Archive for the ‘Economics’ Category
Posted by commendatori on May 25, 2011
Posted by commendatori on September 9, 2010
Posted by commendatori on May 18, 2010
Posted by commendatori on April 23, 2010
(CNN) — As the country was sinking into its worst financial crisis in more than 70 years, Security and Exchange Commission employees and contractors cruised porn sites and viewed sexually explicit pictures using government computers, according to an agency report obtained by CNN.
“During the past five years, the SEC OIG (Office of Inspector General) substantiated that 33 SEC employees and or contractors violated Commission rules and policies, as well as the government-wide Standards of Ethical Conduct, by viewing pornographic, sexually explicit or sexually suggestive images using government computer resources and official time,” said a summary of the investigation by the inspector general’s office.
More than half of the workers made between $99,000 and $223,000. All the cases took place over the past five years.
The inspector general’s report includes specific examples of misuse by employees.
A regional office staff accountant tried to access pornographic Web sites nearly 1,800 times, using her SEC laptop during a two-week period. She also had about 600 pornographic images saved on the hard drive of her laptop.
Separately, a senior attorney at SEC headquarters admitted to downloading pornography up to eight hours a day, according to the investigation.
“In fact, this attorney downloaded so much pornography to his government computer that he exhausted the available space on the computer hard drive and downloaded pornography to CDs or DVDs that he accumulated in boxes in his office,” the inspector general’s report said.
“It is nothing short of disturbing that high-ranking officials within the SEC were spending more time looking at pornography than taking action to help stave off the events that brought our nation’s economy to the brink of collapse,” said Rep. Darrell Issa. The Republican is a ranking member of the House Committee on Oversight and Government Reform.
“This stunning report should make everyone question the wisdom of moving forward with plans to give regulators like the SEC even more widespread authority,” he said. “Inexplicably, rather than exercise its existing regulatory enforcement authority, SEC officials were preoccupied with other distractions.”
The investigation came to light on the same day President Obama gave a speech in lower Manhattan, calling for reform in the finance industry.
On Capitol Hill, the Senate is working on a reform bill that would set up regulatory oversight of the financial industry’s practices with the goal of preventing another Wall Street meltdown like the one in 2008 that launched the U.S. recession.
The bill includes an “early warning” system intended to spot signs of crisis, as well as a $50 billion liquidation fund created with money from banks and other finance industry corporations to ensure an orderly transition in closing down failing entities. It’s approved by the Senate’s Banking and Agricultural committees.
The House passed its version of the bill in December.
FDIC Opens A Massive New Office Near Chicago Just To Handle The Coming Tidal Wave Of Midwest Bank Closings They Are Expecting
Posted by commendatori on February 19, 2010
Is the Midwest about to see a massive wave of bank closings? That is apparently what the FDIC is expecting. The FDIC is opening up a massive new satellite office in the Chicago area that will be dedicated to managing receiverships and liquidating assets from failed Midwest banks. This new facility will occupy 7 floors in an 11 floor building. The office space that the FDIC is leasing is well over 100,000 square feet and will employ approximately 500 temporary employees and contractors. This is a huge expenditure by the FDIC. So will there really be so many bank failures over the next couple of years in the Midwest that a 100,000 square foot facility is required to deal with it?
Apparently someone at the FDIC thinks so.
But this is not the first time the FDIC has done something like this.
The FDIC has already opened similar offices in Irvine, California and Jacksonville, Florida. Each time, the number of bank failures in those states increased dramatically after the FDIC opened those facilities.
So what is going to cause such a massive wave of bank failures that the FDIC will need hundreds of new employees just to deal with it?
Well, as we have reported previously, the financial powers in the U.S. are now moving to reduce the money supply, hoard cash and tighten credit. All of those things cause a slowdown in economic growth.
At the same time, a gigantic “second wave” of adjustable mortgages is scheduled to reset starting this year. This could push the U.S. economy into “part 2” of the housing crisis. Just check out the chart below….
In fact, one new study has been released that estimates that 5 million houses and condominiums on which mortgages are now delinquent will go through foreclosure and be put on the market within the next few years.
Another devastating housing crisis would absolutely destroy the vast majority of small to mid-size banks in the United States. In such a scenario, the FDIC would definitely be able to make use of the new facilities that they are opening up around the United States.
There are even rumors that the big bankers do not intend for most small and mid-size bankers to survive the coming crisis. There are whispers that the big bankers see all of this economic turmoil as a great opportunity to “consolidate” the banking industry.
So what should you and your family do to get prepared? Get out of debt and get rid of any unnecessary expenses. Try to start developing alternate streams of income and come up with a plan for what you will do if you lose your job.
The reality is that hard times are coming and a lot of people are going to lose their homes and their jobs. Don’t just blindly trust “the system” – now is the time to make sure that you and your family will be prepared even if a total economic collapse happens.
Posted in Economics | Tagged: 5 million bad mortgages, Consolidation round for banking industry, crisis would absolutely destroy the vast majority of small to mid-size banks in the United States., Expecting Midwest Bank Closings, FDIC Opens A Massive New Office Near Chicago, second wave of mortgages, U.S. are now moving to reduce the money supply hoard cash and tighten credit | Leave a Comment »
Posted by commendatori on February 16, 2010
The first of two Co-Chairmen of the CFR is Carla A. Hills, who served as Secretary of Housing and Urban Development under Gerald Ford (Knight of Malta, 33rd Degree Freemason, Vatican-controlled Bohemian Club) and as Trade Representative under George H. W. Bush (Knight of Malta, 33rd Degree Freemason, Vatican-controlled Bohemian Club, Vatican-controlled Skull & Bones, aka Papal Knights of Eulogia, CFR). She was an assistant to Attorney General Elliot Richardson, whose son, Henry S. Richardson, is a professor of philosophy at Jesuit Georgetown University. She is part of the Executive Committee of the Trilateral Commission, and one of the three chairmen of the Trilateral Commission (Peter Sutherland) was Jesuit-trained at Gonzaga College. She is an advisory board member of the Partnership for a Secure America (PSA), which is chaired by brother CFR members Warren B. Rudman and Lee H. Hamilton. Rudman was Jesuit-trained at Boston College Law School and Lee Hamilton has close ties to the Jesuit Order’s Knight of Malta-directed Central Intelligence Agency. Hills is also on the board of American International Group (AIG), which CFR corporate member is run by Edward Liddy (its CEO), who was trained at the Catholic University of America. Since 1993, Hills has been on the board of Chevron, along with brother CFR member Donald S. Rice, who was trained at the Roman Catholic University of Notre Dame, its President Emeritus being long time CFR member, Roman Priest Theodore Hesburgh, one of the Vatican’s foremost leaders of Pope Benedict XVI’s 14th Amendment American Empire.
The other Co-Chairman of the CFR is Jewish Freemason Robert E. Rubin, who served under President Bill Clinton as Treasury Secretary and headed Clinton’s National Economic Council. He was a Clinton crony. Rubin’s ties to Clinton are interesting, since Bill Clinton was Jesuit-trained at Georgetown University, where he was close to the Jesuit faculty (became Class President in his junior year). Rubin has served on the board of the Center for National Policy (CNP), which is led by it’s President, Roman Catholic Tim Roemer (another graduate of the Roman Catholic University of Notre Dame as is CFR member and past Secretary of State, the mulatto Condolezza Rice).
The Vice Chairman of the CFR is anothe r Jewish Freemason, Richard E. Salomon, a senior adviser to the Jesuit cohort Knight of Malta David Rockefeller. He is Chairman of the Advisory Board of Blackstone Group. Blackstone Group is run by brother CFR members Peter G. Peterson (a former head of the Pope’s Federal Reserve Bank in New York City) and Stephen A. Schwarzman. Peterson is married to Joan Cooney, who has received honorary degrees from two Jesuit institutions (Boston College and Georgetown University) and whose mother was Roman Catholic. Peterson, holding an honorary degree from Jesuit Georgetown University, co-founded the Concord Coalition along with Warren Rudman, who was Jesuit-trained at Boston College. Jesuit-trained Peterson was also a crony of Jesuit-trained Bill Clinton. As for Stephen Schwarzman, he was a member of Skull & Bones (which is really the Vatican’s Papal Knights of Eulogia) and he celebrated his 60th birthday on February 13, 2007. One of his friends who attended the party was Knight of Malta Edward Cardinal Egan. So, we can see that both of the men running the Blackstone Group, which Saloman had close ties to, are Jesuit coadjutors.
The President of the CFR is another Freemasonic papal court Jew, Richard Haass, a member of the Jesuit/Knight of Malta-controlled Bilderberg Group (Founded by Jesuit priest Joseph Retinger, and Knight of Malta Prince Bernhard of the Netherlands). During his time in the U.S. State Department, Haass was a close adviser to CFR-member and mulatto Colin Powell, a 33rd Degree Freemason (admitted on Masonic websites) who addressed the Roman Catholic Marymount University in 2006. Haass was also the U.S. Special Envoy for Northern Ireland, which is 40% Roman Catholic as a country. Haass also served as a special assistant to George H. W. Bush, the Knight of Malta, member of the Vatican-controlled Bohemian Club, High-level Freemason, and Skull & Bones Papal Knight of Eulogia. Haass is also a Rhodes Scholar (Rhodes Scholarships have been given out to Jesuit grads, in many cases). As is the typical Jesuit modus operandi: the Freemasonic Jews are placed in the foreground, while the White Gentile Jesuits and Papal Knights direct all policies from the background!
The New York Jesuit of supreme power overseeing Timothy Cardinal Dolan’s Council on Foreign Relations is Jesuit Priest Joseph A. O’Hare. A past president of Jesuit Fordham University in the Bronx, Jesuit O’Hare is a PRESIDER of the CFR as is Knight of Malta David Rockefeller—the Black Pope’s most influential White Gentile American Cartel Capitalist and Central Banker. O’Hare was also responsible for putting papal “Court Jew” and CFR-member Michael R. Bloomberg into the mayor’s office of New York City. Yes, Freemasonic Jew Bloomberg is a “made man,” made by the Jesuit Power ruling New York. That is why Bloomberg fawned and groveled at the feet of sodomite Pope Benedict XVI when that man of sin arrived in America to converse with “Skull and Bonesman” President George W. Bush, the Caesar/Commander-in-Chief of Rome’s “Holy Roman” 14th Amendment, Cartel-Corporate Fascist, Socialist-Communist, Masonic American Empire.
Other members connected to the Jesuit Papacy are as follows:
CFR Director Peter Ackerman is Chairman of the Board of Trustees at
Freedom House, which is run by William H. Taft IV, a crony of Gerald
Ford, a SMOM Papal Knight and 33rd Degree Freemason. Taft went to
school with John Kerry, a Jesuit-trained 33rd Degree Freemason and
Skull & Bones Papal Knight of Eulogia.
CFR Director Fouad Ajami is a member of the Jesuit-controlled
Bilderberg Group (Founded by Jesuit priest Joseph Retinger, S.J. and
SMOM Papal Knight Prince Bernhard of the Netherlands) and a former
adviser to Condoleezza Rice, who graduated from the Roman Catholic
University of Notre Dame (as well as the CIA/MI6-controlled University
of Denver). Ajami is also a friend of Masonic Zionist Paul Wolfowitz.
CFR Director Madeline Albright is a professor at the Jesuit Georgetown
University and another papal court Jew.
CFR Director Charlene Barshefsky was trained at the Catholic
University of America. She was nominated by Jesuit-trained Bill
Clinton to serve as a Deputy US Trade Representative, along with
Richard W. Fisher, the head of the Jesuit Federal Reserve Bank of
Dallas. Fisher joined a bank run by the Harriman Brothers (Both
Skull&Bones Papal Knights of Eulogia) and worked under Robert Roosa,
who had links to the Jesuit cohorts Rockefeller family and worked for
the Jesuit Federal Reserve Bank of New York.
CFR Director Henry Bienen is the President of Northwestern University,
which has ties to the Ford Motor Company. The Ford Motor Company is
run by the Ford family (Jesuit cohorts who supported the
Vatican-controlled Nazi Party). The President and CEO of the Ford
Motor Company is Alan Mulally, who is Roman Catholic.
CFR Director Alan Blinder was a crony of Jesuit-trained Freemason Bill
Clinton and an advisor to Jesuit-trained John Kerry (33rd Degree
Freemason, Skull & Bones Papal Knight of Eulogia). Blinder was Vice
Chairman of the Board of Governors of the Jesuit Federal Reserve under
Chairman Alan Greenspan (SMOM).
CFR Director Stephen W. Bosworth was given the post of special
representative by Hillary Clinton, the wife of Jesuit-trained Bill
Clinton, and a part of the Jesuit-controlled Bilderberg Group (Joseph
Retinger, SJ, Prince Bernhard SMOM). Bosworth is an adviser of the
Jesuit-trained President of the Philippines (Gloria Arroyo) and is a
member of the board of International Textile Group, which is run by
Wilbur Ross, who was Jesuit-trained at Xavier High School, had ties to
the Rothschild Family (Guardians of the Papal Treasury).
CFR Director Tom Brokaw has honorary degrees from the Jesuit Boston
College, the Jesuit Fairfield University, and the Jesuit Fordham
University. He was a longtime friend of Tim Russert, the
Jesuit-trained Freemason who was part of a Jesuit frat club at John
Carroll University and had a son who was Jesuit-trained at Boston
CFR Director Sylvia Burwell was a crony of Bill Clinton (his deputy
Chief of Staff 1997-1998), who was Jesuit-trained at Georgetown
University, where he served once as class president and was close to
the Jesuit faculty.
CFR Director Frank Caufield co-founded Kleiner Perkins Caufield &
Byers along with Brooks Byers, a member of the Vatican-controlled
Bohemian Club. He is on the board of Caremark, which is run by Thomas
M. Ryan, who is a director of the Bank of America, which was founded
by a Knight of Malta and is 51% owned by the Jesuits, as reported by
Der Spiegel in 1958.
CFR Director Kenneth Duberstein was a crony of Ronald Reagan, the
Knight of Malta and happy member of the Vatican-controlled Bohemian
Club. Duberstein was the Vice President of Timmons & Company, which
was founded and run by William Timmons, a Jesuit-trained (Georgetown
University) 33rd Degree Freemason who was influenced by Jesuit-trained
(Georgetown University) Thomas Boggs. One of the clients of
Duberstein’s lobbying firm is American Council of Life Insurers
(ACLI), which is run by Frank Keating, a Jesuit-trained Knight of
Malta. Duberstein is a director of Conoco Phillips, which is run by
James J. Mulva, who is funding a library that’s being built at the
Roman Catholic St. Norbert College in Wisconsin.
CFR Director Richard N. Foster is a director of the TCW group, which
is owned by a Rothschild-linked company in France. The Rothschilds are
Jesuit cohorts and “guardians of the Papal treasury”.
CFR Director Stephen Friedman worked for Goldman Sachs, which is run
by Lloyd Blankfein, an associate of the Rockefeller family (Jesuit
cohorts). From 1998-2002, he served as a senior principal of Marsh &
McLennan, which is run by Jeffrey Greenberg, who was Jesuit-trained at
CFR Director Ann Fudge has close ties to General Electric, which is
run by Jeffrey R. Immelt, who has addressed the Roman Catholic
University of Notre Dame.
CFR Director Maurice Greenberg, a friend of Henry Kissinger (Jesuit
coadjutor) who served on the Jesuit Georgetown University’s Center for
Strategic and International Studies. Greenberg’s son, Jeffrey, was
Jesuit-trained at Georgetown University. Greenberg was also a crony of
Ronald Reagan, the Knight of Malta and happy member of the
Vatican-controlled Bohemian Club. For one year, Greenberg was an
adviser of the Chief Executive of Hong Kong, who is a Jesuit-trained
Roman Catholic named Donald Tsang (educated at an all-male Jesuit
school called Wah Yan College). Greenberg is an associate of the
Rockefeller family (Jesuit cohorts) and is a past Chairman, Deputy
Chairman, and Director of the Jesuits’ Federal Reserve Bank of New
CFR Director J. Tomilson Hill is the Vice Chairman of the Blackstone
Group, which we already saw is controlled by two Jesuit coadjutors.
CFR Director Richard Holbrooke is a member of the Jesuit-controlled
Bilderberg Group (Joseph Retinger, SJ, Prince Bernhard SMOM). He was
an advisor to Jesuit-trained 33rd Degree Freemason and Skull & Bones
Papal Knight of Eulogia John Kerry. He was an advisor to Hillary
Clinton, a member of the Jesuit/Knight of Malta-controlled Bilderberg
Group and the wife of Jesuit-trained Bill Clinton.
CFR Director Alberto Ibarguen is on the board of Pepsico, which is run
by Indra K. Nooyi, a member of the Jesuit-controlled Bilderberg Group
and a board member of the Jesuits’ Federal Reserve Bank of New York.
CFR Director Shirley Jackson is a trustee of the Jesuit Georgetown
CFR Director Henry Kravis is the son of Raymond Kravis, who had been a
close business partner of Joseph Kennedy, a most devout Roman Catholic
Knight of Malta.
CFR Director Jami Miscik was Deputy Director of the Vatican-controlled
CIA. She served as an Executive Assistant to Jesuit-trained Knight of
Malta and CFR member George J. Tenet.
CFR Director Joseph Nye was a crony of Bill Clinton, who was
Jesuit-trained at Georgetown University, where he had close ties to
the Jesuit faculty and was once class president. Nye served on the
board of the Jesuit Georgetown University’s Center for Strategic and
CFR Director Ronald Olson clerked for Chief Judge David L. Bazelon,
who had a close friendship with William J. Brennan, a Georgetown
CFR Director James Owens is a director of the Peter G. Peterson
Institute, which is run by Peter G. Peterson, who is married to a
woman who has honorary degrees from several Jesuit universities.
Peterson also co-founded the Concord Coalition with Warren Rudman, who
was Jesuit-trained at Boston College.
CFR Director Colin Powell is a 33rd Degree Freemason who addressed the
Roman Catholic Marymount University in 2006.
CFR Director David Rubenstein is a co-founder of the Carlyle Group,
which has been controlled by Knights of Malta such as Frank Carlucci
and George H.W Bush.
CFR Director George E. Rupp is the dean of Harvard Divinity School
a favorite non-Catholic University for Jesuit Coadjutors.
CFR Director Anne-Marie Slaughter is a crony of Hillary Clinton, who
is a member of the Jesuit-controlled Bilderberg Group and the wife of
Jesuit puppet Bill Clinton (Jesuit-trained at Georgetown University).
CFR Director Joan E. Spero is a crony of Bill Clinton, the Jesuit
coadjutor who was trained at Georgetown University, where he was class
President and very tight with the Jesuit faculty. (A lot of these CFR
spooks have ties to the Jesuit coadjutor Clinton family, huh?)
CFR Director Vin Weber co-chaired a task force with Madeline Albright,
a professor at the Jesuit Georgetown University. Weber is part of
PNAC, which is controlled by Jewish Jesuit Coadjutor William Kristol,
the former roommate of 4th Degree Knight of Columbus Alan Keyes.
CFR Director Christine Todd Whitman is an associate of the Rockefeller
Family (Jesuit cohorts).
CFR Director Fareed Zakaria is an editor of Newsweek, which is owned
by the Washington Post Company, which is run by Donald Graham, a
member of the Jesuit-controlled Bilderberg Group.
Posted by commendatori on February 12, 2010
Posted by commendatori on December 9, 2009
Mystery Babylon is the title of a series of shortwave radio broadcasts made by former naval intelligence officer and author Milton William Cooper, which originally aired on his show The Hour of the Time, on WWCR in 1993-94. The title refers to mystery religions, and the Biblical figure the Whore of Babylon. The series is the culmination of over 30 years of research into the history of the Mystery Schools, Freemasonry, and the New World Order. The series consists of 42 audio tapes and 1 video tape.
Over the course of the series, Cooper gives an extensive background of the occult history and origins of secret societies throughout history and up to the present day. Starting with the dawn of man, Cooper brings the listener through the Egyptian mystery religion of Isis and Osiris and on to the beginnings of the secret society networks from the Assassins to the Freemasons and on to the Nazis, and explains how their belief in ancient wisdom and rituals is preserved and practiced by various social, religious, and political groups, such as the Freemasons, the Skull and Bones, and Rosicruscians, to this day.
Posted by commendatori on November 15, 2009
$2.5 Trillion – That’s the size of the global oil scam.
It’s a number so large that, to put it in perspective, we will now begin measuring the damage done to the global economy in “Madoff Units” ($50Bn rip-offs). That’s right – $2.5Tn is 50 TIMES the amount of money that Bernie Madoff scammed from investors in his lifetime, yet it is also LESS than the MONTHLY EXCESS price the global population is being manipulated into paying for a barrel of oil.
Where is the outrage? Where are the investigations?
Goldman Sachs (GS), Morgan Stanley (MS), BP (BP), Total (TOT), Shell (RDS.A), Deutsche Bank (DB) and Societe Generale (SCGLY.PK) founded the Intercontinental Exchange (ICE) in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate “dark pool” trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.
A Congressional investigation into energy trading in 2003 discovered that ICE was being used to facilitate “round-trip” trades. ” Round-trip” trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price. No commodity ever changes hands. But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company. This is nothing more than a massive fraud, pure and simple.
“Traders of the the ICE core membership (GS, MS, BP, DB, RDS.A, GLE & TOT) wouldn’t really have to put much money at risk by their standards in order to move or support the global market price via the BFOE market. Indeed the evolution of the Brent market has been a response to declining production and the fact that traders could not resist manipulating the market by buying up contracts and “squeezing” those who had sold oil they did not have. The fewer cargoes produced, the easier the underlying market is to manipulate.” – Chris Cook, Former Director of the International Petroleum Exchange, which was bought by ICE.
How widespread are “round-trip’‘ trades? The Congressional Research Service looked at trading patterns in the energy sector and this is what they reported: This pattern of trading suggests a market environment in which a significant volume of fictitious trading could have taken place. Yet since most of the trading is unregulated by the Government, we have only a slim idea of the illusion being perpetrated in the energy sector.
DMS Energy, when investigated by Congress, admitted that 80 percent of its trades in 2001 were “round-trip” trades. That means 80 percent of all of their trades that year were bogus trades where no commodity changed hands, and yet the balance sheets reflect added revenue. Remember, these trades are sham deals where nothing was exchanged. Duke Energy (DUK) disclosed that $1.1 billion worth of trades were “round-trip” since 1999. Roughly two-thirds of these were done on the InterContinental Exchange; that is, the online, nonregulated, nonaudited, nonoversight for manipulation and fraud entity run by banks in this country. That means thousands of subscribers would see false pricing. Under investigation, a lawyer for JPMorgan Chase (JPM) admitted the bank engineered a series of “round-trip” trades with Enron.
You can chart the damage done by Goldman Sachs and their gang of thieves by looking at commodity pricing pre and post ICE. Before ICE, commodities followed a more or less normal growth path that matched global GDP and was always limited in price appreciation by the fact that, ultimately, someone had to take delivery of a physical commodity at a set price.
ICE threw that concept out the window and turned commodity trading into a speculative casino game where pricing was notional and contracts could be sold by people who never produced a thing, to people who didn’t need the things that were not produced. And in just 5 years after commencing operations, Goldman Sachs and their partners managed to TRIPLE the price of commodities.
Goldman Sachs Commodity Index funds accounted for $60Bn out of $100Bn of all formula-managed funds in 2007 and investors in the GSCI lost 15% in 2006 while Goldman had a record year. John Dizard, of the Financial Times, calls this process “date rape” by Goldman Sachs as the funds index rolls cost investors 150 basis points of return annually ($9Bn on the Goldman funds) but GS, under the prospectus, is able to “manage our corresponding position,” which means that it has to deliver a price at the end of the roll period. If Goldman can cover that obligation at a better price, they will, and GS pockets the difference. This is why we see such wild moves in the days before rollover, there are Billions riding on GS hitting their target every month…
It is not surprising that a commodity scam would be the cornerstone of Goldman Sachs’s strategy. CEO Lloyd Blankfein rose to the top through Goldman’s commodity trading arm J Aron, starting his career at J Aron before Goldman Sachs bought them over 25 years ago. With his colleague Gary Cohn, Blankfein oversaw the key energy trading portfolio. According to Chris Cook: “It appears clear that BP and Goldman Sachs have been working collaboratively – at least at a strategic level – for maybe 15 years now. Their trading strategy has evolved over time as the global market has developed and become ever more financialised. Moreover, they have been well placed to steer the development of the key global energy market trading platform, and the legal and regulatory framework within which it operates.” According to Cook:
It appears to me that what has been occurring in the oil market may have been that – through the intermediation of the likes of J Aron in the Brent complex – long term funds have been lending money to producers – effectively interest-free – and in return the producers have been lending oil to the funds. This works well for as long as funds flow into the market, or do not withdraw in quantity, but once funds withdraw money from the market, there is a sudden collapse in price.
A combination of market hype, the opacity of the Brent Complex and the relatively small scale of trading of the benchmark BFOE crude oil contract enabled the long run up in prices, and several observers believe that the dramatic spike to $147.00 per barrel was the specific outcome of the collapse of SemGroup, which that company’s management subsequently blamed mainly on Goldman Sachs.
Mike Riess issued a study of “Modern Market Manipulation” in which he describes how GS, MS, DB et al have systematically created an environment that rewards those who manipulate the system, robbing the poor to send the money up they company ladder in exchange for record bonus payouts, which (by design) are the majority of their traders’ salaries:
Before the ‘80’s, there were just us traders. “Rogue” traders arrived on the scene with the large institutional participants, both private and public. Today’s companies and government marketing boards are large enough for senior management to distance itself from controversy, including market manipulation.
In a competitive, amoral environment, middle managers in these mega-organizations have the authority to hijack an institution’s reputation and the financial clout to manipulate the market—and they do. As long as they succeed, they enjoy promotions and perks and, sometimes, the fruits of embezzlement. If the manipulation unravels, the company denies any knowledge and hangs the rogue out to dry. We’ve seen this over and over again, most recently with D’Avila and Codelco, Hamanaka and Sumitomo, Leeson and Barings and Tsuda and Daiwa Bank.
The CFTC’s definition of manipulation is:
- A planned operation that causes or maintains an artificial price
- Unusually large purchases or sales in a short period of time in order to distort prices
- Putting out false information in order to distort prices.
In mid-2008 it was estimated that some $260 billion was invested in the Brent energy markets on the ICE while the value of the oil actually coming out of the North Sea each month, at maybe $4 to $5 billion at most. NYMEX trading follows a similar path with 258,000, 1,000-barrel contracts open for December delivery (258M barrels), which were traded 327,000 times yesterday alone yet, at the end of the period, less than 40M barrels of oil will actually be delivered as that is the total capacity at Cushing, Okla. – where NYMEX contract deliveries are settled. Every single one of those traders know it is not even possible for 80% of the contracts they are trading to be fulfilled – it’s a joke, but the joke is on YOU!
Over the course of an average month at the NYMEX, 5 BILLION barrels of oil will be traded, with a fee being collected on every single transaction which is ultimately passed down to US consumers, yet less than 40M barrels will actually be delivered. That is just 8 tenths of 1 percent of actual demand for the product that is being traded – 99.2% of the oil transaction fees being paid by the American people do nothing more than create fees for the traders and record profits and bonuses for the trading firms!
Index Speculators have now stockpiled, via the futures market, the equivalent of 1.1 billion barrels of petroleum, effectively adding eight times as much oil to their own stockpile as the United States has added to the Strategic Petroleum Reserve over the last five years. Today, in many commodities futures markets, they are the single largest force. The huge growth in their demand has gone virtually undetected by classically trained economists who almost never analyze demand in futures markets. As money pours into the markets, two things happen concurrently: The markets expand and prices rise. One particularly troubling aspect of Index Speculator demand is that it actually increases the more prices increase. This explains the accelerating rate at which commodity futures prices (and actual commodity prices) are increasing.
Before ICE, the average American family spent 7% of their income on food and fuel. Last year, that number topped 20%. That’s 13% of the incomes of every man, woman and child in the United States of America, over $1Tn EVERY SINGLE YEAR, stolen through market manipulation. On a global scale, that number is over $4Tn per year – 80 Madoffs! Why is there no outrage, why are there no investigations? Well, the answer is the same – $4Tn per year buys you a lot of political clout, it pays to have politicians all over the world look the other way while GS and their merry men rob from the poor and give to the rich on such a vast scale that it’s hard to grasp the damage they have done and continue to do to the global economy.
CIBC Chief Economist Jeff Rubin issued a report last year that blames the current recession on high oil prices, saying defaulting mortgages are only a symptom. According to Rubin, these higher oil prices caused Japan and the Eurozone to enter into a recession even before the most recent financial problems hit. Higher oil prices started four of the last five world recessions; we shouldn’t be too surprised if they started this one also:
Oil shocks create global recessions by transferring billions of dollars of income from economies where consumers spend every cent they have, and then some, to economies that sport the highest savings rates in the world. While those petro-dollars may get recycled back to Wall Street by sovereign wealth fund investments, they don’t all get recycled back into world demand. The leakage, as income is transferred to countries with savings rates as high as 50%, is what makes this income transfer far from demand neutral.
There is NO shortage of oil. OPEC alone has 6-7 Million barrels a day of spare capacity, more than the total disruption of any single country and any two countries other than Saudi Arabia could offset. Additionaly, ICE partners Total and JPM are part of the cartel that is totally skewing the global demand picture by storing 125M barrels of oil in offshore tankers. That’s 15 days of US imports that have been “ordered” but never delivered so they show up as an extra 1Mbd of global demand, even though nobody actually wants them. Land-based storage is also bursting at the seams, with global supplies up to 61 days of total consumption (84Mbd) up from 52 days last year.
That’s 5 BILLION barrels of oil already out of the ground, in barrels and ready to go AND THEY KEEP MAKING 86M MORE EVERY DAY!!! Where is the shortage? Mainly, it is media hype pushed by “analysts” at the very firms that profit the most from high oil prices. Goldman Sachs issues bullish opinions on oil and builds large positions in oil, while it is the cartel’s job to hide oil in offshore tankers, and then sell forward all the oil, with futures contracts, locking in the high price. Of course they have their media hounds as well, most notably the Drudge Report. As noted by Goldmansachsrules:
Type in the word “OIL” inside the “Drudge Report” search engine. It returns 1,965 headlines with the word “OIL.” Over the last couple years, The Drudge Report has ran 1,965 headlines with the word “OIL.” Most of these articles were hosted by the worthless organizations of Yahoo, Breibart, APNews, and Reuters. The Drudge Report just creates the headline, and links it the article hosted by who ever is doing the “hyping.”
Search on the word “credit crisis” and you only get 12 archived headlines. The word “bailout” yields only 268. The word “bank” returns only 568. So you have the Drudge Report hyping the oil market, because they bring it up almost 2,000 times. Unlike the “credit crisis” or “Wall Street Bailout” that actual did happen, the oil market and what did/didn’t happen between Israel/Iran is plugged 10 times more!
Of all the 1,965 articles that the Drudge Report ran with the word “OIL” in the title, most were hyping the oil market. The most notorious cases, a few times a week, were hosted by Yahoo, Breibart, and AP News. Most of these articles were plugged with the same paragraph that stated if “Israel were to attack Iran, Iran would retaliate by taking over the straits of Hormuz, the largest pathway for oil and we all know what that would do to the price of oil.
It truly takes a global village of manipulators and their lackeys to pull off a con on the scale of oil but it’s also the most profitable scam ever perpetrated on the people of this planet, as they take control of a vital resource and then create artificial shortages and drive speculative demand in order to charge you an extra dollar per gallon of gas. You don’t complain because it’s “only” $15-$20 every time you fill up your tank, but that’s what they count on and that’s where you’re wrong – it’s $20 from you and $20 from EVERY SINGLE ONE of your customers once or twice a week and $20 more your employees need just to get to work. It’s money that could be going into your business instead of a new gold bathtub for a Saudi Prince or a Goldman trader.
Global drivers consume 1.7Bn gallons of gas every single day, that $1 is $50Bn a month, a Madoff per month that is being taken away from YOU and YOUR business and the non-energy/financial businesses you invest in. Of course we can give up and invest in those sectors (we do) but that doesn’t do much for the global economy and, even as you sit here now, not doing anything, those oil profits have been plowed into the copper and gold markets and now the same Goldman energy cartel is bidding to take over you clean air (through Carbon Credit trading) and your clean water.
Maybe when they are charging you $80 a gallon for water and ten cents a breath you’ll want to do something about it. I think I’ll start right now and you can too! Here are the Email addresses and Fax numbers for all of your Senators, Congresspeople and Governors. Send this article to them and let them know you’d like to see an investigation. Take a few minutes of your time to save a few bucks on your next gallon of water!
Posted by commendatori on November 11, 2009
Posted by commendatori on November 3, 2009
Stimulus spending is one reason. Tax revenues also drop during a recession.
To put some context on a new estimate that puts this year’s federal deficit at $1.8 trillion, consider this: That amount had never been spent by the federal government in a single year until 2000, let alone borrowed.
That’s right. As the decade began, the US government spent $1.8 trillion in a year for the first time. Now it’s poised to spend that much in excess of its tax revenues.
The Treasury released the latest figures Wednesday, showing spending of about $3 trillion in the past 10 months, and revenues of only $1.74 trillion.
With two months to go in the fiscal calendar, the Obama administration is projecting that the imbalance will end up totaling $1.84 trillion, more than four times last year’s record-high. The monthly deficit for July, also reported this week, came in a bit above what economists had expected.
The record red ink stems from familiar sources. The government is spending prodigiously on stimulus, to lift the economy out of recession, and on rescuing the financial system from a credit crisis. The cost of wars in Iraq and Afghanistan add to the tab.
Meanwhile, in recessions tax revenues tend to fall, and this one is no exception. Government receipts were down about 6 percent in July from a year before.
The good news is that many of these forces are cyclical or temporary. The massive stimulus won’t last forever, and revenues from taxes should rise again when the economy grows healthier.
“We expect this year’s deficit will be … 10.5 percent of GDP [gross domestic product] and next year’s to equal 8.3 percent of GDP as the spending spree and revenue weakness persist into the first year of the recovery,” Merrill Lynch economist Drew Matus wrote in a report last week. The report predicted shrinking deficits after that, but warned that the “the long-term outlook remains poor.”
That’s the bad news, many economists agree. The fiscal position will remain difficult, since baby boomers are already starting to retire in a wave that will grow more costly in coming years.
The soaring deficits have raised worries among foreign owners of US Treasury securities including the Chinese, the largest holder of such debt. President Barack Obama’s economic team sought to reassure the Chinese during high-level talks last month that the administration is committed to reducing the deficits once the current economic and financial crises have been resolved.
The concern, however, is that rates could begin rising if foreigners lose confidence in the government’s ability to manage its debt burden.
In bond markets, prices fell Wednesday after a fairly weak auction of $23 billion in 10-year Treasury notes. The Treasury Department is auctioning a record $75 billion in debt this week.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.75 percent from 3.70 percent ahead of the auction results and 3.67 percent late Tuesday.
The total public debt now stands at $11.6 trillion. Interest payments on the debt cost $452 billion last year, the largest federal spending category after Medicare-Medicaid, Social Security, and national defense.
Material from the Associated Press was used in this report
Posted by commendatori on September 24, 2009
This is the real solution to any crisis, interest free money. No bailout, no new economic system, just interest free notes.
by Cedric X
From The Final Call, Vol. 15, No.6, On January 17, 1996
On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.
With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the gevernment the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.
After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the nearly $6 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level. Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve’s control over the creation of money. Mr. Kennedy challenged the government of money by challenging the two most successful vehicles that have ever been used to drive up debt – war and the creation of money by a privately-owned central bank. His efforts to have all troops out of Vietnam by 1965 and Executive Order 11110 would have severely cut into the profits and control of the New York banking establishment. As America’s debt reaches unbearable levels and a conflict emerges in Bosnia that will further increase America’s debt, one is force to ask, will President Clinton have the courage to consider utilizing Executive Order 11110 and, ifso, is he willing to pay the ultimate price for doing so?
Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO. 10289
AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY
By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:
Section 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended-
By adding at the end of paragraph 1 thereof the following subparagraph (j):
(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption
Posted in Economics, Real Info | Tagged: Creation of money, Credit monopolies, DEPARTMENT OF THE TREASURY, Executive Order 11110, Federal Reserve Act, James J. Saxon, JFK, Money Creation, President John F Kennedy, Silver bullion, Silver certificates, The Federal Reserve | Leave a Comment »
Posted by commendatori on August 9, 2009
There are a few patents out there directly related to mind control… like these ones:
– Patent # 3,951,134
– Patent # 4,858,612
– Patent # 4,877,027
– Patent # 5,123,899
– Patent # 5,159,703
– Patent # 5,356,368
– Patent # 6,011,991
– Patent # 6,017,302
Sometimes its best not to look up patents directly but find the obsessive compulsive kooks who have already done the searches…
http://www.mindcontrolforums.com/p/patentsindex.htm – for example
However its sometimes interesting to see what patents are referenced in the patents, and which ones reference the one your looking at. This allows you to actually find out some interesting related patents as well….
Posted by commendatori on July 25, 2009
Posted by commendatori on June 29, 2009
Bloomberg files this report on the recent rise of insider selling, company executives dumping the most shares since mid-2007, shortly before the broad stock market’s peak.
Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago.
Insiders of Standard & Poor’s 500 Index companies were net sellers for 14 straight weeks as the gauge rose 36 percent, data compiled by InsiderScore.com show.
Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.Surely this can’t be a good development for your typical retail investor, many of whom have just recently convinced themselves that it’s OK to put some money back into stocks again.
The good news is that the 2007 stock market peak didn’t occur until some four months after insider selling peaked in June. Here we are, almost exactly two years later, and it appears that the timing could be again aligned for a fall season that does not treat equity markets kindly.
Why is insider selling so important? It’s quite simple…
“If insiders are selling into the rally, that shows they don’t expect their business to be able to support current stock- price levels,” said Joseph Keating, the chief investment officer of Raleigh, North Carolina-based RBC Bank, the unit of Royal Bank of Canada that oversees $33 billion in client assets. “They’re taking advantage of this bounce and selling into it.”
“They’re looking to take some money off the table because they think the rally will come to an end,” said Ben Silverman, the Seattle-based research director at InsiderScore. “It’s the most bearish we’ve seen insiders, on a whole, in two years.”
The last time there were more U.S. corporations with executives reducing their holdings than adding to them was during the week ended June 19, 2007, the data show. The next month, two Bear Stearns Cos. hedge funds filed for bankruptcy protection as securities linked to subprime mortgages fell apart, helping trigger almost $1.5 trillion in losses and writedowns at the world’s biggest financial companies and the 57 percent drop in the S&P 500 from Oct. 9, 2007, to March 9, 2009.
There’s much more information in the report about stock sales at individual companies, but, perhaps the most important detail is that insider selling reached an all-time record back in the first quarter of 2000, as the 18-year bull market in stocks reached its climax, the official demarcation point between “dotcom” and “dotbomb”.
Posted by commendatori on June 23, 2009
Alexander Emerick Jones is an American paleoconservativeradio host and documentary filmmaker. His nationally syndicated talk show (titled The Alex Jones Show) airs via the Genesis Communication Network on over 60 AM, FM, and Short Wave radio stations across the United States, as well as having a large internet based audience. Alex Jones has been referred to as a “conspiracy theorist” by mainstream media outlets, while Russia Today has referred to him as an investigative journalist. Alex Jones was born February 11, 1974.
The elite put Alex Jones in place to be the leader and symbol of the alternative media.
Alex Jones repeatedly attacks the idea that TV Fakery was used on 9/11. It has become obvious to serious investigators of 9-11 that no airplanes were used in the attack. Is Alex Jones naive to catch on, or is he deliberately covering up evidence that links the mainstream media to 9-11?
Indeed, Alex Jones would appear to have a clear motive for wanting to cover up the media’s role in 9-11. His network, GCN Live, has close ties to ABC News. In fact, ABC NY provides satellite broadcasting services for The Alex Jones Show. Some say that this is only a business deal, and is not very important… but think about it — why would part of the controlled media provide satellites to a network that was dangerous to them?
This is easily explained by considering that Alex Jones is not really on the side of real truth. His job is to distract us from following the most important people in the world… the Jesuits.
ABC is owned by Walt Disney, which has had a Jesuit priest on it’s board of directors since 1996. This brings us to the question of why Jones is seemingly reluctant to talk about the role of the Society of Jesus in world corruption.
When Alex Jones released his famous “Dark Secrets: Inside Bohemian Grove” film, he gave us detailed background information about the Grove, yet, for some reason he left out the fact that Roman Catholic masses take place at the Grove, and that the Bohemian Club’s patron saint is John of Nepomuk, a Roman Catholic figure who symbolizes the Seal of Confession. The story of John of Nepomuk was developed by Bohuslav Balbín, a Jesuit.
Alex Alex Jones’ suspicious connections do not end there. He has close ties with the John Birch Society. His father was a member of JBS and he had it’s President, John F. McManus, on his show. McManus was trained by Jesuits at Holy Cross College and was involved in US Air Force Weapons Development.
Videos about Alex Jones:
Additional Alex Jones’ Sources:
More on alex Jones
Posted by commendatori on June 21, 2009
Posted by commendatori on June 17, 2009
We all know I have been warning of this bear market rally. I know it has been a rough ride, but at the end of the day, a dollar is a dollar and a loss is a loss. I do hope nobody is surprised. This may not even be the end of the bear market rally, but the internals have been looking weak for the last week or two, and we all know how I felt about the fundamentals and the macro outlook.
ECB warning prompts shift from equities. Risk appetite suffered a sharp deterioration on Monday as fresh uncertainty about the global economy and the financial system prompted investors to shift away from equities, commodities and emerging market assets into the perceived safety of government bonds and the dollar.
ECB says risks to sector intensifying.
Eurozone banks face additional losses of more than $283bn this year and next as continental Europe’s severe recession intensifies strains on its financial sector, the European Central Bank has warned.
The fates of the eurozone economy and its banks have become increasingly interlinked, the ECB reported on Monday in its latest “financial stability review” with banks losses expected to be focused on their loan exposures. Risks to the stability of the financial sector remained high, it said, while “uncertainty prevails” over the shock-absorbing capacity of the banking system.
And from that bastion of unbiased reporting, CNBC: Asian Markets Slide, Optimism May Be Misplaced
No need to worry, we still have reasons to be bullish in the media. Check this out:
From WSJ’s Market Beat:
Rochdale Research analyst Richard Bove’s weekend note on Bank of America got a bit of attention today, largely for the section in which he writes “Bank of America is now experiencing horrific loan losses. It may have loan loss provisions of $46 billion this year.”
As Jon Ogg over at 24/7 Wall Street notes, the core call of the note is surprisingly positive. Bove upped his price target on Bank of America shares to $19 from $14, citing growing confidence in management. Bove also kept his “Buy” rating on the stock and wrote that Bank of America’s purchase of Merrill Lynch — and even Countrywide — will help it offset the losses it’s suffering on loans.
Concerning those losses, Bove has a couple interesting observations as to why Bank of America’s loan losses may be more pronounced than some competitors:
A key to the company’s success in driving its operating costs lower has been the implementation of automated systems and uniform products. The reduction in labor intensity in the process has carried with it a reduction in the personalized approach to lending.
The credit card industry or auto lending are examples of this process. Credit card loans are in fact personal loans that historically were provided after a customer spoke with a loan officer who generally knew the client’s background. Now the bank provides the loans to people it has never met and never interacted with using a systemized process. This is also true of automobile loans and in many cases of mortgages and home equity lines of credit.
These systems, now many decades old, are widely supported by consumers and have combined to lower the cost of originating loans and in increasing loan volumes. The problem with these systems is that they fail to detect changes in the borrower’s condition until losses start to appear. Then it is generally too late so that losses soar before the bank gains control of the process once again.
This is now happening throughout the industry and to a greater degree at Bank of America.
Countrywide is a veritable boiling cauldron of putrid assets and potentially devastating liabilities that are actually labeled as assets. Merrill Lynch was collapsing under its own weight in real time and BofA needed government assistance to close the deal. Bove says that these companies will help offset the losses it (BofA) is suffering on its loans, but the loans it is suffering from stem largely in part from Merrill and Countrywide. Circular logic moving in an ovular pattern????
Posted by commendatori on June 13, 2009
by Justice Litle, Editorial Director, Taipan Publishing Group
June 10, 2009
Among its many other sins, the greenback is a press hog. The world’s reserve currency, loved and loathed as it is, simply gets most of the ink these days.
In that light many a U.S.-based commentator, not least your cynical Taipan Daily scribes, have repeatedly waxed eloquent on the long-run death of the dollar.
But in our zeal we sometimes forget that, in order for the dollar to die, it has to die relative to other fiat currency offerings… and some of those others are looking pretty sick too. (The main exception, of course, being gold – the one and only “stateless currency” not subject to the whims of a printing press. As Grant’s Interest Rate Observer quips, “Show us a monetary asset whose value is not subject to governmental debasement and we will show you a Krugerrand.”)
In short, the dollar is not the only basket case out there. Take the euro, for example. Now there’s a troubled currency if ever one existed.
As pollyanna stock market bulls are finding out the hard way, rising interest rates (via falling bond prices) can have ugly consequences. The same is true of a rising currency when coupled with a weak economic backdrop.
In this particular case, the stronger the euro gets, the more it cuts into European export sales. At a time when most all of Europe is sick, the economic pain of a too-strong currency becomes intense above a certain threshold.
On top of that, various bits of Europe are in the process of blowing up… or falling apart… or both. There is deep trouble brewing in multiple corners of the continent. Let’s take a quick look on a country-by-country basis to see why Europe is being held together with duct tape.
Britain on the Brink
We’ll start with Britain – not an adopter of the euro, but a member of the EU (European Union) nonetheless.
Britain has been hurled into political chaos, thanks to an unholy combo of deep financial crisis, explosive Labour Party scandals, and the hapless lame-duck status of embattled Prime Minister Gordon Brown. Cabinet Ministers are resigning left and right in protest as Brown’s popularity plummets, calling for the PM to step down. Election results tallied this week showed the Labour Party (Brown’s party) putting in its worst showing since 1918.
Posted by commendatori on June 7, 2009
Fibonacci – God’s Fingerprint
Phi’s the Limit
Fibonacci in Tool’s Lateralus
Mathematics in Nature – Fibonacci
Fibonacci Sequence & Financial Markets
The Golden Mean & Fibonacci Sequence
Posted by commendatori on June 4, 2009
By Mike Whitney
June 03, 2009 “Information Clearing House” — Last week’s ructions in the bond market, leave little doubt that the financial crisis has entered a new and more lethal phase. Of particular concern is the spike in long-term Treasuries which are used to set interest rates on mortgages and other loans. On Thursday, the average rate for a 30-year fixed loan jumped from 5.03% to 5.44% in just two days. The sudden move put the mortgage market in a panic and stopped the refinancing of billions of dollars in loans. The yields on Treasuries are going up because investors see hopeful signs of recovery in the economy and are moving into riskier investments. More money is moving into equities which is why the stock markets have been surging lately. (The Federal Reserve’s multi-trillion dollar monetary stimulus has played a large part, as well.) The bottom line is that investors are looking for better returns than the paltry yields on government debt. That will make it harder for the Fed to sell up to $3 trillion in Treasuries in the next year to finance Obama’s proposed economic recovery plan. For now, foreign central banks are still buying enough short-term Treasuries to cover the current account deficit, but that could change in a flash, especially given Fed chief Bernanke’s propensity to print more money at the drop of a hat. That’s making foreign holders of dollar-based assets more jittery than ever.
Bernanke is in a bit of a pickle. He needs to sell boatloads of US debt, but if he raises interest rates; he’ll kill the recovery and send the stock market reeling. What to do? Eventually the Fed chief will arrive at the conclusion that there’s only two ways out of a credit bust of this magnitude; either raise rates and crush the economy or print more money and face a funding crisis. Either way, there’s a world of hurt ahead.
Here’s how economists Christian Broda, Piero Ghezzi and Eduardo Levy-Yeyati sum it up in their report “The New Global Balance: Financial de-globalisation, savings drain, and the US Dollar”: Read the rest of this entry »
Posted by commendatori on June 3, 2009
“Stress tests Total Sham” William K. Black on Fox Business
Posted by commendatori on June 3, 2009
Posted by commendatori on May 30, 2009
Collapsing home prices and credit markets continue to put downward pressure on consumer spending, forcing the Federal Reserve to take even more radical action to revive the economy. Last week, Fed chief Ben Bernanke raised the prospect of further monetizing the debt by purchasing more than the $1.75 trillion of Treasuries and mortgage-backed securities (MBS) already committed. The announcement sent shock-waves through the currency markets where skittish traders have joined doomsayers in predicting tough times ahead for the dollar. Foreign central banks have been gobbling up US debt at an impressive pace, adding another $60 billion in the last three weeks alone. That’s more than enough to cover the current account deficit and put the greenback on solid ground for the time-being. But with fiscal deficits ballooning to $3 trillion in the next year alone, dwindling foreign investment won’t be enough to keep the dollar afloat. Bernanke will be forced to either raise interest rates or let the dollar fall hard.
Export-led nations are looking for an edge to revive flagging sales by keeping their currencies undervalued. But the strong dollar is making it harder for Bernanke to engineer a recovery. He’d like nothing more than to see the dollar tumble and reset at a lower rate. That would reduce the debt-load for homeowners and businesses and send consumers racing back to the shopping malls and auto showrooms. Perception management is a big part of stimulating the economy. That’s why the financial media has been air-brushing articles that focus on deflation and shifting the attention to inflation. It’s an effort to kick-start consumer spending by convincing people that their money will be worth less in the future. But deflation is still enemy number one. Rising unemployment, crashing home prices, vanishing equity and tighter credit; these are all signs of entrenched deflation.
Bernanke faces three main challenges to put the economy back on track. He must remove the hundreds of billions in toxic assets from the banks balance sheets, reignite consumer spending to offset the sharp decline in aggregate demand, and fix the wholesale credit-mechanism that provides 40 percent of the credit to the broader economy. Treasury Secretary Timothy Geithner has taken over the distribution of the remaining TARP funds, and created a new program, the Public-Private Investment Partnership (PPIP), for purchasing toxic mortgage-backed assets. The PPIP will provide up to 94 percent “non-recourse” government loans for up to $1 trillion of assets which are worth less than half of their original value at today’s prices. The Treasury’s plan is an attempt to keep asset prices artificially high so that the losses will not be realized until they’ve been shifted onto the taxpayer. Here’s how John Hussman of Hussman Funds summed up Geithner’s PPIP:
“From early reports regarding the toxic assets plan, it appears that the Treasury envisions allowing private investors to bid for toxic mortgage securities, but only to put up about 7% of the purchase price, with the TARP matching that amount – the remainder being “non-recourse” financing from the Fed and FDIC. This essentially implies that the government would grant bidders a put option against 86% of whatever price is bid. This is not only an invitation for rampant moral hazard, as it would allow the financing of largely speculative and inefficiently priced bids with the public bearing the cost of losses, but of much greater concern, it is a likely recipe for the insolvency of the Federal Deposit Insurance Corporation, and represents a major end-run around Congress by unelected bureaucrats.
Make no mistake – we are selling off our future and the future of our children to prevent the bondholders of U.S. financial corporations from taking losses. We are using public funds to protect the bondholders of some of the most mismanaged companies in the history of capitalism, instead of allowing them to take losses that should have been their own. All our policy makers have done to date has been to squander public funds to protect the full interests of corporate bondholders. Even Bear Stearns bondholders can expect to get 100% of their money back, thanks to the generosity of Bernanke, Geithner and other bureaucrats eager to hand out the money of ordinary Americans.” (John Hussman, “The Fed and Treasury – Putting off Hard Choices with Easy Money, and Probable Chaos, hussmanfunds.com) Read the rest of this entry »
Posted by commendatori on May 25, 2009
Posted by commendatori on May 20, 2009
GAAP-Based 2008 Federal Deficit Hits $5.1 Trillion
Government Bankruptcy/Hyperinflation Just a Matter of Time
As discussed in the December 15th Alert, the U.S. Treasury published its 2008 Financial Report of the United States Government on December 15th: http://fms.treas.gov/fr/08frusg/08frusg.pdf. A summary of the generally accepted account principles (GAAP)-based detail is shown in the following table:
U.S. Government – Alternate Fiscal Deficit and Debt
Reported by U.S. Treasury
Dollars are either billions or trillions, as indicated.
Sources: U.S. Treasury, Shadow Government Statistics.
With SS Etc,
(1) Fiscal year ended September 30th. (2) Revised to include gross federal debt, not just “public” debt. While the non-public debt is debt the government owes to itself for Social Security, etc., the obligations there are counted as “funded” and as such are part of total government obligations. (3) On a consistent reporting basis, net of one-time changes in actuarial assumptions and accounting, SGS still estimates that the GAAP-based deficit for 2007 topped $4 trillion, with negative net worth of $57.1 trillion and total obligations of $59.8. So as to maintain consistency with the official GAAP statements, the “official” numbers are shown in the table for 2007. (4) SGS estimates $3.4 trillion, excluding one-time unfunded setup costs of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (enacted December 2003). Again, in order to maintain consistency with the official GAAP statements, the “official” numbers are shown in the table for 2004. Link to the 2008 statements: http://www.fms.treas.gov/fr/08frusg/08frusg.pdf
Against what had been the recently publicized, cash-based “official” fiscal 2008 (year-ended September 30th) federal deficit of $454.8 billion, and parallel $161.8 billion deficit in 2007, the U.S. Treasury reported that the 2008 deficit [change in net position] was $1,009.1 billion, versus $275.5 billion in 2007, using GAAP. Since 2002, the Treasury has been reporting the government’s finances using annual statements prepared using accounting standards similar to those used in corporate America.
Those numbers, however, did not account for the annual change in the net present value of unfunded Social Security and Medicare liabilities, except in discussions and footnotes. Counting those changes, as a corporation would for its pension and healthcare liabilities for retirees, the 2008 annual deficit was $5.1 trillion, versus $1.2 trillion in 2007. Such showed total U.S. obligations — gross federal debt outstanding plus the net present value of unfunded liabilities — at $66 trillion, roughly 4.6 times the level of reported U.S. GDP, and greater than total estimated global GDP. These numbers are unsustainable, as suggested in the accompanying graphs, and already are deteriorating severely for fiscal 2009. They also doom the U.S. dollar to hyperinflation, as discussed in the Hyperinflation Special Report of April 8, 2008.
An actual U.S. deficit of $5.1 trillion is uncontainable, and it is about to get a great deal worse. The shortfall cannot be covered by taxes, and the needed spending cuts tied to Social Security and Medicare cannot be worked politically. The rapidly deteriorating economic conditions promise reduced tax revenues, while the incoming Obama Administration has promised significantly increased spending.
Impact of Systemic Solvency Crisis to Be Seen in 2009 Numbers. As the U.S. Treasury responded in tandem with the Federal Reserve in 2008 to address a collapsing financial system, placing Freddie Mac and Fannie Mae into conservatorship added about $13 billion to the annual deficit and government liabilities for fiscal 2008. Most of the impact from that and other actions, however, will not show up until 2009 accounting. In like manner, the Troubled Asset Relief Program (TARP) was not enacted until fiscal 2009 and will be so accounted for.
As reported so far in fiscal 2009 (see the Federal Deficit comments in the Reporting section), the “official” cash-based (not GAAP-based) accounting shows for October and November 2008 — the first two months of the 2009 fiscal year — that the official deficit more than doubled to $401.6 billion, from $154.1 billion in the same period of fiscal 2008.
Faced with collapsing economic activity, President-elect Obama has promised a massive economic stimulus package that likely will total close to $1 trillion, spiking the “official” cash-based deficit to possibly $2 trillion in fiscal 2009, more than four times the 2008 record level. All that will have to be funded by the U.S. Treasury, on top of its regular refunding needs. Therein lies a problem for the markets and the incoming Administration.
U.S. Treasury funding needs exploded by about $500 billion in October 2008. Yet, even as Treasury issuance began to spike in calendar third-quarter 2008, foreign purchases of those instruments began to falter, as reflected in the Federal Reserve’s flow-of-funds data, which tend to be unreliable. Nonetheless, the U.S. Treasury has relied on foreign net purchases of an average 80% of its net debt issuance since 2002. As foreign investors increasingly shy away from a losing proposition with the U.S. dollar, faltering demand for U.S. Treasuries will become a problem for the Federal Reserve, the U.S. Treasury buyer of last resort. At such time as the Fed monetization of U.S. debt accelerates meaningfully, the risks of hyperinflation will move in over the horizon.
Risks of U.S. Default. As discussed in the prior newsletter, stories keep circulating in the global markets of a possible default on U.S. debt within the next year or so, as result of the explosive growth in federal debt. Such remains unlikely, unless foreign lenders start making not-so-unreasonable demands that the United States issue its debt in yen, pounds, euros, etc. As shown by the latest GAAP-statements, the United States already had no prospects of ever honoring the obligations that were in place before the current crisis, which will push this year’s cash-based deficit possibly to $2 trillion (perhaps $8 trillion GAAP). Under such circumstances, most governments would opt to use the printing press to inflate their way out of debt, rather than to go through a formal debt default.
That is why the agencies that issue sovereign debt ratings usually will give a “AAA” rating, when debt is issued in the sovereign’s currency, backed by the power of being able to create whatever currency is needed in order to meet the obligations.
If, however, the U.S. had to start covering new obligations in something other than the U.S. dollar, then the risk of formal default would become meaningful, and sovereign ratings on non-dollar U.S. Treasury debt easily could fall below investment grade. Given that the U.S. government has no way out of its obligation bind within the traditional system, offering non-U.S. dollar denominated debt would not be a desirable option. Such would raise the risk of actual debt default and a possible ratings downgrade that would not otherwise be seen, while possibly accelerating the onset of hyperinflation in the process.
Posted in Economics | Tagged: cash-based deficit possibly to $2 trillion, Federal Obligations is 65.5 Trillions Dollars, Government Bankruptcy, Hyperinflation, Risks of U.S. Default | Leave a Comment »
Posted by commendatori on May 18, 2009
The Federal Reserve apparently can’t account for $9 trillion in off-balance sheet transactions.
When Rep. Alan Grayson (D-Orlando) asked Inspector General Elizabeth Coleman of the Federal Reserve some very basic questions about where the trillions of dollars that have come from the Fed’s expanded balance sheet, the IG didn’t know.
Worse, nobody at the Fed seems to have any idea what the losses on its $2 trillion portfolio really are.
“I am shocked to find out that nobody at the Federal Reserve is keeping track of anything,” Grayson says.
Grayson asked Coleman if her agency had done any research into the decision not to save Lehman Brothers, which “sent shockwaves through the entire financial system,” Coleman said it had not.
“What about the $1 trillion plus expansion of the Federal reserve’s balance sheet since last September?” Grayson asked.
“We have different connotations,” Coleman replied. “We’re actually conducting a fairly high-level review of the various lending facilities collectively.”
Translation: Nobody at the Fed knows where the money went.
Do you know what who got the $1 trillion or more in the Fed’s expansion of its balance, Grayson pressed.
“I do not know. We have not looked at this specific area at the particular point on that specific review,” Coleman answer.
What about the trillions of off-balance transactions since last September, Grayson asked.
Coleman demurred again, saying the IG does not have jurisdiction to audit the Federal Reserve.
Grayson pointed out that it was the inspector general’s job to audit such spending and asked again if the office had done any investigation at all.
Coleman’s answer: Not enough yet to even respond. “We are in not a position to say if there losses.”
Grayson concluded, “I am shocked to find out that nobody at the Federal Reserve, including the inspector general, is keeping track of this.”
Meanwhile, Federal Reserve Chairman Ben Bernanke says the bank is working on ways to rein in the massive balance sheet commitments.
“A majority of the members who made these projections just recently took 2 percent as being an appropriate number” for inflation, Bernanke said Monday.
“Somewhere between 1-1/2 to 2 percent is basically the number that our committee has individually stated is the appropriate medium-term inflation rate.
“To achieve that we need to demonstrate that we will be able to exit from the balance sheet position that we currently have, and have been working on this intensively,” Bernanke said in response to questions after a speech to a conference organized by the Federal Reserve Bank of Atlanta, reported by Reuters.
Posted by commendatori on May 7, 2009
FIBONACCI SEQUENCE: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, …
Well, I did it. I started fooling around with Fibonacci numbers and I scared myself half to death. Leonardo Fibonacci, was perhaps the greatest mathematician of the Middle Ages. I pried open his seven hundred year old crypt, dusted him off and asked him his specialty … a question about the future. The question I posed, “Are we headed for inflation or deflation in 2009?” I was stunned by the clarity of his answer. This Einstein of his day warned, inflation of nightmare proportions and worse, is coming to this nation soon.
He does it through his Fibonacci sequence of course. A segment of which looks like this: 3, 5, 8, 13, 21, 34 … You add the last two numbers to get the next number in the sequence. No one knows why, but this number sequence echoes the rhythms of nature. Look at the petals on flowers. There are 3, 5, 8, 13, even 21 (daisies). Exceptions are rare. This is why four leaf clovers are good luck, you can find one, but it will take you all day. Look at you elbow and your knee cap. They are located .618% up the length of your extremity. You get .618 every time you divide any number in Fibonacci’s sequence by it larger neighbor. 144 ÷ 233 = .618. I always hated math, now … not so much.
As to the question at hand, we have had two periods of hyperinflation in America. The first period was during the Revolutionary War (not worth a Continental). The second was during the Civil War (greenbacks and graybacks). With 1776 as an obvious starting point, I leapt forward to 2009 and got a Fibonacci 233 years. The Civil War ended in 1865. Leap forward to 2009 from 1865 and you get a Fibonacci 144 years. If you’ve got your thinking cap on you’re already wondering about the length of time between 1776 and 1865, and yes, it is a Fibonacci 89 years.
But wait, it gets worse! Hyperinflation in 2009, would only be a side dish, the main course is war. Note well, these were not simply wars, but wars with ourselves. The Civil War was sometimes literally brother against brother until it ended in 1865. King George was our King, we were his subjects, until we declared independence on the fourth of July, 1776.
Are we really headed for war with ourselves and hyperinflation once again in 2009? This cluster of Fibonacci numbers linking up and landing on the year 2009 is striking and elegant. Is this the year where the old world ends and the new world begins? Leonardo Fibonacci says yes.
Posted by commendatori on April 8, 2009
Part 1: Private Power
Part 2: “Orchestration”