Takedown of the US Financial System-What do you think?

Started by glenn kangiser, August 21, 2008, 07:27:35 PM

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glenn kangiser

"Always work from the general to the specific." J. Raabe

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muldoon

That article was all over the place.  Hard to follow in some spots.  Basically I think he has a good story, but I personally have a hard time swallowing it in total.

I have worked for some large companies, some fortune 10's even.  They all have politics you would not imagine.  I cannot think of anytime I saw more than 3 people agree on a plan and be able to execute it correctly without bickering and power struggling.  We see the same thing in government daily.  To me the idea of an illuminati or group of 200 families controlling the world with pinpoint precision was always unrealistic.  Perhaps I just do not have the personal experience to appreciate it as possible, but I just have a real hard time believing it.  

He has some great points, in fact most of his numbers are spot on and explanations sound plausible enough given the right context.  But he continues to miss the boat on some things in my opinion.  I'll copy/paste from the article on some things I did not agree with his point of view on.

"At the height of speculation, the insiders who owned the Fed or were otherwise a part of the elitist group of megalomaniacs in government and business acting in concert with the Fed and its Illuminist cadre, were told that the Fed was going to pull the plug on the money supply and send the markets into a tailspin.  "

Umm .. not really, at least not likely.  It is far more likely that people who dealt with finances daily could read balance sheets and see the writing on the wall.   They were not told what was coming anymore than I have been told what is coming.  Glenn, your fairly aware of whats going on in the finance world and seem to read up on the subject, has any illuminati warned you?  Maybe people who profited from the GD1 simply were aware of their surroundings and positioned themselves.


muldoon

"This same group of insiders were further told when this fiendish event would happen."

To be fair, the fiedish event was a necessary correction from overexpansion.  Yes, constricting credit/money supply does hurt the economy but much like where we are today it was simply unsustainable and needed to be corrected.  The eventual depression part of the event was related to other events, mostly "intervention" on the part of the government that sent the bond market into a tailspin. 

The gold confiscation thing was simply horrible, however it was a perceived national crisis.  At the time the USG could not issue currency without gold to back it, the contracting credit supply KILLED the money base and they needed to expand money in order to clear the hurdle.  Barbaric ok, but I understand the motivation for doing so, and it wasnt necessarily evil. 

"And now they are at it again, as The Big Sting Two gets underway.  The objective is to run the paper, dollar-denominated stock, bond and derivative markets up in the mother of all bear market rallies just before the elections in order to support traitorous, incumbent, Congressional scum, while simultaneously driving the commodities markets, and markets for other tangible, real assets, like real estate, down."

If the goal is to drive the stock market up they are doing a shit ugly job of it. 


muldoon

"Then comes the bailout and the rollover and reinvestment of the proceeds.  Dark pools of liquidity, Project Turquoise and Baikal, have been set up so that all dollar-denominated paper assets can be dumped outside of public view, thereby avoiding the collapse of asset values as the elitists pour their sales proceeds into tangible, real assets."

This is where he loses it.  The bailout will do one thing and one thing only.  It will destroy the US treasury.  If our government moves to nationalize this debt our debt purchasers will seek higher returns or flat out refuse to buy our bonds.  This would be like asking the federal government to put a shotgun in their mouth and pull the trigger.   Your talking about a complete inability to continue funding itself. 

"The dollar gives up the ghost.  Up rocket gold, silver, oil and other commodities along with various other real assets as everyone runs for the door to dump their paper assets and tries desperately to reinvest the proceeds in real assets just as the insiders had done previously without them knowing.  Next come the bankruptcies, foreclosures and liquidations.  And who is there to scarf up all the fire sales at pennies on the dollar?  That's right, the evil, insider fiends whose real, tangible assets have skyrocketed after they just got the best possible deal on what is now worthless, dollar-denominated, paper "assets" from the public and non-insider, institutional sucker-dupes."

I see this as the equivalent as saying that someone purposely sets fire to a mansion so he can buy it and live there in the ruins for cheap.  Theres a damn good reason those assets will be going at firesale prices in that event.  Who wants to own the remains of the malls and suburbs in a mad max world?  It just doesnt pass the sniff test for me. 

"So far, they have only acknowledged a half a trillion in losses from subprime derivatives, with many, many trillions left to go on Alt-A, Option ARM's, Prime Jumbo and Prime Non-Jumbo loans.  Who will buy all this toxic waste when they go to dump it?  How will they get a high enough price to keep major banks, investment banks and brokerage houses from going under?  "

This is a FANTASTIC question, too bad he doesnt answer it. 


muldoon

"Then we have the credit-crunch.  It is worse than ever.  A half-trillion of Fed largesse created from thin air has done nothing to restore confidence in a collapsed system run with a mantra of rampant, rampaging, blatant fraud and deceit that has wiped out the major players in our financial system. "

Money is not created out of thin air, it is born out of debt origination.  Someone (China, Saudi, others) bought US debt to create those dollars.  It is not half a trillion, it has been nearly 800 billion in the last 11 months. 

"The fractional reserve multiplier is now inoperative because no one wants to lend money.  Every potential loan client is a potential back-breaking loss down the road.  The banks don't trust one another, much less non-financial clients. " 

Again, missing the big picture of deflation.  Banks loan to each other when they have surplus reserves.  Look at the Fed reserve reserve requirements shows a 150 billion dollar amount UNDER reserve req's.  Their not lending because they cant. 

"They can marginally help the fraudsters with their investment spreads if rates are lowered.  The raising of rates at this point would bring the system down and completely destroy The Big Sting Two operation, so you can bet that higher rates won't come from the Fed until after The Big Sting Two is completed or aborted. "

The federal reserve does not set rates.  They set target.  The market sets rates.  Go look at rising mortgage rates to see this effect.  Last year fft was 5.25 and mortgages were 6, today fft is 2 and mortgages are 6.5  ...  This is not something "they" can control. 

"Soon, Buck-Busting Ben will have to raise M3 to unheard of heights just to keep the system from collapsing as the financial system contracts at an ever-accelerating pace due to a self-imposed moratorium on lending and a collapsing real estate market and recessionary economy. "

Maybe he should go look at M3, M1 or M' (M prime) .. they are not going up.  Hint, money supply is contracting, not expanding. 



muldoon

"First, you have the collapse of the dollar carry trade.  This was a set-up by the Illuminati. "

wow.  what a statement.  The carry trade is a complex event that takes advantage of certain circumstances where one country loans cheap (Japan) and lends it somewhere it can get a higher return (usa).  The difference is called arbitrage.  It has not collapsed, although loans and indeed all debt is struggling because those are could borrow dont need to.  (the business is not growing) and those who need to borrow cannot (balance sheet nightmares and credit risks).   Thats not a currency setup. 

"Other currencies are being sold to buy dollars to cover eroding margin positions in dollar shorts caused by the sharp rise in the dollar initiated by central bank collusion, and that is increasing the dollar's value while simultaneously decreasing the value of other currencies such as the pound sterling and the euro.  "

Yes, but I see it as more defensive for other countries to deflate their own currency in an effort to increase exports.  They are beginning to take the course we did starting last August. 

"US recession is taking its toll on dollar flows as US consumers collapse from burdensome levels of debt and dollar flows are contracting rapidly from the financial system as the result of an ever-worsening, ever-accelerating credit-crunch even though Big Ben is printing money furiously.  "

Go look at money supply, or stock market, or real estate, or anything show me printing ANYWHERE.  Complete bullshit. 

"The other part of The Big Sting Two is to suppress precious metals directly, so they can be purchased cheaply by the Illuminists themselves for their own account. "

I have said a few times the gold trade was long in the tooth and very very crowded.  What happens to all crowded trades over time, they retract violently.  It's not suppression by some dark overlords, its market dynamics. 


muldoon

"The mint has suspended issuance of both Gold and Silver Eagles. Dealer inventories of gold and silver bullion and coins are greatly depleted and lengthy delays in delivery are common.  Yet prices have plummeted.  This goes against all free market principles known to man. "

I agree 100% with this, it's almost like they bought silver at 22 and refuse to sell it 3 months later at 12 effectively bankrupting themselves.  Suspicious indeed.  Honestly though, there are dozens of dealers, hundreds of small dealers, this type of collusions is quite a bit to believe.  The exact same thing happened 2 months ago on the last dip, everyone said it would be 3 months to get product.  Prices came back in 2 weeks and so did the metal. 


"Wait until the Olympics are over and China joins in on the action.  Wait until all those foreign GSE bondholders start to smell big losses emanating from their  Fannie and Freddie securities holdings and start exchanging them for gold, silver and other commodities while shunning treasuries and corporate bonds.  Something very bad is about to happen.  We can just feel it coming.  "

I worry about this myself.  greatly.  Its not a illuminati thing, its a china has us over the barrel big time thing.  I dont know whats coming either.  I dont like it, and I dont feel positive about it.  However I personally will not try to find someone to blame for this.  Nor do I personally believe in conspiracies of this nature to screw us.  People are out for themselves, some are smarter than others and will benefit from others misery. 

I dont know the details of the russian/georgian ongoing to comment on that. 


glenn kangiser

Thanks for your analysis on that muldoon.

I think there are groups who get together to direct the direction of things like this(Bilderbergers for one).  I think his Big Sting Two has a lot of speculation in it.  I don't know how a greedy group that would be necessary to do this could keep it together without stabbing each other in the back a million times, and it seems like the weather, there are too many variables for them to totally control the outcome.

It may not mean that they are not trying though.  Sassy has studied the world bankers much more than I have and I just play tag and try to keep up.  I value your insight, muldoon.  Thanks again.

I do follow the wars pretty closely and the Georgia thing is pretty interesting.  It looks like we are there helping Georgia with guns, equipment, mercenaries etc. in yet another attempt to do Israel's bidding.  It is our govs. wishes that everyone look at Russia as the bad guy here, but in actuality our government is one of the instigators and enablers and Russia is the peacekeeper.

Congolisa has asked for our toys back - guns - Humvees -etc.  Hey we were just playing.  No fair -- you can't have our toys you mean old Russians.  We were just letting the Georgians use them.  We didn't know they were actually going to go out and attack you with them.  d*

Give em back now - pretty please....

There is an nice oil line running right across Georgia.  They are our buds.

http://www.independent.co.uk/news/world/europe/russia-seizes-us-vehicles-902432.html


"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

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glenn kangiser

Note that I am not a socialist but they have interesting insights on the background of the Georgia thing.

http://www.wsws.org/articles/2008/aug2008/pipe-a21.shtml

Presented as information only.
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

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considerations

Has anybody heard about the new documentary I.O.U.S.A.

Warren Buffet has a few things to say.  Its pretty scary.

glenn kangiser

#10
I have heard about it but not seen it.  Rest assured that if they can mess it up they will and I doubt they can fix it.

More on what happened in Georgia and why they want the war machines back. 

www.kp.ru/daily/24150.4/366391/

and Sackoshi...wanted a plane sent in for him..

http://www.kp.ru/daily/24150.4/366384/
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

Please put your area in your sig line so we can assist with location specific answers.

glenn kangiser

True colors showing through -- the greedy power hungry jerks who will cause the deaths of thousands of lower and middle class without concern, turn to little chickens when the threat may be toward them.

http://en.rian.ru/world/20080822/116219864.html

"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

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Sassy

now with the Obama/Biden ticket we'll have more plundering, but, heck, other than a write-in, there's no one to vote for  >:( 

Here's a good article that cites several bills that Biden has been sponsor/co-sponsor to...
OBAMA - BIDEN, STATUS QUO WE CAN BELIEVE IN

By CJ Graham
August 24, 2008
NewsWithViews.com

And, we shall know him by his works.

Amid a flurry of fanfare and speculation, by drooling 'journalists' AKA 'readers' and talking heads, Presidential hopeful , Senator Barack Obama (D-IL), has sealed the deal by naming, as his running mate, Senator Joseph Biden (D) 'Representative' of Delaware since 1972.

Obama, the 'Messiah of Change', a favored son of the 'Gods of Globalism' and the MTV, Desperate Housewives, and reality TV crowd, THE chosen one, has announced his right hand man.

Careful though, his right hand man has his hand right in your pocket and the results are not pretty. If it is true that past actions are predictive of future actions, we are in big trouble should this new 'Dynamic DUO' take up residence at 1600 Pennsylvania Ave. The plunder of our national and personal wealth will continue and increase enormously.
http://www.newswithviews.com/Graham/cj107.htm

if you go to the article you will find lots of links to the godforsaken bills he has sponsored/co-sponsored...  further raping our country unto the 3rd & the generations...  and even beyond that  d* [frus]
http://glennkathystroglodytecabin.blogspot.com/

You will know the truth & the truth will set you free


glenn kangiser

Well at least the US has the honor of being the one who destabilized the world economy with it's never endiing war of terror, no bid contracts to political allies, fascist control of government and destruction of our own country by the elite in favor of one world government in the near future.  

Drop those worthless dollars, it will soon be time to get yourself a pocket full of Ameros.
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

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Sassy

Quote from: ScottA on August 24, 2008, 10:05:13 AM
This kinda goes along with this thread. MSM view... http://articles.moneycentral.msn.com/Investing/SuperModels/warning-worldwide-wipeout-ahead.aspx

pretty scary - hard to know where to put your money...   ???  i keep wondering if I'll have anything left in my Thrift Plan (like 401K, but for federal employees)  They won't even let you take the money out anymore with penalty & taxes & they've really restricted the amount you can borrow from it...  the gov't has probably taken all the money out of the acct - I still have 2 years before I can take out the money without penalty... 
http://glennkathystroglodytecabin.blogspot.com/

You will know the truth & the truth will set you free

Sassy

Some things that have been happening in world banking...

Dubai M&A Oasis Lures London Bankers With Bigger Desert Bonuses

By Ambereen Choudhury

Aug. 26 (Bloomberg) -- Christopher Laing, a managing director at Deutsche Bank AG in London, moved with his wife and twin boys to Dubai this month, joining a rush to the only region in the world where fees earned by securities firms are growing.

``It's bigger than it has ever been,'' said Laing, 39, co- head of equity capital markets for central and eastern Europe, the Mideast and Africa, referring to the number of public offerings on the horizon. ``I'm lucky it was my choice to move.''

Laing joins scores of rival bankers, including Lehman Brothers Holdings Inc.'s Makram Azar, Citigroup Inc.'s Alberto Verme and Morgan Stanley's David Law, who have left London in recent months in search of deals. The attraction: an oil-rich patch that may have $5 trillion in sovereign wealth funds by 2015, according to International Financial Services London.

Fees earned by securities firms in the Middle East rose 5 percent to $612 million in the first half of the year, the only part of the world to show growth, according to New York-based research firm Freeman & Co. While it accounts for less than 2 percent of global investment banking fees, the region accounts for twice as big a share of the pie as it did a year ago.

Among the larger deals in the last 12 months are the $4.96 billion initial shares sale of DP World Ltd., the Dubai-owned ports operator, and about $18 billion of investments by Persian Gulf states sovereign funds and companies in foreign banks, including Citigroup and Merrill Lynch & Co., according to Bloomberg data.

``The Gulf is being flooded with trillions in petrodollars,'' said Marcus Noland, a senior fellow at the Washington-based Peterson Institute for International Economics and a consultant to the World Bank. ``Dubai has emerged as the location of choice for foreign bankers.''

con't at link
http://www.bloomberg.com/apps/news?pid=20601109&sid=aFTyxM1Mw6nQ&refer=home

Global Banks Embrace Islam     

The Bible warns that "... the love of money is the root of all sorts of evil" (1 Ti. 6:10) So, just when you think you have just about seen it all, something even more shocking turns up. Like this...

Either global bankers are seducing Islamic dictators, or vice versa. Even if they are seducing each other at the same time, the result will be the same: Islamic/Shari'a banking is coming to the United States and other western nations, thanks to global banks such as Citigroup, HSBC, Deutsche Bank, Morgan Stanley and Goldman Sachs.

With Great Britain now pledging to become the Islamic banking center of the world, the stampede by all global banks to enter the world of Islamic banking is well underway.

Western banking met Islam many decades ago, but only began to sleep with her a few years ago. Since then, it is has become a wanton and open affair.

The implications for the west, and especially for the United States, are staggering. Because all Islamic banking products must be created and offered according to strict Shari'a law, global banks are doing for Islam what it could never do on its own: give legitimacy to Shari'a and infiltrate it into the fabric of western society.

What is Islamic banking?
con't at link

http://www.augustreview.com/issues/global_banking/global_banks_embrace_islam_2007121282/
http://glennkathystroglodytecabin.blogspot.com/

You will know the truth & the truth will set you free