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"Salomon North". Apart from his cachet appearance in the best- volumes of euros on behalf of an unnamed US hedge fund. selling book, Liar's Poker,' Meriwether was seen as the "coming Although the identity of the hedge fund has not been reported in man" and attracted Wall Street's finest to his management team. published accounts, informed sources have told this writer that it Included were two Nobel laureate economists and a former was Moore Capital Investment, recently ranked as Number | in Federal Reserve vice-chairman. He also attracted Italian academ- terms of assets (US$9 billion) and among the top six hedge funds ic Professor Alberto Giovannini, who was reported to be acting as in terms of overall performance. Insider knowledge of the an informal representative for the Bank of Italy. Giovannini impending intervention allowed Moore Capital to buy euros at a wished Meriwether's merry men to engage in market manipulation —_ low cost and then, as the price jumped following intervention, sell to ensure that Italy could meet the convergence criteria for the their hoard to achieve an easy and handsome profit. The ultimate launch of the euro in 1999. consequence, of course, would result in a further weakening of the The Wall Street and European crowd queued up behind LTCM European currency unit—which is what happened. like starving sparrows at a garden party. Everyone wanted a piece No one, however, is saying which central bank leaked this criti- of the action. Merrill Lynch was top of the list in its diversity of cal information. However, an examination of the ownership and investment in LTCM. Merrill invested as a firm and all 123 exec- connections of Moore Capital Investment does produce some utives also placed a total of US$22 million into the fund as part of __intriguing leads. The fund is reported as principally operating on their "deferred compensation plan". Merrill Chairman David behalf of a "group of European investors".* Louis M. Bacon is the Komansky alone was reported to have invested $800,000. Chase, Chairman, CEO and chief equity holder of the fund, and he is also Morgan, Lehman, Bear Stearns, Salomon, Union Bank of the principal investor in Apex Silver Mines Limited, an offshore Switzerland, Germany's Dresdner Bank, Taiwan's Chinatrust, company that boasts the largest private silver holdings in the China's central bank, the Bank of China, Britain's Warburg, world. Other investors in Apex include Paul Soros—older brother Dillon Read, the Swiss-American bank CSFB and a host of equal- of George Soros of Quantum Group fame (Quantum, incidentally, y illustrious international banking groups also participated in the holds 9.9% of shares of Apex)—Thomas Kaplan and others who hedge fund helter-skelter profit ride. are known to be close to the Rothschilds stable. It may also be LTCM is said to have borrowed a large significant that Moore Capital moved quantity of gold, sold it and put "in play" the its headquarters to the Rockefeller roceed fe achieve us i" other ends. This Economists are predicting cee back in 1993, taking over the short gold position is, by all accounts, a sensi- ' top-floor executive suite previously tive issue. Knowledgeable people continue to the dollar S fearful collapse, used by Exxon, the massive oil com- hint that nthe 1998 orate rescue’ of | for asa CUMTeNcy it has J sce ati y 14 of Europe's and Wall Street's . will also be remembered that i finest investment banks (the same crowd who been debauched with was George Soros who, via his hedge acked it in fact) there was more concern mountainous debt that now func tacked Britain's currency ack with bailing out the firm's short gold position 4 ; in , which led to losses of billions than anything else. In any event, it took a cannot possibly be repaid. of pounds to the British taxpayer and mere 12 months for LTCM to make profits the resignation of the then Chancellor sufficient to repay the US$4 billion rescue of the Exchequer, Norman Lamont. kitty raised by the collusion crowd. At the time, Lamont had run into a blizzard of flak from the Bank of England, who disagreed with his economic policies. Not least, THE EURO VERSUS THE DOLLAR sterling was pegged to the European exchange rate mechanism Expectations that the US dollar will ultimately lose the money (ERM)—a vehicle specifically designed to create the new attle with Europe are plentiful. Economists are predicting the European currency unit, the euro. The consequence of Soros's dollar's fearful collapse, for as a currency it has been debauched "Black Wednesday" manoeuvres was to force Britain to leave the with mountainous debt that now cannot possibly be repaid. ERM. An August report in the Washington Insider by two former Rothschilds, of course, sits at the heart of England's financial high-level economic advisors to the Russian government predicts establishment and for generations has boasted exceptionally close a collapse of the US economy by the end of this year, with losses ties to the Bank of England. This is not to say that it was the "Old of around US$10 trillion. They strongly recommend that Russia Lady" of Threadneedle Street who leaked the information about heed this warning and join forces with Germany.’ the planned intervention in support of the euro to Rothschilds, There are reasons to argue that the present spiralling cost of oil who passed it along to Louis Bacon who dealt through Citibank. is not of OPEC's making, but is instead a desperate last attempt to But at least we can show that these connections do exist, and note keep the US economy buoyant amidst these fears. Oil is a dollar- an anti-European stance by the right-wing ruling elite in the denominated commodity, and it is fair to say that the 1973-74 United Kingdom that borders on political fervour. "Yom Kippur" embargo/crisis is an example of where an oil crisis And it is the Rothschilds, Hambros and others who form an boosted the American economy at a time when it was in consider- integral part of the Anglo-American "special" relationship that is able jeopardy. historically deeply embedded in the US Republican Party—to But there are powerful forces lining up to ensure that the euro which Louis Bacon is a known large contributor. It is when one fails. In late September, an article published by the leading begins examining the Republican connections to outright financial German newspaper Frankfurter Allegemaine reported that the fraud during the 1980s that one begins to understand the true plan by G7 central banks to intervene in the foreign exchange dynamics of power politics. market in support of an ailing euro was leaked by a central bank Anyone who desires to learn just how rigged the whole political outside the euro zone.* According to the report, the giant US bank —_and financial process is, need only read a copy of Al Martin's Citibank, a major force in foreign exchange markets worldwide, newly released The Conspirators: Secrets of an Iran-Contra learned of the impending intervention and began buying large Insider.’ For a British version that shows similar connections THE EURO VERSUS THE DOLLAR Expectations that the US dollar will ultimately lose the money battle with Europe are plentiful. Economists are predicting the dollar's fearful collapse, for as a currency it has been debauched with mountainous debt that now cannot possibly be repaid. An August report in the Washington Insider by two former high-level economic advisors to the Russian government predicts a collapse of the US economy by the end of this year, with los: of around US$10 trillion. They strongly recommend that Russia heed this warning and join forces with Germany.’ There are reasons to argue that the present spiralling cost of oil is not of OPEC's making, but is instead a desperate last attempt to keep the US economy buoyant amidst these fears. Oil is a dollar- denominated commodity, and it is fair to say that the 1973-74 "Yom Kippur" embargo/crisis is an example of where an oil crisis boosted the American economy at a time when it was in consider- able jeopardy. But there are powerful forces lining up to ensure that the euro fails. In late September, an article published by the leading German newspaper Frankfurter Allegemaine reported that the plan by G7 central banks to intervene in the foreign exchange market in support of an ailing euro was leaked by a central bank outside the euro zone.* According to the report, the giant US bank Citibank, a major force in foreign exchange markets worldwide, learned of the impending intervention and began buying large 24 - NEXUS cannot possibly be repaid. DECEMBER 2000 — JANUARY 2001