End the Fed march in NYC, November 2008

The crash continues and worsens.  The Republicans didn’t buy the Bank Bail Bill II but then, they only go on wild spending sprees when a Republican is President. Then, become Scrooges when a Democrat is President.  Yesterday, in one of the most important speeches of the 21st century so far, Putin warned the US to not do what we just did.  But perhaps Benanke and Geithner did take Putin’s warnings to heart!  Look at the news from the last two days, concerning the buying of long-term Treasuries.First, yesterday’s headlines in the morning: Worldwide

Fed Keeps Rate Near Zero, Is Ready to Buy Treasuries 

Everyone who needed to park loot were very happy when they saw this news.  The Treasury and the Fed would be the one and the same except this meant, both would be run by JP Morgan, etc, all those stupid, nasty gnomes.  There was a microsecond of fear that Geithner’s warnings about lobbyists would cause harm to these greedy little monsters.  But Obama’s selection of a Goldman Sachs lobbyist to be the #2 slot settled these fears.  Time to party!  Hooray for gnomes!


But something slipped between cup and lip.


TREASURIES-Bonds tumble as Fed refrains to buy long debt | Markets | Bonds News | Reuters

U.S. Treasury debt prices tumbled on Wednesday after the Federal Reserve refrained, for now, from buying long-dated government debt, disappointing investors who hoped for a bold move to help a fragile economy.

The Fed’s perceived caution led to a sharp sell-off in Treasuries, particularly among long-dated issues. The 30-year bond resumed its recent price decline, falling for seven of the past eight sessions. The 30-year yield briefly broke above 3.46 percent, the highest rate since Dec. 1.

“What was disappointing to some traders in the market is that…they are talking about buying them but not actually doing it,” said Stuart Spodek, co-head of U.S. fixed income with the BlackRock Fixed Income Portfolio Management Group in New York.

It was all talk!  HAHAHA.  Our entire financial systems and soon, much of our economic systems are being rapidly nationalized.  Without giving control over to the State. This is the exact reverse of what is going on inside Russia. Putin is actively running down and taking over all the important systems in Russia.  He isn’t going to bail out the oligarchs.  He is killing them off.  Literally.  Like the Chinese, he believes that these gnomes need to be on a very short leash or with a bullet in the back of the head.


I have called Bernanke ‘the Sphinx’ in the past.  He came into office, lying about being open and forthright.  He claimed, he would be different from Greenspan, the oldest of the old toads who believe still in ‘free trade’ and ‘fluctuating monetarism’.  Unlike Greenspan who mostly talked backwards and made little sense as he screwed up things more and more, Bernanke is using the old ‘outright lying’ tool.  Say one thing and then do the opposite is pretty cool but also sends more fear down gnome spines and now everyone trusts no one and this is fitting.


This is what we call, ‘a falling out amongst thieves.’  Congress is busy trying to undo the mess and this is causing more fear in grossly overextended banking gnomes. Worldwide

U.S. Draft Law Would Ban Most Trading in Credit Swaps 

Draft legislation that would change how over-the-counter derivatives are regulated might prohibit most trading in the $29 trillion credit-default swap market.

House of Representatives Agriculture Committee Chairman Collin Peterson of Minnesota circulated an updated draft bill yesterday that would ban credit-default swap trading unless investors owned the underlying bonds. The document, distributed by e-mail by the committee staff in Washington, would also force U.S. trading in the $684 trillion over-the-counter derivatives market to be processed by a clearinghouse.

There has been this move online to try to justify CDS markets.  One big, fat lie is to claim, there is no $684 trillion time bomb in the center of these markets!  One thing is certain: when any market or banking system suddenly shoots straight to the moon, when it rapidly becomes a ‘hockey stick’ graph as it doubles every two years, we are seeing something that is dangerous and should be made illegal.  


Back in 2002, it was painfully obvious that the CDO markets were a rigged game, a Ponzi scheme.  I called it this from day one, on my blog.  It is such a snarly ball of twine, unwinding it will be nearly impossible.  This business has to be eliminated roughly, Putin-style.  Putin even suggested this yesterday in his epic speech.  The fact that Congress will ‘prohibit most trading’ shows us that the entire business is a wretched fraud.


It supposedly was to eliminate risk.  Instead, it caused an explosive growth in risk.  Anything that eliminates risk will cause it to explode because the perception of risk leads to caution and if there is no perceived risk then caution is thrown to the winds and wild speculation and lending takes off like a rocket.  Between ZIRP from the Japanese carry trade to the CDO markets eliminating the perception of risk, we had the biggest global credit bubble in history.  Never, ever has one grown so fast and so deadly!


Will governments’ fiscal stimulus plans work? | Big government fights back | The Economist

Emerging economies are spilling less red ink, both because their banking industries are in less of a mess and because their stimulus plans, in general, are smaller. But they, too, will shift from a budget surplus in 2007 to a deficit of 3% of GDP. All told, public-sector debt is rising at its fastest pace since the second world war.

Most economists agree that the red ink is both unavoidable and appropriate. To prevent a steep recession becoming a depression, governments must step in to forestall financial collapse and counter the slump in private demand. Financial markets seem to agree. Yields on government bonds in most rich countries are extremely low as shell-shocked investors clamour for the safety of public debt.

Yet a few signs of skittishness are emerging. Prices of credit-default swaps on sovereign debt have risen sharply, suggesting that investors see growing risks of default. Within the rich world, risk premiums have risen dramatically for already-indebted governments such as those of Greece and Italy. Yields on America’s 30-year bonds saw their biggest jump in two decades in mid-January, as investors fretted about Uncle Sam’s demand for cash.

Normally, the G7 economies take a very nasty attitude towards third world country finances.  We use the World Bank and the IMF to hammer these unfortunate countries into the ground and steal all their natural resources and enslave them to pay off ‘rescue’ loans.  For the last two decades, many people have campaigned for an elimination of these debts.  But the US always vetoed this.


Now, thanks to the cruel rules of the US warmongers who run these banks, the third world is much stronger than the first world and is not the cause of this collapse.  True, they will now be hammered by the messes created by the US and UK .  But they didn’t make this baby!  They might be victims of it, but they didn’t cause it.  The US and UK should be severely punished for creating this mess.  Instead, we want to slip the noose by even wilder public spending and stealth nationalization of everything so that the debt is removed from private hands and dumped on top of the US government.  Then, the hope is, the US can default on these debts and voila!  End of the mess.


Or rather, the US can cut the value of the dollar by over 50% in one day as we have done in the past.  Ask Nixon’s ghost about that!  He did it on a weekend, secretly!  My parents were stranded overseas and the State Department said, ‘Too bad, we can’t send you double the money right now!’  It was a frightful mess.  Now, let’s look at many headlines:


Orders for Durable Goods in U.S. Slide 2.6%, More Than Economists Forecast

Ford Burns $5.5 Billion in Cash, Taps Revolving Loan After Worst Loss Ever

U.S. Unemployment-Benefit Rolls Surge to Record; Initial Claims Increase

Treasury Said to Back $60 Billion Plan to Revive U.S. Student-Loan Market

Pimco Says U.S. Must Support Asset Prices for Economic Recovery Next Year

 Policy makers must stop declines in asset prices to revive the U.S. economy in 2010 and curb rising unemployment, according to Bill Gross, co-chief investment officer of Pacific Investment Management Co., the world’s biggest bond fund.

“You can’t bail out everyone, yet economic recovery is not possible unless certain critical asset sectors are not only reliquefied but rejuvenated in price,” Gross wrote in his February investment outlook posted today on the firm’s Web site….

Policy makers should purchase municipal bonds, commercial mortgage-backed securities and investment-grade corporate bonds as a “necessary step towards eventual economic revival,” Gross wrote.

“The prior administration’s focus on the banks has been critical but unidimensional,” he wrote. “The shadow banking system with its leverage and financial innovation powered a near 25-year global economic expansion, but it is the delevering of those hidden quasi-banks that is now threatening its petrification.”

All signs of a Great Depression.  All the economic indicators are slowly falling to Great Depression levels.  We passed the Jimmy Carter contractions, the Nixon contractions, the end of Eisenhower contractions and now, the only things we can compare this to is the Great Depression’s contractions.  


What Red Ink? Wall Street Paid Hefty Bonuses

Despite crippling losses in 2008, financial employees in New York collected an estimated $18.4 billion in bonuses for the year.

But no contraction of money going to gnomes!  What a stunning thing this is!  A bunch of goofy, idiotic and utterly reckless gnomes are still being rewarded with bonuses for screwing up the entire planet’s financial systems!  What a wonderful world it is, if you are a heartless, vicious creature!  I always thought, bonuses were profits.  Not hand-outs from Uncle Paulson and Uncle Bernanke.  Geithner better demand every penny of these faux bonuses be handed back to the US taxpayers!  This is, as always, an outrageous crime.  Arrest them all.  Just arrest them!  And take that Madoff creep to jail, too.  More about HIM later.






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Filed under .money matters, Politics


  1. nah

    heh treasuries… if they ‘squish’ the dollar 25% everyone who bot those bonds for the last 10yrs is gunna take quite a bath, guess that would possibly make it difficult to get financing if your assets get openly squandered by govt… but then again it happend to everyone else… lets all get a safe govt job promising the world to anyone who will listen so we ‘ride’ the private sector to personal glory
    leave no personal glory

  2. nah

    we are all US finance asset classes now

  3. Gary

    We should make a funny video of Geithner as
    Lawrence Welk. “Vere is da bubble macheen?”

  4. leavingtheoffice

    “Russia and Iran Get Strategic” byCol. Sam Gardiner, USAF (ret.) | January 27, 2009

    It appears that the think tanks are beginning to acknowledge that the game has changed.

  5. PLovering

    A year or so ago, Putin said, “Any attack on Iran would be considered an attack on Moscow.”
    And the MSM yawned while the Lizards stepped up their plans to attack Iran.
    Come the metromediasexuals (MMS) begging the Lizards to reconsider their plans to attack Iran. “Take us instead” they screamed, “But please don’t attack Iran.” And the Lizards told them to go fluck themselves, that they were attacking Iran the next morning at 7:32 AM on the dot.
    The MMS and Lizards have labored to unscheduled Iran attacks at least 6x since Putin gave his ultimatum.
    Clearly, the Lizards don’t give a damn what Putin says.

  6. openly hidden

    i am sure glad i lived when i did….at least i have happy memories of country “road houses” and gracious southern poverty striken beauties. this is going to be so interesting to watch….and most likely horrifying. i wonder how “expendable” old hippys and cultural warriors from the 1960’s are going to be in whatever passes for the new world order. i wouldn’t have thought our end would take this form in a million years! i wouldn’t miss this for anything.

  7. DrKrbyLuv

    Nationalization without representation – the people object!
    Why are the banks needed anyways? They loan money that they create on the spot, solely backed by the people and assets of the country.
    Banks are parasites, from the central banks to their satellites – they contribute nothing and take the largest measure of borrowing transactions.
    No banks are needed, money should be loaned interest free – endowed with the value of the asset purchased and secured by it’s collateral.
    A bank should simply be compensated with transaction and service fees – no interest!
    Any nation that allows private banks to issue and control their currency – is in fact a client state to usury.

  8. GK

    OK, I have come to the conclusion that all this back and forth on various strategic option is just a large PSYOP to allow speculative traders to make enormous profits.
    If you purchase a stock in the S+P 500 you are REALLY LUCKY if you can get it to pay a 2% dividend…A YEAR.
    But if you went long on the 2% Obama Bank Bank news yesterday, and short on the -2% Bad Layoff News today, you would have made 4%…IN TWO DAYS.
    If you look at the breaking news on Reuters, controlled by the same central banking crime families, you see that it is 100% uncertainty (like 50% red, 50% green on Roulette) as to which of the “menu of options” they choose, and the result will be enormous profits to who ever speculates correctly. Guess who will.

    “White House plans to role out menu of options next week to stabilize banks, including government-run “bad bank”: source”

    “Obama administration still trying to solve valuation issue of how to price distressed assets sold to “bad bank”: source ”
    The whole stupid Citibank Jet thing was just a scam to make you think Obama is really cracking down on these guys, when in fact he is dealing up an orgy of speculative profits.
    I have a friend who got KILLED (40% loss) buying Japanese REITS trading for a huge bank, but then clawed most of it back via trading.
    My favorite thing to watch is all the ‘N’ days on the DJIA. This is when the day opens low, spikes up between 10 and noon, crashed down at 2pm, and then start its evening climb to the close.
    Two longs and one short and BAM, its party time tonight after the ORGY of speculative trading.
    This is it. This is what we have become by allowing central banking crime families to inject fiat currency and fractional reserve banking into our once proud country.

  9. Simon

    What is the point of buying the Bank Bill? I thought they printed them?
    It would be like printing your own money

  10. openly hidden

    i agree 100% with drlove. i never did think banks as they have evolved since tittytainment started basically did anything useful at all. why not go to your friendly local credit union or better yet, to your local united states of america owned and operated bank and work with your local government trained and honest-or-else government employee to get your loan in the new bank of the united states money and leave the criminal parasite money changers out of it all completely. and the same government owned and operated bank of united states can finance all the exports/imports too. its insane what these people have done to something not complicated and then they help themselves to everything like pigs. when things were a hell of a lot better for everybody, maybe the top paid management made 20 times what the lowest paid worker made.

  11. CMS

    GK – excellent post!

    Has anyone considered that the stock markets are flawed? Particularly valuations of stocks and companies?

    When such large volumes of equities are controlled by institutions there is the ability to manipulate markets, as GK references.

    I think if we were to start from scratch, in the year 2009, to build FAIR AND ETHICAL credit and equity markets from the ground up they would look NOTHING LIKE THEY DO TODAY.

    Money, Power, Politics, Greed and Evil have worked together over decades to create the markets we have today.

  12. PLovering

    “Turkish Prime Minister Tayyip Erdogan stormed out of an angry debate on the Gaza war with Israeli President Peres at the Davos forum on Thursday.”
    MSM says PM Erdogan was upset with CNNTurk moderator, who denied PM floor time for debate.
    OTOH Turkish PM Erdogan was probably more upset over Israeli’s Mossad plot to overthrow his government last year.

  13. Gary

    Bankers need to be treated like Pit Bull Terriers. They need a
    very stout fence around them (regulations) And unless they
    are to be used for breeding purposes, they should be nuetered
    early. Their owners and breeders (govts) should have to attend
    classes to learn Banker training, safety, and control before they can post an insurance bond for the occassional bad Banker. And the bad Banker needs to be put down and not allowed to perpetuate its genes. Bankers should also NOT be allowed and encouraged to enter fighting arenas. Banker fighting is to be outlawed. They should be used for protection purposes only
    under strictly regulated conditions….RCW 1276.23 Article 4

  14. emsnews

    HAHAHA. Neutering gnomes? Don’t you realize, they live for sex?

  15. Simon

    All males live for sex, that is unfair :)

  16. billibaldi

    To PLovering
    Point of Information, the moderator at Davos between Peres and Erdogan was David Ignatius who according to wikipedia is a jewish-american journalist.

  17. emsnews

    Yes, he is a neo Nazi Zionist of the worst sort. Feh on him.

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