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Footnote one:
The letter covers the danger of the of the Iranians shutting the Straits of Hormuz.
Mr. Jamie Dimon
Chairman of the Board
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. Iran alone has this power.
With best wishes.
David
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. However, the self-correcting mechanism of having to cover the short by buying back the short or the index was eliminated by settling in cash. The swings became too large and went out of control on the downward swing in 1987.
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. 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 the Long Term Capital Management (LTCM) where LTCM was double-crossed as they were not pre-notified of the Russian financial collapse of 1998 as the other majors on Wall Street. It was quite interesting that number one of the US deep state was hit with 100 million dollars of investment that was repaid as that is a no no.
I am not only involved in financial matters handling the Syrian chemical missile crisis where I agreed to waive their destroying their missiles in return for destroying their chemical stocks. Putin was involved here and I handled it for Obama though Obama was not in the loop. I would not talk directly to Putin as he is merely a Rothschild agent handling the looting of the Rothschild oligarchs remitting the tribute via SWIFT-CHIPS of a hundred billion dollars a year to Sir Evelyn de Rothschild. Rumors are the large oil export surpluses of the Russians with India as reported by Bloomberg is the new method of remitting the money to the Rothschilds this time to Alexandre de Rothschild in Paris who has succeeded my friend Sir Evelyn who passed away a few years ago. I dealt with Putin through an intermediary on Obama's staff who had far more ability than his boss when I solved the 2012 chemical warfare problem. I was also at the deep state meeting on 9-11 where there was no involvement with Islam, etc. which was used as a pretext to reopen the heroin operation in Afghanistan and as a form of misdirection of the blame that I vigorously opposed. We had to deal with the issue that Building Number Seven was still standing not having been hit by an airplane which could not have had anything to do with the collapse of the other buildings as Donald Trump points out below and it was decided to similarly blow up its foundations as the other buildings having it fall within its own footprint at ground zero. The boarding tapes were doctored to show members of Islam boarding the planes. We left Afghanistan after Fentanyl started taking over the market in the US. The revenue financed external US intelligence operations circumventing the Church Committee interdictions.
Real estate developer Donald Trump is the only person to question, on the afternoon of September 11, 2001, the Bush Administration's version of the collapse of the Twin Towers. Keeping a cool head, he says that according to his engineers (who had built the World Trade Center), airliners could not have caused this destruction.
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 are 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. 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 geo-strategic 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
718 TRILLION DOLLAR NOTIONAL DERIVATIVE VALUATION
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 718 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 105 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 718 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.
Some regard this as too small and place the derivative exposure at two quadrillion.
https://goldbroker.com/news/two-quadrillion-dollars-global-timebomb-2261
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 718 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 below we discuss Russia potentially blocking 23 million barrels of from its own and former eastern provinces which they can take over any time they like which combined with Iran shutting the Straits of Hormuz would represent about half the oil production of the world. Such a cutoff would have the effect of a massive weapon of mass destruction bringing down the western financial system.. The next link is a reprint of my July 2, 2019 speech before the Peace Conference at the Russian Duma as the lead speaker where I predicted the Ukraine War after Russia refused my 700 billion dollar offer in cooperation with China to redirect all 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. The war worked like a charm alienating Europe from Russia. It was planned by Zbigniew Brzezinski that this would bring down Putin to be replaced by Dmitri Medvedev who was recruited by Brzezinski when he was President
of Russia who proved his mettle as a US agent by cooperating in the murder of Gaddafi in Libya who was a Russian ally. The grand strategy as its next part was after gaining control of Russia to then be able to control China by having Russia being able to blockade China's access to the west and the US fleet of submarines and ships could then blockade China from the East. Taiwan was an essential aircraft carrier in this grand plan to maintain control of the world.
As we have repeatedly pointed out that Vladimir Putin and his oligarchs are agents of first Sir Evelyn de Rothschild of London and now Alexandre de
Rothschild of Paris. Also, the Ukraine rightists similarly report to the
Rothschilds. It is their old custom when they start wars to control both sides.
The inventor of this grand plan was the Rothschilds.
Can Russia have Peace Now?
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