Tuesday, December 29, 2009
The beast SEG
Many see a black swan; some see an elephant and other see a gorilla. No one in government will agree as to what they are observing. They all however agree it is huge, harmful and a havoc. Seg is the $600 trillion plus and growing derivative industry. Its epic center can be found on Wall Street.
Those that created the beast were sure they had invented a formula that eliminated risk and guan teed eternal profitability. Today the creators have abandon the concept and gone into retirement or are crying fraud with 80% of the derivatives industry. Taxpayers are experiencing the results of a financial neutron implosion detonated by Seg.
Taxpayers have survived the blast but their finances are rapidly disintegrating. Government will not create a framework which will regulate an expanding industry which is about to release carbon credit default swaps. CDO derivatives have been dressed up by PhD’s of mathematic from prestigious institution of higher learning.
Promoted by the “to big to fail” on Wall Street. Next derivatives were pedaled around the world by guru within financial institution. Elected representative deny that derivatives have become another illegal street craps shoot. If there is fraud there is unpaid taxes owed to tax collection agencies.
Unpaid taxes on 80% of $600 trillion plus will pay of the national debt. Taxpayers have finally realized the root of the financial crises, are government guanteed bailout. Increasing taxpayer’s debt through deficit spending has become habitual, addictive and repetitive.
Until capitalist principles are restored the capitalist system will continue to deteriorate. The supply of money will increase exponentially as purchasing power of the dollar will deflate in an inflationary economy. This maybe why an ancient, barbaric, relic as gold appreciates in an atmosphere of lack of confidence, trust and faith in government?
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Wednesday, December 9, 2009
Doing Gog’s work
Sunday, December 6, 2009
Confirmation is conformation
Truth told the bailout only covered the losses of speculator who were caught exposed to global defaults. Confidence was disabled, disrupted and destroyed when counterparties involved in a counterfeit shadow monetary system stopped payments. Taxpayers were convinced by government to fall on the debt sword and save a global financial system.
This mantra will persist at a lowering volume until the last financial institution is out of the TARP system. Fed, SEC, CFTC and other agencies failed to perform their fiduciary duty. A failure to monitor the capitalization requirements of financial institutions under agency jurisdiction also provided cover to justify a bailout
It was default of debt that caused the current recession. As long as the powers that be ignore defaulting debt this recession will get worse. There are defaults coming from the top of Wall Street to the bottom of Main Street. These defaults are the moral hazard of fraud and complacency.
Taxpayers have been exposed to an unsustainable repayment structure. A retailer and staff abandoned a liquor store which is opposite a senior high school. All doors were unlocked and left wide open. The retailer and staff are delusional if expecting no alcohol missing when they return.
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Saturday, December 5, 2009
High of pharmaceuticals in financial wonderland
As long as taxpayer Alice is experiencing a hallucinary global financial crisis time is running out on defusing the mother of all hyperinflationary explosions. A Hyperinflation explosion will probably crush the dollar making Weimar Republic and Zimbabwe seem like the pageantry of the King of Heart’s court.
The banking industry continues to deflate through conscript consolidation by forcing good banks to cover the losses of bad banks. FDIC has access to $500 billion of taxpayer’s debt to cover $4.5 trillion in taxpayer’s deposits. A watch list of 500 banks and $8.5 billion in the red FDIC is requesting good banks to cough up $23 billion.
Alice was extricated from the wonderland system by falling into a bottomless hole. When will US taxpayers wake up to the Fed’s newest wonderland scheme called “Reverse Repo”? Fed has pumped trillions of borrowed dollars into the banking system. Congress continues to lead taxpayers deeper into debt with interest bequeath to the FRS.
Congress was told that a $700 billion bailout would be used by banks to unfreeze an illiquid system. Banks have no intention on injecting liquidity into the economy because it would only bring about hyperinflation. The problem is excess credit produced outside of the FRS by a $600 trillion plus fraudulent, unregulated derivatives industry.
How does FRS drain the global economy of excess derivative dollars before they are released into a global economy thereby producing hyperinflation? Fed has allowed a recession to establish roots and swapped toxic assets at inflated prices for taxpayer debt. The Fed in return repurchases taxpayers debt from primary bank dealers.
Fed will now reverse repo the very same taxpayer debt recently purchased by primary bank dealers for cash raised through leveraged taxpayer debt to third parties. The deeper Alice the taxpayer ventures into financial wonderland the more “curiouser and curiouser” the Fed becomes.
Fed will conduct another reverse repo in the future and buy back taxpayer debt at an even higher price. This will create more excess liquidity then before and shorten the time for a hyperinflationary explosion. At this point taxpayers will have slipped deeper into a wonderland of financial debt.
Fed will once again rearrange the chairs around a circular table. Banks will end up with larger excess reserves in the system. Fed will have taxpayer debt on its balance sheet. Fed will claim should banks start lending excess reserves into the economy hyperinflation will surge.
Any exit strategy by the Fed represents a change in policy and should be interpreted as a sign the situation has changed on the ground. Eventually a door will lead back to a hallway of financial crisis with many doors. The key is to find the door that allows taxpayers to break perpetual deficit spending.
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Friday, November 27, 2009
Deficit spending is fraudulent inducement
One likely option is a default on the national debt which is actually defaulting on
Government may decide to cut pay as a sign that it is serious about reducing debt. International financial creditors might in turn forgive the
Deficit spending also transfers money to financial institution in the form of interest payments on funds loaned to government. Government in return pumps this money into schemes such as bailout, stimulus, cash for clunker and TARP.
The most insidious form of financial indentured servitude is exponential growth in interest payments on an inflating national debt. The US Treasury and the Federal Reserve System may have lost control of money creation because of an unchecked derivatives industry.
Over $600 trillion in derivative transactions has dwarf the total monetary worth of the entire globe. The central bank system possibly allowed the extension of too much credit into a global carry trade currency. Barrowing money and swapping currencies for dollars at zero percent interest rates is shoring up an inflationary foundation.
As of 2008 the entire global central bank system held less than $1.2 trillion in gold reserves. Global central bank system does not have enough gold reserve to unwind a growing $12 trillion US national debt. Central banks are purchasing gold which is appreciating in value at exponential rates.
Central banks have reverted to net buyers of gold as price escalates towards the stratosphere thereby creating a self perpetuating increase in cost. An inflationary cycle by carry trade dollars buying less gold at higher prices has begun. Price will also increase partly because of a drop in production and a limit on sources for retail consumption.
Would the total collapse of the US dollar bring the price of gold back from the stratosphere? If the dollar is no longer the carry trade currency how high will interest rate rises. What will American use as a form of currency, the AMERO?
Monday, November 23, 2009
It’s not about the bling bling.
Will congress enact the authority to audit the Fed’s gold reserve in New York? Whose gold was found underneath the rubble at ground zero? Oil is the energy that runs a global economy. Gold has technological and industrial applications but energy from oils is needed to bring those applications on line.
Gold does not dominate the global manufacturing economy where as production will grind to a holt with out oil. There are other efficient substitutes that can replace most gold application. Gold is a symbol of confidence, security and wealth. It is the global currency of last resort. Gold knows no political, religious or economical boundaries.
Gold has been manipulated by governments but never eliminated from currency. It has past peak even though swap has been created based on future production. Could there be a shortage of gold? Have promises been made that cannot be? With gold linked to the derivatives market price may spike to inconceivable heights.
A possible audit of gold reserve may reveal secret with global implications. The strength of gold exposes the weakness of a carry trade dollar. Central banks have lost the authority and ability to suppress gold resilience and price. Government can only play a catch-up game when it comes to creating paper currency.
If government were a private corporation it would have filed for bankruptcy. Credit creation is another form of increasing money supply coming prior to the government’s printing press. A $600 trillion plus derivatives market is proof point how money is created through the extension of credit into the private sector.
Stimulus and bailout has justified the extension of credit from the FRS to the US government when covering the losses of a private banking system. An undisciplined, unregulated and unmonitored financial sector expanded the money supply beyond global GDP thereby devaluing all world currencies. Hence the exponential rise of gold.
Government is not able to stop an accelerating money supply unless counterparties are willing to take a hair cut.
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Saturday, November 21, 2009
Mystical Currency
Total amount of currency circulating the globe is around $65 trillion. How could the current notational value of derivatives around the world exceed $600 trillion? There is either a shadow currency in use or ninety percent of derivatives are the product of fraudulent inducement.
A $600 trillion plus derivative market exposes a massive shortage of carry trade dollars. Taxpayers are being bombarded with propaganda which denies what they see, hear and smell. A hyperinflationary virus has already spread globally. Central banks and sovereign nations are dumping their dollars for gold.
National currencies are being debased and taxed by a weak carry trade US currency. This is another reason why central banks have reverted to net buyers of gold. Gold has an inverse effect when fiat currency goes rouge on stable economies. U S of A maybe broke and bankrupt.
The Federal Reserve System continues to loan the federal government more money. This money ends up in the tax haven coffers of corporations that pay no taxes on offshore gains. Treasuries sold increase the amount of dollars in circulation because they are issued to cover debt.
The 2010 election cycle maybe a pivotal point regarding the sovereignty of U S of A. A path at the proverbial fork in the road will be determined by taxpaying voters. Taxpayers are at the precipice of losing their country. Taxpayers realize they are in the midst of an economic war.
Only by throwing the incumbents out of office and recapturing government will the nation be saved from disintegration. A patriotic congress person will understand that taxpayers must perform a radical, delicate and dangerous surgery of removing the cancer from congress.
There are good congress people that are leading the charge but they are out numbered. Now is the time to be bold, innovated, creative and unpredictable. Government is also caught up in this deadly economic war. Trillion dollar financial bombs are exploding all over the country. Taxpayers are short of supplies, man power, money and access.
A defeat will reduce the U S of A to a divided third world nation. Now is the time to be bold, courageous and forge a new paradigm when voting in 2010.
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Monday, November 16, 2009
Taxpayers got punked
Congress plunged taxpayers into debt by $2.5 trillion to protect a private banking system. Taxpayers were denied an audit of the Federal Reserve System they protected from plunging into the abyss. Bankrupt banks exchanged toxic paper for treasuries which the Fed purchased from taxpayers after granting government a loan.
The loan in turn increases national debt to the Fed through deficit spending. Fed buys back access treasuries from primary dealer banks that are unable to sell treasuries in global markets. Taxpayers get punked owing the Fed additional money with interest for treasuries repurchased from primary dealer recipients of taxpayer’s bailout.
Paying the Fed principle and interest for treasuries issued to protect and preserve the banking reserve system through deficit spending is maximum ponzi. Taxpayers have been punked into believing printing US dollars can continue forever. At some point purchasing power of all fiat currencies peaks and becomes worthless.
It’s no mystery why the US stock market continues to rise in the midst of a global recession. A weak dollar carry trade invested in foreign markets creates the illusion domestic banking industry has recovered. Government admits $200 billion of bailout monies will never be recovered because congress has lost track of the money.
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Saturday, November 14, 2009
Gold gone rouge
Gold has always been currency of last resort. Fiat and debased currencies have vanished when decoupled from gold by undisciplined governments. Gold is sought out during inflationary and deflationary environments. Government cannot create or print gold so it must accept currency pegged to a value of commodity.
Increasing price and shortage of gold highlights weakness in fiat currency buying power and value. Gold has peaked. This does not to imply there is no more gold to find, mine and produce. Peak gold serves notice of decline in amount, production and supply of gold.
Decline illustrates diminishing quality of ore grade, deeper depth to mining shafts and an increasing cost of energy. Demands on supply of gold from population will also push price to higher levels. Ore grade has declined from 12 grams per tonne in 1970 to 3 grams from leading producing countries.
Central banks and international monetary institutions acted as quasi mine producers when gold was coupled to paper money. Recently China and India became net buyers. Industrialized countries with detached currencies from gold still have huge reserves.
Natural minerals or resources on Earth do not replenish at the pace of consumption by an expanding population. Global gold production declining at 1% per year will hit zero long before everyone alive today expires. This does not take into account demand from ETF’s,
to population growth. Could gold drop to zero in monetary value?
Yes if replaced by another commodity other then fiat currency as history has proven. Replacement commodity would still experience an increase in value as quality and quantity diminishes. One reason price of quality diamonds remain high is because of control. Control of gold at the mine level only elevates price of commodity.
Will the price of gold rise for ever. No, not even a super currency can defy gravity. Production cost under a global cap and trade will influence price to the up side. Potential productive mines will be discovered in developed, underdeveloped and emerging market nations. Political stability, infrastructure and labor will influence production and price.
Economic turmoil in developed countries encourage hoarding of gold there by pushing price upward. As income level around the world approach discretionary access gold price will exponentially accelerate to the up side. Miners will dig deeper as price rise and so will raw materials, production and labor cost.
Why do human continuously return to this ancient relic currency? It grows out of a basic lack of confidence in monetary authorities. When government and central banks exhibit financial discipline, trust is regained from the populous. Citizen will return to a well regulated, monitored and restrained currency bringing price of Gold to acceptable levels.
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Friday, November 13, 2009
Rouge Financial Jihadists
By September 2008 evidence confirmed derivative markets were experiencing a massive bumper to bumper pile-up. An orchestrated communication break down between law enforcement, regulators and monitoring agencies cannot verify whether the derivative piling-up has ceased.
No one in government is listening to each other. Fort Hood has demonstrated America is still no safer from a terrorist military attack than on 9/11. Government deliberate slow reactions to events such as Katrina in New Orleans, the rebuilding of the twin towers and putting measures in place to prevent financial crisis typifies a “to big to fail” mentality.
Libor remaining below one percent is drowning holders of toxic derivatives related bonds who are expecting a return on their investment. China will not cover its bets involving derivatives that are 80% fraud. Madoff is in jail for 150 years yet no one inside the SEC has been charged.
Entities receiving payment from AIG should experience a claw back if they were bailed-out by congress. Employees of IFC are paid more for racketeering, bait and switch, embezzlement and deception. The fix is in when law enforcer repeat the same mistakes involving criminal prosecution surrounding financial crisis.
Bear Stearns was part of a global ponzi scheme. Government demonstrated it is not willing to water board those who financially threaten taxpayers of current US military operations. Until there is a wash out in matters related to this financial crisis judgment day has been postponed.
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Saturday, November 7, 2009
Dollar shortage alleviated by deficit spending
Inaction by the Administration, Congress and FRS has given the green light to fast trading, primary dealer treasury buyers and shadow exchanges. Inactivation of regulatory and monitoring agencies may slowly deep six the dollar, rule of law and maybe the constitution.
Government’s constitutional mandate to protect, preserve and promote the national interest of the U S of A is inert. It was the IFC that conducted a run on institutional money market funds. Allowing a rouge IFC to capture the national banking system, surrender the capital and robbed the treasury demonstrates the fallacy of government being “to big to fail”.
Taxpayers have experienced an exponential explosion of M3 money supply. This is a classic case of “out of site out of mind”. With more than a conservative $600 trillion unwound derivative market drowning the global economy, a massive supply of dollars are needed to resolve the currency shortage.
Where will this type of money come from? The burden will ultimately rest on the backs of the US taxpayers. How will government justify plunging taxpayers deeper into debt through deficit spending? Possibly another financial crisis caused by a “to big to fail” institution like BOA.
BOA could end up receiving trillions of dollars in toxic assets rendering it insolvent. Solvency of another failed bank, maybe BOA, will force smaller solvent regional and local banks to finance winding down a bailed out institution. Unable to finance the unwinding of a mega bank, smaller banks might end under the control of bailed out institution.
FRS should finance dissolving private member banks when insolvency becomes an issue not government or taxpayers. Potentially bankrupt FRS may not have the financial resources to intervene when member banks become insolvent. Leading the next bailout charge on Capital Hill FRS, Treasury and FDIC will exploit congress’s ineptitude.
Another forced rescue plan with very few strings attached is in the making. Immediately FRS will begin printing trillions of debauched promissory notes at an unknown interest rate. Monetary easement by FRS will cover the auction of treasuries authorized by government.
A continuous devaluation of dollars will enable repayment of foreign creditor at discount prices. Instead foreign creditors have decided to revert to a partial gold standard as a hedge against a debauched dollar carry trade. At zero percent interest rate, a borrowed dollar carry trade is being used to profit from the spread between foreign bond rates.
India’s 200 ton purchase of gold pushed price up to $1100. Under normal circumstances an increase in the supply of gold should pull price down. There could be a shortage of gold in storage preventing a decline in price. US stock exchanges appreciated since March 2009 despite millions of job losses.
Who is investing in these markets? It’s the taxpayer’s increasing debt that is propping up markets through deficit spending, bailouts and stimulus.
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Wednesday, November 4, 2009
Tweaking Confidence
Without government fixing root causes of current turn down. Taxpayers must focus on the collapse of the next growing bubble. Bubble contenders are commercial real estate (CRE) and the mother of all safe havens, the go to of last resort, US Treasuries. Federal government continues to enforce a policy of committing taxpayers to private liabilities.
Perpetuating a cycle of endless spending, taxpayer’s participation in purchasing treasuries to finance deficit spending is no longer required, as the value of surplus dollars deteriorate. Central banks systems were filling the gap by purchasing treasuries, possibly slicing them into traunches, repackaging and marketing them as triple AAA paper.
Collateral swaps of toxic assets may be used to borrow money to purchase securities. Taxpayers observed a drop in the Dow Jones of about 250 points on the news of 2009 Q3 GDP. America is stuck between a rock and a hard place because it is the only country that cannot purchase gold using US dollars.
Any market decline exposes dissipating confidence, declining trust in numbers and dependence on government injections. A jobless recovery will be the norm for government policy and those that no longer have a job may apply for unemployment extension. Will nine percent unemployment become the new normal as full employment?
Somewhere within a dark pool larks a $600 trillion plus derivative market. What volume of money supply is needed to resolve counterparties claims? A shortage of US dollars can only be reverse by increasing supply of money in circulation. Resolution must unwind and flush out financial systems before true economic recovery earnestly begins.
Government lacks grasp, control and motivation to tackle CRE loan workouts. The national psychosis of increasing the national debt through deficit spending in order to grow the economy, which expands money supply, may lead to deflating values of CRE. CRE are picked up by financial institutions that receive taxpayer assurances of loses.
Assurances are guaranteed when price falls below purchase price. Assurances are also financed by stimulus and bailout monies marked to grow the economy.
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Tuesday, November 3, 2009
America's Financial War
Americans taxpayers are in the midst of a financial war. The IFC is attacking the purchasing power of the dollar, credit and personal savings. US government is in a state of denial. Banks are hording billions of dollars that should flow back to the taxpaying consumer.
This hoarding may ultimately lead to the collapse the American economy with an extremely deflated dollar. The attacked started in September 2008 but the Congress, White House, Federal Reserve and Treasury refuse to call it a financial strike.
IFC tried to electronically transfer 5.5 trillion dollars from institutional money market fund accounts. Had this transfer been completed the American economy would have collapsed in eight hours and the global economy in twenty four hours.
IFC is deeply imbedded in governments, political parties, law enforcement, military, banking system, communications networks, public and private corporations. This is how the American taxpayer is being manipulated to advocate bailouts and stimulus.
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Monday, November 2, 2009
Managing money verses expanding supply
Recent events of bailing out bankrupt corporations have proven at best congress members have no idea who pushing their buttons. Congress has corrupted their office given to them by taxpaying constituents. They have squandered the honor and respect due the national legislative body.
Congress is no longer on, or has forgotten and redirected the mission of conducting the peoples business. Congress has failed at keeping America safe, strong and prosperous. The ambitions and desires of congress no longer reflect the goals and aspirations of the taxpaying electorate.
Government has decided to lead the nation down a path that will accelerate destruction of process, dissention amongst electorate and deterioration of congressional authority. Taxpayers have reached a point where reliance on right action from government has proven futile and unwise.
Taxpayers must send those in Washington DC a clear, definite and finale message. Any congressional member who continues to vote for deficit spending need not run for reelection. Expansion of the money supply continues to deteriorate the purchasing power of taxpayer’s income.
History has documented the results of debauch national currencies. Government has created a new accolade while managing the increase and demise of a fiat dollar. It has authorized the printing of more fiat money the world has ever known. Problem with congress is its inability to kick its addiction to deficit spending.
Government psychosis of expanding the money supply and expecting a different result loops back to the only resolve of removing reps from office. Congress is failing as directors on the board of America Inc. Government has disregarded constitutional principles, abandoned capitalist rules and promote a hybrid economy.
The world is littered with examples of nations that overextended themselves. Congress pretends it has designed an innovated solution to managing government. Government repeats the same scripts and runs identical plays all other government must run when spending fiat currency.
Taxpayers are not confused by complexities with rules of order. The smoke screen mantra “the solutions are not that simple” hides graft, incompetence and treason. Taxpayers are marching on Washington DC demanding a return to fiscal discipline and responsibility.
Why would an international financial cartel (IFC), which calculated failure at financial prudence offer guidance and solutions to a crisis orchestrated by their agents inside the Federal Government. IFC lobbyist block resolutions, write bills containing thousands of pages and hides key legislation which enables their cause.
Lobbyist from IFC offers contributions and promises of employment through loopholes passed by congress. Taxpayers must lead a mission back from financial ruin towards balanced budgets by electing fiscally patriotic representatives. If Q3 GDP was so great why did Dow Jones tank by over 250 points. What about the rumor Bank of America is going belly up?
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Thursday, October 29, 2009
The magic of loaning into existence
Now here is where real magic is performed. Taxpayers through the magic of Federal Reserve and Federal Government have become the growth engine of last resort. Government is barrowing money from the Fed. Federal Reserve is buying debt from the government. Neither institution has the reserves, capital or collateral to make such loans but by the income taxes of taxpayers. The Fed simply performs an accounting trick and loans money that it does not have. Paper stenciled Federal Reserve Note rolls of the printing press. In other words they promise to give the taxpayer more paper promissory notes when taxpayers try to collect a dollar
Now is the time for taxpayers to liberate their captured Federal Government from psychological shackles of an International Financial Cartel (IFC). Taxpayers must sacrifice their congressional representatives for the preservation of the political structure of the country. It is time to throw all captured incumbent politician out of congress. Congress has become infected with a corrupting virus. Taxpayers do not have an antidote or vaccine to immunized members of congress from this contagious pandemic. The only cure is an emergency quarantine of all political representatives. This is done by voting the infected out of political office.
Loaning into existence must exercise fiduciary guide lines, rules and barriers. Taxpayers must prevent congress from spending quadrillions of dollars trying to jump start the economy. Compounding interest on a growing debt will eventually lead to a quadrillion dollar debt. Exponential growth of the supply of money will debauch all fiat currency. Debauch US dollars is one reason why nations talk of a new global currency. By the way, stacking $23 trillion dollars on top of each other will reach a height of around 1,380 miles into space.
When the Federal Reserve loans money into existence it should only accept physical assets such as commodities as collateral in exchange for credit. Accepting toxic assets which are over valued, fraudulent and non existent in exchange for treasuries only promotes the ponzie scheme.
Legislation has been dismantled, reversed and repelled by orders given to a captured federal government. These political prisoners of the financial crisis are at the mercy of the IFC. Regulated and monitored institutions should not be allowed to utilize non-approved alternative trading systems. Passing laws are useless if enforcement of rules is prohibited. Unless there are investigations, hefty fines and jail time for those who violate the rule of law, it is a useless act of hyperbole.
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Wednesday, October 28, 2009
Monetary Supply on financial steroid
It maybe time taxpayers took the red pill. The Federal Government and the Federal Reserve System have screwed up the monetary system. The screw up is not by accident. It is not the first time this dynamic duo has bought the US taxpayers to the brink of monetary disaster. Once again the dynamic duo has squandered their fiduciary duty in protecting the value of the national currency. As long as an unregulated, uncontrolled central bank prints the nation’s currency taxpayers will accumulate imposed debt.
These raiders of the money supply are easing taxpayers, who have saved for retirement, into a life of indentured servitude and poverty. Debauch of fiat currency is hundreds of years old and was elevated to a true global level when the US dollar was taken of the gold system. At that moment all fiat currencies were put on financial steroids.
What has happened to US M3 money supply in general and paper currency in particular is a modern day wonder of the world. Forty eight trillion dollars circulating the globe is inflationary because oil is oil and an orange is still an orange. Electronically adding zeros to the money supply which is stimulated by the deficit spending inflates the supply of money and deflates the value of currency at the same time. In other words it takes more savings to purchase property because the value of saving has depreciated.
Taxpayers are now born with an $180,000 debt. This debt has the ultimate steroid attached to it in the form of interest compounding at varying rates. As long as congress continues deficit spending the national debt escalates. Whether treasury pays zero percent interest taxpayers are obligated to repay the FRS which creates more money because of deficit spending by the Federal Government.
Central bank systems create money by loaning it into existence which has produced global GDP around $60 trillion dollars. Where did 90% of the credit used to consummate $666 trillion in fraudulent derivative transactions come from? Who else has been loaning money illegally into existence?
Taxpayers will pay down the national debt by allowing congress to increase debt which only raises the national debt.
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Sunday, October 25, 2009
Exploding implosion of dollars
During 1970 there was about $50 billion in circulation. It took only 37 years to create an additional $700 billion dollars. Roughly between 2005 to 2007 another $50 billion was added to the money supply. As of January 2007 around $750 billion dollars was floating around the globe in one form or the other.
At this rate, a day is coming when the Congress and Federal Reserve System (FRS) might pump $50 billion dollars a day into the economy. There is a powerful reason why the FRS stopped publishing the M3 component of the money supply. It may have something to do with institutional money market mutual funds and the derivative market. When M2 hits ten trillion dollars the FRS might stop making this information public.
Growth of the American dollars in circulation has exploded at an exponential rate. The combination of national debt, deficit spending, stimulus and bailouts are contributing factors. What finite debt number which is so large, payoff becomes useless and impossible? At zero percent interest, safe haven treasuries may be savaged by the inflation rate. Printing more promissory notes deflates the value of dollars already in flow.
Creating dollars via computer program that electronically adds zeros to exploding deficit spending is also inflationary. Taxpayers are caught between the two headed inflation deflation dollar. When the amount of dollars is greater then the total amount of foreign currency held by the rest of the globe, what will happen? How high will interest rates climb to ward off hyperinflation?
Has the taxpayer reached the point where the quantity of debt in global circulation can no longer sustain the purchasing power of U S dollars? What of the estimated $666 trillion derivative market which are ninety percent fraud, larceny, embezzlement and racketeering? How could there be an industry ten times GDP of all global economies trading on legitimate exchanges? The derivative industry epic center is the United States of America’s financial system.
What is the average yearly rate of change in the total U S dollar money supply? How many years will it take to double the current supply of U S dollars? What is the time line for the current national debt to double from to date? With a jobless recovery there is no way taxpayers can continue payment on the national debt.
Taxpayers may probably default on debt owed to recently bailout FRS. Something is broken in the US but it is not the income tax system.
http://www.opineeconomics.blogspot.com
Friday, October 23, 2009
Pauli Exclusion Economics
A New World Order and the U S of A are incompatible entities that cannot dominate the same global economy. One must acquiesce to the other. A possible new hegemonic order could either be a restructured
Creating a new monetary carry trade can produce shock waves on economies until safety, security and trust is established in national markets. SRD, regional currencies or a basket of currencies are fillers that may support the transformation from the known to the new currency.
What about the US Constitution, dollar and borders? The NAU requires the transformation or dismantling of all three columns of support. Could the US Military whom has sworn an allegiance to constitution, country and flag, legally make the transition with out compromising their loyalty and oath of duty?
How will a new world order affect the
Can the U S continue to be the world superpower while creating massive debt and not assuring foreign creditors? Can
Wednesday, October 21, 2009
No way out
Congressional button pushing and reacting to the consequences or impulsively cutting wires is national suicide. To fix the financial crisis congress has to admit and correct the opening of financial gates and pulling in the IFC horse was a fatal economic calculation. Correcting this financial crisis may require reinstating the Glass-Steagall act plus breaking up IFC units that are “To big to fail”.
Once government institutions are occupied, IFC will never voluntarily abandon the regulatory agency. A captured federal government has allowed 685 bailed out IFC units an opportunity to rejoin the federal banking system and finance more taxpayer’s debt. Congress has probably given away around $200 billion of taxpayers TARP money which will never be recovered. Congress should finance and deploy a legion of new law enforcement agents, substituting for those hundreds of agent occupied by terrorist plots since 9/11.
By cleaning up fraud, embezzlement and racketeering associated with the global meltdown of September 2008, government will create a way out of a tunnel with no light at the end. Government liberation will remove psychological shackles put in place to control taxpayers.
The march back to fiscal responsible lines will be difficult and treacherous. Many congressional careers will not survive. The choice of trusting the IFC or embracing the Constitution is a decision each member has to make. The IFC has no quorums about taking down the U S Constitution, economy and dollar in the name of control.
Should congress stand and legislate? A lot of dirty tricks salvoes will be used to demoralize the congress. Only a cohesive, bipartisan congress will survive a standoff on the journey back from the abyss. The environment is not conducive on the path back to stewardship of taxpayer’s money. Cooperating, covering and concealing IFC agents will only lead to exposure of a complicit congress.
Thursday, October 15, 2009
The Verdict is Guilty
An international cabal which includes finance, media, academia, science and government is pillaging, plundering and plucking the treasury, taxpayers and the U S economy. The U S government has surrendered but continues covering up this take over through its operatives in the administration and congress.
President George W. Bush summed it up when he stated “I abandoned capitalist principles to save the capitalist system”. The question is whose capitalist system did he save? The administration certainly did not save America’s capitalist system which has been turned up side down.
A free market capitalist system has a mechanism for dismantling failed business models in an orderly manner. It is called bankruptcy court. Free market capitalism allows willing and able institutions, fill gaps left open by broken business models.
Assurance, trust and confidence are important words to taxpayers as well as observers outside of U S borders. Creditors watching the U S of A’s unfolding financial crisis will determine whether they continue to finance American debt.
Major economies continue to move towards a new monetary carry trade. Oil is no longer trading primarily in U S dollars. The U S dollar is deflating in purchasing ability and inflating in quantities circulating the globe.
The verdict is the U S government is guilty of a massive cover up.
Wednesday, October 14, 2009
Reparations for Taxpayers
Wall Street will give out bonuses in the area of 140 billion dollars by the end of 2009. The Street is smiling because they believe taxpayers have swallowed the Ponzi scheme hook, line and sinker. These bonuses are the result of racketeering, fraud, embezzlement, theft and lying to congress.
A large portion of bailed out Wall Street profits and bonuses should return to taxpayers for pay down of debt incurred bailing out “To Big to Fail” institutions. Instead bonuses are only going to those who have prospered from this financial crisis, engineered recession and a coming depression.
The manufacturing of the securitizations and derivatives bubble was allowed by corrupt, complacent and captured regulators who failed as stewards of taxpayers. This bubble is ten times the size of the entire global economy. If this is not criminal, then where did the money come from?
Congress pretends their plates is full with busy work but the solution to this crisis is law enforcement, implementing prompt corrective action and reinstating laws such as Glass-Steagall. The federal government has willfully failed to fix the problem of off shore wealth going untaxed.
Dow Jones has closed above the 10,000 mark thanks to the largess of taxpayers and creative accounting. The unprecedented infusion of taxpayer’s money into Wall Street has a strong correlation to the expansion of the new stock market bubble. The volume and manipulation of stock do not justify inflating securities on market exchanges. Especially since no regulator is sure all front running, dark pools, shadow exchanges and fast trading has been shot down by those that manufacture bubbles.
There are good prudent banks that were not caught up in securitization and derivatives. These prudent banks are currently filling the gap left by TBTF institutions. Many top economist and financial analysis believe that there will be no recovery unless the TBTF insolvent banks are dismantled in an orderly fashion.
The Federal Government continues to demonstrate that it is no longer in charge of a U S of A’s recovery. Taxpayers are witnessing a massive cover up of a broken economy and failing financial system.
Stimulus is not FREE
Back in state side, it has been acknowledged by financial agents elected to congress; defaults on RMBS are good and help to maintain the value of real estate. As long as banks can keep none paying mortgages on their books without foreclosing or restricted by the liability, banks will retain all stimulus or bailout money to cover all financial requirements
Since the first stimulus and bailout package did not give much of a bang for the buck. Government has decided to keep stimulating until there is some measurable growth in the economy. Yes, taxpayers will have to allow a little congressional pork for having unwilling skin in the game.
A two front financial crisis, deflation and inflation, will lower wages and salaries while increasing unemployment, enlarge the supply of money and devalue the dollar, keep interest rates low, expand the budget and national debt. A two front financial crisis is dismantling the U S dollar carry trade and infusing a gold market with none filling demand.
The U S economy has been attacked by both deflation and inflation. Although the credit industry in general has raised interest rates on credit cards, less people have a large enough credit line to stimulate the last quarter of this year. Cash for clunkers deflated the number of insured, older and working automobiles but inflated the number of foreign cars on U S roads. What price is the taxpayer willing to pay for another stimulus?
Sunday, October 11, 2009
Saturday, October 10, 2009
Exporting Manufactured Bubbles around the Globe
President Obama nomination for the Nobel Peace Prize within eleven days of his presidency represents the most recent US bubble exported around the world. The bubble is based on confidence in a peaceful global future orchestrated by a world wide popular American president.
Winning the prize has given President Obama the opportunity to both redeploy the U S military out of Afghanistan and allow the so call moderate Taliban governance over that country. Another possibility is global support for a preempted strike on Iran. Iran is currently accepting euro payment for its oil and amassing huge quantities of gold instead of American dollars.
A bubble creates an illusion of reality. Bubble manufactures mask their intention to manipulate the economy and deceive common folk. By the time this popular presidential bubble breaks the Obama regime along with its handlers should have accomplished their goals.
What happens when the last bastion of hope dissipates because of an implosion of the mother of all bubbles? Do not be surprised to find within the dark pool of unregulated derivatives a massive fraud of U S government treasuries.
A global exodus from the dollar as the carry trade currency will also undermine the safe haven of U S treasuries. Taxpayers may have reached a point of no return concerning deficit spending by congress. What will happen the day congress can no longer spend money that it does not take in through taxes, fees and fines? Will the Feds raise interest rates?
How high would income taxes rise to pay the interest on the national debt? The administration, congress and the judicial will pretend they had no idea, were surprised and could not have seen what is coming.
History has documented the fallacy of a fiat currency. As in 1775 when a fiat bubble broke around a U S colonial currency and within a year American patriots were at war promoting the concept of independence.
The question is whether the power that is poses the ability and tenacity to inflate another bubble, siphon of commissions, transaction fees, sell their positions and transfer all losses to taxpayers. Deficit spending is a threat to all children.