Picture 2
Tourists in the old Senate Rotunda Room, DC, Sept. 2008


People who want to keep illusions will keep them until they collapse.  Even then, will cling to the broken bits for as long as humanly possible.  The US is going bankrupt.  There is no getting around this.  None of our trade partners want us to go bankrupt so they are bankrupting themselves, trying to prop us up. But we can’t be propped up much longer.  Stresses are showing up in bond markets now that China is running its own government in the red.  The Obama choices for dealing with our collapsing finances are not looking very good at all.  And free trade runs on its greased rails while major value-added, high paying jobs vanish overseas.  And US military spending is rising, not falling.  Another stress point that is being made much worse by Obama’s neo-con war policies.


U.S. Debt Default, Dollar Collapse Altogether Likely — Seeking Alpha

The regulatory black holes into which sanity and reason disappear on a daily basis are soon to collapse under the mass of their sheer size. The circle jerk going on among G7 governments has to end – the steady advance of gold, even in the face of a managed price, exposes the real value of the U.S. dollar, as opposed to its apparent value expressed in the dollar index….

Number one among the indicators favoring this scenario is what is happening in the U.S. Treasuries auction market.

Last Thursday, an $30 billion auction in five-year notes failed to stir the interest of traditional primary dealers. The auction itself was saved by an anonymous “indirect” bid.

Buyers are discouraged by the prospect of what is expected to amount to $2 trillion total issuance for the full year of 2009. The further out the maturities on notes, the more bearish the sentiment towards them. The only way to entice buyers is through the increase in yields.

But with yields at 1.82 per cent, five-year notes were met with a demand for 1.98 times the amount offered – the lowest bid-to-cover ratio since September. A sell-off in treasuries began in earnest upon the conclusion of that auction.

The U.S. Federal Reserve suggested last week that it was going to step up its treasury-buying activity, and the mainstream media interprets this as a form of market support. What it actually is evidence of growing anxiety and desperation on the part of the Fed as the realization dawns that demand for treasuries is progressively evaporating. 

Bernanke is ‘anonymous’????  HAHAHA!  The auction was saved by having the Treasury sell to the Federal Reserve.  We can see this clearly in the graph below.  The latest intervention shows clearly.  The graph, which had an  upper limit of only $10 billion in 2000, went to $200 billion, then $400 billion and now, to a $1 trillion in less than four months!  This is amazing.  It is also unsustainable.


Fred Graph

The total borrowings by the biggest banks shot up to half a trillion and are now rapidly falling.  But the above graph shows that something is very fundamentally wrong, despite this shocking infusion we see below.  Note how the stock crash and collapse of many savings and loans in the late 1980’s barely shows as a blip.  A year ago, it looked really big.  and the blip for 9/11 was huge until last year.  Now, it is barely visible!

Total Borrowings of Depository Institutions from the Federal Reserve

Same thing with the monetary base graph: the shocking infusions have altered the terms of the graph so badly, what were once considered to be big jerks upwards or downwards are not insignificant.  Flattened out due to the violent change in the scale used to track things  Over the past decade, the monetary base rose from slightly above half a trillion to three quarters of a trillion dollars.  Then, at the end of 2008, it shoots to the moon, heading up to $2 trillion.  This is just incredible.  The collapse of Lehman Brothers and the unleashing of the trillions in credit default swap derivatives continues to unwind, catastrophically.

Board of Governors Monetary Base, Adjusted for Changes in Reserve Requirements

Currency in circulation dropped only slightly in the first half of 2008.  Then took off.  One commentator online said, ‘Benanke must love hockey stick charts.’  

Fred Graph

U.S. Debt Default, Dollar Collapse Altogether Likely — Seeking Alpha

 The announcement that the CFTC was about to become the target of a regulatory overhaul supports this theory. Consistent with his unfortunate proclivity to hiring foxes to guard chickens, Barack Obama’s choice for CFTC commissioner Gary Gensler was the undersecretary of the U.S. Treasury when the Commodity Futures Modernization Act of 2000 was passed, and is one of its architects. This was the piece of legislation that was put forth to appease the opposition to “dark market” trading in certain OTC derivatives first noisily derided by CFTC commissioner Brooksley Born in 1998.

Ignoring Born’s admonishments with this act, it exempted credit default swaps (CDO’s) from regulation, resulting in the somewhere between 58 and 300 trillion dollars in value presently under threat if the positions were to be unwound. Because of their unregulated status, counterparties in the largest transactions can simply “roll forward” contracts, instead of the losing party in the transaction covering their loss with a transfer of money. It is this massive “nominal” value that could be the Achilles heel of what’s left of the U.S. banking system, and by extension, the U.S. dollar. 

Anyone connected in any way, shape or form to the Derivatives Beast should be arrested, put on international trial and then executed.  Seriously, these irresponsible people who made this monster possible are far, far worse than John Law, who can be forgiven for not understanding what he launched.  For he was one of the earliest people to create a bubble via paper values that were wildly bid upwards.  Today, there is absolutely no excuses.  


I believe that the reason why all these ‘experiments’ are done over and over again is due to human nature: the temptation to raid the Cave of Wealth and Death is very great.  There is no intellectual system on earth that can prevent tricksters from playing scams except for one: the law.  If all such things are outlawed and the perpetrators are arrested and severely punished, the fear of the long arm of the law will prevent people from being tempted.


This means, when an entire system crashes, utterly, the authors of this system are to be severely punished.  Just as Mao punished the corrupt people who drove China into penury, that is, the alien invaders as well as the local upper classes who enabled this or didn’t do anything rational to stop it, were either killed or driven out.  Then, since Mao screwed up, his wife was put in prison where she committed suicide.  There are regular, rather violent purges in China.


If you screw up like the milk sellers, you get executed.  Get caught taking bribes, you are shot dead.  Naked fear has its function.


Obama is putting into place the same crew that destroyed our finances.  Not that the GOP can wave any flags here!  They saw that Clinton and the GOP Congress balanced the budget and thought, this was time to go party!  And undermined the tax code so badly, we instantly went into the biggest deficits in our history.  


Blacklisting Progressives: The Untold Story Beneath the Daschle Headlines |

As every newspaper in America has been happy to report, Daschle worked with venture capitalist Leo Hindery after he left the Senate. Hindery was a top economic adviser to John Edwards and later to Barack Obama, and many had floated his name for U.S. Trade Representative or Commerce Secretary. Now, though, that won’t be happening, as anyone mentioned near the Daschle flap is being shunned by the Obama administration.

But is that really why someone as accomplished as Hindery was never seriously considered for a top economic post in the administration? The media and the Obama administration would like us to believe yes – but the answer is no. It has far less to do with the Daschle situation and far more to do with Hindery’s progressive economic ideology….

And now we see that’s not an accident. Though Obama won states like Ohio, Pennsylvania and Indiana on promises to challenge Wall Street and reform our trade policies, there has been a deliberate and calculated effort to stack the administration with the very Wall Street Democrats who created the problems he lamented, and shun those who have been fighting the good fight.

Nothing, absolutely nothing is bigger than the ‘free trade’ issue.  This is life and literal death for most Americans.  Sure, we love our cheap TVs, our cheap computers, our cheap stuff which now fills our homes.  Who doesn’t?  But we are now paying the piper.  The downward trajectory of US workers is now an ever-steepening curve.  US auto unions are dead.  And few other industries have much of a union, either, due to the laws allowing ‘lock outs’ and replacing striking workers, permanently.  Thanks to Ronnie Reagan.


There is no one, not one soul, in the Obama administration that is against ‘free trade’.  In the mainstream media, there is not one, not one solitary media outlet or expert except for Lou Dobbs, that is anti-free trade.  And the mainstream media mocks Mr. Dobbs or worse, ignores him.  He is like a bit of sop thrown to the masses so they can’t be accused of totally locking out anti-globalization people.  The anti-globalization marches are history, too.  Not due to lack of interest but naked fear.  Nothing gets the establishment more angry than these peaceful demonstrations.  Beating and killing demonstrators all over the globe has stopped these demonstrations.


Which are being replaced by outright rebellions or a surly public removing itself from politics and simply giving up, like in Japan, or sitting at home, fuming, like in America.


The “defense cut” falsehood from The Washington Post and Robert Kagan – Glenn Greenwald –

So Obama proposes that the U.S. spend $40 billion more this year than it spent last year. 

Despite this, the right-wing noise machine, led by Fox News, is gearing up to accuse Obama of “cutting defense spending” (Fox headline:  “Defense Official:  Obama Calling for Defense Budget Cuts“).  And today, The Washington Post publishes an Op-Ed from Robert Kagan — who, it must be acknowledged, is a decorated member of the toughest and most noble warrior-family in America — which is headlined:  “No Time To Cut Defense,” and which repeatedly accuses Obama of plotting to slice military spending:

Well, time for my regular chant:  Arrest Obama!  Arrest all the Congressional leaders!  Charge them with treason!  Arrest all the media owners!  Arrest the heads of the GOP and charge them with bankrupting America and treason!  And arrest Rumsfeld and charge him with treason for sitting on his ass during 9/11.  And deport Chertoff.  The man who is never in the news and who is a Beria clone as well as an alien.  


How dare anyone raise military spending?   It is the most expensive on earth, it equals all the earth’s spending on military!  And do we get any bang for our bucks?  No!  On 9/11, our entire system sat idle as America was attacked for hours, repeatedly.  Of course, the gloating afterwards about how this utter failure would be a ‘New Pearl Harbor’ and thus, unleash massive overspending for the military/industrial complex: arrest everyone who gloated!  We know who they all are. – Air Force neglects domestic mission, faces shortfall of fighters, GAO finds

The Air Force may face severe aircraft and personnel shortfalls in the near future that could present significant challenges to its ability to protect domestic airspace, a government watchdog agency has found. 

The little-publicized findings by the Government Accountability Office (GAO) will likely stir a tug-of-war between the Air Force and a number of factions in Congress over whether the Air Force should buy cutting-edge — but expensive — fighter jets, such as the F-22 Raptor and the F-35 Joint Strike Fighter, or continue buying and modernizing older aircraft, such as F-15s or F-16s. 

We had perfectly fine aircraft here in the US on 9/11 and they all sat idle for the first two hours of the attacks!  We have a zillion aircraft overseas, protecting Europe and Japan and dropping bombs on helpless, poor peasants in Afghanistan and now, illegally, in Pakistan!  We have planes protecting everyone including regular flights right over my house at treetop level.  Most of which are utterly useless, as we saw in the past.


9/11 still has not been thoroughly or even barely investigated.  Arrest Bush and Cheney and Rice and waterboard them until they tell us the truth!  HAHAHA.  Won’t happen, of course.  Thanks to various DARPA thought-control efforts, any talk about this gets instantly derailed which is why this topic is very seldom mentioned anywhere, anymore.  I am masochistic. 


Bring it on!  Everyone be forewarned:  subtle mind control is difficult to detect if one is trying too hard to see it.  It is one of those things that require not looking directly at it, to see it, obliquely.  But the worst conspiracies are right out in the open.  And we are seeing it at work right now.  Which media giants are attacking the tremendous growth in military misspending?  Which media giants are calling for a reduction in military spending, closing bases and protecting the US better?  Which media giants are calling for the state governments to be bailed out while not bailing out the banks?


Not one!  Cut off the banks, cut off the Pentagon and we shall see a sudden improvement in our situation, hell, we might even save ourselves!  






P.O. BOX 483

BERLIN, NY 12022

Make checks out to ‘Elaine Supkis’




Filed under free trade, money matters, war and peace



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