THE SHADOW MONEYLENDERS AND THE GLOBAL FINANCIAL TSUNAMI
The one author who predicted it all . . . and what is still to come . . . From the author of two of the most successful books in AFP history . . . The man who boldly exposed the Zionist-Anglo-American meltdown . . . MATTHIAS CHANG IS BACK!
Matthias Chang’s new book, THE SHADOW MONEYLENDERS and the Global Financial Tsunami, is the only up-to-date work that fully explains the corrupt nature of the international money monopoly and the role the funny money Federal Reserve System plays in its perpetuation . . .
A comprehensive overview of the Global Money Scam: You’ll understand its venal nature as never before!
• Understanding the Derivative Market Casino
• What is Money? . . . ‘Fiat’ Money Explained
• The Concept of Paper Money Before 1971—and afterward
• Funny Money Accounting Rules
• Thomas Jefferson on the Threat Posed by Money Lenders
• Financial Armageddon Is Upon Us
• Open Global Currency Warfare: Fed Ditches the Dollar
• Alan Greenspan: Financial Charlatan & International War Criminal
• The Global Banking Collapse
• Will America Be Compelled to Impose Capital & Exchange Controls?
• The Fraudulent Structure of Mortgage-Backed Securities
• Fractional Reserve Banking—Dead
• Abolish the Fed, Central Banks and Taxation!
• What Lies Ahead—and What You Can Do to Protect Yourself!
Softcover, 395 pages
Table of Contents
The Global Shadow Money-Lending System v
ISDA – International Swap & Derivatives Association vii
Understanding the Derivative Market Casino xv
When Things Go Wrong Because of Greed xxi
A World of Illusions xxv
September 11 and the Credit Bubble xxvii
PRESIDENT THOMAS JEFFERSON
On The Threat of Money-Lenders xxxi
WHAT IS MONEY?
Thinking About Money
Money Is An Idea
There Must Be Consensus
The Element of Confidence
The Concept of Paper Money Before 1971
The Concept of Paper Money After 1971
FUNNY MONEY ACCOUNTING RULES
Debt 101 Revisited
The Money-Lenders Got Greedy
How Can the Money-Lenders Factor Their Book-Debts?
Defaults Set In
Strange Phenomenon of Fed Rates Down, Borrowing Rates Up
Collapse of Auction Rate Securities
Costs of Credit Default Swaps
PART 1: AN OVERVIEW OF THE FINANCIAL STORM 1
1. The Financial Rapists In Sheep’s Clothing Part 1
2. The Financial Rapists In Sheep’s Clothing Part 2
3. The Global Banking Collapse Part 1
4. The Global Banking Collapse Part 2
6. 2nd Red Alert – Second Confirmation: Big Banks Are Insolvent
7. 3rd Red Alert – 2nd Red Alert Analysis Corroborated By Financial Experts
8. 4th Red Alert – Financial Armageddon Is Upon All of Us
9. 5th Red Alert – Federal Reserve Letter to Bank of America
10. 6th Red Alert – Don’t Believe the Hype, Don’t Be Greedy
12. Wall Street Surge: After Fed Cut Rates – Wow!
13. 7th Red Alert – Open Global Currency Warfare Fed Is Ditching the Dollar
14. 8th Red Alert – Financial Charlatan, Crook and International War Criminal: Alan Greenspan
15. Dow 300 Points Collapse
17. Jim Rogers’ Options – What Are Your Options?
18. World’s Financial Markets Shattered by Merrill Lynch’s US$8 billion Write-Off from Sub-Prime Losses
19. How I Can Be Wrong and Still Be Right
PART 5: ATTEMPTS AT COVER-UP
21. 10th Red Alert – The FASB 3rd Level Cover-up Fraud
22. 11th Red Alert
23. Lord William Rees Mogg Lets the Cat Out of the Bag
24. Booming Market for Structured Investment Funds
25. Understanding the Fraudulent Structures of Mortgaged-Backed Securities
26. Year End Alert
27. The Death Knell for Fractional Reserve Banking
28. Appealing to Greed: Will Malaysian SIVs Succeed In This Suckers’ Game?
29. Why Would Anyone Pay 85 Cents for Something Worth 20 Cents or Even Less – For Junk?
PART 7: THE CURTAIN COMES DOWN
30. 2008 – The Year of Confusion, Despair and Extreme Anger For Many Innocent and Hardworking Wage Earners
31. Malaysian Stock Punters – Gluttons for Punishment
32. PM: Confidence Perks Up Bourse
33. Pak Lah – Another Con Artist, Like Bush
POSTSCRIPT: NONE DARE CALL IT GAMBLING
The Golfer & Derivative Trading
Controlled Chaos and “Creative” Destruction
Norman Podhoretz – The Personification of Evil
Abolish the Fed, Central Banks and Taxation
Appendix 1: The Risk and Danger of Derivatives: What You Should Do To Prevent It
Appendix 2: Capacity of Counter-Parties in Derivative Transactions
Appendix 3: QCC’s Quarterly Report on Bank Derivatives – 3rd Quarter 2007
Appendix 4: Fed’s Analysis of Reserves of Depository Institutions
From the Introduction
The intended title of my third book was The Shadow Money-Lenders and the 9/11 Money Machine. I wanted to expose the Global Shadow Money-Lenders and how they exploited the events of 9/11 that enabled them to control global banking and finance in a manner beyond their wildest dreams.
However, events in December 2006 prevented me from embarking on the research, as it was apparent then that the global banking system and the shadow money-lenders’ agenda were fast collapsing.
I abandoned my efforts to write my third book and devoted all my efforts to collecting and collating data, scanning the latest news reports, downloading financial newsletters etc. so as to be up to speed on the fast unfolding events, and to come up with timely analysis and forecast. The contents of this book will show that I was way ahead of the curve, and time and again proven right in my conclusions.
The main message in this book is blunt and direct. And I offer no apologies. The modern banking system has collapsed. This has triggered a Financial Tsunami. The consequences will be ugly. For those Americans who are now living in tents as a result of foreclosures by banks, they need no further convincing. However, if you are still indulging in intellectual masturbation, you deserve to be wiped out.
It can be said without any fear of contradiction that people acquainted with global finances are familiar with the names of the major global banks and investment houses such as Goldman Sachs, J.P. Morgan Chase, Merrill Lynch, Bear Stearns, Citi Group, Morgan Stanley, the Rothschild Bank, Bank of America, Deutsche Bank, HSBC, Barclays Bank, UBS etc.
But few would be aware of the organization set up by the above-named banks to organise and manage the Shadow Money-Lending System. I give you the name of this organization. It is: I.S.D.A International Swap & Derivatives Association. ISDA is the organization that spawned the US$500 trillion global derivatives market. This is the organization that designed and manufactured most, if not all the derivative products – the financial WMDs.
For those who have not read my book, Future Fast-Forward, I append below the critical passage regarding the danger of derivatives.
“Gambling on Derivatives — Financial Tsunami
Warren Buffet, the world’s greatest stock market investor, known as the ‘Sage of Omaha’, in his Chairman’s Letter in the Berkshire Hathaway 2002 Annual Report, said: “We view them as time bombs both for the parties that deal in them and the economic system. In our view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
As far back as 1990, Sir Julian Hodge in a memo dated November of that year to senior executives of the Julian Hodge Bank said: “In no circumstances enter the derivatives trading market without first agreeing to it in writing with me . . . At some time in the future, it could bring the world’s financial system to its knee.”
We need only to recall the fear and panic caused by the collapse of the hedge fund LTCM whose principal shareholders were Prof. Robert C. Merton of Harvard University and Prof. Myron S. Scholes, who shared the Nobel Prize in Economics for ground-breaking research in determining the value of derivatives. The Federal Reserve had to intervene and rescue the fund at a cost of US$3.5 billion as it was feared that its collapse would cause a meltdown of the world’s financial system.
The QCC Bank Derivatives Report for the 3rd quarter of 2004 reported that the notional value of derivatives held by U.S. banks rose to a record US$84.2 trillion, from US$81 trillion in the 2nd quarter. This is mind-boggling! The report stated that derivatives volumes continued to be dominated by interest-rate contracts, which grew US$2.4 trillion during the quarter to US$73 trillion or 87% of the total derivatives volumes. Foreign exchange contracts rose US$163 billion during the same period to US$7.9 trillion or 9% of the total. The remaining 4% was made up of equity, commodity and credit derivatives. The banks’ total risk exposure through these financial instruments rose to US$804 billion, up from the previous quarter of US$752 billion.
It should be noted that as at December 31, 2003, the top 25 U.S. commercial banks and trust companies accounted for 95.5% of total derivatives traded. They are as follows:
1) JPMorgan Chase $ 36.8 trillion
2) Bank of America NA $ 14.8 trillion
3) Citibank $ 11.1 trillion
4) Wachovia Bank National Assn $ 2.3 trillion
5) HSBC Bank USA $ 1.3 trillion
6) Bank One National Assn $ 1.2 trillion
7) Bank of New York $ 561 billion
8) Wells Fargo Bank $ 557 billion
9) Fleet National Bank $ 443 billion
10) State Street Bank & Trust Co $ 369 billion
11) National City Bank $ 252 billion
12) National City Bank of In $ 133 billion
13) Keybank National Assn $ 91 billion
14) Mellon Bank National Assn $ 88 billion
15) Standard Federal Bank NA $ 78 billion
16) Suntrust Bank $ 77 billion
17) La Salle Bank National Assn $ 70 billion
18) PNC Bank National Assn $ 48 billion
19) Deutsche Bank TR Co Americas $ 46 billion
20) US Bank National Assn $ 43 billion
21) Merrill Lynch Bank USA $ 35 billion
22) Capital One Bank $ 28 billion
23) Northern Trust Co $ 26 billion
24) Irwin Union Bank & Trust Co $ 19 billion
25) Union Bank of California NA $ 19 billion*
* All figures have been rounded up to nearest billion.
What is of concern is that the top three banks have exposures far in excess of their assets. The statistics in the QCC report is alarming. In the case of JPMorgan Chase, while exposure is US$36 trillion, assets are only US$628 billion which works out to approximately US$58 of derivatives per dollar of asset. Credit exposure to Risk Based Capital Ratio is approximately 844%. Bank of America’s exposure is US$14.8 trillion while assets are US$617 billion, the ratio being approximately US$24 of derivatives per dollar of asset. Credit exposure to Risk Based Capital Ratio is approximately 221%. And in the case of Citibank, exposure is US$11.1 trillion while assets are US$582 billion, the ratio being approximately US$19 of derivatives per dollar of asset. Credit exposure to Risk Based Capital Ratio is approximately 96% …