- Spitfire List - https://spitfirelist.com -

Echoes of 11/22/63; 9/11/2001


Bare Bones Invest­ing

COMMENT: A mys­tery bil­lion­aire (indi­vid­ual or insti­tu­tion) appears to have placed a $1 Bil­lion bet that the U.S. will lose its AAA rat­ing.

Note that, among the pos­si­ble exe­cu­tion­ers of this deal is PIMCO, the bond-trad­ing sub­sidiary of Allianz, the giant Ger­man insur­er which, like all Ger­man core cor­po­ra­tions, is part of the con­sum­mate­ly pow­er­ful, dead­ly Bor­mann cap­i­tal net­work. (As vet­er­an lis­ten­ers know, this is the eco­nom­ic com­po­nent of a Third Reich gone under­ground [2]. It might be not­ed in this con­text, that it will be all but impos­si­ble to ful­ly under­stand this web­site with­out assim­i­lat­ing the book Mar­tin Bor­mann: Nazi in Exile [3] by the late Paul Man­ning [4].)

This huge spec­u­la­tion on dis­as­ter is rem­i­nis­cent of the short sell­ing and mar­ket manip­u­la­tion that occurred in the run-up to, and on, the day Pres­i­dent Kennedy was assas­si­nat­ed and again in the run-up to, and on,  the Sep­tem­ber 11 attacks. This is dis­cussed in FTR #327 [5].

Anoth­er con­sid­er­a­tion to be eval­u­at­ed here is the Nazi wing of the GOP [6]. How many mem­bers of the Tea Party/GOP fac­tion are affil­i­at­ed with the Under­ground Reich [7] and evolved from the “chil­dren of Van Damm [8]/Von Bolschwing [9].” Are they delib­er­ate­ly pulling the plug on the U.S. to ben­e­fit Ger­many and the Under­ground Reich?

“Investors: The $1 Bil­lion Armaged­don Trade Placed Against the Unit­ed States” by Jack Barnes; ETF Dai­ly News; 7/25/2011. [10]

EXCERPT: Some­one dropped a bomb on the bond mar­ket Thurs­day – a $1 bil­lion Armaged­don trade bet­ting the Unit­ed States will lose its AAA cred­it rat­ing.

In one moment, an invis­i­ble trad­er placed a sin­gle trade that moved the most liq­uid debt mar­ket in the world.

The mas­sive trade wasn’t placed in bonds them­selves; it was placed in the futures mar­ket.

The trade was for block trades of 5,370 10-year Trea­sury futures exe­cut­ed at 124–03 and 3,100 Trea­sury bond futures exe­cut­ed at 125–01.

The val­ue of the trade was about $850 mil­lion dol­lars. In sim­ple terms, if that was a direct bond buy, no one would be talk­ing about it.

How­ev­er, with the use of futures, you have to have mar­gin capac­i­ty behind the trade. That means with a sin­gle push of a but­ton some­one was will­ing to com­mit more than $1 bil­lion of real cap­i­tal to this trade with expec­ta­tions of a 10-to‑1 return ratio.

You only do this if you see an edge.
This means some­one is con­fi­dent that the Unit­ed States is either going to default or is going to lose its AAA rat­ing. That some­one is will­ing to bet the prover­bial farm that U.S. inter­est rates will be going up.

I believe what hap­pened is a debt-ceil­ing deal was done in Wash­ing­ton and leaked to a major pro­pri­etary trad­er. Every­one knows the debt nego­ti­a­tions in Wash­ing­ton have been an extreme game of brinks­man­ship between polit­i­cal par­ties, but now some­one knows how that game played out.

This had the hall­marks of one of the largest bond shops in the world know­ing some­thing the rest of the mar­ket didn’t.

The num­ber of shops or even cen­tral banks that can take on this lev­el of mar­ket risk is extreme­ly small. Some that come to mind are hedge fund man­ag­er John Paul­son, Bill Gross’s PIMCO, and the U.S. and Chi­nese cen­tral banks. . . .