling that the U.S. Treasury may institute
a restriction on the amount of U.S. dollars that can be converted into
gold.
-
- Furthermore, he intimated (and I suspected that this
was coming, although this wouldn't actually become law until Bush-Cheney
was in office for second term one way or another) that the Bush-Cheney
regime determines that the Gold Confiscation Act gives to Treasury the
power for so-called forced disclosure of gold holdings.
-
- I'm not quite sure of the language of the Gold Confiscation
Act from 1933. It just says, "compelled", as in citizens are
lawfully compelled to redeem gold for script. I don't think there was any
such provision, which he was inferring that there is. That was FDR's "Raw
Deal" of 1934, when people were coerced into giving up their gold.
But nowhere in this act does it specifically authorize the Treasury to
mandate citizens to report their gold holdings. So if this gets any press
at all, particularly within the circles of gold bugs and so on, watch out.
-
- Furthermore, on Washington Journal they were talking
about how FEMA has recommended to the Office of Homeland Security to have
increased restrictions regarding citizen hoarding of long-term food and
fuel supplies. That's pretty sinister too.
-
- What they're talking about is the purchase of long-term
so-called stores of survival food. FEMA was talking about some sort of
restriction preventing people from accumulating food stores; putting it
simply, that's what it means. The second point was to increase restrictions
that already exist.
-
- FEMA was recommending even tighter restrictions on citizens
building their own private property underground storage tanks for the purposes
of long-term storage of fuel. The real intent of this is is threefold:
a) to restrict citizens' ability to hoard food; b) restrict citizens' ability
to hoard long-term storage of fuel; c) the forced identification of citizens
to reveal food and fuel stocks they may be hoarding.
-
- And that, in my opinion, is the real essence. The Bush-Cheney
regime was scared of having the FEMA angle put into the equation because
they knew what it means and how people would interpret it.
-
- They have tried to use environmental legislation to restrict
people's ability to build fuel storage facilities on their own property
-- to get around what the true intent of that was.
-
- But the bigger picture is that if you start to limit
citizens' ability to hoard fuel and food and shake them up by potential
forced identification of gold holdings or forced redemption.
-
- In other words, what you don't want is citizens who have
the ability to store a lot of food and fuel and to own gold because they
would be able to resist state control in the future.
-
- You've got to have every citizen on a rationing card
to control the civilian population. You can't have citizens out there hoarding
food and fuel because then people can say to government,"I ain't taking
a rationing card, baby, with my national ID card. I don't have to. You
can't control me through food and fuel and ever-worthless paper currency."
-
- I used to make fun of these people. But now, things have
come full circle on this debate. The Bush-Cheney regime is making it increasingly
clear through their small changes in policy. Not a lot of people monitor
these decisions, but I do. And the pattern is becoming increasingly clear.
-
- In fact, I would believe that those of the survivalist
mentality (the food, fuel, the gold coins in the coffee can in the back
yard) people who think that way will be ultimately vindicated - if George
Bush has a second term in office.
-
- People should quit making fun of them because they would
be vindicated - even though they were all burned out, twenty-dollared to
death, buying books and tapes, and discredited by mainstream media. It
may sound like a hollow victory, but it won't be a hollow victory for them
- them that's got the Spam...
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