Thursday, December 19, 2013


"The last duty of a central banker is to tell the public the truth" - Alan Blinder, 1994 on the PBS Nightly Business Report
An old colleague and I agreed back in 2002 - back when we were one of the few who were openly discussing how corrupted and bankrupt the U.S. was - that we would eventually see things happen in this country that would blow our minds.  As if to perceive just how rotten to the core the U.S. political and economic system was back then wasn't enough in and of itself to be considered mind-blowing, we knew worse was in store. 2008 and the unbelievable use of billions in taxpayer money to bail out the banks from their bad bets was bad enough.  But to then watch the upper management of the banks take that bailout money and distribute a lot of it as bonus money to employees was horrifying.  But I guess what's really mind-blowing is that the America public just sits there and takes it.  It's the equivalent of being raped by an HIV-infected criminal and then say, "whatever."

Yesterday was close to be mind-blowing.  The Fed somewhat unexpectedly announced that it would partially reduce its monthly money printing program starting in January.   The truth there is that the Fed has been printing more than $85 billion per month when you factor in the fact that it takes interest earned on the bonds it has bought and turns around and buys more bonds from the banks.  So the actual "taper" event is somewhat of a deception.  But then Bernanke gets in front of the media and states that the economy is improving.  Let's see, Caterpiller announced today that it's global sales plunged 12% in November;  Boeing announced that it lost a $4.5 billion jet order from Brazil because of NSA spying;  existing home sales for November were released and if you look beyond the headline nonsense, you'll find sales in November vs. November last year dropped 4% and from October to November this year sales plunged nearly 13% - I'll have more on this later but please note that mortgage rates have been dropping, so the NAR cover story of higher rates is total b.s.  There were some other negative surprises released today as well.  How's that look for Bernanke's dishonest report on the condition of the U.S. economy?

But don't take it from me, if you think Bernanke means well - he doesn't - here's an excerpt from the widely read King Report:
In his press conference Bernanke reiterated the FOMC Communique’s false narrative that persistently low inflation could harm the economy. We cannot believe that Fed academics still believe in the economic alchemy that holds that economic growth is related to inflation. Fed academics, like Soviet apparatchiks, have purged the economic history of the Seventies, Eighties and late Nineties in order to maintain the promiscuous credit policies that keep big banks and big government functioning.
The market action after the FOMC statement was equally as absurd.  Here's another comment from The King Report:
 Please note that the initial response to Fed tapering drove the S&P 500 below and important technical level (or two) and someone immediately appeared to rescue stocks by driving SPHs higher. We have warned incessantly that this scheme has occurred repeatedly since the financial crisis of 2008.
The Fed and the Government have unleashed an unprecedented amount of manipulative control over the markets - all of them, not just the precious metals market.

Perhaps Bernanke's greatest lie was when he stated under oath in front of Congress that he didn't understand gold and that Central Banks hold it merely out of tradition.  If that's the case, Benjamin Shalom Bernanke, how come the Fed spends hundreds of thousands of dollars in legal fees fighting every Freedom of Information Act inquiry seeking to see the Fed's files with regard to its gold activities?

The truth is the Fed is absolutely terrified by gold.  When the price starts to move up like it did from 2008 to 2011, it signals to the world that something is wrong.  The Fed has spent considerable time and resources since September 2011 working to keep the price of gold as low as possible.  More on this soon, as I'm working on an article about this.  But the fact stands that what is occurring right now and has been occurring in varying degrees for decades is the extreme manipulation of gold for the purpose of defending the U.S. dollar's reserve currency status.

And if Benjamin Shalom Bernanke and Janet Louis Yellen - both Old Testament adherents - can stand in front of the public and lie about that, then they must answer to a different higher authority than most Americans...yep, whatever.


  1. Don't think Iran is about nuclear enrichment. The lying scum bankers want Iran to sell their oil for U.S. dollars. Iran has rethought the U.S. proposal to lift sanctions and decided no. Notice that James Carney Obama's main bitch, said that the implementation of sanctions is being reviewed and that sanctions may be reinstituted. These assholes in government want(need) to take us to war in order to wall paper over the massive theft that has occurred in the last five years. The American public will support a war after the next false flag attack on American soil. You said it correctly Dave in your byline, I know gold will go much higher but, I won't like the way things will look like when it does. World War 3 is going be a bitch.

  2. I just saw a video clip on brotherjohnf's site of a Bloomberg analyst saying all of London's gold was sent to Switzerland and refined into bars, then sent to Hong Kong. It is the first mainstream finance source's recognition of what we in the alternative finance sites have suspected/known.

  3. From the Dept of Too Stupid 2 B True:

    (date referenced is WED DEC 18, & the oz size means it's the Ag, not Au)
    From 2PM to 3 yesterday- 467,000 contracts. (2 billion, 335 million ounces of paper trash)
    From 11 to noon this AM- 152,000 (760 million ounces)
    These 2 hours saw 1 1/2 years of production passed back and forth,
    Good rant on site where I found this; another screams about the worthless spineless complicit mining CEOs who are so arrogant they didn't get the message in the 2008 crash, despite it being delivered by a 2X4 upside the head, that their usefulness is up, they're not wanted nor needed, and they should be shut down by their boards, if they too had any fiduciary responsibility or honesty.

  4. like you said...whatever??????????????????????????

    HSBC Receives Slap on the Wrist for Helping to Finance Terrorists

    Posted on December 19, 2013

    The “Too Big Too Jail” nonsense that surrounds large U.S. banks and their above the law employees has been glaringly obvious and thoroughly documented for quite some time now. Yet what represents an even larger slap in the face to millions of hard-working, law-abiding citizens, is how relentlessly the “justice” system goes after small time criminals, while merely fining oligarch thieves for far worse crimes. I first covered this theme earlier this year in my piece Some Money Launderers are “More Equal” than Others, which discussed how HSBC was caught laundering billions of dollars for Mexican drug cartels.

  5. Horrid analogy but excellent essay. Oh, the mendacities!

  6. Excellent article. Biggest scumbags on earth.

  7. a rouge banking cartel empowered by the Pentagon killing machine in a country full of sheeple. If you can....emigrate while the getting is good.
    keep writing dave, good stuff.

  8. Twas the night before the deadline when all through the house , not a democrat nor republican would lose their title , "louse" !
    The bills were all hung by the speaker for pass in order to garnish every liar's political ass !
    Central banker , wallstreet crony , and Bernanke himself , were in high expectation that DC would come through with taking every last dollar off the middle class's shelf.
    Ahhhh, Christmas as usual for all to feel glee ! And get fleeced by their leaders even under the tree!

  9. Dave
    regarding that quote you presented.

    Bankers are afraid of the truth because they run an inherently fraudulent scheme.
    Under fractional reserve banking the funds to cover depositors aren't readily onhand.
    Even if the bankers have collateral for loans, there's usually a time duration mismatch in access. and there's the prospect that assets sold in a panic will bring in less.

    Bankers live in fear of a run on the bank, hence the desire on their part to present the outward appearance that all is well, things are under control, move along sheeple, nothing to see here.

  10. We're trapped by two parties having 1 the feeding of U.S.

    Dear Ron Fournier: The Clintons Are Criminals and You Enable Them

    The Clintons, along with their allies the Bushes, are some of the dirtiest, meanest, most criminal players in Washington DC and it has been this way for a very long time. Fournier also spends a lot of time validating the Bushes as legitimate, above the table, decent political players when they are anything but that, especially George Herbert Walker Bush and Jeb Bush - both highly involved in the crimes of Iran-Contra, CIA drug running, money laundering, murders to cover it all up. Google "Jeb Bush Barry Seal."

    RON FOURNIER is a faithful servant to the criminal power elite across the political spectrum: be they Clinton or Bush.