Letter to the Editor
A couple of days ago, The White House published a great press release relating to Canada’s east coast tariffs. DJT has now announced that Lake Ontario will be renamed as Lake America. America pays for the lake’s economic running, so gets to name it. Canada’s not just losing its businesses.
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It’s not at all surprising that Canadian businesses are relocating to the U.S., as they don’t even hide their declarations of war. It was Mark Carney’s Industry Minister, Melanie Jolie, who just came right out with it. She made it quite clear that Ottawa was going to economically attack, via tariffs, specific American states. Jolie stated: – [quote]. ‘We’re also targeting products [via tariffs] that will target states in the U.S.. And so we’re being wise and strategic to put political pressure [on targeted states] and that’s why we think its the right thing to do right.’ [unquote].
Johnson previously worked on Democratic political campaigns in the United States, including Hillary Clinton’s 2016 presidential campaign. She also serves as the Prime Minister’s senior adviser on Canada–U.S. relations and will now oversee the day-to-day operations of the PMO—the first time such a position has existed.
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So, as we approach the mid-terms the stakes are getting higher. Right now, it is without doubt, that the most interesting U.S. spokesman is Scott Bessant and the U.S. Department of Treasury. The department’s weekly press releases are currently slamming it. These gents and ladies aren’t playing games and they’re extremely serious.
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What happened three days ago (25.08.26)? Well the U.S. Treasury Secretary, Scott Bessant, just warned the entire market, that if they’re going to test him by shorting U.S. Treasuries to pump up yields and destabilise the economy prior to the mid-terms: – please don’t try it. Initially Bessant countered them with buy-backs of $2 billion, and then $4 billion. But then what did he do? – he then upped the stakes to $1 trillion dollars! So, within five days (20-25 Aug), the liquidity has gone from $2 billion, to $4 billion, – to $1 trillion.
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Bessant was saying, don’t you ever test me. And what did they do? Yup! – they decided to test him. And what did they say to him? – ‘Hey, we’ve got $20 billion,’ and what did Big Daddy Bessant say to them?, – ‘Ah but, no, no, no, – its now a trillion dollars.’ He said show me what you got next?. And that’s where we’re at.
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They have now realised that he is deadly serious. The 30-Year is down about 1%, and the buy-backs haven’t even started [the buy-backs will begin on 9 Sept]. What this means is that the regime of liquidity has changed, and the market is waking up to a new reality. It now knows that the U.S. Treasury is not joking. The Treasury is prepared to spend $1 trillion dollars to keep the long duration Treasuries nice and stable, and not just for the mid-terms.
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This is why capital is now rotating into risk-on assets: Bessant destroyed the mid-term shorters. And this is ‘before’ the liquidity injection starts on 9 September. That’ll be nice. This is when everything will fall into line, perfectly in time for an asset boom into the mid-terms. Everything’s lining up perfectly here. Just as we knew it would.
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In the same week (24.08.26), when discussing ‘Operation Economic D-Day,’ Bessant let everyone know that the U.S. Treasury is not playing games: – its deadly, deadly serious.
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[quote]. (Journalist). – ‘So, why not impose the sanctions today? (Scott Bessant). – ‘Well, we were giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system? We believe that it’s important to level set and give people a cure period, but they should know, that that will move very quickly, – and that we are serious. . . . And we do not take their (Office of Foreign Assets Control, OFAC) use lightly. And if people do not want to meet our expectations, then we expect, and they should expect, – that they will leave the dollar system. Thank you all.’ [unquote. 19:58-20:55].
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https://www.youtube.com/watch?v=abriePXlUP4
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So, the U.S. Treasury is extremely serious about removing criminals from the dollar system and the window of opportunity is short. The U.S. Treasury doesn’t need their ponds of capital, as its got an ocean of it, and other global oceans will soon be tapped [Trump’s legislation of 18 July 2025].
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As the economic war between the old City of London financial system and the new American financial system reaches its inevitable conclusion. The latter will basically return to America’s Free Banking Era system that existed between 1837-1863. This was the wealthiest period in America’s history, when any bank could issue its own currency. This is what’s already in place and ready to go. This is how billions and eventually trillions of previously untapped global capital will flood into U.S. Treasuries.
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People need to decide which economic system they want to belong to.
From Capitalists of the World Unite
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