December 19, 2012
The provisions of the proposals to avert the fiscal cliff are to allow automatic spending cuts and increase taxes in such an insignificant amount over the next decade that no dent in the deficit would be detectable. And in fact, without action by the Congress or the Obama administration, the fiscal cliff will go into effect.
The distraction tailored in the mainstream media concerning the fiscal cliff is the attention to the bantering between Boehner and Obama. This theater diverts the American public from the massive amount of austerity measures that will plunge every US citizen into poverty.
Hidden in the inflated US dollar, as the Federal Reserve continues to print fiat and pump it into the system is manifesting a dollar bubble. Without $130 annually cut from the current spending budget, there will be no significant reduction.
Thanks to the derivatives debacle created by the technocrats, as well as planned implosion tactics by JP Morgan & Chase Co., Bank of America (BoA), Citibank and Goldman Sachs, 95% of the $230 trillion in US derivatives exposure was founded in the US.
Mega banks like BoA and Citibank rerouted customer funds into loans to other financial institutions, corporations and also purchased US Treasury bonds.
Depository monies held in Goldman Sachs were used to bet against and for interest rates, fiat currency exchange rates, mortgages and prices of commodities and equities.
According to the US Treasury, China and Japan have become major foreign investors in the US; even as their holding currently is substantial, they have surpassed this marker.
These new purchases are bypassing Wall Street’s acquisition. In essence, the People’s Bank of China is directly dealing with the US Treasury to increase its $1.17 trillion in current holdings of US Treasury bonds.
The US Treasury has given the PBC a direct computer link to its auction system so that China can instantly participate in those auctions without placing bids with primary dealers – cutting out the middle man.
Matt Anderson, a Treasury Department spokesman said: “Direct bidding is open to a wide range of investors, but as a matter of general policy we do not comment on individual bidders.”
After the US Treasury found that China was concealing their debt purchases through special deals with primary dealers, changes in the Treasury’s rules restricted these deals. China has been given direct bidder status. This change is purported to have limited China’s access to the private network connection system.
The National Association of Realtors (NAR) is reporting that thanks to foreign investors, the housing market is beginning to make a recovery. These non-American buyers have purchased $82 billion worth of US homes with $7 billion being Chinese and the second largest investors to the Canadians.
Chinese business owners and possibly government representatives are acquiring a large amount of American real estate with $2 billion in commercial properties in 2011.
The NAR also says that Japanese investors are “buying up America’s landmarks” which has been hailed as an “economic miracle”. The Japanese are interested in owning “high-priced hotels, golf courses, office buildings and condominiums.”
The NAR praises this boom in foreign investors are a conceptual move from traditional to non-traditional investing. New York is seeing an obvious increase in sales to foreign investors which as contributed to the increasing pace of real estate transactions; while not increasing the value of those properties.
CB Richard Ellis, global real estate advisory firm, asserts that foreign money flooding the US real estate markets means a 1.5% increase to Americans. As property in America is moved into the hands of Asian business-owners and government representatives large portions of New York City, Washington DC, Boston and San Francisco are disappearing from the control of Americans.
This move is touted as an attempt to turn foreign currency from the implosion being committed in the Euro-Zone. And in protecting their ability to use their fiat currency, investing in hard assets (i.e. property, land) is ensuring the wealthy remain so regardless of whether or not fiat currencies are destroyed across the globe.
The Obama administration is pushing for auctions of foreclosed to foreign investors in bulk sales. The foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Agency (FHA) are of the utmost importance to unload onto foreign investors. By setting the stage for easy money from foreign investors, Obama ensures that those investments are given a major return as more properties are given up for rent rather than resold.
The largest banks in the US, controlled by the technocrats are staunchly opposed to this move by Obama. They include:
• Wells Fargo
• JPMorgan & Chase Co
• Bank of America
Earlier this month, the Fed announced more stimulus admit the looming fiscal cliff, unemployment and strategic inflation caused by QE3. More bond buying is taking place, which means the Fed continues to become America’s biggest land owner.
The third round of quantitative easing enacted by Ben Bernanke, chairman of the Federal Reserve Bank is nothing more than a massive land-grab in the domestic US by the technocrats under the guise of purchasing the mortgage-backed securities through the Federal Reserve to alleviate the pressure the banks are feeling from the bait-and-switch they caused.
Essentially, as the Fed buys the mortgage-backed securities, the central bankers will now own all those properties which were bundled and securitized. The experts are still coming to terms with how many homes, small business, small farms and other lands were mixed-up into this Ponzi scheme. The sum total numbers of victimized Americans are continuing to rise and are currently unknown. However, it is clear that as this monster grows, it will be the Federal Reserve at the helm, making sure that more Americans are displaced and foreclosed on.Add This to Technorati Faves