Building A Mezzanine Over The Minefield

http://miss-landmine.org/

The following is an open letter addressed to Jim Rickards of Tangent Capital Partners LLC (former Managing Director of Market Intelligence at Omnis, Inc.) from Dave Harrison.

Dear Jim:

I have listened to your presentations regularly and appreciate the smooth, well-crafted and confident assessment that you present of the macro landscape.  I will also say right up front that your background and associations would led most anyone to consider that you have been in the past or are currently associated with the Central Intelligence Agency of the United States Government.  Of course that’s mere speculation on my part and is neither here nor there but I deem it as important to present at the outset of this letter. 

Your most recent interview on approximately June 24 with Eric King of King World News (www.kingworldnews.com - link below) motivated me to write to you and to call into question your depiction of the current situation in Greece, in particular the sovereign credit default swaps, as a justification for the implementation of a modified version of the International Monetary Fund’s Special Drawing Rights (wth a percentage of gold backing) as a viable solution to the dilemma.  Your proposal is consistent with the concept of a divorced currency as put forth by Mervyn King, Governor of the Bank of England.

I have written about this suggested plan extensively in the past.  Your presentation however, in light of the dual responses of the Federal Reserve’s admission of an inability to improve the current situation in regard to unemployment  and Chairman Bernanke’s empty quiver combined with the White House tactical release of strategic petroleum reserves struck me as a colossal change in overall strategy.  Together, these responses display all of the appearances to me of both a willingness and a determination on the part of the U.S. Government to abandon entirely or to greatly reign in the role of the Federal Reserve and the global central banking system.  Please allow me to explain.

I realize the gravity of such a proposition and to be completely frank it was not something that I had expected in any way, shape or form.  However, at the same time it would seem to be quite logical and in reality the only solution to addressing the global situation from a perspective of the powers that be.  Setting aside the dual mandate of controlling inflation and employment of the Federal Reserve in exchange for the implementation of  an entirely new Occidental currency for the West is a classic upstreaming asset model of consolidation as applied to conventional insolvency and bankruptcy avoidance by the parent corporation by foreclosing on the downstream subsidiary.

In your interview with Eric King you brought to light the terrorist paradigm that banks have presented to sovereign nations via the highly profitable deployment of credit default swaps.  This “nobody move or I’ll blow myself up” reality is, in my opinion, no subject of debate.  Quite to the contrary however, your suggestion that since no one knows exactly where the mines (i.e. the credit default swaps) have been lain that this is a justification for the construction of an entirely new form of mezzanine finance to be built over and above these pre-existing and non-improvised explosive devices is ill advised and is the ultimate game of kick the can down the road via extend and pretend.  Although I believe it is deceptive and ill-conceived I don’t see any reason why it will not happen along the lines that you suggest.  Your plan monetizes the value of the United States military as a substitute for the soon to be entirely depraved balance sheet of the Federal Reserve and as such shifts the accountability away from the Fed and back to the Treasury. 

You go on to suggest, in what appears to be in concert with the Mervyn King BOE plan, that the columns which will support this mezzanine be built out of gold.  When you suggested that the study behind such a plan will take several years, I felt like I was witnessing the alter ego of Jamie Dimon’s recent impromptu questioning and Ben Bernanke’s admission that no in-depth study of the current Fed strategy had ever been undertaken as to the viability of today’s plan.  The implementation of your new SDR Western Occident Currency solves both the need for countries to have what appears to be sovereign currency in the form of satisfying the double coincidence of needs in an entirely non-fractional form while providing for a global gold-backed fractional wealth forming currency which makes up the other side of the coin.  What could be better?

If what I am suggesting is correct, then the plan to strategically collapse the current system (i.e. End the Fed) under the weight of investigations such as those being conducted by Ron Paul and to replace it with a new gold-backed form of libertarian paternalism would be the agenda.  The simple price for all this reconciliation is the monetization of every participants sovereignty with the exception of the United States military.  A similar sequence of events is already occuring in the Eurozone and being perpetuated on the right by Nigel Farage and on the left by George Soros through recent statements such as “probably inevitable” collapse.  It makes me think I am “probably inevitably” correct… whatever that means.

Your suggestion that the minefield could never be cleared since there are no maps or regulators who know where the credit default swaps are planted is false.  I would suggest that there is not a bank or an insurance company that has sold a credit default swap that doesn’t know exactly where the contract lies and the counterparties thereto.  Gary Gensler’s CFTC couldn’t do such a great job of covering for Goldman Sachs and JP Morgan if they didn’t know exactly what was at stake.  The fact that the Eurozone has approved an expansion of the European Financial Stability Fund from 440 billion to 780 billion is a clear indicator that the focus is moving away from the central banker model and moving towards a new merger of sovereign interests, albeit business interests, I  would speculate that the United States Treasury has shifted its focus to the Exchange Stabilization Fund in a similar manner in preparation for just such a transaction.  Through the implementation of new clearing mechanisms (http://tradewithdave.com/?p=6291) and Dodd-Frank workarounds the City of London is now forced to share power with the U.S. Treasury through entirely new forms of leverage. 

The willingness on the part of governments to pervert laissez-faire economics through the implementation of behavioral economics based on choice architectures is effectively sacrificing via the wholesale marketplace the blood bought freedoms of generations of Americans on the altar of global economic oversight and a promise of false security.  The Hank Paulson doctrine of if we don’t do it, then we will all be speaking Chinese is no doubt the justification for such a path.  China’s willingness to step in yesterday and bail out Greece was the final straw that motivated me to write this letter and confirmed in my mind entirely that we have just entered the post central banker phase and entered into the pre-occidental merger phase between the dollar and the euro via your cherished SDR. 

Clearing the minefield and returning the explosives to their rightful owners along with an invoice for the direct and indirect costs associated with their fraudulent and destructive financial terrorism should be the first order of business.  Spreading the truth of liberty to the Chinese people rather than the Wal-martization of our economy through the prostitution of their labor will do more to strengthen global security than anything the International Monetary Fund could ever improvise.  From all appearances of the monetary perspective, the powers that be have managed to get the Chinese right where they want them. 

Your plan, if my speculation is correct, is philosophically based on Isaiah Berlin’s Two Concepts of Liberty.  By dividing freedom in half (just like the divorced currency plan) you can both justify the wholesaling of a nation’s sovereignty (freedom to) regardless of the price paid in exchange for economic security (freedom from) from the communist threat.  Might I remind you that whether you choose Kierkegaard’s other of faith or Sartre’s other of hell will determine whether or not you have access to the only true option which has likely not even been considered by those for whom you do the bidding.  Building on the same cornerstone of truth found stamped on every piece of fiat currency, not atop a gold-columned mezzanine cuts a clear path that is not freedom from or freedom to, but freedom with.  Am I suggesting that fiat backed paper printed with the words In God We Trust is of more value than the so-called sound money suggested by Robert Zoellick?  What does Dave know about money?  Just enough not to put his trust in it. 

Sincerely,

Dave Harrison

tradewithdave  (at)  gmail.com

Here is a link to the King World News interview.  When the page loads, look for the MP3 icon in the bottom left corner.  Allow extra time to load as the site is slow:  http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/25_Jim_Rickards.html

For links to previous posts that include information about the plan for a new divorced currency and other topics that relate to this letter to Jim Rickards, readers may want to click on the following links.

The Divorced Currency:  http://tradewithdave.com/?p=6999

Two Concepts of Liberty: http://tradewithdave.com/?p=638

Libertarian Paternalism: http://tradewithdave.com/?p=4819

http://tradewithdave.com/?p=117

http://tradewithdave.com/?p=5895

CFTC Dodd-Frank by-pass:  http://tradewithdave.com/?p=6291

http://tradewithdave.com/?p=7036

49 Responses to “Building A Mezzanine Over The Minefield”

  1. [...] Exhibit I: Jim Rickards so much as came out and detailed this entire plan and endorsed Mervyn King’s “divorced currency” plan which is the cornerstone of the plan to kill the Fed once and for all.  We covered that here: http://tradewithdave.com/?p=7114 [...]

  2. [...] For Dumbell Dummies trade and see how that one gets the country in shape.  As Dave explained here (http://tradewithdave.com/?p=7114)  the U.S. Treasury in advance of Secretary Geithner’s departure has switched it’s [...]

  3. [...] This open letter to Jim Rickards draws a lot of the disparate pieces of the plan together:  http://tradewithdave.com/?p=7114 [...]

  4. [...] Eurozone under with us and hold them there long enough to get the new Western currency SDR model (http://tradewithdave.com/?p=7114) around their neck, then that’s exactly what we’ll have to do.  It’s all about [...]

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