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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
BobPaulson's picture

I'd say 99% of those people not paying are NOT doing it as a political statement.

francis_sawyer's picture

While I admire the 'spirit' of your observation, I'd be inclined to color your conclusions a shade differently...

4 million Americans not paying their mortgages ISN'T as much an act of rebellion (though there may be isolated instances where that is the case)... In aggregate, it's probably just an issue of...

"I'm so stupid, I just don't what to do... Let's try NOT PAYING and see what happens... If it lasts, whoopee for me... If it doesn't, I'll figure it out then... Maybe in the process, some political candidate will promise me a cookie..." 



RockyRacoon's picture

While I hope this might move pols to act against Ben Bernanke, I have yet to see anyone challenge him so far.

Say, what?  Oh, you mean other than the ususal group of crackpots like Ron Paul, etc.   And the hearings that were attended by a couple of snoozing street bums -- and no media.

Maybe they could use our encouragement instead of our contempt.

Hansel's picture

Ron Paul talks a good game.  I become less impressed with his actions by the day.

I am a Man I am Forty's picture

well, he's still done a 1000 times more than just about anyone else i can think of and does a great job getting common sense out there when it comes to foreign policy

francis_sawyer's picture

I admire the effort Ron Paul has put out as well... Kudos for that...

Sadly, in reality... He'll never get within a square kilometer of the Oval Office... Or if DOES, he'd better be either riding in a "popemobile", and/or steer clear of book depositories...

Stay out of helicopters & don't cross the street RP... Francis_Sawyer's sound words of wisdom...

RockyRacoon's picture

Have you ever listened to his ass-reaming of Bernanke at EVERY opportunity, especially during any Congressional hearings where he has been a member?   Come on, man.   Listen up.   Have you heard his stinging criticism of the Federal Reserve in any televised interview?  The man has never been given the tools to do anything, and the piddly hearings he was holding were a sop to try to placate him.    He is serious.   Therefore, he has no chance at power.   I fear for his life should he gain any political foothold.

Moe Howard's picture

Although I don't follow it closely, I saw a FEDREP in Congressional testimony recently state it is their mission to hand out the cash to foreign banks, in fact, the dude quoted chapter and verse. The Congressperson [sorry don't remember which one] did not have a follow up question. The key point is that I am sure they have it written in some regulation that they can do it. He was not afraid of the question, in fact, he was ready for the question.

When dealing with lawyers [and banksters], the best bet is to burn all the law books except the Constitution and start there. Everything that has accumulated is to their benefit. The US Code is one giant 'fuck you' to the American People.

Sean7k's picture

Ask the Native Americans how well the Constitution protected them. The Constitution has been a doo rag since 1789. The law was clear, George Washington was clear, Marshall was clear, but their land was stolen anyway.

Anyone depending on Constitutional law to protect them is laughably naive. Heck, we just lost the 4th Amendment completely. Wake up people!

JW n FL's picture

It is time for "We the People" to Arm ourselves and defend our Rights! The Constitution is under attack (again, some more, as usual) thusly we should prepare to defend the Constitution thru any and all means!


Who is with me? LOL!! dont everyone break a leg lining up to fight Washington DC now.. LOL

cossack55's picture

The constitution is a tool to be used against the populace.  Burn the damn thing and revert to Articles of Confederation, and pay very close attention to state elections.  The first state to secede will be gaining a new resident 1 day later.

CompassionateFascist's picture

Native "Americans"? You stupid dweeb...there was no "America" until White Anglo-Saxons created it by defeating 400 tribes of stone-age savages. Who now run casinos....

MrPalladium's picture

You're a hero!!

It's been a while since I sent in $100. Do you still need donations, or does advertising revenue suffice?

slow_roast's picture

I'm glad you said something...I immediately went and donated $100 to the site after reading your post.  How could I not?


Best site on the internet hands down.

topcallingtroll's picture

This is not a moneymaker and tyler durden has too much pride to ask for donations in the posts.

Yes more donations are helpful. It is not a moneymaker yet, and zero hedge doesnt line up at the government trough like NPR and PBS. They need more money to survive and get the word out.

Any size donation is appreciated. Tyler of all people knows the hard times many of you face.

Milestones's picture

Agreed Tyler; unless 10-15 % of Mercans grasp what happened during Q2, then this country could go off the tracks. These elites keep bring up things that eventually the people will understand and take to heart.      Milestones.

Quixotic_Not's picture

Surely you jest?

'MerKans will continue to vote for duopoly; and the banksters will continue to issue marching orders to politeers; and the politeers will continue issue marching orders to generals; and the .gov thugopoly will violently continue crowd control, ad infinitum...

Welcome to the new boss, same as the old boss - Same shit, different century.

The huddled mongrels have spoken, and they love tyranny....

Bringin It's picture

Funny.  You could be right.

Concentrated power has always been the enemy of liberty.'s picture

Thank you Tyler.  I have sent this to my address book, various news outlets, my senator, etc.  I think the ship has sailed and rome will burn, but I'm glad the word is getting out. 

Truly, thank you.

JW n FL's picture
by Tyler Durden
on Sun, 06/12/2011 - 00:50


This story will be headlined until well into next week.



holdbuysell's picture

So, if we already know that the US government is controlled by corporations (e.g. financials, oil, etc.), where does this road go?

JW n FL's picture

how do you feel about live fire situations?

holdbuysell's picture

Yea, it seems it will come to that.

Threeggg's picture

When the can is "kicked" the road follows !

Quixotic_Not's picture

And the tail wagged the dog....

SilverDosed's picture

The same circles, different paths, just keep that shit moving and everything will be alright.

Idiocracy's picture

Ok then, the ulimate question is, how many separate countries does the 50 state union become?  2? 3? 4?  

Once the Monopoly money disapears completely, there is no way the Volvo drivers from MA and CT can remain part of the same country as the slack jawed, gun worshipers from TX and AR.  You can't paper over these profound differences forever.

I would love to get more thoughts on this from the ZH group (smartest group on the net that I've found).  I have been wondering about this for some time now.

silvertrain's picture

I would tend to side with the people that own the guns I guess..

JW n FL's picture

you should own a bunch of large caliber weapons and side with yourself, your nieghbor or your loved ones! fuck them that do the bidding of the Banker Terrorists!

darkpool2's picture

Family.... First and last. Fuck any and all notion of "country", that's a "contract" that needs to be buried in the garbage can of history( to steal an expression) Until we all wake up and understand that it's artificial tribal and geographic boundaries that enslave us, we will continue to be repressed, lied to and exploited. Are you a "sovereign individual" or not?

I am a Man I am Forty's picture

i would hope that there would be closer to 40 separate countries, let the socialist states combine together in the northeast, but most states will probably fly solo, those with big debt burdens won't want to like ca and il, waiting for tx to be the first to give the us the finger

dbTX's picture

Gunslingers always out do volvo drivers

Optimusprime's picture

Thanks for the graphics--the first was not very plausible (I had seen it before), and the second did not even try to be plausible--but cracked me up!  LOL


A couple decades ago someone wrote a book "The Nine Nations of America" that made a reasoned argument for the devolution of the US into smaller blocs.  Can't recall the author now, but it made a few reasonable points.

knowless's picture

here's a half assed visual attempt: http://i.imgur.com/Mo01X.jpg

incredibly simplistic drawing/thinking, I would estimate maybe near 20-30 countries, many quite small.

the central plains east of the rockies i think would be a pretty contested region..

nebraska kansas iowa missouri maybe meriting their own state, i think there will be less countries than there currently are states, but more than just 3 or 4.

geography is generally the boundary of states because of defensible positions in war. so all the square states would fragment and have their borders drastically redrawn.

the boundaries will look nothing like what people conventionally think the state lines are, and patriotism towards the concept of the USA will quickly fade once the gun is in their face.

Idiocracy's picture

Hard to imagine any states throwing it in with Mexico (or Russia) but I could see two or three maybe tying the knot with Canada (Maine?, MN?).  China in a lot of ways seems just as brittle as we are.  So I have a hard time seeing them as a hegemony over the long term.

I also doubt all the current political state boundaries would remain unbroken.  Border lines like the 4 corners out West would seem pointless in a reshuffle under duress. I suspect that geography would become the driving factor

eureka's picture

Dear ideocracy, - VERY interesting question, indeed:

"how many separate countries does the 50 state union become?" 

How about 5?

NW, SW, Middle, SE and NE - each region/new-country led by their largest state.

Rusty Shorts's picture

"how many separate countries does the 50 state union become?" 


How about 3141?

knowless's picture

i only disagree with you because your assessment is based on current arbitrarilly defined regions. in a true collapse and restructuring, tensions that were kept in place by the federal governement will become acceptable political issues, for example race, religeoun, and class.

I dont think it's so clean cut, and a much more likely scenario is based on strategically definsible geography with a coherant national identity, any currently "diverse" region will fall to the more cohesive monocultures as the diversity will be a cause for extreme tension and violence. my above post is overly simplistic, but tell me the truth, do you think that a homogonously mormon SLC with their current predominant values would not have the disipline to maintain itself as switzerland has in the past? think of the geography and mindset, utah has already passed PM's as legal tender.

Fancy Bear's picture

The American stock markets won't surge if American consumers keep getting squeezed by inflation in gasoline and food prices. Some equities will do well, but P/Es are too high and the outlook is abysmal.

Gold should uncouple from the US indices before long. Clearly global inflation should drive gold, while depression spanks US equities.

JW n FL's picture

I dont know how else to say this..


there is not enough energy to go around.. we are burning thru all the go go juice!


there can not be any kind of real recovery becuase there is not enough energy in the supply chain!


once you figure that out, everything will make perfect sense.. it is fire control, putting out fires.. trying to maintain control over the crowds while the world goes no where..

eureka's picture

Yes, Fancy Bear. I agree.

AND - all zerohedgers should, as part of their patriotic duty the original, Libertarian US ideals, dump all US/globalist stocks - AND - withdraw all funds from all TBTF US/globalist banks - AND - buy PMs - AND build self-sufficient local communities - AND - educate their fellow citizens on the facts represented here on zerohedge and on Max Keiser etc etc

If we don't do ALL of these things, we are no better than the sheeple or the elite.


JW n FL's picture

we better leave the U.S. becuase the F.D.A. will want to come shut down our farm for not buying corporate foods!

Subprime JD's picture

The only mistake that Bernanke made was that he didn't print enough. The reasoning behind the "limited" easing is that the proles would get too scared of inflation which is absolute nonsense. As everyone knows, inflation is a good thing. I'm confident that Bernanke will soon do the right thing and monetize up to $5 trillion in government bonds, corporate debt and student loans. As everyone surely understands, more money in the hands of the government, Fortune 500 and the people makes us all wealthier.