"Massive fiscal and monetary stimulus, along with unprecedented market interventions, has completely overwhelmed the capacity of the markets to effectively price risk. Instead of learning from past mistakes, policymakers are more determined than ever to dictate market pricing. Rather than recognizing the prevailing role Activist central banking has played in fomenting dysfunctional markets, policymakers believe market outcomes beckon for only greater activism. Until governments can begin to extricate themselves from the manipulation of interest rates and risk market pricing more generally, this long cycle of destructive booms and busts will run unabated." ~ Doug Noland (Prudent Bear, the current bust is a systemic failure and the climax of capitalism having run its American course, worse than endless boom & bust)
"When you add that no default will be declared a default by the Intl Swaps & Derivative Assn, you have a guarantee that QE will go to infinity at the cost of the US currency market first and the US bond market second. I put this epic event in the year 2015. I give the US dollar no longer than June of 2012 before the cracks in its armor are visible to all." ~ Jim Sinclair
"But please, to our friends in the Big Media, could we stop saying that we don't know the location of the missing $1.6 billion of client funds from MFGlobal? The money is safe and sound at JPMorgan and other counter-parties. As with Goldman Sachs et al and American Intl Group, the banks have been bailed out at the cost of somebody else. And the various agencies of the federal government are complicit in the fraud. The effort by former New Jersey Governor and MFGlobal CEO Jon Corzine to save his firm by stealing customer funds seems to warrant further discussion, yet instead we have silence. So why is it that the Large Media has such trouble reporting this story? The fact seems to be that the political Powerz that be in WashingtonDC are protecting JPM CEO Jamie Dimon from a possible career ending kind of stumble with respect to MF Global." ~ Chris Whalen (Institutional Risk Analyst)
"European leaders repeat the same kind of platitudes, [like] we need to get growth going, [like] austerity will not be enough, but no country has policies that will achieve growth. I have not heard a single thing here in Davos that has convinced me that the European leaders have any sense of what they need to do and will do. Nobody knows who owes what to whom, where the risks of a Greek default are." ~ Joseph Stiglitz (Nobel Prize winning economist, whose words were the only wisdom or story worth reporting from the Davos World Economic Forum, a country club gathering of criminal bankers and their investment fund cohorts)
"Thank God that at this hour I am dangerous to the war profiteers of this country, who rob the people on the one hand, and rob and debase the government on the other. Then with their pockets and wallets stuffed with the filthy bloodstained profits of war, they wrap the sacred folds of the Stars and Stripes about them and about their blatant hypocrisy to the world." ~ Kate Richards O'Hare (1917)
"We are up against the abyss. The psychopaths who ran us over the ledge in 2008 are still doing the shepherding. They are the 5% controlling the herd. Even if the current group of psychopaths went to jail, there would just be another group of Wall Street psychopaths filling their shoes. That is the problem with Corporatocracy. A revolving door turns between these corporations and our government." ~ Davos Sherman Okst (corporatocracy is another name for the Fascist Business Model)
◄$$$ BACKGROUND EDUCATION IS URGED TO LEARN
ABOUT THE ROGUE INDEPENDENT NATURE OF THE
See an excellent historical treatment, with up-to-date
entries of the TARP era dispensation of $26 trillion
on near 0% loans. The loans will never be repaid,
more like grants. One could think the elite prepared
for purchasing the world's assets on a gift card
replete with privilege. One could also think the
elite have suffered major financial blows in the
last few years from the Western bust, and required
replenishment. Many researchers believe the Western
bankers were tripped into the systemic failure that
began in 2008 and continues today, in retaliation.
Both arguments have merit. The corruption, reliance
upon violent crime, and diversification of the elite
interwoven system is astonishing and impressive.
It extends to the news networks and pharmaceutical
industry. The latter should give warning of intentional
genocide programs with toxic substances and microbe
agents. Monsanto is the food industry agent for
poison, at the genetic level. See the Divine Cosmos
article, more like a long essay (CLICK HERE).
Thanks to JuanC in
◄$$$ UKGOVT DEBT HAS SURPASSED GBP 1 TRILLION. THE DEBT BURDEN IS EVEN HIGHER IF BANK BAILOUTS ARE INCLUDED. THEY ARE DEAD MONEY INVESTMENTS TO TURN TOXIC, IF NOT ALREADY. THE UKECONOMY WILL CONTINUE TO SLOW, AS THEIR CHRONIC RECESSION CONTINUES APACE. $$$
Naturally, the UKTreasury has blamed unsustainable levels of spending by the last administration led by the Labour party. The British public debt has surpassed the GBP 1 trillion for the first time ever. The figure rises dramatically when bank system bailouts are considered in the tally. The debt is the highest since records began in 1993, and represents 64% of GDP. The debt service costs are estimated at GBP 47.6 billion in the current financial year, rising gradually in future years. The urgency to bring the deficit under control is widely felt, but the ability to handle it is nowhere. The nation suffers from following the American housing & mortgage boom and bust policy toward total ruin. The only good piece of news is that borrowing volume is 10% lower than it was last year. The debt continues to increase. A grand challenge is presented to put the national finances back on a sustainable footing. The situation demands a permanent 0.5% official interest rate, or else the service costs will explode. Tax receipts are falling short of the fiscal forecasts. The national economy is beset by a chronic recession that does not receive proper reporting. Reliance upon rising rabbit hutch cottage homes turned out to be a disaster, exactly as the Jackass forecasted in 2005 and 2006 and 2007. They are bound by the same fictional economic forecasts that the Americans are bound to. See the UK Telegraph article (CLICK HERE).
◄$$$ THE SWISS BANK COMPETITION COMMITTEE
HAS BEGUN A PROBE INTO INTERBANK INTEREST RATE COLLUSION.
THE CORRUPTION WITHIN THE BANKING SYSTEM IS ALMOST
TOTAL, REACHING EVERY LEVEL AND EVERY WESTERN NATION.
EVERY COUPLE MONTHS A NEW SCANDAL IN
Swiss banking authorities have launched a probe into twelve US, European, and Japanese banks over claims of rate fixing for their interbank lending rates. The Swiss competition commission COMCO is acting upon information as to potential unlawful agreements. The allegations centre on Libor and Tibor, the interbank lending rates. COMCO believes that collusion between derivative traders might have influenced the rates, used directly as benchmarks for financial products such as mortgages. COMCO said, "Derivative traders working for a number of financial institutions might have manipulated these submissions by coordinating their behavior, thereby influencing these reference rates in their favor."
COMCO has the the listed banks under investigation.
The banks under review are UBS, Credit Suisse, Bank
of Tokyo-Mitsubishi, Citigroup, Deutsche Bank, HSBC,
JPMorgan Chase, Mizuho Financial, Rabobank, Royal
◄$$$ A GIGANTIC MINDBOGGLING COUNTERFEIT
CASE HAS BEEN CRACKED IN
As preface, in the summer of 2009, a highly unusual
story circulated when two Japanese nationals were
arrested trying to smuggle $134 billion of US bearer
The police force came from the southern city of
A savvy colleague pitched in for a better interpretation of the event unfolded, providing a light of historical reality. He wrote, "Of course the bonds are not fake in the trivial sense. They were intentionally flawed and used to dupe the Asian Dragon Families decades ago into giving up their metals with the idea they would never be redeemable. The flawed bonds must have fallen into low level criminal hands with the passing years, redeemed at progressively lower value on basement trades. They might have value as collateral even if they cannot be cashed." My conclusion is simpler. Back in 1934, if the entire USEconomy had a Gross Domestic Product more than a few $billion, it would be shock. If the entire USDollar circulation stock was more than a few $billion back then, it would be a shock. If the entire USGovt budget was more than several hundred $million back then, it would be a shock. Therefore, conclude that legacy bonds are very much counterfeit.
◄$$$ THE OLDEST BANK IN
Wegelin Bankers is a very old Swiss bank. It had
ironically nurtured an anti-US stance in recent
years. It served as haven for funds seeking safe
haven. The Swiss banks no longer want the safe
haven status since it invites the Anglo attacks
in retaliation, and furthermore, the fund influx
drives up the Swiss Franc currency in unwanted manner.
Foreign accounts for Americans are an open book
with full disclosure, a far cry from decades past
when narco money and Selassi money and Marcos money
was welcome. In an unrelated case, a good friend
My view is that the working capital of Credit Suisse has evaporated, along with working capital of UBS. The Swiss banking sector is imploding by all accounts, as the CS and UBS flagships are both wrecked vessels, stripped of their gold, leasing gold from allocated accounts, stealing from clients, and recently defending against class action client lawsuits. The Swiss banking sector suffers from three important factors attributed to decline and loss. The toxic bonds from mortgages have extended to sovereign bonds. The Eastern European mortgages are a vast wrecking field. The privacy of accounts has been shattered, leading to vast account departures and shutdowns. The first two have led to grand losses in reserves, while the third has resulted in funds departing en masse. In general, where the USGovt leaves its mark from influence, a black hole results.
A certain legitimate fascination has come in recent
weeks to the German success story. They have wealth,
savings, industry, and trade surpluses. They earned
their AAA debt rating, whereas the
◄$$$ ALTERNATE PERSPECTIVE ON
To be sure, the AAA core in
A German banker source provided a perspective on
the European interplay, as well as a revealing glimpse
◄$$$ THE USDOLLAR-BACKED CANADIAN GOVT BOND
IS AN EXERCISE IN ABSURDITY AND COWTOW. FINALLY
Minister of Finance Jim Flaherty announced that
the Canadian Govt has submitted plans to issue a
Another perspective came from a high level consultant
◄$$$ A GROTESQUE ANOMALY ON FEBRUARY 13TH DISPLAYED IN FULL VIEW THE ILLICIT ARBITRAGE IN THE CRUDE OIL MARKET. THE U.S.O. EXCHANGE TRADED FUND IS TIED IN CORRUPT FASHION TO RIG THE CRUDE OIL PRICE. THE MARKET SHUT DOWN FOR ONE HOUR, WITH NO EXPLANATION OFFERED. JUST ANOTHER ETFUND TO RIG A MAJOR COMMODITY PRICE. EVERY US-BASED MARKET IS BROKEN, CORRUPTED, AND A CONTROLLED PLAYGROUND. $$$
Monday February 13th, the honest watchers patrolling the crude oil market could witness a magnificent rare event. The crude oil market has been corrupted for a decade or more. The crush from $140 to $40 in 2009 was a gigantic vivid signal for the corruption, never properly reported. In no way did demand vanish or supply reappear to justify the price movement. The CME crude oil market was halted for over an hour on the 13th during what seemed like a heart attack event. An errant trading pattern occurred. It did not cause a crash. But the irregularity was stark and revealing of a tethered line between crude oil and the USO fund that tracks the oil price, enough for officials to shut down the crude oil market temporarily. The USO fund was controlling the crude oil price, not tracking it, and the evidence was visible in the open. It went offline for a full 75 minutes. An algorithm went berserk for certain. Some block orders choked the system. The tethered line to the USO fund went awry, its control box used to short crude oil with client investor funds. The quote stuffing went out of control. Notice the crude oil price has gone over the $100 mark after many months. If the US$ DX index is making a nice move up, then the oil price should go down and relax. The hedging against a broken USDollar is a major trend. The Boyz have been trying to keep the oil price under control, and the USO fund is a main control panel tool. Check out the Nanex visualization of what occurred in those seconds between 13:59:57 and 14:04:55 when "a blast of quotes corrupted a memory queue causing the software to believe the queue was full all the time." Those are the official market words. Back in May 2010 the fabled flash crash hit several markets simultaneously. This time another rogue algorithm hit. Do not expect the incident to be brought under review, or for any precautionary action to be taken. No need to label the market as corrupt and in need of examination.
Tyler Durden offered the following account. "On February 13, 2012 starting 13:59:57, quotes for crude oil began queuing. At 14:00:35, all of the queued quotes were sent at once. Again at 14:01:08, the same 38 second block of quotes sent earlier was sent again, old timestamps and all plus a few new quotes. Again at 14:01:18, all quotes since 13:59:57 were sent again. This repeated 12 times. From a programmers perspective, it looks like a system problem caused a blast of quotes that corrupted a memory queue, causing the software to believe the queue was full all the time. Tick chart of bid prices (red) along with quote age (blue). Note that as the cycle repeats, it includes a few more quotes (the new quotes + those since 13:59:57). There are 500 quotes between time axis labels. The 500 millisecond chart of ETF US Oil Fund (USO) showing massive quote traffic as it reacts to stale futures quotes." See the Zero Hedge article (CLICK HERE). Some might argue of no proof for USO controls evident. The entire incident could not have occurred without the control linkage. If the USO exchange traded fund truly tracked the crude oil market, then the USO would have simply shut down and gone quietly. It too reflected the cardiac fibrillation. See the quotes in blue and bids in red.
◄$$$ FOR UNITED STATES, THE PATH TO THE THIRD
WORLD NATION IS PAVED ON A ROAD THAT HAS BEEN STRIPPED
OF INDUSTRY. THE TREND CONTINUES TO REMOVE AND DISMANTLE
INDUSTRY. THE UNITED STATES IS THE LEAST INDUSTRIALIZED
AMONG THE MAJOR LEADING NATIONS. WITH THE GLOBALIZATION
The Third World is guaranteed for the
The following data details about the de-industrialization
Ford Motor Company recently announced the shutdown
of a Ford Ranger small truck plant in
The Economic Policy Institute estimates that the
USEconomy will lose over half a million jobs in
the current 2012 year alone. The
Amidst the many changes toward Third World status
◄$$$ THE NEW USGOVT TAX PROPOSALS AGAIN ARE PUNITIVE AND DAMAGING. APART FROM THE ARGUMENT THAT SPENDING IS ABSURDLY HIGH AND SUPPORTS A VAST SOCIAL SAFETY NET AND A GRAND ENDLESS WAR, THE TAXES RENDER HARM. THE WRECKAGE PROCESS CONTINUES. $$$
On page 73 of the Green Book pertaining to the USDept Treasury, the benefit for the tax proposals is stated as $584 billion, when the Congressional Budget Office estimated it at only $293 billion. Taxes would be levied on a new category of taxable income, including the municipal bond income, contributions to 401k retirement plans (like IRA & Keough), and the entire health insurance premium regardless of who pays it. The only good part is the tax rate applied for these incremental punitive taxes will be calculatd as the top statutory tax rate minus 28%. For example, a taxpayer subject to a top statutory rate of 35% would pay a 7% tax on this income, the difference. So municipal bond investment supply will go down, harming state finances. So retirement funds will go down, thanks to the USGovt tap. So health insurance costs will rise from the tax back door, leaving less for basic household essentials. This is not progress. These measures will assure the USEconomic recession worsens by tightening the noose a little more. Observe the American austerity poison pill. See the Zero Hedge article (CLICK HERE).
CHINESE SHADOW ON THE UNITED STATES
A global consultant from Europe has had ample experience
Note the sheer size of
◄$$$ US GOVERNORS WENT TO
On university campuses within
DOMESTIC SCREWS TURN
◄$$$ ROMNEY HAS THE BIG BANKS ALIGNED IN A CONDUIT. IF VICTORIOUS HE WILL PROBABLY HAVE ANOTHER GOLDMAN SACHS CAPTAIN AT THE USTREASURY POST. WITH OBAMA POPULARITY FADING, THE SYSTEM MIGHT BE BACKING A NEW HORSE. $$$
The Obama Admin might be eating leftovers at the
banker banquet, compared to four years ago. Compare
the Romney donation support by the Wall Street banking
community in 2011, stronger than those of Obama
in 2008. One might conclude that Romney would perpetuate
the Goldman Sachs dominance at the USDept Treasury,
my steadfast signal for continued corruption and
control. Notice the stern talk by Romney lately
about maintaining such a strong national defense
that no nation would dare challenge the
◄$$$ SECURITY MATTERS HAVE BECOME CONFUSING WITH THE MANY UNCLEAR ATTACKS. THE ALLEGIANCE OF THE SOURCE FOR VIOLENCE IS NOT SO CLEAR. THE RECENT INTERNET CENSORSHIP BILL MIGHT SERVE AS A MILESTONE EVENT WITH BROAD IMPLICATIONS. LOOK FOR IMPORTANT BACKFIRE EVENTS THAT DELIVER SERIOUS BLOWS TO THE POWERZ WHO WISH TO INSTALL A TOTALITARIAN POLICE STATE. $$$
When the US Defense contractors were hacked last year, my ears noticed it as a significant event. To be sure, the Sandia Labs under the second Clinton Admin marked a seminal point as the Chinese snatched some important weapons systems right off the poorly secured website. When the defense contractors were hit last year, it seemed the Boyz (aka CIA) might have been involved to exploit the original breach, to expose the problem to the mainstream and legislative process, to cause some significant damage, in order to prompt legal action for broad controls. But with controls come censorship and pushing the channels toward website registration into the corporate mainstream. Imagine not $32 for annual registration of a website name, but $2000 or more. One could conclude the hacks would continue in order to aid the Internet Control Project known as Stop Online Piracy Act. Two separate legal issues are at issue, the raids of intellectual property such as books, music, and software, even patents. The other side is censorship itself, the active removal of content deemed unsavory, offensive, or critically on the mark. Banning websites has nothing to do with online piracy. So watch the scope grow in the bill as it hatches. Refer to internet journals that feature regular stories about USGovt corruption, Wall Street fraud, legislative collusion, agency involvement in narcotics, environmental violations, and regulatory coverups during absent prosecutions.
Other significant events have been WikiLeaks of
questionable type. Lately Anonymous has pitched
in some powerful messages. It is unclear whether
major factors are indeed run by White Hats or Bad
Boyz wearing favorably colored hats in a deception
to further a hidden agenda. The Tea Party has been
totally coopted in my view. To be sure, it contains
some tough minded politicians who refuse to yield
on budget tightening, but over 90% of them voted
to continue the extreme powers of Homeland Security
in an exercise to tighten security at the expense
of liberty. This was a major copout. The Tea Party
has lost its original plank of zooming in on Wall
Street bond fraud and its engrained corruption in
two USGovt branches. Once in the USCongress, its
members receive the gravy from the bank sector in
donations, thus silence in control, or perhaps threats
to avoid obstruction. A big backfire against the
Empire seems underway outside the
The next ugly chapter seems hellbent on the Stop Online Piracy Act, designed to take control of the Internet, but disguised to protect intellectual property. A sage global consultant with strong ties to certain Western but non-US security organizations made a comment. He knows what he is talking about, a veteran in two decades of high stakes security battlegrounds. He said, "Anonymous is like Al Qaeda, an invention of and run by the Langley Boyz at the CIA. Most of the people working with the Anonymous organization do not know whom they serve. However, this one could very well backfire for the Boyz big time."
Let it be known that Facebook has sold out to the Syndicate. Recall the Goldman Sachs investment last year, their calling card for control. Billionaire status has its price. Numerous Facebook invitations come to the Jackass, but when investigated, the people usually did not send them. The USGovt agencies have coopted it, using the social network to track and monitor people of interest. My policy is to refuse all invitations without thought. All online commercial transactions are also coopted since the old flagship Motorola chips went away and the Pentium chips took the dominant role. The newer chips have a backdoor for agency monitors. All innovative technology is coopted. Notice that Blackberry had some severe technical glitches last year, a direct response to their refusal to be coopted. They command unique leading edge telecom technology. They will stumble until their value is so low that they will sell out.
◄$$$ THE NEW YORK TIMES HAS PUBLISHED AN ARTICLE WRITTEN BY F.B.I. OFFICIALS TO THE EFFECT THAT GOLD OWNERSHIP AND CRITICISM OF THE USDOLLAR IN WEAK POSITION AS GLOBAL RESERVE CURRENCY COME FROM FINANCIAL TERRORISTS AND EXTREMISTS HARMFUL TO THE NATION. THEY ADDRESS MANY LEGITIMATE THEMES LIKE DISSENT AIMED AT POLICE OFFICERS AND TAX COLLECTORS (NOT BANKERS) DURING A TOUGH TIME FROM FEDERAL RENEGADES, RESULTING IN VIOLENCE. $$$
The FBI has gone public with warnings that extremists
pose a security threat. Anti-USGovt extremists opposed
to taxes and regulations pose a growing threat to
local law enforcement officers in the
◄$$$ NEW MORE STRICT CAPITAL FLOW REPORTING
REQUIREMENTS ARE SOON TO KICK IN. BANKS WILL BE
REQUIRED TO REPORT LOWER AMOUNTS IN MOVEMENT. THE
RULE WILL APPLY TO THE GROUND LEVEL ACTIVITY IN
PICAYUNE VOLUME. $$$
A source with USDept Treasury information access
has informed that starting in a couple months (unsure
of exact time), the $10 thousand lower limit will
change to $2500. Banks that move over $10k must
report the transactions to the USGovt. That amount
is to be cut by a factor of four soon. Furthermore,
on basic MoneyGram or
◄$$$ INCREDIBLY, PIMCO IS BEING REVIEWED
FOR WHETHER IT IS FORMALLY TO BE DECLARED A SYSTEMICALLY
IMPORTANT FINANCIAL INSTITUTION, SUBJECT TO HIGHER
OVERSIGHT. IT HAS GROWN TOO BIG. THE NET IS FALLING
ON THE PRIVATE INVESTMENT SECTOR. THE
It seems the Pacific Investment Mgmt Corp has grown so big that it endangers the USTreasury Bond. What might soon follow is mortgage regulatory oversight, perhaps inclusion of USDept Treasury officers on PIMCO strategic decision teams. The concern is that the giant manages so much money for pension funds that it could render deep damage to the USEconomy if it ever suffered a failure. The firm has doubled in size to $1.36 trillion in assets since the collapse of Lehman Brothers in 2008. Furthermore, decisions to abandon the USTBond under control could send bond yields higher, rendering other damage. The veil appears to be in the making to justify placing controls on PIMCO since it could abandon USTBonds and USAgency Mortgage Bonds and inflict great damage, even harm national security. Its flagship fund relies heavily on derivatives to place risk insurance against bonds. The fund's size and scope have become so unwieldy as to possibly be unmanageable. If a trading party should fail, some ripple effects could come. Bear in mind that a year ago, Bill Gross disliked USTBonds due to the rising USGovt deficits. Maybe he did not appreciate the corruption laced throughout the top tiers, or the basic abuse of leverage devices like the Interest Rate Swap contract to keep bond yields under control. He might be seen as a renegade who requires a lassoo.
Also the Goldman Sachs lieutenant Neil Kashkari
came to serve as head of global equities in December
2009, a move that seemed odd since he had no great
experience in such investment circles except for
being in charge of Goldman's Information Technology
Security Investment Banking, advising public and
private companies on mergers and acquisitions and
financial transactions. That post seems more like
an apprenticeship before moving directly to a director
post of a premier fund firm. The bond giant PIMCO
decided three years ago to build an active equity
management business from nothing. Kashkari did earn
his syndicate stripes when he served on the TARP
team, officially the Interim Assistant Secretary
of the Treasury for Financial Stability. That was
a colossal fraud and effective distraction. It seems
that he has been installed within PIMCO to serve
as eyes and ears, but with an official substantial
role to serve. Kashkari comes from the
FINANCIAL FRAUD GONE WILD
◄$$$ LAX PROSECUTION GOES HAND IN HAND WITH THE FASCIST BUSINESS MODEL. THE CRIMINALS ARE THE USGOVT PARTNERS, IF NOT MASTERS WHO RUN THE AGENCIES DIRECTLY OR THROUGH THEIR HAND-PICKED LACKEYS. AS CRIME IS THEIR MAIN MEAL TICKET, IT IS PERMITTED, ENCOURAGED, ORGANIZED, PROTECTED, AND HARDLY EVER PROSECUTED. $$$
Almost all prosecutions of heavy fraud in the financial
sector has been of people outside Wall Street. See
WorldCom, Health South, and others. The goal is
to give the appearance of fighting crime, but to
protect the criminal fortress where the power lies.
The higher profile cases focus on patsies and irrelevant
side shows. A patsy is the UBS rogue trader. A side
show is the Galleon case out of
The Obama Admin is even more unwilling to prosecute
high financial crimes, which would probably bring
down the system. That is because the power center
for the USGovt itself lies in the big banks responsible
for the fraud. The Obama cops are no better when
it comes to corporate, securities, and bank fraud
than the predecessor. Prosecutions of these three
categories of crime are best linked to the causes
of the broad deep lingering crisis that plague the
The volume and type of fraud cases would require 1000 pages to enumerate and elaborate. The latest gigantic crime is the absent payouts on Credit Default Swaps from European sovereign bonds after their valuation whacks, a clear default that has avoided awards by pure force levied upon the investors. The cohort complicit banks in the grand government bivouac, again the mainstay of the Fascist Business Model, complain little since they receive so much above board and below board aid. The hedge funds are the angry betrayed parties, who might someday have their day in court since often excluded from accords struck. The result is ruined system integrity on debt insurance fraud. The Obama Admin has a particularly stained USDept Justice under Eric Holder. He is so dirty that laundry cycles could spin to eternity without a cleansing. Each successive Justice team seems more devoted to crime than the previous. Holder has some fingers pointing at him for bribery to avoid USGovt prosecution. The Fast & Furious weapon sales to Mexican drug lords should have resulted in his dismissal, if not prosecution for sedition. See the Daily Caller article (CLICK HERE).
See the Jackass public article entitled "Corruption in Fascist Business Model" for a descriptive outline of the climax of corruption within the partnership model that covers several important pieces on the chess board. They seem to move together. The vast bond fraud is permitted, encouraged, planned, and executed with the direct cover of USGovt agency and regulator protection. See the Goldman Sachs insider trading UNIX box on flash trades, where the FBI confiscated the software and made certain the evidence was not published. The stories are truly endless. Best to view the Justice track record from afar to see the inaction, rather than ineffectiveness.
◄$$$ ANN BARNHARDT CALLS IT 'GAME OVER' ON FINANCIAL MARKET LEGITIMACY AGAIN. THE DERIVATIVES CONTRACTS WILL BE DISHONORED. THEY ARE A ONE-WAY STREET OF REVENUE GATHERED WITHOUT AWARD PAID OUT ON SUPPOSED BOND DEFAULT INSURANCE. ONCE MORE THE TOO BIG TO FAIL PRINCIPLE IS AT WORK, BUT NOT MENTIONED SINCE THE INSURANCE FRAUD IS SO OBVIOUS. THE BIG BANKS LIKE GOLDMAN SACHS AND JPMORGAN COLLECTED $TRILLIONS IN CDSWAP CONTRACT PREMIUM AND WILL AVOID ALL INSURANCE PAYOUTS SINCE THEY CONTROL THE REGULATORY BODY. $$$
Ann Barnhardt continues her tirade, providing good
perspective on the rapidly deteriorating situation
Integrity within the system is vanishing, spelling
the end of big
Barnhardt suspects the bondholders are going
to take the full brunt of the 70% haircut. The
Intl Swaps & Derivatives Assn (ISDA) is charged
with the decision on whether or not a default has
happened. She expects the ISDA will declare that
this credit event is NOT a default. They might even
hint that payouts would threaten the entire
Expect that Goldman Sachs and JPMorgan wrote the
CDSwap contracts in large volume. The MFGlobal crime
scene shows JPM illictly hypothecating and leveraging
the customer funds into European bond positions
hedged with Credit Default Swaps. My theory is that
MFG was the JPMorgan lackey, covering the big bank
exposure in netting to zero the risk. All the large
financial firms are making grabs at the available
customer collateral, an ugly consequence of their
deep insolvency. They are broke, and do not have
the collateral on the important contracts that serve
as structural planks in the broken financial system.
The GSax and JPM banks of the world are happily
gathering $trillions in CDS insurance premiums.
The reality regarding the CDSwap contracts extends from their binary nature. CDS are not like regular options. Either there is no default, or there is, and the payout required would be massive, with no legal middle ground. A partial bond loss is a technical default, as the debt rating agencies have competently and boldly declared. No moderate CDS payouts are part of the insurance contract, since all or nothing. The CDS outcome is to swap ownership of the bond for full reinstatement of their insured value. The size of the CDS market is in the tens of $trillions. It is a fraud in progress bigger than the housing bust and mortgage bond debacle. Again, it is Game Over.
◄$$$ THE MF-GLOBAL TOTAL STOLEN WAS PROBABLY CLOSER TO $105 BILLION, IF THE MOVEMENT OF MONEY IS ANY INDICATION. THAT IS THE FIGURE OF SUSPICIOUS MOVEMENT IMMEDIATELY LEADING TO THE DECLARED BANKRUPTCY. THE STORY IS FINALLY COMING OUT, BUT STILL NOT GIVEN EMPHASIS OR PROPER LIGHT. $$$
The Trustee to the MFGlobal case cannot be trusted.
Finally after two months more actual relevant data
has emerged. The original $600 million figure of
missing client funds was at one time doubled to
$1.2 billion. Last week the missing figure rose
again to $1.6 billion in a fresh look. The word
is that $700 million is trapped in
The Trustee has traced $105 billion in cash
movement in the days leading up to the bankruptcy.
Also, the MFG executive misled the public directly,
claiming it held $4 billion in cash and $500 million
in excess capital right before it went bust.
Like with the Madoff movie, the cited figures in
estimated theft are one or two orders of magnitude
below the reality. Tens of $billion in improper
cash movement were made in the days leading up to
the MFG filing. That bears repeating. The financial
press and the lapdog Congressional mouthpieces repeat
the $600 million figure like parrots. See the Bloomberg
article (CLICK HERE).
My contention is that more MFG cases will erupt
before long, showing the tangles of hypothecation
and illicit asset grabs to cover the vast inter-network
of collateralization and derivative coverage by
insolvent busted financial organizations. The
Brother John provided a great exposure interview of the lead attorney for the Commodity Customer Coalition. Warren Pollock interviewed James Koutoulas. They explored how JPMorgan, former FBI director Louis Freeh, and the USDept Justice are working against MFGlobal customers interests and the pursuit of justice through a transparent and truthful bankruptcy process. The role of Freeh stinks of corrupt influence, like a syndicate liaison inserted to ensure the coverup. The bank syndicate interests are again protected by the USGovt and its agencies working in concert. Notice the obstruction and official ploys. 1) Customers are prevented from discovery, under the rationalization that there is a meaningful investigation underway by the USDept Justice. 2) At the same time Louis Freeh has refused to hand over information that may indicate fraud and malfeasance on the part of major players including Jon Corzine, under the justification that he is protecting the interests of his client JPMorgan. 3) The USDept Justice has not prosecuted mortgage securitization fraud and financial fraud, which contributed directly to the 2008 financial collapse.
The documents and records that customers need through discovery are being kept top secret by the enemies of transparency in the form of the DOJ, JPM, and Louis Freeh. Lead counselor Koutoulas from the class action lawsuit estimates that customers could be made whole to 85% without bickering. See the Brother John article from which the above is directly taken (CLICK HERE). Bear in mind that the MFGlobal fraud is built upon calling the bankruptcy a financial firm failure (where investors are last in priority), when it is actually a financial brokerage firm failure (where investors are first in priority). At issue is investor account restoration. The Commodity Futures Trading Commission has ruled in a declaration of a financial firm failure, in direct opposition to the Trustee and Bankruptcy procedure playing out in a travesty. Look for injustice served in the class action lawsuit outcome.
◄$$$ THE POPULAR LIE STORY IS BEING PROMULGATED THAT THE MFGLOBAL FUNDS ARE INDEED GONE FOREVER. THEY WERE STOLEN, THE FUNDS KNOWN IN LOCATION, AND THE COVERUP WELL ALONG. AN ATTEMPT IS BEING MADE TO BURY THE THEFT WITH A MANHOLE COVER. THE STORY IS BEING TOLD, SO AS TO GIVE IT MORE CREDENCE, SO THE US-PRESS WILL RUN WITH IT. $$$
The Wall Street Journal would have people believe that the MFGlobal funds are missing, never to be recovered, blown away in the hurled winter wind. People familiar with the investigation are giving up on the hunt for the missing $1.2 billion in client funds, or $1.6 billion. They do have their orders, to make a good appearance, then leave the crime scene, certainly do not divulge what turns up in the hunt. Obstruct the records flow. Let the trails go cold. Look the other way when required. The gaggle deeply devoted to the coverup probe grinds on, which includes regulators, criminal and congressional investigators, and court-appointed trustees. Their findings so far suggest that a significant amount of the money could have vaporized as a result of chaotic trading at MFGlobal during the week before their October 31st bankruptcy filing, so goes the official word. Investment funds do vanish from basic bond loss, to be sure, but it was MFG positions that should have been ruined, not sideline customer accounts. The new spin sounds like a solid conclusion after an army of legal beagles and private eyes plied their trade. The story must be told and given credence. The venerable Wall Street Journal is doing its level best to paint the walls the proper color to cover the blood stains and grafiti.
The vulture funds have descended on the field of bodies with missing bones. They have confronted the aggrieved MFGlobal customers with offers between 72 and 85 cents per dollar for their claims. The Wall Street Journal certainly cast gloom on their prospects for any recovery and hopes of justice. A truly queer new angle must be dealt with, casting a strange light. The losing party clients must settle their income tax obligations for 2011. Until they can prove the funds are not recoverable, they bear the responsibility for their tax obligations on the full amount. If they call their investments worthless, then they will have a difficult time working against their own accounting. If they settle with the vulture funds, they can take the loss and move on, having capitulated to the despair and lost sense of justice. They can blame once more the seamy partnership between the USGovt and Wall Street. The manner in which the exchange, the regulators, the court, and the Obama Admin have dealt with the entire case is beyond despicable. This is the Madoff movie sequel, starring Jon Corzine, who will never see one day of prison before, during, or after any trial that will likely never occur. See the Wall Street Journal article (CLICK HERE).
◄$$$ ANOTHER ANGLE TO THE MFGLOBAL CASE POINTS
A FINGER AT MELLON BANK, GIVEN SPECIAL TREATMENT
BY THE C.F.T.C. IN ITS BACK DOOR FOR PILFERED FUNDS.
MANY ARE THE DOORWAYS THROUGH THE
The implication is that financial regulators have
gone rogue. Reports have come that the corrupt
Commodity Futures Trading Commission (CFTC) is permitting
Mellon Bank of
ZERO INTEREST RATE POLICY DAMAGE
◄$$$ USDOLLAR IS CAUGHT IN A COLLAPSE, DUE TO EXTERNAL FORCES FROM REVOLT ON TRADE, AND TO INTERNAL FORCES ON MONETARY INFLATION ALONGSIDE BROKEN CREDIT ENGINES. THE USFED SPREADS HERESY AND TOXIC POLICY AMONG FOREIGN CENTRAL BANKS TO ENSURE THE MONETARY DESTRUCTION. THE FIXED RATE BY THE USFED AT 0% UNTIL 2014 IS A CLEAR CALL FOR ALL CENTRAL BANKS TO STAY ACCOMMODATIVE. THE RESULT WILL BE LESS COMPETITION TO THE USTREASURY BONDS, BUT MORE IMPORTANTLY DESTRUCTION OF CAPITAL GLOBALLY. IN EFFECT, THE USFED DECLARED CURRENCY WAR LOUDLY AGAINST ALLIES AND GOLD ALIKE. THE HIDDEN DAMAGE IS TO WORKING CAPITAL. $$$
Doug Noland of the Prudent Bear provides a fine
preface for the latest FOMC Meeting directive to
maintain the 0% rate policy for another two years.
He wrote, "The Fed committed yet another
major error this week. The worsening European crisis
last year created a major artificial bid to perceived
safe haven Treasury (and related) securities. This
amounted to a major loosening of financial conditions
for the commanding sector of
USFed Chairman Bernanke publicly built the basis platform for more bond purchases. He pointed to high unemployment and low price inflation. He fails to realize that the continued sustained 0% official kills the economic apparatus and eliminates jobs en masse. He cannot measure price inflation, his error being at least 8% too low. The central banks are far out of control. The official statement from the FOMC read, "[The committee] recognizes the hardships imposed by high and persistent unemployment in an underperforming economy, and it is prepared to provide further monetary accommodation." One should wonder if they comprehend the effect of their monetary policy even remotely, in killing marginal businesses and thus its working capital (machinery, equipment, labs, buildings). The policy statement was widely regarded as an unambiguous aggressive statement. Most analysts anticipate the next large scale announced bond monetization program, apart from the secretive flurry of bond purchases.
Notice the identification of the Bond Bubble with a USTreasury core. With continued easy money policy and heavy bond purchases, done in secrecy in huge volume, the effects are profound. The principal effects are to create the USFed as a virtual banking system, offering low yields to banks for security, to pressure the cost structure in a constant manner, thus leading to capital destruction from retired equipment in marginal businesses, but with the supposed benefit of reduced price pressures from prevalent liquidation. The bank deleverage process only adds fire to the liquidation factor. The USFed is trying avoid a massive financial system liquidation, and therefore puts the tangible sector at great risk. The consequence of monetary policy is to push costs higher. The business shutdowns work to push end product price pressure lower, the worst possible business environment. Meanwhile the big banks operate as broken credit engines, suffering from the hangover overhang of home inventory and profound insolvency.
The nation is witnessing a powerful capital rot from the inside, during a global attack from the outside against the USDollar itself. The dependence is engrained and rooted for the Printing Press in USDollar output that is hardly wealth. The dependence is engrained and rooted for the Interest Rate Swap for keeping the bond yields down at the periphery, a basic leverage device. Trust among banks has been eroding for over four years, since the advent of the commercial paper fiascos in 2007. Inter-bank lending is a constant challenge. The contagion in the decaying rot process is sent across the oceans via Dollar Swap Facilities. The USFed has assured the continuation of the Competing Currency War melded with hyper monetary inflation. No major foreign central bank will dare to hike rates, experience a currency valuation rise, and endure the harmful impact on the export trade. The USFed has declared currency war on its allies, while sustaining its war against Gold, all the while maintaining a war against capital. See the Bloomberg article (CLICK HERE).
◄$$$ MAJOR CENTRAL BANKS ARE HELLBENT ON
MAINTAINING THE FLOOD IN HYPER MONETARY INFLATION.
THEY DO NOT COMPREHEND THE CAPITAL DESTRUCTION AND
ECONOMIC DAMAGE. YET THEY CONTINUE, KNOWING NOTHING
ELSE BUT THE
The USFed is stuck at 0%, cannot raise rates
or else shatter both the USGovt debt service and
the USEconomy. Worse, higher rates would implode
what remains standing in the
◄$$$ COMMITTED TO SUPPORT THE AILING BOND
MARKET, THE BANK OF
On February 9th, the Bank of
Edwards, the top strategist at Societe Generale,
is no slouch. He delivered an extremely critical
and surprisingly effective lambasting of the Anglo
central bank villains. He wrote, "There
is a healthy debate in the
◄$$$ COMMITTED TO HALT THE RISE IN THE JAPANESE
YEN, THE BANK OF
Some shock came as the Bank of Japan announced
on February 14th a big add-on to their Quantitative
Easing program that has extended over 20 years in
A quick view from the ground by a subscriber in
◄$$$ THE DEMISE OF THE USDOLLAR WILL BE WRITTEN
IN TERMS OF TRADE. THE PETRO-DOLLAR IS THE MAGNIFICENT
FOUNDATION FOR GLOBAL TRADE BASED IN THE USDOLLAR.
TIMES ARE CHANGING. NEW ACCORDS ARE BEING FORGED.
THE FOCUS IS ON THE PERSIAN GULF NATIONS, NOT ONLY
Words are difficult in describing the importance.
◄$$$ JIM SINCLAIR ANTICIPATES SOME SEVERE
REACTIONS TO BERNANKE'S DECLARATION OF THE OFFICIAL
PERMANENT 0% RATE. SINCLAIR BELIEVES THE MAINSTREAM
WILL NEXT ENTER THE GOLD TRADE AS AN INVESTMENT
TO STORE CASH IN A SAFE MANNER, AS HEDGE TO THE
CURRENCY DEBASEMENT, AND AS
The populist gold advocate Jim Sinclair believes the recent FOMC meeting where the USFed announced the Zero Interest Rate Policy (ZIRP) virtually almost forever marks a milestone. When every several months the ZIRP is assured farther into the future, it begins to look permanent, the result of policy failure, even mushrooming systemic failure. Their admission reeks of desperation and being lost in heretical textbooks. Here are Sinclair's thoughts. He believes the mainstream entities like insitutions and the public will next enter the gold market. The USFed turned the light on for QE to infinity. The announcement itself is a game changer. Expect a significant mindset change among investors, corporations, and companies with extra capital in the mainstream.
Gold will be found and accepted as a hedge against
current debasement policies. Until now the fringe
retail crowd and the international central bank
crowd have been the primary entities in Gold. Look
for new demand to come from mainstream investment,
mainstream pensions, mainstream life insurance companies,
mainstream health plans, which must employ a strategy
to preserve and grow buying power. This represents
huge potential new demand, a total new definition
as he calls it. Public companies with significant
resources, like tech companies, will soon start
to recognize that Gold is an important part of protecting
their cash position, which cannot earn a satisfactory
This new 2012 will become a year of action, not
necessarily toward a solution, but of action. Actions
like with the USFed swap line, the IMF loan distribution,
the major central banks ramping up QE bond purchases,
these are examples of action taken. A lulu action
would be a bank recapitalization initiative. Sinclair
believes the ZIRP Forever call by Bernanke marks
the beginning of a great rise in the Gold price
after almost a year of consolidation. He forecasts
Gold to trade this year at a price between $1700
to $2100 in a conservative range. When Gold next
breaks out to new highs, it will be powered by lost
confidence, primarily in currencies. The monetary
system continues to crumble this entire year with
focus on Southern Europe, but the
◄$$$ THE USFED TALKS OF NEGATIVE INTEREST RATES, TO EXTEND THE INSANITY FURTHER. REAL INTEREST RATES HAVE GONE CHRONICALLY NEGATIVE. GOLD LEASE RATES HAVE BEEN OCCASIONALLY NEGATIVE. MONEY MARKET RETURNS HAVE BEEN NEGATIVE AT TIMES. HOW BIZARRE! $$$
An unnamed USDept Treasury official commented that
the Federal Reserve Board will discuss negative
short-term interest rates at a May meeting. Some
actually wish it could be. Imagine if the current
ZIRP (zero interest rate policy) was pushed into
the negative zone. Money deposited at a bank would
require a payment to the bank to keep it safe. Stored
savings would be cheaper in a safety deposit box
or a mattress, even a hole behind the refrigerator.
So brokers would pay clients who borrowed funds.
What lunacy, but not without precedent.
The next natural chapter to the insanity is negative rates, but to halt the newfound role for the USFed in serving as the entire banking system. The real rate of interest has been negative for years. Take the long-term bond yield, like at 2% or 3%, and subtract the price inflation rate, like at 8% to 10%. The real interest rate is in the minus 5% to minus 7% range. Naturally, the short-term bond might be pressured to seek a negative return in a nominal sense. The gold lease rate has been negative often. To keep the broken monetary system on course, bullion banks pay investors to borrow their Gold in order to sustain the high gold volume for sale. Better yet, in order to avoid nasty gold shortage episodes. The return on some money market investments has been negative at times. Every Ponzi Scheme has an end chapter. With so many types of instruments flirting with negative returns, the financial markets might soon face some bizarre anomalies. See the Economix weblog article (CLICK HERE).
◄$$$ SHOSTAK FROM THE VON MISES INSTITUTE MAKES A FOOL OF NOBEL PRIZE WINNING HACK ECONOMIST PAUL KRUGMAN. THE ISSUE IS A DEPLETED POOL OF SAVINGS, THE RESULT OF ABSURDLY LOW INTEREST RATES. THE CONSUMER IS OVER-EXTENDED. THE PRODUCTION APPARATUS IS COMMITTED TO PRODUCE IN EXCESS. THE SAVERS CANNOT SAVE ADEQUATELY. THE BANKS LACK SAVING DEPOSITS FROM WHICH TO FORM LENDING CAPITAL. MOST COMMON KEYNESIAN APPLICATIONS ARE BACKWARDS AND DESTRUCTIVE AS APPLIED IN THE UNITED STATES. $$$
In his New York Times article of mid-January, the
Nobel laureate economist Paul Krugman shared his
lack of wisdom. He wrote, "If nothing else,
we have learned that the liquidity trap is neither
a figment of our imaginations nor something that
only happens in
The liquidity trap has been in full force for the last three years. If the USFed were to attempt to execute an Exit Strategy from the 0% corner, it would not attract sufficient savings since next to nothing is still almost nothing on returns. Higher rates would have the double barreled harmful effect of forcing up mortgage rates and consumer loan rates and commecial loan rates, while also running up the USGovt borrowing costs in signficant manner. The struggling USEconomy, mired in an unidentified recession, could not withstand the hike. Worse, the hidden chambers, where Interest Rate Swap contracts lurk, would experience a shock wave. The deleverage process in banks has a powerful effect. But the deleverage of IRSwaps would be catastrophic for both the big banks that put them to work and the economy where they are placed.
Frank Shostak on the Von Mises Institute disputes most of Krugman's vacant utterances. He argues that the heavy backfire on the ground level has been felt with the Liquidity Trap, in the form of a shrinking pool of real savings. As long as the rate of growth of the pool of real savings stays positive, the pool can continue to sustain productive and non-productive activities. However, when loose monetary and fiscal policies work their magical destruction, trouble erupts. The structure of production emerges that ties up much more consumer goods than the amount it releases. This excessive consumption relative to the production of consumer goods leads to a decline in the pool of real savings, at a time when the horribly low rates offered to savers depletes the bank deposits. A grand double whammy comes from the so-called consumer economy, long an object of Jackass ridicule. The result is weakened support for economic activities, resulting in the USEconomy falling into a slump. The banks lack capital and converted savings from which to lend. Without an expanding pool of real savings, any expansion of bank lending is going to lift bank nonperforming assets. The shrinking pool of real savings contradicts directly the commonly accepted fallacy that the loose monetary policy of the central bank can grow the economy. Then again, the USFed promotes heresy, and operates with vast blind spots. The near permanent 0% rate guarantees a gradually falling pool of real savings, despite the talk of stimulus. The USFed high priests have been wrong about every single pronouncement and assessment since 2006.
Shostak rebutts Krugman effectively, making a fool
of the prize winning quack charlatan. He wrote,
"Contrary to Krugman, we suggest that the
◄$$$ JOHN TAYLOR EXPECTS A POWERFUL LEHMAN EVENT IMMINENTLY. THE DAMAGE WILL DIRECTLY RESULT IN BANK SECTOR WRECKAGE AND DEEPER INSOLVENCY. WHAT FOLLOWS WOULD BE THE BANK SECTOR BEING VAPORIZED, THEN EXTREME MONETARY INFLATION DURING AN HISTORICAL RECESSION. $$$
John Taylor is an outstanding economist with one
foot in the system pond, but whose work tends to
put an accurate spotlight on that distorted system.
His Taylor Rule helps to explain the relationship
between the official FedFunds rate and the USEconomic
growth rate, as in control room dynamics. He commented
on the European situation that defies solution.
He wrote, "Major losses should apply not
only to sovereign borrowings but also to accounts
receivable for cars, electronics, and other consumer
goods. The market has not opened its eyes to the
impact this Greek unraveling will have. The EuroZone
will be mortally wounded and the world will suffer
a significant recession, maybe as deep as 2008.
European banks will lose much of their capital
base and many should be bankrupt, but just as in
the Lehman aftermath, the governments will try to
save the banks and the bank bondholders, solvent
or not. As the bank appetite for Eurozone sovereign
paper will be decimated, austerity will probably
follow shortly, followed by deflation and uncontrollable
money creation. The European recession should
be one for the record books." He spells
ugly. My belief is that he only covers half the
damage. The ripple effects will hit
Rob Kirby offers a perspective, always valuable.
His knowledge of bonds, derivatives, and banks is
superlative. He believes the
◄$$$ REPORTING ON THE GREEK AND
Attempting to report on the ongoing development
concerning the Greek Govt Bond aid packages, compromise
deals, and austerity plans is like reading a month-old
newspaper. What seems news today changes so radically
in a matter of a day or two, especially one week.
The news becomes so obsolete, so quickly, that the
wisdom of reporting specifics makes little sense
at times. Sometimes before lunchtime in the
◄$$$ A PLANNED GREEK GOVT DEBT DEFAULT EVENT
IS COMING. AN EXCLUSIVE BY THE SLOG. SENIOR US-BANKERS
HAVE BEEN GIVEN AN EXPLICIT TIMETABLE FOR THE
For an accurate depiction, think herding 100 cats
let loose off a truck in an open field. A solution
is required, since the current situation with solutions
and breakdowns and changes and rejections has proceeded
on course for two full years. The tragic truth
is that without exit from the Euro Monetary Union
(common Euro currency usage), Greece will continue
to sink into a deep dark hole while at the same
shed forfeit its prized assets to foreign bankers.
Greek as a nation desperately requires not a
bailout, but a debt restructure followed by a currency
devaluations. This reality is understood
by both the power centers and the people who run
Greek businesses and walk Greek streets. The harsh
reality is sinking in finally. The extension of
bailout negotiations, the tough butchery to the
economy from budget cuts, the ruin of domestic banks,
the risk of big asset seizure, these all seem pointless
to the public on a growing basis. So violence has
The Slog (aka Hat4UK Wordpress website) has reported
a blueprint for the Greek default. It is worthwhile
reading and seems highly accurate and credible.
The existence and need for a plan is of the utmost
urgency, absolutely required, since the demolition
will have to be as carefully planned and executed
as bringing down a 50-story hotel in
A written document giving firm dates and detailed actions for a planned Greek default has been in the possession of two top Wall Street bank currency trading bosses since the second week in January. The Slog has separate but corroborative sources affirming the existence of the document, and a conviction among senior bank staff that, at least at the time, the plan represented A TIMETABLE, NOT A CONTINGENCY. The plan gives a firm date of March 23rd for default to be announced after the close of business. Senior bankers on Wall Street have been given detailed documentation setting out a timetable to Greek default, including firm dates and technical orders about last use of the Euro as a currency there. The revelation arrived at Sloggers Roost last Monday, since when I have been trying to obtain corroboration. This arrived in the early hours of today (Thursday). One of the banks is Barclays Capital (Barcap) run by controversial figure Bob Diamond. The other must remain anonymous for the time being, in order to protect sources.
The document asserts that
IMF intervention in the
3) Persistent rumors surrounding Wolfgang Schauble's plans
4) Evidence previously assembled by The Slog concerning Americo-German coordination
5) A string of delaying tactics by senior EU and Troika officials since mid January.
End of the Slog quoted report. Some final comments
by the Jackass. The European Union commissars have
been busy lately in playing down the horrendous
outcome and shock wave effects from a Greek default,
as though they will promote the planned implosion.
They cite a catastrophic impact to be only 20% likelihood
at most. New Euro Central Bank head Mario Draghi
has been pumping money overtime into the banking
system in Europe, which is much larger than in the
◄$$$ MOODYS CUT EUROPEAN DEBT IN YET ANOTHER BROAD DECISION, A VALENTINE DAY SMACK. THEY KICKED OUT ANOTHER PILLAR IN A WEAK UNSTABLE STAGE THAT CANNOT STAND ON ITS OWN STRENGTH. NOTICE THE IGNORED USGOVT DEBT STATUS, STEADILY KEPT UNTOUCHABLE. $$$
Moodys Investors Service, in the latest of an endless
process, again cut the debt ratings of six European
The sovereign bond markets are driven not so much
by the legitimately assessed impaired debt status.
Instead bond markets are driven by Euro Central
Bank injections, the hyper monetary inflation
reaction that has become engrained and fixed. Yields
on most Southern European sovereign bonds continued
to edge lower as a result of the European Central
Bank on December 21st allotment of a record EUR
489 billion (=US$643 bn) in three-year loans to
banks. Yields on Italian 10-year bonds have
dropped more than 1 percentage point since ECB's
injection, while French 10-year yields have declined
20 basis points in that period, safely under the
6% mark. In
◄$$$ IN LOCKSTEP, STANDARD & POORS CUT ALMOST ALL MAJOR ITALIAN BANK DEBT RATINGS. FITCH CUT ITALIAN AND SPANISH GOVT RATINGS. THE PROCESS GOES ON AND CONDITIONS CONTINUE TO DETERIORATE. $$$
The credit ratings agency Standard & Poors
downgraded almost all major Italian banks. The review
covered 34 of the 37 banks monitored by the agency.
◄$$$ AN UNUSUAL DEVELOPMENT HAS OCCURRED, AS THE USGOVT HAS DECIDED NOT TO MAKE A REGULAR I.M.F. PAYMENT INTO THEIR GENERAL FUND. IT HAS BEEN THE MAIN TILL FOR EUROPEAN BAILOUTS. THE SIGNAL IS CLEAR FOR SOME UNUSUAL EVENTS TO FOLLOW. REGARD THE JUDGMENT AS A PUNT. $$$
Lael Brainard is the USDept Treasury undersecretary
for international affairs. He reiterated that the
USGovt will not give the Intl Monetary Fund any
additional funds devoted for European bailout usage,
designed to solve the European debt crisis. The
official statement was read as prepared remarks
to the US Senate Banking Committee. It merely pointed
out the European awareness of the absent funding,
and gave a vacant peptalk to their leaders toward
solving the crisis. It cited a risk of a significant
adverse impact on the
◄$$$ THE ENTIRE DERIVATIVE BUSINESS IS OF
DEEP CORRUPTION, FROM THE START. THE
An associate colleague Greg from
◄$$$ THE HEALTHY CORE EUROPEAN NATIONS HAVE
BEGUN TO SNUB
On February 2nd, according to Bloomberg, "Finance
ministers from the four European area countries
with AAA ratings,
As preface, consider several data items. The Greek Govt cuts amount to 10% of the budget. If the USGovt ordered such cuts, the impact would be absolutely enormous. The Greek GDP has declined by 10.6% in the last year. Tax receipts are down by 7% as 60,000 small business have failed. The Greek Govt debt/GDP ratio is 160% versus a nonsensical 120% target. The bond haircut proposed is 70% when 100% is the more appropriate figure.
Prime Minister Papademos has appealed to the Greek
sense of responsibility, as the unelected leader
turns desperate to avoid chaos, riots, and destruction.
His call to sacrifice seems a ploy to aid the bankers
further. He cited small sacrifices in order to avoid
a total national loss. The March 20th deadline
for $19 billion payment looms near. The agreement
on funding and budgets seems like an impossible
task. Look for any Parliament accord on a Greek
budget to blow up quickly and be revisited. A 22%
minimum wage cut seems enough to ignite more street
riots. The spending cuts equal 7% of Gross Domestic
Product over three years. Great sacrifice and great
losses are the only assured commodities in
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch.