[KP note: it appears the benjaminfulford.net post was missing a couple sentences, which were obtained from the benjaminfulford.typepad.com/benjaminfulford site]

I have decided to refrain from highlighting this because I do not feel I know what to highlight. This is news that indicates the continued demise of the entire old system.

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The Feds have sued for peace and detailed settlement negotiations have begun

In a very major development, the Federal Reserve Board faction that is in de-facto control of the Obama regime and Israel has approached the White Dragon Society to negotiate a way to unfreeze their funds. They have promised to use any released funds for humanitarian projects and to develop hitherto forbidden technology.

The 130-nation group that announced a new financial system through the Conscious Media Network on January 1st also contacted the White Dragon Society and said they will prove with action, and not words, that they represent extremely powerful interests. This writer initially, and apparently incorrectly, denounced the announcement as a psy-ops because this group was not identical to the 117 nation Monaco group previously reported about in this newsletter.

All of these major factions will now have to reach an agreement. There will some serious horse-trading over the coming weeks before any sort of agreement is reached or public announcement is made but it appears a solution to the financial crisis is now on the horizon.

group behind the current Washington D.C. regime came to negotiate with the White Dragon Society after a serious bout of recent midnight shoot-outs and daytime arrests crippled their control network in Japan. The D.C. representative admitted "We used to pick the Japanese Prime Ministers, we would tell them: 'this is who it is going to be,' and that was it but now we have lost control."

In essence the corporate Washington D.C. government is now going to have to negotiate a chapter 11 restructuring of their debt to Japan. They have offered to pay off 90% of the debt with gold stashed in the Philippines and the rest in cash. There is a problem, of course, over who has the rights to the gold there as at least three claimants have emerged.

In any case, most of the US debt will have to be written off because the fact of the matter is the US cannot afford to pay it. The US will need to make some changes, though, before that is agreed to.

The real problem is that the US nation has had a structural trade deficit with the rest of the world for the past 30-years. This problem can be solved in two ways. One is to keep using the US dollar and wait until US living standards fall to third world levels before the US is competitive again. The other is to realize that 90% of the dollars ever created are now outside of the US and the interests of those dollar holders are not the same as those of the United States. That means the US needs to issue Treasury dollars of their own and devalue them relative to the international US dollar. That will mean the Chinese stuff in Wal-Mart will suddenly become more expensive but it will also mean the US economy will be competitive once again.

The other problem is that the US military industrial complex has to transform itself into a productive and life-enhancing entity instead of being a parasitical and life-destroying entity.

The initial discussions between the Feds and the White Dragon representative revealed no major disagreement over these fundamental issues. The next step is to open formal negotiations with the once-again independent Japanese government. This should start next week.

The other big problem now to be discussed is what to do about the huge gap between the off-ledger or shadow banking system and the on the books banking system. Essentially the off-ledger stuff has got way more zeros than the on the books stuff and some very greedy and powerful people are going to have to be forced to agree to erase a lot of zeros from their bank accounts. There is simply not enough reality to justify all those numbers. The result has been the off-ledger books have been frozen out of the on-ledger system.

This is where the factions have been secretly fighting each other using midnight-shoot outs, rival code books, promised astronomical bribes, spies and computer hackers. So far, the real world of on the books banking has prevailed over the virtual world of huge numbers hidden in "grey screens," and "black screens."

Some secret government files signed by Queen Elizabeth on behalf of the committee of 300 have also been sent to this writer and confirmed by BIS linked sources as genuine. They will be posted on this writer's free blog as well for everybody to see. Note the astronomical numbers and the mention of a Chinese Red Dragon. The person who sent these files is connected to former Philippine President Ferdinand Marcos. Marcos was one of the many prominent victims of the owners of the Fed.

What is becoming increasingly apparent after talking to many different secret agents, secret societies and other groups is that ultimately the financial system is the link between group psychology and the real world. The gold, for example, exists in the real world but it is human psychology that determines who "owns" it. What is happening now is that the small secret group than controlled "finance," is not secret any more