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Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went

Tyler Durden's picture


Courtesy of the recently declassified Fed discount window documents, we now know that the biggest beneficiaries of the Fed's generosity during the peak of the credit crisis were foreign banks, among which Belgium's Dexia was the most troubled, and thus most lent to, bank. Having been thus exposed, many speculated that going forward the US central bank would primarily focus its "rescue" efforts on US banks, not US-based (or local branches) of foreign (read European) banks: after all that's what the ECB is for, while the Fed's role is to stimulate US employment and to keep US inflation modest. And furthermore, should the ECB need to bail out its banks, it could simply do what the Fed does, and monetize debt, thus boosting its assets, while concurrently expanding its excess reserves thus generating fungible capital which would go to European banks. Wrong. Below we present that not only has the Fed's bailout of foreign banks not terminated with the drop in discount window borrowings or the unwind of the Primary Dealer Credit Facility, but that the only beneficiary of the reserves generated were US-based branches of foreign banks (which in turn turned around and funnelled the cash back to their domestic branches), a shocking finding which explains not only why US banks have been unwilling and, far more importantly, unable to lend out these reserves, but that anyone retaining hopes that with the end of QE2 the reserves that hypothetically had been accumulated at US banks would be flipped to purchase Treasurys, has been dead wrong, therefore making the case for QE3 a done deal. In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!

For those who can't wait for the punchline, here it is. Below we chart the total cash holdings of Foreign-related banks in the US using weekly H.8 data.

Note the $630 billion increase in foreign bank cash balances since November 3, which just so happens is the date when the Fed commenced QE2 operations in the form of adding excess reserves to the liability side of its balance sheet. Here is the change in Fed reserves during QE2 (from the Fed's H.4.1 statement, ending with the week of June 1).

Above, note that Fed reserves increased by $610 billion for the duration of QE2 through the week ending June 1 (and by another $70 billion in the week ending June 8, although since we only have bank cash data through June 1, we use the former number, although we are certain that the bulk of this incremental cash once again went to foreign financial institutions).

So how did cash held by US banks fare during QE2? Well, not good. The chart below demonstrates cash balances at small and large US domestic banks, as well as the cash at foreign banks, all of which is compared to total Fed reserves plotted on the same axis. It pretty much explains it all.

The chart above has tremendous implications for everything from US and European monetary policy, to exhange rate and trade policy, to the current account on both sides of the Atlantic, to US fiscal policy, to borrowing and lending activity in the US, and, lastly, to QE 3.

What is the first notable thing about the above chart is that while cash levels in US and US-based foreign-banks correlate almost perfectly with the Fed's reserve balances, as they should, there is a notable divergence beginning around May of 2010, or the first Greek bailout, when Europe was in a state of turmoil, and when cash assets of foreign banks jumped by $200 billion, independent of the Fed and of cash holdings by US banks. About 6 months later, this jump in foreign bank cash balances had plunged to the lowest in years, due to repatriated fungible cash being used to plug undercapitalized local operations, with total cash just $265 billion as of November 17, just as QE2 was commencing. Incidentally, the last time foreign banks had this little cash was April 2009... Just as QE1 was beginning. As to what happens next, the first chart above says it all: cash held by foreign banks jumps from $308 billion on November 3, or the official start of QE2, to $940 billion as of June 1: an almost dollar for dollar increase with the increase in Fed reserve balances. In other words, while the Fed did nothing to rescue foreign banks in the aftermath of the first Greek crisis, aside from opening up FX swap lines, one can argue that the whole point of QE2 was not so much to spike equity markets, or the proverbial "third mandate" of Ben Bernanke, but solely to rescue European banks!

What this observation also means, is that the bulk of risk asset purchasing by dealer desks (if any), has not been performed by US-based primary dealers, as has been widely speculated, but by foreign dealers, which have the designatin of "Primary" with the Federal Reserve. Below is the list of 20 Primary Dealers currently recognized by the New York Fed. The foreign ones, with US-based operations, are bolded:

  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.

  • Credit Suisse Securities (USA) LLC

  • Daiwa Capital Markets America Inc.

  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies & Company, Inc.
  • J.P. Morgan Securities LLC
  • MF Global Inc.
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated

  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC

  • Nomura Securities International, Inc.

  • RBC Capital Markets, LLC

  • RBS Securities Inc.

  • SG Americas Securities, LLC

  • UBS Securities LLC.

That's right, out of 20 Primary Dealers, 12 are.... foreign. And incidentally, the reason why we added the (if any) above, is that since this cash is fungible between on and off-shore operations, what happened is that the $600 billion in cash was promptly repatriated and used by domestic branches of foreign banks to fill undercapitalization voids left by exposure to insolvent European PIIGS and for all other bankruptcy-related capital needs. And one wonders why suddenly German banks are so willing to take haircuts on Greek bonds: it is simply because courtesy of their US based branches which have been getting the bulk of the Fed's dollars in 1 and 0 format, they suddenly find themselves willing and ready to face the mark to market on Greek debt from par to 50 cents on the dollar. And not only Greek, but all other PIIGS, which will inevitably happen once Greece goes bankrupt, either volutnarily or otherwise. In fact, the $600 billion in cash that was repatriated to Europe will mean that European banks likely are fully covered to face the capitalization shortfall that will occur once Portugal, Ireland, Greece, Spain and possibly Italy are forced to face the inevitable Event of Default that will see their bonds marked down anywhere between 20% and 60%. Of course, this will also expose the ECB as an insolvent central bank, but that largely explains why Germany has been so willing to allow Mario Draghi to take the helm at an institution that will soon be left insolvent, and also explains the recent shocking animosity between Angela Merkel and Jean Claude Trichet: the German are preparing for the end of the ECB, and thanks to Ben Bernanke they are certainly capitalized well enough to handle the end of Europe's lender of first and last resort. But don't take our word for this: here is Stone McCarthy's explanation of what massive reserve sequestering by foreign banks means: "Foreign banks operating in the US often lend reserves to home offices or other banks operating outside the US. These loans do not change the volume of excess reserves in the system, but do support the funding of dollar denominated assets outside the US....Foreign banks operating in the US do not present a large source of C&I, Consumer, or Real Estate Loans. These banks represent about 16% of commercial bank assets, but only about 9% of bank credit. Thus, the concern that excess reserves will quickly fuel lending activities and money growth is probably diminished by the skewing of excess reserve balances towards foreign banks."

Which brings us to point #2: prepare for the Bernanke hearings and possible impeachment. For if it becomes popular knowledge that the Chairman of the Fed, despite explicit instructions to enforce the trickle down of "printed" dollars to US banks, was only concerned about rescuing foreign banks with the $600 billion in excess cash created out of QE2, then all political hell is about to break loose, and not even Democrats will be able to defend Bernanke's actions to a public furious with the complete inability to procure a loan. Any loan. Furthermore the data above proves beyond a reasonable doubt why there has been no excess lending by US banks to US borrowers: none of the cash ever even made it to US banks! This also resolves the mystery of the broken money multiplier and why the velocity of money has imploded.

Implication #3 explains why the US dollar has been as week as it has since the start of QE 2. Instead of repricing the EUR to a fair value, somewhere around parity with the USD, this stealthy fund flow from the US to Europe to the tune of $600 billion has likely resulted in an artificial boost in the european currency to the tune of 2000-3000 pips, keeping it far from its fair value of about 1.1 EURUSD. If this data does not send European (read German) exporters into a blind rage, after the realization that the Fed (most certainly with the complicity of the G7) was willing to sacrifice European economic output in order to plug European bank undercapitalization, then nothing will.

But implication #4 is by far the most important. Recall that Bill Gross has long been asking where the cash to purchase bonds come the end of QE 2 would come from. Well, the punditry, in its parroting groupthink stupidity (validated by precisely zero actual research), immediately set forth the thesis that there is no problem: after all banks would simply reverse the process of reserve expansion and use the $750 billion in Cash that will be accumulated by the end of QE 2 on June 30 to purchase US Treasurys.


The above data destroys this thesis completely: since the bulk of the reserve induced bank cash has long since departed US shores and is now being used to ratably fill European bank balance sheet voids, and since US banks have benefited precisely not at all from any of the reserves generated by QE 2, there is exactly zero dry powder for the US Primary Dealers to purchase Treasurys starting July 1.

This observation may well be the missing link that justifies the Gross argument, as it puts to rest any speculation that there is any buyer remaining for Treasurys. Alas: the digital cash generated by the Fed's computers has long since been spent... a few thousand miles east of the US.

Which leads us to implication #5. QE 3 is a certainty. The one thing people focus on during every episode of monetary easing is the change in Fed assets, which courtesy of LSAP means a jump in Treasurys, MBS, Agency paper, or (for the tin foil brigade) ES: the truth is all these are a distraction. The one thing people always forget is the change in Fed liabilities, all of them: currency in circulation, which has barely budged in the past 3 years, and far more importantly- excess reserves, which as this article demonstrates, is the electronic "cash" that goes to needy banks the world over in order to fund this need or that. In fact, it is the need to expand the Fed's liabilities that is and has always been a driver of monetary stimulus, not the need to boost Fed assets. The latter is, counterintuitively, merely a mathematical aftereffect of matching an asset-for-liability expansion. This means that as banks are about to face yet another risk flaring episode in the next several months, the Fed will need to release another $500-$1000 billion in excess reserves. As to what asset will be used to match this balance sheet expansion, why take your picK; the Fed could buy MBS, Muni bonds, Treasurys, or go Japanese, and purchase ETFs, REITs, or just go ahead and outright buy up every underwater mortgage in the US. This side of the ledger is largely irrelevant, and will serve only two functions: to send the S&P surging, and to send the precious metal complex surging2 as it becomes clear that the dollar is now entirely worthless.

That said, of all of the above, the one we are most looking forward to is the impeachment of Ben Bernanke: because if there is one definitive proof of the Fed abdicating any and all of its mandates, and merely playing the role of globofunder explicitly at the expense of US consumers and borrowers, not to mention lackey for the banking syndicate, this is it.



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Sun, 06/12/2011 - 00:23 | 1362386 trav7777
trav7777's picture

Shocking, bitchez

Sun, 06/12/2011 - 00:39 | 1362402 markmotive
markmotive's picture

The banking system is on life support. If they started realizing all the crap loans on their books, do you think they'd be solvent?

How can they stop the QE if this is the case?

Sun, 06/12/2011 - 01:00 | 1362443 Conrad Murray
Conrad Murray's picture

"Only after disaster can we be resurrected."
"I say never be complete, I say stop being perfect, I say let... lets evolve, let the chips fall where they may."
- Fight Club


Sun, 06/12/2011 - 10:20 | 1362890 Shocker
Shocker's picture

The idea is not really shocking. Its just funny NOW they come out and say yeah Foreign Banks got most of the bailout money. The foreigners were about to pull the plug on the US economy and we couldn't have that.

Now all they feed us is, Recovery, Jobs bad but not bad, Manufacturing is coming back.... Its the same song and dance.

While we fund the foreign banks, in the US we are losing everything this country was built on. The mess continues everyday and really no way out.


Sun, 06/12/2011 - 12:02 | 1363036 Kayman
Kayman's picture

Perhaps this was the quid pro quo for all the shit MBS paper our domestic criminal Wall Street "bankers" defrauded foreigners of.

Sun, 06/12/2011 - 23:09 | 1363907 cranky-old-geezer
cranky-old-geezer's picture

Good point. 

Maybe foreign banks, particularly EU banks, are feeling the 1 - 2 punch of collapsing MBS foolishly purchased from the squid and collapsing bonds foolishly purchased from PIIGS.

Thet'ye close to insolvecy now, maybe already insolvent, something's gotta be done, can't go back against PIIGS without collapsing the Euro, so they threaten Bernanke they'll all dump their MBS at the same time (they're worthless anyway), taking the Fed, Fannie, and Freddie down with them.

So Bernanke folds, handing mountains of digital cash to them ...which of course debases the dollar further.

There's simply not enough wealth in the world to keep feeding hundreds of TBTF banks around the world to make up for hundreds of trillions of collapsing bond values.

There's just too damn much debt paper around the world, and it's all collapsing now.

Sure, they can print currency till it fills the oceans and bail out everybody's collapsing balance sheet.

But they can't print wealth, and those oceans of currency chasing limited wealth dilutes those oceans of currency to worthless toilet paper.

And yes those damn bankers will keep printing currency and bailing each other out till every damn currency around the world is worthless and the whole damn worldwide financial system collapses, then every damn government around the world collapses, then every damn nation around the world collapses. 


Sun, 06/12/2011 - 23:36 | 1363998 Libertarians fo...
Libertarians for Prosperity's picture

The sharp increase of foreign bank reserves has been well known since February, shortly after the first bit of data began to surface after the commencement of QE2. The real question is: are we about to see a massive unwind of the short US dollar, long commodity carry trade, as global capital flows get jammed into reverse, while forex and commodity traders are suddenly reacquainted with Mandelbrot and the forgotten lessons of Amaranth?  Is silver set to implode? 

Julien Garran of UBS:

Emerging market authorities tend to print domestic currency to buy dollars, to prevent excessive currency appreciation. This then raises deposits at banks, inducing a lending boom, which in turn is very commodities intense – bullish for commodities, with knock on effects on commodity currencies and speculative flows

[The end of QE2] forces emerging market central banks to retire domestic currency as the dollars exit, leading to stalling bank deposit growth and stalling loan growth. And this in turn triggers a reversal of speculative flows. It also tends to precipitate credit stress among weak credits – who, like in a game of musical chairs, are left standing when cheap credit runs out.

If you are interested in the truth, perhaps you could take a look at:




Mon, 06/13/2011 - 02:35 | 1364163 cranky-old-geezer
cranky-old-geezer's picture

The real question is: are we about to see a massive unwind of the short US dollar, long commodity carry trade, as global capital flows get jammed into reverse, while forex and commodity traders are suddenly reacquainted with Mandelbrot and the forgotten lessons of Amaranth?  Is silver set to implode? 

Dream on bucko.

The only things imploding are those FRNs and Euros and all that paper money banker bullshit.

Wed, 08/03/2011 - 16:53 | 1521965 Hremas
Hremas's picture

There's only one system now..

probably most who read ZH are aware of this. i think the significance of this fine work by Tyler is that it has the potential to be just the thing to wake americans up to this fact, and further, that it would shock them and be considered a betrayal of their interests.

the potential, mind you. i'm not expecting much. goldbet

Sun, 06/12/2011 - 13:11 | 1363152 wanklord
wanklord's picture

The sooner the US economy collapses the better, so the brute and ignorant American populace will finally learn NOT to live beyond their means.


Sun, 06/12/2011 - 14:13 | 1363240 eureka
eureka's picture

Spot On! And relearn to exercise a spirit of active community building.

Sun, 06/12/2011 - 14:19 | 1363253 cossack55
cossack55's picture

Sure you right, ol' Wanky.  Monday would not be too soon. 

I see a couple of status quo-type-swine junked ya. Buffoons.

Sun, 06/12/2011 - 14:18 | 1363257 dracos_ghost
dracos_ghost's picture

Hmm, you wouldn't perchance be European with their US bailed out banks would ye?

In other words, did you read the post at all. Europe seems to be spending way beyond their means just like the brutish and ignorant American. Except they don't have the integrity to take are of it themselves. They need the brutish and ignorant American to bail their asses out and then have the audacity to disrespect them.


Sun, 06/12/2011 - 14:49 | 1363293 macholatte
macholatte's picture

The sooner the US economy collapses the better, so the brute and ignorant American populace will finally learn NOT to live beyond their means.


That is one of the most assinine statements I have read in a long time.  You are indeed an ignoramous.

Sun, 06/12/2011 - 14:48 | 1363299 Quixotic_Not
Quixotic_Not's picture

I guess that kinda rained on your whole skittle shitting rainbow unicorn fantasy, eh?

Sun, 06/12/2011 - 15:33 | 1363363 dcb
dcb's picture

I disagree the only thing I have learned from this crisis is that the only thing that will change the system is collapse, because those with interests in it for their wealth and power will do anything and everything to make sure they never loose it. the actions by the fed propping up these foreign banks proves that.

Sun, 06/12/2011 - 16:18 | 1363425 equity_momo
equity_momo's picture

Totally agree Mr lord of the wank.

Sun, 06/12/2011 - 14:45 | 1363288 everycentometal
everycentometal's picture

look, we can write til we are blue in the face. the explanation is simple, the central and international banks know that all the nations that they give money to will never be able to pay it back. they don't give a shit about the money, they want to force all the nations to privatize state assets so that the bankers can take them when the countries default. why do you think the tbtf cant produce the actual titles? they were transferred to the international bankers as collateral so we could ask for more loans. the federal reserve knows we will never make good on our debt, but they will call in the collateral when needed and they along with the imf, world bank etc. will own all the property, state and federal land etc.. so that is the end game for them. trade worthless paper for the worlds assets. so don't delude yourself they will bail out everyone who will take the money and then they will swoop in when they cant pay it back. the powerful dont need money, they want our assets, and so they shall.

Sun, 06/12/2011 - 20:27 | 1363775 Bringin It
Bringin It's picture

Interesting.  The world is one big naked short to these guys. 

I saw Lindberg's father, a congressman from Minnesota describing this gambit in his argument against the Fed.  Eventually, his grandson vanished.

Own the printing press in a market that allows naked shorts and you own the market.

Sun, 06/12/2011 - 21:11 | 1363794 Fancy Bear
Fancy Bear's picture

This is the most coherent model of an end game I've seen.

A high profile expose in the mainstream media would be helpful, for interests of sovereignty and those not liquid enough to catch the gold rocket. I'd call it "Big Enough To Repossess".

Mon, 06/13/2011 - 01:01 | 1364091 cranky-old-geezer
cranky-old-geezer's picture

... they want our assets, and so they shall.

The American Revolutionary War and French Revolution were big "Hell No, Fuck Off" messages to international bankers.

If Greece collapses into civil war, revolution, whatever, it'll be another big "Hell No, Fuck Off" message to international bankers.

If people get fed up and stop playing their paper money games, telling bankers take their debt and shove it, the ponzi collapses, bankers are busted.

Bankers rely on voluntary compliance.

Where have we heard that phrase before?

If voluntary compliance vaporizes on a wide revolutionary scale, that's it, game over, bankers walk away empty-handed.

Mon, 06/13/2011 - 01:49 | 1364140 blunderdog
blunderdog's picture

Not exactly empty-handed--they pick up everything they possibly can that doesn't involve counterparty risk before the collapse. 

Many of them probably fail, but a few would succeed.  There are a few families that have maintained their wealth for more than a few hundred years.  Seems like this is one of those recurring themes, no?

Mon, 06/13/2011 - 13:42 | 1365261 everycentometal
everycentometal's picture

George Washington signed the first 20 year bank charter in 1791. when the charter expired and we decided not to renew it the British invaded and burnt down our capitol (war of 1812).guess what, we agreed to renew the charter. we did not win, we compromised. the British got what they wanted and went home. oh, I'm sure your school text book painted a glorious picture of how we crushed the invaders. try digging a little deeper, or have you learned all you can learn.

Tue, 06/14/2011 - 13:27 | 1368140 FeralSerf
FeralSerf's picture

The ones that own history control the future.

Wed, 06/29/2011 - 11:43 | 1412018 Carl
Carl's picture

It's even worse than that, they'll take it all without printing a single note; it will be done via credited/debt....

Sun, 06/12/2011 - 03:41 | 1362579 Tulli
Tulli's picture

Unbelievably shocking.

Sun, 06/12/2011 - 05:04 | 1362614 chumbawamba
chumbawamba's picture

Oh, fucking believe it, because the numbers are right there for you to see.

If you're a US Citizen, not that it means much anymore, but fucking do something already.  Stop paying your fucking taxes for fuck's sake.  Stop going along with this shit.  Call your fucking so-called representative on Monday and tell them it's their fault and that you are holding them personally responsible for their cowardice and dereliction of duty in allowing this shit to continue.  Withdraw your money from ANY bank or credit union in the Federal Reserve system (i.e. all of them) and put it into gold and silver.

Time is just about up.  If you don't start taking a stand now then you are inviting your own personal destruction.


Now or never, fuck wits.

I am Chumbawamba.

Sun, 06/12/2011 - 06:27 | 1362676 Reptil
Reptil's picture


Sun, 06/12/2011 - 08:49 | 1362775 pazmaker
pazmaker's picture

Good Post Chumba,  by the way,  did you close out your paypal account yet?

Sun, 06/12/2011 - 13:45 | 1363206 chumbawamba
chumbawamba's picture

Not yet.  Your mother will only accept PayPal.

I am Chumbawamba.

Sun, 06/12/2011 - 20:34 | 1363778 DarkAgeAhead
DarkAgeAhead's picture

Funny, his mom pays me.

(can't resist a mom joke)

Sun, 06/12/2011 - 10:17 | 1362854 Everyman
Everyman's picture

Just did Chumba!  I sent the following to the Federal Reserve Board "Contact Us" page.  I recommend that EVERYBODY on this site and as many sites as we can muster send in a very critical comment on it and like I did, make the point they ALL NEED TO RESIGN!

I just found where the $600 billion of the last POMO went via the FOIA request.  I have seen the excel spreadsheet of the so called "Primary Dealers" of which 12 of the 20 are all Foreign Banking institutions that the ECB should be "bailing out" not the Federal Reserve.  I have seen how much money these Foreign Banks have received in comparison to the United States Banks.  YOU WORK FOR US you assholes.  Why did you send money to the EU and not use it to capitalize AMERICAN banks????

The Jig is up, and the word is out.  It is crossing BB, listserv's, MB's, and forwarded to congressional people( for all the good that will do with those corrupt assholes), and news organizations (but the MSM does not do investigative reporting anymore), but THE PEOPLE NOW KNOW!!!  When the STHTF this time people will want your heads collectively, and you ALL deserve to have your heads separated from your body for your actions, and corruption.  You are quite obviously, not looking out for this country or the people of it.  Ben you asshole, RESIGN and the rest of you should quit as well.  I hope somebody is REALLY, REALLY pissed at you enough to do serious harm to YOU!  I will applaud it when and if it happens.  I am not that angry person though, prison does not look good, and I would not threaten a federal official (peons), but your futures do not look good now.  This is the biggest  FINANCIAL SCANDAL EVER!!!  AND YOU HAVE BEEN CAUGHT AND OUTED!!!!

POMO is no longer needed as is QE.  They were both stupid ideas that only serve the elite that is politically collected, and has NOTHING to do with SOUND ECONOMIC PRINCIPALS!!! It has been an exercise in futility and bad judgements from mental midgets like YOU PRICKS, and are unmitigated financial and economic disasters.  You think you are so damn smart and you have just shattered the economy, blew it up, and now you are out of bullets and TOTALLY IMPOTENT!!!

ALL of you should resign immediately.  You need to go and the Federal Reserve needs to close it's corrupt and decrepit doors.  It is an anachronism and no longer needed, especially if the actions over the last two years is any indication of you capability with "economic tools" and the proper judgement to use them.  If POMO and QE are any indication of "level of knowledge and judgement" at the Federal Reserve, then we no longer need the institution or the idiots like you pricks that run the show.  You are corrupted, arrogant, and isolated.  Again, YOU MUST GO!

I only hope REALLY BAD things happen to you via Karma, YOU ALL DESERVE IT.  You all suck as people, economists, financial wizards, and all around in general you ALL SUCK!

BTW why would the "Federal Reserve Bank of the United States need a reporting page with ALL THE COUNTRIES LISTED?  You idiots are supposed to be looking out for us instead of raping us.


NEW:  BTW, Credit Suisse and Deutshe Bank together own at least 2,000,000 shares of FAZ!

Sun, 06/12/2011 - 15:22 | 1362927 Reptil
Reptil's picture

nice, but historically Anthrax works better as persuasive argument.

edit: too bitter? oh well..

Sun, 06/12/2011 - 13:47 | 1363208 chumbawamba
chumbawamba's picture

Good job.  Men in business suits and dark sunglasses will be at your door early Monday morning to axe you some questions.


I am Chumbawamba.

Sun, 06/12/2011 - 15:48 | 1363385 sabra1
sabra1's picture

just do what i did,i reversed the numbers in front of my house!  

Sun, 06/12/2011 - 16:30 | 1363439 WaterWings
WaterWings's picture

The GPS points stay the same.

Sun, 06/12/2011 - 13:57 | 1363219 Blankman
Blankman's picture

You are now on the terrorist watch list.  Thank you for your inquiry.

Mon, 06/13/2011 - 04:17 | 1364203 Crab Cake
Crab Cake's picture

Grow a pair already. If you are going to stand for your country, peaceably or no, then the federal government will label you a "terrorist". Fuck most of us here are "terrorists" just for knowing and disseminating the truth. Fuck them, I am not scared of a label. I am not ashamed of standing for the freedom and protection of my family and countrymen. If this shit keeps up I'll be a terrorist in truth, also known as a free man...

Sun, 06/12/2011 - 14:18 | 1363259 cossack55
cossack55's picture

Too bad you held back.  I wish you would have told the scum how you really felt.

Sun, 06/12/2011 - 14:41 | 1363284 Everyman
Everyman's picture

Actually I did hold back quite a lot.  There is actually so much more, but that starts when the rebellion/civil war/revolution starts.

Sun, 06/12/2011 - 16:56 | 1363476 cossack55
cossack55's picture

I rather enjoyed your first gambit.  I can hardly wait for the next installment (since it will be under much better conditions).

Sun, 06/12/2011 - 20:37 | 1363784 Bringin It
Bringin It's picture

Cathartic.  But this is off - it is an anachronism.  I think anachronism means something that has out lived it's usefulness.  The Fed was a scam from the 1913 beginning.

Sun, 06/12/2011 - 23:50 | 1364027 Everyman
Everyman's picture

True.  But those that think "they are doing God's work", are the problem.

Mon, 06/13/2011 - 01:18 | 1364116 cranky-old-geezer
cranky-old-geezer's picture

I recommend that EVERYBODY on this site and as many sites as we can muster send in a very critical comment on it and like I did, make the point they ALL NEED TO RESIGN!

What fucking worthless bullshit waste of time.

They don't fucking CARE what you nor anyone else thinks. 

I'll guarantee they deleted your worthless tripe way faster than you typed it.

Sun, 06/12/2011 - 11:05 | 1362958 ExploitTheMarket
ExploitTheMarket's picture

"In this new video release, "as a first step," Anonymous has called for public protests beginning on June 14th, continuing "until Federal Reserve Chairman Ben Bernanke steps down." To make their case, they have presented a list of recent scandalous Federal Reserve actions."

Sun, 06/12/2011 - 13:49 | 1363212 chumbawamba
chumbawamba's picture

Oh shit, 3 autonomous "members" of a self-forming anonymous collective have been caught.  The whole movement is destroyed!

Oh woe is us!

I am Chumbawamba.

Sun, 06/12/2011 - 17:23 | 1363515 UGrev
UGrev's picture

IMF gets hit with cyber attack..

Sun, 06/12/2011 - 18:49 | 1363621 cosmictrainwreck
cosmictrainwreck's picture

their spokespeople are pretty eloquent, aren't they? wonder what constitutes a "very major" breach as opposed to only a "major" one....

Mon, 06/13/2011 - 05:57 | 1364242 UGrev
UGrev's picture

Maybe they meant "super ultra mega major".. lol

Mon, 06/13/2011 - 03:48 | 1364197 cranky-old-geezer
cranky-old-geezer's picture

To paraphase MIB's "K", all their ranting and sabre-rattling will accomplish absolutely ...dick.


Mon, 06/13/2011 - 13:47 | 1365275 everycentometal
everycentometal's picture

and yet that is exactly what you want Greece to do. are you politically schizophrenic?

Sun, 06/12/2011 - 12:52 | 1363115 lawrence1
lawrence1's picture

Well said.  PMs and some cash for the bank holiday.

Sun, 06/12/2011 - 14:57 | 1363310 everycentometal
everycentometal's picture

dont be a u.s. citizen, become a sovereign. the first has rights that are given to them by the gov and therefor can be taken away, the other has inalienable rights that cant be given or taken away. find out the difference on your own, you will appreciate it more.

Mon, 06/13/2011 - 04:36 | 1364215 Crab Cake
Crab Cake's picture

Well.... I get what you are saying, but inalienable rights are just that no matter what citizenry a person be of. This is the concept of Natural Law. A sovereign may seek to abolish or infringe upon the law surrounding these rights, but the right remains. A sovereign that does this is what the framers would define as a tyrrany. The founding fathers sought to enumerate natural laws into the constitution.

This may seem all semantics in this day and age, but every person is sovereign to begin with. A government cannot undo this, only infringe upon it. A just government will not challenge the sovereignty of its peoples, only allow for a common framework for a society's necessary functions; as was done with the Constitution. As time has gone on the powers that be have gone further and further away from the Constitution and the recognition of Natural Law. The Federal Government, along with most state governments, are tyrranies. It is time to rebel, it is the only just recourse to a government that tramples inherent and inalienable rights.

Do you see what I am saying? There is no need to declare sovereignty, you already are... It's just that now there is someone, government, that is telling you that you are not; they must be corrected.

Mon, 06/13/2011 - 13:59 | 1365296 everycentometal
everycentometal's picture

well said. our law now is contract and maritime. because of that in some ways you need to take back your sovereignty, such as filing a UCC. you are right, I have simply reasserted something that was already there. it just needed some dusting off.

Mon, 06/13/2011 - 15:08 | 1365520 cranky-old-geezer
cranky-old-geezer's picture

It is time to rebel ...

No, it's time to END that government.  It's long past time to end it.

But we've let it get too big and too powerful.  Ending it is no longer possible.

It'll have to collapse on its own. Unfortunately we'll go down with it. The nation won't survive.

That govt we didn't end when we should have ended it has caused too many problems and created too many enemies around the world.  When it collapses from its own weight, those enemies will pounce in a coordinated strike and take out the entire nation.  

Mon, 06/13/2011 - 08:57 | 1364461 Al Gorerhythm
Al Gorerhythm's picture

I haven't been a US citizen for quite some time.

I'm a "consumer" now.

We are all "consumers"

Consumer ID located on your bank card.

Sun, 06/12/2011 - 15:21 | 1363351 minsky4ever
minsky4ever's picture

Is it OK if I send a Tweet of my junk to my local congresswoman? Her name's Nan Hayworth and she hasn't got a fucking clue. If it isn't a GOP talking point depicted in pictures she won't understand it. And she's a MD to boot. Another Republican medical doctor in congress. The system's so fucked up even the doctors are looking for other work.

Sun, 06/12/2011 - 18:27 | 1363585 SpiritBlade
SpiritBlade's picture

Or at the very least claim 9 dependents, dont pay a penny before April 14th. This alone will keep you out of hot water and accmplish the same end.

And, if you must pay the beast...think of what you will earn in silver during those 15 1/2 months! (Jan11-Apr12)





Sun, 06/12/2011 - 18:36 | 1363604 tired1
tired1's picture

Chuwa who? what? ZH, what's that? No sir, I've never heard of Fight Club.

can I go now? Thank you, sir. I'll keep my eye out.

See something, say something? sorry I confuse it with Don't ask don't tell. I'll do better.

Thank You Sir! Sorry, Mam!

Sun, 06/12/2011 - 21:35 | 1363845 Sven Sikztu
Sven Sikztu's picture

sure would love to- but Schmuckie Schumer is my 'rep'- even if I got the sniveling little shit got on the phone, what could me or anybody convince him to do? He's never worked a second in the private sector! America v2.0 will feature Term Limits I assure you. Or maybe not-- the dis-Union is underway, maybe we'll just have competing groups of cities and states next... maybe the 'blue states' will become ethno-gulags... moreso than they already are. Anyway, no system worth defending allows sick creatures like Schmuckie to burrow into the body politic and rot it like a cancer.

Sun, 06/12/2011 - 06:00 | 1362657 Spirit Of Truth
Spirit Of Truth's picture


Sun, 06/12/2011 - 08:57 | 1362754 Sean7k
Sean7k's picture

Not sure why this is shocking. The US has been Europe's, but especially Britain's, dog and pony show for a long time. The Creature from Jekyll Island is not just a central bank, but a bank run by European bankers.

We enter wars at their direction (WWI, WWII, Vietnam, Bosnia, Etc.), we have bailed them out financially since 1920, when we supported Britain and helped them maintain their social safety net and the pound sterling.

America was effectively reconquered in 1913. The income tax was a transfer mechanism. Any surprise Bernanke testified he couldn't remember where 500 billion went in 2008? The FED papers told us- foreign banks. 

We pay for their defense and maintain it at huge costs. The Marshall plan money was spent rebuilding banks and governments, not industry.

Americans need to start at the beginning and throw out EVERY single piece of history they were taught, then re-educate yourselves. The information is available, from excellent historians, both economic and political. You have been lied to. 

Keep that in mind, because your citizenship is a contract and contracts are not viable when they were initiated through fraud.

Sun, 06/12/2011 - 09:20 | 1362802 boiltherich
boiltherich's picture

Really, I concur, after all that you have seen in the last few years and you find THIS shocking? 

Sun, 06/12/2011 - 10:08 | 1362867 thefedisscam
thefedisscam's picture

Plus, without those big foreign banks support. US$ would have already stopped being the world reserve currency.

Sun, 06/12/2011 - 10:25 | 1362895 Oh regional Indian
Oh regional Indian's picture

Could not agree more. Well said all around. And for anyone that wonders why a regional Indian cares about America...well, it is the epicenter of our current, collective reality.

And it's looking more and more like the cone of a whirlpool.


Sun, 06/12/2011 - 12:20 | 1363034 Ahmeexnal
Ahmeexnal's picture

ORI, the cone of a cesspool would be a better description, given the current state of affairs.

America (and the rest of the world) has to put a stop to european sociopaths and break free from the chains of oppression. Let THEM eat mud pie!

Sun, 06/12/2011 - 14:48 | 1363298 falak pema
falak pema's picture

well not to belabor the point but who is pot and who is kettle... what is cause and what is effect...I know we can go back to the crusades or even the roman empire...but if we started in 1945...we could understand better where the power really lies since the days USA became top dog. With its very own game plan laid out at Bretton Woods...

Sun, 06/12/2011 - 14:57 | 1363307 Oh regional Indian
Oh regional Indian's picture

indeed Ahm. And the root is in cold/grey europe.


Sun, 06/12/2011 - 21:03 | 1363813 SoNH80
SoNH80's picture

The European nazis won World War II.  Our snobs and effete intellectuals (see, e.g., David Rockefeller & Larry Summers, et. al.) can't bend over far enough for the motley scum of European royalty and pseudo-royalty (see, e.g., that fat cow Queen of the Netherlands and the Rothchilds taking the air at Bildeberg).  The U.S. should have allowed the Dutch scum and all the rest of the rabble to starve under the nazi boot in WWII, the Europeans are looting as much as they can in this country (see e.g. the bankster bailout).  India had the right idea, Non-Aligned Movement all the way baby.

Sun, 06/12/2011 - 11:13 | 1362915 i-dog
i-dog's picture

"Americans need to start at the beginning and throw out EVERY single piece of history they were taught, then re-educate yourselves. The information is available, from excellent historians, both economic and political. You have been lied to. "

Excellent advice ... but too late now.

The beatings (draining of all private wealth) will continue until morale improves (in the re-education camps)!

There will not be a QE3 (enough was drained to overseas banks through TARP and QE2, thank you very much). There will not be an election in 2012 (who needs an election during martial law?). You will have every opportunity to pay off your housing, education, vehicle and iCrap loans in the work camps. And you'd better brush up on Spanish and a few Slavic dialects if you expect to be chatting with the guards!

The only way to avoid this outcome is to now do what everyone has been telling Greece to do for months: default, secede and start again - by rebuilding all institutions from the county level on up. There is nothing to save in the present corrupt structure.

Sun, 06/12/2011 - 12:56 | 1363122 lawrence1
lawrence1's picture

Unfortunately, you are right.  Way too late.  As Gregg Palast wrote, the war against the middle class has been won without firing a shot.  But better to go down firing than on you knees.

Sun, 06/12/2011 - 15:34 | 1363365 minsky4ever
minsky4ever's picture

Thank god I learned Romanian and Russian!

Sun, 06/12/2011 - 14:15 | 1363249 eureka
eureka's picture

You've got it wrong: All US Fed action is for self-preservation.

Sun, 06/12/2011 - 09:22 | 1362807 YHC-FTSE
YHC-FTSE's picture

Come on. 18 of these POMO banks have been listed on ZH for over a year! I don't know why anyone would be surprised.

Sun, 06/12/2011 - 04:44 | 1362603 Sudden Debt
Sudden Debt's picture

Like THE pope would say:

Thank you for the flowers AND THE MONEY BITCHEZ!!!!

Sun, 06/12/2011 - 06:01 | 1362658 Tom_333
Tom_333's picture

All those CDS´make a big difference...

Sun, 06/12/2011 - 06:56 | 1362700 ISEEIT
Sun, 06/12/2011 - 10:53 | 1362930 doesmybuttlookf...
doesmybuttlookfatinthis's picture

Now I know why my butt seems so fat. Its from getting bent over by the FED. I feel so violated.

Sun, 06/12/2011 - 11:16 | 1362968 He_Who Carried ...
He_Who Carried The Sun's picture

"...the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!"


It was Bill Clinton who said that every American is 'entiteled' to her/his own house. It was Alan Greenspan who invited foreign lenders to buy all these 'structured investment vehicles' and if the US does not want to end up like Greece with the EU dictating terms of bailout, it better pays back.

Chill, baby, chill !!

Sun, 06/12/2011 - 14:07 | 1363232 eureka
eureka's picture

Not shocking at all! Check your facts y'all.

A) when you have a $-world-reserve-currency printing press AND more guns AND spires AND spy-and-kill-drones than the whole rest of the world, it doesn't matter how much $ you print or who you give it to.

B) any and all $ "given" to "foreign" banks, are actually given for self-preservation; if the globalist leveraged financial system's flaws are revealed and "foreign" fiats collapse - the US financial system's de facto bankruptcy is revealed and US finance collapses. It is called "Mutual Dependency" or "Inter-Dependence".

C) ALL of the in above article listed "foreign" Fed bail-out recepient banks, were instrumental i orchestrating and financing the US housing bubble.

D) The US corporatist/facist bankster military empire needs bubbles - because - the US over-consumes and under-produces - AND - consequently the US eoconomy is built predominantly on leverage of paper assets and wealth extraction from the rest of the world.

E) All empires follow this model - the US is merely monky'ing previous empires.

F) Empires lifespans historically/, chronologically, sequentially halftime: Rome lasted 600 years, Spain 300, Britain 150 - and US will last 75 (1945-2020)

G) If you do not see the completely inter-relatedness of globalist banking - you are in denial. The issue at hand is NOT "domestic" versus "foreign". The issue at hand is gloabalist leveraged finance, which is the New Colonialism, which cannabalizes all national consciousness and national institutions.

H) If you want to do ANYTHING productive against it, you must withdraw all your capital from all major banks AND involve yourself in rebuilding the strength and vibrancy and productive INDEPENDENCE of your own local community. Anything short of these two basic actions is infantile, blowviating, passing the buck finger-pointing ignorance and impotense.

Sun, 06/12/2011 - 14:57 | 1363302 falak pema
falak pema's picture

Jese the USA is short dikked or shorted ...or whatever, according to your analysis...Finally those who had the longest Empire carried the shortest swords...I wonder if there is a message there ...for the pygmies...of Congo...not that I be anthropologist...who understands whats what...

Sun, 06/12/2011 - 14:55 | 1363305 Optimusprime
Optimusprime's picture

+1 and well said.  We shall see if your expectation of 75 years for the US pans out.  It worked for the USSR.

Sun, 06/12/2011 - 18:32 | 1363603 WonderDawg
WonderDawg's picture

Truth. Thank you, that was very perspicuous. You saved me a lot of keystrokes, because the truth needs to be laid out.

Sun, 06/12/2011 - 16:03 | 1363400 adeptish
adeptish's picture

Note that RBC (Royal Bank of Canada) is a primary dealer.

Year to date earnings...3.3 billion dollars.

My guess is that they will own one of the big U.S. banks within a year for pennies on the dollar.

Sun, 06/12/2011 - 21:14 | 1363823 instinctiveDrift
instinctiveDrift's picture

Great article Tyler. It does explain many of the questions I've been asking myself about QE2.

Mon, 06/13/2011 - 00:44 | 1364090 disabledvet
disabledvet's picture

"okay, you're on the record," 777:  Jimmy Buffet Live.  The only "implication" of this is of course that a rally in treasuries would surely proceed.  we all know from the 70's that "the petro-dollars were repatriated right back into the US" and so it would be via so called "bailouts of foreign banks."  indeed this has only been enhanced via Fukushima and what is in fact an "Arab AWAKENING" and not a so called "Arab Spring" at all.  As such of course The Berank will not be impeached as in fact he now should be celebrated (and it does shock me that i of all people who so perfectly ridiculed him should say this--appropos though?) as "pretty much spot on" although i think it is now apparent he--amazingly--could have let market forces determine interest rates to positive effect much earlier.  obviously insofar as economic growth is concerned QE II is a total failure--and so what makes this..."squishiness" suddenly appear "squemish" is the memories of 2008.  "How is one to know" to invert Greenspan's famous locution "when an irrational pessimism will suddenly take hold..." taking out all of Wall Street, a big chunk of the US Senate and "basically every State and Local budget in the nation"?  Clearly the real story we're all staring at is "was the real estate collapse of 2008 just a precursor to something even more dramatic?"  Simply put at this point in the ballgame i know longer take issue with the Federal Government's ability to sustain multi-trillion dollar deficits.  I do take issue with the solveny of various States in the Union however should there be a dramatic decline of similar magnitude in real estate values per 2008.  "We've never seen this before" should have been what the financial networks should have been saying all along.  Instead "we're always being surprised" when in fact the math has never added up "and it's all been political since day one."   THE MARKETS ARE COMING REAL ESTATE LOBBY! 

Mon, 06/13/2011 - 02:02 | 1364148 Oh regional Indian
Oh regional Indian's picture

Well said all around disabledvet.

What pray do you have against 'Carriage return"??? 


Mon, 06/13/2011 - 10:41 | 1364737 instinctiveDrift
instinctiveDrift's picture

As a non banking, non financial industry guy I gotta say I don't get all the linkages here. Can someone put together a few pieces for me?

So, PD get treasuries bonds from Treasury. They auction them off. We've seen evidence that up to half of all the auctions were purchased by the fed as part of QE2. Sure, some of those PD's are foreign banks but doesn't the money created to cover the bond purchase go to the Treasury ultimately with the PDs taking a fee off the top?

How did the foreign PDs get 600B from the fed then?


Sun, 06/12/2011 - 00:27 | 1362392 Alcoholic Nativ...
Alcoholic Native American's picture

Support the mercs! Fighting Unemployment.

Sun, 06/12/2011 - 08:20 | 1362756 max2205
max2205's picture

Our MBS scam did to ECU what Iceland did to UK X 1 Billion

Sun, 06/12/2011 - 14:46 | 1363289 eureka
eureka's picture

Spot On, max2205!

Sun, 06/12/2011 - 00:36 | 1362408 bigwavedave
bigwavedave's picture

"or just go ahead and outright buy up every underwater mortgage in the US."

this is why you have not yet heard of the 'plan' for the GIC's. expect to hear about the restructuring of Fanny and Freddie along with the other agencies in the next week or two. implicit in any 'grand plan' for these monsters will be the monetization of almost all US mortgages.

Sun, 06/12/2011 - 08:23 | 1362757 101 years and c...
101 years and counting's picture

Just out of curiousity, how can Bernanke or ANYONE else launch QE3 once this BULLSHIT is revealed, Bernanke IS impeached (and IMPRISONED TO A FEDERAL POUND ME IN ASS PRISON) and Americans are finally awake to the complete destruction of our country courtesy of the Fed, Congress and the FUCKING PRESIDENT!

Sun, 06/12/2011 - 12:09 | 1363041 tired1
tired1's picture

Make one last deal with China: build a 'special' prison over there and let the Chinese house them.

Sun, 06/12/2011 - 14:28 | 1363268 cossack55
cossack55's picture

Just out of curiosity, who exactly are you counting on to prosecute ol' Benny von Bernankenstein?  "They" all work FOR him. Not going to happen my friend.

Sun, 06/12/2011 - 18:37 | 1363610 WonderDawg
WonderDawg's picture

Wrong. "They" all work for the banks, same as Bernanke. Bernanke is NOT the Fed, he's just the public face, following orders. He'd make a good sacrifice if one is needed.


Sun, 06/12/2011 - 09:50 | 1362851 three chord sloth
three chord sloth's picture

Monetize and internationalize all those mortgages.

Then, and only then, let housing prices drop to their real value -- triggering a tidal wave of defaults. Et viola! The land beneath your feet owned by foreign interests! All those pesky Americans with their rights and freedom and independence (at least some of us still want it)...? Suddenly landless and powerless peasants.

Then the rightful rulers of the world, the financial/political/business elites, can run things unopposed, Euro-style. Now take your government-provided bag of beans, shut up, and sit down.

Sun, 06/12/2011 - 13:08 | 1363139 zaknick
zaknick's picture

Always enjoy your insights.

It started in the sixties with that pesky supreme court, civil rights (for the inferiority complex ridden rednecks that was anathema), Great Society programs against poverty like the War on Poverty which the banksters declared in congress (Bush and his Population Task Force) was causing dysgenics ( too many blacks breeding and white women on the pill) and which was also the inspiration fir the KKK Zionista bankster "war on drugs" (in which they are the true drug cartels).

Yes, American freedom and prosperity was a challenge to their power (as it should be; why does somebody need a billion much less a trillion dollars?). The tax brackets and other policies created by the Depression era, real populist Democrats were all dismantled while they gave you funny money credit heroin. Now they're going to privatize what's left of Amerika. A Brief Comment

Sun, 06/12/2011 - 14:55 | 1363314 eureka
eureka's picture

Dear three chord sloth, - you can't have empire AND freedom.

If you want the latter, you must destroy the prior.

(And, fyi, EU is not empire, but community - so, if you can't build community here in the US yourself, based on Libertarian or whatever principles, you should WISH for EU style communities to come to the US, because otherwise what DO you have? Nothing but chaos and disintegration as a result of nothing but provincialism, isolationism and the somehow oddly and oxymoronically attached superiority-complex called empire).

Mon, 06/13/2011 - 04:25 | 1364207 falak pema
falak pema's picture

Bravo! Eureka, I feel like jumping into your tub!

Sun, 06/12/2011 - 10:15 | 1362878 ISEEIT
ISEEIT's picture

I think that is how it will go down too. obomer is just the delivery tool. Fed will buy mortgages. That will be the last gasp.

And then it's lights out (for a while).

Yes, I fucking understand that the Fed has already bought mortgages. The difference this time is that it will be sold politically as an open program, something 'great', 'grand' (unprecidented, historic, heroic): Whatever it takes to complete the game.

They are making the kill shot and we are the target.

Globalization nearly complete.


Ironic that a Black man serves the masters of this scheme of slavery at a level never prior tolerated eh?

Sun, 06/12/2011 - 11:04 | 1362956 Sam Clemons
Sam Clemons's picture

I think that was the point all along.  Race is a great way to divide people's allegiance.  A divided country is much easier to conquer.

Sun, 06/12/2011 - 17:03 | 1363490 falak pema
falak pema's picture

They say he was groomed for the part as the chosen one since childhood by CIA and globalist Brez...type players. Orly be my oracle...I state my source of purified legendary water...

Sun, 06/12/2011 - 12:30 | 1363085 Kayman
Kayman's picture

"Ironic that a Black man serves the masters of this scheme of slavery"

That's the genious of Hank's purchase of Obama. A quick bait and switch- trashcan "hope and change", carry on with more of the same. 

And nearly all black voters support Obama because he is black.

Amazing what a few trinkets will buy ! 

Sun, 06/12/2011 - 17:11 | 1363501 adeptish
adeptish's picture


of all the words you could have spelt

Sun, 06/12/2011 - 19:21 | 1363670 Kayman
Kayman's picture


Yesterday I couldn't spell genious; now I are one.

Glad you got a chuckle from my error.

Mon, 06/13/2011 - 01:09 | 1364103 adeptish
adeptish's picture

de nada...

Mon, 06/13/2011 - 05:22 | 1364228 AnAnonymous
AnAnonymous's picture

And nearly all black voters support Obama because he is black.


Kid me not, black voters did not support Obama because he was the democrat candidate, just as they have been doing for decades now.

Sun, 06/12/2011 - 15:23 | 1363355 eureka
eureka's picture

Fanny and Freddy's portfolios will be sold to big, PRIVATE capital, at a discount, sponsored and backed by the Fed, which is the instrument of PRIVATE capital.

The blind spot of populist capitalism is that PRIVATE capital conglomerates into cartels, monopolies, funds and corporations - i.e. effectively elitarian collectives, who COLLECTIVELY usurp all assets and all power from the 97% mass of the population.

PURE capitalism is a wet dream - Disney for "adults".

It is NOT socialism or bureaucracy, which are decimating the US - it is the PRIVATE capital collectives behind government, which orchestrate everything without exclusion.

Sun, 06/12/2011 - 16:55 | 1363479 cossack55
cossack55's picture

By jove, I think he's got it.

Sun, 06/12/2011 - 17:09 | 1363496 falak pema
falak pema's picture

Jove must be chuckling in of the original Oligarchs...the true godly ones..not these sham avatars that Prometheus raised...Oh for those godly days...when Hercules roamed from the Caucasian heights to his pillars...

Sun, 06/12/2011 - 17:15 | 1363499 falak pema
falak pema's picture

aka Greece and mount Olympus...sell off programmed. USA to be no exception.

Sun, 06/12/2011 - 19:56 | 1363736 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Dr. Lindsay Williams says that one of the globalists objectives is to own every piece of U. S. residential real estate.  I must admit they "do" think big just like demons should.


Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/13/2011 - 09:12 | 1364499 Al Gorerhythm
Al Gorerhythm's picture

And if the peeps swallow that load, then they truly need fucking over.

Sun, 06/12/2011 - 19:40 | 1363698 swanpoint
swanpoint's picture

could you please change your profile image, i can't read your post.

Sun, 06/12/2011 - 00:37 | 1362409 Caviar Emptor
Caviar Emptor's picture

UNderstand one thing: all the banks mentioned are part of the brotherhood of banksters. They and their US brethren built a huge pyramid of derivatives for the sole purpose of looking like they were transacting business, thereby charging fees and receiving bonuses. It's just like if trans Atlantic insurance companies kept selling each other insurance to insure the previous insurance against loss from the prior insurance which insures 1000X over the same transaction. No different than a chain letter. Take down one, you expose the whole corrupt mess. 

Sun, 06/12/2011 - 01:02 | 1362446 MrPalladium
MrPalladium's picture

+1000!! That is the essence of the bankster ponzi. Nothing more need be said!

Sun, 06/12/2011 - 03:15 | 1362557 CJLopez21
CJLopez21's picture

yeah can we just get the pitchforks already....

Sun, 06/12/2011 - 05:54 | 1362651 falak pema
falak pema's picture

No, from their Oligarchic world order perspective they are building UNIVERSAL LOVE AND WORLD PEACE...Just like the Catholic church did in the middle ages. "Believe that ONLY through US will you reach the promised land...only through us and his VICAR on earth...." Wow, it worked well until they lost Jerusalem and then the whole Ponzi came crashing down on their heads. They started fighting amongst themselves and the kings and Popes were at loggerheads as to who was top dog; until Martin Luther and Machiavelli came along and said "game over"...Then it was time for the Renaissance and the Reform!...Game changer! Poor Popes who pooped alone in the Vatican from then on!.. That's how the Oligarchy vs People game goes...written in blood and guts!

Sun, 06/12/2011 - 03:11 | 1362561 Oracle of Kypseli
Oracle of Kypseli's picture

I am repeating a story that I posted in March 2010

Six of my high school classmates and I went on a long weekend retreat up in the mountains. With not much to do and plenty of time, we decided to play friendly poker game with about two hundred dollars total.

Soon enough two of us have broken the other four. In order to keep the game going, we started issuing little sheets of paper with our signatures and various denominations. $10, $20, $50 and $100

Two days later, the two of us who had won all the actual dollars, put them away and continued playing with these IOU's and the IOU's had grown to thousands of dollars. Mind you that the risk taking had exploded, as you knew that you can create more IOU's.

Now the weekend came to an end and trying to get paid on the IOU's was of course out of the question.

Is this telling or what? You learn fast in real examples in life.

Bernanke's weekend is coming to an end.

Sun, 06/12/2011 - 05:06 | 1362617 chumbawamba
chumbawamba's picture

So the moral of the story is that you and your friends are all gambling addicts?

I am Chumbawamba.

Sun, 06/12/2011 - 10:31 | 1362905 MolotovCockhead
MolotovCockhead's picture

Not gambling addicts...... aspiring Bankers!

Sun, 06/12/2011 - 12:56 | 1363114 Kayman
Kayman's picture


No Chumba, the moral of the story is that they discovered fractional reserve banking.

The lower the reserves, returns run to infinity. Of course, as we have now discovered, this games runs perfectly, in the absence of risk.

Sun, 06/12/2011 - 10:54 | 1362933 BobPaulson
BobPaulson's picture

I've seen that scenario before in "friendly poker games". The bad players get cleaned out then get loser's remorse when they start imagining the wives finding out they lost a hundred bucks to their friends, so they double down into virtual money, then double down again, etc.. I've often wondered if it is subconcious or intentional. Either way, the debt gets too big to pay back and the winners are suckers for letting them play with empty promises. 

Sun, 06/12/2011 - 12:55 | 1363119 Kayman
Kayman's picture


Kind of like the TBTF bankers in the slice and dice, churn and skim derivatives market.

Too bad for your buddies that Hank or Ben wouldn't cover their bets.

Sun, 06/12/2011 - 12:45 | 1363101 tired1
tired1's picture

Were they interest bearing IOU's?

Mon, 06/13/2011 - 03:24 | 1364188 Dave Thomas
Dave Thomas's picture

Weekend at Bernanke's!

Sun, 06/12/2011 - 03:40 | 1362578 Reptil
Reptil's picture

Please Greece, default. Now!

Sun, 06/12/2011 - 08:24 | 1362760 shortus cynicus
shortus cynicus's picture

But if Greace defaults and then the worldwide banking ponzi scheme collapses, then anyone will say that THEY HAVE CAUSED IT !!!

Greece is a messanger bringing bad news.

TPTB try to kill the messanger and get some more months of prosperity.

Sun, 06/12/2011 - 09:18 | 1362805 YHC-FTSE
YHC-FTSE's picture


Spot on.

Sun, 06/12/2011 - 13:19 | 1363165 cbaba
cbaba's picture




Sun, 06/12/2011 - 19:53 | 1363724 razorthin
razorthin's picture

can't be done with a coxxukking fiat fractional reserve scam.

Sun, 06/12/2011 - 00:41 | 1362411 Threeggg
Threeggg's picture
Government of the Banks, by the Banks, for the Banks, shall not perish from the Earth.



Sun, 06/12/2011 - 03:18 | 1362552 Quixotic_Not
Quixotic_Not's picture

Here's a bit of history on that (and how the sheeple roll over to tyranny):

The New Deal and the New "Emergency"

Franklin D. Roosevelt was inaugurated as President on March 4, 1933. Throughout the country, banks were slamming their doors on depositors clamoring to withdraw their own money, preferably in gold.

For people who were seeking to exchange soft paper currency for the more stable metal-as existing law allowed, and as the Government had solemnly pledged-the new President had other ideas.

On March 5, 1933, one day after taking office, Roosevelt issued a Proclamation convening Congress in Extra Session at noon on March 9, 1933, a decision allegedly necessitated by what the Chief Executive referred to vaguely as "public interests.

 But March 9 was still four days away, and Roosevelt apparently was impatient to stop bank depositors from withdrawing their paper money or converting it to gold.

Accordingly, the next day, March 6,1933, he took an unprecedented step. For the first time in United States history, an American president closed the nation's banks.

By Proclamation, he stated the following: the recent gold and currency withdrawals had been "unwarranted" and for the purpose of "hoarding"; speculation abroad had caused "severe drains" on the "Nation's" gold stocks; the result was to create a national "emergency"; further "hoarding"; and "speculation" must be prevented and "appropriate measures" taken "to protect the interests of our people"; the Trading with the Enemy Act, as amended, had given the President certain powers over private gold; and therefore, "to prevent the export, hoarding, or earmarking of gold," the banks would take a "holiday" from Monday, March 6, 1933, to and including Thursday, March 9, 1933, and that during the holiday no bank would "pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever of any gold . . . or take any other action which might facilitate . . . hoarding".

Roosevelt's action was devoid of even arguable legal justification. Nowhere in the Constitution is any branch of government, let alone the Executive, given the power to close privately owned banking institutions.

Nor did the Proclamation even purport to invoke constitutional authority. And despite the Proclamation's passing reference to an alleged "national emergency," no war conditions were present which could have enabled Roosevelt to argue that, under the Commander-in-Chief's "war powers," he had the authority to place in suspended animation a huge, crucially important part of America's commercial establishment. The Proclamation's reference to the World War I Trading with the Enemy Act, which had long since expired, was a strained attempt to find some semblance of legal support for Roosevelt's unprecedented assumption of complete control over America's banking system.

It is no wonder that Roosevelt immediately sent to a docile and compliant 73d Congress, a hastily drawn but comprehensive bill to amend the moribund Trading with the Enemy Act and to attempt to secure a legal basis for the unilateral action he had already taken.

You see, this is not the first time that the USofA has been looted by the District of Criminals, nor will it be the last.

Sun, 06/12/2011 - 05:14 | 1362619 chumbawamba
chumbawamba's picture

Nope, this is basically the last time.  There won't be anything to loot after this.

Now or never, take a stand...

I am Chumbawamba.

Sun, 06/12/2011 - 06:07 | 1362661 falak pema
falak pema's picture

Its what Elvis sang! ..."It's now or never..."

Sun, 06/12/2011 - 09:39 | 1362827 Harlequin001
Harlequin001's picture

and "Just one Cornetto..."

Wed, 08/10/2011 - 02:48 | 1545348 mediahuset
mediahuset's picture


Another very solid tutorial. Thank you. Not something I can use right now but I bookmarked for the future.

Mon, 06/13/2011 - 01:21 | 1364120 Quixotic_Not
Quixotic_Not's picture

Chumbawamba, there's still plenty to loot...

Personally, I'm tired of trying to educate the sheeple, they seem to be more than happy getting bent over, again and again and again!

Time to live a bit, all this stupidity is getting old.

Good luck with the huddled mongrels,

QN out!

Sat, 08/06/2011 - 02:48 | 1529813 mediahuset
mediahuset's picture

high pr backlinks

I don’t suppose I have read anything like this before. So nice to find somebody with some original thoughts on this subject

Sun, 06/12/2011 - 05:24 | 1362630 rufusbird
rufusbird's picture

Yes, but FDR's actions were taken during a time in world history when dictators running countries was a common occurance! I, ahh, ... um,... err,,,, well,,... I...ahh,....(quietly withdraws...)

Sun, 06/12/2011 - 14:35 | 1363279 Quixotic_Not
Quixotic_Not's picture

FDR's family was a minority owner of the Federal Reserve, and FDR received an allowance from his mother until the day he died.

Can you say self-dealing, I knew you could  ;-)

Sun, 06/12/2011 - 10:08 | 1362871 mick_richfield
mick_richfield's picture


Sun, 06/12/2011 - 09:20 | 1362416 Manthong
Manthong's picture

Just following orders and spreading the wealth around.

Never said specifically from who and to whom or where.

Sun, 06/12/2011 - 00:42 | 1362419 Caviar Emptor
Caviar Emptor's picture

What's at stake now?  A grand collapse. The stakes are higher than 2008. Make no mistake. And let me be clear. 

Sun, 06/12/2011 - 00:55 | 1362435 lizzy36
lizzy36's picture

Much higher.

Everything in 2008 was papered over. All the debt still exists. It hasn't been cleared, only moved around.

The only thing that is different is there is 1000x more moral hazard in the system. Courtesy of endless bailouts

When confidence turns this time, it will be on a penny, and it will be damn near impossible to reverse.

Sun, 06/12/2011 - 01:02 | 1362447 Tyler Durden
Tyler Durden's picture

And the only solution, at least to Bernanke, is to dilute fiat exponentially more.

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