Ghosts Stalk Trump Investiture

London In Bid To Hijack U.S. Treasury Market

Jan 20, 2025

∙ Paid

London/Davos bid to control U.S. Treasury debt market
Exposed in hearing of new treasury sec Scott Bessent
Commerce sec Howard Lutnick to boost Treasury futures trade in London
SEC’s Gary Gensler to force more trades through clearing houses
Consulted with George Soros, whom Biden awarded medal of freedom
Donald Trump has no choice but to confront London and Europe

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(2,800 words or about 11 minutes of your company.)

Jan 20, 2025

The machinations of the City of London and its agents inside the U.S. financial system are long suspected but rarely seen.

During the approval of Trump's Treasury Secretary it was alleged that the Bank of England is trying to gain control of the U.S. bond market.

Reuters news agency reported last year that the London Clearing House planned to expand into U.S. Treasuries.

The bombshell came during the confirmation hearing for Treasury Secretary Scott Bessent. Senator John Cornyn suggested Britain could be seeking control in a default scenario.

It comes 18 months after the U.S. wrested control of interest rates from London, whose Interbank Offered Rate (LIBOR) historically played a key role in setting U.S. interest rates through dollars traded overseas, called Eurodollars.

If it were to regain control of the settlement of bonds that finance U.S. government operations, it could influence rates and prices in the U.S. and, in extremis, place the U.S. in hock to the Bank of England.

If you pooh-poohed the idea of the City of London trying covertly to control the U.S., here is evidence that conspiracy theories, like financial futures, may turn up surprises, especially in times of volatility.

The British state takes steps to suppress reporting on this issue.

Much of the Alt Media in Britain won't discuss Cecil Rhodes-Alfred Milner or the Round Table or the Anglo-American Establishment.

It is not their "world view," they claim, while they reflexively, or through misplaced loyalty, adopt the Milnerite posture of rivalry towards Russia and condescension towards America.

Their studied indifference can't hide this topic. With renewed attention from commentators like Tom Luongo and Richard Poe, and from a lesser perch, by yours truly, more people will see current events from the historical perspective of the Great Game.

See Fabians, Milner Group And War - Britain commits to Ukraine, cuts pensions, announces austerity (Jul 29, 2024)

Those who approach the issue dispassionately often have some personal knowledge or connection — Poe through one line of his family to Bolshevik Russia, I through one line of my family to South African politicians in the era of Milner and Louis Botha.

It is remarkable that so many stand aside as the inherited wealth of Europe seeks to re-impose its oligarchic privilege.

Paradoxically it can help with historical perspective not to be living in the country as you write; distance of time and space having some benefit if your aim is cool analysis rather than what the BBC called “the journalism of attachment.”

The technicalities

Clearing is the vital but unseen settlement between seller and buyer that happens every time a person or a financial institution transacts.

"It ain't what you do, it's the place that you do it. And that's what gets results "

The world's leading financial centres specialise and compete. Diamonds are traded in Antwerp and Tel Aviv, Gold is increasingly traded in Shanghai. Hong Kong Exchanges and Clearing bought the London Metals Exchange more than a decade ago.

Since the financial markets trade around the clock there is room for New York, London, Singapore and Hong Kong.

It's not just a matter of convenience or history; it is also about power.

The U.S. Treasury market is the world’s largest bond market with a value of nearly $28 trillion, and futures play a key role in setting interest rates.

From 1986 to 2023 LIBOR set the globally accepted key benchmark for the cost of borrowing between banks. That ended last September when the U.S. Federal Reserve privately-owned central bank reclaimed the role with the Secured Overnight Financing Rate (SOFR).

The consequences

During Bessant’s confirmation hearing on Thursday, Senator John Cornyn asked whether “the proposal to clear U.S. Treasury futures at the London Clearing House” could have financial stability consequences.

"Some argue that the Bank of England would have control over a, heaven forbid, a default scenario ... in this critical market, instead of the U.S." [1]

Bessant, who was a Yale professor of economic history, had discussed with Cornyn before the hearing the proposal for the City of London to grab the Treasury business which they concluded had no benefit to the U.S. but would allow the British to manipulate the market.

London's power to set U.S. external interest rates ended in scandal when it turned out London banks were rigging LIBOR.

Allowing London a bigger role in fixing U.S. interest rates would revive "frigging in the rigging" as surely as any bawdy pirate in a raid on the colonies.

See Pirates, Privateers And Merchant Adventurers - Second of a series on depopulation (Aug 15, 2023)

The plan

The U.S. Securities and Exchange Commission (SEC) proposed in December 2023 to reduce systemic risk by forcing more trades through clearing houses.

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