The International Forecast
The Crony Capitalist Bailout Nation
written by Bob Chapman
Saturday August 8, 2009
The Illuminati are attempting to start back up where they left off when Meredith Whitney cut them off with her exposure of Citigroup's toxic waste, but this time it is the taxpayers who are at risk on account of continuing government bailouts of so-called too-big-to-fail legacy banks. To accomplish this recommencement of the subprime and other derivative fraud, they have their losses held at bay with bogus mark-to-model bond and derivative values while Buck-Busting Ben lends them interest-free money which they are parking with the Fed at interest, investing in treasuries, and/or pouring back into the stock and derivative markets.
This is where all the green shoots are coming from, namely, from money created by printing press prestidigitation out of thin air by Bernanke that is being invested by Illuminist financial institutions instead of being loaned to consumers. The dollar volume in the stock markets far exceeds the money coming out of money markets, so dollar volume and stock prices are being greatly exaggerated as a result of all this profligate money and credit. This is yet another reason why the Fed stays silent about what institutions received all the money and credit that it has loaned out. That would enable canny investors to trace the stock market volume to its real source, being digital dollars provided by the Fed to keep the sucker's rally going. This rally mirage will come back to haunt anyone who stays in the stock market, other than owning gold and silver related shares.
Meanwhile, as all this transpires, in yet another parlor trick, Bernanke is exchanging dollars created out of thin air by the Fed for other fiat currencies also created out of thin air by foreign central banks in various currency swap arrangements. This keeps foreign banks out of US credit markets whenever they need dollars to settle transactions, such as oil purchases and credit default swap settlements. These swapped dollars are also used by foreign central banks to purchase treasuries in order to support the dollar and US treasury bond values, which of course helps to maintain the value of their own existing dollar-denominated reserve assets in US treasury and agency paper. These swap arrangements are how the Fed is able to maintain the near zero interest rates in US credit markets which are crucial to Illuminist banking profits.
These swap arrangements are little more than smoke and mirrors economics. They have to keep swapping, or interest rates in US credit markets will rise, treasury values will plummet, and the Fed will be forced to monetize more treasuries to counteract these trends. These swaps swell the amount of dollars held by foreigners, which will come back to haunt us later when these foreigners implement big dollar bailouts and create a dollar carry trade. This flood of dollars back to our shores will be the atmosphere that leads to dollar devaluation. The repatriation of dollars from foreign central banks alone is more than enough to create hyperinflation, much less all the money and credit sloshing around in our national economy already as our government miscreants deficit-spend us into oblivion. The swaps are being used to sterilize dollars, delaying the inevitable so they can continue to milk the system as long as possible.
The Illuminati may well pull the plug on the stock and oil markets to chase money into dollars and treasuries to save those markets again, which are the seat of Illuminist power, and to help fund an FDIC bailout of what could be hundreds of billions from hundreds of bank failures that would be tallied up during the upcoming bank holiday where the small fry will once again be culled out so the big bankster-gangsters can eliminate the competition and acquire their accounts and assets for pennies on the dollar. The bank holiday would be used as the excuse for the PPT to withdraw its support from the stock markets, letting them crash under their own weight by virtue of countless negative fundamentals.
The Crony Capitalist Bailout Nation
written by Bob Chapman
Saturday August 8, 2009
The Illuminati are attempting to start back up where they left off when Meredith Whitney cut them off with her exposure of Citigroup's toxic waste, but this time it is the taxpayers who are at risk on account of continuing government bailouts of so-called too-big-to-fail legacy banks. To accomplish this recommencement of the subprime and other derivative fraud, they have their losses held at bay with bogus mark-to-model bond and derivative values while Buck-Busting Ben lends them interest-free money which they are parking with the Fed at interest, investing in treasuries, and/or pouring back into the stock and derivative markets.
This is where all the green shoots are coming from, namely, from money created by printing press prestidigitation out of thin air by Bernanke that is being invested by Illuminist financial institutions instead of being loaned to consumers. The dollar volume in the stock markets far exceeds the money coming out of money markets, so dollar volume and stock prices are being greatly exaggerated as a result of all this profligate money and credit. This is yet another reason why the Fed stays silent about what institutions received all the money and credit that it has loaned out. That would enable canny investors to trace the stock market volume to its real source, being digital dollars provided by the Fed to keep the sucker's rally going. This rally mirage will come back to haunt anyone who stays in the stock market, other than owning gold and silver related shares.
Meanwhile, as all this transpires, in yet another parlor trick, Bernanke is exchanging dollars created out of thin air by the Fed for other fiat currencies also created out of thin air by foreign central banks in various currency swap arrangements. This keeps foreign banks out of US credit markets whenever they need dollars to settle transactions, such as oil purchases and credit default swap settlements. These swapped dollars are also used by foreign central banks to purchase treasuries in order to support the dollar and US treasury bond values, which of course helps to maintain the value of their own existing dollar-denominated reserve assets in US treasury and agency paper. These swap arrangements are how the Fed is able to maintain the near zero interest rates in US credit markets which are crucial to Illuminist banking profits.
These swap arrangements are little more than smoke and mirrors economics. They have to keep swapping, or interest rates in US credit markets will rise, treasury values will plummet, and the Fed will be forced to monetize more treasuries to counteract these trends. These swaps swell the amount of dollars held by foreigners, which will come back to haunt us later when these foreigners implement big dollar bailouts and create a dollar carry trade. This flood of dollars back to our shores will be the atmosphere that leads to dollar devaluation. The repatriation of dollars from foreign central banks alone is more than enough to create hyperinflation, much less all the money and credit sloshing around in our national economy already as our government miscreants deficit-spend us into oblivion. The swaps are being used to sterilize dollars, delaying the inevitable so they can continue to milk the system as long as possible.
The Illuminati may well pull the plug on the stock and oil markets to chase money into dollars and treasuries to save those markets again, which are the seat of Illuminist power, and to help fund an FDIC bailout of what could be hundreds of billions from hundreds of bank failures that would be tallied up during the upcoming bank holiday where the small fry will once again be culled out so the big bankster-gangsters can eliminate the competition and acquire their accounts and assets for pennies on the dollar. The bank holiday would be used as the excuse for the PPT to withdraw its support from the stock markets, letting them crash under their own weight by virtue of countless negative fundamentals.
Congress is going to grant authority for the issuance of $500 billion in treasuries to fund the FDIC bailouts, and it is the Fed's hope that the flush of liquidity from the PPT's crashing of foreign and domestic stock and oil markets into dollars and treasuries will reduce the amount of those FDIC bailout bonds that the Fed will have to monetize. Precious metals will undoubtedly become beneficiaries of this flushing out as well. This will be the dollar and bond markets' last hurrah, and will pave the roads leading to devaluation of the dollar, and to the greatest bull market in gold and silver of all time. The next leg up will make up for all the big profits that have eluded newer investors in precious metals thus far. The best is yet to come. Buy your tickets now, and make sure that you're already on the train when it leaves the station!
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