Newsletter: US Embassies Are Advised to Buy Enough Local Currency for 1 Year

Wednesday, June 24, 2009

This rumour could become TNT for the USA. Newsletter publisher Harry Schultz who correctly forecast the 2008 stock tsunami and outperformed the market more or less as long as he invests, comes up with truly hot stuff.
In its current issue the Harry Schultz Letter (HSL) (via Marketwatch, HT John Trudgian) reports rumors that
"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."
His apocalyptic projections don't end there:
"Another FDR-style 'bank holiday' of indefinite length, perhaps soon, to let the insiders sort out the bank mess, which (despite their rosy propaganda campaign) is getting more out of their control every day. Insiders want to impose new bank rules. Widespread nationalization could result, already underway. It could also lead to a formal U.S. dollar devaluation, as FDR did by revaluing gold (and then confiscating it)."
This is one more rumor adding to my suspicions something big is going to happen. An imperium in decline will play all dirty tricks in order to stay afloat. There are no green shoots to be seen for several years, as explained in my 600+ earlier posts. We are in for a K-winter (Kondratieff).
Was the swine flu just a test run for a deadlier pandemic?
Or will the US default by waging WW3?
Section 25C of the Federal Reserve Act (adapted in 1994)
explicitly says that the USA does not have to repay debts to a country if the two countries are engaged in a war.
Read more on the US external debt in this earlier post "The US debt balloon - a simple explanation for non-economists."

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