The $15 Trillion Mystery

By Jeff Nielson
02/24/12 – 08:06 AM EST

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage.

These are the two principal questions being framed today, after Lord James of Blackheath (a member of the UK House of Lords) unveiled documentation (and accusations) concerning a mounting of illegitimate cash: $15 trillion.

At the moment, only Lord James is asking these questions. However, if he gets his way there will be an official inquiry into this massive, money-laundering operation. Already, Lord James possesses documents with the signatures of people like Alan Greenspan and Timothy Geithner on them, as well as massive transfers of funds to virtually every mega-bank in the U.S. and UK.

While Lord James (himself a former banker) is holding the “paper trail” for all of this dirty money, he has no firm ideas about either the source of the money nor the intent of all of these massive transfers (all in the hundreds of billions) to U.S. and UK banks. Perhaps I can help him out?

Regular readers will be familiar with some of my own speculation into U.S. money-laundering (and counterfeiting of its own currency). Of interest, my own theorizing was based on a series of logical deductions that implied that some massive money-laundering operation (of counterfeit currency) must be taking place in the dying U.S. economy. And now we have a detailed paper-trail on the largest (known) money-laundering operation in history.

To refresh the memory of regular readers and to inform new readers, back on Jan. 3, I published a commentary titled “Maximum Fraud in U.S. Treasuries Market”. In that commentary, I outlined a series of simple-yet-obvious deductions pointing out the following facts:

There are (virtually) no visible buyers for U.S. Treasuries on the planet (at any price).

Even if there were interested buyers, there are no sources of capital available to mop up all the trillions in supply being dumped onto the market each year.

Even if there actually were interested buyers, and even if they could scrounge the $trillions to buy this worthless paper, it is utterly absurd to suggest that these buyers would pay (by far) the highest prices in history for this paper at a time of maximum supply. It defies every basic principle of supply and demand.

Taking this scenario from “absurd” to outright insanity, the U.S. economy has never been less solvent in its entire history. This directly implies that U.S. Treasuries should be fetching the lowest prices in history — not the highest — just like the worthless bonds being flogged by Europe’s deadbeat-debtors.

In other words, by process of simple deduction it was totally obvious that a gigantic, money-laundering operation was being conducted, with the primary goal being to prop-up the totally fraudulent U.S. Treasuries market. All that was missing was a paper trail to prove this fraud, and now Lord James of Blackheath has been kind enough to provide this.

Undoubtedly many readers will be skeptical of this, assuming that there would be no need to get into such a cloak-and-dagger (and blatantly illegal) process to pretend that worthless U.S. Treasuries still have value. Supposedly, these bonds have more “value” than at any time in history – despite the issuer of those IOU’s being hopelessly insolvent and merely delaying its own bankruptcy.

The $15 Trillion Mystery: Opinion – TheStreet.

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Largest Central Banks Now Hold Over 15 Trillion in Fictitious Capital

Submitted by ilene on 01/28/2012 00:50 -0400

Courtesy of Russ Winter of Winter Watch at Wall Street Examiner

Japan is just one insolvent country; there are others. In tandem, the central banks of these nations hold $15 trillion plus in inflated securities, loans and sovereign securities, in one giant Ponzi pool holding increasingly insolvent debt and “liquidity” loans to banks. As defaults and more credit downgrades gather steam (UK, US, France, Germany and others), the markdowns of these $15 trillion will accelerate. It is important to remember that the capital for central banks is provided by the participating govts. For example, this is who backs the tiny $81 billion ECB capital used to lever 2.75 trillion in “assets.” 

When central banks (CBs) expand their balance sheets, they buy securities and accept collateral of securities. As such they take risks, especially when defaults occur. And what is the quality of those securities? 

These charts are actually dated. The CBs own these markets, use thin capital bases, and are going to be handed the losses on the fictitious capital they hold. Tattoo this on your forehead, CBs hold well over 15 trillion in securities and loans to banks of various and often dubious quality, an immense gamble. These are all ultimately the responsibility of the sponsoring country, and represents a monster contingent liability. That will be the end game.

via Largest Central Banks Now Hold Over 15 Trillion in Fictitious Capital | ZeroHedge.

Iceland forgives mortgage debt of its population

Published on Apr 12, 2012 by telesurenglish

The government of Iceland has forgiven the mortgage debt for much of its population. This nation chose a very different way of stopping the crisis from the rest of European countries. It decided to hear the requests of the population and to put politicians and bankers on the bench of the accused three years after their financial excesses would sank one of the most prosperous economies in 2008. teleSUR

http://multimedia.telesurtv.net

Iceland forgives mortgage debt of its population – YouTube.

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