First, they’d keep fabricating astounding sums of money each week, and through various off-balance sheet transactions through its off-balance sheet private company, the U.S. Federal Reserve, would divert large portions of these multi-zero sums into accounts it holds with financial institutions such as J.P. Morgan, and HSBC, and Goldman Sachs, etc, and would begin to actively mange the perception of the general public through its participation in the futures and derivatives markets for strategic commodities like energy and metals. By alternating between large short and long positions, it can drive external investment demand by building huge short positions when it wants outsiders to sell (which they dutifully buy all the way down the price curve to cover its short positions), and massive long contracts (which they never deliver on anyway…any contract underwater is simply rolled over into the next month’s strategy in perpetuity). All losses are stored in unreconciled accounts at its various financial subsidiaries, which it bankrupts at will to cleanse the negative accumulations from its front-line balance sheets.
http://www.midasletter.com/index.php/gold-and-silver-and-the-endgame-for-u-s-a-inc-dollar-11040401/