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Fed Preparing For US Default Says Plosser
That giant whooshing, and humming, sound you hear are all the printers at the basement of Marriner Eccles getting refills and start the warm up process. Because according to the Fed Charles Plosser the Federal Reserve is actively preparing for the possibility that the United States could default. Which can only mean one thing: an immediate paradrop of millions of $100 bricks to every man woman and child in the US since as we all know by know Tim Geithner has repeatedly confirmed the Treasury has absolutely no default plans. None.
Per Reuters:
Philadelphia Federal Reserve Bank President Charles Plosser said the Fed has for the past few months been working closely with Treasury, ironing out what to do if the world's biggest economy runs out of cash on August 2.
"We are in contingency planning mode," Plosser told Reuters in an interview at the regional central bank's headquarters in Philadelphia. "We are all engaged ... It's a very active process."
Plosser said his "gut feeling" was that President Barack Obama and Congress will come to an agreement to increase the Treasury's borrowing authority in time to avert a default on government obligations.
And in addition to the warming up, the Fed is also engaging in the following:
The Fed effectively acts as the Treasury's bank -- it clears the government's checks to everyone from social security recipients to government workers.
"We are developing processes and procedures by which the Treasury communicates to us what we are going to do," Plosser said, adding that the task was manageable. "How the Fed is going to go about clearing government checks. Which ones are going to be good? Which ones are not going to be good?"
"There are a lot of people working on what we would do and how we would do it," he said.
Plosser added that there are difficult questions that the Fed itself had to grapple with.
The Fed lends to banks at the discount window against good collateral. But what happens if U.S. Treasuries no longer fit that bill?
"Do we treat them as if they didn't default, in which case we would be saying we are pretending it never happened? Or do we treat them as if they defaulted and don't lend against them?" Plosser said. "Those are more policy questions."s at the basement of Marriner Eccles getting refills and start the warm up process.
We urge the secretary of tax evasion to take a hint or two from his "Treasury Bank" brethren and start contemplating a Plan B since we now stand less than 48 hours away from D-Hour and there is still no consensus.
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Best way to get ahead? Get under a good man & work up.
The Fed has been executing for default for 70 years. It's about time they made a plan!
"
The Fed effectively acts as the Treasury's bank -- it clears the government's checks to everyone from social security recipients to government workers.
"We are developing processes and procedures by which the Treasury communicates to us what we are going to do," Plosser said, adding that the task was manageable. "How the Fed is going to go about clearing government checks. Which ones are going to be good? Which ones are not going to be good?"
May I modestly suggest that active NRA members be counted among those getting theirs?
Ha! Ha! The government isn't that smart!
Tuco
Keep an eye on the horizon for something lke this:
http://www.youtube.com/watch?v=2opkvpEqVX0
THATS a LOT of $100 bills.
So is this, The choppers are loaded!
http://www.chinook-helicopter.com/Unique_Loads/Tax_dollars_at_work_b_master.jpg
Heliports, bitchez!
I wanna see black choppers over my house! Yeah baby!
I live in a windy area. Will they account for the wind when they drop the cotton and linen fiat!!??
Tuco
No! They won't! It sucks to be you!
Psychological projection on your part my friend. Go kill a diseased fawn.
Tuco Benedicto Pacifico Juan Maria Ramirez
Wasn't the 4 bags of gold enough? Or was it 2 bags?
But....but...but....all is well...bitchez.
20 sec. video. All is well
http://www.youtube.com/watch?v=zDAmPIq29ro
Default Bitchez!!!
Haha, the FED will not accept treasuries as "good collateral"?
Like they have been discriminating so far?
I had half a notion of bringing one of those Nigerian Minerals Ministry letters to the FED as collateral.
pods
POMO pumped the HELL out of Treasuries, now they dont want em? This is the funnest time ever to live I swear!
I had half a notion of bringing one of those Nigerian Minerals Ministry letters to the FED as collateral.
LOL
Dont' knock those. I am apparently in a very good position to help the widow of a very wealthy man bring her wealth to the U.S. for a juicy commission. Not sure how she found me, but it's like I won the lottery! Just had to send over my bank account info and now I'm waiting on the wire transfer!
I always ask them to send me a sample first. I am still waiting for a sample. No biggie, I don't have room for a metric ton of gold in my closet anyway.
Tuco Benedicto Pacifico Juan Maria Ramirez
the political machine in the US needs to be a bit more creative - they are building the suspense for the typical Michael Bay Hollywood ending where the hero saves the day with only seconds to spare.
*yawn*
whatever.
First Major Country to DEFAULT WINS!
Think of the monster bets Govt's are making.
Picture Ben standing next to the printers. Picture Ben saying "say hello to my little friend". This is a one-trick pony show.
Presumably the Fed would see the futility of dropping $100 bills onto the public from helicopters as a way of 'stimulating' the economy and a recovery... they would see that they create immediate hyper-inflation on the streets and that printing money does not stimulate any business within it, just covers the country in even more devalued Benny Bucks
...so why drop them into the laps of the bankrupts on WS and in DC !!
...remind me again what QE1, 2 and 3 is all about again???
I think there was an article on ZH last year by someone trying to explain why dropping actual money from actual helicopters (or trucks or trains, wouldn't matter) would be a bad thing. Don't recall for sure, maybe someone can remember.
The basic thesis was that this would telegraph to foreign governments and corporations that the US was desperate, that the dollar was being driven into the ground, and to get out of dollars and treasuries. Didn't make much sense at the time; I don't see how Fed monetary policy isn't doing exactly the same thing. But we're 2 versions of QE since then, so maybe now the argument applies.
I don't know, but I think Benjamins floating down from the clouds for anyone to take would be massively stimulatory, for a long time.
for about 15 minutes.
its all about deferring their appointment with Dr. Guillotine for just a little longer.
...from today's news it appears QE! and QE2 helped support some hookers in NYC...
Maybe Tyler has a plan? After all, default is his wish.
Really which article did Tyler state 'I want default'.
Somewhere around the weekend. More than once. I have brought it up a lot more.
Way to be specific. There is a huge difference between preparing for the inevitable and wishing for it.
Maybe default IS his plan. That's my plan. Lets have a BIG CRASH.
I'm ready. What's your plan?
Why in blazes can we drop pallet loads on Iraq/Afg and nothing here.
Commandment One of the New judeo Century in Uhhmerikka - Thou shalt not allow ANY benefit to the citizens.
Believe it or not, before all is said and done that may happen.
Tuco
Only if the cattle promise to keep a lid on it, at least 'til Greece defaults.
Drama for the masses. They will raise the ceiling. The collapse won't come on a certain date. After years of delay, it will come without warning and sweep everything away in it's path. Everything, that is, except PMs.
.
Are you saying the lucky ones will have PMS?
It just so happens I have some of those.
I'm with you to a degree. The problem is this HERE little Gem:
"How the Fed is going to go about clearing government checks. Which ones are going to be good? Which ones are not going to be good?"
"There are a lot of people working on what we would do and how we would do it," he said.
Plosser added that there are difficult questions that the Fed itself had to grapple with.
----
Why would there be A LOT of people working on a scenario that isn't go to play out?
Who hired these people, who trained them? From whence do they come and to where
do they go? Are we talking about 50 people? or 5000 people? What criteria are
they using to determine which Federal issuance checks "would" be honored
in a default scenario versus which wouldn't? And so forth.
I'm just saying that in all my days of watching the conspiracy apparatus
we call a government, this one is a headscratcher.
And lately, shit has a habit of happening sooner rather than later.
How far can an AAPL fall when hedgies need to meet the margin call? Hope we get to find out.
IF, (a big 'if') the GOP allows this to happen, it will end their brand. The Pachyderm will roll over like a wrecked semi on its massive rotten carcass and simply die in the middle of the freeway. Mitch McConnell will look like Edgar Cayce. A lot of people think cooler heads will prevail, but the closer this thing gets down to the wire, the greater the ego-loss perceived by both sides, and in the end, if the destruction is only half as bad as the alarmists contend, the GOP will be smeared with the stink of utter compassionless elephant shit. It'll take decades for that smell to go away.
John Nance 'Cactus Jack' Garner is laughing in Hell.
where you urban cosmic libs will soon be joining him. Then you won't smell too good either. Meantime, Get your running shoes on; when da boyz EBTs no longer work, you're going to need 'em.
Treasury doesn't need a Plan B.
Plan B is an Executive Order.
I am thinking the Supreme Court might get involved, the executive does not have power of the purse.
When the SHTF, the Supreme Court can't do anything because they have no way to enforce their judgments. It wouldn't be the first time that the great O ignored laws he didn't like.
-
Marbury vs Madison, 5 U.S. 137 (1803)
The above has a layperson explanation, or, if you prefer, the pure opinion here:Of course, Obama would probably just pack the SCOTUS like FDR did.
Although under a different president, gun confiscation during/post katrina being a glaring example... doesn't help much if it's declared unconstitutional after the fact... although, it does lend credibility to anyone desiring to reasonably reject authorities attempting to perform the same acts...
"All laws repugnant to the Constitution are null and void."
Marbury v. Madison (speaking of the Supreme Court)
Oh yeah, let's get nine more overpaid lawyers involved!
Tuco Benedicto Pacifico Juan Maria Ramirez
tell him to order Loco a pineapple y jalapeno on thin crust............Love them Mayans
Plan B is an Executive Order.
That every household must fly the flag of the Soviet Union, and sing its national anthem every morning at 5 a.m., I reckon.
Timmay's plan; use Quickbooks for an accurate default timeline.
Yes, he got that software free with his "turbotax". Apparently, he didn't take the time to learn it though.
Tuco
Excellent point. Since the passage of the Gold Reserve Act in 1934 - and the creation of the E(xtremely) S(lushy) F(und) - the actions of the head of the US Treasury are not subject to review by an federal officer of the US government.
My question is "How the F**K could our congress give ANYONE that kind of power?"
Especially a supreme d*****bag like Harry Dexter White...Holy S***Balls, Batman!
Why, it was a war on poverty. They had to do something!
Are you kidding? Tea Party Republicans would LOVE to blame the increase in the debt ceiling on Obama. What you smokin' boy?
Rocky you are smarter than that. Yen...
Am not!
the Money Printer cannot restrain himself. It is print or die trying.
It isn't visions of sugar-plums but rather visions of dollars bills dropping out of his helicopter dancing around in his bald head.
Not only do you know a whole heck of a lot but you are pretty good at turning a phrase, too. That was nicely written BB.
Not to mention signing off on all those 600 dollar barrels of green and black ink... it's a beiotching agony of pain trying to build something larger than life itself.
Edit/ Forget the damn barrels, it's the 16,000 gallon railcars that got spotted next to the damn printing building.
goot times baby..........goot times..........turns those ink jet printers on as I default on the Fed
running up the credit cards in Texas buying Krugs y scurrying to Nicaragua with em sewn in my headdress............bwhahahahhahahhahha
Maybe we could do our parts to encourage the default by e-mailing our respective congresspeople and telling them there is a big party at the White House tonite with free coke and hookers (and they are invited).
What time does it start?
when did the last one end?
the fed's got this ultimate set of tools. they can fix it.
JUst give me 15 minutes ,k?
+1 for the Fast Times reference. - 1/2 because it was that asshat Sean Penn.
A bag of "ass holes" +1 buzz
Default is not immoral on a sovereign level. I am not responsible for my parents' debts.
You will be if you take on Probate as a executor of estate.
We did ours we carried 15K in debt against a estate worth 63K that managed to pay our debt off that year.
Never again.
We started preparing for a US default about 6 years ago...way to go Fed!
Money for nothing, your checks for free.... or something like that.
Dang. All these years I thought the lyric was "chicks for free"
Finally, it makes sense. I'm so embarrassed.
I always thought it was "chicks", too.
Uh oops.
Any comment on Louie Louie?
The FED isn't remotely planning for what might happen if there is a default or a currency disruption. They are looking at simple transactions but are overlooking global supply chain shortfalls on critical goods that would happen with any lack of confidence in trade/exchange. Yes, currency replacement and keeping things running is paramount but the resulting dominoes from any default (or similar event) would need concerted analysis/prep with military, corporations and FEMA type institutions. In my estimation (and I am efforting in this space) there is alot of 'small hiccup' type planning but few/none are looking at the whole systemic enchilada if there is currency disruption. Running out of time...
Note : I think the chances of a US default - technical or otherwise - in coming years is < 5%. But odds in next few years of currency dislocation with one the majors is around 40%. Once we get beyond 2015 or so those odds go down (as governments will be larger than hedge funds by that point - then we face different risks)
The Fed is not overlooking anything. There is not much the Fed can do in a worst case panic. The freeze up could be very swift. A long list can be made of bad scenarios. Instantly bad.
A little like russian roulette, maybe the final bullet is not the first, but if you keep pulling the trigger your odds go up to surety. There is nothing in the system to cope with all the possibilities. It is just not built for this event.
Koch and others need to speak to their servants.
is this the kind of SHTF we're talking about?
http://www.youtube.com/watch?v=0vPVTqWJd28&feature=related
Good video. The South should have been allowed to secede. Holding the Union together was not worth one drop of blood!
Tuco Benedicto Pacifico Juan Maria Ramirez
It's never too late to make amends; good riddance.
not gonna happen, if anything theyll announce the "great compromise" on 3 trillion in cuts on Sunday...get ready for the ES ramp next week. Then start preping for the impending doom coming in Sept/Oct
I'd hate for all that crisis planning and work they're doing at the Fed to go to waste. It would be a real shame to dissapoint them.
False flag attack in 3...2...1...
When playing Call of Duty the funniest thing is when an air-drop of ammo lands on your head.
Watch out for skid-pads full of hundred dollar notes falling from the sky.
Who are we kidding. The notes will be given to friends and family and we get the trickle down.
Okay, so the Govt defaults, the Fed starts airdropping Benjamins, and the POTUS with no birth certificate initiates telepromptor damage control to confirm that there is indeed free money falling from the sky, and its all okay. Whats the problem?
It's amazing how that shitty little fake PDF file was never questioned by
anyone in the media or government
i also find amazing the 'timing' of the OBL killing .... wasn't it like just 2 days after the release of the birth certificate ? how convenient !
Bin Laden was on ice since dying in 2001 of kidney failure and Marfan Disease. Another haox from the hoaxters in our intelligence (using the term very loosely) agencies.
Tuco Benedicto Pacifico Juan Maria Ramirez
Demons in a pod! Tuco
Yeah, that was Pretty Damn Funny.
http://www.youtube.com/watch?v=7s9StxsFllY
And what did you hear, my blue-eyed son ?
And what did you hear, my darling young one ?
I heard the sound of a thunder, it roared out a warnin'
I heard the roar of a wave that could drown the whole world
I heard one hundred drummers whose hands were a-blazin'
I heard ten thousand whisperin' and nobody listenin'
I heard one person starve, I heard many people laughin'
Heard the song of a poet who died in the gutter
Heard the sound of a clown who cried in the alley
And it's a hard, it's a hard, it's a hard, it's a hard
And it's a hard rain's a-gonna fall.
Good tune. But this one http://www.youtube.com/watch?v=wxh-FfElY0M is for all the proud, evil, no good, rotten cocksuckers in authority who steal the world and drink the blood of the poor. Sooner or later God's gonna cut you down! (or we will)
+1
default? lol....
Ever notice the dire news before the market is getting ready to blast off?
sheepdog = media/propaganda
sheep = ?
Careful on this one... this has gotten personal in Washington and when things are personal... they sometimes explode at the very last minute. You're not dealing with rational people... you're dealing with a narcissistic teleprompter and stooges.
Timmay needs a teleprompter so... like his boss the idiot Soetoro... he can read out loud what Plan B is...
Meanwhile, Project Gunrunner...
"Fast and Furious"
Tuco
does anyone really believe an extinction level event such as a default in the USA would occur randomly? Does anyone really believe that GS wasn't shorting the housing collapse in 2007/2008? Does anyone really believe that 700 billion was loaned to the TBTF banks so they could provide us credit?
When and if the default occurs, it'll be a well rehearsed and choreographed event....kinda like 9-11. No one would dare waste an opportunity like a US default to chance.
Careful, there are some voters around here, and you know how sensitive they are to ideas.
huh? people still vote? what the hell for?
Everytime you participate in the "system" whether it be banking, voting, disbursement (social security, welfare) you accept the (invisible) contracts with the largest rogue corporation in the world...
Algo proxy voting based on geopolitical area in 3...2...1...
Wouldn't want to risk political dissention at the booth in person.
100% correct! Bravo!
Tuco Benedicto Pacifico Juan Maria Ramirez
Thank you for stating this. I quite agree. The theater of Republicans versus Democrats debating this and acting like they have a will of their own is a media charade. Big decisions are made by people with real power.
My theory is that "TPTB" have decided that now will be the default, and we are seeing the last gasps of a welfare-warfare empire pretending that it's benign politics as usual, before the mask of democracy comes off, and the face of brute power reveals itself beneath.
Question:
I've seen 7/22 referenced many times on this site as the real drop dead date for a solution to the debt ceiling issue.
Is this true?
Does anybody know why that is?
AFAIK, it's the date by which an agreement would have to be reached in principle so that enough time would remain for it to be put into "proper" legal language and then formally adopted via both branches of government.
7+22+2+0+1+1 = 33
Be afraid, be very fucking afraid.....
"33". Rolling Rock is nothing to fear.
http://www.flickr.com/photos/45521998@N00/4564738122/
6+23+2+0+1+1=33
5+24+2+0+1+1=33
4+25+2+0+1+1=33
Ad nauseum...
What was it you were trying to communicate again?
Actually, I believe he is referring to the date 7/22/2011. I simply couldn't resist the beer reference. Stay thirsty my friends.
That 33 is a pretty rockin' number that gets around.. Oh, sorry. That really isn't what he was trying to communicate.
I know. That number scares the shit out of me, too!! Fuck me!!! 2 threes together. Run...RUN!!!
He's referring to the 33 degrees of Freemasonry. Since they're obsessed with symbolism, they try to work in their occult numbers to increase the magical potency of their actions and to communicate with other elite occultists. Satanists also use numbers to enhance the power of black magic.
Look at 33 Liberty St (address of the Fed), 33rd parallel for the Kennedy assassination and the first nuke test, etc, etc. 3, 9, 11, and 13 are other numbers with occult signifigance for them. Seeing Masonic numbers doesn't necessarily mean something big is coming, but when something big is coming, they always use their numbers along with other occult symbolism. For more on how Masonic/Satanic symbolism runs through various staged events, look here:
http://www.theforbiddenknowledge.com/hardtruth/13_33_freemason_sig.htm
http://www.theforbiddenknowledge.com/hardtruth/number_eleven.htm
http://www.theforbiddenknowledge.com/hardtruth/destruction_of_the_trade_centers.htm
Hm.
Thanks for the explanation on the symbolism behind the number 33.
I used to be a non-believer in all those "conspiracy type theories" regarding the influence freemasonry had and has in the government apparatus, until I was awakened.
I don't know what to think. Conspiracy on one hand, math on the other backed by history and the very things that made up the Nation by Founders who were close or are Masons.
I can start by thinking what can happen on July 22 2011 and proceed to august 3 and so on. The scenarios have not all been sufficiently considered yet.
The sheep sure don't worry about it though. Have you truly awakened? Or are you dreaming?
I have begun each day, lately (a relatively recent trend), honestly believing none of us know what is about to hit, that it's planned to some degree, and that those calling the shots are inherently evil.
This wasn't always the case.
Reality is a cold bitch slap.
Repost from a couple months ago, about symbolic communication and the Feast of Moloch. Which reminds me, the silver connection ties into the Kennedy assassination nicely. #1281838:
The Illuminati don't just hate silver because it is the money of the people. They hate it for occult reasons, mainly its healing ability, its protection against the Evil Eye, and its ability to kill vampires (in certain traditions). Makes sense that the takedown would be on May 1 (the birthday of the Illuminati). They communicate with their god, Lucifer, by using occult symbolism in public. Has to be in public so that it goes out into the collective consciousness, to manipulate people without them knowing. Also, according to certain traditions, the Devil cannot enter your house unless you invite him in. Their public symbolism is like fine print which lets him in, to parasitise us. We have given Lucifer everything he has, usually willingly.
BTW- Waco, the OKC bombing, Columbine, and Deepwater Horizon all happened on the Feast of Moloch, which involves children sacrificed by fire.
Moloch = one crazy-ass owl
Bohemian Grove's mascot is a giant owl who presides over the "Cremation of Care" and various other rituals. The elites are gathered in the Grove right now:
http://www.prisonplanet.com/alex-jones-on-bohemian-grove-2011-agenda.html
From Alan Ginsberg's "Howl":
Thanks for all the links and info, NWC.
Have you truly awakened? Or are you dreaming?
Think I'm in one of those dreams where I keep thinking I've woken up, but really it's just another level of the dream.
FWIW, the Masons were the good guys for most of their history. Seems their corruption was via Illuminati elites who came later than the Founding Fathers. I could be wrong about this, though, so do pitch in.
Fellow mathematicians (and non fellow numerologists) might also enjoy the fact that 7/22 is "pi approximation day" bc 22/7 is an approximation of pi
+355/113
very nice...best equation ever imo... Euler's identity you got your pi, you got your e you got your i, you got your 0, you got your 1, wtf else do you want?
A proof of the Riemann hypothesis. Thanks in advance.
wow...Fields Medal anyone?
Reuters...Fed...contingency planning...U.S. default. - HOLY SHIT!! "We are at Defcon 1, Weimar just launched an attack against our Ponzi scheme."
"Fiatski, anybody home Fiatski?" "What about the Libyans Doc?" "We're giving it all the ink we got Captain, she just won't print no more."
The theatre is great, just knowing it's at yours and my expense makes it that much more of a fuckall space opera.
The corporation UNITED STATES OF AMERICA, which you are very much a subject of "breaks wind in your general direction".
Ponzi schemes are penny ante compared to the shennanigans pulled off in the last 150 years.
You were born a subject and a slave in the USA. Might as well enjoy the shyster theatre, it's here to stay.
Don't bitch to me about fairness, there's no honor among thieves.
I wouldn't call it thievery. What they're doing is more like milking us.
Dreams of success and riches = the carrot.
There's a degree of complicity in this: we kinda liked their hands on our udders, I guess.
were you under 18 when you were given your SSN?
what are you insinuating? I was born in New York.
I'm just going to be premptive here: fuck you.
And fuck you again, just to be sure.
Double tapped.
Man...Sometimes I just have to stop and wonder in amazement of my own awesomeness.
your haste to proclaim superiority may very well prove to be your eventual downfall, bub. no worries though, you're going to have plenty of fellow native-born shoulders to cry on who will share your pain.
wasn't insinuating anything bub. it was a direct question. just didn't want to ass-u-me. what the question implied, if anything, was that if you were under 18 when you received your SSN, that maybe just maybe, you might have a valid argument that you were coerced into participating below the legal age of consent.
but i guess you're too wrapped up in your ignorant childish prejudices thinking that i might be "insinuating" that you may just be one of those dirty immigrants, as if you're oh so superior just because it was your ancestors that chose to be those dirty immigrants.
que sera sera.
(btw, thanks for fucking me twice. always found that 2nd time is mo' better than the 1st. much more tantric...)
I was 15 when I received my working papers and SSN (also in NY).
My kids were basically born with theirs.
What's the under 18 argument again?
see 4.2
http://www.famguardian.org/TaxFreedom/FormsInstr.htm
h/t c.w.
http://www.zerohedge.com/article/end-empire-waking-zombie-nations-psycho...
"an immediate paradrop of millions of $100 bricks to every man woman and child in the US"
If by "every man, woman and child" you mean "Wall Street bankers" and other such assholes, then yes.
there will never be a 'planned' default by the usa...no f'ing way. we will raise the limit...we will raise taxes...and we will print money til the one black swan stops us. the default will be forced on the usa and the idea that our fearless leaders could even plan a default is asinine...!
when we imply that they are smart enough to plan something we are giving them credit for be intelligent......what a joke
Your first mistake is assuming our "fearless leaders" control the purse strings.
you gotta give them credit, at least they aren't starting to prepare after the collapse!
Bluff.
The FED should SHORT via GS, the ENTIRE COUNTRY, and then let this f***ker default. We will have enough $$$ to pay off the ENTIRE debt, send everyone to college, pay for everyones healthcare, and food, and cars for everyone.
Seriously, think about it, leveraged 10,000,000,000,000:1 - SHORT EVERYTHING (except gold) and then let the US default, crush the banks, let everything fall where it does. . . . then cover using some insane algo that keeps the price from going up.
Ritchezz, Bitchezz!!
are you gonna take the other side of the trade?