The emerging market and developing nations that came out of the first decade of the 21st century were appropriately coined as the BRICS. BRICS is short for Brazil, Russia, India, China, and South Africa, and represent a coalition of economies that have sought to divest themselves from Western hegemony and dollar dependence.
But as these and other nations began moving away from the dollar and dollar dependence, the U.S. had to find new ‘shills’ to suck up their ever expanding debt printing. And from this, they have created a new conglomerate of countries that are not about production and development, but instead they are simply repositories to buy up Treasuries and other U.S. debt to keep the American empire going.
And these new nations, which are similarly labeled as the BLICS, are made up of Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland.
In the last three years, tremendous distress has befallen the USTreasury Bond complex. If not the London Whale event, or JPMorgan bankers leaping out of buildings, or the Belgium Bulge of $420bn in USTBonds exposed, it has been misdirections like Operation Twist to conceal the vast shifts behind the USFed walls. Legitimate buyers of USTBonds have largely vanished. Taking their place is the main QE window, JPMorgan derivative machinery, Wall Street carry trade, and hidden BLICS hands. The USFed has exported QE while it claims to wind it down. The criminal banking syndicate has been integrating the USTBond purchase program to new proxy fronts. The TIC Report reveals their identity, all friends to the fascist state. Notice the huge decline in official bond holdings by the typical traditional former allies. No more!
BELGIUM, LUXEMBOURG, IRELAND, CAYMAN, SWISS
The hidden evidence is coming to the fore. The challenge is to identify which entities are buying USGovt debt in the form of USTreasury Bonds. The USFed is no longer permitted to purchase additional USGovt debt issuances due to its ownership limits, unless it changes the portfolio rules. Or else, the USFed chooses not to add to its $4.5 trillion toxic balance sheet, since wrecked beyond repair. In recent months, six nations have been carrying the load of maintaining USTreasury yields at ZIRP. Those nations are Japan and the BLICS: Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland.
From June 2011 to January 2015, the USFed has bought $825bn in USTreasurys, while the BLICS have quietly bought $818bn in USTreasurys during the same timespan. These are small nations without huge trade surpluses. The source of data is the Treasury International Capital (TIC) Report provided by the Federal Reserve itself. The only remaining offices for purchasing USTreasury debt securities comes down to just Japan and BLICS nations. The USGovt and USFed have conspired as a Ponzi Scheme, using digital counterfeit to purchase perhaps all net new USTreasury debt since July 2011. QE has been exported in a den of thieves and a nest of lies. – Jim Willie, Hat Trick Newsletter via Silver Doctors
Many analysts had been wondering how the U.S. was able to sell more debt in the wake of China and Russia dumping their dollar reserves over the past year. And this was eventually revealed when both Belgium and Japan became the first two nations within the new BLICS to sacrifice their economies to protect dollar hegemony. The ‘Belgian bulge’ as it became known, grew to hold more U.S. debt than their entire annual GDP, and Japan traded away their nation’s pension reserves and replaced them with Treasuries.
It is astonishing to imagine what kind of leverage Washington has over these five entities to coerce them into destroying their own economies, and to protect America from complete insolvency and the full monetization of debt by the central bank. Yet this is the new paradigm that has come out of the 2008 Credit Crisis where all banks have become lashed together to protect themselves and support too big to fail, and long-standing banking nations like Switzerland, Luxembourg, and the Cayman Islands have lashed themselves to the dollar, thus supporting the U.S. debt’s own new policy of itself being too big to fail.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.