CRISIS COVERAGE REPORT
BAILOUTS, MERGERS, CORRUPTION
EXTENDED BREAKDOWN ANALYSIS


* Critical Tidbits
* Pattern of Major Disruptive Events
* Stock Market Plunge & Possible Heist
* Oil Volcano & Ecosystem Disaster
* Goldman Sachs Under Fire
* USTreasury Turmoil
* USFed Monetization Unmasked



HAT TRICK LETTER
Issue #74
Jim Willie CB, 
“the Golden Jackass”
8 May 2010

"A government big enough to give you everything you want is a government big enough to take from you everything you have." -- Thomas Jefferson

"At its birth, America embodied the highest hopes of mankind, but is now a tragic caricature of those great ideals. As it enters the 21st century, America finds itself bankrupt morally as well as financially. Its ideals stood the test of time, but America did not." -- Darryl Robert Schoon

EDITOR NOTE: MICRO-CHIP STORY ERROR

In the May Crisis Coverage Report to the Hat Trick Letter, my description was that the Congressional Bill HR3200 has provisions to require human RFID chip implants for medical tracking. However, I stand corrected. The final Obama Admin Health Care Bill was HR3962, whose passage came after the original Bill submitted underwent alterations by three House Committees in the summer of 2009. The final version has no specific requirements of human RFID chip implants. Thanks to JoeA of Endicott New York for the correction, an important one. One should keep in mind that if the original drafted legislation contained RFID implant intentions, then the future path is extremely likely to head in that direction. The nitwits serving in the USCongress will probably not be alert enough to notice when the implant update is placed in a new Bill, like a vapid Jobs Bill or yet another War Appropriation Bill or a Social Security Bill to delay and reduce benefits.

In my view, Collectivist Democrats in the Executive are no better than the Fascist Republicans who exited in 2008. We have the Redcoats (fascists) battling with the Bluecoats (marxists) currently. What they have in common is the overlord class of narcotic barons melded with the defense contractors and banksters, who together control the media networks. It has been Game Over for well over a decade. Here is yet another indication of trend direction. The Democratic leadership in Congress has sparked alarm with a call for national ID cards. Democratic leaders have proposed requiring every worker in the nation to carry a national identification card with biometric information, such as a fingerprint, within the next six years, according to a draft of the measure. See The Hill article (CLICK HERE).

CRITICAL TIDBITS

◄$$$ MYSTERIOUS EVENTS HAVE OCCURRED RECENTLY, WITH POWERFUL IMPACT ON POLICY. SUSPICIONS GROW FOR A GROWING LIST, BUT ARE DIFFICULT TO PROVE. $$$

After a deadly coal mine explosion in West Virginia, the USGovt has announced its plans to impose greater control over the mining industry in general. Could they have plans to exert control over base metals and precious metals? Would supply be steered with more emphasis to military contractors? The USGovt has long been at odds with off-shore oil drilling. After the extreme disaster in progress with the oil rig explosion and massive leak off the Louisiana coast, the USGovt has announced a temporary ban on off-shore drilling. Big Oil firms enjoy the restrictions to limit production, since it reduces supply and keeps price high. They had more than the ear of President Bush II for most of the previous decade, if not outright control.

More events can be pointed to, and questions raised. Last year, the Japanese Govt ordered the USMilitary to shut down the giant Okinawa base, to exit, to vacate, at least one of the multiple bases. The directive has caused controversy and strain. Some months passed, and then Toyota suffered a major supply chain fiasco from its US manufacturing plants. Then another big one. The Toyota brand stands as one of the premier in all of Japan, now wounded. The Chinese Govt resisted the USGovt usage of Google in eavesdropping & espionage, although they did not say so specifically. The Chinese appear to have infiltrated Google to steal system software and place workers in key posts. Google resisted and exited the nation. Charges have swirled from one side to the other. Not much actual news is reported.

The global forces that resist the US-UK Axis of Fascism are real, powerful, and organized, and their methods will not be easily detected. The arsenal of the US-UK is itself powerful and formidable, with great reach. The Anglo bankers and corporate chieftains, with the firm reliable aid of the USMilitary, US security agencies, and global banker organizations like the Intl Monetary Fund and World Bank, have exerted great pressures for over two decades, inflicted much harm on allied nations and emerging economies, with scores of high level complaints, mostly unaddressed. Powerful opposition has grown to offset the Anglo array of non-standard weapons. They are working to unseat the USDollar and USGovt and USMilitary. They might be putting extraordinary pressure to prosecute Goldman Sachs so as to discredit them, and thereby dislodge a control center. One must wonder who runs the prosecutions, both from civil lawsuits and felony charge investigations. Like who made the final directive order to file the charges. Could the GSax official attacks be waged so that foreign creditors continue to purchase USTreasurys? Or perhaps so that foreign creditors do not begin high volume USTBond sales? Methinks yes.

Usually more is happening than ever meets the eye, but one can lose a grip in paranoia. It is useful at times to cast a suspicious view at events, especially big events with great significance. Examine potential motives and the impact. A Jackass motto has long been to expect no billion$ accidents, as the majority are planned events to exploit for either profit or power. Thanks to PatW in the Pacific Northwest for his contributions.

◄$$$ CHINA SHOWS INCREDIBLE MOXEY & COURAGE TO REQUIRE ALL ENCRYPTION SOFTWARE TO BE OPEN SOURCED. THE RESULT WOULD BE AN OPEN PROCESS FOR SUPPLIERS TO PROVE EFFECTIVENESS, AND LIKELY APPLY PRESSURE TOWARD AN INTERNATIONAL MOVEMENT OF LIKE KIND. THE CHINESE WOULD BE HATED FOR THIS DIRECTIVE BY THE POWERS THAT CONTROL THE U.S. AND U.K. AS WELL AS WESTERN EUROPE. TREMENDOUS ABUSE FOR EAVESDROPPING BY U.S. VENDORS IS THE HIDDEN TOPIC OF SCRUTINY. $$$

The Chinese Govt rules came into force at the beginning of May, rules that require security vendors to disclose encryption information. The regulations mean that suppliers of six categories of products, including smart cards, firewall, and routers, will need to submit trade secrets to a government panel in order to receive a license to sell software products inside China. So far the strongest response has come from European Union officials, who have described the move as both protectionist and of high risk commercially. At issue is the unwanted disclosure of trade secrets and expertise from the government panel to local firms.

"[Sharing encryption information is] something companies cannot and will not do," said president of the European Union Chamber of Commerce Jorg Wuttke. The contrary position is much the same with US commerce officials. Details of the requirements are unclear. At issue is whether general encryption techniques must be disclosed, such as Advanced Encryption Standards, which are publicly documented, or whether a much greater level of disclosure is required, like of actual cryptographic keys used to encrypt and decrypt. Some past episodes of conflict have centered upon malware samples demanded by Chinese officials, before they allowed anti-virus vendors to sell sophisticated software technology into their country. The virus detection area is precisely where devious games are employed, often breaching security ethics. See the UK Register article (CLICK HERE).

A global consulting contact shared his opinion on the matter. He wrote, "China shows its courage by doing the Right Thing. Chinese government rules are due to obligate security vendors to disclose encryption information. The USA/EU will absolutely hate China for this one, but it is certainly a step in the right direction! If a vendor purports that its crypto-product is safe and secure, then they ought to prove it. By that is meant open source it and allow its implementation to be peer reviewed! That would be the effective result if China puts some real teeth behind this regulation. While the mandatory disclosure of cryptographic keys would have a really negative impact on industry, the disclosure of implementation source code would finally force the myriad of bad vendors in this space to raise the bar and actually design good software that will stand the test of open scrutiny or die. The encryption products space is littered with really bad programmers who implement a lot of stupid code. The big name software developers are not exempt from this list either. Time and time again, IT guys at our firm find that most developers do not even understand the basics, like how to properly seed a random number generator."

My personal background in the computer industry for 13 years enabled a better than average comprehension, although mine was not an engineering expertise. When in graduate school, an entire summer was spent in studying simulation, and conducting some research on certain advanced statistical techniques. The random number generator was either rubbish or great, depending upon whether the seed was a sufficiently large prime number and had other important traits. Some seeds tested were good, some were ridiculously bad. The impact on the legitimacy of an entire simulation study was huge and leveraged upon the generator itself. Few researchers bother to check the generator before moving quickly to the results of the simulation. Much more scrutiny to the root generator should be standard. Tests of generator uniformity were simple to conduct. As a probability pro, my love came from studying the methods to produce streams from the bivariate normal, Poisson, negative binomial, the multi-server exponential MMx models, and more.

Huge implications on the Chinese open source encryption would be like a great onrush of fresh air, quite welcome to the industry. It would be great to see Intel exposed as having built in requisite back doors on all Pentium chips for the CIA to monitor PC activity on internet commerce. All pre-Pentium chips like Motorola x86 did not have such monitor features. It would be great to see Microsoft exposed for having built in requisite reverse monitors on all its McAfee anti-virus software to permit reverse downloads during disk scans. The same goes for AVG and other free anti-virus software. The devious nature of technology nowadays is alarming. What has occurred with telephone technology is duplicated with computer technology.

◄$$$ A CHINESE EMBASSY INCIDENT, WITH A DIPLOMAT ALLEGEDLY BEATEN BY THE POLICE IN HOUSTON TEXAS. FOREIGN DIPLOMATS ARE TREATED TO WHAT TYPICAL AMERICANS CONTEND WITH ON A REGULAR BASIS. $$$

The Chinese Govt reported in mid-April that a Chinese diplomat in the United States was beaten and injured by Houston police. They urged an investigation to prevent further violations of  diplomatic norms. The USDept State took the matter seriously, promising that findings of the investigation would be shared with Chinese officials promptly. The statement from China's Foreign Ministry claimed that police harassed and beat a deputy consul general while he was driving to the Chinese Consulate in Houston. According to a CBS News report, Houston police last Saturday tried to stop a car which was missing a license plate. When the car failed to stop, they pursued it into a garage without realizing the garage belonged to the Chinese Consulate. Police handcuffed and arrested the driver, and in the process injured him, not realizing their were on Chinese soil. Under international practice, the premises of foreign embassies and consulates are outside the jurisdiction of local law enforcement, where diplomats have legal immunity. See the Globe & Mail article (CLICK HERE).

PATTERN OF MAJOR DISRUPTIVE EVENTS

◄$$$ THE CONFLUENCE OF MAJOR DISRUPTIVE FACTORS AND POWERFUL EVENTS HAS BECOME A STORY NOT TOLD. THE LIST SEEMS TO GROW EVERY FEW WEEKS, WITH A NEW EVENT OF GLOBAL SIGNIFICANT AND THREAT POTENTIAL. THE GLOBAL FINANCIAL STRUCTURE IS UNDER RISING STRAIN, TO THE POINT OF POTENTIAL BREAKDOWN. $$$

1)      Zero Interest Rate Policy & Quantitative Easing (*)

2)      TARP Fund disbursement and lack of disclosure (*)

3)      US Federal Reserve audit initiatives and disclosure

4)      Greek Govt debt crisis and spread across Southern Europe

5)      Goldman Sachs & JPMorgan investigations and prosecutions

6)      Gulf of Mexico oil volcano explosion and marine ecosystem damage

7)      Wall Street flash trading, computer trading, and market chaos

8)      CFTC hearings and JPMorgan gold & silver market rigging

9)      Commercial Mortgage Backed Security loss impact as second shoe (X)

The list is made with two introductory events marked with asterisks (*) to denote that they are not of recent news vintage. They are over a year old. The rest are daily news items. The last item is included in order to preview the next shock event, marked with (X). It is next to strike, as powerfully as the subprime mortgages did in the summer 2007. That was the origin of this so-called credit crisis which has morphed into a global bond debacle, precisely as the Jackass forecasted long ago. It was called an absolute bond crisis over two years ago here.

STOCK MARKET PLUNGE & POSSIBLE HEIST

◄$$$ THE TUMULTUOUS PERILOUS FRIGHTENING PLUNGE ON THURSDAY MAY 6TH SERVES AS A REMINDER THAT THE STOCK MARKET IS RIGGED, PROPPED BY INTERVENTION MEANS, AND DOMINATED BY FLASH TRADING. THE EVENT COULD EASILY BE REPEATED OFTEN. THE POSSIBILITY OF MAJOR FRAUD HEIST IN ATTACKS OF STOP ORDERS IS VERY REAL. $$$

Think of a professional football squad nearly killing an amateur group of weekend warrior players on a football field, easily winning but inflicting great bodily injury. Many reasons have been offered for the huge 1000-point decline and sudden recovery on Thursday May 6th in the US stock market. Reports circulated, surely nonsense, that someone at a Citigroup trading desk entered 'Billion' instead of 'Million' on an order. They call it the Fat Finger. Rubbish! Then a more credible report circulated on the internet, surely not on the US press networks, that at least one hedge funds was liquidated due to European redemption requests, which spun out of control to trigger a series of program trades in milliseconds. Maybe, but doubtful! The reality is that the US financial markets are broken. They have been broken for a couple years. They will not recover until significant reform comes to eliminate flash trading and insider front running trading like what Goldman Sachs specializes in. More proprietary advanced trading programs lurk and rip daily damage than USFed liquidity facilities, each equally destructive to financial market systems. Read the list as High Frequency Trading, Flash orders, Predatory Algorithms, Sigma X, Sonar, Market Topology, Liquidity Providers, Supplementary Liquidity Providers, and many other variations.

The inescapable truth is that the stock market has been trading chronically with thin volume and high participation by computer systems, and has been heavily dependent on the Working Group for Financial Markets (aka Plunge Protection Team) for support and late day rescues. The stock market also trades under the phony premises of an USEconomy recovery underway, and stability returned to the US financial sector. Both are patently false, as insolvency is rampant like a cancer. Claims of higher volume being a signal of quickly restored health or stability are total deceptions. The volume during bounces and recoveries is dominated by short covering, exits by the public (retail investors), and maybe more pension funds than will be admitted. For a good summary, including the list of flash trading names, see the Zero Hedge article (CLICK HERE). It includes a reference to his warning last month of extreme risk of market shock waves due to sudden loss of liquidity. The official props have turned unreliable.

The NYSE tells of 55% to 60% of volume emanating from programmed trades. My sources tell of 75% to 80% and probably higher, a grand circle jerk festivity. The Wall Street parasites have fed off each other, killed a few players, gobbled up others in mergers, the results of which have left three firms standing. Goldman Sachs, JPMorgan, and Citigroup remain, although Citi is a shell of its former self. The easy conclusion is that an earthquake just occurred. Financial markets should heed the warning for a series of breakdown events. This is warning. It will be ignored by the multitudes, denied by the analysts, and exploited by the professionals. The investigations might actually make these accidents more vulnerable to occurrence. Wall Street firms might be more motivated to kickstart their damaging programs as exercises in vengeance to those investigations.

The potential for major fraud having been committed last week is very high. The market insiders have access to view stop orders, put in place as protection for stock share heavy declines. Those with limit conditions set in the stop orders can be gunned and hit, in pursuit of liquidity. Those without limit conditions set in can result in staggering losses in sudden plunges, forced execution at absurdly low prices, and quick recovery, only to suffer a major loss in the midst of the rapid movement. Wall Street firms have software to read the orders sitting like ducks on a pond. The programs might have features to coordinate with one or two other brokerage houses the targeting of the stop orders. They take the entire stock market down using SPX or Spyder basket sell orders, whack the stop orders, fill them as low as possible, and the big brokerage houses suddenly snatch a nice hefty profit on a quick lift in stock share prices, being the buyers against the unfortunate stopped out seller victims. The press networks do NOT discuss such potential, but savvy traders with experience surely do. Furthermore, even those market players savvy enough to have option puts in place that would capitalize on severe downturns in a stock or a composite stock index, even they could not exit their profitable positions. The illiquid condition offered huge bid-ask spreads, and even though 'In the Money' on the options, the process was skewed so as not to offer a good price to cash out of the option contract. The extension of the fraud to the bond market is immediate, for corporate bonds, junk bonds, with the catch-all basin being the USTreasurys. Recall that the heavy schedule of USTreasury auctions in May require strong demand. Discontent, discouragement, and dismay with stocks tend to feed the bond bull, in particular the USTreasury Bond bubble, precisely as warned by the Jackass last month. The bubble needs buyers.

◄$$$ THE BIG STOCK MARKET NOSEDIVE WAS PROBABLY PART OF A COMPLEX OPERATION TO SNATCH & GRAB $250 BILLION. THE POSSIBLE MOTIVE WAS TO OBSTRUCT THE U.S. SENATE BILL TO AUDIT THE USFED. A SLUSH FUND MIGHT HAVE BEEN CREATED FOR FUTURE BLOCKAGE. $$$

Rumors also persist and circulate about how the only party large enough to conduct the stock market temporary collapse, recovery, and ensuing raid was the US Federal Reserve itself, of course with supporting cast assistance from key Wall Street firms loyal to the syndicate. Direct attention to JPMorgan, Goldman Sachs, and Citigroup, the biggest snakes in the pit. Rumors indicate that a $200 to $300 billion Snatch & Grab heist took place within the stock market during the swoon and recovery, with outrageous profit quickly obtained. The operation was managed by computer programs, necessarily in coordination. Some point to the USFed Snatch & Grab sting as being motivated to fund the Greek Govt bond situation, or more likely the European Union sovereign debt situation, and provide it immediate aid. That is possible in my view, but only for quick aid to key private banks with Greek and EU sovereign bond exposure, all within the brethren of banksters. My more thoughtful view is that Wall Street conducted their own private Snatch & Grab operation, to fleece the public of around $250 billion, all planned with coordinated efforts, exploiting the worrisome atmosphere, with two powerful motives. First, basic greed with a well planned profitable heist. Second, to discourage the US Senate from following through with a USFed audit. A full independent audit would reveal extortion, insider trading, counterfeit operations, bond fraud, and money laundering from narcotics channels. In other words, it would reveal the center of the financial crime syndicate. Furthermore, the Snatch & Grab would provide a slush fund from which to pay Senators directly, for future blockage of the USFed audit bill. The level of danger and threatened collapse has turned real. USFed Governors actually threatened that the system could suffer major breakdown, if not collapse, if the audit is forced. We saw it!!! If you do not think like a criminal about the syndicate, you will rarely comprehend their actions.

Consistent with my view of extreme duplicity, deception, and sabotage, consider this. It comes from a message board covering Fannie Mae. The person lays blame for the frightening stock market ride on the US Federal Reserve and its Wall Street supporters, the Plunge Protection Team players. The timing is directly opposite an important Senate decision and vote for compulsory audits of the USFed. The hypothesis has huge credibility. The person wrote, "You people who think that the PPT saved the US markets yesterday from catastrophe are mistaken. In all likelihood, they were the cause of the selling before stepping in when there were no bids and the Dow was down 1000 points. The reason the Fed/PPT torpedoed the market in Pearl Harbor fashion was the scheduled vote yesterday on the historic Fed audit bill. While the Fed sent four governors to Capitol Hill to argue that passage of the Fed audit amendment would undermine the independence of the Fed and threaten market stability, the Fed behind the scene orchestrated the selling while floating this bogus story to the mainstream press that the massive decline was due to human error. Bullcrap. The only player with a bankroll big enough to push the markets around yesterday like they were was the Fed. Sure enough, the Fed governors were right and the crash happened, coinciding with the Senate vote, which scared the Senators out of their vote. According to a Reuters article that I posted yesterday on this board, the author of the Fed audit amendment, Bernie Sanders from Vermont, backed down and agreed to change the language of the bill to limit its scope to just one audit of the Fed's emergency lending since 2007. That audit would not go further into probing whether the Fed has been rigging the equity markets since 2007 or earlier with index futures buying and buying of individual stocks. So, the whole thing is a whitewash and the public never gets to find out all the dirty deeds of the Fed. When you connect all the dots, this is the real story what happened yesterday. It was not because of Greece or any fat fingered trader. The supposed guardians of the system sabotaged the system to protect their interests and asses." Yes, certainly, very plausible, extremely likely. If the USFed was protecting itself, with Wall Street firm expert help, they also opened the door for some magnificent fraud opportunities at the same time.

OIL VOLCANO & ECOSYSTEM DISASTER

◄$$$ OIL RIG OFF THE LOUISIANA COAST APPEARS TO BE LOCATED IN A EXPLOSIVES DUMPING GROUND. REPORTS STREAM IN ABOUT HIGHLY QUESTIONABLE ACTIVITY DAYS BEFORE THE EXPLOSION. INSIDE WORD TESTIFIES TO LIKELY SABOTAGE, PERHAPS BY HALLIBURTON, OR AT A MINUMUM NEGLIGENCE. $$$

The Hat Trick Letter will cover numerous angles of this historical disaster, a likely act of sabotage, but with less than direct accusatory language. British Petroleum is the principal developer of the Macondo Prospect oil field. It leased the drilling rig from Transocean Ltd. As preface, the TransOcean oil rig (called Deepwater Horizon) was located in a major dumping area used for explosives. The event has been called an accident very prematurely, in which eleven people were killed. My considered opinion was of gross negligence and possible sabotage with motive. Check the National Oceanographic & Atmospheric Admin map off the coast of Louisiana, where the oil rig was located. The NOAA map marks an explosives dump site. So a gigantic oil rig and drilling project was positioned atop old unstable explosives. Brilliant! See the NOAA map and use the zoom (CLICK HERE).

Halliburton might be implicated for sabotage or at least extreme negligence. Often called the War Machine, Halliburton has a massive corporate presence in the Gulf region. They have a long history of profiting from both war and disaster. One must wonder if they cause some disasters in order to exploit their remedy. Syndicates thrive on cash flow, which they can skim. The Huffington Post cast a pointed finger when they wrote, "Giant oil services provider Halliburton may be a primary suspect in the investigation into the oil rig explosion that has devastated the Gulf Coast, the Wall Street Journal reports. Though the investigation into the explosion that sank the Deepwater Horizon site is still in its early stages, drilling experts agree that blame probably lies with flaws in the cementing process. That is, plugging holes in the pipeline seal by pumping cement into it from the rig. Halliburton was in charge of cementing for Deepwater Horizon." The Los Angeles Times has reported that members of the USCongress have called upon Halliburton to provide all documents relating to the possibility or risk of an explosion or blowout at the Deepwater Horizon rig and the status, adequacy, quality, monitoring, and inspection of the cementing work by May 7th. Scattered reports, confirmed by Halliburton's own press release, cite its employees had worked on the final cementing approximately 20 hours prior to the incident. The buzz out of the gate was nonsense concerning the North Korean Navy torpedoing the oil rig. Maybe Halliburton disseminated that story as pure diversion. They are familiar with chapters of military disinformation techniques. See the Huffington Post article (CLICK HERE).

An oil industry professional from Houston is a good friend of a HTLetter subscriber. He shared some observations. As preface, he believes it will be a long time before the damage is repaired, while the oil spills rapidly into the ocean. It should take much longer than expected, much longer than the public is being told. Here is what he shared, with an admission of being nervous to divulge the information. He wrote, with the subscriber inquiring back at the source with bracketed comments, "(1) The supply ship that arrived before the explosions was manned by all new people, as nobody on board was from the usual crew. [I asked him to find out what the dress and appearance of these men were, like short hair cuts, military bearing. He will get back to me if he can.] (2) There were 14 explosions on the rig. [That sounds like cutting charges to me.] (3) The shut-off valve below the surface on the sea floor is controlled by hydraulic control. The panel was destroyed in the explosions. (4) He told me that the rig is also sitting on the valve assembly, to complicate the damage as well."

◄$$$ THE POTENTIAL FOR RUIN OF LARGE PORTIONS OF MARINE LIFE IN THE GULF OF MEXICO IS ACUTE, THE WORST ECOLOGICAL DISASTER IN WORLD HISTORY PERHAPS. OVER A YEAR WILL BE NEEDED TO BRING THE LEAK UNDER FULL CONTROL. $$$

To call the oil spill an ecological disaster is actually an under-statement. Hundreds of thousands of barrels are being spewed into the marine ecosystem each day. Estimates widely range from 200 thousand to 1.1 million barrels of crude oil spewing into the Gulf from the extremely broad rupture point on a daily basis. Time will permit the heavy leakage of the spill to continue for weeks. Experts in the oil industry testify to how several months might pass before the leak is contained or even approached. The 5000 foot depth of the seabed where the leak is gushing crude oil makes repair extremely difficult, thus the extreme challenge to pursue solutions. Late last week, preparations were being made to place a huge metal containment box over the leak site as containment. That is like putting a big bandage and shoestring tourniquet over a gaping hemorrhage wound, but it is a start. The containment box weighs 100 tons, is four stories high, but being metal, might weaken from high underwater pressures. Its ability to operate and withstand the pressure is unknown. Optimistic estimates call for recovery of 85% of the oil spewing from what is now being called the Oil Volcano, from usage of the containment apparatus.

The potential for crude oil to pollute vast volumes of ocean water, and later ocean shore ecosystems, is enormous and acute imminently. At this point, the ecological disaster is assured to marine life, later to shorelines. Gulf of Mexico currents are in position to spread the hundreds of thousands of barrels of oil throughout the entire Gulf coast. Currents will spread the damage eastward to Florida and into the Gulf Stream in a northeastly tangent. Of the Lower 48 states, Florida has the longest coastline at 2276 miles. Its Gulfside exposure is obvious, but Atlantic side exposure is more than minimal especially in the south Gold Coast from Palm Beach to Miami. Some analysts believe that only a nuclear bomb could truly seal the rockbed, which contains cracks and fissures galore perhaps almost a mile in diameter The Lousiana coastline dips south in the upper left map corner of the map below. The movement is northward for the vast oil slick right now, the colors indicating single daily movement. While Hurricane Katrina inflicted great property damage to the Gulf coast, the BP oil slick will inflict pure ecological damage that will not easily be reversed for well over a decade.

◄$$$ BRITISH PETROLEUM HAS MANY ENEMIES EARNED IN THE PAST TWO DECADES. THE FIRM COULD BE TARGETS FOR SABOTAGE. GOLDMAN SACHS ONCE AGAIN MIGHT BE POSITIONED TO PROFIT WITH WELL PLACED BETS, AS THOUGH THEY KNEW THE DESTRUCTION WAS TO OCCUR. $$$

Being the lease owner, British Petroleum is squarely in this story. They are the oil firm that has contracted the oil rig operation. President Obama has publicly stated that BP will pay for all damages. That sounds good (grandstand maneuver) but the price tab might be over $100 billion, maybe hundreds of billion$, even $1 trillion, depending on whether marine life far offshore has any economic value, or has patrons to lodge their claim. A federal statute law declares that $75 million is the legal limit on liability. President Obama and his senior White House staff, as well as Interior Secretary Ken Salazar, are working with the CEO Tony Hayward of British Petroleum on legislation that would raise the cap on liability for damage claims from those affected by the oil disaster from $75 million to $10 billion. BP made many enemies inside Russia during the Yeltsin Era. The USGovt attempted to install a Russian puppet with Yeltsin, a maneuver that failed. Russian leader Vladmir Putin has been targeting BP and Royal Dutch Shell for years. Putin has systematically denied, reneged, and canceled BP contracts. He despises BP and has strived to wreck them. He has motive, and at least does not mind seeing BP deeply wounded. The BP participation in the summer 2004 initiative to drive down the crude oil and natural gas prices by the Goldman Sachs Commodity Index fund is well known. That too earned enemies in the Russian and Saudi lands. Motive is prevalent.

By the way, rumors persist and swirl, using produced emails from GSax VP Fabrice Tourre, that Goldman Sachs had numerous short positions in place immediately before the explosion and disaster struck. The shorts targeted key corporations with direct potential losses at stake. The Securities & Exchange Commission is supposedly investigating. In my view, the SEC needs an entire staff just to investigate GSax and JPMorgan insider trading, as well as sabotage directed trading.

GOLDMAN SACHS UNDER FIRE

◄$$$ THE GOLDMAN SACHS SAGA CONTINUES. THEY STRUGGLE TO MAINTAIN THE CATBIRD SEAT. MY PERSONAL BELIEF IS THAT POWERFUL FOREIGN FORCES HAVE DEMANDED THAT THE USGOVT AND ITS LEGAL AUTHORITIES DEPOSE THE SYNDICATE KING, OR ELSE FACE A USTREASURY BOYCOTT. GSAX IS ON THE EXTREME DEFENSIVE. PANDORA'S BOX IS WIDE OPEN. CLASS ACTION LAWSUITS AND STATE PROSECUTION ARE NEXT. THE GSAX BOSSES MIGHT WANT TO CONSIDER THE IMPACT OF R.I.C.O LAWS. $$$

A criminal probe has begun by the USDept Justice against Goldman Sachs to investigate criminal fraud on a historical scale that has done incalculable damage to the USEconomy, its financial structure, and the wealth of its citizens. The Attorney General office will continue the work of the SEC in the mortgage bond fraud civil lawsuit case, in order to evaluate pursuit of criminal charges. Some claim politicians are sharpening swords before the November Congressional elections. Perhaps, but justice is justice, and it is overdue. See the Zero Hedge article (CLICK HERE). Not left out, Germany is reviewing legal action against Goldman Sachs. Europeans are simmering angry over the Wall Street contributions to the sovereign bond breakdown. Germany launched fraud charges tied to Collateralized Debt Obligations and the IKB ruin, which triggered the German banking system distress in 2008. Legal action is considered. See the Bloomberg article (CLICK HERE). Word came from a bank source in Germany. He said, "On a side note you might be interested to learn that Goldman Sachs might be declared a criminal organization. If that happens, a 90% likelihood in my opinion, then there will be Interpol arrest warrants issued for all GS executives globally. The bankers in London already had their passports lifted." WOW!!! That aint in the news!

Goldman Sachs does not profit from brilliance, but rather corruption protected by the USGovt. GSax front runs market trading, observes illegally the trading orders, and exploits the knowledge routinely. While the SEC is busy investigating Goldman Sachs, it might want to look into another Goldman fraud specialty, computerized front running using high frequency trading programs. Wall Street commentator Max Keiser attacks Goldman Sachs with specifics. He claims to have invented one of the most widely used programs for market rigging, designed originally to remove the manipulation from markets. The computer program was intended to remove the conflict of interest that exists when brokers who match buyers with sellers are also selling from their own accounts. But the program fell into the wrong hands and became the prototype for automated trading programs that actually facilitate front running. It is called High Frequency Trading or Black Box trading, using ultra high speed computers governed by complex algorithms that skim profits from constant rapid glimpses of order transactions before they are executed. See the Web of Debt article (CLICK HERE).


The first victim is trust. Once that falls, ruin comes to the franchise business. If unlucky, criminal prosecution results. Last week AIG fired GSax as mortgage asset counselor, just the beginning. On the difficult Friday April 16th, when the GS stock fell over 12%, the other victim was their bond insurance contract. Its cost to insure Goldman's bonded debt also rose, the Credit Default Swaps widened 35 basis points to 165 basis points, or $165k per year for five years to insure $10 million in debt, according to Markit Intraday. One must wonder if RICO law application comes eventually. The Racketeer Influenced & Corrupt Organizations (RICO) Act calls for seizure of assets purchased and involved in criminal groups. The "Doing God's Work" comment was a powerful call to arms to kill GSax globally in my view. This spring, Wall Street firms were banned from participating in EU Govt bond issuance sales. The ban cost Wall Street firms over $22 billion so far, rabid implications. Alert observers can sense an internal war between the US Attorney General office and USDept Treasury in its early stages. It might result in Geithner resignation and no further Goldman Sachs preppies considered for the post of Treasury Secy, the GSax stronghold.

Pam Martens explains why the criminal charges against Goldman Sachs are not frivilous, nor a whitewash attempt or scapegoat handslap exercise. She wrote a thorough piece entitled "Why a Criminal Case Against Goldman Sachs Matters and Why Charges Could Stick" on the Counerpunch website (CLICK HERE). Some historical perspective is offered. History repeats itself. She wrote, "It all sounds eerily familiar to the wealth transfer maneuver by Goldman Sachs Trading Company in the asset bubble of 1928. The Trading Company was a closed end fund (called a trust in those days) that Goldman Sachs created and offered to the public at $104 a share, stuffed with conflicted investments while paying Goldman a hefty management fee, only to end up a few years after the 1929 crash trading at a buck and change. On May 20, 1932, Walter Sachs, President of the Goldman Sachs Trading Company, was grilled by the Senate Committee on Banking and Currency. The implication was the same as the current round of Senate hearings: Goldman royally fleeced its customers to line its own pocket."

See another scathing rebuke of Goldman Sachs by the irrepressible and brave Matt Taibbi. His is another update in a series which lovers of justice and truth should embrace. Taibbi began his series of revelations and attacks with "The Great American Bubble Machine" in which he famously labeled Goldman Sachs "a great vampire squid wrapped around the face of humanity." See his May 13th article entitled "The Feds versus Goldman" with subtitle "The government's case against Goldman Sachs barely begins to target the depths of Wall Street's criminal sleaze" (CLICK HERE). Two pictures say 1000 words twice.

 

◄$$$ INTERPOL IS ON THE SCENE, BUT NOT ON THE VISIBLE FRONT LINES. THEY ARE INVOLVED IN HIDDEN PINCER MOVEMENTS. IN TIME THEY WILL MAKE THEIR ACTIVITY PUBLIC. $$$

Consider the Interpol angle and important recent events. The Interpol (European FBI) targeted investigations through the Brussels Serious Fraud Squad against the London gold market (LBMA). Back in August 2009, two to three dozen individuals turned themselves in to the Interpol, people had previously worked in USDept Treasury and Wall Street firm positions. They asked for EU asylum and were granted that asylum. They arrived with boxes of evidence in the form of CDs, documents, emails, and testimony. Afterwards, Interpol began a concentrated focus on the London gold market as the principal site for corruption, fraud, and gold larceny. Large scale depletion of London gold followed, demanded by billionaire clients. In mid-December, Interpol landed 200 agents inside the United States in order to further investigations against financial criminals. In January, President Obama granted powers to Interpol to conduct investigations on US soil, the powers extending to subpoena and discovery demands for information, documents, and testimony. The SEC might be taking legal action so that they are not the only national prosecutor body not taking action.

The pressure against GSax is powerful and global, as risks are acute. Look for a GSax suicide, which would create a vast new convenient black hole for the disappearance of a raft of important documents. One must consider why Tim Geithner was selected as Treasury Secy. Compared to his predecessor Hank Paulson, Geithner is a mere minion, with fewer powerful friends, less intelligence, less power, less defensive capability. In my view, Geithner was chosen to serve as the Fall Guy, to serve a larger purpose. Geithner is an excellent litmus test for tipping off the breakdown of GSax high level reinforcement column of support. Watch for attacks against Geithner to preview lost control by the syndicate. Critical is that GSax still controls the USDept Treasury. If GSax is under attack, then somehow Geithner should be under attack. Watch for weakness and cracks in the Geithner office. Geithner's involvement in the mortgage bond accounting coverup from his New York Fed post is known. Watch for charges of obstruction of justice against GSax, from their armtwisting or bribery in defense. Somebody could make a career by exposing them at their routine games.

◄$$$ THE ESSENCE OF THE FASCIST BUSINESS MODEL IS MANIFESTED IN THE GOLDMAN SACHS CONFLICT OF INTEREST. $$$

Goldman Sachs pursues the business franchise priority at every turn, and thus harm the public interest. The tragic fact of economic history is that the Fascist Business Model destroys an entire economy, as the powerful large corporations merge with the state, and then are protected by the state. Nowhere is this destructive acidic economic model more evident than Goldman Sachs, with its elite position among Wall Street firms, and its tight control 20-year of the USDept Treasury. That is where the USDollar is managed, and all USGovt purse outlays are approved.  Inefficiency follows, eclipsed by corruption, then breakdown of law, lastly economic collapse. In my view, Goldman Sachs represents the embodiment of this business model on the US landscape in a very thorough fashion. See the Washington Post article about how the Goldman Sachs business model contradicts the public interest at every turn, by Roger Martin (CLICK HERE).

USTREASURY TURMOIL

◄$$$ MASSIVE USTREASURY REDEMPTIONS TOOK PLACE IN APRIL, TOTALING $643 BILLION IN USTREASURYS, THE GREAT MAJORITY IN SHORT-TERM USTBILLS. THE SUM IS MIND BOGGLING, YET RECEIVES HARDLY ANY ATTENTION. DEBT ROLLOVER IS THE PRINCIPAL VULNERABILITY OF THIRD WORLD NATIONS. SUBJECT TO THE SAME THREAT, THE USGOVT IS AT VERY HIGH RISK OF NOT JUST DEFAULT, BUT RECOGNIZED MONETIZATION OF RUNAWAY DEBT. $$$

Staggering records at USTreasury auctions are being set. They include both total sums and short-term sums. The principal path to Third World debt default and national ruin is the inability of a national government to roll over its short-term debt, as refinance becomes an impossible event. The USGovt is setting consecutive records on debt issuance and redemptions. The financial press is quiet on the subject. The risk is two-fold. First, the total size of the deficits to convert to debt are staggering, greater than anything any government in world history has ever contended with. The magnitude seems to be manageable in the view of the supposed banking and bond experts. The volume does not appear in any way to be on the decline, as new records are set regularly. Second, the reliance upon the monetization solution puts the entire US$ system at grave risk. Little attention is given such risk, or attempt to unmask its hidden devices. To date, great lies have been told to the USCongress and American people by USFed and USDept Treasury officials about the usage of printed money to cover the debts. Hyper-inflation is here now on the monetary aspect. At stake is the confidence and integrity of the USDollar and USTreasury. In my view, the respected image is lost. The USGovt has an acquired image of being a powerful rogue, with crafty inventive methods used to conceal its illicit activity. Supports are uniformly artificial. The game is lost. The reputation of the USGovt has irreparably fallen. The allies are lost. Apart from the narcotics wars and money laundering and merchants of death, the USGovt has fallen victim to debt and ruin. What remains is the final chapter to play out, one already written.

In April alone, the USGovt redeemed a gargantuan $643 billion in USTreasurys. The great majority, $596 billion, was in short-term securities, the US Treasury Bills. The needs and requirements to fulfill the debt issuance is beyond most description, as the USGovt must have access to moutains of cash in order to keep rolling its ridiculously short average maturity debt load. An accelerated need for money is the trademark of a bubble. A past priority was to reduce the maturity, in doing so lower the borrowing costs. Clinton and then Bush II created a time monster. The USDept Treasury has redeemed $596 billion in USTBills in April, an all time world record. Add $47 billion in longer term USTreasury Notes and the total is almost $650 billion in redemptions. This number is absurdly ridiculous and out of control. The financial markets seem oblivious. They do not attempt to reckon where the money comes from to cover the debt issuance and rollover. It does not exist, and thus the Printing Pre$$ has been the last resort. Due to the interest expense, the USFed can never exit from the 0% corner. All experts recognize this fact, and thus ignore official Exit Strategy pronouncements. The specter of the USGovt debt putting the US and world economy at risk is gradually gaining attention. The USDept Treasury is unable to keep issuing shorter and shorter dated debt, the limit already breached. Global recognition of the monetization solution being used for several months is the next removed pillar in the world of trust. See the Zero Hedge article (CLICK HERE).

The fiat monetary system depends heavily upon trust, confidence, and perceived integrity. The USDollar is fast losing all in world view. In recent months, a new pillar holding up the US$ as world reserve currency is the dreadful condition of the major competitor currencies. Every single major currency is in trouble. Ironically the US$ fares poorly against emerging nation currencies. The last currency standing on the dance floor will clearly be gold, with silver holding its business card.

◄$$$ USGOVT TO SELL $351 BILLION IN USTREASURYS IN Q2 OF 2010. THE ENDLESS PARADE OF HUGE SUPPLY CASTS THE UNITED STATES IN THE SAME HORRIBLE LIGHT AS GREECE, BUT WITHOUT THE PROPER RECOGNITION, WITHOUT THE FORCED BUDGET AUSTERITY FOR DISCIPLINE, AND WITHOUT THE RIOTS BY THE PUBLIC. IN JUST THE FIRST FOUR DAYS OF MAY, THE USGOVT SOLD $144 BILLION IN USTBILLS. $$$

As preface, let it be known that the USGovt debt has nearly identical metrics as the Greek Govt. See debt versus national economy, growth rate in federal deficits, falling revenues, lack of economic growth, bloated government expenditures, and other metrics. Another more tangible connection is the actual shared payouts, as the USGovt is in line to pay for 17% of the Greek Govt bailout. The USGovt has made absolutely zero progress in reducing its deficits and spending, but Greece is held to the fire to make reductions. Atop all the gargantuan debt issuance to finance the ruinous USTreasury operations, the USGovt announced plans to sell $351 billion in debt in 2Q2010, according to the Securities Industry & Financial Markets Association (SIFMA). The USDept Treasury will sell a net $351 billion in Notes, Bonds, and Bills in the second quarter, according to a SIFMA survey. The official pronouncement of debt hemorrhage will come imminently. The total would be down from $483 billion in the first quarter, but slightly higher than the Q2 a year ago. This is great news on a relative basis, kind of like a dying man on the street only losing 1.7 quarts (liters) of blood today, versus 1.9 quarters (liters) yesterday. Survey respondents in the SIFMA canvass expect higher USTreasury yields to come, but for completely ridiculous reasons tied to optimism. If higher yields come, it will be from massive supply.

Before the extreme stun of  the USTreasury redemption of nearly $600 billion in Bills in the month of April wears off, prepare for another shock. The USGovt has chosen a path with short maturity emphasis, one with severe side effects and shock potential, complete with weekly threats. According to a recent DTS report on USTreasury activity, in the first four business days of May alone, the USTreasury has redeemed $144 billion in Bills. Recall that a tremendously effective method to produce bond demand is to stage a stock market selloff. The 4.0% high water mark for the 10-year USTNote is an etching in past history, as the new TNX yield is closer to 3.5%, on safe ground. Tyler Durden points out the risk of how the sovereign debt fire will spread through the periphery and into the Anglo core. Already, check the Credit Default Swap contracts. Traders are betting on a collapse of the UKGilt debt complex as the next bastion of sovereign spending gone amok. When the UK goes and British financial ship at sea is grounded, look for Japan Govt Bonds and finally the USTreasurys to suffer severe shocks and possible bouts with default. Durden anticipates at that point the only buyer of USGovt debt will be the USTreasury itself, as in pure monetization, the stuff of hyper-inflation. This intrepid adept analyst forecasts massive consumer deflation amidst economic collapse within the US borders, coupled with asset price hyper-inflation. Basic supplies like milk and gasoline would double quickly in price, and the Dow Jones Industrial Index could double also. American life would have to adjust to extraordinary conditions, that could feature supply rationing, and very likely, if history repeats itself, include a wider war. See the Zero Hedge article (CLICK HERE).

USFED MONETIZATION UNMASKED

◄$$$ A MOSAIC PATTERN OF DANGEROUS AND RECKLESS SIGNALS REVEALS VAST MONETIZATION OF USTREASURYS. THE SLUSH FUNDS AND SECRETIVE CHANNELS TO FINANCE THE VAST USGOVT DEBTS APPEAR TO BE IN THE CARIBBEAN FOR OFFICIAL NOT-SO-WELL HIDDEN SOURCES. $$$

Gordon Long of the LCM Groupe makes sense of nine suspicious clues to conclude a tremendous shrinking demand for USTreasurys and a vast network for alternative financing methods. The Caribbean and United Kingdom have become central to the hidden monetization. In two recent articles in the Extend & Pretend Series (CLICK HERE), he laid out eight suspicious anomalies that few professionals can presently explain. Many analysts like the Jackass have identified a few of his key clues in the last year or more. Analyst Long compiles a great composite list worthy of attention. Long recently made a ninth clue that directs attention to the Caribbean for its slush funds used by both the USGovt and the Bank of England. The motive is obvious, to conceal monetization of USTreasurys.


The highly suspicious clues:

1)      PLUMMETING US MONEY SUPPLY DESPITE Q.E. (Quantitative Easing)

2)      USTREASURY AUCTION (Featuring Historic Direct versus Indirect Bids)

3)      MAJOR PARTICIPANTS REDUCING USTREASURY HOLDINGS

4)      DRAMATIC COMMERCIAL BANK LENDING SPIKE

5)      HISTORIC 10-YEAR INTEREST RATE SWAP REVERSAL

6)      HISTORIC & UNPRECEDENTED TRANSFER OF FUNDS

7)      GOLD MARKET MANIPULATION CONFIRMED IN CFTC HEARINGS

8)      PROPRIETARY RECEIPTS FROM THE PUBLIC

9)      US TREASURY PURCHASES SUDDENLY COMING FROM CARIBBEAN & UNITED KINGDOM (Channel Islands)

Bond analyst Long disparagingly calls the mysterious bidder for USTreasurys the Tooth Fairy, to explain Clue #2 in what he calls the gaming the US taxpayer. The creature was the name given to the mysterious direct bidder that has emerged in the USTreasury auction to prevent the bond auction from being a outright failure and an international public spectacle. A failure would bring shock and crisis to the market, but worse, it would result possibly in a sudden dramatic rise in USTreasury bond yields. Long concludes that the Tooth Fairy might actually take residence in the Caribbean and UK Channel Islands. Notice the rise in the chart (with blue uptrend line) since August 2009 in the Caribbean Banking category for USTBond support. The region, with Bermuda, Cayman, and Bahamas at its heart, has been a traditional location for illicit USDept Treasury and Bank of England collusion, well known to bond analysts worth their stripes. See the LCM Groupe article (CLICK HERE).

◄$$$ BERNANKE ADMITTED TO THE USCONGRESS THAT THE USFED IS UNDERTAKING HEAVY MONETIZATION, TO THE TUNE OF $1.3 TRILLION. HIS ADMISSION REVEALS PAST LIES BEFORE THE CONGRESS. APPARENTLY THE OFFICIAL Q.E. PROGRAMS RUN BY THE USGOVT NEVER ACTUALLY WERE ENDED. $$$

Were the American public and its USCongress told just six weeks ago in clear terms that the USFed was NOT monetizing debt? Chairman Bernanke's denials have turned to outright lies. His job is to print money, to purchase USTreasury and USAgency Mortgage Bonds, to obey orders from his supra-national masters, and to lie to the faces of the legislators. Gentle Ben has admitted his lies, told the truth, but couched it in a sort of mutually agreed upon activity. The official USGovt monetization program has come to its designed end in mid-March. They tried to tell the people and legislators two months ago that only a portion of the scheduled funds were devoted to bond monetization. Finally, Bernanke has admitted than a mammoth sum of $1.3 trillion was printed out of thin air for the specific purpose of buying mortgage backed securities. The shocking admission came at the Joint Economic Committee hearing on Capital Hill in late April. Bernanke replied with YES after Representative Ron Paul asked direct questions, "Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system?" The mainstream US financial press covered nothing on this revelation. The media appears to think nothing of the USFed creating $1.3 trillion in a little more than a year to buy worthless mortgage debt that creditors have shown little demand for.

Rep Ron Paul then turned his sights to the $105 billion money printing exercise to bail out Greece. More coy, leaning on the group sponsored monetary debasement card, Chairman Bernanke answered by saying, "I think one of the agreements that the G20 leaders came up with was sort of a mutual commitment to put more money into the IMF as a way of addressing the financial crisis around the world." It is not missed how Bernanke leaned on the concept of mutual commitment. Western mutual action constitutes powerful mutual debasement of the G-20 member nation currencies. Rep Paul also brought up the thorny topic of outsized state debt fiascos soon to arrive on the federal government doorstep, as desperate requests for aid. A great many bankrupt cities and states such as Los Angeles and California are in the process of appealing for aid, but to date the USGovt only has channels directed to Wall Street, the Pentagon, and the federally sponsored Black Holes at Fannie Mae and American Intl Group.

Many analysts believe such monetary inflation and mutually assured currency destruction has lifted the gold price around the globe, especially in Euro and British Pound terms. Some very big inflation lies around the corner. Unwillingly and hardly unwittingly, Bernanke just put the USFed playbook on open display to reveal the policy on how money will be printed to fix all financial problems, including state fiscal disasters. He is not making much effort to hide it any further, perhaps because it has already been somewhat exposed. Inflation as a path has been chosen for the People by the US Federal Reserve, yet the People acting as taxpayers have no capability even to audit its actions formally. A second front from the USCongress has opened, whose initiative is to audit the USFed. This issue will not go away! The impact on the USDollar from broad monetization is unavoidable and eventual. The huge distress in Europe has forestalled the currency devaluation impact on the USDollar. Anyone with a savings account or money market fund denominated in USDollars should be terrified. The hidden tax of inflation is hard at work, soon to deliver major shocks. See the USA Watchdog article and video (CLICK HERE). Be sure to notice for yourself as Bernanke nods YES to printing $1.3 trillion.

◄$$$ YET ANOTHER INITIATIVE TO CONFRONT THE USFED HAS COME. THIS IS AN UNSTOPPABLE PROCESS. IT WILL CONTINUE UNTIL THE HALLOWED USFED OFFICES AND FILES ARE FULLY AUDITED, VIEWED, ANALYZED, AND SCRUTINIZED. THE TOO BIG TO FAIL PRINCIPLE MIGHT SOON BE TURNED ON ITS HEAD. LARGE BANKS ARE TARGETS IN SIGHT. $$$

The US Senate is stubborn and relentless. A new amendment is gaining support, called the Brown-Kaufman Amendment, with additional reinforcement offered by maverick Sanders. Passage is hardly assured, but leadership promises a vote without process table blockage. The Huffington Post reports that "Harry Reid will make sure that an amendment to break up megabanks and cap their size comes up for a vote, the Senate majority leader said. He added that he was leaning heavily toward voting for the amendment, cosponsored by Senators Sherrod Brown (D-Ohio) and Ted Kaufman (D-Del). Reid will also support an amendment from Senator Bernie Sanders (I-Vt) that will authorize an audit of the Federal Reserve." The US Congress is threatening to cut off the financial controllers, the very same maestros who fill senator campaign fund coffers, the same shadowy types who place their henchmen in key committee posts. The fight is on, but the rebuff is assured. Look for devious games, like bribery, heavy influence peddling, favors traded, even possibly violence and suicides. The past is littered with such examples. At risk is the viable eminence of the entire financial oligarchy that has turned into a cancerous kleptocracy. It has controlled the  country for decades in clandestine fashion. The next inevitable logical progression is the passage of the McCain Amendment which would return the Glass-Steagal provisions of financial sector separation. Any enforced separation would result in financial giant firm breakups. See the Zero Hedge article (CLICK HERE). OOPS!! The stock market roller coaster 1000-point ride scared the Senators into removing key audit provisions!! Cowards!! The press networks did not mention this crucial fact. Tools!!


Thanks to the following for charts StockCharts,  Financial Times,  UK Independent,  Wall Street Journal,  Northern Trust,  Business Week,  Merrill Lynch,  Shadow Govt Statistics.