Thursday, 2 December 2010

Rigged, Corrupt and Doomed to Fail.

Baltic Dry Index. 2096 -03
LIR Gold Target by 2019: $30,000. Revised.

Christmas is coming and the geese are getting fat

Please put a billion in the bankster’s hat

If you haven’t got a billion, a million will do

If you haven’t got a million, then God damn you!

Ebenezer Squid.

Yesterday the Fed was forced to reveal just who got what in the aftermath of the Lehman collapse, and unintentionally just how rigged the whole corrupt system is. Forget anything taught about capitalism in schools and universities, on our folly of fiat currency economies, the whole system operates to protect the favoured crony friends of the central banksters. Any wonder that telephone number bonuses are the norm. Shame about the unemployed though, especially as 2 million of them in America get tossed out into the cold of no benefits right after Christmas. This surely will not stand.

But first this. China, recognizing that this corrupt man made system of state deception will ultimately fail to the ruination of many, is busy hedging against fiat dollar collapse, or in reality fiat currency collapse, by rapidly increasing its imports of gold.

"Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state."

William F. Rickenbacker

China gold imports headed for big rise

Dec. 2, 2010, 12:22 a.m. EST

HONG KONG (MarketWatch) — China’s gold imports are on track for a sharp increase this year, with data for the first 10 months showing bullion shipments up more than four times amid rising interest among investors seeking out a hedge against inflation.

Bullion imported into China in the January-to-October period totaled 209.7 metric tons, compared to 45 metric tons in all of 2009, according to reports Thursday citing figures announced by Shanghai Gold Exchange Chairman Shen Xiangrong.

If current trends hold, China’s gold imports could rise nearly sixfold by the end of the year, according to calculations based on monthly averages

The figures offer a glimpse into China’s growing appetite for gold, reflected by the rush of new investment vehicles designed to satisfy interest in the precious metal, even as the government has yet to adopt the practice of releasing official statistics on the nation’s gold trade.

Shen reportedly said the volume of gold traded on the Shanghai Exchange totaled 5,014.5 metric tons, an increase of 43% from the same 10-month period a year earlier.

Now back to the rigged economy for the benefit of a few billionaires at the top of American society. It’s beyond me why ordinary Americans continue to pay taxes. Let those who benefit from the corruption pay taxes and let everyone else not in the inside loop keep the pittances they make against the day the whole rotten system implodes. And implode it will, we just don’t know when. Little wonder the squids and banksters are busy looting the system with outrageous telephone number bonuses as fast as they can, they fully realize this corrupt system is going to collapse. Stay long gold and silver. Ordinary Americans just like the poor Irish in the EU, will not put up with debt slavery just to keep a rigged system in favour of a few billionaires running. When early next year WikiLeaks exposes the corruption and illegality at a leading USA bank, I suspect the whole rigged system will shake to its core. Out of self preservation, I would bet that many on Wall Street are busy tapping each other. Diogenes where are you when we really need you.

"If the financial system goes down, our business is going down and, trust me, yours and everyone else's is going down, too."

Lloyd Blankfein. CEO Goldman Sachs. November 8, 2009

Fed Documents Breadth of Emergency Measures

By SEWELL CHAN and JO CRAVEN McGINTY Published: December 1, 2010

WASHINGTON — As financial markets shuddered and then nearly imploded in 2008, the Federal Reserve opened its vault to the world on a scope much wider and deeper than previously disclosed.

Citigroup, struggling to stay afloat, sought help from the Fed at least 174 times during one remarkable 13-month period. Barclays, the British bank, at one point owed nearly $48 billion to the Fed. Even better-off banks like Goldman Sachs took advantage of Fed loans offered at rock-bottom rates.

The Fed’s efforts to stave off a financial crisis reached far beyond Wall Street, touching manufacturers like General Electric, the Detroit automakers and Harley-Davidson, central banks from Britain to Japan and insurers and pension funds in Sweden and South Korea.

Under orders from Congress, the Fed on Wednesday released details of more than 21,000 transactions under the array of emergency lending programs and other arrangements it conjured up in response to the crisis.

The disclosures, which the Fed had resisted, offer the most detailed portrait of a panicky period in which the Fed lent money to banks, brokers, businesses and investors to keep the financial system functioning.

The documents show that some of the biggest names in American business were either coming to the Fed in need of a bailout, or trying to make money at a time when the Fed was trying to entice investors back into the markets. Among the latter were prominent investors and entrepreneurs like John A. Paulson and Michael S. Dell, and the pension funds of the Philadelphia Teamsters and Omaha’s teachers, who were betting they could profit if the rescue worked.

At its peak at the end of 2008, the Fed had about $1.5 trillion in outstanding credit on its books. The central bank, in essence, pumped liquidity, the lifeblood of credit markets, into the circulatory system of an economy that was experiencing a potentially fatal heart attack.

“I think our actions prevented an even more disastrous outcome,” said Donald L. Kohn, who was the Fed’s vice chairman during the crisis. Without the Fed’s help, he said, “liquidity would have dried up even more than it did, asset prices would have fallen even more than they did, and economic activity and employment would have fallen further and faster then they did.”

But Senator Bernard Sanders, independent of Vermont, who wrote a provision in the law requiring the disclosures by Dec. 1, reached a different conclusion.

“After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multitrillion-dollar bailout of Wall Street and corporate America,” he said. “Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations.”


Bank of America, Wells Fargo Led Fed’s TAF Borrowing

Dec. 1 (Bloomberg) -- Bank of America Corp. and Wells Fargo & Co. were among the top borrowers from the Term Auction Facility, one of the Federal Reserve’s first and longest-lasting efforts to combat the financial crisis.

Bank of America had three loans for $15 billion each outstanding from the facility as of Jan. 15, 2009, while Wells Fargo had three loans for $15 billion each on Feb. 26, 2009, according to documents released today by the Fed to comply with orders from Congress to identify recipients of emergency aid.

Fed Chairman Ben S. Bernanke created the TAF in December 2007 to let banks obtain cheaper funding without risking the stigma of loans from the central bank’s discount window. Under the program, banks bid for Fed loans at a rate determined through auctions. Borrowing peaked at $493.1 billion in March 2009 and began declining until the TAF closed in April 2010.

Because the program lent to banks, the Fed didn’t invoke an emergency legal clause allowing borrowing by non-banks in “unusual and exigent circumstances.” The central bank used the provision in 2008 to set up loan facilities for investment banks, money-market mutual funds and corporations


European Banks Dominated Use of Fed’s Commercial Paper Program

Dec. 1 (Bloomberg) -- The U.S. subsidiaries of European financial institutions, led by Zurich-based UBS AG and Brussels- based Dexia SA were among the largest users of a government program to provide emergency short-term funding to U.S. companies and banks during the credit crisis.

Six European banks were among the top 11 companies that sold the most debt overall to the Commercial Paper Funding Facility. They sold a combined $274.1 billion, according to data made public today by the U.S. central bank. UBS sold $74.5 billion, the most among all borrowers. The largest U.S.-based user was insurer American International Group, selling $60.2 billion.

UBS’s figure of $74.5 billion represents the company’s total sales over the life of the program. The bank’s CPFF borrowings peaked at $37.2 billion, an amount the firm rolled over, or re-sold at maturity, once. Other companies rolled over debt in the program as well.

The CPFF was the only Fed program during the crisis that lent directly to non-financial companies, including Peoria, Illinois-based Caterpillar Inc., and Harley-Davidson Inc. in Milwaukee. None of the debt purchased defaulted and the Fed earned $6.1 billion in interest income and usage fees through CPFF, according to the Federal Reserve.

The Fed released details about the commercial paper facility to meet disclosure requirements in the Dodd-Frank financial-oversight law signed by President Barack Obama in July. The central bank has never before revealed specific, transaction-level aspects of its lending.

Anyone who thinks that the Fed really made $6.1 billion in interest income and usage fees through CPFF, is deluded. In effect the Fed printed its own profit. Is crony capitalism great or what?

"The history of fiat money is little more than a register of monetary follies and inflations. Our present age merely affords another entry in this dismal register."

Hans F. Sennholz

At the Comex silver depositories Wednesday, final figures were: Registered 48.20 Moz, Eligible 59.79 Moz, Total 107.99 Moz.


Crooks and Scoundrels Corner.

The bent, the seriously bent, and the totally doubled over.

No crooks today, they are all busy working in the Fed. Time to let poor Bernie Madoff out, his big mistake was to steal small time. Stay long physical precious metals. The fiat dollar reserve standard has outlived its usefulness. The rest of the world will not go hungry and freeze, just so a corrupt bankster and squid elite can live out the life of Croesus. This corrupt system has started to implode. It would not surprise me to learn in a few years time that it was the Fed behind, and orchestrating the ongoing attack on the Eurozone’s Club Med. Just wait until WikiLeaks gets inside files from the central banks!  Any guesses as to who was behind yesterday’s stock market rally?

"There are some gambling banksters upon this earth of yours," returned God, "who lay claim to know us, and who do their deeds of passion, pride, ill-will, hatred, envy, bigotry, and selfishness in “Gods” name, who are as strange to us and all our kith and kin, as if they had never lived.”

With Apologies to A Christmas Carol, Charles Dickens.

The monthly Coppock Indicators finished November:

DJIA: +178 Down. NASDAQ: +247 Down. SP500: +167 Down.

The bull market (or bear market rally) that commenced on Nasdaq on 30/4/09 at 1717 has ended. (30/5/09 SP 500 at 919, 30/5/09 DJIA 8500.) While the indicators can flip flop at market turns, this action is rare on the slow monthly indicators. November is the sixth down month in a row.

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