RON PAUL: ‘YOU CAN’T BAIL OUT DEBT WITH DEBT’

RON PAUL: ‘YOU CAN’T BAIL OUT DEBT WITH DEBT’

(from: Global Analysis, May 11, 2010)

One Congressman who does understand the advanced form of madness driving the White House, the Treasury and the Federal Reserve, as they continue wilfully down the wrong path, is of course Representative Ron Paul, who points out that ‘you can’t bail out debt with debt’. No, as we have repeatedly explained, you can’t: but that is precisely what these desperate financial terrorists are doing, in order to keep their hot air balloon in the air and the carousel continuing by exploiting the collective stupidity of foreign central banks.

These include the Bank of Japan, the Bank of England, the Bundesbank, the Banque de France, the Swiss National Bank and the European Central Bank – which, for some unexplained reason, have not yet realised that the Federal Reserve is corrupt and compromised, and that the US authorities are following a course guaranteed to lead to financial and economic catastrophe.

A system effectively of 90-day repos has been arranged whereby these dumb central banks will be printing their own currencies, and stuffing them to the Federal Reserve on behalf of the Treasury, in exchange for Treasuries. But Treasuries are completely worthless: as indicated below, nobody in the marketplace who’s not in need of brain surgery wants US Treasuries these days.

So the crazed US authorities are using up the only undeserved residual source of goodwill they have left – the rather ‘thick’ central banking community. Foreign central bankers need to wake up and come to their senses. By accommodating the US authorities via these exotic operations, the foreign central banks, including the Bank of England which has been repeatedly ripped off by these sheisters, are merely buying more time for the desperate clique in charge of America’s progressive financial and economic destruction, to complete the collapsing of the system.

The right thing to do when confronted with bandits in your front room is to order them out of the room, or to shoot them dead. You hardly invite them to sit down and have a nice cup of tea and cake. The central banks that are accommodating the American official financial criminalists are choosing the easy option: which means that all they are doing is stacking up worse trouble for the future, and guaranteeing that when the US financial balloon explodes, all the subsidiary financial balloons held aloft by these myopic central bankers will explode in tandem.

SEVERE PROBLEMS EMERGE ON THE FOREIGN EXCHANGE MARKETS

There’s also severe trouble on the foreign exchange markets. New York dealers are complaining that only spot forex trades are being handled, because foreign exchange dealers can no longer trust counterparty banks to honour spreads agreed-upon at the time of the transaction.

And with the Federal Reserve arrogating to itself effectively the rôle of the world’s primary foreign exchange centre, as well as the rôle of rediscounter for the central banks, the emerging state of affairs is that the most unsound, decadent, corrupt and failing central banking system in the world believes that it can remain in business sine die by means of these artificial arrangements involving the creation of new debt for old.

Since the named central banks evidently believe that this is possible, they deserve what is coming to them. As for the Bank of England, which knows all about the private sector US Dollar Refunding operation to be conducted out of London (as has been reconfirmed to us on 11th May, by the way), it appears to be no better than Merkel and Sarkozy.

Like elements of MI-6, it is evidently sabotaging the British Monarchical Power. There has always been a serious problem inside the Bank of England: and you’ve only got to observe the lugubrious physiognomy of Mr (still not even knighted) Mervyn King, the Bank Governor, to recognise that this must indeed be the case. Otherwise he'd smile occasionally. But he never does.