Secret Banking Cabal Emerges From AIG Shadows- Bloomberg News

[SacredTHCRitual]

this might be a good time for the NW united states to recede from the nation

 

[robbiedublu]

Like ?

Like home values continuing to drop, more foreclosures, many banks not even pursuing foreclosures because they don't want the inventory on their books. ( In other words, people not paying their mortgage but remaining in their homes) Average foreclosure taking longer and longer because courts are overloaded. Many people remain current on payments but are upside down on their mortgages. Unsold inventory. 3 or 4 years ago home prices were near their peak and your friend saw the problems coming then.

 

[SpasticGramps]

What do you mean housing prices are continuing to collapse? I thought that's what we spent all this money on to inflate, but it's still collapsing? How can this be? We are printing all this money and housing is still crashing while commodities explode across the globe. Are you telling me Neo-Keyensian FunnyNomics doesn't work? lol

Housing Crash Is Hitting Cities Once Thought to Be Stable

Few believed the housing market here would ever collapse. Now they wonder if it will ever stop slumping.

The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune — economically diversified cities where the boom was relatively restrained.

In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.

The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain.

“When I go out and talk to people around town, they say, ‘Wow, I thought we were going to have a 12 percent correction and call it a day,’ ” said Stan Humphries, chief economist for the housing site Zillow, which is based in Seattle. “But this thing just keeps on going.”

“But this thing just keeps on going.” LOL. What a surprise?! Who would have guessed it? I long for the days of the "Summer of Recovery."

 

[SpasticGramps]

The days of King Dollar are numbered.

France wants new global finance system

France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today.

Lagarde, speaking ahead of a G20 finance ministers meeting in Paris on Friday and Saturday, said the world had to move on from the 'non-monetary system' it now has to one 'based on several international currencies'.

Accordingly, France wants to see less need for countries, especially the emerging economies, to accumulate huge foreign reserves, she said.

At the same time, international capital flows should be better regulated and the role of the Special Drawing Rights issued by the International Monetary Fund should be reinforced by the inclusion of China's yuan in the system.

Special Drawing Rights. Fiat currency issued by a central bank that has no oversight.

What a great idea. For the oligarchs that is. Not so great for the proles. Here comes your global governance. Succession of power to an international banking cartel. Global Fascism for all to see.

 

[SpasticGramps]

Why the Dollar's Reign Is Near an End Wall Street Journal

The single most astonishing fact about foreign exchange is not the high volume of transactions, as incredible as that growth has been. Nor is it the volatility of currency rates, as wild as the markets are these days.

Instead, it's the extent to which the market remains dollar-centric.

Consider this: When a South Korean wine wholesaler wants to import Chilean cabernet, the Korean importer buys U.S. dollars, not pesos, with which to pay the Chilean exporter. Indeed, the dollar is virtually the exclusive vehicle for foreign-exchange transactions between Chile and Korea, despite the fact that less than 20% of the merchandise trade of both countries is with the U.S.

Chile and Korea are hardly an anomaly: Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars. What's more, what is true of foreign-exchange transactions is true of other international business. The Organization of Petroleum Exporting Countries sets the price of oil in dollars. The dollar is the currency of denomination of half of all international debt securities. More than 60% of the foreign reserves of central banks and governments are in dollars.

The greenback, in other words, is not just America's currency. It's the world's.

But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.

I believe that over the next 10 years, we're going to see a profound shift toward a world in which several currencies compete for dominance.

The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.

The death of the dollar draws closer. The market at wide no longer sees it as a "flight to safety" when things get shitty as they have in the Middle East. In other words, the party for King Dollar and the American Empire is almost over. Thank you Federal Reserve for debauching our currency with military-Keynesianism.

 

[whodare]

http://www.washingtontimes.com/news/2011/feb/28/financial-terrorism-suspected-in-08-economic-crash/?page=1



Financial terrorism suspected in 2008 economic crash
Pentagon study sees element
By Bill Gertz-The Washington Times8:54 p.m., Monday, February 28, 2011

“There is sufficient justification to question whether outside forces triggered, capitalized upon or magnified the economic difficulties of 2008,” the report says, explaining that those domestic economic factors would have caused a “normal downturn” but not the “near collapse” of the global economic system that took place.

Suspects include financial enemies in Middle Eastern states, Islamic terrorists, hostile members of the Chinese military, or government and organized crime groups in Russia, Venezuela or Iran. Chinese military officials publicly have suggested using economic warfare against the U.S.

Asked by The Times who he thought to be the most likely behind the financial attacks, Mr. Freeman said: “Unfortunately, the two major strategic threats, radical jihadists and the Chinese, are among the best positioned in the economic battle space.”

Also, the report lists as suspects advocates of Islamic law, who have publicly called for opposition to capitalism as a way to promote what they regard as the superiority of Islam.

The first phase of the economic attack, the report said, was the escalation of oil prices by speculators from 2007 to mid-2008 that coincided with the housing finance crisis.

In the second phase, the stock market collapsed by what the report called a “bear raid” from unidentified sources on Bear Stearns, Lehman Brothers and other Wall Street firms.“This produced a complete collapse in credit availability and almost started a global depression,” Mr. Freeman said.

The third phase is what Mr. Freeman states in the report was the main source of the economic system’s vulnerability. “We have taken on massive public debt as the government was the only party who could access capital markets in late 2008 and early 2009,” he said, placing the U.S. dollar’s global reserve currency status at grave risk.

“This is the ‘end game’ if the goal is to destroy America,” Mr. Freeman said, noting that in his view China’s military “has been advocating the potential for an economic attack on the U.S. for 12 years or longer as evidenced by the publication of the book Unrestricted Warfare in 1999.”

scary times are ahead for america if this is true which it most likely is...

 

[SpasticGramps]

Honestly bro. I think those are bogeymen. Under the guidance of a central bank for generations we have ruined ourselves. The FED controls the economy it is they who will end it. We have many external enemies that will act more aggressively if weakness is sensed, but our real enemy is within.

On a lighter note of our comic tragedy.

AIG Goes For Re-Broke, Offers To Repurchase Toxic Subprime Portfolio From Fed For $15.7 Billion

When a bankrupt zombie company offers to purchase from the Fed the very instruments that put it in bankruptcy in the first place, and which the Fed was forced to put on US taxpayers in order to perpetuate the status quo farce, you know the words Banana republic don't even start to begin to express the describe the lunacy we live in.

From Reuters:

* Submits offer to buy all of rmbs owned by Maiden lane II for $15.7 billion in cash
* If accepted, this offer will substantially reduce the amount of outstanding government assistance to AIG
* If accepted, offer will guarantee frbny earns a profit on its interest in Maiden lane II
* Says total outstanding assistance from U.S. government will be reduced by about $13 billion to total of about $26 billion
* Says conditions that necessitated Maiden lane II have been resolved
* Aig's outstanding assistance from the U.S. government totals approximately $39 billion
* Says is offering to purchase all of the approximately 800 rmbs owned by Maiden lane II in a single transaction
* Anticipates more than 98 percent of Maiden lane II securities will be classified as naic 1 securities by regulators
* Says does not expect the transaction to have a material effect on its ratings
* Says set aside the cash necessary to pay the purchase price in full

Incidentally, $15.7 billion is below the value the Fed has Maiden Lane II marked at as of today, which is $15.9 billion. We are confident that this will not prevent the Fed from doing everything in its power to bend over to the nationalized insurer's demands.

And yes, Maiden Lane was created by the Fed to front the insolvent AIG cash back in 2008, and purchase AIG's own toxic paper. To wit:

Purpose: ML II LLC was created to alleviate capital and liquidity pressures on American International Group Inc. (AIG) stemming from its securities lending program by purchasing $20.5 billion in residential mortgage-backed securities (RMBS) from several of AIG’s U.S. insurance subsidiaries.

Terms: The New York Fed lent ML II LLC approximately $19.5 billion. The loan has a 6-year term and accrues interest at 1-month LIBOR plus 100 basis points. The AIG insurance subsidiaries agreed to defer receipt of $1 billion of the purchase price. The fixed deferred purchase price accrues at 1-month LIBOR plus 300 basis points.

Investment Objective: Maximize the long-term cashflows of the portfolio to repay the New York Fed’s senior loan (including principal, interest, and residual), while refraining from disturbing general financial market conditions. Monthly loan repayment commenced in January 2009.

 

[SpasticGramps]

There is a snipit of it from the AP.

AIG offers to rebuy toxic assets from New York Fed

WASHINGTON – American International Group Inc. is offering $15.7 billion for a heap of toxic mortgage bonds that the Federal Reserve Bank of New York took off its hands at the peak of the financial crisis in 2008.

The insurance conglomerate said in a letter to the New York Fed Thursday that the sale would reduce the amount of government money it holds to $26 billion, including an unused $2 billion line of credit, from $39 billion.

AIG received the largest bailout of the financial crisis. The New York Fed and Treasury Department extended lifelines worth a total of $182 billion.

The insurer is paying off its government debts by selling businesses and restructuring its balance sheet. Treasury still owns 92 percent of AIG's common shares.

Wow. That's just so brazen, but ya know what they say. The Ponzi must go on.

 

[turbolaser4528]

blah blah blah, ignorance is bliss !!!


haha but really, things will work themselves out for the best as usual...

 

[SpasticGramps]

blah blah blah, ignorance is bliss !!!


haha but really, things will work themselves out for the best as usual...

Seriously? This why we are in so much trouble. We'd rather promote ignorance and blind faith in criminals that "things will work themselves out" somehow, someway. Just as long as we don't have to think about anything or do anything that will effect our daily lives. In the face of crisis we'd rather bury our head in the sand as to not deal with the consequences of our actions. LOL.

Can we really blame these Wall Street Criminals from stealing from people who would rather be robbed than deal with reality. Social Darwinism at it's best. Statements like that make me sad. A country with once great ideals reduced to sniveling victims who would rather be victimized than change. A nation sheep with Stockholm Syndrome.

 

[whodare]

Thanks! Gramps, slap these fools around a little...

people, your apathy will be the downfall of america...

by the time yall wake up and get your heads out the sand the american dollar will bo longer be the worlds reserve currency and you will see every purchasable good double in price overnight...

 

[robbiedublu]

things will work themselves out for the best as usual...

.

Yea, if your last name is Rothschild maybe.

 

[SpasticGramps]

Holy smokes? One of our fearless leaders had a brain fart and publicly states what a disaster we are headed towards.

All aboard the Ponzi Bus! The wheels are still hanging on. For now anyway.

Congressman John Campbell's Moment Of Epiphany - Realizes US Is One Big Ponzi

Treasury Bonds: I learned something last week. I learned that fully 40% of the over $9 trillion in Treasury debt currently outstanding to the public has a maturity of 3 years or less. Put another way, it means that we are rapidly approaching $4 trillion in U.S. debt that matures by 2014 or sooner. As I write this, the yield (interest rate paid) on a 2-year Treasury note is 0.645% or about 2/3 of one percent. The yield, at the same time, on a 10 year Treasury note is 3.4%, and on a 30 year is 4.55%. In bond parlance, this is called a "steep yield curve" where interest rates get much higher as you go farther out in time.

It's pretty clear why the Treasury is doing this. By issuing mostly short-term notes, the Treasury is paying less interest, thereby keeping interest costs and, consequently, the deficit down. In addition, the Federal Reserve is in the middle of its "quantitative easing #2" (QE2) under which it is buying $600 billion of our own Treasury debt over about a 6 month period. The Fed is not buying the short-term notes, but is buying 10 year maturities and longer in order to hold those rates down. And, since the Fed is earning the interest thereon (paid by the U.S. Treasury), it is improving its yield. We are currently running a deficit of about $130 billion per month, so the Fed is basically buying all of the new bond issuance from the deficit for almost 5 months.

What does this all mean? I understand that the Fed and the Treasury are trying to keep interest rates low and improve the economy and the deficit. But, when coupled with the huge deficits, these moves look a bit like a Ponzi scheme that will soon unravel.

We are printing money ($600 billion) to buy our own debt so that the full effects of the deficit are not felt. We are buying long-term bonds to artificially hold down the rates on those bonds since home mortgages and many other things are based on those rates. We are selling the short-term bonds at cheaper rates to hold down costs now, but are leaving ourselves open to huge cost increases when interest rates go up. And, we are at historic lows on these short-term bond rates. If they were to rise by 3 points (which would put them where they were at as recently as 2008), our deficit would increase by another $150 billion per year, even if the long-term rates stay the same. And, once the Fed ends QE2, even if it doesn't reverse it, the markets will then have to absorb a new influx of long-term bonds at a time when our ability to pay them is in question. The Fed can cure a bunch of this simply by printing a lot more money. That, however, will result in an inflationary period with major wealth destruction and economic malaise.

In the period between 2005-2007, we were sowing the seeds of the 2008 financial crisis through too much leverage in the private sector. But, very few people could see it coming. Today, we are sowing the seeds of another crisis with too much leverage in the public sector. This time, though, it's easy to see it coming.

Rule #1 of Ponzi schemes: They ALL eventually collapse.

 

[SilverSurfer_OG]

Great news America! Your jobless rate has fallen again!!...

Heres an informative video from an expert on whats really happening to the world economy. Yes its Alex Jones. Yes the title says its about world depopulation but the guest focusses more on the economic train crash..

The senior editor of the Executive Intelligence Review, Jeffrey Steinberg joins Alex today.

http://www.youtube.com/watch?v=zH10tXCMMSs

 

[AfroSheep]

The rich get richer while the poor get poorer, and the middle class get obliterated.,
Which therefor forces the poor to always look to the rich for support help and handouts,
Its all just a big game of monopoly and remember the one rule of monopoly?WHO WINS?
The bank always wins in monopoly its that simple, the private banks to be exact,
Down with the FED down with the rothschilds, rocerfellas, and any1 who is enjoying business with them.

I just hope that the rest of the world wakes up and realizes, FUCK we are not sheep why do we let them choose how OUR(the peoples) world is run.
And hopefully we wake up intime before they bring in the one world currency and fuck us all up the ass.

 

[AfroSheep]

The rich get richer while the poor get poorer, and the middle class get obliterated.,
Which therefor forces the poor to always look to the rich for support, help and handouts,
Its all just a big game of monopoly and remember the one rule of monopoly?WHO WINS?
The bank always wins in monopoly its that simple, the private banks to be exact,
Down with the FED down with the rothschilds, rocerfellas, and any1 who is enjoying business with them.

I just hope that the rest of the world wakes up and realizes, FUCK we are not sheep, we are not puppets, why do we let them choose how OUR(the peoples) world is run.
And hopefully we wake up intime before they bring in the one world currency and fuck us all up the ass.

 

[SilverSurfer_OG]

They are only good cos they have had so long to practise!

You shake hands with the devil you cant just walk away.

 

[AfroSheep]

yep, the only way outa the NWO is through death, go ask tupac lol.
Even ask eminem he cant get outa the music industry until hes paid his debts to them

 

[SpasticGramps]

Interesting bit maybe?

Bernanke shows his cards to the WSJ (again) ZeroHedge

13 Fed officials have given us speeches over the past fortnight. We have heard various views. From Kocherlakota who suggested that interest rate should rise by the end of the year, to Dudley who made it pretty clear that he thinks it would be a mistake to back off the gas pedal anytime soon.

None of those speeches matter much. The only thing that counts is Bernanke. The Fed will end up doing what he wants. There is no true debate at the Fed. All the speeches are show ponies to demonstrate that there is open thinking at the Fed. I don’t believe a word of it. But I do believe when Jon Hilsenrath echoes Ben’s thinking. I believe the Ben/Jon duo was at work in this WSJ article today. The critical words from Ben’s lips: (link)

a $600 billion program of Treasury bond purchases known as quantitative easing looks likely to run its course as planned in June. This will effectively mean the Fed is moving to a neutral stance of no longer easing while not beginning to tighten policy.

Mark Ben’s, Jon’s and my words. This is what the future will bring us. QE will end in June. But the policy of ZIRP will be with us for a long time to come.

There are so many factors at play in the big capital markets these days. The Fed is just one element in the equation. But if you focused on just their effort you would have to conclude that the end of QE but never ending ZIRP will bring us the following:

There are so many factors at play in the big capital markets these days. The Fed is just one element in the equation. But if you focused on just their effort you would have to conclude that the end of QE but never ending ZIRP will bring us the following:


-Long end yields are going higher. I think the Fed moves have set us up for a 5% long bond and a 4% 10-year. Long bonds are a sucker play when the Fed continues to pour on the gas.

-ZIRP is good for stocks. We shall see about this. One can’t deny that equities are a better place to be than in cash that has a negative return.

-The dollar is going to get crushed. The Yen is a wild card that is influenced today by the uncertainties of Fukushima. We could see more weakness there. But the rest of the currencies of the world are going to have to move higher. I see the Euro over 1.5 the Pound pushing 1.7 and the CHF at around 85 to the dollar. The C&A dollars will be a good place to hide as well.

-PMs have to move higher. We will maintain a policy of cheap money and dollar debasement. How could the metals not respond?

-Inflation is going to roar. The food and energy component of the puzzle that Bernanke refuses to consider is going straight up in my opinion. I wouldn’t be at all surprised to see the non-core CPI up by 5% by the end of the year. We could easily see $5 gas in six months.

I think this is an insane next step for monetary policy. We will all pay a very dear price for this. I think it is also insane to have monetary policy conducted through speeches, innuendo and newspaper leaks.

 

[AfroSheep]

What i hate about this shit is, when the dollar hits the floor, what do people do then? do we all just become bums on the streets because know1 can afford to pay bills,
In aussie here, the PM is bringing in the new carbon tax now(load of crap not needed)
Why do we pay for something that cant be fixed, the manufacturers should be paying because of their production, not the households that are gonna be paying 800$+ more per year.

People are to blind and silly, and dont understand enough to realize whats going on, its probally gonna be to late before the spastics catch up with the game plan.

I like to dribble shit about all the crap thats happening.
But at least i no whats happening and am willing to try to get people to open their eyes and ears.

I also dont understand the stocks and whatnot so much, but i no enough to connect A-B.

Sorry if i sound like an asshat, but i just hate the way the world is turning out it just makes me absolutely sick.