Pick a financial fire and you can be sure the U.S. government will hose it down with gallons of money. AIG, General Motors, Chrysler, insolvent states, FDIC, Fannie, Freddie and all the banks are just a few of the blazes Uncle Sam has sprayed money on.
Now, the Federal Reserve is printing up another $105 billion to send to Greece to help with its debt problem. Is the bailout cycle getting ready to take another turn bailing out the Banks? You know, the ones we were told had little exposure to sour European debt? Check out this article from Bloomberg last week: JPMorgan Chase & Co., the second- biggest U.S. bank by assets, has a larger exposure than any of its peers toPortugal, Italy, Ireland, Greece and Spain, according to Wells Fargo & Co. JPMorgan’s exposure to the five so-called PIIGS countries is $36.3 billion, equating to 28 percent of the firm’s Tier-1 capital, a measure of financial strength, Wells Fargo analysts including Matthew Burnell wrote today. Morgan Stanley holds $32.4 billion of debt in the region, which equates to 69 percent of its Tier 1 capital, Burnell wrote.”
I guess now we know why Ben Bernanke is supplying Greece with $105 billion in bailout money. It looks like he actually is bailing out U.S. Banks—again! I wrote about the Fed admitting to massive money creation 3 weeks ago in a post called “Bernanke Admits Printing $1.3 Trillion Out Of Thin Air.” It also looks like we are not going to stop this money printing train wreck because the bailouts seem to be never ending. This is the main reason we are facing a head-on collision with very big inflation.
In the latest report from John Williams of shadowstats.com, the inflation picture looks dire and definite. Williams wrote, “My outlook for a hyperinflationary great depression in the United States is unchanged; all that is unfolding now is some of the detail that should lead to that ultimate financial/economic disaster. Gold remains the best long-term hedge here, along with some silver, and cash outside the U.S. dollar and the United States. I still like the Canadian and Australian dollars and the Swiss franc. Again, the outlook is for the long haul, irrespective of any near-term extreme volatility in the various markets. As to the U.S. stock market, the term “insanity” comes to mind as I watch some of the day-to-day movements.”
Wow! Another Mideast terror plot averted, the Gulf oil leak capped, and the Euro saved, all within a week!
ReplyDeleteMaybe Obama really is the messiah...
What time does Idol come on? I heard their ratings are down.
ReplyDeleteYes Idol's ratings were down yesterday, but Lady Gaga will be on the show tonite. That should get the sheeps attention.
ReplyDeleteoooh lady gaga.. googoo gaga.
ReplyDeletewhat they dont tell u is the plans the prevent all the excess cash from flowing into the economy. if shit hits the fan, u can always create a new currency and at a fraction of the supply... The best thing u can do.. is collect your change(coins) toss em in a bucket.. buy some gold and silver if u can afford it but if not collect ur coins and be free. dont let a depressed ecnomy get u down.. in poor ass countrys the people are sad all the time, they are just living.. they play things like futbol(soccer for the sheeple) all u need is a ball and some rocks/sticks for goals.
they arent sad all the time***
ReplyDeleteoh ya.. here the inflation prevention measures u will not read about on here. all u get is some fuckers opinion.. here ill do some research for all u sheep who believes everything this website has to say. funny how u all love calling eveyone else sheep when they dont agree with u, when u r just a different breeed of sheep.. This is from NPR National Public Radio
ReplyDeleteKai Ryssdal: The Federal Reserve started one of its regular two-day meetings today. The mood in the boardroom in the Fed's building on Constitution Avenue is probably a little more tense than usual. There's still some degree of uncertainty about whether the Senate is going to give Ben Bernanke another term running the central bank. A vote on that, by the by, should happen by the end of the week.
But politics aside, there is that little matter of interest rates. The Fed is expected to keep its Federal Funds Rate right where it is, that is low, for many months to come. But when the Fed does eventually decide to raise interest rates, it may have to find another way to do it as Marketplace's Jeremy Hobson explains now from New York.
JEREMY HOBSON: The Federal Funds Rate is what banks charge each other to borrow money overnight. The Fed sets a target rate and then buys or sells securities to bring the actual rate in line.
Bruce McCain is chief investment strategist with Key Private Bank. He says it worked until Lehman Brothers collapsed, and the Fed flooded the economy with cash.
BRUCE MCCAIN: We've had to go so far beyond merely changing interest rates to putting money into the system in ways that are truly outside the bounds of the normal interventions that the Federal Reserve has used in the past.
Because there is so much cash in the system now, buying or selling a few billion dollars worth of Treasury bonds barely moves the needle.
Ray Stone is a managing director of Stone and McCarthy Research Associates. He says making the old system work now would require the Fed to scale back its balance sheet fast.
RAY STONE: To do that, they would have to sell loads of assets, like mortgages, to the tune of a trillion dollars or more. This is operationally pretty difficult.
So there's a new idea being floated. When the Fed wants to raise interest rates, it could start paying banks more to store their excess cash reserves.
STONE: So for example, if the Fed wants to tighten to 1 percent from a quarter, they will raise the interest rate on bank reserves to 1 percent. With that, it's thought that the Federal Funds Rate will rise in accordance with the interest rate paid on bank reserves.
Because presumably, no bank would accept less interest for an overnight loan to another bank than it's getting to store its money at the Fed.
In New York, I'm Jeremy Hobson for Marketplace.
heres the link if u care for it http://marketplace.publicradio.org/display/web/2010/01/26/pm-fed-inflation/
ReplyDeleteAhh, yes- thanks for the 'research'. I certainly trust National Propaganda Radio to be the bearer of unvarnished truth....
ReplyDelete^^^^ STFU sheep. While you are right about calling others on this site sheep, which they are, the very fact that you analyzed the problems of the planet through Fed/Bank/loan/interest shows you know nothing. Get a clue retard. (Hint: you are destroying the ability of the planet to support life by overbreeding which is fundamentally the source of all your problems you fucking animal).
ReplyDeleteIntroduce birth bans for everyone no exception until you reach aproximately 0.5 billion people or you will ultimately anihilate all life on the planet. You've already passed the critical threshold, and every day that this isn't done, your life support is whiped out more and more. And if you don't have mastery in math and physics to understand reality STFU, and don't comment your pcyhobabble about things you don't understand. You are psychopath animals are approaching unbelievable horror/doom that can only be solved by a world wide birth stoppage. (It doesn't matter that free energy is a reality, because different types of energy structures are needed for optimal living conditions, so elites are right in banning it from you because you overbreed like animals. Do you understand that powerful masters don't even breed amongst the hell you've created, because your planet (life support) is literally dieing, without exageration.)
Pathetic newbs.
Go read the economist. Birth rates around the world are stabilizing. The us is not in a population growth explosion. Humans are not breeding like vermon any more. They used to. If there's any validity to urthoughs. Do us all a favor and be the first to address this issue. Go cut ur balls of or go kill itself. 1 less psyco
ReplyDeleteI do agree most all humans are psychotics especially Americans. Bit if all ur goingto do OS callme names of show how mature and smart u r
My there seems to be a lot of pent up anger on this thread- what are unemployment checks running late this month???
ReplyDeleteOr some people here are manstrating.
ReplyDeletewho got eliminated the other nite on Dancing with the stars.Missed it I was out herding sheep.
ReplyDeleteI now have to go back to work. Making my bomb shelter
ReplyDeletebuy gold
ReplyDeletefdr
i have lots
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monex
i like nj housewives
love yea
Many of these comments are proof positive you don't need more than a third grade education to post here. The writing blows chunks.....spelling sucks! Wow!
ReplyDelete515 you sound like you are jealous of Jews.
ReplyDeleteAnd who ever the idiots who want to play God and decide that worlds population is to high, why don't you be the first ones in line when the death squads start doing away with the unworthies. Make that sacrifice for the rest of the world since you think population control is the answer. Marxist commies who think they are so superior to everyone else and that they and their offspring only deserve to live.
Dam i am busting a gut!!! You guys are to much today!But realy lets stay on task here. I do have to say that anyone whom gets there info from NPR forget it! What a joke! Often it is in direct conflict with the facts!
ReplyDeleteYeh "all marx Quotes" "This world is full of noise, especially the kind that comes from people who like believing things without researching where the belief came from."
ReplyDeletesource this "Quote" ?
"these kinds of people are third worlders and should be wiped off the Earth."
Nobody even heard of the "third world"in 19th century europe only colonies.
Marx however was not entirely free of the European prejudice of his day ,but you are simply lying .
I thought this POST was for HYPERINFLATION issues as researched by John Williams...
ReplyDeleteInstead, illiterate tirades took up 90% of the comments... at times, I wondered if the same troll posting was having a conversation with himself. The 'dialogue' perhaps except for the Marxist quotes - have nothing to do about the article.
Can everyone post pertinent comments?
For example, 'with the Fed keeping interest rates unchanged from their last meeting - it looks like they are simply 'buying' time. The G20 summit coming up will probably set in motion more relevant policy statements. Either way this economic suicide by the global banking sectors of central banks will only leave a hole in the lower classes until we detach ourselves from their central global chains of debt. Act locally, think globally - start local commerce with your community banks and barter between B2B and customers.'
See - actually posting a real comment serves a beneficial use.
NO MORE TROLLING - thank you.
Yeah, really WTF people - go drool your drivel at the day care center
ReplyDeleteDamn !