Wednesday, September 21, 2011

Thankfully The Fed Farce Is Now Over...

I don't have anything to say about it other than that the circus leading up to the decision announcement is retarded.  I also have to say that Steve Liesman has to be the biggest buffoon in financial reporting.  His performance makes Jerry Springer and Cornel West look brilliant...

At any rate we all knew what the Fed, for the most part, was going to do today.  The question is, when will the real printing re-commence?  My partner opined:  "they don't have much choice."  To which I said:  "yep, either print or don't print - if they don't print the system collapses."   So that's where things shake out.

Meanwhile. beneath the overflowing pomp and circumstance of today's U.S. version of Kabuki Theatre, please take note that Greece has finally implemented a series of austerity measures:  LINK  I don't know if those do a lot in the grand scheme of things over there, but it sure is step in the right direction that our Government refuses to take.  I would advise to cover all shorts in the euro...

As I've outlined in several previous posts, it boggles my mind that everyone in this country is focused on what is happening in Europe and predicting the end of the EU, euro etc, when really the problems in just California alone are bigger than Greece, Italy, Portugal and Spain in aggregate.  Then throw in Illinois, New York, New Jersey, Ohio, Pennsylvania....And then there's the Federal Government.  Because the EU is set up the way it's set up, they can't just print money at a whim or issue EU "umbrella" debt and thereby keep in business an individual country this is going bankrupt, the way our Government enables States like California to avoid default.  They can systematically force austerity.  We don't have that ability in this country.  Eventually the global markets, of course, will force the issue on the U.S. and it will be be really ugly.

I hope everyone takes the time to the research piece I've linked below, which is a summary of a report published almost monthly by an organization called LEAP 2020.  I've been reading their freebie stuff for several years and most of their analysis has been remarkably accurate over time, although sometimes early on predictive timeframe.  They explain how/why Europe is being used by DC/Wall Street/London as device to keep everyone's focus off of the real problems in the global financial system: 
But let’s come back to Greece and what is beginning to be a "very repetitive old story (3)" which, as we have already explained, returns to the front of the media stage every time Washington and London are in serious difficulties (4). Moreover, coincidentally, the summer has been disastrous for the United States which is now in recession (5), which has seen their credit rating cut (an event deemed unthinkable by all the "experts" only six months ago) and exposed their political system’s state of widespread paralysis (6) to an astonished world, all whilst being incapable of putting any serious measure in place to reduce their deficits (7). At the same time, the United Kingdom is sinking into depression (8) with riots of uncommon violence, an austerity policy that fails to control budget deficits (9) whilst plunging the country into an unprecedented social crisis (10), and a ruling coalition that doesn’t even know why it governs together against the backdrop of the scandal of collusion between political leaders and the Murdoch empire. No doubt, in such a context, everything was ripe for a media relaunch of the Greek crisis and its corollary, the end of the Euro.
Here's the LINK  Please take the time to relax and read that piece.  It conveys a lot of the same views and truths that I try to convey with this blog, but does a much better job of it.

One thing they point out, that I forgot about and does not receive much media attention, is the financial nuclear trigger built into the debt-limit extension agreement.  In November this year, a "special" Congressional debt committee has to come up with a bunch of budget cuts, otherwise automatic budget cuts kick in.  This could be disastrous for the financial markets if the same movie from August is replayed at the end of October.  Of course, the Fed can always crank up the printing press and all will be forgiven...


  1. I explained it all to my adult daughter in 1 minute and keeping it simple:

    How can we pay for the entitlements which nobody wants to reduce when we are already at huge deficits?

    Her answer--is it ok to buy more gold?

    Thanks, D.

  2. Michael Pento - Why the Fed’s Exit Strategy is Now in Peril

    “In addition, Bernanke has now gone on record as being a master
    prevaricator. He claimed in his statement that inflation pressures
    have abated through the course of 2011. Here’s a quote from his
    statement: ‘Inflation appears to have moderated since earlier in the
    year as prices of energy and some commodities have declined from their
    peaks. Longer-term inflation expectations have remained stable.’ But
    the data set from the Bureau of Labor Statistics conflicts Bernanke’s
    contention that inflation rates have moderated. Year Over Year
    increases in the CPI have gone from 1.6% in January, then rose to 3.2%
    in April and have increases by 3.8% in the 12 months prior to August.
    Can you tell me what he is talking about?”

    please forward to fed...
    Rob Arnott on
    ...Understated inflation

  3. The question is, when will the real printing re-commence?

    The answer: it does not re-commence, rather it continues behind closed doors.

    They will save the debt by bailing it out with more debt. It is the debt that is too big to fail. All 1.75 quadrillion of it. Once it does, the catch 22 scam is revealed for what it really is.

    All eyes can easily be diverted to Greece, as if it defaults, it is the first domino to topple down the "debt as wealth" system of monetary fascism (disguised as democratic socialism).

    The generational gold holders are now positioned to sit back and do nothing but wait for entire nations to beg them to "save us".

    Just as the Rothschild class has always done, governments lie at their feet now.

  4. Cornell West, I like him, seriously!

  5. in the meantime I'll see everyone at the 2009 lows ;)

  6. Dave
    Having regularly read the (free portion) of the LEAP reports for the last couple years, I've noted a definite shift in their position to the point that they're just another propaganda mouthpiece pushing for EU unification (as in ruled by the bankers).
    Look closely at their reports .. jeez, they sound like George Soros ... "just give yourself & your home country up to rule by banker installed Brussels bureaucrats ...resistance is futile, should you not do as told, all is lost,
    anarchy and war will result".

  7. (Dave)

    Thx Tyrone. faber is always worth listening to

    RE LEAP 2020. I don't know that they're necessarily pro-EU. They have a big team of researchers who do a lot of empirical and analytic research. Have you ever seen the subscription report they publish? I have looked at it but did not read the whole thing. They are long, intense and have a lot data in them.

    The reason I like what they are saying is that it confirms my suspicions all along that the U.S. is using Greece/EU has pure distraction and I've been thinking for awhile that what is going down in Europe could actually lead to reform. Moreover, the bulk of the western system problems stem from the enormous and rapidly accumulating problems in the U.S...

  8. Chico,

    THE USD. I Told you not to disrespect my bitch dawg.

  9. Don Coxe's Fascinating Take On Why The Time For The US To "LBO" The Gold Market Has Arrived

    And while it is described in much more succinct detail below, in summary, Coxe's point is that the time for a government "LBO" of the gold market, one in which every last ounce is extracted from the skittish public, in exchange for pseudo-equivalent assets such as gold-backed bonds, has arrived. The only question is what the acquisition price of the risk-free alternative to fiat would be, and hence how much higher will investors push the price in anticipation of the inevitable 25% take out premium. Once the public realizes that this is the endgame, and that the buyer of only resort will be none other than Uncle Sam... then look out above.

  10. Jim Rogers: We’ve Had One Lost Decade Already, Will Have At Least One More

  11. Dancing ghosts

    Administrations in the US may change, but the
    unholy alliance between Washington and Wall
    Street carries on — they too have a communal
    interest in more and more paper. In Europe for
    years senior French and German civil servants
    have gathered in pleasant chateaux to sip dusty
    claret and set policy for millions. Elected
    representatives have only faint voices and the
    people none. The media have generally acted
    like trained seals.
    But polls everywhere are saying people have had
    enough bureaucratic decision-making on their

    Polls in the US show dissatisfaction with almost

  12. California’s Governor to choose Main Street or Wall Street with public bank bill

    Governor Brown, so far, has upheld the current criminal political and economic “leadership,” and requires a “Scrooge conversion” before he becomes a partner of the people. We know this is true because he does not declare his support for the people with other “emperor has no clothes” obvious crimes of “leadership”:

    Perhaps the most egregious documentation of current California government fraud is in the data of collective government Comprehensive Annual Financial Reports (CAFRs) that reveal trillions of our dollars “invested” on Wall Street while lying in omission that they have no money for budgets.

  13. Interesting...the old fraud is now called the new coding error....!I'm sure?????????

    Axa Rosenberg Co-Founder to Pay $2.5 Million to Settle SEC Claim for Fraud
    Axa Rosenberg Group LLC’s co- founder Barr M. Rosenberg agreed to pay $2.5 million to settle claims by the U.S. Securities and Exchange Commission, which accused him of securities fraud for concealing a coding error in his firm’s investment model.

    “Investors in quant funds trust their advisers to develop, maintain and operate the quant models that drive a fund’s performance,” Bruce Karpati, co-chief of the SEC enforcement’s asset- management unit, said in today’s statement. “Rosenberg betrayed investors when he failed to disclose the material coding error,” he said.