ARE YOU MAD YET?

In a post to this blog on August 28th I wrote: “The facts are irrefutable. There is no practical strategy in place nor is there a viable solution to prevent a systemic meltdown of our financial system. Protect your assets while you still can.”

And in a more recent post published on September 21st, I said: “The financial system is now broken. The meltdown is underway……..We are living in the midst of an event that will go down in history right alongside the Great Depression and the Civil War.”

I have been writing about the inevitability of this catastrophe for over two years because the mainstream financial press wouldn’t touch it with a ten-foot pole. They had strict instructions from their “masters” not to discuss it.

So are you mad yet? I would certainly hope everyone is. The blatant conspiracy that exists between the most powerful banking and corporate institutions, the Federal Reserve, the U.S. Treasury and most of our elected representatives have “killed” infinitely more people than the planes that crashed into the buildings on September 11, 2001. The loan originators, the appraisers, the investment banks, the rating agencies,

the mortgage insurers, the government regulators, the Congressional oversight committees and the 28-year-old MBA’s, who created those esoteric weapons of mass destruction called over-the-counter derivatives, were all in on it. That many were enriched, some by hundreds of millions of dollars, while the American people saw their pension and retirement plans go broke as trillions of dollars of their life savings got vaporized, is a crime, plain and simple. To ask those who got raped to bail out the perpetrators just rubs salt into the wound.

In case the citizenry should take to the streets to demonstrate their anger, the government, cognizant of this prospect, has deployed thousands of troops in our own country to put down any possible uprisings. A large demonstration was held near Wall Street a couple of weeks ago and purposely not covered by the press.

Understand, that bear market rallies to the contrary, there are no good solutions to the credit freeze or the downward spiral in our markets. The Federal Reserve’s balance sheet is about to explode as it tries to prevent a 1930’s deflationary depression. No longer of any use, the printing presses have been replaced by key strokes on computers in an attempt to reflate the system. If they are “successful,” then we’re looking at a Weimar Republic experience of hyperinflation. If they can’t create money out of thin air fast enough to keep the major banks i.e. Citi Group, Bank of America, J.P. Morgan Chase, Morgan Stanley, Goldman Sachs etc. capitalized (they are all technically insolvent), then can “bank holidays” be avoided?

We are witnessing the greatest transfer of wealth from the many to the few in the history of the planet. All trust in the financial system and our elected officials is gone. Only when the criminals are punished will any semblance of confidence return.

10/12/2008

THE FINANCIAL SYSTEM IS BROKEN

The financial system is now broken. The meltdown is underway. Our “buyer beware” form of capitalism has found the buyers to be totally unaware. But then most people living in “light coma mode” are not too cognizant of anything, really. For instance, they do not comprehend that we are living in the midst of an event that will go down in history right alongside the Great Depression and the Civil War.

To those of you who are conscious, I ask the simple question: are you mad, yet? Are you outraged to learn that our fractional banking system, based on pieces of paper backed by absolutely nothing and leveraged to the hilt, is self destructing? Does it make you mad that every bank in the country only has to keep 10% of its deposits on hand, thus assuring that it is essentially insolvent and could never stand a run on its assets? Does it make you furious that the FDIC, who is there to insure everyone’s bank account only has about 1% of the money necessary to perform its role? And finally, are you properly incensed that a private, unconstitutional entity, otherwise known as the Federal Reserve, has seen fit to bail out those who should be in jail and saddle their debts on the backs of the American taxpayer, you and me? Socialism for big institutions, dog-eat-dog for the American people.

The Feds will do whatever they can to keep the whole thing propped up until Election Day. That means they will crank up the printing presses to the speed of light in order to create more paper credit. They will intervene in our so-called free market system in order to “manage” the stock, bond, currency and precious metals markets as they have been doing for years. In the meantime, put on your helmets and keep your eye on the U.S. dollar. Think of dollars as the common shares of the United States of America. And remember, what is occurring now has always happened in the past. There has never been a paper currency that hasn’t been totally destroyed.

Finally, one last question: as much as I like Obama as a human being, do you really think he or McCain have the slightest idea what to do about the implosion of our financial system? Whoever wins in November, he might try a brand new concept: SELLER BEWARE.

09/21/2008

FACING A FINANCIAL MELTDOWN, THE COMPLACENCY IS STUPIFYING

Is there anyone out there who is sick and tired of being lied to? Am I the only one who sees the blatant conspiracy that exists between our elected representatives, the Federal Reserve, the U.S. Treasury and the most powerful banking and corporate institutions? While we all know the slogan: "It's the economy, stupid" got Bill Clinton elected back in 1992, do we know what those words really mean in 2008?

Yes, we all know about the high gas and food prices and are properly complaining about them. But folks, that's like putting the head of a pin on the tip of an iceberg when compared to what's really going on behind the never-ending spin and repeated outright lies.

Nineteen of the largest investment banks are groveling on a weekly basis at the Federal Reserve's begging bowl just in order to stay solvent. When they're not there, these same banks are over in Singapore and South Korea with cup in hand to these countries' sovereign wealth funds. Fannie Mae and Freddie Mac, who own or guarantee 90% of the mortgages outstanding in the United States (that's roughly $5 trillion), are toast. They will have to be nationalized by the Federal Government. And General Motors and Chrysler are waiting in the wings.

Where do you think that money is going to come from to bail out these and other institutions? There's only two options: the U.S. taxpayer or that marvelous invention of the Industrial Revolution, the printing press. More paper dollars lead to higher and higher inflation down the road.  The 500 to 1,000 trillion dollar unregulated over-the-counter derivative problem is coming home to roost. Why doesn't that make you mad as hell? The complacency is stupifying when you try to put your arms around the truth as opposed to the PR we are treated to day after day.

The facts are irrefutable. There is no practical strategy in place nor is there a viable solution to prevent a systemic meltdown of our financial system. Protect your assets while you still can.

08/28/2008

LIES AND DECEIT HAVE CONSEQUENCES

George Orwell wrote: "In a time of universal deceit, telling the truth becomes a revolutionary act." Here and now, in the first years of the 21st century, we are living through the quintessential age of deceit. The telling of lies to the American people has become ubiquitous.

The conspiracy between Corporate America and our elected government views American citizens as adversaries to be suppressed through deceit.

Their untruths, aided and abetted by their public relations firm, the mainstream press, span such alarming flashpoints as taking us to war for oil, infringing on our personal liberties by invoking the usual cliche about national security, outing a CIA undercover agent and endangering the lives of her associates in the field in order to seek revenge, inventing esoteric over-the-counter derivatives that threaten the world's financial system and then bailing out those who should be behind bars. I could go on forever.

Each morning "W" wakes up unimpeached and Wall Street goes through another day "unindicted," it is a victory for the status quo over civil disobedience and for lies over truth. When will the American people wake up and take back their country? It won't be long before their savings, if they have any, are inflated away and their promised retirement becomes a nightmare. You don't create billions of paper dollars out of thin air to bail out your pals on Wall Street without there being dire consequences.

Although there are reports that sightings have been made of individuals actually thinking for themselves and not accepting the spin spood-fed to them by the press, complacency still rules the day. Put on your helmets, folks; there are more shoes to drop. Lies and deceit have consequences.

06/04/2008

AMERICANS REMAIN CLUELESS ABOUT FINANCIAL SYSTEM

It saddens me to have come to the conclusion that the citizens of this great land remain clueless. We listen to the Secretary of the Treasury and the Chairman of the Federal Reserve and actually believe what they say. We watch the “Goldilocks” cheerleaders on CNBC and hang on their every word. What can be done to startle us out of our coma, shock us out of our numbing complacency and recharge our run-down brain cells?

Folks, the American financial system is broken. The 19 largest investment banks continue to inhale and exhale only because they have been invited to go begging at the Federal Reserve’s begging bowl. Hedge funds are waiting in line with hope in their hearts for their turn. Fannie Mae and Freddie Mac, who together buy or guarantee 90% or five trillion dollars of this country’s mortgages, are technically insolvent. To keep them breathing, the Federal reserve and the U.S. Treasury, with a little help from the morons in Congress, are providing them with unlimited funds. Don’t forget, after all, that Fannie and Freddie are the biggest lobbyists in town. While it might be fun to distract Boobus Americanus by blaming short sellers for the plight of these noble institutions, the truth of the matter is these corporate entities are being rewarded by their friends for having engaged in blatant mismanagement and obscene greed.

But who do you think is going to pay for what could turn out to be a trillion dollar bailout? That’s right, we are. The American taxpayer. If it isn’t through increased taxes, then it will be done by the printing presses. Inflation is a monetary phenomenon. The more dollars you print, the less each is worth. And the Federal Reserve, in a desperate attempt to avoid a systemic meltdown, is creating paper dollars at NASCAR velocity. It’s important for us to really understand the reality that there has never been a paper currency backed by nothing at all that has ever survived. All have been destroyed by politicians and central bankers through the mechanism of inflation. Today, the intrinsic value of the U.S. dollar is zero.

Time is running out on protecting ourselves from what’s coming down the road. As the saying goes: “better put your affairs in order.”

08/05/2008

ON THE BRINK

Fannie Mae and Freddie Mac own or guarantee 90% of this country’s mortgage loans. That’s a cool $5 trillion. And anyone who can read a balance sheet knows without a doubt that both companies are insolvent. Bernanke and Paulson may deny that inescapable fact, but they are not in denial; they are merely lying. That’s what governments and central bankers do these days. It’s become a way of life.

So here we go again. Another weekend is upon us, and the liars are going to have to figure something out before the markets open on Monday, just as they did months ago when faced with Bear Stearns’ imminent demise.

Regardless of how they go about saving the two criminal entities, you can count on the U.S. tax payer—–that’s you and me—–to have to bail them out. After all, as they like to say, Fannie and Freddie are too big to fail. And there are still other “upstanding” institutions waiting in the wings. Lehman Brothers is toast. Wachovia is floundering badly. We will be called upon again to pay the bill.

That should make you angry. It should inspire you to demand jail sentences for those who leveraged the mortgages of this country for their own personal and corporate greed. It should make you real mad that Wall Street, the Federal Reserve and our elected government choose to use mountains of paper debt to finance their agendas at our expense, which we will now pay out of our pockets in multiple bail outs of the guilty, economic stagnation and horrendous inflation.

Don’t ever scapegoat the speculators for the high cost of food and energy. You need look no further than Washington and Wall Street. The disgraceful monetary and fiscal policies conceived by those numbskulls have placed this country’s financial system in jeopardy. Until the citizenry insists on a return to a system whose foundation is based on sound, honest money as opposed to pieces of worthless paper debt and computer entries, this country will continue its plunge towards bankruptcy and irrelevance.

Finally, do you really think that Obama or McCain have the slightest idea on what’s really happening, much less how to fix it? They are politicians with no understanding of things financial. As President, and with what one of them is going to inherit from the impeachable Bush administration, why would either of them—–why would anyone—–want this job?

07/19/2008

THE CONSPIRACY AGAINST THE AMERICAN PEOPLE

We live in the age of conspiratorial capitalism. The Federal Reserve, the investment bankers, the highest echelons of Corporate America and the most powerful members of the Federal Government are all in it up to their eyeballs in a collusive scam  that views the American people as a bunch of adversaries and patsies. How do they lie to us? Let me count the ways.

Goldman Sachs, along with the other investment banks, sell predatory loans to investors around the world while the bank itself goes short the very same toxic loans. This all occurs under the leadership of Henry Paulson as Goldman's CEO. His reward is an invitation through the revolving door to become Secretary of the Treasury. The other banks, not as trade savvy as Goldman, get stuck with mountains of the worthless paper they created. Their reward is an unprecedented bail out by the Federal Reserve. Their brilliant CEOs are quietly retired with obscene pay packages while their shareholders and victimized investors are left to go down in flames.

The powers that be extol the virtues of free markets when in truth their fingerprints are all over the brokerage houses that trade equities, bonds, currencies and precious metals. They carry out their agenda in the paper derivative markets in broad daylight right under the noses of the so-called regulators. The stock market must be supported, as its demise, at the same time as the housing debacle continues, would be fatal. The long term bond market is allowed to drop a little in order that the spread between short and long term rates widens enough to allow the banks, which exist on the spread, to rebuild some of the capital they lost. But they can't let the bond market plunge because that would increase mortgage rates and thus intensify the real estate crisis.

The government publishes a phony Consumer Price Index every month which shows inflation to be under control when, in the real market, it is going through the roof. Food prices are up 89 percent in the last three years which has led to food riots all over the globe. Oil has quadrupled. So, unless you're one of those  unfortunate people who has to eat, drive your car or heat your home, the fraudulent "core" CPI should present you with no problems. That's the CPI the government uses to screw senior citizens out of their cost of living increase they legally deserve to receive in their Social Security checks.

The Federal Reserve is increasing the money supply at a 20 percent clip. Increasing the money supply is what causes inflation.

Perhaps the worst comes from the financial press. Every economic report and earnings announcement is given the kind of spin one would expect from a public relations firm on behalf of its client. Citibank only lost $5 billion last quarter and still has $60 billion of nearly worthless paper on its books ---" but that's better than we thought." So the over-the-counter derivative weapons of mass destruction problem must be nearly over.

Finally, none of the three candidates for president has had the guts to tell the country that it is essentially broke. Nor do they have the slightest idea about how to fix the problem. Instead, they tell the American people what they want to hear in order to get elected. Never mind the unfunded liabilities of $56 trillion in entitlement programs waiting in the wings.

The people got shafted in 2000, got what they deserved in 2004 and are living in a fantasy world in 2008. At least, someone should tell them the truth so they can take the appropriate evasive measures to protect their financial well being. The inflation being produced at this very moment by the central banks of the world will make what we've experienced thus far seem like a walk in the park.

04/22/2008