CORNERED RATS AND THE PPT

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Here is where the Clinton-Rubin "strong dollar" policy and its gold leasing scheme becomes instructive. Rubin understood that to confront the

Republican revolution of '94 and insure Clinton's re-election he needed to inflate the money supply; but to do so, he needed to suppress the

price of gold so as to not alarm the Forex markets. However, he could not suppress the price of gold by just selling Fed owned gold. That was

public; it would set off the Forex alarm bells and negate his desire to keep the dollar "strong" while still inflating it. He therefore hatched the

scheme to lease gold to the bullion banks who would then sell it into the market. Leased gold could still be carried on the Fed's books as an

asset; the movement of the gold would not be acknowledged to the world. The bond vigilantes and Forex markets would not get alarmed. The

dollar could be inflated, yet made to appear to be strong. Capital would continue to flow into America. Clinton could be re-elected.

The lesson here is that any substantial printing to inflate the money supply must be done SECRETLY. If it is done in large amounts by

conventional monetization of bonds and deficits, then it will set off those nasty alarm bells in the Forex markets. The dollar will plummet, capital

will flow out of America, and the Dow will crash.

So the Fed has to print up billions of dollars and inject them into the economy without public acknowledgement. Enter the PPT! The Treasury

Department has by now found that it is a natural vehicle to use to funnel "new money" into the market secretly. Since the PPT's operations and

existence must always be kept secret, then its funding (at least its major funding) must also be orchestrated in clandestine manner. It must be

done offshore. And this is where the funding for the PPT undoubtedly comes from. Rubin probably initiated this procedure. The Fed prints up

billions of dollars and slips them into an offshore bank account for say XYZ Investment Corp (which is established as a front for the PPT). JP

Morgan and Goldman Sachs are then designated as the brokers for XYZ Corp to act as the funnels to bring the "new money" into the economy

via the PPT's "market stabilization activities." Thus, there are unlimited funds for use to short gold, buy dollars, and buy S&P futures whenever

the markets look to be in jeopardy. Whenever the offshore account runs low, the Fed merely prints up more money for a PPT operative to

deposit into the account.

 

 

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