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

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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

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