The Financial Jigsaw – Issue No. 88

My unpublished (100,000 word) book “The Financial Jigsaw”, is being serialised here weekly in 100 Issues by Peter J Underwood, author

Quote of the Week: The 16th century French astrologer behind a series of prophecies  has been credited with predicting actual events (though many argue it was not really the case). For 2020, the seer gave us “a great earthquake in America, a global economic crisis and an abrupt rise of sea level”. – Nostradamus

 NOTE – If anyone would like a free updated, 3^rd edition, electronic copy of the complete book, I should be pleased to email a free PDF on request to: [email protected].  The book has many footnotes linking to relevant and explanatory Appendices, websites and videos.

 It’s all about markets melt-up and the Fed this week:

Everyone is nervous about the Fed’s continual ‘printing’ or ‘NOT QE4’.  This article explains what may be underneath the Repo meltdown last September about which few have a clue.  First it was Deutsch Bank in trouble, now it might be Hedge Funds: 

“And there you have it: while the September repo crisis was fundamentally represented by the Fed as one of insufficient reserves, and the resultant QE4 was painted by Powell merely as an exercise in “reserve management” the real reason why the Fed stepped in so decisively was to prevent a cascading sequence of hedge fund failures that would have not only sent the market crashing as funds were forced to liquidate all positions once leverage as high as 10x (see chart above) was yanked, but would culminate in the failure of one or more clearinghouses. [This] is also why now that the Fed has stepped in, and backstopped this weakest link, stocks keep hitting new all-time highs:”

https://www.zerohedge.com/markets/944-trillion-reasons-why-fed-quietly-bailing-out-hedge-funds

AND Sven is never described as a Doomer – just a sound analysist: “I submit investors, drunk at the latest Fed party, are walking a very tight rope. Who’s the designated driver once the party ends?” https://northmantrader.com/2020/01/19/the-tight-rope-market/

 This week we are moving through the Appendices starting with Appendix III.  Here we see the secret internal reports that have been released after decades in the can.  It is a condemnation of the treachery of the establishment, politicians and government hidden in plain sight during the run up to UK joining the EEC in the early seventies. If they can lie and obfuscate at this level then the Deep State is alive and well and living in London.  This video is revealing:

https://www.youtube.com/watch?v=np_ylvc8Zj8

 Here is the link to last week: Issue 87

 Now that Brexit is certain on 31^st January 2020, I will continue to provide weekly updates as events progress:

 Brexit Update – 24^th January 2020

The Brexit deadline remains 31^st January 2020 and Parliament has agreed the new exit plan (WAB): https://www.bbc.co.uk/news/uk-politics-50125338 – This bill will progress through several readings in Parliament and the House of Lords before becoming law at the end of the month.  

You may follow a daily run-down on the current situation from my friend, Dr Richard North, as Brexit progresses:  http://eureferendum.com/   I have said before, Brexit is a process, not an event.

In particular, she [IMF] singled out the UK for criticism: “In the UK, for example, the top 10% now control nearly as much wealth as the bottom 50%. This situation is mirrored across much of the OECD (Organisation for Economic Co-operation and Development), where income and wealth inequality have reached, or are near, record highs.”

https://www.zerohedge.com/geopolitical/imf-chief-warns-global-economy-faces-global-depression            

AND “Consumers in the UK, generally a hardy bunch when it comes to borrowing and shopping, were not in a shopping mood before the holidays. Retail sales in December at non-food brick-and-mortar stores – ranging from specialty stores to department stores – fell 1.6% compared to December last year, seasonally adjusted, according to the UK’s Office for National Statistics (ONS). The less volatile three-month moving average fell 1.1% year-over-year, the biggest decline since September 2009, when consumers were trying to clamber out of the Financial Crisis:”

https://wolfstreet.com/2020/01/18/brick-and-mortar-melts-down-in-the-uk-worst-decline-since-2009-as-big-retailers-collapse/

            Not everyone’s bag, but this article on the new agricultural strategy for UK after Brexit is a breath of fresh air (forgive pun). This is heartening to say the least:

UK Agriculture after Brexit Report 2020

 Parliament is now at work this week.  Details of Parliament’s deliberations can be found here:

https://www.parliament.uk/business/publications/business-papers/commons/votes-and-proceedings/#session=35&year=2020&month=0&day=16

 UK is definitely leaving EUROPE so I will comment on relevant EU – UK events:

The EU banks are suffering due to the crazy ECB policy of NIRP(Negative interest rate policy).  ZeroHedge has a useful article explaining the pain:

“UBS joins other European bank giants such as Credit Suisse and Deutsche Bank in dialling back its ambitions in an era of negative rates, investor caution and escalating trade tensions. Last month the largest German bank warned that its mid-term profitability goal now appears to be “more ambitious,” and it will rely more on volatile investment banking to reach its revenue target; it also slashed banker bonuses by up to 30%, while Italy’s UniCredit SpA is cutting 8,000 jobs as part of its new multi-year plan to boost returns in the face of limited growth prospects.”

https://www.zerohedge.com/markets/ubs-tumbles-after-biggest-swiss-bank-misses-key-targets-investors-pull-money

            AND the BBC still refuses to report the French disruptions and anger which might be coming to a country near you!

“The current ongoing social unrest in France appears to pit a majority of working people against President Emmanuel Macron. But since Macron is merely a technocratic tool of global financial governance, the conflict is essentially an uprising against policies that put the avaricious demands of [the elite and] financial markets ahead of the needs of the people. This basic conflict is at the root of the weekly demonstrations of Yellow Vest protesters who have been demonstrating every Saturday for well over a year, despite brutal police repression”

https://www.unz.com/article/french-popular-uprising-revolution-or-frozen-conflict/

            How will Europe handle the 21^st century? “Much has changed since the 1950s. Today, we Europeans are only gradually beginning to understand that we must adapt to the geopolitical realities of the twenty-first century. The Atlantic era is giving way to the Pacific era. Europeans must harbour no illusions that all will turn out well on its own. Now is the time to muster the courage and the will to take responsibility for our strategic interests.

https://www.project-syndicate.org/commentary/european-union-facing-five-global-challenges-by-sigmar-gabriel-and-michael-huther-2020-01

The 3^rd edition of The Financial Jigsaw issued recently includes a Preface, Epilogue and Appendices which I will publish here in advance.   Next come the Appendices starting with Appendix III

 APPENDIX 111

 Source:

http://www.theeuroprobe.org/2017-040-the-1971-fco-301048-heath-knew-it-was-treason/

2017 – 040 The 1971 FCO 30/1048: Heath knew it was treason

This classified government document dated April 1971 remained secret until it was released under the 30 year rule. It proves Heath’s government knew the 1972 EEC Treaty would lead to the loss of sovereignty, and was therefore treason. They had a stunningly accurate picture of the EU, which never was the EEC (an Economic Community), expecting Britain to be abolished after the turn of the century.

The authors, all civil servants or ministers, are very pro EU, their intent is clearly to conceal the loss of sovereignty. But they understood perfectly it would all be abolished.

In public Heath’s government all lied the treaty would not affect our sovereignty.  This includes Douglas Hurd, still an active senior Conservative, who is also both a liar and a traitor, a point we put to him at the Conservative Conference in Blackpool. He assured us his connections in the legal profession would ensure he was never convicted.

Here are just a few of the damning sentences:

Parliament controlled

11. Membership of the Communities will involve us in extensive limitations upon our freedom of action. For the first time, Parliament is binding its successors.

Increasing loss of sovereignty

The loss of external sovereignty will however increase as the Community develops, according to the intention of the preamble to the Treaty of Rome “to establish the foundations of an ever closer union among the European peoples “.

Small threats to sovereignty, like Burgess, Blunt and Maclean’s selling secrets to the Russians, attract 30 year jail sentences. The penalty for actually loosing even small parts of it until 1998 was “to hang by the neck until dead.”  King Charles 1st was executed for treason that was, by comparison, relatively minor.  Lord Haw Haw (“Germany Calling” – William Joyce) was hanged for treason on 3^rd January 1946. His efforts on behalf of Germany were tiny by comparison with Edward Heath’s.

Our law subservient

• (ii) The power of the European Court to consider the extent to which a UK statute is compatible with Community Law will indirectly involve an innovation for us, as the European Court’s decisions will be binding on our courts which might then have to rule on the validity or applicability of the United Kingdom statute.

The writ of a foreign power is not allowed under the British Constitution, which Heath was breaking.

Predicting monetary and military union

18…..but it will be in the British interest after accession to encourage the development of the Community toward an effectively harmonised economic, fiscal and monetary system and a fairly closely coordinated and consistent foreign and defence policy.  If it came to do so then essential aspects of sovereignty both internal and external would indeed increasingly be transferred to the Community itself.

No withdrawal, sovereignty diminished

22…Even with the most dramatic development of the Community the major member states can hardly lose the “last resort” ability to withdraw in much less than three decades.  The Community’s development could produce before then a period in which the political practicability of withdrawal was doubtful.    If the point should ever be reached at which inability to renounce the Treaty (and with it the degeneration of the national institutions which could opt for such a policy) was clear, then sovereignty, external, parliamentary and practical would indeed be diminished.

 Disinformation

After entry there would be a major responsibility on HMG and on all political parties not to exacerbate public concern by attributing unpopular measures or unfavourable economic developments to the remote and unmanageable workings of the Community.

 Transfer of the Executive

24 (ii) The transfer of major executive responsibilities to the bureaucratic Commission in Brussels will exacerbate popular feeling of alienation from government.

Erosion of sovereignty

24 (v) …The more the Community is developed … the more Parliamentary sovereignty will be eroded. …The right … to withdraw will remain for a very considerable time. …The sovereignty of the State will surely remain unchallenged for this century at least.

The EU Bureaucracy will rule

25. The impact of entry upon sovereignty is closely related to the blurring of distinctions between domestic political and foreign affairs, to the greater political responsibility of the bureaucracy of the Community and the lack of effective democratic control.

[Clearly the British public were lied to and encouraged to vote for something which in fact was very different to that which was being presented at the time.  It is further very clear that in order for Britain to retain its sovereignty the Brexit vote had to pass and Article 50 be implemented in full.]

 To be continued next Saturday

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Author: Austrian Peter

Peter J. Underwood is a retired international accountant and qualified humanistic counsellor living in Bruton, UK, with his wife, Yvonne. He pursued a career as an entrepreneur and business consultant, having founded several successful businesses in the UK and South Africa His latest Substack blog describes the African concept of Ubuntu - a system of localised community support using a gift economy model. View all posts by Austrian Peter