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SECOND REPUBLIC is, without, doubt, An Idea whose Time has Come…

What triggered social chaos in Argentina was the attempt by president De la Rúa to implement the grossly unjust austerity measures imposed by the IMF that required, as usual, utmost sacrifice from the people – more taxes, less social spending, “balanced budgets”, zero deficit spending, amongst other anti-social measures – which led to a fall of almost 40% in Argentina’s GDP.

Half of all Argentinians fell below the poverty line (most were never to make it back to the traditional Argentina middle class), private banks were allowed to legally retain everybody’s savings, US dollar deposits were arbitrarily changed into Pesos at whatever rate of exchange the government and bankers decided (the dollar was devalued 300% from one peso to the dollar, to 4 pesos the dollar in just weeks) and yet…. Not one bank fell ! ! !    Indeed, since then they’re all back in “business as usual”, however the poor and impoverished are today totally out of business…

Throughout 25 years of successive caretaker governments in Argentina, the IMF-led Global Banking Cartel artificially generated a basically illegal – or at best, illegitimate – Sovereign Debt that grew so huge, that it ended up collapsing the entire financial and economic system.  That was no coincidence.  It was part of a highly complex model, engineered to control entire countries, through a cycle having sequential stages and identifiable parts that has one basic overriding goal: when the finance economy is fueled to run in an artificial “growth mode”, the bulk of all profits are privatized into the hands of their “friends”, managers and operators.  However, when the whole scheme – like all Ponzi schemes – reaches its climax and total collapse is at hand, they revert the process and then socialize all losses. (This is more fully explained in my video “Global Financial Collapse”, see links below).

That’s what Mr. Cavallo – a Rockefeller protégé – achieved, ensuring that the Argentine people bore all the losses, whilst the international banksters took all the profits.  The mainstream media – both global and local – willingly obliged; The New York Times went so far as to suggest that the entire Patagonian region (i.e., the 5 southern provinces of Argentina accounting for 35% of Argentina’s territory and having immeasurable energy, mining, foodstuff, water resource wealth), should secede from the rest of the country as a way of “resolving our foreign debt woes…”

Now, that was Argentina 2001/2002 but, isn’t that also the case when today’s US taxpayer bails out Goldman Sachs, AIG, CitiCorp and GM whilst losing his house, pension and job?   Isn’t that what is happening to Greece today?  And Iceland?  And the UK?  And Ireland?  And – anytime soon – Spain? Portugal? Italy…?

In Argentina, our people ended up getting used to being much poorer, so when “normal” times returned, the Goldman Sachs and Citicorp controlled local media were able to ensure that a new puppet regime subservient to the money interests should come to power: i.e., the husband and wife pro-banking mafia team of Néstor and Cristina Kirchner…   And the merry-go-round keeps turning and turning, whilst the Argentine people keep paying and paying…

Today, we look at Greece and see the same tell-tale signs: the IMF imposing strict austerity measures as a condition for the banks to lend more money to them (as if a country collapsing under the burden of debt can overcome that by getting into even more debt!!), the mainstream media speaking vociferously on the need for “Greece to do things correctly and responsibly” (as if the US FED, the Bank of England, Goldman Sachs and the US Treasury, Greenspan, Bernanke, Paulson, Brown, Geithner, Blankfein, Greenberg were examples of responsible accountability), local caretaker governments doing all they can on behalf of banking interests (George Papandreou is a regular at the Bilderberg and Trilateral Commission meetings, as was Fernando de la Rúa, a founding member of the local chapter of the Council on Foreign Relations in Argentina called CARI), major banks such as Goldman Sachs trying to collect their pound of flesh in the midst of all the turmoil and hardship; all of this against a backdrop of desperate citizens taking to the streets to express what is obvious to all: that international bankers and local caretaker government form a complex association of thieves and robbers.

The inevitable then occurs: the Government sends the police out to the streets to protect the bankers, themselves and New World Order power elite interests… Then violence flares up, people get hurt and die….  The poor (police) battle against the poor (population), whilst the rich look on from a safe distance with a chuckle…

Make no mistake: this is a Global Model.

Make no mistake: there is NO democracy, not even in Athens, its birthplace.

What we people suffer the world over – be it in Greece, or Argentina, or Brazil, or Indonesia, or Spain, or Iceland, or the US or the UK – is a mechanical mass vote-counting system, that is totally dependent on huge quantities of money, necessary to finance costly political campaigns, purchase radio, TV and press coverage, pay for grotesque political party structures, journalists, analysts, and of course to pay for the well-marketed candidates themselves: that vast array of decrepit stooges we read about in the papers every day: Bush, Blair, Papandreou, Obama, Clinton, Menem, Kirchner, Lula, Uribe, Sarkozy, Rodriguez Zapatero, Merkel…

What we have is a “democracy” that is totally subservient to money, however we need to understand that money is NOT democratic (nor should it be).   Money is controlled by the mega-Banking structure that uses the IMF, World Bank, FED, BIS, ECB as its global regulating entities, and pays to run the whole “Democracy Show”.    Ergo, we end up having “the best democracy that money can buy”… which is no Democracy at all…

The results of this could be tragically seen in Argentina, Turkey, Brazil, Mexico, Indonesia, yesterday; in Greece, Iceland, the US and the UK, today…

So, who’s next? Spain?, Italy? Portugal?  Will the European Monetary System just blow up to pieces?  A 750 Billion Euro Bail-out will send the recently born (still in diapers) Euro into a tailspin…  Will the Euroipean Monetary Mechanism fall apart?   Will germany be the first to revert to the gold old Deutsch-Mark?

Will the collapsing Euro and the technically hyper-inflated US Dollar (Shhh!  Don’t say that aloud!!) pave the way for a new, essentially private Global Currency to be managed on a planetary scale by the private money cartel of the Goldman Sach’s, HSBC’s, CitCorp’s, Deutsche Bank’s of this world?

Stay tuned… There is much, much more to come…

Adrian Salbuchi

www.asalbuchi.com.ar – arsalbuchi@gmail.com

Watch my “Global Financial Collapse” (filmed April 2009) video on the following links:

Argentina suffered two of devastating terrorist bomb attacks against the Israeli Embassy and AMIA Jewish Mutual Association buildings, in March 1992 and July 1994, respectively. Both attacks took place in Buenos Aires City and show all the traces of False Flags operations.

Especially regarding the AMIA attack, Israel, Zionist organizations and the United States Government have exerted enormous and blatant pressure over the Argentine Government, the Press, the local Courts and others, so that the Truth surrounding this attack should be covered. False evidence was planted, powerful Psychological Operations were set up, and Argentina’s authorities were coaxed into falsely accusing Iran, Hezbollah and Syria for the attack. And indeed, they have succeeded marvellously…!

And yet, the same as with 9/11, the 7th July 2005 attacks in London, and other False Flag events, many details just don’t fit, which forces the real perpetrators to violently impose their views on the world and shove their Myths down our throats…

Adrian Salbuchi from the Argentine Second Republic Movement (MSRA) prepared a three part video in English so that global public opinion should become aware of these two shameful events that remain unsolved until today. They form part of a behaviour pattern of embedded operatives promoting the Zionist Agenda in all parts of the world, perversely and violently

All Journeys begin with the First Step. For us, that First Step is to become AWARE that the One-Worldlers promoting WORLD GOVERNMENT are the Enemies of all of us: they are theEnemies of Mankind. As such they must be fought, neutralized and overcome….

IT IS IMPORTANT FOR ALL OF US, THAT YOU PLEASE SHARE THESE VIDIOS WITH FAMILY, FRIENDS, COLLEAGUES, LOCAL MEDIA, YOUR CONGRESSMAN…   THANKS!

The World’s Mastermind: the Hidden Face of Globalization

2) The New World Order: Will It Be World Government?

3) The Global Financial Collapse: Planned Implosion…

IT IS IMPORTANT FOR ALL OF US THAT YOU PLEASE SHARE THESE VIDIOS WITH FAMILY, FRIENDS, COLLEAGUES, LOCAL MEDIA, YOUR CONGRESSMAN… THANKS!

The more things “change”, the more they stay the same
On 20th January, a major part of America’s citizenry celebrated the arrival of Barack Obama as the new president of the United States, with his promise for “Change” and his proposal for “hope instead of fear”. The breaking of racial barriers in the land of the Ku Klux Klan, where until the 50′s and 60′s mixed marriages between blacks and whites were illegal and would land you in jail in Southern states like Alabama, Mississipi, Georgia, Louisiana, South Carolina and Arkansas (and yet hipocracy and ignorance made millions of Americans feel “outraged” at the 1935 Nazi Nuremberg Racial Laws!), mark a turning point in US history symbolized by the reborn spirit of Martin Luther King, Abraham Lincoln and the Kennedy’s.
America’s present joy with its new president is shared by the overwhelming majority of global public opinion, not so much because of the optimism Obama’s arrival inspires, but rather because of the relief that Bush’s and Cheney’s departure gives. Naturally, Obama has an undaunting task before him, but he personally has the support of the better part of his people who seem ready to make great sacrifices to overcome the gigantic economic, financial, banking, military, political, diplomatic and social disasters Obama inherits from the Bush Era.
So far, so good.
However, the problem with Obama is not Obama himself, a mostly unknown and inexperienced American politician. The problem with Obama is the very powerful group of key officers and aides that surround the new president, which one is led to believe were not freely chosen by Obama; rather, they seem to have been imposed upon Obama by the New World Order Power Structure that for many decades wields control over the United States, and without whose complacency, agreement and support Barack Obama would probably have never made it outside of the political borders of his home state of Illinois.
As my wise grand mother used to say “a small sip of the glass, and you’ll immediately know if the wine is good…”. May we therefore give our readers an initial “sip of the glass” which helps to see how the New World Order Power Structures seem to have “filled the glass” from which president Obama has no choice but to drink from. And there are some very worrying indications that, because of this, History may very well end up judging Obama as the American president who led the US to its final twilight – or even some worse Götterdämmerung… This is all in line with our previous analyses on US and world affairs, and the on-going (and daily worsening) global financial collapse (See the English language section in www.asalbuchi.com.ar)
In fact, we can see that the New World Order (NWO) power structure is filling Obama’s glass to the brim with three main types of Real Politik power players, who all report to the NWO:
- Militant Zionists (both Jew and Gentile);
- Members of powerful “Think Tanks” (notably, the CFR – Council on Foreign Relations, the Trilateral Commission, Bilderberg Conference, and the more recently founded Center for American Progress); and
- Former Bill Clinton Administration key officers (notably, in the Economic and Financial areas, because these Obama government officers are the same people – the veritable architects – of the irresponsible financial deregulation of the 90′s under the Clinton Administrations that led to the present systemic global financial collapse in the first place.

- Axelrod, David – Senior Adviser to President Obama – Political Consultant – journalist for The Chicago Tribune – Militant Zionist
- Barnes, Melody – White Hourse Internal Policy Council – Center for American Progress
- Biden, Joseph Vice-President – Senator (D-Del. from 1979 to 2008) – Member of the Senate Judiciary Commission – Former chairman of the powerful Senate Foreign Relations Committee – Biden is a Militant Zionist, who told Rabbi Mark S Golun in a TV program on the Israeli Shalom TV network,“I’m a Zionist. You don’t have to be Jewish to be a Zionist”
- Browner, Carol – Energy and Climate Affairs Coordinator; Former director of the Environmental Protection Agency during the Bill Clinton Administration.
- Brzezinski, Zbigniew – Senior Foreign Policy Advisor – Co-founder with David Rockefeller of the Trilateral Commission – Director, CFR and the Trilateral Commission
- Clinton, Hillary Rodham – Secretary of State – Wife of former president Bill Clinton – Former Senator (D- NY)- Militant Zionist – Directly linked to the CFR, Trilateral and Conferencia Bilderberg through her husband
- Craig, Gregory B – Advisor – Former Policy Planning Director at the State Department during the Clinton Administration. Bill Clinton’s personal lawyer
- Daschl, Thomas Andrew – Secretary of Health and Social Services – Former Senator (D-SD) and Majority Leaders . Former director at CitiCorp; Assisted Robert Rubin, (Advisor on Economic Affairs and former Treasury Secretary during the Bill Clinton Administration) – Zionist – Member, CFR and Bilderberg Conference
- Emanuel, Rahm – Chief of Staff – Representative (D-Ill) since 2002 – Militant Zionist; Double-nationality: US and Israeli; Volunteer in the defense of Israel during the First Gulf War (1991 – led by former president George HW Bush against Iraq); Suspected of being an intelligence officer for the Israeli Armed Forces; Director at Freddie Mac; Adviser during the Clinton Administration; linked to Wasserstein Perella bank (Trilateral members); his father Benjamin Emanuel was a guerrilla fighter in the terrorist Irgun Zvai Leumi organization (then led by terrorist Menahem Beguin, later to become Israeli prime minister)
- Froman, Michael BG – Adviser – Operates for Robert Rubin; “helped” Obama choose members of his team; Member, CFR
- Furman, Jason – Advisor; Senior Adviser to Lawrence Summers (Clinton)- London School of Economics
- Gates, Robert M – Secretary of Defense – Republican – Gates was named at the DoD by former president George W Bush in 2006 to replace Donald Rumsfeld, and yet was “confirmed by Obama” – Former director of the CIA under former president George H W Bush (Senior) – Co-chaired foreign policy CFR task force with Zbigniew Brzezinski – Involved in the Iran-Contras Affair under the Reagan-Bush Administration – CFR, Bilderberg
- Geithner Timothy F – Secretary of the Treasury – President since 2003 of the Federal Reserva Bank of New York. Prominent architect of the 2008 Banking Bail-out Plans, together with Bernard Bernanke (FED Governor – CFR), Henry Paulson (former Treasury Secretary – CFR) – Also held office during the Bill Clinton Administration, and was involved in the bail-outs of Mexico, Indonesia, Korea, Brazil, Thailand in the nineties, under then Under-Secretary of the Treausury Lawrence Summers – Introduced to Obama by Robert Rubin and Lawrence Summers – Former Director of Policy Development and Review Dept at the IMF – International Monetary Fund, from 2001 to 2003 – Former director at Kissinger Associates – Member of the Group of Thirty, his mentors include Lawrence Summers and Robert Rubin. Member, CFR, Trilateral, Bilderberg
- Holder, Eric – Attorney General – Holder arranged for Bill Clinton to pardon racketeer Marc Rich when he was Janet Reno’s Deputy Attorney General (Clinton)
- Jones, James LA – Four-Star US Army Officer – National Security Officer (NSA) – Former NATO Forces Commander – Special Envoy to the Middle East for Security Affairs for former president George W Bush – Director at Chevron and Boeing – Zionist – Member of the Institute for International Affairs (founded by Air Force General Brent Scowcroft, former National Security Advisor under George Bush Senior) together with Zbigniew Brzezinski, Bobby Ray Inman (former CIA Director), Henry Kissinger and John Deutch (CIA director under Bill Clinton) – Member, CFR, TC, Bilderberg
- Lippert Mark W – National Security Council Chief of Staff – Zionist – CFR
- Mitchell, George – Special Envoy to the Middle East – Former officer during the Clinton Administration – Member, CFR
- Napolitano, Janet – Secretary of Homeland Security – Former Attorney General for the State of Arizona – Member, CFR, TC
- Orszag, Peter R – Director of the Office of Management and Budget – Member of Lawrence Summers’ team – Clinton economic advisor.
- Panetta, Leon – CIA Director – Former Chief of Staff in the Clinton Administration.
- Pfeiffer, Daniel – Deputy Commerce Director – Spokesman for Al Gore (Clinton) – His wife, Sarah Feinberg, is a Senior Assistant to Rahm Emanuel. Zionist
- Podesta, John – Senior Adviser to Obama – Presidential adviser under the Clinton Administration – In 2003, he founded the Center for American Progress – Zionist
- Power, Samantha – Public Policy Advisor – Wife of Cass Sunstein (director of the Office of Information and Regulatory Affairs)
- Reed, Jack – Senator (D-RI) (CFR)
- Rice, Susan -Permanent Representative (Ambassador) to the United Nations (under Obama ranks as cabinet level post) – Member of the National Security Council during the Bill Clinton Administration – Under-Secretary of State for African Affairs during the Clinton Administration – Member, CFR, Brookings Institution; and Aspen Strategy Group, together with CFR and Trilateral members Richard Armitage, Gral. Brent Scowcroft and Madeleine Albright.
- Richardson, Bill – Secretary of Commerce (finally not confirmed) – Clintonite – Former officer at Kissinger Associates, CFR
- Rubin, Robert – Senior Presidential Advisor – Director at CitiGroup, Former CEO, Goldman Sachs, Founder of the Hamilton Project, former Secretary of the Treasury during the Clinton Administration – Zionist – CFR
- Shinseki, Erick – Four-Star US Army General – Secretary for War Veterans’ Affairs – CFR
- Summers, Lawrence – Chairman, National Economic Council – Former Secretary of the Treasury during the Bill Clinton Administration (1999-2001) – Zionist – Former Economist-in-Chief at the World Bank – Former Dean of Harvard University – Member of Robert Rubin’s team – Member, CFR, Trilateral, Bilderberg, Brookings (director).
- Sunstein, Cass – Director, Office of Information and Regulatory Affairs – Husband of Samantha Power (Advisor on Public Policies)
- Sutphen, Mona – Deputy Chief of Staff – Executive Director, Stonebridge International – Member of the National Security Council (Clinton) – Member, CFR
- Volcker Paul – Chairman of Obama’s Advisory Board on Economic Recovery – Former Governor of the Federal Reserve Bank (1979 to 1987 – during the Carter and Reagan Administrations) – Zionist – Member of the “Group of Thirty” – President of Rothschild Wolfensohn Company, intimately linked to the Rockefeller family – CFR; North American Director of the Trilateral Commission; Bilderberger.

Vice-President Joe Biden’s most strange “prophecy”
A short time before last November’s presidential elections, then vice-presidential candidate Joe Biden said that he “guaranteed” that if Obama won the elections, he would be tested by some major international crisis during the first six months of his presidency which would require him getting the support of those who voted for him, as he will have to make “very tough and unpopular decisions”.
The US News Network ABC News reported on 20th October 2008, that during a Seattle fundraiser, Biden said: “Mark my words: It will not be six months before the world tests Barack Obama like they did John Kennedy. The world is looking. We’re about to elect a brilliant 47-year-old senator president of the United States of America. Remember I said it standing here if you don’t remember anything else I said. Watch, we’re gonna have an international crisis, a generated crisis, to test the mettle of this guy.” “I can give you at least four or five scenarios from where it might originate,” Biden said mentioning the Middle East and Russia as possibilities. “And he’s gonna need help. And the kind of help he’s gonna need is, he’s gonna need you – not financially to help him – we’re gonna need you to use your influence, your influence within the community, to stand with him. Because it’s not gonna be apparent initially, it’s not gonna be apparent that we’re right.”. See http://blogs.abcnews.com/politicalradar/2008/10/biden-to-suppor.html.

Finally, some questions:
- Now, what exactly was now Vice-President of the United States Joe Biden talking about back in October?
- What information did he have/does he have, that allows him to “predict” – even to promise – so forcefully that such a terrible crisis will arise within the first six months of Obama’s Administration?
- Is there another 911 in the planning or… even something much worse?
- Will a nuclear artefact be detonated in some “expendable” US city (e.g., maybe Phoenix in far-off and fall-out safe Arizona, or perhaps in Portland on Oregon’s Pacific Coast), that will be blamed on Irán, or Al-Qaeda, or Syria, or Hamas, or Hezbollah, or any other real or imaginary foe, as an excuse for a vastly escalated, all-out “Global War on Terrorism”?
- And if such a crisis and attack can be “predicted” by the Joe Biden’s, is it because key Insiders know full well that this type of events are actually False-Flag Operations carefully planned, financed, protected and carried out by deeply embedded layers of powerful Intelligence, Operational and “Dirt Tricks” operatives loyal, not to the American National Interest, but to the NWO power structures?

Be it as it may,. we had all better be very, very alert in the weeks and months to come.

THE INEVITABLE FINALLY OCCURRED, SO…

       

Go Get Your Dollars Out Now!  FAST!!!

    BY ADRIAN SALBUCHI

 

The events of the last two weeks have clearly revealed that the global financial, monetary and banking system imposed on the world by the power structures promoting “globalization” is fundamentally flawed, unviable and immoral in its effects upon the most all of Mankind.  After allowing a small cabal of shady characters to illegitimately accumulate vast amounts of wealth and power over markets, corporations, industries, media, armed forces and entire nations, like the World Trade Center towers on 9/11, this entire System is now in free-fall, collapsing into itself in one massive implosion.

This loathsome and unjust Global Power System was designed and implemented over the past seven decades by the geopolitical and geoeconomic strategic planners serving the New World Order power structures, most notably its network of discrete, low-profile but highly powerful private think tanks, such as the Council on Foreign Relations (CFR, founded in New York in 1919), The Trilateral Commission (founded in 1973), The Bilderberg Conference (formed in Holland in 1954), and others like the Cato Institute, American Enterprise Institute (AEI), and the notorious Neo-con Project for a New American Century (PNAC)  (1).  

Considering the enormous complexity of the process that is taking place right now; the vast amounts of information we are bombarded with every minute of the day, and the apparent difficulty in foreseeing just how this global crisis will finally be resolved, we would summarize certain important aspects and key data which we believe will help us put together this veritable jig-saw puzzle, so that we may begin to fathom what the true face of this horrendous creature euphemistically called “globalization”, is really like.   

As Argentine citizens, we have a huge advantage over other peoples including US citizens when it comes to understanding and coping with this kind of crisis.  I say this because in our own lifetimes we have suffered in Argentina all of what is now happening globally – albeit on a much smaller scale in our case.  We’ve seen this movie…  We’ve been there, and done that…   We’ve been pushed and dragged through the entire hysterical hocus-pocus of inflation, hyperinflation, systemic banking collapses, currency changes, Debt Bond Swaps, Mega-Debt Bond Swaps, financial “armouring”, banking holidays, freezing of bank accounts, etc., etc...  And we have also suffered the end-results: bank bail-outs paid for by taxpayers (or through inflation, or through the confiscation of savings), disappearance of pension funds, destruction of job posts and overall impoverishment of the population.

So, take a clue from our thirty years’ experience in “financial meltdowns”:  GO GET YOUR DOLLARS OUT FROM YOUR BANK NOW, AND DO IT FAST!!!!   

A Flawed Model

• Finance versus Economics – The financial system (i.e., the basically virtual, unreal and parasitic wonderworld of banking), was designed to function in a way increasingly contrary to the interests of the Economy (i.e., the real world of concrete work, labour and production/services).  In recent decades, Finance and the Economy have increasingly parted paths, ceasing to maintain the essential balance and equilibrium that is necessary for ensuring healthy economic activity centered on the Common Good of the People.  In fact, Finance and Economy have today become all but total enemies.  This can be seen, for example, by the fact that the present Global Economic and Financial System rests almost completely on the concept of DEBT, which is another way of saying that the Real Economy is always controlled by, and subservient to, the interests, whims and crises of Virtual Finance.
• The Debt System – The Doctrine (or, should I say, Dogma) of Extreme Capitalism has imposed the concept of DEBT as the preferred way to move the economy.  In most countries (Argentina, for example) this means that there is no proper use of the local National Currency by the State to generate credit in a controlled and non-Interest bearing manner.  This is the best way of fueling economic expansion for specific social, defense, infrastructure, and technological developments, always focusing on the Common Good and prioritizing the National Interest.  One of Extreme Capitalism’s key dogmas says that central banks controlling the national currency must be totally “independent” of Government.  However, since all such institutions must finally respond to somebody somewhere, we thus discover that nowadays central banks are subordinated and subservient not to the State (i.e., the People), but rather to the private banking superstructure, both local and global, which naturally leaves the whole concept of the Common Good and National Interest almost totally aside.  This is so in Argentina as in other countries, however in the case of the United States this is particularly extreme because its central bank – the Federal Reserve Bank (FED) - is a private institution, with almost 97% of its unique shareholding structure in the hands of the private banking infrastructure itself, both domestic (in a first instance) as well as global (if we look further afield).  Once the private banking superstructure achieves control of the local central bank, it is then in a position to impose chronic and often drastic under-monetization of the Economy.  This means that there is never enough money to satisfy the true needs of the Real Economy.  That’s when the private banks come on stage offering to close that artificially generated ”gap”, becoming the prime credit generators of the economy, for which they charge interest – often at usury rates  – for  loans made to individuals, companies and even the State itself.  We should also understand that the key source of inflation in all economies lies not so much in monetary expansion by the State (if this is kept in sync with true economic growth), but rather most inflation in any economy is fueled by interest bearing loans made by the private banking sector.  At a Geoeconomic level (2), this has also served to generate massive public debt in Third World countries like Argentina,. fueled by rampant corruption amongst the individuals involved in the lending and borrowing process, and supported by Governments that never seem to understand how to use the sovereign functions inherent in their power to issue money to fund and promote balanced economic growth.  Instead, these countries adopt IMF-designed neoliberal policies on key matters spanning from central banking functions, fiscal policies, debt, rates of interest and exchange, to banking regulations and other key factors, that have all been twisted out of shape so that they run counter to the country’s National Interest. 
• Fractional Reserve Banking System - This is a universaly applicable banking concept in today’s global marketplace, that allows the private banking infrastructure to generate “Virtual Money” literally out of thin air (i.e., electronic credit lines, loans and the like) in a proportion of 6, 10, 30 or 50 times more than the actual Real Money they hold in their bank vaults.  To add insult to injury, the banks then charge you hefty interest rates for the “money” they created out of nothing and ”lent” to you, whilst they require collateral consisting of real stuff like your home, your car, or your company.    The proportion between the number of Dollars or pesos in their vaults and the amount of credit they can generate, is determined by the local central bank (remember: controlled by the private banks themselves), is called minimum monetary reserves under the Fractional Reserve Banking System and reflects a statistical estimate of what portion of deposit holders will normally visit the bank to withdraw their money in cash.   The problem is that the concept of “normal” is basically a group or collective psychological factor, intimately linked to the perception that deposit-holders have regarding the financial system in general, and individual banks in particular.  When “abnormal” times come – and boy have they come today!! – then people panic and run to their banks all at the same time, demanding to withdraw their money, not as electronic blips on the ATM machine, but as hard cash.   That was when we all discovered that the amount of Real Money in each bank’s vaults was not suffient to pay all depositors, except for a handful (normally privileged insiders who “saw it all coming”).  For the rest: of us, there was nothing left and the banking system collapsed.  That’s when in the US for example, and barring any taxpayer funded bail-outs, the Federal Deposit Insurance Corporation (FDIC) indemnifies up to 100.000 dollars in the US or, in Argentina, that’s when we all realized that we had all been totally robbed, and took to the streets to uselessly bang our pots and pans on the banks’ monumental iron-clad gates, conveniently shuttered the night before… All thanks to the inherently fraudulent Fractional Reserve Banking System.  This is what happened in Argentina in 2001 and this is what is unfolding right now in the US. 
• Investment Banking – In the US, Commercial or Main Street banks like Bank of America, JPMorganChase or CitiGroup are allowed to generate 8 to 10 “Virtual” – i.e., fake – Dollars for every Real Buck they have in their vaults.  This scheme is controlled by the authorities, i.e., the FED and the Comptroller of the Currency.  However, so called “investment banks” in the US and elsewhere, do not need to comply with any such requirements; they are the ones making Mega-Loans to Corporations, the US Government and foreign Governments like Argentina’s, which is why they are far less controlled and regulated  This means that for every Real Dollar they hold, these investment bankers can create 26 ”virtual” Dollars (Goldman Sachs), 30 “virtual” Dollars (Morgan Stanley), more than 60 (Merrill Lynch, just before they went bust), or more than 100 in the cases of Bear Stearns and Lehman Brothers. (3) 
• Channeling and Transference System - Another key factor lies in the way that the global financial system has structured automatic channels to bring in profits and transfer away all losses throughout the entire system.  This has the effect that in times of great growth and gigantic profits (i.e., when the whole system grows), it is stable and allows creating many trillions of dollars out of thin air).  That’s when profits are conveniently privatized, i.e., they naturally flow into the pockets of shareholders, speculators, directors, CEO’s, top management, “investors” and other key stakeholders in financial institutions and Corporate infrastructure.  But when the system suddenly contracts, and tail-spins out of control as is happening now, then mechanisms are conveniently activated to socialize all losses through State-funded bailouts, special loans, FED-funded acquisitions via specific “vehicles” like JPMorgan, Citicorp and Bank of America, so that it is the domestic and foreign populations as a whole who end up paying the bill, through such phenomenae as inflation, hyperinflation (oh, we know a lot about that in Argentina!!), banking collapses, tax hikes, debt defaults, nationalizations, etc). 
• The 4 Pillars of the Extreme Capitalist Model – In short the key factors described above, in the long-term all function together in a coordinated, consistent and synchronized manner, which means that, even if in the short- and medium-terms there are spates of high profits where money is sloshed around big time, in the long-term the whole system just doesn’t add up.  That’s when you have periodic meltdowns like today’s.  Usually, they are explained away by well-paid economic gurus writing brainy explanations in The Wall Street Journal, Financial Times or New York Times, who tell us that this is all just part of “the economic cycle”.  For the most part, they can isolate sections of those downturns and localize them, so that they only affect a couple of emerging markets…  Like Argentina in 2001, or Brasil in 1999, or Mexico in 1997. In short, these four pillars are:
  1. Programmed Monetary Insufficiency - Artificially generated by an “independent” central bank, controlled by the local and global private banking institutions superstructure; 
  2. Private banking based on Fractional Reserves - As a system, this allows banks to create money out of thin air, charging interest for it – often at usury rates -, and generating huge profits for “investors” and creditors;
  3. Debt - This is the key concept that “fuels” private and public economies replacing the far more economically sound concept of reinvesting company profits and promoting a savings culture.  Those who benefit from the unnecessary creation of debt need to promote and instigate among the public at large in all countries, fericiously undisciplined consumerism and greed, which goes hand in hand with  total rejection of the very concept of saving and preparing for a rainy day. (4)
  4. Privatize Profits /Socialize Losses – As a channelling and transference scheme for the various stages of the recurrent “cycles”, so that when they reach the inexorable stage where collapse is nunavoidable, there is always a way of making the population at large pay the bill.

Key Data and Concepts

A brief summary of the key events of this year leading up to the present terminal crisis of the global financial system can be very enlightening and revealing:

• January 2008: Countrywide Financial bank collapses (assets u$s 172 billion)
• March 2008: Investment bank Bear Stearns (assets for u$s 399 billion) collapses and is acquired by JPMorgan Chase through a FED-funded credit for u$s 30 billion.  On March 7, the FED offers up to u$s 200 billion in 28-day loans to banks and large financial institutions.  On March 11, the FED offers investment banks up to u$s 200 billion in Treasury Securities in exchange for mortgage-backed securities.  On March 21st, the European Central Bank offered up to u$s 24 billion in loans to help banks shore up balance sheets.  The Bank of England in turn offers up to u$s 10 billion in loans.
• April 2008: Commercial bank IndyMac Bancorp collapses (assets for u$s 32.3 billion).  German bank Düsseldorfer Hypotheken Bank (assets for u$s 42.5 billion) collapses. 
• July 2008: UK bank Alliance & Leicester (assets for u$s 153.40 billion) collapses.  Danish bank Roskilde Bank (assets for u$s 7.9 billion) collapses.
• 7 September 2008: The US’s two largest mortgage agencies – Freddie Mac (assetsts for u$s 879 billion) and Fannie Mae (assets for u$s 885.9 billion) are taken over by the FED, at a direct cost of u$s 200 billion, and the US Governement now owns their u$s 5.4 trillion combined debt 
• 15 September 2008: The US’s fourth largest investment bank, Lehman Brothers (assets for u$s 966.2 billion) collapses.  At the same time, investment bank Merrill Lynch (assets for u$s 639.4 billion) is bailed out by Bank of America at a cost of u$s 50 billion (unofficially funded by the FED, considering Bank of America did not have funds for such an acquisition)
• 16 September 2008: The central banks of the US, European Union UK, Japan, Switzerland and Canada set up a u$s 180 billion emergecy currency swap fund
• 17 September 2008: The largest insurance company in the US and the world, American International Group (AIG) (assets for u$s 1.050 trillion), is nationalized 80% by the FED at a cost of u$s 85 billion.  The decision to salvage this insurance company (a decision that should have been taken by State insurance commissioners, not the FED) lies in the fact that it would have dragged down key banks like Goldman Sachs. This explains why Goldman’s CEO Lloyd C. Blankfein, was the only Wall Street banker invited to participate in the last minute bail-out talks by FED governor Bernard B. Bernanke and Treasury Secretary Henry Paulson.  Notably, before becoming George W Bush’s Treasury Secretary in June 2006, Paulson was CEO of Goldman Sachs, at which time he was replaced by Blankfein.
• 19 September 2008: Henry Paulson, Bernard Shalom Bernanke and Christopher Cox (chairman of the Securities & Exchange Commission – SEC) submitted to Congress an urgent 3-page Bail-out Plan (similar in style to Argentina’s “financial armouring” of December 2000 which paved the way for 2001′s total financial meltdown), to the tune of u$s 700 billion which is supposed to stop further banking and financial failures in the US and worldwide.  The urgency of the matter could be read in their panicky faces nut the bill crashed in the House of Rerpesentative which rejected it ob 22-Sept-08.  It has since then grown to a 450-page dossier, now approved by the Senate and being resubmitted to the House.  Paulson and Bernanke seek “superpowers” from Congress, similar to the ones that former economy minister Domingo Cavallo wrenched from Argentina’s Congress in 2001, which led to total collapse.  In various declarations, president George W Bush stressed time and again the dire situation of this “national emergency”.  When asked how the amount of u$s 700 billion was arrived at, Bernanke replied that it represents 5% (!!!) of mortgages that have become non-performing.  Independent analysts, however, reckon that this 5% is insufficient to cover all bail-outs and that we need to look at 10, 15 or 20 percent of non-performing mortgages, which would turn bail-out figures into unfathomable amounts.  Rejection of the bail-out plan on “Bloody Monday” led to a collapse of the Dow Jones Industrial Index by 778 points (more than 7%) and a 16% fall for financial institutions.  Not surprisingly, in their 21st September edition the London newspaper ”The Daily Telegraph” pointed out that we may be edging towards a US Government default on its entire u$s 13.5 trillion debt.   
• The two remaining investment banks still considered to be “healthy” – ie}.e., prestigious Goldman Sachs and Morgan Stanley – decided to voluntarily become commercial banks, and thus accept greater regulatory scrutiny.  This means they will need to very quickly and orderly reduce their loan portfolios which they overly expanded through fractional lending, as described above.  Meanwhile and as a transitory emergency measure, financier Warren Buffet took a u$s 5 billion stake in Goldman Sachs to help it become “more healthy”, a clear indication of just how critical the situation is.
• 22 September 2008: After a strange period of silence regarding its situation as a major bank, CitiGroup finally appeared on the scene helping to engineer two bank bail-outs: Washington Mutual Savings & Loan (the largest thrift in the US with assets for u$s 309.7 billion), and Wachovia Bank (assets for u$s 812.4 billion), although Wachovia is having second thoughts and may strike a deal with Wells Fargo.. 
• Septiembre 22nd to 30th: The contagion crosses the Atlantic sending Europe into a crisis with a series of domino-like bank collapses:
  • Fortis (Franch-Belgium banking and insurance consortium with asssets for u$s 1.533 billion is bailed out by the governments of Belgium, The Netherlands and Luxembourg
  • Bradford & Bigley (major UK Savings & Loans association is rescued by the Spanish Santander Group at a cost of u$s 30 billion,  assets: u$s 104 billion),
  • Hypo Real Estate AG (a German bank bailed out by the government at a cost of u$s 50 billion – with assets for u$s 622.2 billion),
  • Dexia (another Franco-Belgian bank rescued by the respective governments – Price tag. u$s 9.2 billion – assets u$s 913 billion), 
  • Glitnir (a major Islandic bank nationalized 75% by the government at a cost of u$s 900 billion; assets for  u$s 48.9 billion). 
• Clearly, these amounts are truly staggering as in their aggregate they are greater than the United States’s Gross Domestic Product, which gives a taste of things to come, considering that rumours of further banks failures on both sides of the Atlantic still continue:
  • UniCredit, a pan-European bank based in Italy, which owns the German HypoVereinsbank and the Bank Austria. 
  • UBS based in Zurich, Switzerland, and
  • National City Corporation, Downey Financial Corporation and Sovereign Bancorp, of the United States
  • All these and more have high risk exposures to “toxic” mortgage securities, to use the charming term coined by Bernanke from the FED… 
• Lastly, the are two erroneous concepts propagated by the major world press and international analysts:
  • 1) They insist that the bill for these bail-outs will fall on “US Taxpayers” through future tax hikes.  This is clearly only a half-truth.  The full truth is that, as far as the US is concerned, the bulk of these bail-outs will be paid with even more uncontrolled monetary emission by the FED, which will further erode the value of the Dollar.  In short, the cost for this desaster will be paid by companies, governments and individuals who have US-Dollar denominated assets throughout the world, and not just by the “American Taxpayers”  
  • 2) They insist on treating this as a “financial crisis” when above all it is a Monetary Crisis: i.e., a crisis of the United States Dollar that has been irresponsibly over-issued by a factor of four to six times (no one knows for sure as there is no way of AUDITING the FED).  I.e., the FED has issues four to six times MORE US Dollars bills and T-Bills than the economy can bear.  Again, there is a gigantic glut of Dollars and the global economy is suffering from severe indigestion.  What we are seeing is a massive financial purge that began on Wall Street 12th September 2008…  Again it’s “Virtual” parasitic Finance gobbling up the Real Economy of work, production and labour.  

Plausible Scenarios

• The crisis affecting the global financial system based on parasitic speculation and usury is a terminal crisis.  It can no longer be solved through purely financial and monetary mechanisms and measures.  If US authorities only concentrate on this type of measure, then a truly serious collapse is imminent and unavoidable.
• A more pragmatic view of the global and US power structures, however, indicates that the US will not just stand by whilst this occurs, allowing the demise of the US as a global superpower.  The US will not just turn-off the lights, and go home as the Soviet Nomenklatura did in the early nineties.   No sir.  They’re gonna put up a hell of fight!!  And that is a problem for all the peoples of the world, as well as for the people of the United States themselves.  In this sense, we envision several scenarios out of which we have singled out three clearly defined scenarios which must no doubt have their respective alternative action plans to address this growing crises: 
  • Plan A (i.e., addressing a relatively low intensity crisis through basically financial measures) - This envisions continuing on-going negotiations between the FED, Treasury Dept., Congress, major bankers, European and Asian central bankers seeking further measures to stop further black-holes and bank failures, lobbying for further u$s 700 billion bail-out plans to be wrenched out of Congress and elsewhere.  This will serve to control the crisis in the days and weeks to come by helping banks in trouble, including medium-sized banks anf foreign banks operating in the US (e.g. your HSBC’s, Barclays’, Deutsche Bank’s and others), and most important, the remaining major Mega-banks like Goldman Sachs, Morgan Stanley, JPMorgan Chase and CitiGroup.   The immediate effect of this will be that there will be drastic and far-reaching crisis management through financial and monetary measures.  At the same time, new rules of the game will be dealt in Wall Street and Washington.  The practical result will be massive transference of wealth away from small investors, pension funds, small stockholders, etc., and into the hands of the usual cabal of bankers, institutional investors, speculators and financial parasites.
  • Plan B (i.e., addressing a medium intensity crisis through financial and monetary measures) - If Congress does not approve the bail-out plan, or significantly limits it, or even if Congress does approves it, it were to prove insufficient in the days and weeks to come with a further spate of major banking and insurance company failures, then the US Government – i.e., the Fed and Treasury Dept. – might very well declare a “National Economic Emergency” and introduce a totally new currency.  No, not the “Amero” which is a smoke-screen rumour, but rather something far more straight to the point: a “New Dollar” which, contrary to the present devalued dollar, would be Gold-backed, however not by just any gold: it will be 9999 proof gold bullion, with some sort of 100% fool-proof security factor – e.g., either an embedded chip or hologram that will transform it into “Global Reserve Gold”, or financially “sacred” gold - that will have a value maybe ten times higher than normal “profane” Gold.   At the same time, an extended banking holiday will be declared in order to implement the change of currency (just as happened in Argentina several times in recent history, notably when former president Alfonsín introduced the “Austral” to replace the highly devalued peso).  Transition to the new currency will be at terms highly beneficial for those banks, companies, citizens, allies and other “preferred allies and friends” of the US who will get One New Dollar for each ”old” dollar.  Then, certain powerful holders of dollar-denominated instruments – cash, US Treasury Bills and Bonds, and the like - will be given some preferrential treatment based on specific US geopolitical and geoeconomic interests such as, for example, the governments and interests of  the European Union, Japan, maybe China, and specific institutions and global corporations who will be able to change their old dollars for New Dollars at acceptable rates of exchange, say 2, 3 or 4 old dollars for every New Dollar.  For the rest of dollar-holders – i.e., vast numbers of private investors in all parts of the world in countries in Latin America, Central Europe, the Muslim World, Africa, etc. - the US Government will simply say that their respective local markets will need to determine how many old dollars will buy a New Dollar, and that this will be governed by the market forces of supply and demand. We will then see currency traders of all shapes and sizes offering One New Dollar for every 8, 10, or 20 old dollars in the hands of desperate masses of people trying to get rid of those creased green-backed bits of paper of falling value.(5)   The immediate effect of this would be to further spread the socializing of US banking losses into emerging markets and weaker economies outside of the United States (i.e., New Dollar would allow the bankers to selectively export the US currency’s inflationary erosion towards specific regions and segments of the world).
  • Plan C (i.e., addressing a high intensity crisis through geopolitical and miitary measures) - If the US authorities cannot resolve the crisis with financial, monetary and economic measures, and increasing internal social violence and political insecurity were to affect the US and its key allies, then the crisis will go into geopolitical and military mode.   If an extended banking holiday is forced upon the Bush administration, freezing banking accounts, deposits, ATM machines (just like the “Corralito” – i.e., the “baby play pen” – that Argentina suffered starting 1st December 2001 generating unimaginable hardship to our country), this may later lead to trying to resolve the problem on a the international geopolitical stage by “kicking the chessboard”.  This means escalating the overall conflict to political, diplomatic and military planes, fueling a generalized global war which New World Order planners seem to believe will allow them to use vast resources for war, placing the focus away from the on-going financial crisis.  This will lead to imposing strict limitations on all civil liberties in the US and elsewhere, and even suspending the Constitution (We Argentines certainly know a lot about that too!).  ”National Security” will be the blanket excuse at a time of grave internal emergency, and will be used to justify unilateral invasions of countries and regions in different parts of the world.  In short, mobilizing the country and its allies in its material resources, whilst the collective psyche is coaxed on the need to “defend” the country against some elusive “enemy” (new or old terrorist organization suitably demonized).  One of the results that would be sought would be to re-stabilize the economiy and financial system gearing it on a re-intensified military-industrial complex where the US has an unmatched position – foreign wars are always good to steer attention away from domestic troubles.  The immediate effect  of this would very likely consist of a unilateral military attack on Iran with the excuse of destroying its nuclear program , that would probably be triggered by a unilateral Israeli attack on Iran’s nuclear facilities once they get a green light from Washington.  This would quickly bring the US into the war with incalculable consequences. Worse still, we may see a carefully orchestrated False Flag mega-attack (i.e., an attack organized or prompted by the New World Order power structures themselves, designed to put the blame on Iran or Islamic organizations, or whatever, so that it can be used as an excuse for a unilateral attack against Iran, Syria and elsewhere).  Such a False-Flag attack might take place on American soil or against US interests anywhere in the world, or those of key US allies, and would make 9/11 look like a mere bonfire in comparison.  The New World Order media would ensure that global public opinion believe that Iran in particular, and the Muslim world as a whole, are responsible for such an attack and thus justify a whole series of “counter-attacks”, invasions and wars.  No doubt, Russia would also become involved recking havoc throughout Central Europe thus weakening the European Union.  A generalized war in the Middle East would be sufficient excuse to pass legislation to free up oil reserves in Alaska, justify invading Venezuela’s oil fiels, militarize the South Atlantic continental platform in the Brazilian and Argentine maritime regions where gigantic oil reserves lie untapped and where the US Navy’s IVth Fleet is already roaming, amongst many other things.  China, India and Pakistan will no doubt have important roles to play and if tactical nuclear artefacts are used, then this would turn into a veritable nuclear world war which no one knows how it will continue and end.

This summary merely sets out some information, patterns and conclusions which help stress the extremely grave times all Mankind is presently living under.  Its result will deeply affect the whole world.  We offer these ideas as a sort of initial exercise in Global Risk Management, hoping that it will serve as a starting point to promote better and greater strategic planning exercises amongst public and private organizations in Argentina and elsewhere. 

Even though Argentina’s very mediocre ruling class – both in Government and in the so-called “Opposition” – hardly understand nor fathom the true significance of what is taking place in the world, the truth is that this crisis opens incredilble new vistas for Argentina and our region.  We would have the opportunity of making an unprecedented Quantum Leap, however in order to take advantrage of these opportunities, we need to fully comprehend how the New World Order power structures actually work, in what refers to their political, economic, financial and monetary dynamics, objetives and methods.  We strive that Argentine public opinion should begin to understand all of this as quickly as possible; hence the uregency of the matter.

Either way, the days and weeks to come will be very transcendental for all Mankind.  Let us all be very alert…

Argentine Second Republic Movement

Adrian Salbuchi  

NOTES

(1) We have extensively described how the private global power structures actually work in various books and article, notably in the full-length 472 page book “El cerebro del mundo: la cara oculta de la globalización ” (Ediciones del Copista, Córdoba, 2003, 4th Edition) and in “Bienvenidos a la jungla: dominio y supervivencia en el Nuevo Orden Mundial” (Editorial Anábasis, Córdoba, 2005).  There is an English language synopsis of the former – “The World’s Mastermind: the Hidden Face of Globalization” available in our website ww.asalbuchi.com.ar or in www.globalresearch.ca.  

(2) “Geoeconomics” has been introduced by the New York based Council on Foreign Relations through the Maurice Greenberg Fellowship,i.e.,  the same financier who was chairman and CEO of collapsed AIG - American International Group – who had to resign in 2005 amid a major Corporate scandal.

(3) Data extracted from The New York Times, 22-Sept-08

(4) Anotable part of this crisis in the US is also focused on the huge debt of individuals with credit card companies, at present estimated in more than one trillion dollars, where financing is at usury interest rate levels of 19 to 25 percent (FoxNews, 25 Sept 08).

(5) This whole process is discussed in more detail in my article “Death and Resurrection of the US Dollar”, available in www.asalbuchi.com.ar or www.globalresearch.ca, or available upon request at salbuchi@fibertel.com.ar.

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www.asalbuchi.com.ar

Adrian Salbuchi’s Web Site

Phone: +54911 5339-7481