"Wall Street Crisis Hits Stocks" was the first exposure.
The runs on US banks are in progress. See Washington
Mutual, where private email messages have been shared by WaMu bank
officers.
WaMu alone could deplete the
entire Federal Deposit Insurance Corp fund for bank deposit coverage.
Eventually the FDIC will compete for USGovt federal money for bailouts and
nationalizations. Eventually, bank deposits will not receive 100 cents per
dollar, in a compromise. Next the bank runs will push banks into failure,
at a time when stock accounts are under raids, without broad public
knowledge.
GOLD TAKES LEAD IN CURRENCY WORLD
Did anyone notice that on Wednesday the 17th, gold was up
big, like over $50, silver was up big, like over 70 cents, but the
USDollar was essentially flat, even up a smidgeon? By afternoon, the gold
rise intensified, and the USDollar fell hard. THE MESSAGE IS CLEAR: GOLD
IS LEADING MOVEMENTS IN CURRENCY PRICES. The world did flock to the
USTreasurys, surely led by mangled confused central bankers who have lost
control. However, gold is finally being seen as a safe haven. It will
become highly amusing to observe a clueless cast of corrupted minds
attempt to explain why gold vaults past the 1000 mark, and why silver
vaults past the 20 mark. They will offer up reasons, and if lucky, they
will touch on at most three or four of the twenty relevant reasons. Their
confusion includes observation of the decline in the crude oil price.
Their eye is off the monetary panic.
Moral hazard is just an obstacle to be side-stepped in
such times. Today, Bill McCullum of PIMCO actually said “We should not
give one thought to inflationary consequences.” He was referring to
gargantuan rescue packages and now global lending lines to central
bankers. And people wonder why gold shot up $80 yesterday, and why silver
silver shot up over $1 yesterday.
PREPARE IN THE VERY NEAR FUTURE
FOR GOLD TO RISE OVER $100 ON SUCCESSIVE DAYS, AND FOR SILVER TO RISE OVER
$2 ON SUCCESSIVE DAYS.
Inflation is soon to be seen as the remedy to prevent monetary collapse.
Gold just hit 900, and silver has reached 12.70 today. The euro has risen
500 basis points just since Friday morning. Gold is not rising sharply due
to inflation concerns alone, although plenty of monetary inflation is set
to continue flying through the money pipelines. THE REAL REASON WHY GOLD
IS RISING IS FOR THREAT OF SYSTEMIC FINANCIAL FAILURE CENTERING IN THE
UNTIED STATES.
What factors are key to gold rising? Perhaps because the
US financial system is imploding. Perhaps because the USGovt
nationalization demands are accelerating. Perhaps because the threat of
default for USTreasurys is seen as inevitable, even imminent. Perhaps
because nitwits who have highjacked the White House and USMilitary are
planning something truly reckless on the military front in Iran. Perhaps
because the US Federal Reserve is depleted and secretly insolvent, even as
they put word out of an INFINITE BALANCE SHEET. Perhaps because enormous
demand has come in physical gold & silver, despite the low price set by
corrupt US PaperHangers. Perhaps because fear has entered the room
globally.
CONSOLIDATION AMONG THE DEAD
The financial firms are not just dead, they are corrupt to
the core. Perhaps one or two Wall Street firms will be left standing in a
year or more. Has anyone figured out why foreign pursuit of Wall Street
firms is blocked? Partly because foreigners cannot assess the value of
such complicated opaque assets, intertwined within nests of acid pits.
The other reason is that US
banking authorities wish to keep the protected corrupt evidence within the
Manhattan fold. The South Koreans wanted a piece of Lehman Brothers, the best pieces. But
they would have had access to evidence needed eventually in criminal
prosecutions. See the KfW case of €300 million theft, possibly soon to
emerge against Lehman crooks. The German insurance titans wanted a piece
of AIG, the dead insurance giant. But they would have been handed access
to evidence of extreme vulnerability or criminality. Why were officers at
Lehman permitted to remove box after box from their building, when it
should be treated as a crime scene with yellow cordon tape? The answer has
to do with the Fascist Business Model, the merger of state with business,
where the syndicate facilitates fraud in deep collusion.
Why did Morgan Stanley stock go down hard after they
announced early their quarterly earnings? Possibly because nobody believes
they are honest. Morgan Stanley might be kept afloat longer, so as to
enable theft of brokerage account funds. Lehman does not have private
stock accounts, mostly bonds of the acidic type. So Lehman is free to
enter the trash heap of liquidation and the de-bone process for assets.
Meat is to be separated from bone. John Mack of Morgan Stanley had better
be careful, as he appeals for a Chinese role in a merger. That could give
the Chinese an important toe-hold in US mortgage bond ownership. They are
looking to convert mammoth USTBond garbage paper into hard assets, as a
foundation to a possible migration of one hundred thousand to one million
elite Chinese, to California, Arizona, Las Vegas, and Florida. It is
called colonization.
The moral of the consolidation story is that the dead are
marrying the dead. The Bank of America merger with Merrill Lynch struck me
as hilarious. Each is dead from insolvency. Each has big counter-party
risk from coverage of failed bonds.
So they will now serve as each
other’s guarantor of counter-party risk? Not in this world!
Imagine two fat men absent of musculature tossed overboard a ship. They
tell each other, “Stand on my shoulders and you will be fine for
breathing in this vast sea.” They both sink. The end game for such
ludicrous indefensible consolidation is that the Wall Street fraudulent
corporations go down all together. A friend called last night from the
analyst community. He wondered aloud that nobody could expect the speed of
the breakdown. My response was to point out a strong message mentioned
here repeatedly. Since the Bear Stearns bailout killjob merger by JPMorgan,
all Wall Street investment banks are aligned in similar fashion, with
common bond risk and common counter-party risk.
So when one Wall Street firm
goes down, several will immediately go down, and AIG is the umbilical cord
to the Main Street economy. This point was borne out as wickedly true when the Lehman funding bailout
failed. The parties trying to bail them out, offering funds, all found
themselves as subject to writedowns immediately. The funds they offered
were not available, since the loop of price reality reduced the level of
the offered funds!!! That means they are all in the same boat, and if one
fails, they all fail. So the system will desperately attempt to avoid any
failing. Thus, the entire system fails.
As simple citizens, people should be concerned that the US
Federal Reserve and US Dept of Treasury have begun to take actions far
outside their own legal powers. The bailout of AIG was made illegally. The
USFed cannot act to aid non-bank entities. Senator Jim Bunning has drafted
Congressional legislation to limit the USFed action outside the banking
realm. The system is losing control, especially with the law.
The parade of doomed deals continues. Talks have begun for
JPMorgan taking over Washington Mutual. Could the JPMorgan ‘Garbage Can’
be inadequate soon? Bank of America has entered talks to take over Merrill
Lynch, apparently striking a deal. Could BOA serve as the alternative
‘Garbage Can’ next, whose service would be as squire to JPMorgan? Now
Morgan Stanley is in talks to take over Wachovia. The disaster du jour
today seems to be State Street, which was down over 50%. The dominos are
falling. THE MESSAGE IS CLEAR: THE DEAD ARE MARRYING THE DEAD. It is
unclear what music to play at such events. My suggestion is something from
"Phantom of the Opera"
would be apt.
A SHORT ‘TOLD YOU SO’ HERE
The US financial sector became unglued this week. In last
week’s article, the point was made that the financial system had just that
one week to lift the USDollar, to raid private accounts with games like
yanked credit and a raft of paper naked short gold & silver future
contracts. Then next week the brown excrement hits the fan. Over the
weekend, deals were attempted to be forged into the night. Nobody seemed
to ask the question why they were all acting like in an emergency. What
emergency? A condition ordered by whom? My maintained point is that the
Bank For Intl Settlements ordered the US bankers to fix it or flush it!
Big news was expected from my analysis, and my Hat Trick
Letter newsletter. We got it! By the way, AIG was not on the radar for
numerous analysts. It was on my radar, a secondary radar. The big banks
are primary for my observation and monitor. WE ARE WITNESSING A
CONCENTRATION OF RISK, OF RUINED CORPORATIONS, AND OF THEIR ACIDIC BALANCE
SHEETS THAT IS SO GREAT THAT THE RISK OF US FINANCIAL IMPLOSION GROWS BY
THE DAY !!!
Blame for speculators continues, as nitwit players within
the fraud centers accuse others of speculation, and threaten prosecution
by their watchdogs on leash. Recent research failed to disclose any
collusion or illegal activity in the crude oil market. That does not stop
continued claims, with hue & cry. These criminals are pathetic, if not
consistent. Just when failed regulation is at the core of the financial
crisis, Wall Street conmen and clueless Congressional legislators argue
for more regulation and control, when the regulators and controllers
deserve prison terms. Instead, prosecute the regulators and controllers,
and begin with Alan Greenspan, and his knights of the Stupid Table at the
Federal Reserve.
The financial crisis continues each day. Last Friday the
currency markets smelled what was cited in broad terms as the end of the
OPEN WINDOW for the US banks. The euro currency rose over 220 basis points
that Friday, and the pound sterling rose over 330 basis points. Gold and
silver firmed in price. Something tipped them off, like huge flows of
private money out of the Untied States. This week, AIG and Merrill Lynch
and Morgan Stanley dominate the news. On two different days this week, the
NYSE Dow Jones Industrial index fell over 400 points. Today, when the Dow
Jones Index was up 170 points, in a phone call to a trusted friend, we
both agreed that the index would turn negative before the afternoon, and
close down. So far, that call looks correct, as it was minus 100 points
before now being up 50 to 60 points.
By the way, important option put stock positions are in
place against Goldman Sachs. They point to a strong likelihood of the GSax
stock falling to 80 or 85 imminently. The knock on GSax is that they have
lied about their subprime mortgage exposure, and soon will be forced to
come clean. The ‘GS’ stock shares plummeted from 160 in early September,
now to under 100. Justice is served. My guess is their executives will
profit privately from shorting their own stock. Even their 6-month
corporate paper must pay out 20% in bond yield in order to attract funds.
UNIVERSAL MONETARY INFLATION
OK, so finally the US Federal Reserve has opened the
monetary spigots to England, to Europe, to Switzerland, to Japan, and
later to Canada. Not only is the monetary spigot overflowing inside the
Untied States, it is overflowing from the US to the world. At least to the
world affected (infected) by US control.
The total central bank infusions
of liquidity (translated: phony money) is $180 billion in the last several
hours alone!! This huge amount is not enough to quiet the LIBOR or the 2-year USTreasury
swaps. Gold is rising versus the pound sterling, the euro, the yen, and
Canadian Dollar, aka the loonie. This trend is new and powerful. Central
bankers are growing desperate. Their measures to open numerous lending
facilities have not stopped lending constraints. Even commercial paper has
fallen by $52 billion last week.
Clownish anchors and analysts cannot seem to comprehend
what is going on with the central bankers, liquidity injections, market
tanking, USDollar decline, and gold & silver zoom. They wonder why the
USDollar would continue to fall after central bankers reacted responsibly.
BECAUSE THE USTREASURY IS DOOMED FROM INSOLVENT BANKS, EXTREME DEMANDS
FROM NATIONALIZATION, AND RECESSION, AGAINST A BACKDROP OF ENDLESS WAR FOR
PRIVATE SYNDICATE BENEFIT. It is obvious! Gold smells a systemic failure.
FOREIGN CREDITORS UNITE
A hidden initiative has been in progress for the last two
weeks. Foreigners are forced to supply credit for the Untied States.
Nations led by Russia, China, Arabs, and Japanese are meeting to form a
formal committee. They have a common purpose, to maintain and manage
massive US$-based debt securities in danger. Their continued credit
support is hampered by three magnificent factors, each a show stopper. 1)
The US banks are insolvent, 2) The Wall Street bankers export fraudulent
bonds, and 3) The USMilitary has acted with chronic aggression in
violation of established contracts, international treaties, and disrespect
for sovereign boundaries.
So they are working to organize
a committee of giant USTreasury Bond creditors. They wish to confront the
US debtor with a single voice. Regard this important step as a prelude to
possible default of the USTreasurys. It is one thing to be in trouble from insolvency. Add corruption from
export of fraud, and you have a bigger problem. Throw in military
aggression, complete with misreporting by a controlled press, and you have
a crisis in need of almost immediate remedy. My argument has been made for
four years, that foreign held US debt creates a threat to national
sovereignty. Since when are the Chinese our friends and allies? They are
business partners turned rivals, now adversaries. Since when are Russians
our friends and allies? They are energy and metals suppliers, betrayed by
treaty violations, now adversaries, even on the military front. Since when
are Arabs our friends and allies? For three decades an uneasy partnership
has been in existence, one that has turned into a blatant protection
racket. The endless concocted war on terrorism is seen by Arabs as a war
on Islam.
USTREASURYS AT RISK
Don’t be fooled by the drop in USTBond yields. That is a
symptom of collapse in my view. Yesterday, it was with great disillusion
yet satisfaction that my eyes and ears witnessed an interview by a
Standard & Poor analyst. He said there was no imminent danger of a
USTreasury debt security downgrade, but he did say that if pushed, the S&P
would put them on NEGATIVE WATCH. Interpret that to mean the USTreasurys
will soon be downgraded. Never is a denial of such importance made without
coming to fact and fruition later. Why else is the topic even discussed?
This line of thinking is basic when ripping the BS from US financial
propaganda. Notice the Credit Default Swap price for USTreasury Notes. The
price is around 0.24% for the AAA-rated USGovt debt. Without colossal
continued corrupt pressure against the ratings agencies by the US thugs in
financial orifices, the USGovt debt would have been downgraded immediately
with the launch of the Iraq and Afghan Wars, or years earlier. The Shock &
Awe should have been reflected in USTBond risk.
CHECK OUT THE 1-MONTH USTBILL YIELD
The US bankers have lost control badly.
Even ill-equipped US Fed Chairman
Bernanke admitted recently as having lost control. He spoke to economist David Hale at a Florida financial conference last
week. Bernanke said, “We have lost control. We cannot stabilize the
dollar. We cannot control commodity prices.” The age of central bank
control, ala Soviet Politburo, is coming to an end. GOLD RECOGNIZES IT.
Check out the 1-month USTreasury Bill yield. Incredibly, it closed under
0.1% yesterday. This ultra short-term bond yield testifies to lost control
and the advent of extreme conditions, the prelude to an historical storm.
Just what should the US Treasury maturity yield curve look like before a
default? Let me check, and get back to you. Ooops, no precedent! The TED
Spread (difference between US Treasury and EuroDollar yield) has jumped up,
another signal of banking turmoil. In recent days, the tight grip control
of certain commodities has been lost by the Evil Ones. Even Morgan Stanley
has been forced to close down its trading desks at the Platts Window,
where they trade crude oil. The US Congress is equally lost. Today, a quote
came from Senate Majority Leader Harry Reid. They are unlikely to pass new
legislation to overhaul financial regulations this year. He said, “No
one knows what to do. We are in new territory, this is a different game.
[Neither Federal Reserve Chairman Ben Bernanke nor Treasury Secretary
Henry Paulson] know what to do, but they are trying to come up with
ideas.” Gee! Maybe the chief architects of this grand failure have a
solution? They should be ignored then imprisoned. Perhaps they are seeking
final opportunities to steal, raid, and pilfer from the public till during
the final months of this Administration.
The 2-year US TBill yield has also
plummeted, but not as drastically. It is now far below the official US Fed
Fed Funds 2.0% rate. Some thought the USFed might cut rates in an act of
desperation this week, me included. My guess is for two reasons, why they
did not. 1) They did not want to project an impression of lost control,
not after the Fannie Mae & Freddie Mac bailout, not after the failed
Lehman Brothers deal, not after the shotgun wedding for Bank of America &
Merrill Lynch, not after the secret eloped marriage in the works for
JPMorgan & Washington Mutual, not after the merger of cadavers planned
between Morgan Stanley & Wachovia. And 2) the Bank For Intl Settlements in
Switzerland might have forbidden a US Fed rate cut. My maintained position
is firm, that the BIS ordered the US to fix it or flush it! Let’s watch to
see if the 2-year TBill yield continues lower, a signal of even more lost
control.
THE USELESS INFLATION VS DEFLATION
DEBATE
My greatest impatience is shown for those who attempt to
argue whether inflation or deflation is winning, and where we stand. Such
pursuits of chasing one’s tail serves to illuminate nothing and to waste
time. We have both, will continue to have both, as both intensify. The key
is for monetary inflation to enter the mainstream, which is underway
finally. One can benefit little from putting the unique crisis into
convenient cans for purposes of organization. This is not simple, and
people should not attempt to simplify the ongoing collapse of the Great
American Experiment in Counterfeit Monetary Systems. To be sure, we have
gone past a tipping point. The move to flood the monetary pools of phony
money beyond Wall Street is the big event. To be sure, the bankruptcies
and deep insolvent events are accelerating. To be sure, the desperation
for attempted mergers is palpable. To be sure, central bank activity with
lending, swapping, and even accepting stock equity as collateral is a sign
of total absence of any safeguard toward respect of moral hazard.
Looking for inflation vs deflation labels when the failure
and default of USTBonds and receivership occur TOTALLY MISSES WHAT IS
GOING ON. This is a death event for the US finances, US banking system,
USEconomy structure, and USTreasurys, all rolled together like a gigantic
vortex hurricane. Looking for (in) vs (de)flation in this environment is
like observing color schemes on walking dead as they attempt to merge at a
ceremony. They are of DEAD PARTIES ATTEMPTING TO SHARE COUNTER-PARTY RISK.
Looking for (in) vs (de)flation when dead partners are marrying is like
DECIDING WHETHER A HONEYMOON SHOULD TAKE PLACE IN THE CARIBBEAN OR FRENCH
COAST. They both go to the recycling cemetery instead. The place to be now
is in gold and silver, preferably silver since central banks own none and
because silver has strong industrial demand. Besides, a silver default of
sorts has been in effect for several months.
It is with pleasure to attend again the upcoming Cambridge
House conference in Toronto on October 4 and 5. Thankfully, my Frequent
Flyer miles were used to cover the airfare from Costa Rica, where the
rainy season is coming close to an end. POR FIN! Is that inflationary or
deflationary? With absolute certainty, one can say WHO CARES?
Buy gold, buy silver, do NOT use borrowed money or
leverage, and rest comfortably at night, since it cannot be taken from
you. Then patiently wait for gravity to work, for night to follow day, for
evil to be unmasked, for foreign creditors to arrive with hatchets.
In accordance with Title 17
U.S.C. Section 107, this material is distributed without profit to those who
have expressed a prior interest in receiving the included information for
research and educational purposes.
History of Banking Fraud:
The Coming Battle
By M. W. WALBERT
The Coming Battle
documents from Congressional records, newspaper reports and writings by
the founding fathers and others a chronology of events long forgotten that
shaped our fledgling nation from 1776 to 1899. Read about the manipulation
of our money and its supply, the intentional creation of recessions,
depressions and panics, manipulation of the stock markets, and the
demonetization of silver.
Secrets of the Federal Reserve
by Eustace Mullins
Eustace Mullins' carefully
researched and documented treatise picks up from Walbert's expose' and
brings it to the mid 1980's
The
