Who is loaning us our money?

The top ten treasury bond holders was announced today.

 

Federal Reserve	42.19%
China	7.55%
US Investors	6.92%
Japan	6.91%
Pension Funds	5.61%
Mutual Funds	4.36%
State & local governments	3.23%
United Kingdom	2.86%
Banks	1.90%
Insurance Companies	1.67%
All others	16.34%

In the last US Treasury auction, it was reported that the Federal Reserve purchased 91% of the long term Treasury bills and bonds that were issued.  China has obviously significantly reduced the amount of money it is loaning the US and the Federal Reserve has replaced them as our largest holder of our debt.

So it appears that no one is willing or able to loan us money any more.  So we are now totally dependent on the Federal Reserve counterfeiting enough money to finance our deficit.

Do you know what this means?

PRICE CONTROLS CONFIRMED?

Kevin Warsh, a former Federal Reserve Board Governor, gave a recent and very interesting speech at Stanford University recently.  Warsh resigned from the Federal Reserve Board 8 months ago after serving for 5 years.  In his speech, he noted that Central Banks are so heavily influencing asset prices that investors are unable to ascertain market values. What he essentially is saying, is that there are no free markets any more.  All prices are being set by the Central Banks, led by the Federal Reserve.  Therefore it stands to reason that if you can figure out what the Federal Reserve is doing then you can accurately predict the markets.

Economic analysis goes out the window.  Now it becomes simply a game of predicting the Federal Reserve.  They’ve told us they intend to keep interest rates at zero for the next three years.  Therefore, don’t expect much movement in the bond markets in either direction.  In fact, past evidence has shown they will continue to buy bonds on the open market to keep long-term interest rates down as well.  They continue to deny they are printing more money, but all other evidence seems to show that they are in fact doing exactly that.  As a result, I would expect the stock market to continue to rise although its rate of ascent is directly related to how much they print.  And that appears to be anybody’s guess.

Commodities will also rise, with the exception of gold and silver where the Federal Reserve continues to intervene to hold the price of these commodities lower so that the dollar will continue to be the safe haven investment.  It also appears that they intervene heavily in other currencies, particularly trying to keep the dollar weak and the Euro strong.

In short, Mr. Warsh has confirmed something we all expected.  There are no free markets and the true values of any asset are a big unknown.  Instead all we have is the price that the Federal Reserve says it should be.  This is price controls if I’ve ever seen it.  Price controls have never worked, and I don’t see them working this time.

MF Global

MF Global declared bankruptcy this week.  Most of you haven’t ever heard of MF Global, but they will be the 8^th largest bankruptcy in US history.

MF Global was headed by Jon Corzine.  Corzine was the former governor of New Jersey from 2006 to 2010.  Corzine is also a former CEO of Goldman Sachs.  Currently in addition to running MF Global, he is serving as President Obama’s front man for his Wall Street Financing Campaign.

MF Global was handpicked by President Obama to be an elite primary dealer that would serve as a trading counterparty of the New York Fed in its implementation of monetary policy. Primary dealers are supposed to be heavily regulated and monitored, as they are required to participate in Treasury auctions. As of October 31, there were 21 primary dealer members including the likes of behemoths that include JP Morgan, Citigroup, Goldman Sachs, and Morgan Stanley.

And yet, somehow despite all of this regulation, it was discovered that $700 million of customer money was “missing”.  It is suspected that customer money was diverted to support the trading arm of MF Global.

So in summary, we have one of the 21 elite primary dealers, headed by a former democrat governor who once ran one of the largest and most despised firms in America and who is now serving as President Obama’s Wall Street financing campaign chairman, running a firm that lost $700 million in customer funds causing the 8^th largest bankruptcy in US history.   And we are being asked to believe that there were no politics involved in making MF Global a primary dealer and that somehow the regulators at the SEC, the CFTC, the CME Group, and the New York Federal Reserve missed it?  And that President Obama in no way had any influence over the decision making process.

Our system stinks.  It appears to not only allow but to encourage outright looting.  There are no regulations being enforced and no one is going to jail.  It appears to me the bankers are robbing us blind and nothing is being done about it.  The government appears to not only be looking the other way, but to be in on it.

And now we have a primary dealer that the government charges with making an orderly market in Treasuries appearing to have commingled around $700 million in customer funds with their own trading book.  And nobody in the government gives a hoot!

More Bank of America News

Everyone knows that Bank of America is in serious financial trouble.  They continue to look for ways to keep themselves solvent.  There latest is a real doozy.  They have announced they are selling some of their derivative investments from their Merrill Lynch subsidiary over to Bank of America.  And of course they transferred the ones most likely to default.

This means if they default on these investments, that they will now be covered by FDIC.  The US Treasury, through taxpayer dollars, guarantees the FDIC.  There are no guarantees for investors through Merrill Lynch, which is officially not a bank.

There are banking rules in place to prevent this that were designed to protect the FDIC insurance fund.  Any marginally competent regulator would immediately deny this.

However, the Federal Reserve has said they support the move.  This of course proves more of the dishonesty and corruptness of the Federal Reserve.  They are definitely not here for the public or for the American people.  They exist solely to protect the banks.

Although the FDIC has complained, once the move received the blessing of the Federal Reserve, it was a done deal. I’m certain that Bank of America and the Federal Reserve will get away with once again transferring bank losses to the taxpayers.

Although Occupy Wall Street is bringing some attention to the corruptness of the banks, items like this continue to occur right in our faces.  The only real way to solve this is to vote for a candidate that is willing to do away with the Federal Reserve.

Yea Europe!

So it was announced over the weekend that France and Germany agreed on a plan to “recapitalize” their banks, opening the way for another bailout of Greece.  “Recapitalize” is another word for bailout, which consists of printing money to give to the banks to keep them from going under.  Didn’t Europe already bailout Greece earlier this year?  And yet here we are again.

And I think you can count on that continuing.  If you don’t fix the underlying problem, then the problem will just keep coming up again and again.  This agreement doesn’t fix anything.  It just buys them more time.  The stock market is headed up today on this news.  But I wouldn’t get back in the stock market until they actually begin to address the underlying problem.

They didn’t stop the bleeding.  All they did was put a band-aid on the wound.

Which brings me to my next issue.  The financial media is reporting this as a great thing – Greece and the European banks are now okay.  I would suggest you quit reading the main stream media.  These guys don’t report correctly.  The news you need doesn’t get printed and the news that does get printed is usually heavily slanted toward the viewpoint they wish you to have.  I’m getting my news mainly off the internet now where I feel much more confident in getting the true news.

And lastly, did you read the bit about the Bank of Japan printing up more yen for the Japanese.  I’m not sure how much, but the word quadrillion comes to mind.  Japan has been doing this for year to no avail – their economy continues to sputter like it has since 1988.  You probably didn’t see the news because of the timing of the news release.  It was announced on the same day Steve Jobs died.  Why?  Japan doesn’t want anyone to know.  This is highly inflationary action.

Let's Save Europe

Imagine for just a moment that there is a privately owned organization in the United States that controls the entire money supply and therefore economy of this country.  They can create U.S. dollars out of thin air whenever it wants.  Imagine this organization is never elected by the American people and is never accountable to anyone – not to the president or to Congress.  Imagine that this organization can operate in complete secrecy and can make loans to banks, foreign governments, and even close friends without anyone being able to do anything about it.

Well imagine no longer.  This organization is called the Federal Reserve.  While most people think this organization exists for the benefit of the country, they don’t.  They exist for the benefit of the banks.  They are entirely unauditable and can do whatever they want whenever they want.  They answer to no one.

And now they have decided to bail out Europe.  They are going to loan huge piles of money to commercial banks in Europe.  Did I mention that 57% of the shares of the Federal Reserve are reportedly owned by the Rothschild banking family of Europe?

If you don’t like this – tough.  There is nothing you can do about it.  Neither can President Obama.  Neither can congress.  Neither can the Supreme Court.  The Federal Reserve can do whatever it wants to and they simply don’t care whether you like it or not.

Of course the billions and probably trillions of dollars that will be lent are going to be printed.  We’ll never know how much, because they don’t have to tell us.  This means inflation and higher prices for you.  After all, this has to be paid by somebody and the Fed has decided you are going to be the one.

The only thing we can do, is to eliminate the Federal Reserve.  If you haven’t read Ron Paul’s book, End the Fed, I encourage you to do so.

There are a number of conspiracy theories regarding the Federal Reserve.  When America was first established, the Rothschild’s pushed hard for a central bank.  One was established under George Washington with a 20 year charter.  John Quincy Adams refused to renew the charter 20 years later, thus ending the First Bank of America.  The Rothschild’s were terribly upset and the conspiracy theory is that they pushed Britain into starting the War of 1812 in an effort to put America into debt.

After the war, and with huge war debts, a second central bank was established called the Second Bank of America.  Also with a 20 year charter.  Andrew Jackson made it his personal mission to “kill the bank” as he called it.  And he finally ended the central bank after surviving an assassination attempt he claimed was planned by the Rothschild’s.

It wasn’t until 1913 that the Rothschild family succeeded in creating the current Federal Reserve and thus taking over the United States economy.

John Kennedy attempted to circumvent the Federal Reserve when he signed, by executive order, a law to have the U.S. Treasury print the dollar instead of the Federal Reserve.  He was assassinated shortly thereafter and the executive order died unimplemented.

The Federal Reserve has systematically been stealing money from the American people ever since 1913 by creating boom and bust cycles of inflation and then deflation.  I’m not going to go into how they do this, but trust me that they do it.  Read Ron Paul’s book, End the Fed, for details.

And now the Fed is going to save Europe.  And you get to pay for it.  If you haven’t prepared for inflation, you should begin to do so.

America: A Country Ruled by Bankers

 I know.  You thought the people ruled this country.  After all we can vote out our politicians and replace them with others.  How naïve you are.

If you control the money supply, you control the power to run the country.  And the banks control the money supply.  The people gave up that power back in 1913 when the Federal Reserve was created. 

The Federal Reserve is not a government agency.  It is not owned by the U.S. government.  It is owned by the member banks of the Federal Reserve.  These banks are either corporately owned (some by international or foreign corporations) or are privately owned (again some by international or foreign individuals).

The Federal Reserve, by law, operates independently of the U.S. Government.  In fact, as of this point, the government is not even allowed to audit the Fed to determine exactly what they are doing.  The Fed controls all of the gold in Fort Knox – and no one knows how much is actually there any more.  The Fed controls the printing press and has the authority to print up more money at any time they see fit.  They have unlimited power of the money supply of the United States.  And they conduct their affairs in secret.

Anytime they wish to steal money from the citizens and hand it to the banks to be distributed as they see fit (in other words, outrageous bonuses to the top executives) they do so.  They have several tools to do this such as creating inflation, creating boom and bust cycles, and printing money and handing it out to the banks.

They keep their member banks from failing by more bailouts.  All the while these banks continue to steal money from the American public.

Goldman Sachs, one of the six “too big to fail banks” (the others being Citigroup, Bank of America, Wells Fargo, JP Morgan, and Morgan Stanley) recently got fined for selling investments to the public while at the same time betting those investments would go bad.  They made trillions of dollars selling these investments and yet their fine was a very paltry number in the millions.

Now it seems Goldman Sachs is at it again.  On one hand, they are telling their customers everything is going to be fine in our economy.  On the other hand, the Wall Street Journal recently got hold of a secret report intended for Goldman Sachs largest clients where they advise that the economy is fixing to collapse.

They never learn.  But there is no reason for them to.  They keep getting away with it.  After all, Goldman Sachs was President Obama’s second largest campaign contributor.  I’m sure he’ll do nothing to them in spite of his rhetoric.  Plus his cabinet as well as government regulatory authorities (such as the SEC and the CFTC) are littered with ex-Goldman Sachs executives.

Sadly, the power of the “too big to fail” banks continues to grow.  At this point, the “big six” possess assets equivalent to approximately 60 percent of America’s gross national product.

We have a financial system that is deeply, deeply corrupt.  And this corruption is a major reason why things are falling apart.

America’s only hope, even after the crash, is to elect someone that will do away with the Federal Reserve and allow the “too big to fail” banks to fail.