Total "Spin City Smoke & Mirrors".
Major Operation was in place to Squeeze Equity
Shorts
and to
Rally Securities market
in order to
SAVE major derivative dealers facing potential
credit worthiness
DOWNGRADES.
by James Sinclair
When the IMF so distorts the truth as to actually
LIE about a $30,000,000,000 international loan,
how can you publicly condemn corporate crooked
bookkeeping and not the IMF as well? The IMF
did not lend to Brazil $30 billion US Dollars as
advertised to markets. The funds that are to be
forwarded to Brazil, in 2002 & 2003 are referred to
as "Museum Funds" in the international lending
circles. These funds gain this title because under
the terms of the loan Brazil cannot use the funds for
any purpose other than as non-fungible deposit to
simply count as a reserve. These funds are not
exchangeable for anything. That means that Brazil
cannot touch the $6 billion they will receive in 2002,
or the $24 billion they will receive in 2003. This is
what might be called in a police sting operation
"Show Money". Yet the media headlines and the
announcement by the IMF would have the equities,
dollar and gold market believe that they had just
laid on Brazil $30 Billions dollars which could be
applied in anyway Brazil wants, most especially the
demands of their short term debt so threatening to
all of South America's half dead economies and
half dead US money center banks appearing to be
alive. A collapse of South America would severely
injure major US money center banks like JPM
already being rocked by other non functioning
loans and quietly by totally insane, immense,
irrational derivative positions.
As the equity market wilted the Federal Reserve
pumped out liquidity in terms of monetary
aggregates at record rates. This grease on the
wheels of the market was falling flat on its face. The
powers that be, seeing this, knowing a derivative
disaster is nearing and seeing the dollar at a
threatening level to US treasuries moved to squeeze
the shorts.
The combination of the use of options and futures
on equity indices and certain over shorted Dow
Jones component stocks, and the reported trump
card Spin City Brazil Loan, these "powers"
accomplished a stampede of the short sellers
thereby creating a 675-point rally. Will the general
equities market see through this charade? Maybe,
but I can assure you that it is my opinion that gold
already has. The dollar will soon and thereafter the
equities, except those that are totally bombed out
and oversold (like some techs), will too. |
