I’m sorry about the slow posting lately but hope the new computer will arrive soon so we can get back up to speed again. I am going to introduce new services here, too, at the same time. Looking forward to expanding operations! Back to the news, before we look into more of the IMF report, we shall pause to look at the news. The G7 banking system is in full collapse. No government can pull it out because the fundamentals are all wrong and must first be corrected. This means, no more ‘Japanese carry trade’ deals to fund wild US trade imbalances.
AIG Told U.S. Failure May Cripple Banks, Money Funds
American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.
AIG needed immediate help from the Federal Reserve and Treasury to prevent a “catastrophic” collapse that would be worse for markets than the demise last year of Lehman Brothers Holdings Inc., according to a 21-page draft AIG presentation dated Feb. 26, labeled as “strictly confidential” and circulated among federal and state regulators….
The document doesn’t say which other companies have benefited from AIG’s repeated rescues. Goldman Sachs Group Inc. and Deutsche Bank AG were among at least two dozen financial institutions that were paid $50 billion from the bailout funds received by AIG, the Wall Street Journal reported, citing a confidential document and people familiar with the matter whom it didn’t identify.
How dare AIG and our ‘government’ keep this important information ‘strictly confidential’? This infuriates me. These matters are now public matters. This is because I and you and everyone is now a very major shareholder in this organization. Because I own stock in AIG, I demand a full accounting…for all the shareholders!
Instead of the Board of Directors meeting in secret, I demand all meetings from now on be held in public, on TV. I also demand that all written records of my company be opened so all of us shareholders can see what is going on and what went wrong. I also demand voting rights in AIG.
Mr. Giethner and his ilk think they represent me. They do not. They are not the majority shareholders in AIG. They may represent my vote but they are not me. Therefore, I cannot decide what my own stake is unless I have information! And we need lots more information besides a bunch of gnomes whining that they need even more money from me and my fellow stakeholders!
We have no verified list of where your or my money is going. We still don’t know how much money was poured down Goldman Sach’s yowling mouth or how much the JPirates Morgan heisted. We don’t know how much flowed to the Swiss gnomes or the German Wehrmachtliche Bankers. Until Geithner and his buddies force AIG to reveal vital financial information, I say, LET THEM GO UNDER. Drown them like you drown witches in Medieval Europe. They don’t deserve handouts, they should be pushed off the cliff.
The BIS said European and British banks have relied on an “unstable” source of funding, borrowing in their local currencies to finance “long positions in US dollars”. Much of this has to be rolled over in short-term debt markets. “The build-up of large net US dollar positions exposed these banks to funding risk, or the risk that their funding positions could not be rolled over,” said the BIS.
The report, entitled “US dollar shortage in global banking”, helps explain why there has been such a frantic scramble for dollars each time the credit crisis takes a turn for the worse. Many investors have been wrong-footed by the powerful rally in the dollar against almost all currencies, except the yen…. The BIS said the total “funding gap” in dollars was around $2.2 trillion at the peak, when money market liabilities are included. This had fallen to around $2 trillion by the time of the Lehman Brothers collapse. The data is collected with a lag but it appears that there are still huge dollar liabilities to be covered. Simon Derrick, currency chief at the Bank of New York Mellon, said the implications are obvious. “The global bullion of the last eight years was funded on dollar balance sheets, so the capital destruction we’re seeing leaves banks starved for dollars Dollar is clearly going to appreciate a lot further,” he said.
Later, I will go through the entire BIS report, I hope. First of all, note Mr. Derrick: his bank is one of the secretive banks which get to run our currency system from behind the facade of the Federal Reserve. Look at how he talks about our stupid IOU pieces of paper we call ‘dollars’! ‘GLOBAL BULLION’???? HAHAHA..
So, via the magic of the gnomes, we turn stupid pieces of paper that are held against DEBTS into ‘bullion’. Bullion is all about something totally different: the exact opposite of paper money. Gold!
The French word for soup is the same as the old French word for gold that hadn’t been turned into coins: to boil. When gold is melted prior to being restamped into new issues, it is melted and the previous imperfections that were insidiously added to stretch gold further are removed, one has ‘bullion’ which is purified gold, not gold coins.
What the hell are these gnomes doing, calling pieces of paper with absolutely no determined value, ‘Bullion’? This is one of the many verbal frauds these lying, cheating, sniveling Gollum clones pull on us all the time. The ‘capital destruction’ we are seeing is merely a bunch of people and things going into bankruptcy. This is because things have zero value to gnomes but OWING MONEY TO THEM IS VERY PRECIOUSSSSSSS. They want us to be constantly paying interest on many different things and when they put on top of us, more debts, they collect more fees and get richer.
This desire to put more debt on top of all possible earthly things is finite. So the gnomes created the Alternative Universe where they conjured up this creature I call ‘the Derivatives Beast.’ This thing gave them infinite profits and it grew at an ungodly rate. It grew and grew in size and enabled all the gnomes to use it as a vehicle to get more and more money and as it grew, it enabled them to issue more and more debts.
Adding to the fires was the Bank of Japan. The Japanese carry trade enabled several trillion dollars in debt to be issued. This dollar debt now is vanishing. This is why there is a ‘shortage of dollars’ even though there are trillions of dollars….all sitting in the central banks across the entire planet. I figure, it is around $4 trillion. Demanding the US issue $2.2 trillion in debt dollars is insanity! This whole thing is totally insane! They know it is insane which is why they talk about psychology so much. If we trust them and believe their lies, all this magic money will work. If we demand to see the books, the funny money vanishes and we see only a bunch of Madoffs.
If there is a ‘dollar shortage’ then all we have to do is demand all the central banks cough up the trillions of dollars they are holding. HAHAHA. This is the last thing the gnomes want. This is not what the BIS wants. This is not what the central bankers want. Quite the opposite.
Treasury officials are also still scrambling to decide details of their plan to buy up as much as $1 trillion in toxic assets from the nation’s banks, one month after being widely criticized for presenting a plan that lacked any specifics on how it would work…
Many financial experts estimate that the nation’s banks are holding as much as $2 trillion in troubled assets, most of it tied to mortgages. By contrast, the Treasury has less than $300 billion left in the financial rescue plan that Congress reluctantly approved last year….
“Their huge problem is that the American public is not willing to accept large losses for large financial institutions,” said Vincent Reinhart, a former Fed official and senior fellow at the American Enterprise Institute, a conservative research and lobbying organization. “Everything they are doing is about having the smallest possible footprint on the federal budget. They don’t want to engage the Congress and they don’t want to engage the American people in that discussion.”
That still left many positions, including the No. 2 post at Treasury, without even a nominee…
To some extent, Mr. Geithner’s staff problems stem from his own failure to pay more than $32,000 in self-employment taxes. That slip-up not only embarrassed the Obama administration, which had prided itself on nominating people with unassailable backgrounds. It also nearly torpedoed his Senate confirmation, and caused White House officials to slow down the background checks for dozens of other nominees.
The ‘footprint’ is the size of Godzilla’s feet. It is smashing cities, destroying nations. Mr. Geithner’s problems are of his own creation. This ugly little toad of a man should go back to the IMF swamps from which he hopped. I hope to never see him again. How DARE he run the IRS! How DARE he claim he can fix our exotic messes when he couldn’t even have the wit to hire an accountant.
Yesterday, I didn’t post because I was visiting my accountant and arranging future work with him. Over dinner he said, we have to get rid of Geithner. As an accountant, he is outraged with the guy. He could have done Geithner’s taxes easily. We can’t have deadbeats running the Treasury nor can we have tax cheats running the IRS. The hopes that this will be overlooked by all of us harried taxpayers is insanity. We are seething with collective fury.
The background checks are scaring off all the criminal class. They hoped to simply hop into the Treasury and continue looting it like the Republicans did for 8 long years. Instead of inspiring hope and change, nothing is changing except the names on the doors. This is why we must pressure Obama and his group to be more careful. Not that the GOP has anything to boast about here. They are total crooks.
Now, on to England:
Sources close to the central bank have exclusively revealed to the Daily Telegraph that it is expected to disclose that returns paid on branch-based instant access and notice accounts, individual savings accounts (Isas) and bonds are all now the lowest since its records began. As savings rates hurtle towards zero per cent at breathtaking speed amid the credit crisis, savers are facing the prospect of actually paying banks to look after their hard-earned cash, politicians and financial experts warned. Michelle Slade, a spokesman at the personal finance website Moneyfacts, said: “The average rates from the Bank of England make grim reading for savers. It is quite possible that banks may now start charging savers to look after and manage their accounts.”
Savers will go to bullion. This is because paper has no benefits. Instead, the entire banking system hopes to recapitalize by seizing all savings. The ZIRP system is a rip off. It is rather funny, actually. When the Bank of England and the Federal Reserve both eliminated the gold standard, they left a back door open to savers who can park their wealth in the bullion markets.
Of course, this is no more safer than other markets. Gold can lose value, swiftly and for many years. We just saw it swing by over $100 an ounce in just one month. This is due to the big hedge funds and the bankers the AIG are handing out billions to, were shorting the gold markets this month in the hopes of snagging the value of relative wealth from savers who are being forced by ZIRP to run to gold! Of course, we can’t see these shorts until it is too late. They intend to be moving in tandem, knowing what each other is doing, while we move in the dark, hoping to survive.
Aside from this, savers who can save are frantically paying off debts. Since there is ZERO gain from putting money in a bank, we have to get rid of any holes in the bucket and that means, paying off any and all debts including getting rid of the mortgage. If the banks won’t pay a fair price for our savings, we should shut down all business with them.
This means, only deadbeats will be paying mortgages. Or rather, not paying them. 30% of last month’s loans to homeowners that was shoved into motion by the government are already behind! They are defaulting IMMEDIATELY. Namely, the anxious bankers, seeking fees and future value, handed one third of these mortgages to utter deadbeats who then passed the money to someone else and then went bankrupt! This is criminal and the bankers who gave the loans and the borrowers should all be put in prison.
Goldsmith was one of 750 people who showed up Wednesday to apply for casino dealer jobs near Denver. Another 550 applied on Thursday.
The applicants were going after 90 spots in dealer school.
Earlier on Wednesday, Goldsmith had interviewed for a job as a cable TV installer. They were his first job interviews since losing his job.
He says that, at first, he spent a lot of time on the Internet looking for work. He also contacted executive headhunters but was unable to find any leads in the engineering field. So he decided to expand his search into other areas…
In a November referendum, Colorado voters approved a measure to expand betting limits at casinos in Colorado from $5 to $100 and to add the games of roulette and craps. The new rules will also allow the casinos to stay open 24 hours a day. They currently close at 2 a.m. and open at 8 a.m.
Years and years ago, I warned the US to not go into gambling to fix the stagflation years. Instead of building export industries, we called this financial disease, gambling, an ‘industry’ and worked hard to protect it and develop it. At first, knowing that this is pure evil, the government claimed, the money from gamblers would only go to the elderly or schools.
They said it would be very little in size. Once the gambling camel got its nose under the tent, it moved in. Gambling has now spread like wildfire across our nation. Since gambling addicts can’t tell time, there are no clocks in these windowless hell holes. These places resemble caves. They are actually physical representations of the Cave of Wealth and Death. Lady Luck rules there. She is a bitch. And the eldest of all the gods.
Gamblers cease caring about Life. They focus on trying to get Lady Luck to smile on them so they can get rich. When they succeed, they don’t get rich. Nearly always if not always, gamblers lose whatever wealth they gain via even more gambling. It takes an iron will to walk away from gambling. This is because it is an addiction. We may as well set up heroin centers and make money off of them.
Having our engineers end up running gambling tables is a ridiculous use of talent, time and intellect. We are reducing ourselves to gnomes, spending our free time in these unnatural caves, wasting our time, trying to beat the House in a rigged game. Indeed, the odds of winning are declining as desperate Mafioso gambling houses struggle to make greater profits. So we won’t win much of anything there, either. Time to go outside, face reality and deal with what Mother Nature has dealt us: we must work in the real world, making real things and doing real business.
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