With great sadness I recently heard about the passing of Rob Kirby, one of the great sound money advocates I had the good fortune to interview many, many years ago when I was still hosting a radio program. May he rest in peace and my heartiest sympathies to his family.
Rob was a sound thinker, a good writer, and presented a logical case as to why America’s fascination with fiat currency would eventually lead to a nightmarish disaster. As such, he still believed that right up to the end that this problem will destroy the Western economies. I highly recommend listening to his last interview on Greg Hunter’s USA Watchdog from February 12, 2022 at this link.
Way, way, way back in March of 2005, Mr. Kirby published a fantastic article highlighting how the Federal Reserve and US Treasury were laundering US Treasury instruments due to a lack of buyers at the obscene prices of that era. It was the true precursor warning that a financial crisis was right around the corner, and Rob nailed it because in the end, the same “Caribbean Island Banks” were the source of much of the derivative laundering leading up to the housing crisis.
I originally found the article on SafeHaven.com as titled “Pirates of the Caribbean” and wow did it warn of the people as to just how insane the coming monetary tsunami was going to be.
In the original story, Rob stated the following:
In doing so, one might choose to notice how America’s traditional financiers [Japan, China and Korea] have actually reduced their holdings of US debt obligations but our new best friends, the Pirates [hedge funds?] of the Caribbean have dramatically stood in for the debt fatigued Asians in accumulating a walloping 23 billion in additional US debt in the latest reporting month [Jan. 05]. Go figure, ehh, who would have ever thought that pirates could or would ever be so charitable?
Upon further examination of the red line in the table above depicting the Caribbean banking centre and their holdings of US securities; what stands out above all else is that this line, unlike any other jurisdiction in the world, looks contrived, lacks continuity and its erratic fluctuations give the appearance that this line is being used as a “plug”. Actually, the term ‘skullduggery’ comes to mind. It should be remembered that other jurisdictions in the world are home to hedge funds also, yet none of them exhibit such wild fluctuations in their monthly reporting. Strange, ehh?
This is the TIC chart from the original article and hoo boy does it pale compared to what today’s version looks like (more on that in a minute):
What’s fascinating is that the Treasury used the cover of “Caribbean Banks” in that era to cover for what everyone knew were hedge funds run by the very same banks in New York using nothing more than a post office box on Grand Cayman with a phone number forwarded to a contrived hedge fund at a Fed member bank.
At least in the most recent TIC report, the Treasury is a tad more honest about their laundering and what island is being used:
And just like Kirby’s article from 2005, it’s obvious that the Fed is still using extra strength Tide Pods to launder and convince investors that the little “Cayman Islands” bought up an additional $45 billion in US Treasuries to offset some of China and Russia’s sales of American trash.
Thus nothing has changed and in fact perhaps, maybe it has gotten exponentially worse since 2005. Because it will be years before the Federal Reserve reveals who they liquidate their holdings to. In reality perhaps the Yellen Advanced Government Safety Hedge Fund is being set up now on Grand Cayman to offset QT. After all, it’s taxpayer money, so who cares how much is created and the resulting inflation because of it.