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From:

 

Note that this is coming from a site that pushes for gold, however, THIS IS 
QUITE ALARMING.  IF TRUE, WE NEED TO FINISH PREPARATION FOR SAFETY......ASAP!  


Breaking Jim Willie on September/October

 

   The following is an excerpt from the third part of the August edition of the 
Hat Trick Letter, copyright by Jim Willie CB.  <http://www.goldenjackass.com> 
www.goldenjackass.com 
   

These are several snips I have made, so flow and punctuation may not be perfect:
   

Early snips
   

The US bankers have put together a nasty cocktail. They expect to force foreign 
creditors to drink it, but those who developed on Wall Street and the US 
government ministries will have to drink it themselves." - Petr from Germany (a 
banker und subscriber).
 
   A deflation cocktail backfire is in the works. The preoccupation with 
falling prices of products and assets has distracted attention from the 
colossal monetary inflation and credit creation in USTreasury debt. A declining 
money velocity again ignores the bank sector. Prepare for price inflation.
 
   John williams provides a theory on the path to hyper-inflation from falling 
demand for money. A pictorial sequence tells the story sure to lead to powerful 
political pressures. The call to produce price inflation will become a loud 
scream soon. Pressure is relentless to turn on the inflation spigot full blast. 
The process is well along without much further push. Apparent stability 
precedes hyper-inflation, as floodgates are gradually opened over time, 
actively or passively.
 
   ◄$$$ MARTIN ARMSTRONG IS A FINANCIAL MARKET ANALYST, JAILED FOR KNOWING TOO 
MUCH ABOUT INNER WORKING WALL STREET CORRUPTION. HE IS PRESCIENT, AND GIVES 
FURTHER WARNINGS. 
 
   $$$ The latest analysis by Martin Armstrong has found its way from his 
prison bars. He cannot be totally silenced. He warns in an August 7th release 
entitled "Cycles & Pattern Projections" of a consolidation stage soon to end 
that lifts the gold price to triple its current level, first from a global 
monetary crisis, then a follow through due to the arrival of price inflation. 


   Armstrong wrote, "Gold continues to consolidate below $1000. This is a 
critical sign that confidence is swinging away from the government. Just as 
China is concerned for the dollar, they speak the truth, unlike the BS from 
Washington. They are speaking from self-interest and so is Washington. China is 
concerned about its holding in dollars and has been reducing the maturity of 
their holdings. The Washington crowd has been speaking out of their 
self-interest insofar as they do not want to face reality. They keep telling 
everyone 'don't worry-be happy.' It appears that gold is building a base from 
which a rally up to $2500 to $3000 area is very likely. There is even a 
possible rise to the $5000 level, but that is the most extreme projection. This 
is suggesting that confidence in the dollar is declining. This is not the 
classic inflation nonsense, but a collapse in currency value consequence." See 
the Scribd article (CLICK HERE).

 

   A CLIMAX OF EVENTS IS IN PROGRESS, AS SIGNALS MOUNT, AND CLIMAX SEEMS NIGH. 
$$$ A close friend of a close friend has numerous connected contacts within the 
power structure. He passed along a note that caught my attention, when not many 
personal notes do so. It follows with his descriptions, and only minor edits. 
His points will be summarized without quote, with much gratitude for his shared 
message.

 

   Several key events are lined up simultaneously, enough to warrant greater 
perceived likelihood of at least a declaration of state of emergency in the 
United States. It could result easily in martial law.
 
   He pointed out astutely that the Chinese stock market is under pressure, so 
the Chinese might have political cover (an excuse) to call some money home and 
withhold on some credit supply to the hapless flailing out of control 
Americans. They might deliver a 'Ripple Effect' passively or a 'Direct Message' 
more actively, as they call money home, or as he says remove chips from the 
tables.
 
   He cited the 'Investment Banker' scuffle taking place in Europe with 
Porsche/VW, but that seems minor.
 
   The endless skirmishes between the crude oil hedge versus the beleaguered 
USDollar speaks volumes when clearly demand has fallen and supply has risen. 
The smart money is hedging against the US$ clearly. The effects of both the 
criminally administered TARP Funds and the mindlessly vacant Stimulus Plan have 
run their course, unable to give any further assist to the USDollar. 
 
   His USMilitary intell contacts have suddenly turned silent at a time when 
the Pentagon has let it be known of a need for 400 thousand troops to keep the 
peace inside the United States. Rumors fly that the Pentagon want all 'ready by 
the end of August' without anything to refute.
 
   In the USMilitary command for Afghanistan, a major change has begun. And in 
Iraq, an Army General has said 'all significant troops out by the end of August 
and back home in America.' Rumors also report how another False Flag Attack is 
en route, in the planning stage. This attack is mentioned by a certain source 
as aimed for WashingtonDC on October 19th. 
 
   A sage contact who forewarned of the September 2008 sequence of failures and 
crisis almost one year ago sent a message of update this weekend. He said, "We 
are in the middle of the breakdown. Just watch the US budget disaster that is 
killing all and everything. Things are coming apart at the seams since the 
entire global banking system is breaking down. Trade is breaking down as well 
due to banks being in shock freeze. This shock freeze will not go away, it will 
destroy the system. Different systems will soon spring up to facilitate trade. 
We shall see the tail end of the financial economic political hurricane touch 
down sometime at end of August and early September with an never ending 
downward spiral that will destroy assets on a grand scale. I still expect the 
breakdown to be in the time frame we have been discussing. The pump and dump 
market manipulations by the BOYZ are fascinating to witness. Its like watching 
a head kill shot in slow motion. Only real hard assets will survive, Gold, 
Silver and a basket of essential commodities grouped around this precious metal 
core."
 
   Notice the anticipated timeframe, an anniversary of the crisis last year. My 
response to him was brief and simple, but to the point. "I notice tectonic 
shifts in the currencies in the last two weeks. The USDollaris stuck in a tight 
range, soon to exit in unstable fashion. The British Pound Sterling moves up 
and down with much volatility. More US banks are falling. Big ones like 
Colonial and Guaranty just died. Soon much bigger ones will fail. The types of 
credit losses are soon to broaden into Commercial and Prime Option ARM 
mortgages. Banks are still in a nightmarish situation, unprepared, while clown 
leaders proclaim an end to the storm." 
 
   HUGE SCARY FOREX DISCOUNT IS BEING USED RIGHT NOW BY MARKET INTERMEDIARIES 
FOR CASH CURRENCY TRANSACTIONS. THIS IS A CLEAR LOUD PREVIEW OF FUTURE US$ AND 
BRITISH POUND STERLING DEVALUATION. THE DISCOUNTS PROBABLY OCCUR ON GRAND 
ACQUISITIONS, SPENDING US & UK DEBT, IN CONVERSION TO HARD ASSETS.
 
   $$$ Last week, my email INBOX was abuzz. A query came from me to a reliable 
regular banker contact with connections to Europe, Asia, and the Persian Gulf. 
My query specifically commented on the frenetic British Pound Sterling, which 
has risen or fallen by almost 200 basis points on a several days in the last 
week or more. It shows great instability, my point, likely a prelude such as 
any initial tremors before a big earthquake. What came back was a shock, as 
news of actual liquidation activity have come his way.
 
   ***He wrote, "Really substantial transactions in buying USDollar are done at 
a 38% discount, and British Pound Sterling are done at a 42% discount. The big 
off market transaction guys are already factoring in the coming devaluation. 
Hundreds of billions are involved, including outright cash transactions where 
those discounts are being applied." ***WOW!! He had mentioned just days before 
in another exchange that a big event comes on the near horizon having to do 
with angry USGovt creditors. They have run out of patience. They feel the 
USGovt pays no heed to their concerns, in displayed arrogance.

 

   The global banker said a coordinated group of foreign creditors are planning 
to sell several hundred billion in USTreasurys in the months of September and 
October. If executed, then a US bank holiday is assured, and a significant 
devaluation of the USDollar comes. We might even see the first hint of a 
temporary USTreasury default.

 

   In the same line of exchanged communications, that also involved a couple 
other fellows who are respected, questions came as to when this charade would 
end. The US$ had bounced yet again on vaporous news and heavy interventions. My 
comment was simple: GOLD WILL RISE AND THE USDOLLAR WILL FALL, IN A POWERFUL 
WAY, WHEN CHINA DICTATES IT, WHEN CHINA IS READY, WHEN CHINA DECIDES IT. My 
connected banker contact agreed totally. Furthermore, Chinese agency 
organizations have been gathering considerable information from the Gold 
Anti-Trust Action committee, probably to make the case that the USDollar is not 
legitimate even on US Constitutional terms. When they slam the US$, they will 
likely make the case for an illegitimate USDollar operating as the currency by 
a financial sector ripe with corruption and fraud. 

 

   AN IMPORTANT BARTER SYSTEM PLATFORM IS SOON TO BECOME A REALITY. IT BYPASSES 
THE US$-BASED SETTLEMENT SYSTEM, ELIMINATES THE BANKERS, MATCHES BUYER & SELLER 
EFFICIENTLY, AND GREATLY REDUCES THE POTENTIAL FOR FRAUD. FEEDBACK IS 
ENCOURAGING ALREADY. $$$

 

   The following information comes from a person closely involved in 
development of the barter exchange itself. The Jackass is grateful for the 
source of important information. Welcome the XXX-XX Excess Capacity 
Barter/Counter Trade & Commodity Exchange, whose formal name is withheld. That 
is a mouthful, and its punch matches its lengthy name. The XXX-XX is to be a 
global non-monetary marketplace with independent settlement outside the 
currency world, and therefore beyond the reach of the bank nazis. As a preface, 
catch some feedback after the posted July reports that introduced more detail 
on the barter exchange concept coming to fruition, certain to undermine the 
USDollar at the grassroots level. A disruption to the current global trade 
system is vividly clear. The note came in the days after the reports were 
posted, from one fretful player. It read, "Jim, subscribers to your July Hat 
Trick Letter are part of very powerful groups in the US and elsewhere. They 
agree with your assessments and you scared the **** out of them with the 
mentioning of the barter platform and the new alignment. Especially Americans 
are already facing the problem of being shunned in their international business 
transactions and are eager to find a way 'to earn their way back in' as junior 
participants. This is an interesting, but not unexpected, development."

 

   The XXX-XX will be launched in Europe this autumn, and will contain a 
minimal monetary component. Its structure will contain a 10% monetary 
foundation. The system will permit producers and buyers to be matched up, where 
both are vetted and approved. Excess capacity can be converted to working 
capital by reciprocal trade, by means of efficient standardized systems that 
reduce operating costs and utilization of capacity as proxy for cash. The 
supply network is not connected to the established grid. Participation is open 
for now, but later it will be restricted. Prices are negotiated, with 
settlement and clearing conducted on the platform. Many very knowledgeable and 
experienced people are designing, planning, and building the exchange, which 
contain complicated support systems. Producers are paid upon delivery in source 
currency to source procurement. Participants to the exchange will encourage 
their business partners to join the platform, either by relationship trust or 
by efficiency motive. Super secure servers will control the transactions 
expected to be in the tens of billion$ by the end of the first year. The 
initial XXX-XX platform equity is €1 billion, or more precisely an equivalent 
one billion euros in GOLD.

 

   The liquid unit of exchange is to be called the Non-Monetary Unit (NMU). The 
transactions will be conducted on a private internet-based exchange with trades 
completed on the exchange Clearinghouse. The NMU serves as credits for each 
party among members of the exchange. The Clearinghouse controls governance and 
risk management of the NMU, and provides collective backing of the NMU to 
ensure its liquidity. The NMU is a trading unit vehicle for exclusive usage to 
transfer value from products or services among members. The NMU is a standard 
unit of exchange, a non-sovereign private trading unit, with no fixed external 
value. The exchange will offer members consulting services to develop trade 
strategies. Members will be in a position to exploit under-utilized and 
available capacity, goods, services, and commodities that might otherwise 
perish or go unsold.
 

 

 

 

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