Archive for the ‘alan greenspan’ tag
There are 290,000 articles on the Internet which include the full name of Catherine Austin Fitts and of these 144,000 are Youtube videos. Yet until today not one article included the word genocide though Catherine did warn us that the government wants to kill us. They stole our money and do not want to make restitution..
Catherine Austin Fitts was a Wall Street banker who rose through the ranks to become managing director at Dillon Read Investment bank. She resigned and became Housing Secretary under George Bush in 1989. She left to found Hamilton Securities which made money in the mortgage housing market. She was investigated and indicted 19 times and was eventually run out of Washington DC. Attempts were made on her life. She was persecuted for excessive honesty and had to retreat to a small town in Tennessee. She emerged on the Internet as a leading spokeswoman for the resistance to the New World Order..
In 1994 both of the political parties owned by Wall Street managed to pass NAFTA which sent 50,000 manufacturing plants overseas. Since Wall Street knew the people who had jobs and bought homes were soon to lose their jobs due to NAFTA, we can easily conclude that those home loans were fraudulently induced which nullifies the contracts..
The bankers took this fraud a step further and bundled home loans into mortgage backed securities which were designed to fail. They bought Credit Default Swaps (CDS) to make it appear that these bonds were valid investment vehicles. It is illegal to sell a worthless security. CDS are unregulated and only appear to insure a worthless bond as the seller of a CDS is not required to set aside funds to pay for losses as would a fire insurance company. Brooksley Born was the head of the Commodities Futures Trading Commission in 1999. She attempted to regulate CDS as she saw the inherent risks. Four Jewish men – Alan Greenspan, Robert Rubin, Larry Summers (Samuelson) and Arthur Levitt. The world financial community is now exposed to hundreds of trillions of dollars in CDS and derivatives that essentially did not exist fifteen years ago. The level of money in bonds is 3 times what it was 11 years ago. We are awash in credit. Yet a year ago at the Davos summit we were told that our problems would be solved if we created another 100 trillion dollars in bonds. We have a world economic output of nearly 70 trillion dollars but with total debts equal to 300% of that claiming payment. The International Swaps Dealers just concluded that they owe nothing for the Greek default..
My regular readers know that Ben Bernanke at the FED has created at least ten trillion dollars to date to buy back fraudulent MBS from the Europeans to keep the New York banks out of jail. We will pay for that money printing to cover fraud with higher food and gasoline prices. Many will not survive as the price of food rises beyond their reach.
In 1997 Catherine talked to the head of CALPERS (The California Public Employees’ Retirement System), who told her that he could not invest in her plans to rebuild America because the decision had been made to take America down and pull the money out of America. It was just 4 years later that the Department of Defense reported they could not trace 2.3 trillion dollars..
Catherine talked to a friend in New York about genocide at the time Clinton and his co-conspirators in the Republican party repealed Glass Steagall. This allowed deposit banks to behave like investment banks which is to say just like criminals. This exposed us all to unwarranted risk. How could JP Morgan have 90 trillion dollars of exposure in CDS and derivatives without impoverishing both their customers and the pension funds they managed? Alan Greenspan was of the opinion that fraud need not be regulated. That competition would eliminate fraud was not historically evident was of no concern.
In 1999 I began telling my friends that the Federal Reserve bank under Alan Greenspan was going to take America to war. They would begin by tightening money supply well in advance of the elections to drive down the stock market to guarantee Bush’s victory over Al Gore. Both Gore and Bush Sr. were members of the Trilateral Commission headed by David Rockefeller and Sir Evelyn de Rothschild. It was felt that George Bush would make a better war leader..
It was 20 years prior to that when I had told my friends at the lab back in Boston that David Rockefeller and Sir Evelyn de Rothschild wanted America to lose World War III. I had concluded this would eventually happen when I was a child after having read a small booklet explaining the dangers of money as a debt. I was shocked to learn that adults would allow such a thing as a bank to exist. I discussed the matter with adults in my neighborhood. Those that grasped that inflation was built into our system knew it would destroy us. But they all wanted to run out and buy real estate to profit from the coming societal collapse.
Lincoln and Kennedy created money as credits without first requiring a debt to be issued as did our ancestors with colonial scrip prior to the Currency Acts of King George. Lincoln and Kennedy were assassinated to keep us in Debt Slavery. As a child, I calculated that interest could not be paid without creating huge amounts of unpayable debts. By 2000 I could see World War III coming. It would serve the purpose of killing us so we could not ask for the return of the money the bankers had stolen from us..
Catherine realized the numbers she was seeing in the economy meant that Wall Street was making no provision for us to live long enough to collect our pensions and redeem our savings. This startled and pushed her into calling a friend to drive hundreds of miles to discuss her findings in a New York restaurant. People at her level are only allowed to talk privately. Her friend had come to the same conclusion that Wall Street intended to kill us.
If you are familiar with my background and writings, you will understand that the US military will not allow this to happen. In the Middle Ages the Catholics in England had no army willing to defend their property so they lost everything. Wall Street has no armies willing to die to defend them and the money they stole from us.
The article below covers the topic of Wall Street stealing our money and using it to buy real American assets for pennies on the dollar. .
Catherine Austin Fitts: The Black Budget And The Leveraged Buyout Of The World Using Stolen Mone.
The video below is an interview in which Catherine explains this in one setting. Please pay attention when she talks about reform, transparency, food and slavery. Your life depends upon your ability to spread the truth about what she is saying..
By Bob Chapman
Cycles and booms and busts just don’t happen. They are planned that way. In the late 1990s Fed Chairman Alan Greenspan commented on irrational exuberance and said he hoped the market would cool down. The amount of money and credit he had introduced into the system had a great deal to do with a forming of a bubble. He indicated that on the short-term there was little he could do about it, when all he had to do was raise margin requirements from 50% to 60% temporarily. We wrote about the solution as a coupe of other writers did, but no one really wanted to take away the dotcom punchbowl. In late March of 2000 the market began its collapse. We removed our subscribers out of the market in the first week of April, as did Joe Granville, a friend and one of the best market timers ever.
Sir Alan Greenspan spent almost 20 years serving his masters who own the Federal Reserve, JPMorgan Chase, Goldman Sachs, Citigroup and many more. The Fed has no independence – it takes orders from these banks and brokerage houses. This same group controls Congress by paying off 95% of the representatives and senators via campaign contributions and via lobbying. Thus, with the assistance of the Fed, Wall Street and banking, they not only control money, supply, credit, interest rates and Washington, but they control our entire economic and financial scene and the lives of every American. Booms and bubbles can be blamed on politicians, but the real culprits behind the scenes are Wall Street and banking in which we spent 29 years of our lives and for many of those years owned our own firm. If you do not know and understand these realities you should not be an investor or a financial and economic journalist. Our whole existence as a nation is controlled from behind the scenes by parsonages and groups most people have never heard of. All of what you see just didn’t happen; it was planned that way. People must understand that creating money out of thin air to fund astronomical deficits has to end in failure and ruin. We are now in an inflationary depression that will probably graduate into hyperinflation and then descend into a deflationary depression. This is what these elitists have done for centuries and have more often than not gotten away with it. This time it will be different.
We started warning people more than 50 years ago that the path America was taking could only end in tears. The days of inflation and social and political misery are finally upon us and as a result, so is social dislocation worldwide in the form of protest, demonstrations, civil wars and the overthrow of governments. We are not witnessing that in North Africa and the Middle East. This has been in reaction to dictatorial governments, low wages, high prices for food and few jobs. As we have said over and over again, revolutions begin with empty bellies. What you are seeing will not be limited to the third and second worlds, but to the first world as well. the elitists have again gone too far and the people of the world are reacting. This is only the beginning of dramatically higher food prices and perhaps oil and gas prices as well. Governments cannot help, nor can the elitists behind the scenes for all intents and purposes, saving the system is now out of their hands and what they have done has been discovered.
Most countries have followed the path of the US, UK and Europe, accumulating deficits many of which are unpayable. Essentially the world banking system is bankrupt. The Fed and the ECB buy debt and toxic debt as well as sovereign debt; the funds used for this purpose are created out of thin air. Sooner or later there will be a major worldwide meeting to revalue, devalue, and to multilaterally default. This can be the only solution to 40 years of profligacy and fiat currencies. The present cover-ups by central banks, Wall Street, banking and the City of London won’t last much longer. Unemployment worldwide and higher inflation are worsening and can only end in social and political dislocation. How can a government such as the US continue to spend in excess of 60% of revenues and expect others then the Fed to purchase their bonds? Spending has to be cut and taxes raised over a five year period. If that doesn’t happen and we get QE3 and more stimuli there will be ever more inflation and debt. Finally there will be financial collapse.
Bob Chapman is a frequent contributor to Global Research. Global Research Articles by Bob Chapman
I woke this morning to one of the most-disgusting displays I’ve seen in years on CNBS: Alan Greenspan.
The rough paraphrase of what I woke to was this:
"If you disregard the currency dislocation we’ve created, the commodity price spike we’ve created (with our money printing and this the currency dislocation) and the worldwide currency problems (particularly in the Euro) then the economy is very strong."
You can’t make stuff like this up – it’s like shooting yourself in the gut and then commenting "My health and prospects for the future are exceptionally bright…. except for this little flesh wound (which I just inflicted on myself.)"
But Greedscam does one better with his new "paper" published by the CFR, in which he lays on the table a raw excuse for lack of capital investment predicated on what he considers to all be "regulatory uncertainty."
This of course is why we have the corporate leverage index that is in the stratosphere, as I’ve repeatedly reported on – it’s not that corporations are in debt up to their eyeballs, rather it’s that corporations refuse to spend because it’s all government’s fault.
There’s certainly plenty to blame government for. But it’s damn hard to argue that on one hand corporations won’t make illiquid investments (e.g. in property, plant and equipment) because of government regulations but they will go in hock up to their eyeballs in the same environment.
Why? Because going in hock up to your eyeballs is also an illiquid decision. That is, to get out of hock you need both earnings and time in order to pay down the debt, and if you fail to do so you go under. So in a sense such a decision is the same in terms of evaluative criteria as is illiquid capital investment.
Greedscam of course doesn’t see it this way. That might be because he’s a central banker (retired) and throughout his tenure entirely ignored the "debt" side of every transaction – kind of like the "Deficits Don’t Matter" folks. The fraud in this sort of view of course is that balance sheets are called that because they do in fact balance.
There are academic papers that I read and chuckle at and then there are those that I read slack-jawed in awe. The latter show a the blind spot the size of Jupiter that the writer must have, assuming that his expressed views are not intentional misdirection.
Illiquid CapEx is not dead because of government regulation. It is dead because corporations are in debt up to their necks and it is demonstrably unsound for them to take on any more debt in the form of additional illiquid assets. With plenty of plant and equipment to produce for today and an environment where one can offshore to China and evade any sort of labor or environmental regulation there’s no reason for them to buy anything of the sort.
Of course nobody wants to raise these issues. Nor does Greenspan want to talk about how The Fed is causing the very dislocations that are now arising. After all, 100% price inflation in two year’s time over in lands with per-capita GDP under $2,000 couldn’t possibly cause riots and political dissent, could it?
I know, I know, these nations can simply "depeg" and manage their own currencies. That’s a very nice sentiment. If it happens then we are no longer a reserve currency as the entire predicate on which this status rests is the worldwide oil production and settlement system. China is not the issue, Saudi Arabia and the other oil producers are. The seigniorage premium we enjoy in the United States is not a birthright and losing it is likely to cost our nation 25% of our standard of living – or more.
And by the way, if The Fed doesn’t cut this crap out that’s exactly what will eventually happen. But no nation has ever devalued it’s way to prosperity, nor has it borrowed its way there. Both of those paths lead directly to ruin. It’s not "inflation" I’m concerned about in this regard it’s the destruction of the wage base – and that trend is accelerating. That destruction inevitably feeds back to government revenue which in turn collapses the ability of the government to fund itself, since the only backing that government borrowing ever has is the promise (and ability) to tax the citizens tomorrow.
There was an interesting comment made by Bernanke in his Congressional testimony related to the Gold standard. If you remember I have often said that the gold standard is not a panacea – while it produced long-run price stability (actual stability) it did so at the cost of extreme short-term fluctuations in value. Since people cannot plan short-term events this could and often did bankrupt people not due to bad planning or speculation but just due to plain old bad luck intersecting with these fluctuations.
But one thing Bernanke didn’t get asked (and unfortunately we do not have anyone in Congress with the brains to follow-up on the line of questioning that was begun down that road) is how Bernanke can square price stability with a 2% (or 3%, which is what it has averaged) annualized inflation rate. That sounds stable but in fact it is not – over an average 45 year working life (20 – 65) this represents an increase in prices of one hundred and forty-four percent!
The saved funds from your youth? They’re devalued by sixty percent.
How does this meet the alleged Fed mandate that Bernanke claims he is sworn to uphold – and both has and will, along with his predecessors?
All we get from Congress in following up on the essential underlying question – the one question that matters – is crickets…..
That might be because Congress is dumb, or it might be because if that discussion point were laid upon the table then this chart might come out and a squirm-fest would shortly ensue.
by Jim Willie CB
With the advent, then the continuation of the Quantitative Easing exercise in hyper-inflation and capital destruction, the US Federal Reserve has perhaps taken its deeply damaged reputation as a central banker and decimated it into shreds. They have lost the respect of the world, more so outside the nation’s borders than inside. The financial sector and politicians seem unable to stop showing deep reverence for the post, even licking the Chairman’s boots whenever he appears before the USCongress. Recent hints of contempt in WashingtonDC are encouraging. He has not made a single correct forecast on major items. The USFed in short has lost control. See the rising bond yields, which torpedo the housing ship, badly listing as a derelict vessel. The USFed seems thoroughly content to rescue the big US banks, whose wretched condition cannot possibly be rectified, even if such a rescue results in global price inflation and revolts. The decision made after recognition that a recent QE chapter has failed is clearly to repeat it. When QE2 is exhausted or deemed a failure, expect QE3 at the doorstep. This behavior exhibits insanity. The February package of Hat Trick Letter reports includes a special report entitled “USFed as Agent of Destruction” that elaborates on the deep damage.
The USFed balance sheet reads like a Fannie Mae lookalike, with perhaps $1 trillion in negative value, if priced to market. No wonder they altered their rules for a major dump on the USDept Treasury. The next chapter should see a default in USGovt debt, as it spirals out of control, supported mainly by the monetization engines, the stuff of hyper-inflation. Meanwhile, back at the inflation farm, a widening array of economic mythology has sprung up, replete with nonsense and deep deceptions like shallow walls to defend the monetary press. The new myths extend from the standard Second Half Recovery dupe, the Jobless Recovery insult, the Green Shoots absurdity, and the Exit Strategy refrain that ushered in QE2. The inflation engineers must defend their craft, which has destroyed the USEconomy and rendered its banking system insolvent, as well as households. By the way, Ben aint no Atlas, holding up the world. He aint no Poseidon, controlling the oceans and all their liquidity. He sure aint pretty like Aprhodite neither, even though his bust might serve as a fine pin cushion. Hey! Don’t mention pins when standing near the USTreasury Bond bubble!
CLIMAX GRAND DECEPTION
The Hat Trick Letter has warned fully and repeatedly. The price inflation that has begun to show itself in clear terms will be passed off with pure economic deception, and extreme statistical fraud. The effect of higher prices will be called economic growth. The price inflation within the adjustment process with full motive will grossly under-estimate the actual rising price rate. Therefore, the adjustment off the nominal economic activity will be grossly inadequate. The 10% to 12% price inflation will be called 3% to 4%, and thus a 6% to 9% error in the Gross Domestic Product will be made. The consequence will be that a powerful recessionary surge downward will be called a positive 4% to 5% GDP growth. Credit goes to the stat rats who betray my field of expertise. The deception will calm public fears on the highly destructive effects of Quantitative Easing #2 and its price inflation side effects. Actually it is more like direct effects. No longer are the QE1 effects isolated to excess bank reserves held by the USFed. They were not excess anyway, since US banks simply held their loan loss reserves at the USFed. The main point is that price inflation will rise sharply, called economic growth, a process already begun. The USGovt and Wall Street handlers will ignore it, under-state it, and herald the return of growth as success of policy. The reality will be less growth, in a deeper decline into recession. It has been my contention for the entire seven years of the Hat Trick Letter that the topic of inflation has been the most egregiously misunderstood and most common used deception device used against the American people, as the USEconomy has deteriorated in grotesque fashion for 20 to 30 years. They have been told to hedge against that inflation by home ownership, which has backfired in a national catastrophe. The underlying cause of the deterioration is massive monetary inflation and price inflation, manifested structurally as an over-priced US labor market that has sent jobs to Asia since the first migration phase to the Pacific Rim in the 1980 decade. The semanal event was the Vietnam War, which urged the broken Bretton Woods accord.
SCATTERED SUPPORTING DECEPTIONS
The justifications, explanations, and clever deceptions have been and will continue to be widespread. They are many, like singers in a chorus, each with voices like Sirens leading men and their ships to the rocks and a watery grave. Destruction awaits those attracted by their serene tones. My ear is tuned to detect them and to record their many deceptions. Let’s touch on the wrong messages made on the US Public Address systems one at a time and dismiss them. They are trumpeted by the USGovt, by the Wall Street bank staffers, by the USFed Chairman and most Board members, by the US Financial press, by the market mavens, and by numerous others, all of whom did not foresee the wreckage and charred ruins like the burning of Troy. To be sure, the principal player was Alan Greenspan, whose charisma and eloquence made him the Helen of Troy for our modern day. Both his visage and utterances more resembled Mr Magoo.
- A) Rising prices are proof that the USEconomy can handle the higher costs. Not true! They are an indirect effect of massive monetary inflation, as surplus loose money sloshes until it makes higher priced items. A direct effect comes from a falling USDollar in whose terms commodities are priced.
- B) Rising commodity and material costs mean more profits all around. Not true! The exact opposite is the case, since profit margins are being squeezed. Businesses are making this statement openly.
- C) Rising prices mean the USGovt and USFed stimulus applied is finally working, as the system is coming alive. Not true! It signals the arrival of the nightmare, in the form of price inflation that the banking leaders said would not arrive. They boasted a year ago that the monetary inflation would not have a spillover effect. That spillover effect is precisely broadly rising prices, most evident in food & energy. Witness the spillover.
- D) Rising prices mean final demand has arrived, which is pushing up the prices. Not true! Final demand remains weak. Businesses do not anticipate a big rush of new demand, as their business investment is modest to non-existent. Consumers are strapped with weak income and no more home equity to raid.
- E) The USEconomy is least vulnerable to price inflation effects, since strongest and most resilient. Not true! The chief export in recent years from the United States had been mortgage bond fraud, along with the usual fare of USTreasury Bond empty paper. The chief export in the current period is commodity price inflation. The USEconomy remains a major importer, and thus will import the price inflation, a process already begun with both commodities and finished products. The US is the originator of massive monetary inflation. Since its economy is deteriorating and stifled, the resilience is born of weakness. Its back door will usher in that price inflation.
- F) The housing decline has kept prices in check from powerful deflation effects. Not true! The housing decline has guaranteed that the rising cost structure cannot be handled by the entire system. With the resumption in housing price decline, the insolvent banks will grow deeper in insolvency, while the households will fall more broadly into insolvency. Demand will not meet the higher prices required by corporations to even remain in business. Watch more job cuts and business shutdowns, since they must but cannot pass along the higher costs to customers.
- G) Higher prices in the stock market is prologue and harbinger for the growth of the USEconomy and corporate profits. Not true! The massive monetary inflation has spewed new phony money into the system. It leaks through an array of sieves. It finds paths of least resistance. Almost no resistance exists toward the stock market, especially with the Working Group for Financial Markets openly pushing up stocks, no longer in hidden fashion. The USDept Treasury finally admitted as much.
- H) Being a food producer, the USEconomy does not see rising food prices. Not true! For five years, the USEconomy has turned into a net importer of food products, although only slightly. The farm sector has seen their costs from diesel and other energy sources rise uniformly. The farm end product prices (like corn, wheat, soybean, cotton) are controlled on the commodity exchanges, not by farmers. So higher product and costs mean much higher prices at the US dinner tables.
- I) Rising producer costs is obvious. The miracle of not ending up in final product prices results in success of the system. Not true! If final products cannot have higher costs passed on, that means the businesses suffer important profit margin squeeze. In parallel, the lack of job or income growth means that households suffer important squeeze also on discretionary spending. The squeeze is systemic, not a success, resulting in lower demand and business layout cutbacks.
- J) Jobs will come eventually. Not true! This propaganda mantra is losing its mojo totally. Be prepared for a brief rejoice followed by the horrors of recognition that the USEconomy is suffering from broadbased price inflation and continued powerful deterioration. Monetary inflation destroys capital, a concept our clueless cast of economists cannot seem to conceive. In response to failure from monetary inflation, they order more in higher volumes. Prepare for QE3.
MORE SUBTLE CON GAMES
Homes turned out to be leveraged financial assets after all. Notice that the housing sector is not rising in price, as almost every commodity in the universe is rising rapidly, from rice crude oil to gold to cotton. Actually gold is not a commodity, but rather MONEY, being pursued as the global monetary system fractures and crumbles. Some Jackass warnings went back to 2006, calling the home nothing but a leveraged futures contract that had no callable feature for banks, but offered renewable reloads known as refinances. Along with a drawdown in account balance (home equity) came a foreclosure notice to millions of unwary investors. So much for the American Ownership Society! It was more like a siren call to the marginal buyers and minorities to lose all their life savings. The great majority of victims never read the great warning by Thomas Jeffersona about banks.
The clueless cast of US economists have lost their way so badly that they no longer comprehend legitimate income. They insist on USGovt programs to put more cash in people’s hands, from tax credits, jobless benefit extensions, home equity loan interest deductions, anything to put green in grubby hands. Talk of helicopter cash drops never materialized. The economist and bank leaders never seem concerned about the origin of money put in hands. They seem ignorant that credit extension and monetary inflation are almost always the source. They US economists ARE totally ignorant of the founding principles of capitalism, led by a mindless stream of expectation indexes. They fund elite bankers, redeem fraud-ridden bonds, create liquidity facilities to grease the debt system, erect channels for corporate paper, bail out dead corporations, feed the Working Group for Financial Markets in their stock market support, reload JPMorgan after the Lehman killjob for more commodity market price suppression, and much more. All these devious endeavors are funded by funny money or tainted money. Nowhere is open debate about a grand revival of US industry, a return of factories to US shores, a reversal of the PacRim outsourcing that reached a climax with the Chinese low-cost solution, followed by the current national insolvency. The nation has lost its way on basic capitalism, whose mantle China has picked up from the ground. Their many factories produce not only shiny useful products, but legitimate income. The clueless cast of US economists would do well to read basic textbooks on capitalism, capital formation, and the other cycle. It starts with business investment, then hiring, then value added, then worker income, then consumer spending. The United States must shed its devotion to asset bubbles and the Virtuous Cycle espoused by the USFed, which ends in systemic ruin, a ruin they cannot even recognize.
The recent history of enforcement against insider trading and excess speculation is criminal. Its pursuit of insider trading reads like a cheap spy novel. Right after the Lehman failure came attacks by Wall Street firms against their own hedge fund clients. Their trading investment positions were open to see. Wall Street banks cut the credit lines on hedge funds with prominent long positions in assorted commodities, including crude oil, gold, and silver. The attack was complete and vicious, leading to widespread liquidations. Many commodity prices fell hard. Obviously, Wall Street firms gobbled up the positions forced into liquidation on margin calls. The attack was followed by a ban on shorting the big US bank stocks. An exception was granted for Goldman Sachs, since they were busy doing God’s work. My guess is their god is money, and their lord breathes fire not love. The last few months have seen a sequence of arrests and prosecutions against insider trading, except that no Wall Street firm is implicated. Those conducting the investigations are of Wall Street pedigree, to be sure. In my view, moves against insider trading are disguised attacks against Wall Street competitors and opponents to the heavy handed naked shorting of important commodities led by the titans in South Manhattan.
Not a single effective prosecution took place after the May 2010 flash trading controversy, despite ample evidence that the malfeasance went far beyond insider trading. The illicit practice involved raids of the trading exchanges, deep looks at the order stacks, and front running of placed positions. The SEC and CFTC investigators should take a closer look at JPMorgan and Goldman Sachs orders placed in front of the actions taken by the Working Group for Financial Markets, aka the Plunge Protection Team. Furthermore, investigators should take a closer look at the common Wall Street practice of naked shorting of USTreasury Bonds. The evidence lies in the nearly $1 trillion in Failures to Deliver in the bonds. The inventive Wall Street firms found a way to produce instant liquidity from which they fund a large portion of their business operations, like meeting payroll and covering overhead costs.
A high paradox is kept a dirty secret by the USGovt and USFed. Low interest rates hurt savers, to be sure. However, the low prevailing interest rates actually slow down the USEconomy, not stimulate it. The total typical income from savers through bank CDs and bond fund income is in the neighborhood of $850 billion annually, in usual times with normalized bond yields. Compare that figure to the estimated $620 billion paid in interest for consumer loans, student loans, and revolving credit also in usual times. Higher bond yields put more legitimate income in the hands of savers, which more than compensate for the higher interest payments made. This grand deception must be kept quiet. The Wall Street fraud kings want that 0% rate, since it fuels their USTreasury carry trade. Free money can redeem their disastrous errors that tarnish balance sheets. It produces income without work, the great advantage of the elite.
SILVER BREAKS LOOSE OF GOLDEN LINK
Numerous are the important events taking place behind the curtains, behind the closed doors, the stratospheric ploys, under the cover of intrigue. They are reviewed in the Hat Trick Letter issues with analysis. China is gobbling up COMEX gold & silver, draining the London supply chain. The widely done but hardly publicized practice of settling COMEX precious metals contracts in cash with a 20% bonus has caught the eye of many. So gold & silver contracts contain little metal anymore, mainly paper. The recent tactic of building Dollar Swap Windows to gobble up Southern Europe sovereign debt at discount by the Chinese was outlined in the last article. They will likely convert much of those ruined bonds to gold bullion, with the aid of the IMF harlot. A global shortage of silver has grown acute. Several nations have announced skyrocketing silver coin demand, and outright shortages at the official mints. The latest tactic reported by intrepid analysts is that China has been gobbling up SPDR shares from the GLD gold exchange traded fund. They intend to convert GLD shares directly to gold, according to the London Deep Throat broker. Massive deliveries of gold bullion from this SPDR, managed by HSBC, have been reported in recent weeks. Gold bullion is exiting the fund inventory vaults in high volume, an order of magnitude greater than only two to four months ago. Apparently, the Chinese have noticed a faster method to acquire vaulted gold than the COMEX. Central banks in the Eastern world are loading up with gold bullion, not reporting all their accumulation, as they prepare and executive the Paradigm Shift. Power will move eastward. An excellent source informs me that China is accumulating gold at least 5x faster than the official figures indicate, maybe up to 10x faster. Russia posts some official numbers, more as chicken bones tossed before the feet of conmen. These topics are analyzed in the private newsletter Hat Trick Letter reports.
While the silver price leaps toward its high at $31/oz with reflex ease, the gold price struggles. My long held belief has been that on the Supply side argument, silver beats gold, and on the Demand side argument, silver beats gold. My forecast has been and will continue to be that the gains in Silver price will be around triple to the gains in the Gold price, due to tremendous shortages and colossal demand. So far, so good since last summer. It is my firm contention that China has been very busy buying silver. They probably are motivated by yet another USGovt betrayal. The Most Favored Nation status granted to China in 1999 apparently had at least two possible important components. In return for diverse industrial buildup, direct foreign investment, and shared technology, China appeared to have promised years of deep USTreasury Bond support. The side deal demanded by Wall Street appears to have been a large lease of Gold & Silver bullion left over from the Mso Tse Tung era. Recent demand for its return by the USGovt to China, as part of the lease contract, appears to contain a betrayal. Wall Street sold the leased hoard into the precious metal market, so it appears. To those who dispute the allegations, take note of the track record of profound fraud by the Wall Street banksters. Sale of the Chinese gold & silver came during and after sale of Fort Knox, and sale of the European swaps as well.
The Silver price has advanced handsomely since July 2010. Its gains have outdistanced those fo Gold. In the last two weeks, the rebound for Silver has embarrassed that of Gold. Thanks to Adrian Douglas for the fine chart, not showing the dimension of time but instead the paired prices of Gold & Silver. The chart exhibits clearly the falling Gold/Silver ratio. He wrote, “This update of my previous work adds more fuel to the fire that the dynamics of the silver market have dramatically changed. Because silver has been suppressed for so long we do not know what its free market price should be, but we are going to find out soon. I strongly suspect it will be many multiples of the current price.” Here, here!! Bring it on!!
February 10, 2011
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
From subscribers and readers:
At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.
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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com. For personal questions about subscriptions, contact him at JimWillieCB@aol.com
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Jim Willie CB, editor of the HAT TRICK LETTER
Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
All the Devils Are Here: The Hidden History of the Financial Crisis by Bethany McLean and Joe Nocera
Hell is empty, and
all the devils are here.
-Shakespeare, The Tempest
Bethany McLean made her bones as the author behind the Enron book, Smartest Guys in the Room; Joe Nocera is a prize winning journalist who covers business for the NYT (previously he covered busienss for Fortune and GQ).
The book asks who should shoulder the blame for the crisis: Wall Street, Main Street, or Pennsylvania Avenue? Do we heap scorn on greedy traders, misguided regulators, sleazy subprime companies, cowardly legislators, or clueless home buyers? All of the above-and more.
–The New York Times Book Review
Not for a page do the authors let any political theory or party off the hook as they deftly weave arguments, refutations and facts upon facts in this gripping account.
–The Associated Press