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Treasury Secretary Jack Lew gives us clues about the current crisis

Apr 13, 2016

The US Treasury Secretary gave a speech to the Council on Foreign Relations yesterday that may provide some clues as to why the Fed has had three emergency meetings this week.


U.S. Treasury Secretary Jacob Lew on Monday called for reform of the international financial architecture to allow the United States to continue benefiting from the system.

In a speech delivered at the Council on Foreign Relations, a think tank, Lew said that the United States have reaped significant benefits from the international financial architecture put in place after World War II, and it has to take necessary steps to preserve and strengthen the country's position and secure the benefits.

The United States should work with its partners to further modernize the International Monetary Fund and the global trading system, make the World Bank and the regional development banks more efficient and effective, and reform the international financial regulatory system, Lew said.

With regard to the relationship with China, Lew said the United States and China have a unique responsibility to work together to advance shared prosperity, maintain a constructive global economic order, and make progress on critical challenges like climate change.

This article tells us that Jack Lew was concerned about the financial architecture (i.e., the Bretton Woods agreement) which established the US dollar as the world reserve currency. The agreement said that trade deficits between central banks would be settled in gold. That agreement ended when Nixon closed the “gold window” and took us off the gold standard in 1971, forcing nations to settle in US dollars instead.

Since the original gold backing the Federal Reserve Bank had been provided by the Dragon family in 1913, Nixon essentially broke the rules and caused a huge problem. The gold had been provided as a loan, but the bankers soon stole the gold or (mis)used it for their own purposes to make money with investments and power plays. That gold is now due for repayment, but it is no longer possible to repay, nor can they repay the interest that is also due.

A second gold shipment was sent by the Dragon family, dated August 17, 1945, to fund the newly-organized United Nations, which was registered in Batavia (now Jakarta), Indonesia. This was a 70-year charter/loan of just over 78 billion kg of gold worth $506,502,000,000 (US). This came due August 15, 2015, just in time for the great transfer of authority in prophecy.

Negotiations have been taking place behind the scenes, but from reports I have received, the western banks and Babylonian bankers do not have the money or gold to repay the debt. The Dragon families are thus negotiating for more authority in the new “international financial architecture,” so that the problem of theft is not repeated in the 21st century.

This, I believe, is why Jack Lew is telling the CFR to “reform the international financial regulatory system” in order to make it “more efficient and effective.” It is also “to preserve and strengthen the country’s position and secure the benefits” of the previous arrangement. The Dragon families are demanding such changes, if the US wants to continue benefiting from its previous position of advantage under Bretton Woods.

Jack Lew says that his recommendations are to “preserve” the US’s position. In other words, the US is in danger of losing that position. That, I believe, is the underlying reason for this week’s emergency meetings. If something is not done immediately, the banking system set up after World War 2 will be in danger of collapse.

It is understandable that the Babylonian oligarchs do not want to give up power, but they are being forced to do so in spite of their foot-dragging. We will arrive at the moment of truth when the power shifts from West to East. This will be done the easy way or the hard way. But because the original city of Babylon fell intact, I believe that this will be done without wholesale destruction. The banking system itself is not the problem. The problem are the bankers who control it and who have taken advantage of their power to enrich themselves at others’ expense. With new people put into power (behind the scenes), the present-day bankers will have new overseers and will have to comply with their new rules and regulations.

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Category: Financial
Blog Author: Dr. Stephen Jones