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Bankrupt Federal Reserve Will SPRAY The Earth With Dollars!
Central Banks Offer Extra Funds to Calm Money Markets
Easy prediction: gold will go up today. Any sane person reading this news can see that the Goddess of Hyperinflation is being untied and is now going to stretch her wings and take off. Not instantly, she always has to wait for the banking gnomes to spread this magic flying piggy bank loot across the earth. Then, the recipients have to find somewhere safe to park it all. And they find it! The gnomes that get this loot will run off and put it in a safe place. Their mattress is gold, platinum, etc. The 'rare' metals. If this flood of loot doesn't end up in gold, etc, it has to flow to somewhere. The central banks want the unregulated massive global investment banks to put this loot into world stock markets or to use it to create more lending. HAHAHA. Right! These entities would dearly love to lend more! When they lend and lend, they collect fat fees and then palm off this lending onto 'investors.' THERE ARE NO MORE INVESTORS. They were hammered to death by inflation and stock market gyrations. I pointed out last year that with the epic, huge 'buy-outs' and 'hostile take-overs' which these investment banks funded, the world has finally run out of destinations for parking debts! Namely, thanks to the goofy Japanese carry trade business, a flood of lending was unleashed upon the earth. Restless gnomes scoured the planet for companies, countries and organizations where they could park this Japanese bounty. In order to make money off of borrowing from the Bank of Japan, they had to re-lend it to someone else so they could then park it somewhere where someone would be forced to pay the collective interest rate hikes embedded in these once-cheap loans. The pirates of the various tax-haven hideouts, most of which are islands owned by the Queen of England, went to Japan for these carry trade loans. Totally unregulated, they could do as they pleased. Here is a typical example of the insidious nature of these stupid pirates: I go to Grossman's Bargain Outlet to pick up stuff they can't sell. I built much of my house with their throw-outs. They bargain with me over the price of a huge pile of whatever they want to get rid of and I buy it. Sometimes a full one ton load of plywood for $20. I loved going there. But less than a year ago, this abruptly ended. The manager of the store was very unhappy when I showed up. 'I can't bargain with you anymore,' he said, sadly. They were under new management, a hostile takeover threw out the people who made that place my favorite stop-off point. Everything had to be priced as high as possible. This stinks and they won't see me until the pirates who took over are forced to pay for removal of this stuff. Har. Home Depot used to let me pick up stuff for free or a small amount of money. The managers of six Home Depots knew me so well, if they spotted me in the store, they would come over to show me their junk pile! Suddenly, two years ago, when Home Depot got saddled with a huge mountain of debt, the managers were forced to stop this. Some of them hated the new management so much, they quit. I was furious. Now, Home Depot has to pay someone to remove junk. And this is the story across the planet. After parking huge debts on top of corporations interfacing with humans, the pirates and gnomes set out to nickle and dime everyone to death! I remember when Home Depot tried to sell my precious junk for high prices. The pile grew and grew until a manager begged me to remove it for free. He was fired. The entire planet is now being run in this fashion. The Chinese are in the middle of a scandal with food contamination killing precious babies. They need a powerful Food and Drug Administration. We are tearing down our own FDA even as the Chinese learn the wonderful utility of such an organization. Just like we dismantled all the controls over banking that prevent wild lending that is inappropriate or destructive. Crisis Exposes Flaws in U.S. Economy, Tarnishes Image (Bloomberg) -- The rapid-fire rescues of financial firms may end up tarnishing America's free-market reputation as the moves expose defects in the U.S. economy, undermining its standing with foreign buyers of the dollar and U.S. Treasury securities. The entire G8 banking system ended up relying on JAPAN as the wellspring of all lending. Long, long ago, I complained about the global banking system allowing Japan to have 0% lending. This is ahistorical as well as tremendously destructive. The inflation this unleashed upon the planet took a number of years to manifest itself. It has begun to vanish only because massive amounts of wealth is vanishing. No one has any idea how many trillions have vanished because of the banking/stock market collapses. Across the planet, it has now infected everything and the loss of paper wealth is stunning and ongoing. The top story here today about how the G8 bankers are desperately trying to create liquidity by lending at ridiculously low rates to all the people losing money at warp speed clearly shows that this number is in the multiple trillions. $247 billion in central bank lending is expected to be multiplied by 10 so that it should represent $2 and a half trillion in new lending. But as I keep pointing out, the world doesn't have a shortage of debts, it has too much debt. Finding someone who can pay interest on loans is the problem. Spendthrifts who are deep in debt always want more and more debt. But are capable of paying less and less principal and interest. Bankers usually charge higher rates, the deeper in debt an entity is. The US, England and Japan are all very deep in debt due to government overspending. Japan can service its own debt thanks to a huge trade surplus with England and America. The IMF should have cautioned Japan about its super-low interest rates. It was amazingly destabilizing. But just as the IMF refuses to punish the US for running giant trade deficits, the IMF is run by the same gnomes who are destroying global banking due to this crazy stuff. Yesterday, I gave a small sampling of articles I wrote in the past about how the G7 [G-8 is Russia] constantly attacked China on every front even as China faithfully tried to run a classic banking system with realistic interest rates, a real currency [the yen is totally fake] etc. The yen is getting stronger this last year and this has totally disrupted the Japanese carry trade. Japan's false depression has been shown to be a total fraud due to its high GNP growth this last 7 years coupled with raging inflation within Japan. Only worker's wages have fallen through the floor. This kept price hikes down but even this has ended. Everything is being inflated. So what is going on in Japan today? Stocks: Nikkei Hits Lowest Level Since June 2005 On Financial Jitters TOKYO (Kyodo)--Tokyo stocks dived over 3 percent Thursday morning, sending the key Nikkei index to its lowest intraday level in more than three years, as investors became increasingly worried about the prospect of more failures in the U.S. financial sector. Last year, Japan stood aside as Europe, England and America's banking systems collapsed. Now, the collapse has come home to where it was born: Tokyo. Note the 'Bank of Japan Provides PLENTY of liquidity' story. The rate can be cut back to 0% but the Bank of Japan dares not do this for China is already very steamed that Japan has it over 250 basis points below the rate of inflation inside of Japan. This is very inflationary, lending this far below inflation's true rate. The Bank of Japan is subsidizing the creation of credit to an unholy degree. Last year, China's rulers decided to prevent a flood of more Japanese money into their markets because of inflation. Japan has been exporting inflation for years. Witness how this has destroyed the US. We got dumped with incredible amounts of debt. Our government could sell Treasuries to Japan and then, China, with impunity. Our budget deficits shot through the roof. We doubled the amount of debt we ever held from 1789 till 2000 in just 7 short years. If this carry trade continued, we would have doubled it again in just 3 1/2 years. For this is like the Derivatives Beast: it doubles faster and faster as it grows. The US today has just voted for more and more debt to an amazing degree. In just one week, the half-trillion in overspending has nearly doubled! Obviously, we imagine we can go deeper into debt and no one would notice. AIG bailout upsets Republican lawmakers (CNN) -- Key Republicans on Capitol Hill blasted the Treasury Department and the Federal Reserve on Wednesday for orchestrating an $85 billion bailout of insurance giant American International Group, and the White House for not informing them of the plan. Meanwhile, Democrats blamed the Bush administration for the financial crisis, while the White House pointed a finger at Congress. Congress has only one function: to OK the funding of executive initiatives and to provide themselves with pork. Congress has virtually no power left due to corruption, bribery and stealing of government resources. The Federal Reserve is BROKE yet it lords it over Congress who have broken the US and have driven us into a future bankruptcy. China accuses US of financial WMD Chinese state media has blamed the US for unleashing financial "weapons of mass destruction" and sparking a global market "tsunami". Note how China's interest rate is far more realistic than the US or Japan. And China's restrictions are hurting the Chinese but this is gaining them no mercy from the wild spenders/inflation creators in the G7 universe. So the Chinese will be pulling off the gloves as I predicted. I said, they would do this after the Olympics. Now that they got slapped hard for providing an amazing Olympic experience, they are in a bad mood and not inclined to think we deserve saving. They will demand the IMF switch gears and put the US under interdiction. The Europeans and Japanese who run trade surpluses with the US will resist this with all their might. But their own systems are now collapsing thanks to the US collapse into bankruptcy. Russia Gives Banks Cash, Halts Stock Trading to Head Off Crisis (Bloomberg) -- Russia halted stock trading for a second day, poured $44 billion into its three largest banks and relaxed restrictions on lenders to stem the worst financial crisis since the nation defaulted a decade ago. Russia's problems are exactly the same ones that plague their G8 partners. Anyone who is part of the global banking system is being dragged down as the US goes bankrupt. This is why the entire planet was dragged down including the rising economic power, the US, when England and Germany both went bankrupt after WWI. The western press is pretending that Europeans and Americans are pulling out of the Russian stocks to punish Putin for fighting the invading Georgians. This is PURE PROPAGANDA. The stock markets of the entire planet are collapsing from top to bottom! The entire banking system of the world is collapsing! And it has squat to do with a minor brush-up in Georgia. It does have a lot to do with 9/11 and the US wars against Muslim peasants. This complete failure has dug a trillion dollar hole in US finances and it is destroying the US system. A word of warning here: the ruling elites hate losing money. They thought that letting bin Laden's plans for 9/11 succeed, they would get filthy rich. They didn't want the WTC to collapse and close Wall Street. They wanted the buildings to stand up and defy the 'terrorists'. But the collapse took them utterly by surprise to the point, Bush and Cheney went into hiding for three long days. Trust me on this matter. Even though there are an army of people out there who want to think otherwise. Gah. Bush was TERRIFIED when the Towers collapsed. He ran off to Orffutt Airforce Base when it happened and refused to meet with reporters! Thanks for listening to logic. Here is more proof that the banking collapse is global as well as sudden: Darkest day for Scottish banking as the Bank of Scotland faces its end FOR Scotland's oldest bank, it was the suddenness of its rout that stunned. That and the silence at the top. That and the invisibility of leadership. That and the short-selling frenzy that descended on HBOS shares yesterday, like vultures on a corpse. The oldest banks on earth are dying. Central banks are dying. The Federal Reserve is going to SPRAY the planet with swaps it doesn't have in reality. It will 'swap' stuff with bankers who are also going bankrupt. The Sovereign Wealth Fund nations are silent in all this, note that! Only the Bank of Japan is joining in. Last year, they joined in the hysterical saves set in motion by Europe and America and then, with no warning, announced that there was no crisis and they withdrew from the emergency funds. Will they do that again? Will they drop rates to 0% so the carry trade can restart with the US? Japan's investors and savers save NOTHING in Japan, they must flee to park their money elsewhere. But the FX markets are in utter turmoil and Mrs. Wanatabe is a broken woman, the legendary housewives playing FX games are badly burned by the rising yen. The BRIC stock markets are tanking badly. The G8 stocks are universally falling through the floor. And there is no more profit in buying US Treasuries which fell to Japanese levels last night! This is another reason gold is climbing rapidly. Where else can anyone in Japan go? The entire system is negative. Lloyds pulls HBOS out of the fire with £12bn merger A £12bn takeover of Britain's biggest lender, HBOS, failed to halt the deepening crisis in world financial markets last night, as a wave of fresh speculation on global stock markets saw two of Wall Street's most prestigious investment banks targeted as the latest victims of the credit crunch. Britain boasted that it was the center of the banking universe. This bankrupted empire lived dreams of glory under the wings of the US empire. It even had the cheek to set up a pirate banking system that bled the US and UK government coffers dry. This is the power of the British banking system: the ability to use the fiction of 'sovereignty' of a bunch of islands which are used at fronts for corporations evading taxes and rules!!!! This is why lending went insane as these bankers went to Japan for free money from a generous central bank. This is why fixing the system by SPRAYING dollars across the planet WILL FAIL. If nothing at the core is fixed but made worse, things will get worse, not better. As Fears Grow, Wall St. Titans See Shares Fall Even Morgan Stanley and Goldman Sachs, the two last titans left standing on Wall Street, are no longer immune. To the surprise of executives within those firms, and their rivals, the stocks of these powerful companies were drawn into the crisis of investor confidence on Wednesday. Morgan Stanley, whose stock fell almost 25 percent, was considering a merger with Wachovia or another bank to help shore up its finances. Goldman Sachs's stock fell almost 14 percent, and it had to rebuff rumors that it was seeking a capital infusion. Note that ALL the huge investment banks that depended upon the Japanese carry trade are dying, rapidly. the charts are clear: people are ditching these stocks and running away. Just six months ago, Goldman Sachs boasted that they were not burned by the collapsing US housing bubble because they fraudulently sold off their bad tranches to unsuspecting victims. HAHAHA, they said. Goldman Sachs controls our Treasury and Paulson said to Bernanke, 'Forget the helicopter, this is like a California fire: we have to spray dollars over the raging inferno of global banking!' The childish belief that the US could simply create money out of thin air and spray it over everything and thus, the 'Great Depression' wouldn't happen is horridly amusing. The first sprays of money created inflation. Once that was finished after beggaring billions of people, the depression cycle resumed. Making money out of thin air is NO SOLUTION. The solution is hard to accept: everyone has to moderate themselves and be more responsible. Governments must balance their budgets, people must turn investments from frivolities towards re-tooling the planet for Peak Oil. And yes, we are heading right into the horrors of Hubbert's Peak Oil. Mr. Flat Earth Free Trade is GOOD Friedman of the NYT In the long run, though, regulators need to find ways to limit the amount of leverage investment banks or insurance companies can take on at any one time, because given how intertwined they all are in today's global economy, one bank blowing up can now take down many. Friedman is one who gloried in the concept of the New World Order and the Flat Earth Free Trade scheme. Ever since the creation of banking after the Dark Ages ended and the Bardis founded the first bank in Lombardy, banking has been GLOBAL. The Bardi bank dealt with the very first traders to reach China and India who were importing silks and other luxuries to the courts of Europe. War spending defaults killed the Bardi banks. Over and over again, since 1390, the European banking system has collapsed repeatedly. Each time, it is worse than the time before. Now, as our banking system shudders and collapses, it is not the first global banking event at all! Friedman is a habitual liar or he is just stone stupid and reads absolutely no history. He is quite popular and is promoted by the owners of the New York Times. But his stupidity causes others to be equally clueless. The owners of the NYT have forbidden the editorial staff from talking to me ever since one of them called me in 2000 to tell me of this interdiction. So we have goofy editorials that are not disputed like in the old days. This lack of real discussion is throughout the media and politics. I know that if I were to go back to DC and try to enter any Democratic or Republican offices, they will slam the doors shut. They want reality to conform to their delusions. The faux dream world of waking fantasies beguile our politicians. They know, as nightmares assail them in their sleep, that they are in the wrong. But desire deludes. This is true of everyone running our financial systems, too. And last of all, here are a quartet of stories I wrote last year on this day, exactly: Sept. 18, 2007: Free Money Means More Inflation
9/18/7: Engdahl Can't Comprehend Hubbert Oil PEAK Several readers brought to my attention an article by a big-time writer who claims the whole idea of the Hubbert Oil Peak is bunk. Mr. Engdahl makes a very common and quite stupid mistake: he and a host of others think that Peak Oil is when oil runs out! This is so easy to refute, I wonder how anyone can fail to understand and then I remember how most economists operate: in clueless vapidity. For some reason, people look at words and like the Caterpillar in Alice in Wonderland, decide to append their own definitions, ipso facto. A warning: Peaks are BIG. They are when things are at their most, not their least.
9/18/7: Halloween Coming, Time For Banks To Freak Out Last month we just saw the European banking system sieze up now England is experiencing a classic banking crisis. The systems set up to prevent banking disasters were destroyed in this madcap quest for funny money creation. The euro and pound are some of the strongest currencies on earth yet at the very pinnacle of power, the banking systems collapse? A riddle that is part of the strange and I think, very dangerous financial system built up since the implosion of the Bretton Woods II system and the circumvention by the Japanese of the Plaza Accords.
Here is my old story about a student being tasered in front of Skull and Bonesman, Kerry: 9/18/7: Student Questioning Kerry About Skull & Bones Is Tasered The universities in America are now the staging ground for communist-style repression. The denial of tenure to a professor who dragged the Zionist war machine into the public eye, the cancellation of the Rachael Corrie play about a peaceful demonstrator murdered by the Israeli army, the tasering of a library student in San Diego and now this, the most disgusting display of dysutopian brutality: a student is tasered for taking Skull and Bonesman, Kerry, to task for throwing in the towel in the last election! I will explain how Kerry has debased himself and how the entire Democratic Party has descended into anti-democratic, anti-constitutional hell along with the neo-fascist Republicans. All the news back then is echoed even louder, today. Photographers and reporters even with the mainstream media were brutally manhandled and mistreated at BOTH the Republican and Democratic conventions! The attempt at suppressing the news was militant and extremely Unamerican. Ben Franklin who inserted the 'free speech/freedom of the press' into our Constitution as the First Amendment is rolling in his grave. |
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When terrorists were allowed free rein to attack the US seven years ago, the ruling elites believed this would grant them vast powers. Which it did. Happy as larks, they imposed a Stalinist-style government on the once-free American people. Just before 9/11, the GOP cut taxes and reserve requirements. They eliminated rules and regulations, etc. so Wall Street could go hog-wild. The US boasted that it would be stronger and better than anyone after 9/11 and then went on a spending spree from hell based on ridiculously low interest rates of 1% set by the crooks at the Federal Reserve. Now, we are in a collapsing economy due to a debt overhead that is hideous. Time to examine the ramifications of the total banking collapse of the G8 nations.
Santa Claus Bernanke not only flew over the housetops in his helicopter, dropping money, he also made it cheaper to go deeper into debt. The Bank of Japan has been able to keep rates tremendously low for a very long time because they don't lend money to Japanese people. But in the US and Europe, the central banks are very anxious for the money to flow to consumers because of the goofy belief, we need to buy more stuff to keep our economies going. The fact that a lot of this stuff is imported is not mentioned. Also, we are entering the Xmas season where people have to go crazy buying stuff they don't need or shouldn't have. More hedge funds collapse while liquidity is still very much not returning. If it does, it is bad news anyway for it is red ink that passes through Asia and oil exporting nations. 
