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Big banks being exposed

Nov 17, 2018

In 1971 President Nixon announced wage and price controls. It was not long before store shelves were empty, and no one wanted to sell their produce at those frozen prices.

https://www.cato.org/publications/commentary/remembering-nixons-wage-price-controls

Deutsche Bank, BofA, JPM Are Drawn Into Danske Probe

On Aug. 15, 1971, in a nationally televised address, Nixon announced, “I am today ordering a freeze on all prices and wages throughout the United States.”

After a 90-day freeze, increases would have to be approved by a “Pay Board” and a “Price Commission,” with an eye toward eventually lifting controls — conveniently, after the 1972 election.

Putting the U.S. economy “into a permanent straitjacket would … stifle the expansion of our free enterprise system,” Nixon said. As President George W. Bush put it in 2008, sometimes you have to “abandon free-market principles to save the free-market system….”

As Nobel Prize-winning economist Milton Friedman correctly predicted, however, Nixon’s gambit ended “in utter failure and the emergence into the open of the suppressed inflation.” The people would pay the price — but not until after he’d coasted to a landslide re-election in 1972 over Democratic Sen. George McGovern.

The government saw that this was a failed policy, so they made one major change. Instead of directly implementing price controls, they began to manipulate the markets behind the scenes. The price of gold and silver, for instance, was manipulated behind the scenes in order to prop up the dollar after cutting it loose from the gold standard.

Every event has to be seen in context, because every event is part of a sequence. Essentially, what has happened is that the government institutes a bad policy and then finds it necessary to find ways to solve the problems caused by the original bad policy. Further band aids are then necessary year after year until their medicine cabinet is depleted and the whole thing implodes.

A Century of Sequential Events

One way to look at the sequence in the past century may look like this: Congress passed the Federal Reserve Act in December 1913, giving the right to create money to powerful private bankers. The US government goes bankrupt in 1933. The government then steals private gold from the people and puts it into the Exchange Stabilization Fund to fund the new Babylonian Socialist government and its culture-changers.

Then they plan World War 2, which destroys Europe. This leaves the USA as the only nation in the world whose industry has not been destroyed. The US dollar becomes the world currency in 1944 as per the Bretton Woods summit. The US government abuses its position in the 1950’s by overprinting money that could never be backed by the amount of gold in Ft. Knox. The CIA wants a war in Viet Nam, but President Kennedy objects. The CIA insists. Kennedy declares war on the CIA and loses that war in 1963.

The Viet Nam war causes the USA to print more money. France then gets worried and wants gold rather than dollars in its trade settlements. Nixon closes the gold window in 1971, cutting the dollar loose from gold. Inflation increases. Nixon announces wage and price controls to combat inflation. That fails, so the government decides that the problem is caused by informing the public. They go underground and begin manipulating prices without public knowledge. Government power increases, and personal liberties are reduced.

Meanwhile, they made an agreement with Saudi Arabia to back the dollar with something new—oil. That created the petro-dollar to replace the gold-backed dollar. It caused a whole new round of consequences affecting the Middle East, resulting in funding Islamic countries with their agendas. Ultimately, we found ourselves in a “War on Terror,” which treated symptoms without dealing with the cause.

That is obviously an oversimplification. Many factors were involved. But I think this is a pretty good genealogy of our policy “child” today.

Government officials soon found that to manipulate successfully, they had to manipulate virtually all prices. This soon destroyed the free market, so today no one knows the true price of anything. Traders, speculators, and investors who have not understood what was happening have essentially been defrauded of profits that they would have made if prices had been allowed to increase. For instance, the price of gold and silver would have increased greatly in relation to the US dollar, if there had been a free market. But there was not.

Forty years ago industry was using up more silver than was being produced, and yet the price of silver was going down. It made no sense, but few understood what was happening. Yet people like Ted Butler, a long-time silver analyst, figured it out quite early and made a career out of exposing the problem. He went to the authorities and informed them that the derivatives market was supposed to be derived from the physical market, not the other way around. The government regulators were not interested, because they were part of the problem.

During the past 40 years, if the government had stopped its manipulation and let the market decide the price of everything, there would be a lot of turmoil for a while, and the press would have blamed the president. The real culprits, of course, are the hidden masters of Mystery Babylon who hire “advisors” to surround the presidents and feed him selected information.

There have been regular news reports over the years about various banks engaging in money-laundering or price fixing. In recent years the Justice Department has imposed fines on various banks on charges of price manipulation, but most of the manipulation was being done under government contract, so very little of this has been prosecuted.

JP Morgan Manipulation

On November 6, the Justice Department published the news that a JP Morgan trader had pleaded guilty to metals price manipulation. He says that he had been trained by the company to do this, essentially implicating the entire company, and other banks colluded with them as well.

https://www.justice.gov/opa/pr/former-precious-metals-trader-pleads-guilty-commodities-fraud-and-spoofing-conspiracy

On November 12, 2018 this news came out:

https://arcadiaeconomics.com/silver-price/former-j-p-morgan-trader-pleads-guilty-to-gold-and-silver-manipulation/

Former J.P. Morgan Trader Pleads Guilty To Gold and Silver Manipulation

The website of the U.S. Department of Justice stated the following:

“A former precious metals trader (John Edmonds) at a United States bank (Bank) pleaded guilty in a proceeding unsealed yesterday to commodities fraud and a spoofing conspiracy in connection with his participation in fraudulent and deceptive trading activity in the precious metals futures contracts markets.

As part of his plea, Edmonds admitted that from approximately 2009 through 2015, he conspired with other precious metals traders at the Bank to manipulate the markets for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc.”

Of course this is not the first set of charges brought in the precious metals manipulation saga. Deutsche Bank has been caught. And recently the Bank of Nova Scotia was caught as well.

Meanwhile, JP Morgan has accumulated about 700 million ounces of silver, planning for the day when silver manipulation is no longer possible. They know that when the manipulation collapses, they can survive the crash if they own a lot of silver. But meanwhile, they have shorted the price of silver in order to depress the price, allowing them to buy silver at low prices. Their inside information has allowed them to defraud the average investor who thought that there was a free market and saw that there was also a shortage of physical silver. A free market would dictate that the price of silver should increase considerably.

The wheels of justice grind slowly, so we do not know how long this will drag on. However, the news this month shows that something is brewing. The bottom line is that the wealthy have a huge advantage over the average person in “the pursuit of happiness,” as the Declaration of Independence puts it. It is one of the big reasons why the rich get richer and the poor get poorer.

Collusion between government and corporate interests is the classic definition of Fascism. It exists alongside of Communism, which is actually Socialism in practice. So as the poor get poorer, the Socialist side of government steps in to steal from the middle class and to giver to the poor. What they cannot steal through taxes they make up for in borrowing money that is created out of nothing by the Federal Reserve. The government thus goes deeper in debt and is thus controlled by its creditors. Hence, we move toward Totalitarianism, which is the ultimate goal of both Fascism and Communism, both of which were invented by the same people.

Fortunately, Bible prophecy shows us that God’s 2,520-year contract with the beast systems of Babylon has ended. Things are now changing for the better, and though we are still not out of the darkness, the light is beginning to dawn. It will take time, but we are on the winning side.

Danske Bank Investigation

Also, Danske Bank in Denmark has been investigated in recent years for illegal manipulative actions, and this is now spilling over to JP Morgan, Bank of America and others who colluded with them.

https://www.bloomberg.com/news/articles/2018-11-16/deutsche-bank-bofa-jpm-are-said-to-be-drawn-into-danske-probe

Danske Bank, Denmark’s largest lender, has admitted that a large portion of the roughly $230 billion that flowed through its Estonia branch during the period under scrutiny -- an amount comparable to Estonia’s entire economic output during that time -- was suspicious. In recent weeks the bank’s chief executive officer and chairman have been forced out over the scandal.

These banking scandals, I believe, will soon reach a tipping point, and then we will see more consequences in the days ahead. 

Perhaps we will see more financial news leading up to our "Joseph Conference" in late January. The Joseph Conference in part is going to deal with financial issues, as we discuss Kingdom economics and what a righteous monetary system might look like.


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Category: Financial
Blog Author: Dr. Stephen Jones