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07.02.09- Banking system like South Sea bubble, says senior Bank of England official
07.01.09- The Great Bank Robbery: How the Federal Reserve is destroying America
A large part of the "super" in the American superpower is based on the modern creed of liberal democracy, which serves as the motor of free-market capitalism. And the lubricant that keeps this colossal machine humming at full speed 24/7 is the US dollar. So before we risk any conjectures on the future prospects of America's versatile banknote, which presently serves as the 'world's reserve currency,' perhaps we should know more about who controls it. READ MORE
06.30.09- The Mark of the Beast
06.29.09- Regulatory Capture:
06.27.09- Inflation
06.26.09- SEVERELY Bearish Treasury Development
The change is net neutral in terms of numbers as a new dealer just came online, but in general this is a major net negative for the Treasury market. Why? Because being a primary dealer is, in general a license to print money. You get to field customer orders for Treasuries and make your spread, and you have a privileged trading position with The Fed. READ MORE Silver
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A senior Bank of England official today compared the banking system over the last 20 years to the South Sea bubble of the early 18th century and said bankers had merely "resorted to the roulette wheel" to keep up with each other. The Bank's executive director for financial stability, Andy Haldane, said in a speech in Chicago that having been stable over much of the 20th century, returns in the banking system relative to the wider stock-market shot up after 1986 until 2006. "Banking became the goose laying the golden eggs. There is no period in recent UK financial history which bears comparison," he said. He said bankers and policymakers became seduced by the excess returns available: "Banks appeared to have discovered a money machine, albeit one whose workings were sometimes impossible to understand. "One of the South Sea stocks was memorably 'a company for carrying out an undertaking of great advantage, but nobody to know what it is'. Banking became the 21st-century equivalent." He said banking returns over the period were magnified by leverage as banks borrowed excessively, he said. - Guardian 
As global leaders struggle to rescue their nations from economic breakdown, the legitimacy of the dollar as the world's reserve currency is under attack. Perhaps the problem lies with the Fed.
(Editor's Note: The following missive by Bob Chapman (one of our most revered pundits) refers to actions that both Lincoln and Kennedy took to eliminate the power that the private banking cartel held over the government, and, therefore, the citizenry. I feel compelled to point out that, in Lincoln's case, it was for the insidious purpose of waging war upon the citizenry for the express benefit of the northern industrialists and bankers that had gotten him elected. Lincoln was one of the biggest war criminals the world has ever known. Kennedy, on the other hand acted out of the knowledge that the Federal Reserve is, in fact, public enemy number one. The Rothschild family is one of the larger stock holders of the Federal Reserve. - JSB) 
The trouble started 24 months ago, but the origins of the financial crisis are still disputed. The problems did not begin with subprime loans, lax lending standards or shoddy ratings agencies. The meltdown can be traced back to the activities of the big banks and their enablers at the Federal Reserve. The Fed's artificially low interest rates provided a subsidy for risky speculation while deregulation allowed financial institutions to increase leverage to perilous levels, creating trillions of dollars of credit backed by insufficient capital reserves. When two Bear Stearns hedge funds defaulted in July 2007, the process of turbo-charging profits through massive credit expansion flipped into reverse sending the financial system into a downward spiral. 
(Editor's Note: I found the following facts posted on Jim Sinclair's 
NEW YORK -- Dresdner Kleinwort Securities has withdrawn from the Federal Reserve's primary U.S. government security dealers, the U.S. central bank said Friday.
