Philosophyofmetrics – by JC Collins
In essence, China has been slowly buying up the Federal Reserve for some time now. If you can call it a purchase. Its more of a negotiation over assuming the liabilities of both the Federal Reserve and the U.S. Treasury.
The Federal Reserve is the largest holder of U.S. debt at $2.1 trillion. China is second at $1.3 trillion. Think of it as the United States government doing a debt consolidation of all its treasury bonds because it can no longer pay or service the debt.
China, or the BRICS countries, and/or a consortium of international interests, most likely organized through the I.M.F., will manage the U.S. debt through exchange rate increases and trade tariffs.
The reality for Americans for the next decade or more will be price increases/inflation of 30% to 50%, segmented by industry and region, until such a time that its debt, or a negotiated margin of their debt, is cleared from the books.
The post WW2 boom in the United States was funded by the exportation of the dollars inflation to what is now the emerging markets. Americans lived on the backs of other countries. Now the tables have turned. Or have been turning for many years already. This would explain outsourcing, trade agreements, immigration, favorite nation status, etc..
Why would China and other countries take on the risk of this debt? Simple, it’s economic reset or economic collapse. Its in the worlds interest to re-structure the U.S. debt to save the whole whale from beaching itself.
Rumors are circulating that the U.S. dollar will have a rate for in country use, and a separate international rate. That is because the U.S. treasury and the Federal Reserve are about to be severed from each other. The Treasury will control the in country dollar, and the “international reserve” dollar will be controlled by China and or the I.M.F. consortium of debt holders.
The U.S. in fact defaulted back in October of 2013. This has not been told to the public at large. Why would the congress insinuate that the debt ceiling is now irrelevant? The only way the debt ceiling, or debt limit,(eg. the amount the government can borrow) can become irrelevant is if the U.S. has in fact defaulted and the process of default negotiations are taking place. Think of it as the rest of the world cutting up the credit cards belonging to the United States government.
China has recently purchased the JP Morgan building in Manhattan for $725 million. One could reason that they have in fact purchased all of JP Morgan. And I’m sure it will soon be announced that China has or is in the process of purchasing other Western banks and physical assets. These banks make up the majority owners of the Federal Reserve. (edit: Big call out to Archer for catching my typo and error in the amount which the building was sold.)
The gold reserves of the west have been depleted by China. Some say there is no gold left. This is more physical assets gone from the legers of the Western banks. The system of debt based money creation of the Western world is dead. It’s over. The shift East is in the final stages of completion.
Obama’s so called “pivot east” is less about positioning assets to counter the stirring of the eastern dragon, and more to do with making those military assets easy to confiscate when the terminal day arrives. (edit: not Obama specifically, but the Federal Reserve system and the military it controls. One assumes the rhetorical is understood.)
It will happen over a weekend, as many have already predicted. The televisions will announce the largest deal in financial history between the Federal Reserve and China. They will discuss how all the worlds currencies have been revalued to reflect true production ratios and physical assets. Accounts will be balanced. War criminals will be prosecuted.
This is only a summary post to capture the broad strokes. Keep checking back as I will post a more detailed metric “oriented” essay on the thesis presented here. – JC
6 thoughts on “China To Purchase The Federal Reserve”
Good article, Cathleen… bad news but it has been expected to eventually develop this way.
“The televisions will announce the largest deal in financial history between the Federal Reserve and China.”
Meaning: I’m sure the MSM will say this, as if it’s good news. The MSM just won’t reveal the bottom line: The United States has been purchased by China (BRICS).
“They will discuss how all the worlds currencies have been revalued to reflect true production ratios and physical assets. Accounts will be balanced.”
Meaning: The United States has been devalued to a bottom-feeder. On the China Currency Index we are now lower than Whale sh!t. Our debts to the Federal Reserve and China will be written-off (forgiven) at the expense of our National Sovereignty (which we never had anyway).
“War criminals will be prosecuted.”
I won’t hold my breath waiting for this to happen. BTW: What hypocrites; China calling the leaders of the USA, “war criminals”. It’s absolutely true — but China is not in a position to be throwing stones.
Is it time for me to recite the “Dog and the Whale” story that I told to Mark Shoemaker last night? The only thing that is for certain: We will ALL be equally f#$ked in the end.
I apologize for my lack of restraint.
No problem Intro. I completely understand.
. . .
Then again, maybe (probably) this is all set up from the beginning and China/Russia/etc are simply negotiating there spot on the table. Who gets to ride shotgun etc.
“Then again, maybe (probably) this is all set up from the beginning…”
When you look at this entire scenario as a game or, a rigged chess board, run by the Central Banks — the fact that all wars are planned decades in advance, and that all the National Leaders are in bed together reading off an International play script… then yes, it would be fair to say that this has been set up from the beginning, hweinhard.
I doubt something this huge can be summarized in one article.
None of it really matters as all the banks are owned by the Crown City of London.