Thursday, September 2, 2010

Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011

Let me explain: A House was sold for say US$500,000. Borrower has a mortgage of US$450,000 or more. The house is now worth US$200,000 or less. Multiply this by the millions of houses sold between 2000 and 2008 and you will appreciate the extent of the financial black-hole. There is no way that any of the global banks can get out of this gigantic mess. And there is also no way that the FED and the global central bankers through QE can continue to buy such toxic wastes without showing their hands and exposing the lie that these banks are solvent.
It is my estimation that they have to QE up to US$20 trillion at the minimum. The FED and no central banker would dare “create such an amount of money out of thin air” without arousing the suspicions and or panic of sovereign creditors, investors and depositors. It is as good as declaring officially that all the banks are BANKRUPT.
9) But there is no other solution in the short and middle term except another bout of quantitative easing, QE II. Given the above caveat, QE II cannot exceed the amount of the previous QE without opening the proverbial Pandora Box.
10) But it is also a given that the FED will embark on QE II, as under the fractional reserve banking system, if the FED does not purchase additional toxic wastes, the global banks (faced with mounting foreclosures, etc.) will fall short of their reserve requirements.
11) You will also recall that the FED at the height of the crisis announced that interest will be paid on the so-called “excess reserves” of the global banks, thus enabling these banks to “earn” interest. So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?
12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.
Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.
Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks.

When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.
More Here..


  1. The article states:

    "sometime early 2011 at the earliest, there will be massive bank runs."

    Looks like Bank run is already happening in Afghanistan

    Now why on earth should the USA Taxpayer be paying for a bailout of Afghanistan foreign Bank?

  2. Interesting point under the warnings section. Check it out for all of you that have or are thinking of buying gold as a safety net. You might want to rethink your position after reading that.

  3. 11:40 that's why you buy SILVER

  4. Think the Government might put restrictions on Silver also? Face it you have wasted your money.

  5. 12:46 right they will put restrictions on 1966 silver dimes and quarters..duh, put your money in the bank where they can take it easier..stunned

  6. Interesting how people worry about silver or gold being confiscated but many people do not worry about how their dollar buys less.

    A story last week was about Wal-Mart increasing prices by 6% ... of course meaning your dollar is worth 6% less buying power.

    If dollar devaluation occurs then you will take a 40-60% loss.

    Someone posted last week about Presidential Executive orders allowing them to confiscate any of your property house, car, etc...

  7. 1:16 where was that posted?
    The sky is Pink.
    There now you can say that that was posted.

  8. 1:22

    Wal Mart story

    Here some overview of the Executive Orders:

    # Executive Order 10995: All communications media are to be seized by the Federal Government. Radio, TV, newspapers, CB, Ham, telephones, and the internet will be under federal control. Hence, the First Amendment will be suspended indefinitely.

    # Executive Order 10997: All electrical power, fuels, and all minerals well be seized by the federal government.

    # Executive Order 10998: All food resources, farms and farm equipment will be seized by the government. You will not be allowed to hoard food since this is regulated.

    # Executive Order 10999: All modes of transportation will go into government control. Any vehicle can be seized.

    # Executive Order 11000: All civilians can be used for work under federal supervision.

    # Executive Order 11490: Establishes presidential control over all US citizens, businesses, and churches in time of "emergency."

    # Executive Order 12919: Directs various Cabinet officials to be constantly ready to take over virtually all aspects of the US economy during a State of National Emergency at the direction of the president.

    # Executive Order 13010: Directs FEMA to take control over all government agencies in time of emergency. FEMA is under control of executive branch of the government.

    # Executive Order 12656: "ASSIGNMENT OF EMERGENCY PREPAREDNESS RESPONSIBILITIES", "A national emergency is any occurrence, including natural disaster, military attack, technological emergency, or other emergency that seriously degrades or seriously threatens the national security of the United States. Policy for national security emergency preparedness shall be established by the President." This order includes federal takeover of all local law enforcement agencies, wage and price controls, prohibits you from moving assets in or out of the United States, creates a draft, controls all travel in and out of the United States, and much more.

    The posting on Presidential Executive orders was on this Blog a few days ago and if you do an Internet search on "Presidential Executive orders" also with"Martial law" then you can look them over.

  9. Citizen Executive Order 01: Lock & Load

  10. I have a friend and last week the Bank that holds the mortgage on his house called him and offered to accept 40% of the value of the home to close the loan. I have heard of others being offered similar deals. Do the Banks and lenders see something bad coming and waht to get whatever money they can right now?

  11. Think the Government might put restrictions on Silver also? Face it you have wasted your money.

    Yes, by all means, keep your money in the bank.

    Stupid f*cking trolls. If the government even tried to confiscate PMs or impose heavy gains taxes, you made the CORRECT DECISION TO BUY THEM. Why? Because the mo-fk'n system has FAILED and your G'D*MN US$s are worthless.

    I'll take my chances with gold, silver, ammunition, and food storage. Now go F*CK YOURSELVES, TROLLS.

  12. That list of executive orders is pretty funny. I would like to see oboma try to execute one of them. This is america not russia or germany. There are over 80 million gun owners in the US. Half of them are pissed! The armed forces are around 1 mil. But they are our sons and daughters not obomas or his leftist friends. It will be an interesting confrontation if he ever decides to flex the muscle he thinks he has. IMO he would be wise to just continue saying what the teleprompter tells him to before he makes a mistake he can't undo. Just be patient and prepare this clown too shall pass. Problem is the next will likely be worse

  13. 1:16 where was that posted?
    (On executive orders )
    "The sky is Pink.
    There now you can say that that was posted."

    Just so:
    The Sky is Pink anyone with media supplied rose colored glasses can see that!
    Alternatively you can beleive :
    "Blue skies nothing blue from now on".

    There now, now you can say that was posted too!

    Futhermore , while you can still read these executive orders ,you might note that these executive orders can be applied in secret at the whisk of a pen by the semi-monarchy and it would be a criminal offence to reveal that
    they were actualy put into effect.
    You may never know if that has already happened!
    Is america in a state of war today?
    have national emergencies been declared say for example for the swine flue scam.
    do these executive orders actualy exist as law?
    Congress and the senate are irelevent.

    As for the bank run in Afghanistan these are mainly drug money laundering operations naturally the American interests and the CIA money operations must be protected.

    Blue skys nothing but blue skys from now on.

  14. 8:40,

    I agree with that view for the most part.

    When the economy is totally annihilated or the dollar dies (which is inevitable), do you Alex Jones types really believe soldiers and cops will sitting around our streets gunning people down or imprisoning them? For what pay?

    This administration has disgraced our guys so badly who suffered and continue to suffer in Iraq and Afghanastan. They're going to be at their homes helping their own families when the time comes, not being little robots for these Communist chumps who have hijacked the White House, schools, and media.

    Though, I can't see there being a 2012 election, we're going to implode before that.

    Economy crashes = collective anarchy. And with a nation as divided as the USA and with the amount of shit everywhere (elecronics, guns, vehicles, etc.) who the hell can imagine what this will be like!?

  15. 8:40
    the federal boys don't have a chance going up against us citizens armed to the teeth. thank god for the 2nd amendment.

  16. All of these posts are great.
    Just remember... if it's on the internet, it must be true!!!

  17. If we had more special unappreciated rights for women, everything would be fine, right?

  18. As guesed above the failed Agfghani bank that america is insterested in saving is connected to the CIA "war on drugs"
    Who owns the bank?
    The Taliban?
    Why its that well known drug dealer and partner in progress CIA helper brother of the puppet President Khazai....
    AFGHAN president Hamid Karzai's millionaire brother begged the United States to save his failing bank yesterday - but officials said the businessman and Afghan government were blocking American efforts to investigate the company books.
    "America should do something," Mahmood Karzai said as Afghan efforts to reassure more than two million depositors failed to stem a £130 million run on the country's largest bank.

    Most of the money was moved by wire transfers, but branches in Kabul , Kandahar, Herat and Mazar-e Sharif ran out of cash on Thursday as angry depositors demanded their money back.


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