LETTER TO JAMIE DIMON

WARNING OF US BANKRUPTCY AND DEPRESSION CAUSED BY OIL CUTOFF

BY DAVID K. LIFSCHULTZ

COMPLIMENTS OF THE LIFSCHULTZ ORGANIZATION, FOUNDED IN 1899

The following Scott Ritter analysis is very accurate and is what I have been saying since 2013 but especially since 1999. The crux of the interview starts at 12 minutes though the whole video is worthwhile.  He exclaims that the United States will lose the war in the Middle East.

https://www.youtube.com/watch?v=IDhMIVwy7V0

It is very important at this point to mention how counterproductive the sanctions are against North Korea who have been selling nuclear and hydrogen bombs

into the Middle East with missiles to carry them for quite a while.  Israel is not the only country that has them there. It is also vitally important to note that

North Korea has acquired from Russia ICBM capacity that they can sell into the Middle East that can reach the US. The present US defensive missile systems

such as the THAAD, Patriot, and Aegis Systems are relatively worthless.  Russia on the contrary had developed by 2013 the S-500 defensive

missile that seals its air space which carries ten interceptors, travels at 15,480 miles an hour rising to up to 115 miles traveling horizontally about 2,174 miles.

They have since rolled out the S-600 and S-700.  These defensive missiles essentially end the concept of MAD or mutually assured destruction.  They were

developed starting in 1999 when Russia witnessed the 78 day bombing of Belgrade in punishment somewhat similarly to Adolf Hitler who bombed Belgrade

for three days in 1941 over a change in government in Yugoslavia adverse to German interests. The motives of Germany and the United States were the same as it weakened the underbelly of NATO or Hitler's Germany for an invasion of Russia.  Thus, we saw the BND handling this for the CIA using Albanians who botched the whole thing up by failing to spread the blood and cartridges on the ground. This was picked up by the Manchester Guardian but the CIA ordered the world press, which they have absolute control over, to bury the story. 

There is an historical straight line from the bombing of Belgrade to today as Russia awoke from its catastrophe and rearmed. When Brzezinski read my report

in 2013 on the S-500 he set his course on a war in the Ukraine to oust Putin via Maidan in 2014.  Brzezinski was concerned with NATO dependence on Russian natural gas and feared a Russian-EU alliance cutting the US out of its control of Europe.  He had recruited Dmitri Medvedev as his agent when he was President of Russia and Dmitri proved himself cooperating in the murder of Gaddafi.  China, who was allied with the US, feared its access to natural resources would be impaired if it lost access to Russia and moved to ally with Russia. Now Brzezinski had his hands full. He faced an alliance of Europe dependent on the natural gas of Russia, and now an alliance of Russia and China. Here would be a GDP over twice the US based on purchasing power parity if we add Europe, Russia and China together. The US would lose control of the world.  The Brzezinski plan was to knock out the natural gas to Europe from Russia via a Ukraine War that the US would initiate by murdering 22,000 Russians in the western Ukraine by shelling forcing Russia to intervene which he did, and through Medvedev blockade China from the west and via US submarines and aircraft carriers taking control of China's access to natural resources from the east. That was the plan.  

Russia invaded the western Ukraine to protect the Russians and Europe fell into the trap stopping the purchase on natural gas from Russia. The US bombed the Nord Streams according to Seymour Hersh to prevent Europe from changing their mind.

Let's go over some of this history in more detail. It was in 1998 that Russia collapsed financially having been raped by the Rothschilds similar to what Baron Eduard de Rothschild had done in 1917 when he created the Bolshevik Revolution to get rid of his adversary the Tsar. Parvus was his agent. And Trotsky turned over to the Rothschilds the Tsar's gold in payment for supporting the Bolshevik Revolution.  Putin remitted to Sir Evelyn de Rothschild via Lord Jacob Rothschild in London about 100 billion dollars a year through SWIFT-CHIPS or 2.2 trillion dollar up until 2022. Rumors are that this looted money is now going through India handled by Alexandre de Rothschild of Paris who succeeded the year before last Sir Evelyn de Rothschild who died. Vladimir Putin is a Rothschild agent as Zelinsky, Biden and the puppet leaders in Europe.  Zelinsky has no access to the Rothschilds and is handled by a Rothschild agent. Zelinsky makes no decisions but acts as instructed.

The Rothschilds have turned into an art of being on both sides in wars.

Fall of Eagles - Sealed Train Decision (9m) 

The Rothschilds always make money from wars being on both sides.

https://operationdisclosureofficial.com/2021/11/08/rothschild-won-the-battle-of-waterloo/

In 1990-1991 Boris Yeltsin as an agent of Sir Evelyn de Rothschild took over Russia and hands it over to another Rothschild lackey named Vladimir Putin

on 12-31-1999.  In 1989 14 million were below the poverty line in Russia and Eastern Europe and in 1996 168 million under the the CIA Jeffrey Sachs shock 

treatment.  During the 1990s Russian heroes of World War Two were begging in the streets as their pensions were inflated away while the oligarchs had

gun battles in the streets Al Capone style on how to divide up the spoil.

Russia had suffered a default on its debt in 1998 as the oligarchs had raped the country with a couldn't care less attitude as to its 

consequences for the Russian nation. And they are still there under Putin. Why do we not hear about this in the world press is simple: the

Rothschilds forbade it.

When Russia defaulted on its debt in August 1998, LTCM was holding a significant position in Russian government bonds, known by the acronym GKO. Despite the loss of hundreds of millions of dollars per day, LTCM's computer models recommended that it hold its positions.

I was involved with the bailout of LTCM who had been double-crossed by the leading Wall Street financial houses who reversed their positions in time (that I shall leave unnamed) as otherwise the entire financial house of cards of the United States would have imploded that nearly happened in 1987 which rescue I also supervised as explained under the section entitled stochastic control theory in the next link. The reader will be particularly interested in the part dealing with the Pentagon analysis where General Barry Macaffrey states that the United States military cannot keep the Straits of Hormuz open which is still true today. In footnote one I explain to the Chief Executive of J. P. Morgan Chase Jamie Dimon the implications of closing the Straits of Hormuz today. In that letter I also explained my involvement in the rescues of 1987, and 2008 though I also wrote the Volcker plan in 1979.

https://operationdisclosureofficial.com/2022/02/16/the-straits-of-hormuz-as-a-trigger-to-world-depression/

It was in 1999 that the US bombed Kosovo over a fake massacre set up by the CIA and BND where the shot up dead bodies showed no bleeding or cartridges at the site meaning that they were not killed there as dead bodies do not bleed.  I had opposed this bombing at the deep state meeting on how to handle the Manchester Guardian article describing and proving this massacre was a fake and predicted that Russia would rearm. Number one (OSS, CIA, Billionaire) said I was probably

right but they had to do it to protect the underbelly of NATO.  

The US now faces three potential world war theaters. Middle East, Taiwan, and Europe in the Ukraine. At the same time the US budget deficit of over two trillion dollars this year and we do not yet face what might become world wars in three places just mentioned.

In fiscal year 2023, the federal government is estimated to spend $6.3 trillion, amounting to 24.2 percent of the nation's gross domestic product (GDP). Of that $6.3 trillion, over $4.8 trillion is estimated to be financed by federal revenues. The remaining amount will be financed by net borrowing.

That, my dear readers, is the reality.

Footnote one:

Mr. Jamie DImon

CEO 

J. P. Morgan Chase:

Dear Jamie:

Here is a summary of the problem the international banking system faces if the BRICS, Arabian and Russian producers cut off the oil that Washington has not addressed in the calculations of the dangers that we face which are not entirely of a military nature in the Middle East.

With best wishes.

David

                      618 TRILLION NOTIONAL DERIVATIVE VALUATION

I was called upon to handle the 1987 emergency stock market crash and my point man at the Fed was Ted Truman. I just noticed an article that Ted Truman just wrote in the Financial Times so he is alive and kicking in his eighties. We just ordered the major firms to reverse their cash settlement rigs.  Ted understood everything in a minute. He was the George Smiley at the Fed of the John Le Carre novels. What had happened was the major Wall Street firms were then experimenting with a new vehicle called cash settlement which they would use to move the market up by placing their cash settlement positions above the market that settled for cash before they moved the market up and below when they would move the market down. It took less money to move the indexes than they received from the cash settlement derivatives and settled their profits in cash. The swings became too large and went out of control on the downward swing.

We came in to order the players to place their positions above the market and drive it upwards coordinated with the Federal Reserve System which worked. The atmosphere was painted in the background by executives proclaiming they were buying their own stocks because the valuations were so cheap which was actually not significant in itself. A detailed explanation as to what happened is given in a link below entitled "Straits of Hormuz" under the subtitle "Stochastic Control Theory".

I was also involved in ending the other grand manipulation of 2008 which forced the issuance of 27 trillion dollars in Federal Reserve Credit as they hesitated to follow my advice when in 1987 there was hardly a ripple. I was preoccupied in another emergency situation for the United States in 2008 but wrote out the rescue plan but they delayed its implementation for two months requiring 27 trillion dollars of new Federal Reserve Credit based on the delay when I came back to implement the plan. This could just as easily been rescued as in 1987 with much less money. In matters such as this he who hesitates is lost.  

When love once pleas admission to our hearts

(In spite of all the virtue we can boast)

The woman that deliberates is lost.

If we wish to understand what this meant from 1913-1914 to 2008 about two trillion of Federal Reserve Credit had been created. When I came in we had to create 27 trillion dollars to save the situation all of which was subsequently paid back. But we never showed any Federal Reserve Credit having been above two trillion dollars in 2008 as that would have created a world crisis which you can see for yourself in the third link. Here are the links. Link one covers the 27 trillion dollar cover on top of the two trillion base for their mistake, and link two the Federal Reserve balance sheet for 2008 showing no relative increase in credit which report was false. 

https://www.levyinstitute.org/pubs/wp_698.pdf

Recent balance sheet trends

Today we face another potential crisis of even greater magnitude as outlined below as our ability to control it is limited as the players are outside of our jurisdiction as noted in the next two quotes.  The solution requires an understanding of the great danger the international financial system is in and requires decisive action to forestall an Arabian and Russian cutoff of potentially 25 to 50 percent of the world oil supply that would irretrievably implode the international financial system.

Here are warnings:

Iraqi Prime Minister Mohammed Shia al-Sudani warning supplies of Middle East oil to international markets could be put off because of the Israel-Gaza War.

The other reason this is very significant is because if a larger war were to kick off, oil would become the primary geostrategic global lightning rod. That’s because Iran can wreak havoc on global markets, transits via the known chokepoints of the Persian Gulf, etc. This is underscored by the fact that the Iranian minister called for a total oil embargo on Israel during this meeting:

Iranian Foreign Minister: We call on a total oil and gas embargo by the Islamic countries against nations that support Israel

618 TRILLION DOLLAR NOTIONAL DERIVATIVE VALUATION - Part 2

by David K. Lifschultz

Compliments of The Lifschultz Organization, Founded in 1899

There is the potential of Iran shutting down of the Straits of Hormuz and Russia shutting down in Russia and their former provinces about half the world's oil supply if we include the Straits of Hormuz discussed below. This would bring down the entire world economy which is sitting on a notional value of derivatives of 618 trillion dollars. They say notional as most are not in the money but if the economy collapses with an oil cutoff Goldman Sachs oil derivative experts say that the exposure will rise in the notional derivatives who become in the money obliterating the world financial system. We compare this risk to the world GDP of 96.5 trillion dollars.  

Warren Buffett's concern with derivatives is not their present value but the value in a crisis which is why he moved to eliminate derivatives in the Swiss insurance company that he bought some years back though it would take 50 years. A 618 trillion dollar derivative crash could be our Baron Louis de Rothschild bank's collapse in Vienna which was the Creditanstalt that triggered the collapse of the German economy in 1931 raising the unemployment to 50% if we include the itinerant workers that made the National Socialist revolution successful. 50% unemployment seems to be the key for the west today. The US system in 1933 weathered the 25% unemployment.  We are saying if the US and European unemployment rises to 50% their governmental systems will similarly collapse as in Germany in 1933. This is entirely possible as we sit just above the abyss as the Middle East nears Armageddon.

Here are current comments by the Bank for International Settlements founded by Hjalmar Horace Greeley Schacht. Dr. Schacht, who was nicknamed the old wizard, stopped the German hyperinflation creating a gold backed mark though there was no gold behind it following the verses of Goethe in his Faust:

I am fed up with this endless how and when,

if there is no money let us make it then.

He was also behind ironically enough the creation of the Bank for International Settlements where once a month the central bankers meet in these times to chart the world financial system.

Here are the BIS comments:

The sharp increases in gross market values contrasted with the stability seen in the notional value of outstanding derivatives. These sagged by only $14 trillion to $618 trillion at end-2022 after a small rebound the previous period, continuing the sawtooth pattern evident since at least 2016 (Graph 1.B). 

https://www.bis.org/publ/otc_hy2305.htm#graph1

The main point that I am making is that this crisis over Palestine can pull down the entire world system through a crash in the derivative market. My piece is included below from 1987 crash when I supervised the rescue in the stock markets stemming from a rig of the cash settlement positions by the major Wall Street firms. The deep state ordered the major rigging firms to reverse their positions to drive the market up by placing their cash settlement positions above the market. As everyone knows it worked.  I used this study as a point of reference since the same principles still apply today. The derivative exposure today is worse than then. I go into the Straits of Hormuz vulnerability there too that could bring down the 618 trillion dollar derivative structure and a detailed military analysis based on my lunch at the Harvard Club with General Barry McAffrey who was the Director of Strategic Plans and Policy, Joint Chiefs of Staff which is still applicable today as to whether the US can keep the Straits of Hormuz open which they cannot.  See detailed study in next link of the form of manipulation and the military analysis.

The Straits of Hormuz as a Trigger to World Depression

Here we discuss Russia potentially blocking 23 million barrels of oil from 

Russia and its former eastern provinces. If we combine this with Iran

shutting the Straits of Hormuz, this represents a shut off of about half

the world's oil supply. Oil is the ultimate weapon. The next link is a reprint

of my July 2, 2019 speech before the Peace Conference at the Russian Duma 

where I predicted the Ukraine War after Russia refused my 700 billion dollar

offer to redirect their oil and natural gas to China as the US would not tolerate

Europe being dependent on Russia for which reason the US started the Ukraine

War.

Can Russia have Peace Now?