Lehman Brothers Bankruptcy Looms
Elaine Meinel Supkis

The collapsing banking system is nothing but bad news. As we figured last summer, this process will take several years just like the Great Depression. Lehman Brothers and all the bond raters are going under. They deserve bankruptcy. They deserve jail time. Also, world oil prices dropped a few pennies so stocks soared on the hopes that this is the end of the oil emergency. Ha. Talk about dumb. Then there is the business about expanding energy sources: the Queen of England, bless her dark heart, is allowing Parliament to begin building massive wind energy systems off shore. She owns all the shorelines around her kingdom. Not that the British people are very aware of this itty bitty fact.

Lehman Posts Loss and Plans to Raise Capital

Lehman Brothers, in the latest indication of continued turbulence in the credit markets, announced on Monday that it will raise up to $6 billion in fresh capital from investors.

The firm also preannounced its second-quarter results, posting a loss of $2.8 billion or $5.14 a share, far exceeding analysts' expectations that the firm would lose a few hundred million dollars.

In the period a year earlier, Lehman earned $489 million, or 81 cents a share.

The losses came from negative mark-to-mark adjustments, or the loss in the value of an asset and losses from its own trading activities, called principal trading.

Lehman, among the smaller players on Wall Street, has repeatedly assured investors that its marks were accurate and its exposure safe. Now, it looks as if Lehman will join the ranks of banks like Merrill Lynch and Citigroup, which have suffered billions of dollars of write-downs and have been forced to raise tens of billions of dollars in capital.

Looks to me as if the ongoing financial collapse is continuing. The Federal Reserve head met with all the Bilderberg conspirators yesterday. I bet he wasn't the toast of the town. Not that we know anything these scheming, horrid people are planning. I'm certain the founders and the real controllers within the Bilderberg coven are licking wounds. 'My palaces are costing so much to run! We have to do something. The staff is getting surly. Our yachts cost too much to sail what with a crew of 50 and all that overhead!'

Of course, the Bilderbergs with oil are sleek and happy. The ones without this black gold are talking quietly about arranged marriages. After all, this is how they stay in power: via sex.

Lehman Brothers is not the biggest investment house on Wall Street. Neither was Bear Stearns. But they are part of this system and if yet another hole is blasted in the castle walls that surround the rich, this is bad for all of them. They have to hold themselves together to fight off the peasants at the gates! Lehman's stock can't fall much further. Like all the previous entities like Countrywide, as they go down, the ability to raise money to paper over huge losses becomes nearly impossible. After all, who wants to lend money to bankrupts? Citibank is in the same condition. The only reason they are not already history is due to the Arab oil wealth that keeps the entire thing propped up.

This is because the Arab oil lords are not very sophisticated. They really do feel, if they toss enough money into Citibank, it won't be instantly incinerated by raging fires of bankruptcies. I will note that the Japanese have not offered to save any of these institutions. The Chinese bought into these things for the same political reasons the Saudis bought them: for political influence. If the Bilderberg conspirators need Chinese and Arab money to float their yachts, they will eventually do what these money makers ask.

SEC May Ban Moody's, S&P From Structured Consulting

The U.S. Securities and Exchange Commission may recommend this week that Moody's Investors Service, Standard & Poor's and Fitch Ratings be prohibited from advising investment banks on how to earn top rankings for asset- backed securities, according to people familiar with the matter.

SEC staff may also propose at a June 11 meeting in Washington that the companies disclose all the data that goes into a rating so competitors can grade bonds even if they weren't compensated by the underwriter, said the people, who declined to be identified because the rules aren't final. Moody's, S&P and Fitch help design securities backed by a stream of payments, making it impossible for them to be impartial raters, a May 2007 academic study by Joseph Mason and Joshua Rosner concluded.

So ends the Money Machine. Investors depended on a corrupt system to judge risk and fiscal health. They were lied to by these organizations. Now, everyone goes bankrupt. These organizations should also go bankrupt. Good riddance to a bunch of con artists. Actually, they should be put in prison for fraud. If I went about the community telling the level of lies these guys told us on Wall Street, I would be put behind bars. So far, there is little stomach to punish all these criminals. I think it is because our entire empire has decided to walk on the shadowy side of the street. We won't arrest obvious war criminals who led us into illegal and immoral wars. We won't arrest the army of corrupt politicians in DC who take money from organizations seeking to circumvent or change laws so they can defraud us. The entire cess pool in DC is enabled by our silent media. Which is why the Bilderberg meeting rated exactly 2 news stories on Google's news search. Everyone at the top knew perfectly well, the 'raters' on Wall Street were total frauds. This was kept secret by the interlocking covens of wizards and witches. They knew that the whole point of this was to lie to pension funds and thus, funnel the funds into the hands of the Real Rulers. They want to herd us all into giving our pensions to them for free, you know. This is why that rich man the other day said, 'Hey, let's pass a law to force all pensions to give 10% to the government at 0% interest for 10 years!' These guys are all con artists and thieves.

China Lifts Banks' Reserve Requirements Up to 17.5%

China told lenders to set aside more money for a fifth time this year to cool inflation that is close to an 11-year high in the world's fastest-growing major economy.

Banks must put aside a record 17 percent of deposits as reserves starting June 15, which rises to 17.5 percent from June 25, the People's Bank of China said today on its Web site. The current requirement is 16.5 percent.

China's banking system is being flooded with cash from a trade surplus, foreign investment and speculative money betting on a rising yuan. The government is trying to slow inflation from April's 8.5 percent pace without triggering a slump in the economy that contributes the most to global growth.

As inflation rages in America, rates are at 2% here and reserves are not much higher. Indeed, as we look in astonishment at the FRED charts, the bank reserves that the Fed has to hand out at their wonderful new window is shooting up towards a trillion dollars. This is to keep the fiction of banking going in the teeth of the fact that there are no reserves. Banks can't lend. They are essentially bankrupt. All oil price hikes trigger banking collapses as inflation surges and the flow of global money changes channels.

The Financial Tsunami has not reached its Climax

Credit Default Swaps: Next Phase of an Unravelling Crisis
F. William Engdahl

A chain reaction of failures in the CDS market could trigger the next global financial crisis. The market is entirely unregulated, and there are no public records showing whether sellers have the assets to pay out if a bond defaults. This so-called counterparty risk is a ticking time bomb. The US Federal Reserve under the ultra-permissive chairman, Alan Greenspan and the US Government's financial regulators allowed the CDS market to develop entirely without any supervision. Greenspan repeatedly testified to skeptical Congressmen that banks are better risk regulators than government bureaucrats.

The Fed bailout of Bear Stearns on March 17 was motivated, in part, by a desire to keep the unknown risks of that bank's Credit Default Swaps from setting off a global chain reaction that might have brought the financial system down. The Fed's fear was that because they didn't adequately monitor counterparty risk in credit-default swaps, they had no idea what might happen. Thank Alan Greenspan for that.

Those counterparties include J.P. Morgan Chase, the largest seller and buyer of CDSs.

The Fed only has supervision to regulated bank CDS exposures, but not that of investment banks or hedge funds, both of which are significant CDS issuers. Hedge funds, for instance, are estimated to have written 31% in CDS protection.

The credit-default-swap market has been mainly untested until now. The default rate in January 2002, when the swap market was valued at $1.5 trillion, was 10.7 percent, according to Moody's Investors Service. But Fitch Ratings reported in July 2007 that 40 percent of CDS protection sold worldwide was on companies or securities that are rated below investment grade, up from 8 percent in 2002.

A surge in corporate defaults will now leave swap buyers trying to collect hundreds of billions of dollars from their counterparties. This will to complicate the financial crisis, triggering numerous disputes and lawsuits, as buyers battle sellers over the technical definition of default - - this requires proving which bond or loan holders weren't paid -- and the amount of payments due. Some fear that could in turn freeze up the financial system.

J.P. Morgan and Goldman Brothers are both in very serious trouble. They have the massive Derivatives Beast on a short leash and the Beast can easily haul them right off a cliff. For they don't control this critter. Derivatives were a very nasty problem before the CDS game was launched. Indeed, like the Carbon Trade game, dealers instantly recognized they could take this concept and run it to infinity! When the bosses learned this news, they should have shut it down instantly. They should retreat from it. They should be drilled with the idea, 'If anything is ever infinite, it is also pure evil and will totally destroy itself and everything around it in a massive implosion and crash!' Infinity is very dangerous. Even gods fear it. Only Mother Nature deals with it. And She does this by killing, blowing up or utterly destroying anything that tries to go up to infinity. I suspect even the Universe will not run to infinity. If we all understand this, regulators in the government can be on the lookout for any schemes that have the potential to run into infinity and this includes the currency. Zimbabwe barely makes any news at all in the US. It is part of the Outer Darkness. We refuse to view that hell hole and wonder what went wrong. It is right now pushing the currency to infinity. Already, it costs well over a billion dollars to buy a meal! The dictator is using brute force to stay in power and refuses to listen to anyone. He will eventually die and most of his people will perish with him.China is regulating things. The US is papering over things. China is responsible. The US is trying the Zimbabwe solution.

Fed Feint on Rates Fails to Persuade Goldman, Lehman

The worst two months for the U.S. Treasury market since 2004 failed to turn two of Wall Street's biggest bulls into bears, and history suggests they may be right.

While Barclays Plc says faster inflation means more ``carnage'' is in store for the fixed-income market after U.S. debt lost 2.89 percent in April and May, Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. predict a rally in two- year Treasury notes.

Goldman, the most profitable securities dealer, and Lehman, the top-ranked bond research firm in Institutional Investor's annual survey for eight years, bet the economy is too weak to spark runaway inflation and an increase in the Federal Reserve's target interest-rate for overnight loans between banks. Though futures traded on the Chicago Board of Trade show a 67 percent chance policy makers will boost the fed funds rate by year-end, they haven't started to raise borrowing costs with growth below an annualized 2 percent rate since 1980.

See how this works? The investment bankers are basically bankrupt. So is the government. All parties are playing this stupid game while inflation burns up all savings while a collapse in equity and asset values beggars more and more people. The public loses trillions in equity value while paying trillions for food and fuel! This will cause a revolution or riots. Riots are beginning to spread across Europe, for example. In the US, everyone is waiting for Obama. The hope is he will fix this mess.
He won't. I am betting he will accept the bribes this weekend. He will sell us out. If he doesn't, the hint will be simple: he will go on national TV and talk about the Bilderberg bribes! He will TELL THE TRUTH. Telling the truth is very dangerous. But he has the eyes of the world on himself and can do this. I can't go on TV anymore! No one listens to me!Many a suffering voter has scraped together spare change to help him run for office. Hillary got over $100 million so she didn't need a penny from anyone who is a peon. But Obama built his campaign on the backs of these good people! Will he betray them? Or will he imagine he can slip into office and then suddenly turn on these rulers? And he better understand, they know he can do this and they have Plan B and Plan C. Hillary blurted out these plans in the past. Boy, the media sure had to back peddle in order to misdirect everyone! On the other hand, this did push Obama towards considering the bribes to be a good deal. Better than a bullet.

Gas bills to soar by another 40pc

Gas bills will rise by 43 per cent in the next 12 months and electricity by 21 per cent, an average £360 per home, because of a sudden surge in market prices, industry experts are warning.

Wholesale gas prices, the prices energy companies buy at, soared to a record high on Friday, taking the increase since the beginning of the year to 76 per cent.

To restore the balance between wholesale prices and those that householders pay, the average gas and electricity bills a year will have to increase to £1,410, almost £500 more than a year ago.

The North Sea oil is running out very fast now. Thanks to the reality of the Hubbert Oil Peak: all fields eventually drain and only with great cost and difficulty can one pump out more fossil fuels. England is much further in debt per capita than any other nation. And has precious little to show for this. Japan's debts are to itself, mostly. England and the US took advantage of winning WWII by outsourcing our debts so foreign powers hold most of it. The logic of the Hubbert Oil Peak is very uneven. New discoveries cause surges in supply and prices plummet accordingly. Then, older wells dry up and there are sudden restrictions and price hikes. 90% of past and even present price hikes are due entirely to human wars. But the squeeze/flood cycle masks the overall availability of oil. If the fantasists like Engdahl imagine we can have endless oil, fine! They can go prospecting for it! But alas, that dream is impossible.

G-8 to fight oil prices with efficiency, tech

Faced with record-high oil prices, the world's leading economies and oil consumers Sunday pledged greater investment in energy efficiency and green technologies to control their spiraling thirst for petroleum.

In a joint statement, energy ministers from the Group of Eight countries, joined by China, India and South Korea, also urged oil producers to boost output, which has stalled at about 85 million barrels a day since 2005, and called for cooperation between buyers and producers.

But with little prospect for a surge in production anytime soon, the focus of Sunday's meeting was on what wealthy nations should do to rein in consumption, while reducing carbon emissions blamed for global warming.

The oil consumers want more oil. If this is so, they can all go to Iran Kitty and pet it and give it a bowl of milk and a mouse. Then Iran kitty will be able to sell oil to all and sundry and the damn price will drop. Note that NONE Of them are suggesting this! So the 'rein in consumption' is the real game here and how is this done? Via degrading the currencies! While not raising wages to make up for inflation. And I read in Europe, this is already causing serious political problems! But then, the real rulers will do what they did for the last 2,000 years: kill peasants.

Queen Elizabeth Buys World's Largest Offshore Wind Turbine

Britain's Queen Elizabeth is investing in the world's largest offshore wind turbine and also in the development of offshore windfarms in Scottish waters, her property company The Crown Estate announced on Wednesday.

On April 17, The Crown Estate signed an agreement to purchase a prototype of the world's largest offshore wind turbine, Clipper's 7.5 megawatt MBE turbine. Known as the Britannia project, the turbine will be built by California energy company Clipper Windpower.

Offshore wind projects such as the $65 million Britannia project will advance industry technology in line with the forecasted upsurge in European offshore wind development in 2011 and 2012.

I wonder if the British subjects will wake up? We came here to America to have a democracy. They have the illusion of a democracy. But then, we do too. We really don't have one anymore. ANYONE we elect to high offices are immediately corrupted by the Real Rulers. All of whom curtsy to the Queen and her brats.

The laws concerning the British Crown:

Although the ownership of some property can be traced back to Edward the Confessor, the estate as a whole essentially dates from 1066. After the Norman Conquest, all the land belonged to William "in right of The Crown" because he was King. Despite centuries of change in law and custom, the underlying ownership of The Crown still exists and there is always a presumption in favour of The Crown unless it can be proved that the land belongs to someone else.

The Sovereign's estates had always been used to raise revenue, and over time large areas were granted to nobles. The estate fluctuated in size and value but by 1760, when George III acceded to the throne, the asset had been reduced to a small area producing little income - revenue which George III needed to fulfil the Sovereign's fiscal responsibilities to the nation.

Owners are rulers! Even though Parliament has some control over things, they do NOT own ANYTHING. They are guardians and palace guards. They are advisors. They have to ask for permission. The Queen and her predecessors kept an iron grip on actual ownership of the country. They know what happens when they lose this. Just the other day, the people of Nepal voted out their horrid king, the one who probably assassinated his brother's entire family. This king was very much hated by the people and was a good buddy of the right wingers within the CIA who love to rule the planet via kings and queens.

That corrupt bag of garbage is out the door! Who knows. Maybe the world can learn to live without rulers. We have to figure out how things work and how to resist the temptation to destroy our currencies, our banks, our landscape, our cities and our children.

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