Rob Kirby of KirbyAnalytics.com is interviewed at the SGTReport on the very murky Exchange Stabilisation Fund.
NOTE: Please check out this article we posted last week first by Hugo Salinas Price as it is the subject of this interview:
In answer to the One Trillion Dollar question posed by Mr Salinas Price:
“What entity or entities have purchased – for cash – the $1 Trillion dollars worth of Government Bonds that the central banks of the world have sold off in the course of the past 17 months?”
Rob Kirby answers:
“The only thing that even remotely makes sense given the fact that we have seen a trillion dollar liquidation and interest rates have gone down and not up, tells me that some entity did purchase the bonds that the likes of China have been liquidating. In my books anyway, the liquidation is so profound given that 10 year bonds have rallied… in the face of all that liquidation you would have expected normally there would have been a huge sell off in the bonds. It’s also not consistent with there being a strong dollar…
He says the banks know who is buying as they are the ones selling them.
“What has factually occurred in the US securities market tells me that the Exchange Stabilisation Fund [ESF] with their untold riches which are all off book have been purchasing those bonds.”
He outlines how the ESF was seeded in 1934 using the proceeds from the forcible harvesting of gold from US citizens in 1934. Amounting US$3 Billion 1934 dollars.
To maintain the integrity of the US Dollar as a trade currency. It is subject to no oversight except directly to the president, operated at the discretion of the Secretary of the Treasury and is not subject to any US or internal law, and it produces no financials.
It’s been growing since then and he believes the off book worth amounts to trillions if not 10’s of trillions. An amount which is bigger than the US public debt!
(Note: The idea of the ‘Black Budget” and unaccounted for funds was also discussed by Catherine Austin Fitts in her Auckland Presentation last year. You can listen to that here.)
So if the ESF off book funds are used to buy US bonds off foreigners they can be not only be “sopped up” but also then disappear into a black hole.
How the ESF is one of the most closely guarded secrets that America has. More than the lack of gold in Fort Knox and more closely guarded than nuclear secrets.
So while you’d expect the bond markets to be a mess and the dollar to be very weak with China and others visibly selling US treasuries. But this hasn’t happened.
So he believes the ESF is behind the purchase of these bonds and is the reason why the dollar has held up so well.
They also discuss what other people have written about the ESF and how it has been involved in most significant events in US history. From regime change, the drug trade, murder for hire, and arms trade.[NOTE: This is the MarketSkeptics.com post that features the Youtube videos they discuss by Eric deCarbonnel revealing even more about the ESF if you’d like to know more: http://www.marketskeptics.com/2011/06/the-esf-and-its-history.html]
It is also interesting how the Secretary of the Treasury who operates the ESF receives virtually no publicity unlike the likes of Janet Yellen, the head of the Federal Reserve. Kirby believes this is where the strings are pulled but it is unknown who actually controls the ESF.
Kirby believes the oil price is as low as it is, is because countries are getting out of the dollar, so they have fewer dollars to buy oil. So the price of oil has to be lower.
He believes countries like China are liquidating US dollars and buying gold as they know they have been hoodwinked into buying dollars intrinsically worth nothing. So there is a game between the ESF and major world powers, where the ESF will do whatever it can to have people believe the US Dollar is strong.
Final question is: What is the end game?
They discuss the 1988 cover of the Economist magazine. “2018: Get Ready for a World Currency”.
Finishing up with why a number of currencies are failing. Such as hyper inflationary conditions in Venezuela, Argentina, Andora. Even huge food inflation in Canada where Kirby lives. Who knows how low the Canadian Dollar can go?
Are things better or worse than in 2007/2008?
The can has been kicked a long way down the road so the resolution if appropriate steps were taken in 2007 is now going to be a lot more difficult and painful.
Kirby’s final thoughts:
“Precious metals are still extremely cheap still – start taking control of your financial future and at least insulate yourself somewhat from the coming financial reset.”