Friday, October 31, 2008

MONEY BLACK HOLE


Financial 911 Strikes America
"There's nothing I hate more than nothing
Nothing keeps me up at night
I toss and turn over nothing
Nothing could cause a great big fight
Hey -- what's the matter?
Don't tell me nothing."
You must understand the past before you will understand the present

“Uncertainty, in the presence of vivid hopes and fears, is painful, but must be endured if we wish to live without the support of comforting fairy tales.”
~ Bertram Russell


"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered." - Thomas Jefferson

UPDATE: 20 APRIL 2009
US Banking System is in complete and total collapse

Ref Archive: Warning Bank Deposit Box

"You are a den of vipers! I intend to rout you out, and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning." ~President Andrew Jackson (1829-1837)

US Economic Collapse = US Government = Financial Terrorists

Modern banking is the most successful criminal enterprise ever organized and deployed ─ the ultimate shell game on a world class level, making all other crimes notwithstanding , pale in comparison; causing great addiction to its wares, with not one in a million ever feeling the needles first pierce.

The word, expropriate, is key in understanding what the banks main function is. Banking is merely another necessary component of Marxist ideals and rule, whereby the property of the many are brought under direct control of their masters, in this case, the banks.

expropriate \ek-SPROH-pree-ayt\, transitive verb:1. To deprive of possession.2. To transfer (the property of another) to oneself.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford

Bailout Creating a Financial Black Hole to Suck Us All In

A dish of Bailout with a side of pork, shareholders vaporized by Derivatives Death-Star, We all await the financial markets implosion, No problems solved by the bailout, Stay prepared for a full shutdown of the financial system with some cash on hand, Credit default swaps unregulated point in the chain

Well, what a surprise, we've been sold down the river for the usual "thirty pieces of silver" by our Congress and our President, working together in unison, for the nth time.

The $700 billion bailout, a mere sideshow, sweetened with 150 billion in pork, has now been approved so that Wall Street can continue to game the system and its hapless suckers, the American sheople. Just put some pork in, and the hungry piranha in Congress would legislate their own mothers into slavery for a nice juicy morsel of that pork. And never mind the moral hazard dripping from the pork, because that makes it taste all the sweeter.

If you were wondering why all the healthier financial institutions, and of course we say that with tongue-in-cheek because we know they are all eventually slated for destruction by the explosive blast of a Quadrillion Dollar Derivative Death-Star, were buying all the gargantuan commercial and investment banks that are laden with toxic waste, you now have your answer. This is why all the shareholders in these zombie-acquisition deals are getting vaporized. Their assets were more valuable than they thought, because unbeknownst to them, the US government was about to pay far more for these assets than they were worth.

But since the shareholders were not Illuminists, they were not privy to this information. And look at the disgrace with Citibank and Wachovia. After Citigroup wipes out the Wachovia shareholders, with the help of the FDIC, suddenly Wells Fargo, which now sees the value of all of Wachovia's crap paper via the Paulson Ponzi-Plan, comes through with a better offer. The Wachovia shareholders should attack Citigroup based on their fraudulent balance sheets, because they were in no position to acquire anything on this scale, or any other scale for that matter.

The Illuminist insiders were all told in advance that Wall Street's Excellent Bailout Bonanza would be stuffed down the throats of gullible US taxpayers.

Note how many of these zombie-acquisition-deals were done before the bailout plan was even proposed on September 20. As you can see, the masters of the universe are so arrogant that they were willing to bet hundreds of billions of dollars that the Paulson Ponzi-Plan would be successfully shoved up our collective butts by our bought-and-paid-for-or-compromised government "representatives," so-called, despite the hue and cry of the sheople against this monstrosity, sometimes by as much as 300 to 1.

All that cesspool paper that they now own by virtue of these zombie-acquisition-deals is very valuable to them. It will be sold to the government for far more than it is worth so that financial institutions around the world can somehow pretend that the losses are far less than they really are. And never mind that everyone in the world knows this stuff is crap, because we will all now have some sort of collective pipedream in the United Goldilocks Matrix.

We can just see Hank and Ben firing up the pods and installing the everything-will-turn-out-juuuust-right software, so we can all pretend that the credit-crunch never happened. We will just ignore it. This is another Illuminist fantasy that will turn out about as well as their subprime scam.

Of course, the reality is, whether this cesspool paper worth pennies on the dollar is sold for its hold-to-maturity value or for some lesser, but still outrageously exaggerated, figure, the sheople will eat just about everything they pay out for this toxic garbage via the bailout plan.

This stuff is crap even under current conditions, which are worsening by the minute. Just imagine what this stuff will be worth as the real estate markets, and the value of our new collateral, continue to fade off into the sunset while we enter into the Very Large Depression, which is now insured to happen by virtue of the Paulson Ponzi-Plan.

And how much less will it be worth as the rate of return on this garbage gets buried by the upcoming double-digit interest rates that will be born out of the hyperinflation generated by all these bailouts, thus reducing its present value quite drastically. Then throw in the proposed government workouts, complete with interest rate reductions and cram-downs, just for good measure, and that ten cents on the dollar paper that we paid thirty, forty or fifty cents on the dollar for, will soon become worthless.

Making matters even worse, all this toxic waste will be sold by select Illuminist institutions at what will be sham "arranged" auctions where everyone gets to sell what they want for the price they want, as long as they are Illuminist insiders.

Everyone else can of course go scratch.

With Hanky Panky as the real, unsupervised or rubber-stamped auctioneer, you can bet that we, the sheople, will be taken to the Illuminati's slaughterhouse to be sliced up into some prime cuts for the elitist carnivores.

Mutton chops anyone?
Dinner is now served, complete with caviar and champagne.

Bon appetite.

The Illuminati will now act like drunken sailors at a keg party.

They will drain the keg in short order, and then ask for more. If they do not get what they want, they will get rowdy, pounding the tables with their mugs and threatening a brawl that will destroy the tavern if they do not get their next round, pronto. Out comes the next keg, which gets drained even faster than the first because everyone is inebriated, and the next round of table pounding and threats becomes manifest. This process will proceed until everyone at the party has more than they can handle and passes out.

Then comes the derivatives tsunami that will drown them all in a sea of counterparty risk, an event which will be used to usher in a new Orwellian, corporatist fascist state, where the financial, manufacturing and other major industries are all nationalized.

We, and our European and Canadian counterparts, will all then resemble our fellow fascists, Marxists and dictators in Russia, in China, in the Middle East, in Asia and in South America, and the formation of world government will seem like the most natural thing to do, when everyone is on the same page, after the pesky, arrogant United States has been humbled into submission.

As we mentioned, this Excellent Bailout Bonanza, this Paulson Ponzi-Plan, is just a sideshow to distract everyone from the real issue, which is of course the Derivative Death-Star, with a Quadrillion Dollar mass that is about to implode, detonate, and morph into a financial black hole that will suck the entire world economy into its dark, massive, foreboding center.

The subprime debacle is just one of the many fuses leading into the gargantuan derivatives powder keg.
The subprime paper to be auctioned is little more than a catalyst for the creation of the real disaster, which are the credit-default swaps and interest rate swaps, an entangled, Byzantine labyrinth of opaque, unregulated counterparty risk that will be ignited by continuing corporate bankruptcies and double-digit interest rates that will be created by a hyper-inflated economy awash in bailout dollars which the Fed will have created out of thin air.

Foreign nations with dollar forex cannot possibly keep buying all the treasuries that will have to be created to fund all these bailouts because they are all experiencing rampant inflation, and printing more of their own domestic currencies to absorb the dollars necessary to purchase treasuries is no longer possible without risking social upheaval and revolution as hyperinflation destroys their economies.

This means that some, or even most, of the new treasuries that will be created by the Treasury and the Fed to fund the bailouts and deficits will have to be monetized, which is immediately inflationary.

M3 is about to explode as these many monetizations and the Fed's trillions in liquidity injections continue to flood the fiat money and credit system, which will continue in its cryogenic state despite the Paulson Ponzi-Plan that will now be implemented in an attempt to re-inflate the credit markets, which are the lifeblood of our debt-based, fiat money system, thanks to the cessation of the gold standard.

Everyone on Wall Street knows that the subprime paper is not the real problem.

The real reason they distrust one another, and will not lend to one another, is the unknown counterparty risk that will go into a plasma state when the Derivative Death-Star detonates.

It is the opaque, unregulated OTC derivatives market that they are really afraid of.

Due to the fact that you have 70 or more trillion of credit default swaps insuring 5 trillion in bonds, a ten billion dollar loss by a large corporation can on average morph into a 140 billion disaster of epic proportions that could wipe out several other companies, whose own credit-default swap counterparty risk would then ignite, in a chain reaction reminiscent of a thermonuclear explosion.

Remember, credit default swaps are not true derivatives with a zero net sum. They are insurance policies. But unlike most insurance, there are no regulators or loss reserves, thanks to Slick Willie Clinton and the Congress, which passed the Commodity Futures Modernization Act in 2000.

Worse yet, they can be used to insure property which the insured party does not even own. Hence, you can see why everyone trembles at the thought of this radioactive sector going thermonuclear.

Did you see how the stock market received the Paulson Ponzi-Plan?

They used it as an opportunity to de-leverage, which is pretty much all it was good for, and the Dow was taken to a new low in the process.

No problems have been solved, and we will continue on to our ignominious destiny with recession, depression, and a third world Banana Republic standing where we are all but irrelevant to the world economy.

No one will have anything but worthless paper to spend for foreign tangible goods.

Americans and Europeans are too stupid to understand the necessity of owning precious metals under these disastrous circumstances, and they will have little of value to trade for the tangible goods exported by the world's manufacturing economies, who have taken over America's role as the lead producer thanks to free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration.

The main purpose of the IF is to wise these dolts up, and save them from the planned destruction of our economy at the hands of the Illuminati.

This situation is survivable, but advance notice and preparation are the key to success.

Gold and silver are the only remedy for what now ails our nation, and nations around the world.

The Senate financial market rescue bill would temporarily allow the FDIC to borrow unlimited amounts of money from the Treasury Department in order to provide larger government deposit coverage that would extend until the end of next year, which really means forever.

This has all the earmarks of a banana republic.

The latest propaganda from the government and the Illuminist think tanks tells us that, treasuries are more secure than gold because they are backed by the US government and gold has a counter party risk by whoever is storing your gold as the counter party.

I’ve never heard any stupider comments.

The Fed has informed Bank of America to be ready for a one-week universal shutdown of the banking system, including access to checking accounts, savings accounts and credit cards.

This is why you need $5,000 in small bills in your safe at home and small denomination gold and silver coins.

Source Page: LINK



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Playing for Change





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Corrupt Banking System
This highly informative and easy to understand film covers just about everything that isn't taught in school regarding the corrupt banking system. It explains how these institutions get away with robbing the unsuspecting public by creating monetary policies designed to enslave society, while keeping the system in a perpetual state of rising debt:


1. Cartels Robbing the Public






2. How Money is Created







3. Money is Debt






4. Monetary Reform






5. Warning About the NWO




The Federal Reserve System Video
It describes the criminal setup and operation of the USA's unconstitutional, privately owned Central Bank and how it has robbed the American people. This criminal bankster cartel seeks to dominate the world through a monopoly on the creation of money itself.

1. The Federal Reserve System


2. The Federal Reserve System


3. The Federal Reserve System



Financial Black Hole The blind are leading the blind


I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."- Thomas Jefferson 1802


A big fat goose egg

The Paulson Plan means you are going to eat it all, Paulson wants to keep the corrupt greed machine going, A Wall Street Bailout plan means you will pay for their mistakes, Administration trying to scare everyone into accepting bailout plan, Buyouts now like zombie marriages, derivative Death-Star on its way,

The name of the episode, appropriately enough, is "The Paulson Plan." The capsule for the episode reads as follows: Hanky Panky and Buck-Busting Ben decide to renovate the Goldilocks Matrix, giving it a major overhaul, and attempt to redefine the word: "fantasy." Indeed, The Paulson Plan, so-called, may be the most vivid product of a fertile imagination since "Alice in Wonderland" and "The Wizard of Oz," which quite frankly are more believable than the reasons given for the implementation of the "The Paulson Plan."

Oh, we must help the poor sheople by easing the credit-crunch so they can get more loans and get deeper into hock (like more loans is what they somehow need), and so their savings accounts and pensions plans can be saved as we hyperinflate the dollar.

Oh, we are sooooo concerned about the welfare of the poor, helpless sheople! We have to save them from destroying themselves, because only we, the masters of the universe, know what is best for them. (Judy, get the barf-bag - quick!)

You just don't understand. The corrupt, graft-laden, insider-trading-saturated, fraud-based, Ponzi-scheming system that we have used to rip you off and steal you blind for over a century must obviously be saved so we can keep screwing you ad infinitum.

After all, isn't that what sheople are for, to be fleeced and sheered, fattened and slaughtered? You know your place.

You are all bleating, ignorant sheople, so come lick our boots - and give us the damned money!!!

Oh, there, there, now. We're sorry to take such an imperious tone with you. There, there, just give in to our demands like good little sheople and, in time, everything will turn out juuuuust fine --- NOT!

We know we have taxed you to death via the IRS and inflation of the money supply, we know we have manipulated all the markets and engaged in rampant insider-trading and loan fraud, thus stealing trillions of dollars of your hard-earned cash from you, we know we created Ponzi-scheme bubbles in dot.com stocks and real estate, we know we gave mortgages to people who could not afford homes in the first place, we know that we falsely rated stocks, bonds and derivatives and "cooked our books" to get you and our international friends to pay top dollar for crap, we know we lied to you about every economic statistic on the face of the planet, but, hey, we're all in this together now, and you have no alternative other than to accept our bailout plan (oh, let's call it a "rescue plan" instead) so that you can pay for all the economic carnage resulting from our debauchery.

And don't worry about any oversight when it comes to disbursing the piddling $700 billion, because it should be obvious, based on all the foregoing, that we can be trusted to handle the mere 700 billion as if it were -well - our own, which it will be if you approve the plan!

Oh, but perhaps we should not mention that - you might construe that as some kind of silly old moral hazard, hahaha. And never mind that we told you we don't know if the plan will work, because we know it won't, but we didn't want to upset you any more than you already are.

And have no concern that the 1.4 quadrillion dollar, roiling, boiling derivatives volcano is going to wipe out the entire world banking system with molten credit default swaps and interest rate swaps in a blaze of pyroclastic glory over the next several years, because, hey - we're working on it! And never mind that the problem is unsolvable. This is the United Goldilocks Matrix, where everything turns out juuuuust right!

Note first, how the Paulson Plan, which we will hereinafter refer to as PP (which is also a good acronym for Preposterous Poppycock), is a perfect example of Illuminist extortion aimed at stuffing a very rotten apple down the collective throats of our elitist marionettes in Congress, who, for the first-time in what must be over half a century, displayed some backbone in their denial of the initial proposal for the PP, albeit that their nixing of the PP was most likely motivated by political opportunism more so than by any true patriotism.

First, we saw Bear Stearns assassinated this March as an appetizer. The extortion got started with a bang on September 7, when Fannie and Freddie were nationalized, and then we were "shocked and awed" with a series of colossal commercial bank and investment bank failures, starting with the bankruptcy of Lehman Brothers on September 10, at which time Merrill Lynch also went under and was purchased by Bank of America.

Then AIG goes down on the 16th. Out comes the PP on the 20th. Then, to keep up the pressure, Washington Mutual implodes on the 25th and is acquired by JP Morgan Chase, followed by the vaporization of Wachovia on the 29th, which is acquired by Citigroup in the hours before the first vote on the PP is commenced. Now mind you that these banks have been insolvent from the outset of the credit-crunch in August of 2007, as we have reported to you over the past year.

And here we are, with Congress about to recess to campaign for reelection just before the vote in November, and suddenly the whole system, which until now has been kept in a state of suspended animation, comes down to scare everyone into accepting the PP. How blatant and churlish can you get?

Along the way, we also saw Goldman Sachs and Morgan Stanley give up their investment bank charters for commercial bank charters while getting bailed out with equity injections from various Illuminist companies. Then banks and other financial institutions in Europe suddenly crumble, after unofficial weekend rumblings, with official announcements of bailouts/nationalizations made, right on cue, on Monday to bolster the PP, including Fortis (Belgium, Netherlands and Luxemborg), Hypo Real Estate (Germany), Bradford and Bingley (UK), Glitner Bank (Iceland) and Unicredito (Italy).

Here is a little time line summarizing the action that occurred as a lead-up to the vote on the PP:
Desperate days

Nevertheless, the PP gets nixed by the US House of Representatives in a "shocker," and suddenly the Dow plunges 777 points as punishment for our Congress having the audacity to deny the Illuminati because they were getting inundated with calls from constituents who were against the PP, sometimes by as much as 300 to 1.

The message: give us the $700 billion or we will give you trillions worth of grief just prior to elections.

As a side note, while we are not into numerology, when you get a 777-point punishment for nixing a $700 billion bailout plan, may we suggest there is some sort of message there.

Also, as a side note, we had to laugh when Citigroup bought out Wachovia. It was like a zombie marriage made in heaven. The walking dead marrying another member of the walking dead.

It's like mixing C-4 with TNT.

What a conflagration that combination is going to suffer! We suppose, for now, that we technically have the Fed now leading the Big Five instead of the Big Four (the Big Five being JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley and now Citigroup).

We'll see how long that lasts. We expect to get back to the Big Four in the not-too-distant future. The Big Four will get vaporized later, as will the Fed, with everything being nationalized, as planned by the Illuminati all along.

Now we are hearing the moron, Illuminist bankers in Europe drone on about how doltish the Americans are for rejecting such an excellent plan. Then there is the Caligula Administration, whining that we don't like the plan any more than you do, but it must be passed or everyone will suffer great pain (as if that can somehow be avoided and as if they aren't drooling over the profits to be made when the money is doled out).

Now, the Senate leaders are getting in on the act, blaming the House for defeating such a wonderful plan and causing trillions in losses in the stock markets (even though it was really just the PPT withdrawing its support and strengthening the yen, thereby allowing the financial markets to fall under the weight of their horrendous fundamentals, as well they should when left to themselves instead of being manipulated by our corporatist, fascist, elitist scum and their financial anti-gravity machines).

The Senate is going to add some tax breaks to sweeten it for the House Republicans, but the House Democrats may then be put off. The Senate is thus trying to obfuscate what is the main issue - that the plan won't work, will ultimately increase our pain and fan the flames of hyper-stagflation and out-of-control, double-digit interest rates as everyone stampedes toward the exits, trying to unload their treasury paper all at the same time before it becomes worthless. Meanwhile, the bribes and threats are being thrown every which way as the Wall Street pirates and the usual government scalawags attempt to claim their booty.

This so-called rescue plan is a "disgrace," is "totally flawed" and there are many better, and far less expensive, alternatives, notes the respected economist Nouriel Roubini. Also noted by Mr. Roubini is the fact that credit and other financial markets have been deteriorating despite the prospects of approval for the PP, which shows you in spades that the plan won't work and will do little more than line the pockets of the Illuminists at the expense of the taxpayers who will get vaporized in the end. Rather than lay out all of his arguments in detail here, we provide you with the following web sites:

Is Purchasing $700 billion of Toxic Assets the Best Way to Recapitalize the Financial System? No! It is Rather a Disgrace and Rip-Off Benefitting only the Shareholders and Unsecured Creditors of Banks

The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever

As Mr. Roubini points out, the government's purchase of bank assets is the route the Japanese took, and this led to a two-decade recession/depression which they still struggle with to this day. We will now follow them into financial oblivion unless by some miracle the elitists are stopped from implementing the PP, or the Derivative Death-Star detonates before they can complete their final raping of the sheople. Instead of having a brief one or two years of moderate depression, we will end up with one or two lost decades and the worst depression ever created in the history of mankind, not to mention a corporate, fascist police state.

The PP will temporarily put off, and greatly magnify, the final implosion of our economy which will be worse by an order of magnitude as the direct result of the implementation of the PP.

The glowing, Quadrillion Dollar Derivative Death-Star insures that destruction is on its way. It is not "if," but "when."

When it explodes, in the aftermath, a financial black hole will form as global markets implode, and will suck everything into one final crushing moment of complete annihilation.

The PP will only serve to extend the period of elitist fraud, and they will continue to produce toxic waste and dump it on their sucker-dupes for vast fees, spreads and commissions as they speculate, gamble and re-leverage with all their newfound largesse, courtesy of the US taxpayer and the backing of nationalized Phonie and Fraudie along with the huge injection from the PP.

This all ties in with the Big Sting Two.

They have beaten down commodities. Now, all they have to do is have the PPT drive up the stock market with the puffery provided by the PP, and they win.

They will bail out through their dark pools of liquidity, Project Turquoise and Baikal, behind the public's back, and then use their sales proceeds to buy up all the tangible assets such as precious metals, commodities, real estate and domestic infrastructure at fraudulently manipulated and reduced prices.

Such drastically reduced prices will also become available at an ever-accelerating pace as financial and business corporations continue to collapse and go into bankruptcy.

After they have bailed out of all dollar-denominated paper assets, the Illuminati will let the stock and bond markets come-crashing down, the price of precious metals and other tangible assets will explode, they will clean up, and you, the sheople taxpayers, will get left holding the proverbial bag of worthless fiat paper for the nth time.


As the system implodes, the highly appreciated tangible assets of the Illuminists will be used to purchase property for pennies on the dollar as liquidations continue under the weight of what will be a complete systemic failure of the fiat money and credit system, after the elitists have had their fun.

That is their hope, but we doubt they can hold it up long enough to complete their final rip-off of the sheople.

This is why they fear the Derivatives Death-Star, and start mumbling to themselves every time someone in Congress brings that subject up. They must bail out before this Death-Star detonates, or they will be wiped out, hence their desperation to implement the PP.

They intend to leave nothing but burned out corporate husks, the Fed and the Big Five included, when the Derivatives Death-Star detonates, and then you, the sheople, will be asked to nationalize the entire banking system.

This is what happened to Germany in the aftermath of the Weimar Republic after hyperinflation had cut its swath of destruction. And we have relatives of some of the same players involved in the rebuilding of Nazi Germany as a fascist police state. Caligula's grandfather, Prescott Bush, helped finance the new Nazi fascist government through a banking concern he managed which was later shut down as an entity that collaborated with the Nazis. He was almost hanged for treason before his Illuminist buddies saved his neck.

And now GHWB and Dubya are working off the same playbook as history repeats itself.

The Fourth Reich is coming to a theatre near you, complete with Nazi death camps and a Nazi police state. As you watch the financial carnage going down all around you, perhaps you can now start to understand and appreciate that this is not business as usual and that we are not conspiracy quacks talking out of our back ends.

You had better wake up and take action quickly, or you will be caught up in a new Holocaust.

Now, let's take a look at some of the new blather that was added to the PP to bring about the so-called compromise.

First, we state categorically that the taxpayers will not make a single dime of profit from this scam. You are going to pay for this cess pool of toxic sewage at the "hold to maturity value," which means you will pay par less any principal reduction from payments received. And which paper do you think they are going to buy with your dollars?

Do you think it will be the stuff worth 70 cents on the dollar, or will it be the stuff going for 10 cents or less on the dollar? We will not even insult your intelligence by answering that question.

And if this toxic waste is worth pennies on the dollar now, what will it be worth when our economy finally comes down under the weight of our rabid profligacy, rampaging fraud, rampant speculation, raving lunatic leverage and roaring, outrageous deficits?

You guessed it. A big fat goose egg. You will eat the whole thing - guaranteed.




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"Around 1900, most inventions concerned physical reality: cars, airplanes, zeppelins, electric lights, vacuum cleaners, air conditioners, bras, zippers.

In 2005, most inventions concern virtual entertainment — the top 10 patent-recipients are usually IBM, Matsushita, Canon, Hewlett-Packard, Micron Technology, Samsung, Intel, Hitachi, Toshiba, and Sony — not Boeing, Toyota, or Wonderbra.

We have already shifted from a reality economy to a virtual economy, from physics to psychology as the value-driver and resource-allocator."




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Massive Gains Wiped Out in Markets Despite Everyone Being Warned

Summary: You were warned for several years about the financial crisis that is now upon us, five years of gains wiped out, Congress approves the Paulson Ponzi Plunder Plan, there is no intention of supporting the stock markets, credit default swaps are at the root of the big losses, Plan was approved only by adding 150 billion in pork to the legislation


Indeed, the party is over.

You have all watched in horror as five years worth of stock market gains have been vaporized since the peak on October 9, 2007, almost exactly one year ago, when the Dow closed at a bogus 14,164.53. Yesterday, on October 7, 2008, the Dow closed at 9,447.11, a loss of an astonishing 4,717.42 points, or 33.3%, precisely a one third loss in only one year.

The last time the Dow closed at a lower level than this was September 30, 2003, when the Dow closed at 9,275.06. As astonishing as these losses are, they should come as no surprise, especially to our subscribers, who have been warned that this was coming for several years running. All the gains for the past 8 plus years have been illusory, and the losses suffered over the past year are the direct outcome of an economy that has been based on nothing but smoke and mirrors ever since the dot.com collapse in 2000.

All of our financial markets have been propped up falsely by the illegal manipulators who comprise the Plunge Protection Team (PPT), also known as the President's Working Group on Financial Markets, and by false economic statistics so warped and inaccurate by virtue of hedonics that they read more like a fiction novel than the official statistics of what was once the world's greatest economic power.

Hey Congress. Guess what? You have all just been purchased, compromised, threatened and/or duped by the same satanic trillionaires who manipulate your puppet strings from their ivory towers in our evil shadow government.

You have sold out the American people, who you falsely purport to represent, by approving the Paulson Ponzi Plunder Plan (PPPP), a gift of $700 billion to the same elitist scum who have intentionally and malevolently ruined our economy to pave the way for their precious New World Disorder, after packing this traitorous piece of legislation with $150 billion of pork, no less.

The approval even occurred contrary to well established Constitutional procedure. You all had myocardial infarctions when the PPT took the Dow down 777 points on the day of your first vote on September 29 to extort your approval of their filthy bailout money, scaring your constituents by trashing their savings and pension plans.


You then turned the plan down only because you thought you might be lynched by constituents in November.

Then the PPT did this to you again, after pushing the Dow up almost 500 points the following day, by trimming off almost 500 points in the two days leading up to your second vote on October 3. The Dow was again pushed up about 300 points in the early going in anticipation of a positive vote on October 3, making you believe that you had to pass the plan to save the markets. Then surprise, surprise, the markets get trashed, after you approve the PPPP. This was the plan all along.

They led you to believe that the markets would recover if you passed the PPPP, but they had no intention of supporting the stock markets, which are now being sacrificed once again to support the dollar and the bond markets, and to suppress precious metals, all in anticipation of a worldwide reduction in interest rates. The Fed is going to lower rates again, and they said as much in their most recently released statement. And the world is going to follow suit very soon. Some, like Australia, have gotten a jump on the Fed. That is why gold and silver have been trashed the way they were. They wanted to do as much technical damage to gold, silver and their related shares as they could, thus lowering the bar and forcing the precious metals to rally from a much lower vantage point than would have been set by free and fair markets, without interference by the fascist players in the PPT.

Yes folks, that's right, the stock markets have yellow fever once again. You would think they would have become immune by now after having several severe cases over the past couple of years. We suspect that stock markets do not function quite like human bodies, unfortunately.

We have told you all along the gold suppression is JOB ONE at the Fed, and that the bond and derivative market is their source of power. The bond market includes treasuries, the perceived quality of which is directly related to the performance of the dollar. And that perceived quality is all-important in order to maintain the successful auction of treasuries to foreigners, and to keep their exports to the US competitive, which is especially important as trade slows due to a worldwide credit-crunch and recession. Knowing these priorities of the Illuminati makes it quite easy to figure out what they are up to.

So here is what they are doing: The idea is to boost the dollar to support the treasury market by instilling confidence in these dollar-denominated assets, increase the value of bonds by strengthening the dollar and by lowering rates, thereby improving balance sheets of financial institutions which own such bonds, and to simultaneously suppress precious metals by virtue of the strengthening of the dollar and the liquidations of metals and other commodities positions to cover margins generated by crashing stock values.

By falsely suppressing precious metals and boosting the dollar, the Illuminist hope is that the real damage that has been done to our economy and to our dollar by inflation of the money supply by the Fed, and by free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration, will be successfully hidden until it no longer matters whether such damages remain hidden or not. This is also why they won't admit to a recession.

The strategy then, is to use the stock markets and the oil and commodity markets as the sacrificial lambs for the bond and derivative markets, and as support for the dollar.

To accomplish this, the US stock markets are allowed to crash by the PPT which withdraws its support, allowing the stocks to fall based on horrendous negative fundamentals and de-leveraging. Everyone runs for treasuries, pushing bond prices up and rates of return down.

The US stock markets then usually cause a sympathetic explosion in the Japanese markets, and everyone in the Japanese and Asian stock markets start to sell their stock and run for the cover of Japanese bonds in much the same way as we run (stupidly) for US treasury paper in the event of a crisis.

The non-yen currencies, which are obtained via these stock liquidations are then converted to yen and used to purchase Japanese bonds and treasuries. This process strengthens the yen, thus starting the cascade of losses as carry traders run to cover their margins. As the carry traders bail out of foreign stock holdings, they convert the proceeds, which are in foreign currencies, into dollars, so that they can purchase US treasuries, where the money is then temporarily and (they think) safely parked.

In the current case, the PPT withdrew its support on Friday after the PPPP was approved. This, together with a worldwide banking and liquidity crisis caused Japanese markets on Monday to react badly to the US markets' treatment of the PPPP on Friday, and the yen became super yen once again, soaring from 105.76 yen per dollar to 101.26 yen per dollar, and from 146.118 yen per euro to a stupefying 136.782 yen per euro (that's almost 10 yen per euro in one day!)

With the bloodied carry traders in full retreat, the European and US markets also got taken to the cleaners on both Monday and Tuesday. So what happens as a result of all this financial carnage is that many traders located abroad, or even here in the US, liquidate their foreign stock holdings into whatever currencies they are denominated in, and then use that currency to purchase dollars which are then parked in US treasuries for perceived safety. That process bids up the value of the dollar, thus suppressing precious metals and increasing the attractiveness of US treasuries.

The increased demand for US treasuries also boosts their value, thus strengthening the balance sheets of Wall Street fraudsters, who now own a considerable number of treasuries, which they have received in exchange for their toxic waste. Meanwhile, institutional carry traders are also in a mad dash to cover their margins as well, and precious metals and commodities get liquidated to raise the cash needed to cover.

This is why we have recommended for over a year now that those dealing in precious metals and commodities maintain un-leveraged, long-term, stock index puts and yen calls, to counteract these PPT maneuvers by maintaining liquidity via these puts and calls without selling off their metals and commodities.

The oil market is a special case, not only due to its vast size, but because the hammering of oil prices is the only financial manipulation available to the Illuminati which has the effect of simultaneously suppressing precious metals while supporting the value of the dollar and boosting the economy. No other manipulation can accomplish all three objectives simultaneously as powerfully as oil can. Take a rate change by the Fed for example. If the Fed hikes, precious metals are suppressed and the dollar is boosted, but the economy suffers.

If the Fed cuts, the economy gets some relief, but the dollar gets hit and precious metals rally.

This special case for oil is due to the euro effect of petrodollars and the extensive use of oil in the production of goods and services. Because OPEC nations tend to spend their money in Europe, as opposed to spending it in the US, they take their gargantuan sums of petrodollars and convert them to euros, thus weakening the dollar. When oil prices decline, the flow of petrodollars is slowed and there are less petrodollars to convert. This process supports the dollar by lessening the number of dollars that are being sold to purchase euros.

The resulting stronger dollar then has the effect of suppressing precious metals. Any decline in the price of oil also decreases the cost of goods and services, thus supporting the economy and giving the appearance of less inflation. The perceived diminution of inflation also suppresses precious metals, which are often bought as a hedge against soaring oil costs.

Due to the special case for oil described above, we see oil going much lower unless some new military conflict to keep the phony "War on Terror" going is in the cards, such as an October surprise. If you are long oil, we strongly suggest hedging your positions. The coming decline in oil will help to boost resource stocks substantially by reducing the cost of production. Lindsey Williams could still be right about $50 per barrel oil, but for reasons different from those he was told, although we do not yet see oil going quite that low. We also ask Mr. Chavez of Venezuela what he is going to do now that oil is in the process of being slaughtered, considering that he has stopped all the gold and silver projects in his country just when gold and silver are due to explode to new highs. We warned these governments about having one dimensional economies. Russia and the Middle East will have similar problems if oil continues to drop as we enter recession and depression on a global scale.

Also note that a dramatic decline in commodities in general would have an impact similar to a decline in the price of oil, but with less power due to the smaller size of the non-oil commodity markets compared to the oil market and due to the lack of a pronounced euro effect. That is why the commodities sector has taken such a pounding recently, in furtherance of these elitist objectives.

Now hear this.

The dollar petered out when it hit 82, and that will be the last hurrah as planned rate cuts are implemented by the Fed.

The commercials have reduced their short positions in precious metals drastically in anticipation of these rate cuts and soaring safe-haven/inflation-hedge investment demand, coupled with physical shortages, decreased or sluggish production, a cessation of central bank selling, hyperinflation from bailouts, monetizations of treasuries and further increases to the money supply by the Fed.

And in case you did not notice it, lease rates for both gold and silver have soared to multi-year highs.

Gold lease rates are in the 2.42% to 2.88% range, while silver lease rates are somewhere between 1.35% and 1.68%. When you consider that some of the shorter-term rates were negative not too long ago, these new higher rates speak volumes for what the elitists anticipate for gold and silver prices in the future. If you want their gold and silver, you are going to have to pay some serious money for it, and also risk having to return it later at much higher prices if you sell it. What this means is that the use of leasing as a method of precious metals suppression is now history, at least for the time being.

The ability to suppress gold and silver in this meltdown financial environment has become impossible, and soon the elitists will be joining us in our quest to acquire more gold, silver and their related shares.

Congress was told by hundreds of economists that the PPPP would not work and that there were many far better, and far less expensive, alterative plans that could and should be tried before resorting to bailouts dripping with moral hazard.

But did they listen to the people who predicted that the current bloodbath would happen?

Nooooooo!

Instead, they listened to the same people who created this debacle to begin with, and who have denied that anything was seriously wrong for over a year now. These miscreants still to this day can not bring themselves to admit that we are in a recession! They were all hot and bothered when the Dow fell 777 points.

And now the Dow has plunged 1696 points from its September 26 level! What do ya think of them apples, Congress?! Apparently, everyone in the world, with the exception of our members of Congress, can see through the subterfuge of the PPPP, which attempts to use fairytale sales to overvalue cesspool sewage paper so everyone can pretend that the killer subprime and credit-crunch debacles never happened. Everyone will now be expected to play the ostrich. This is the most ridiculous thing we have ever heard in our over 40 years of financial analysis and commentary. It's the credit default swaps, stupid! Confidence will not return to the credit markets until the counterparty risk for credit default swaps and interest rate swaps is completely sorted out, which could take years, assuming it is even possible in such an opaque, unregulated environment.

If you were wondering what the PPPP is really all about, since the plan otherwise makes no sense as a mark-to-market value enhancer, this plan, coupled with another plan that the Fed and Treasury have put together, known as the Supplementary Financing Program, is, in essence, a stealth bailout of the Federal Reserve Bank itself, which was almost bankrupt.

Due to its various lending facilities, and especially its Term Securities Lending Facility for Primary Dealers where toxic waste is swapped for treasury paper, its balance sheet was either composed almost exclusively of toxic waste, or was on its way to becoming such in the very near future.

It could be that the PPPP was not so much a partial solution to the subprime debacle to improve bank balance sheets by the Treasury's purchase of toxic waste, as it was a convoluted bailout of the Federal Reserve.

The debt ceiling had to be raised by Congress to accommodate all the new programs the Fed had in mind, and $700 billion, a figure supposedly pulled out of the air, apparently is serving that purpose. We may be mere inches from having the Fed nationalized, thus jump-starting our transition to a corporatist, fascist police state. And look at the almost god-like powers being given to the Fed.

They can make you or break you if you need their largesse to survive. Remember, this is a private bank, totally unregulated by our government, which has been given this power via taxpayer funds, and this is probably unconstitutional.

Already the Fed has increased its Monetary Base by $150 billion over the past two weeks, and the Reserve Balances with Federal Reserve Banks also increased by a like amount over the same period of time, meaning that the Fed may be monetizing bank assets.

f so, this could be a true helicopter drop, which could produce hyperinflation, especially if it is loaned out to other banks and multiplied to $1.5 trillion of credit extended through the fractional reserve banking system.

These funds might also be used to help stem the tide of silent bank-runs. These increases in the Monetary Base and Reserve Balances were apparently made possible by use of the new Supplementary Financing Program, a program similar to what the Weimar Republic used, which allows the Fed to create cash assets out of thin air by auctioning off treasuries to fund its various facilities, which now include the purchase of unsecured commercial paper for non-banks and banks alike.

Such increases to the Monetary Base and to Reserve Balances are unheard of, and what they may have done here is they may have attempted to re-capitalized the banks, putting them in a position to start speculating all over again. The confidence problem still remains, however, so this is unlikely to work.

Do you remember the AIG bailout, where the Fed made an $85 billion loan to AIG guaranteed by the Treasury where the taxpayers were to receive an 80% interest in AIG as security for the loan in the event that AIG could not repay it? Well, now with the PPPP, you may get to bail out AIG, and you can forget about having an 80% interest in return. Hanky Panky will use the bailout money to buy all their toxic waste for far more than it is worth, and the proceeds will be used to pay off the Fed loan.

They had no intention of protecting the sheople taxpayers.

This was just a stopgap measure to keep the credit default swaps from imploding so they could dump the problem on the sheople later after the PPPP was slam-dunked down their throats by their traitorous representatives in Congress.

AIG shareholders could get a break if the PPPP is used to buy their toxic waste and get them out of their debt to the Fed, but then the credit default swaps are still an issue and losses from these derivative insurance policies may be too big to buy out through the PPPP.

AIG could potentially take down the entire European banking sector due to swaps it had insured on European banks.

To say that this is a huge problem would be the understatement of the century.
***
Wow, look at them fire up that Goldilocks Matrix as reality is scoffed at, and illusion becomes king, just as Dr. Stan Monteith likes to say as he starts each broadcast for Radio Liberty.

In the end, all these large banks will come crashing down like a ton of bricks because they are irretrievably insolvent, and then they, along with the privately owned Fed, will be nationalized and merged into one super-entity, which will be given all regulatory power over the financial industry.

They will no longer have to kill off the small fry by creating catastrophes. They will simply regulate them out of existence until their banking and financial interests have achieved god-like, dictatorial power.

They will allow those who want to play the game by their rules to eke out an existence, while all others get vaporized. Once they control all financial matters with an iron fist, the Constitution will become irrelevant because the people will no longer have any power to exercise except by revolution, and we can assure you that a revolution is going to come, and soon.

The arrogant Illuminists are in for a big surprise as they continue with their evil plans to enslave and dominate the sheople in an Orwellian police state of feudality.

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