Josh was supposed to email me by Saturday, 8am. I still haven’t heard from him and am increasingly worried. So much for the US democracy being something less draconian than China’s non-democracy. Bear Stearns and AIG dumped $74 billion in bad bonds onto the Federal Reserve which is now pretty much telling us, this junk is garbage so the Treasury has to buy it, now. ARREST EVERYONE. Including Paulson who pretended, this all would cost only $700 billion. It turns out to be several TRILLION. And the IMF/G7 had their super-secret 5am meeting and got NOTHING except ULTIMATUMS from the Communist Chinese.
Reading the Federal Reserve/Treasury story makes my head hurt. It hurts because this is so damn stupid. Why do we have a damn Federal Reserve when it is merely a fiction attached to the Treasury whereby the Treasury is really the Federal Reserve only we get to pay a bunch of FOREIGN FINANCIERS a percentage whenever we use the Federal Reserve as our Treasury? And this money LEAVES THE US and goes into the pockets of a bunch of damn aliens….CUT THEM LOOSE, DAMN IT.
Sigh. Most Americans are kept deliberately unaware of the fact that the Fed is a money rip off scheme set up to line pockets of aliens who want to leech off of us and are using this money to bribe politicians so this stupid game of theirs won’t end. As we keep saying, End the Fed.
In its biggest disclosure of the securities accepted to stabilize capital markets, the Fed said yesterday it had unrealized losses of $9.6 billion on the assets as of Dec. 31. The bonds, swaps and notes were taken in from Bear Stearns, once the fifth-biggest Wall Street firm by capitalization, and AIG, which had been the world’s largest insurer.
The losses on securities backed by assets such as home loans in Florida and California signal that U.S. taxpayers may be forced to reimburse the central bank through the Troubled Asset Relief Program, according to Christopher Whalen, managing director of Torrance, California-based Institutional Risk Analytics.
“The numbers basically confirm that Treasury is going to have to take some TARP money and reimburse the Fed,” said Whalen, whose financial-services research company analyzes banks for investors. “It is essentially up to the Treasury to get the Fed out of this.”
STOP THE DAMN PRESSES!!!! THIS NEWS MEANS THE FEDERAL RESERVE IS BANKRUPT!!!!
The central bank lent $2 trillion to financial institutions and hasn’t disclosed information about most of the collateral backing those loans.
How DARE the DAMN bankrupt Federal Reserve play coy with $2 trillion in collateral loans they handed of to a bunch of bankrupt PIRATES and GNOMES who bankrupted the entire planet’s monetary systems thanks to the damn, damn, damn Derivatives Beast????
Seriously, why wasn’t Bloomberg’s headlines this: ‘FEDERAL RESERVE IS BANKRUPT!’ For if I read this story correctly and I am, it is bankrupt. How simple is this? The Fed cannot lend money anymore. It is now borrowing from the TARP funds that it lent!!!! And the US offered $100 billion to the damn IMF???? From where?
Is the Office of the Comptroller of the Currency joining up with the Secret Service which is in charge of counterfeits and bank robbers…and going over to the Federal Reserve and arresting Bernanke and his gang? HAHAHA. Arrest them all!
This is the FINAL END of all the STUPID DAMN GAMES the Federal Reserve played since 1914. They are obviously a failed experiment and it is time to pull the plug on it and anything slimy attached to this criminal operation.
The International Monetary Fund will sell bonds as a way to raise funds to lend to struggling nations, the head of the organization said Saturday, in a victory for developing countries.
They know the $100 billion from the US is not real money or even credible fakes in lieu of real money. This is probably why they had that damn 5 am meeting and why Josh was terrorized by Homeland Security which is an arm of the alien bankers.
Emerging economies such as China, Brazil and India pushed for the move as an alternative to providing longer-term loans to the IMF. Those countries want a greater voice in the institution before providing additional resources.
THE DAMN IMF IS BANKRUPT. They have been reduced to selling bonds? What are bonds? They are BONDAGE. This is debt. Debt that is the old fashioned ‘perpetual’ debts that are always ‘short term debts’ only they aren’t they pile up on top of each other just as we saw in ZIRP Japan, then in Merry England and now, the US empire.
IMF Managing Director Dominique Strauss-Kahn said China and other countries have expressed interest in purchasing the bonds. The IMF has never issued bonds before, although the idea was explored in the 1980s.
HAHAHAHA. Oh, yes. They will buy these perpetual bonds. The closer to zero the interest rate, the bigger the return when brought to maturity and then, turned over into a new, bigger loan. I often wonder if the Chinese might have been a tad slower in figuring all of this out if only they never met my family. Whatever, when Zhang told me, China would be the world’s bank in 50 years, I thought this was impossible.
The move, announced after the IMF’s annual spring meeting, indicates the world’s leading economies are having difficulty following through on a pledge made in London April 2 to boost an IMF emergency lending facility by $500 billion. This is due to being bankrupt. The bonds will contribute toward that goal but will provide shorter-term financing than the loans that Japan, the European Union and the United States have promised.
China is anticipating immense inflation as the US dollar collapses so they will lend us money only on the very short end of the curve. One year or less, eh? Wow.
The Group of 20 nations, which includes wealthy and developing countries, pledged in London to provide a total of $1.1 trillion to the IMF and other international lending institutions.
After that meeting/riots was done, the Dragon went home and waited for some kow towing from Obama and the West in general. Did this happen? No? Indeed! The campaign to rip China apart continues, unabated! Far from apologies, we continued our arrogance and demanding demeanor. So off comes the gloves.
“The major emerging markets have made it clear that they … will no longer be pushed around by the advanced economies,” said Eswar Prasad, an economics professor at Cornell University and former IMF official. No kidding! While “the net effect” on IMF resources of loans or bond sales is the same, Prasad said, “the symbolic difference between these two types of contributions is huge.”
About as big as the Pacific Ocean, I dare say. The US wants to print fake money and then have the IMF lend it at INTEREST. China was asked to hand over dollars they gained via trade and hard work and then the interest from that would go to the IMF which is run by the US. HAHAHA. And China said, ‘No way.’
Meanwhile, more than 100 demonstrators angered by how world leaders have handled the economic crisis took on police outside the headquarters of the IMF and World Bank.
Authorities used batons and pepper spray when activists tried to march onto a prohibited street, and several people were pushed to the ground by police. The protesters swarmed officers unexpectedly, and police had to respond, said D.C. police Capt. Jeffrey Harold.
This story of the demonstrators is hilarious. For the actions and numbers get smaller and smaller as the hours pass. The right wing ‘tea party’ demonstrations taken over by foreign-owned Fox TV got lots of coverage, most of it designed to minimize or mock the demonstrators. But the left wing demonstrations are far scarier for the ruling elites. Because, unlike the right wing ones which were stupidly done, these demonstrations on the left go for the jugular of the international financial system.
The Group of Seven finance ministers — a club of wealthy nations made up of the United States, Japan, Canada and the major nations of Europe — reached no new agreements during their gathering in Washington. I bet they were yawning too hard due to meeting at 5am and being disturbed by Josh standing outside, acting like the citizen of a ‘free’ democracy. Pledging to continue hammering out the details of a $1.1 trillion plan made by world leaders in London earlier this month to combat the global recession, they said they were making progress on specific commitments from a variety of nations to boost funding at the International Monetary Fund by hundreds of billions of dollars. Officials will meet again today and Sunday for the annual spring meetings of both the IMF and the World Bank.
Notably, the finance ministers suggested that China should move toward a more flexible exchange rate, effectively acknowledging criticism by the United States and other Western nations that the Chinese have been keeping their currency artificially weak to boost exports….
HAHAHA….EVERY damn G7 meeting this last 4 years has only one demand: the Chinese must weaken their yuan. Even when Japan was flooding the planet with the damn Japanese carry trade, the G7 moronically constantly attacked only China. Now, it is painfully obvious, they want the Japanese carry trade to resume.
As I explained in my last video, the interest rate derivatives game which is almost $600 trillion in size, is directly connected to the Japanese carry trade!
- Major developing nations — Brazil, Russia, India and China, for example — are balking at providing their contributions to a $500 billion IMF emergency loan program under the original proposal outlined by the United States and Europe. BRIC has thrown a BRAC at the dunderheads who run the G7 as an exclusive club for clubbing to death, all rivals. Time to disband the G7.
- World finance officials meeting through the weekend near the White House hoped for a resolution soon. An approach pushed by China and gaining momentum calls for the IMF to sell bonds that developing nations would buy, rather than go the traditional loan route. As we see above, this is pretty much what happened. What this means is, CHINA PREVAILED. They be bank!
- Even with a deal, however, it’s not clear that the IMF’s pool will have enough to jump-start the economy. No one can do this. Too many big countries are now bankrupt. All the biggest banks in the world outside of a tiny handful such as the Bank of China, are now bankrupt. Time to admit the truth and have a REAL meeting that is OPEN to all humanity where we can participate in the creation of a new system. I will suggest the Queen of Currencies be put back on Her Throne again: gold.
- The IMF estimates that before the downturn bottoms out, the agency could provide around $187 billion to recession-battered nations. That would dwarf the $86 billion during the 1997-98 Asian crisis, which leveled countries from Thailand to Russia and Argentina.
The new figures mean that the British government will probably have to borrow even more than the vast amounts announced earlier this week to fund its ambitious recovery plans, analysts said.
The UK and US preened each other as the heart of international finances. Both are bankrupt. Both are borrowers because both have ZERO sovereign wealth and both are not capitalized, anymore.
That massive borrowing — already more than $1 trillion over the next five years — has caused a storm of criticism from opposition leaders who say it will saddle Britain with a “decade of debt.” And it gave new ammunition to political opponents who say that Prime Minister Gordon Brown’s prediction of a return to economic growth before the end of this year is unrealistic.
The US has already borrowed twice this.
Britain has Europe’s second-largest government deficit as a percentage of gross domestic product — better than only Ireland and roughly the same as Romania, according to European Union statistics.
“There is not one other major country in the world in a position as bad as the United Kingdom,” David Cameron, leader of the opposition Conservative Party, said Wednesday.
The damn flood of funny money generated by the damn Japanese carry trade destroyed the economies of all the other damn G7 nations. Well, they asked for this and are still begging for this to resume. They will not figure out, this is a deadly disease, not a healthy system.
In his weekly radio and Internet address Saturday, Obama called on Congress to pass a pay-as-you-go legislation, known as PAYGO, that would require new federal spending to be offset by budgetary cuts or tax hikes.
“We need to adhere to the basic principle that new tax or entitlement policies should be paid for,” he said, asserting that PAYGO “helped transform large deficits into surpluses in the 1990s. Now we must restore that sense of fiscal discipline.”
Fiscally conservative Democratic lawmakers, known as Blue Dogs, told Obama on Friday that they’re working on a PAYGO plan and that they prefer to offset new spending with spending cuts elsewhere. Rep. Baron Hill of Indiana will introduce legislation next week, a Democratic aide told FOXNews.com
The federal deficit is projected to hit a record high of more than $1.8 trillion this year, due in large part to the government providing aid to Wall Street firms and other struggling companies, as well as Obama’s $787 stimulus package. Pay-as-you-go legislation wouldn’t affect that spending.
The damn ritual of cutting spending is always forced upon Democratic Presidents. NO Republicans ever even try to match taxes with spending. Almost all of them have doubled the deficit. Always, when out of power, the GOP screams about the budget. I say, they should be forced to pay for all of their own debts and then, can complain. So, if you support the GOP, you can pay about $8 trillion of the US debt and everyone else will pay the extra $4 trillion. OK?
Millions of lost jobs mean billions in lost tax revenue for the U.S. government, and billions in additional Treasury debt to fund a federal budgetdeficit that may soar to more than four times last year’s record $454.7 billion.
Employers cut 3.7 million positions from their payrolls in the six months since the fiscal year began Oct. 1, and the unemployment rate reached a 25-year high of 8.5 percent in March. That suggests receipts for April — the biggest month for tax collection — are likely to come in well below April 2008, analysts said.
With spending on unemployment insurance and other safety- net programs rising, the deficit is already at a record $956.8 billion six months into the fiscal year. To help close that gap, the Treasury Department has more than quadrupled borrowing, pushing the government deeper into debt.
“Tax receipts are just collapsing,” said Chris Ahrens, head of interest-rate strategy at UBS Securities LLC in Stamford, Connecticut, one of 16 primary dealers required to bid at Treasury auctions. The need to sell more debt “is a big issue in the Treasury market and it is ongoing. The surging budget deficit is the primary cause.”
The government will have to sell $2.4 trillion in new bills, notes and bonds in fiscal 2009, according to UBS. From October through December, the Treasury sold a record $569 billion, up from $82 billion in the same period a year earlier, and auctioned another $493 billion in the last quarter, up from $156 billion. That helps to make up for the drop in tax receipts, pay for the rise in spending and refinance maturing debt. Along with the principal, the sales add additional interest costs to the deficit for years to come.
So, the deficit is not $2 trillion but now, $2.4 trillion? And we are giving $100 billion to the IMF??? Are we nuts? Yes! For we are spending nearly another $100 billion fighting a bunch of barely armed peasants in Afghanistan and of course, giving away another $75 billion in ‘foreign aid’. Which is the definition of insanity: handing out presents when Santa is broken and Rudolf’s nose is due to alcoholism.
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