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The Future Of Fiscal And Monetary Policy Through The Lens Of Goldman Sachs

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Thu, 07/14/2011 - 23:35 | 1458398 zorba THE GREEK
zorba THE GREEK's picture

 Obama doesn't want debt ceiling agreement. He wants to grab more power

 by waiting until last minute and declaring emergency and raise ceiling by

 executive order. Seniors and military personnel will receive checks on

 time and see Obama as hero. Obama gets re-elected. End of story.

Fri, 07/15/2011 - 00:31 | 1458454 IEVI
IEVI's picture

I think you might be right..this could all be about consolidation of power. The POTUS no longer bothers getting congressional approval to go to war, so why should he bother getting congressional approval to raise the debt ceiling.

Fri, 07/15/2011 - 02:35 | 1458556 Michael
Michael's picture

I love how we knocked out the third leg of the global government stool by laying to waste their Carbon Tax scam.

Goldman hates that and I know they squirm about it.

Too bad the Aussies didn't get the message down under.

Gillard confronted about lies by voter (ABC News)


Hard Times Hit Carbon-Trading Markets

"Once seen as a potential bonanza by governments, investment bankers, and alternative energy proponents, carbon dioxide credits have become close to worthless in trading exchanges and are now being shunned by investors."


Give this lady an Order of Australia medal


Thu, 07/14/2011 - 23:38 | 1458404 km4
km4's picture

who cares about the lens of Goldman Sachs

Kucinich nails it !
Debt Political Theater Diverts Attention While Americans’ Wealth is Stolen

his best nuggets
1) Mark my words — Wall Street cashes in whether we have a default or not….

2) These are symptoms of a government which has lost its way, and they are a challenge to the legitimacy of the two-party system.

Ron Paul Exclusive: Who’s Regulating Washington?

money quote from Ron Paul….
“We have drifted because we had so much prosperity, but we can’t drift forever. We can’t live on borrowed money and printed money forever ”

America’s AAA Rating Not Worth Saving Because “We Are Insolvent”

David Stockman said last Oct : “I think the Fed is injecting high grade monetary heroin into the financial system of the world, and one of these days it is going to kill the patient”

IMO QE3 or QE4 will do it!

Thu, 07/14/2011 - 23:41 | 1458406 caconhma
caconhma's picture

Regardless of what Obama does, the USA is bankrupt and its economy will collapse. It is only a question of time.

Thu, 07/14/2011 - 23:46 | 1458409 vegas
vegas's picture

All of these clowns are pieces of shit. The sole goal is to be on both sides of the ponzi. Obsfucate to the point of being able to position oneself for and against it at the same time, all the while scamming the totally stupid American public. How these asshats aren't run "out of town" continues to be a mystery to me.

Fri, 07/15/2011 - 00:26 | 1458443 TruthInSunshine
TruthInSunshine's picture
by vegas
on Thu, 07/14/2011 - 23:46

All of these clowns are pieces of shit. The sole goal is to be on both sides of the ponzi. Obsfucate to the point of being able to position oneself for and against it at the same time, all the while scamming the totally stupid American public. How these asshats aren't run "out of town" continues to be a mystery to me.


It has something to do with generous welfare state benefits flowing, keeping the illusion (though now seriously fleeting - really) of Horatio Algier and the 'American Dream for All' alive, and information and entertainment, and then dividing the sheeple with marginally important but deeply socially divisive issues.

The only thing that can change the dynamics, reverse the tables, and turn the docile sheeple into enraged bears is deep, painful hunger, homelessness and the gleam in their childrens' eyes turn into sorrow.




Fri, 07/15/2011 - 00:41 | 1458467 oldman
oldman's picture

Hey Truth,

You're a voter---what do you think of a Paul/Kucinich tag team?

I might consider voting if they ran together as independents

I MIGHT consider voting because my impression is that they are as honest as anyone in the country with the CAPACITY to administrate this mess


Fri, 07/15/2011 - 01:30 | 1458513 TruthInSunshine
TruthInSunshine's picture

I meant to write Horatio Alger above - not 'Algier' - no disrespect, Mr. Alger.

Oldman, I like Paul and I like Kucinich.

I don't agree with everything either one of them states or does, and Kucinich in particular runs contrary to my limited government (and especially federal government) preference.

But I like them both because they at least appear to be honest, and speak honestly, which is an exceedingly rare and precious quality amongst our legislators.

So I'm with you on that honesty issue, but I can't see larger government solving what ails us (larger government, in fact, is now walking hand in hand with the vampires and parasites, i.e. the JP Morgans, Goldman Sachs', Central Private Bank, et al., that is killing us).

Fri, 07/15/2011 - 02:55 | 1458560 oldman
oldman's picture


wow!! a record

Fri, 07/15/2011 - 02:54 | 1458561 oldman
oldman's picture

Thanks Truth,

Maybe they would respect their promises to the electorate at least before they were assassinated. I mean, I don't really see anyone else on the horizon for me to back. I also think that between the two of them there might be some agreement or compromise on how to govern as represntatives and admintrators of the public weal which would be a new way to have a 'democracy'.

You know I have no faith in doing a thing, but I could consider voting for this pair.

Thanks for your response            om

Fri, 07/15/2011 - 02:52 | 1458562 oldman
oldman's picture


Fri, 07/15/2011 - 02:53 | 1458568 oldman
oldman's picture


Fri, 07/15/2011 - 07:25 | 1458732 MassDecep
MassDecep's picture

So, your assuming your vote really counts.....


They put into power whom they wish. Sure, they throw you some pennies now and then, but all major positions of power are already decided either by the preverbal "wolf in sheeps clothing", or manipulating vote counts through the few IT companies that handle the counts.  

Not a conspiracy, it is the truth. Do the research and get over it.

Fri, 07/15/2011 - 01:51 | 1458530 ReactionToClose...
ReactionToClosedMinds's picture

I lived in Cleveland when Dennis the Menace was 'wunderkid' Mayor.   It became obvious in 2-3 years that he was in way over his head (eerily similar to Yes We Can Team Amerika 44) .  The classic was his attempt to take 'direct' control over what was a city power plant ..... Kucinich is a true crackpot and a fake ... but he loves the media attention.


Do not tar a principled person like Ron Paul with a loser such as Kucinich

Fri, 07/15/2011 - 03:09 | 1458578 oldman
oldman's picture

Hi Reaction,

I'm sorry to read your post about Kucinich.

I remember him---from when---'78 or '80 against who---Cleveland Light and Electric?

That was what impressed me with him was that he actually DID something about abused citizens

Anyway, I was in an underwriting for whatever utility it was and abandoned it because I greed with his side of the story----told my customers that I gave my shares up for that reason and only lost one customer---new guy at the time, ho-hum----

Thank you for the post because if this opportunity should come along---i'd ask Mr. K. to explain his side----nice to know there are two or more sides to a story

I have heard each of these men speak highly of the other although not in complete agreement on many issues----that's where I originally thought they might balance each other to where we might get honest government

Fri, 07/15/2011 - 07:18 | 1458726 fallst
fallst's picture

Sorry, I'm from the Land of Cleve, and was there, You Republican.

CEI, tried a powergrab, and tried to privatise the City owned power plant, Municipal Light ("Muny Light").

The 30 year old Kuncinich saved Muny Light.

Oh, and a "bank" was involved in the powergrab..."Cleveland Trust"

Fri, 07/15/2011 - 10:37 | 1459266 ReactionToClose...
ReactionToClosedMinds's picture

Call me what you want (I feel terrible .... you .... you .... called me a "Republican" ... how can I live myself?) .... but somethings are clear ... Kucinich is a crackpot.

If you want to 'believe' he 'saved' Cleveland fron grasping evil bankers like Cleveland Trust et al., be my guest ... go delude yourself Kucinch was on the most visible , at-first-glance, 'appealing' side of the argument demagoguing the 'cozy biz interests etc. But when you dug into it ,,, it was an amateur, meglamaniac move ... and I was a screaming lefty radical college student writing Nixon letters in red ink about Cambodia back in those days ... a natural Kucinich supporter.

There is no question when you study his mayoral terms... it was an all out disaster for Cleveland.

If he was so 'good' & 'principled' then why did Cleveland handily elect an 'evil' Republican to replace him as Mayor? Cleveland is the most union, labor liberal city in Ohio.So go tar me if it makes you feel superior ...Kucinich was a crackpot who loves the media attention ...... somethings have no other interpretation or conclusion. And the seriosuness of Paul is diminished whenone associates Kucinich with him.

Sorry Tyler ...you do tremendous work ... unlike anything or anyone else. But if this is a place where Kucinich gets touted for national office ... not by the unaware .. that is understandable .... none of us knows exactly everything ... but by people who have some exposure first hand ... well .. I guess I am the idiot here and should just move along ...

Keep up the good work though

Fri, 07/15/2011 - 00:12 | 1458425 Oh regional Indian
Oh regional Indian's picture

I say the debt ceiling will be breached. They need that degree of political drama to make some of the big moves that are in the works.

This upcoming window (15th July-15th Aug) will be long remembered.
Confused? You betcha. That is as per plan!


Fri, 07/15/2011 - 01:03 | 1458490 Global Hunter
Global Hunter's picture

  I'm not sure I understand your posts but I like them!  The debt ceiling will be breached/childbirth breech, was that deliberate?  

Fri, 07/15/2011 - 02:16 | 1458546 Oh regional Indian
Oh regional Indian's picture

Thanks Global Hunter.
And breech-stuck, breach-breakthrough.... hmmmmm


Fri, 07/15/2011 - 03:36 | 1458590 Global Hunter
Global Hunter's picture

took the birth metaphor too far perhaps...if so it doesn't matter because I enjoyed contemplating it.

Fri, 07/15/2011 - 00:20 | 1458430 slewie the pi-rat
slewie the pi-rat's picture

i couldn't even understand what this meant, at the end. 

some bankster bullshit about how the legislative process works for them? 


Fri, 07/15/2011 - 00:42 | 1458469 Helena Bonham-Carter
Helena Bonham-Carter's picture

Of Satan, and of Limbo, and of Furies

Fri, 07/15/2011 - 00:57 | 1458485 slewie the pi-rat
slewie the pi-rat's picture

works for me, H_B-C. 
this is our money and our fuking goobermint and the only way to understand it is mythologically. 

that's reassuring!  sweet dreams...

Fri, 07/15/2011 - 01:13 | 1458500 cosmictrainwreck
cosmictrainwreck's picture

I ponder whether or not I'd want to meet that girl; she's so deeeep...

Fri, 07/15/2011 - 01:23 | 1458508 knukles
knukles's picture

Oh, I thought her side of the pool said "no diving".

Fri, 07/15/2011 - 01:56 | 1458534 slewie the pi-rat
slewie the pi-rat's picture

well, we won't push the beds together for a threesome, then.

night-night to you, too, co_tr_eck. 


Fri, 07/15/2011 - 00:36 | 1458460 Juice Box
Juice Box's picture

Really nice elaborate analysis but USA Today said the same thing in five sentences. 

Fri, 07/15/2011 - 00:46 | 1458473 Global Hunter
Global Hunter's picture

This is a condescendingly bad piece.  Is the target audience school kids? Does Fisher Price, I mean Goldman Sachs think their clients have the intellects of children? 

If their best clients are reading this crap and take it serious that would explain a lot.

Fri, 07/15/2011 - 01:41 | 1458516 TruthInSunshine
TruthInSunshine's picture

You think this is bad?

You should see the analysis they gave to those valued clients of theirs who they strongly urged to buy into Abacus, Timberwolf, Hudson, etc.

Fri, 07/15/2011 - 00:56 | 1458483 Fast Twitch
Fast Twitch's picture

Always the cliche " exit strategy " why can't uncle scam

Fri, 07/15/2011 - 01:27 | 1458511 knukles
knukles's picture

"Why can't Uncle Sam get along?"

And with that tidbit, I'm off to conquer my own vivid dreamland.

Fri, 07/15/2011 - 02:05 | 1458510 caerus
caerus's picture

Galileo was forced to recant his belief that the sun was the center of our solar system in 1615...he was forced to recant a truth that we all now take for granted...we are all now living in a world of false economic science...as absurd as arguing as aristotle did that stones fall to the earth because they feel that they must...for every Aristotle there is a newton and for every Keynes ther is a Von mises...we are all trying to reach the moon with Aristotle as our pilot...it does not work

Fri, 07/15/2011 - 01:39 | 1458520 jack stephan
jack stephan's picture

[next act] "Get yourselves a pine box, boys. Nobody follows The Killer!" 

Fri, 07/15/2011 - 01:56 | 1458535 ebworthen
ebworthen's picture


Plan C already in the hopper.

QE3 or 4 or call it taffy and cotton candy, it will happen.

They are trapped in their endgame, and as responsible Amerikans liquidate their IRA's and 401K's they will be 'forced' to employ more QE.

Don't forget rate hikes and draconian taxes and fees.

Notice that your bank is reaming you with no %, fees out the ass (yours) and crappy delayed service?

Yeah, like that.


Fri, 07/15/2011 - 02:56 | 1458569 I Am The Unknow...
I Am The Unknown Comic's picture

ZH community, I am jumping this relevant thread from a previous thread of earlier today.  I feel I need to provide Hansel with updated info, and I'm not sure he will get this post, but I want to try.  Regardless, it is good info for us all.

Hansel wrote on this thread:  http://www.zerohedge.com/article/ben-believes-golds-only-value-due-tradition#comment-1458544

"The Fed doesn't own gold.  They own gold certificates worth $11 billion.  This is according to a Treasury guy at Ron Paul's last domestic monetary policy hearing."

(I replied that I thought it was 42B not 11B)

Hansel replied: "No, it is $11 billion. See the Fed balance sheet,


The certificates were locked in at $42 an ounce when gold redemption was suspended.  They will never be worth more than the $42 an ounce equivalent."


This is verified on my end.  Just had dinner with a San Fran Fed (he really is a nice guy that thinks he is doing great things for the country…..an old friend that is totally brainwashed, but a good man nonetheless).  So, I stand corrected.  Thank you Hansel.  It is indeed gold certs valued at $42/oz and not a total of $42B. 

If I understand correctly, the cert enables The Fed to retrieve from The Treasury, gold at $42/oz.  The Fed long ago exchanged their physical gold with The Treasury in exchange for a certificate.  The price was set at $42/oz.  The Fed has the right to redeem each certificate with the US Treasury for 1 oz of gold at $42/oz.  Should the Treasury not have the gold when the Fed comes calling, well then the US taxpayers would just have to cough up the fiat and buy it at whatever price (such as $1,600 per oz).  The Fed would then take the 1 oz of gold, pay the Treasury $42, and the Treasury would get their piece of paper/gold certificate back.  Now the Fed has 1 oz of gold they paid $42 for and is worth around $1,600.  So, it is actually in the Fed's best interest on these certs to have the physical gold price high.  Seems like everything is going according to their plan, and I believe this really does give insight into their thinking.  At the end of this program the Fed has the gold and can make around a $1,550 profit on each ounce should the Fed central bank choose to sell at today's prices.        

The important point, however, is that I fully expect that there comes a point in time soon when The Fed (or GS or JPM) will create a derivative product on these certs (leverage it up, bitchez!) and this will be the new "Gold Bond: medicated powder for the economic patient on life support."  It would enable The Fed to suck mucho dollars (M2) out of the economy in exchange for a gold cert derivative, thus combating hyperinflation.  The higher the gold price, the more dollars they can pull out of supply. 

I readily admit that this is a bit over my head.  So, while junking, please explain to me why it would not make sense.  I had some great wine tonight and hope I have clearly presented my thoughts.    

Anyway, it's just a hypothesis of mine....having had exposure to these Keynesian PhD Economists and their way of thinking.  Some of these brainwashed fools actually believe they are holding the country and the entire world together. 

Of course, my Fed buddy says the certs are assets and will remain hidden in some Fed vault somewhere forever.  Even he does not know where they are kept.  Amazing.  He thinks I'm nuts.  The feeling is mutual.  He taunted me with "where are you going to buy your gold from now that Glenn Beck is off the air?"  Without skipping a beat I replied "well obviously not from you becase the Fed DOESN'T HAVE ANY!!!  You could have heard a pin drop!   

There is none so blind as those who want not to see.  I might be wrong on my thoughts above, but at least I am trying to understand.    



Fri, 07/15/2011 - 07:06 | 1458718 tarsubil
tarsubil's picture

Well that's just f'ing wonderful. This might be totally off the wall or kinda like what you said but could they get gold at 42 and sell it cheap like a strategic oil reserve release?

Fri, 07/15/2011 - 09:14 | 1459013 I Am The Unknow...
I Am The Unknown Comic's picture

That's what I was thinking they might do...another stunt like the oil release only wth gold cert derivatives, or possibly physical gold. 

Fri, 07/15/2011 - 10:49 | 1459297 indio007
indio007's picture

10. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts

Millions of dollars Wednesday Federal Reserve notes and collateral Jul 13, 2011 Federal Reserve notes outstanding 1,145,902 Less: Notes held by F.R. Banks not subject to collateralization 157,617 Federal Reserve notes to be collateralized 988,285 Collateral held against Federal Reserve notes 988,285 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged (1,2) 972,048 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities (1,2) 2,654,337 Less: Face value of securities under reverse repurchase agreements 59,910 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 2,594,428 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury, agency debt, and mortgage-backed securities held outright, compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase agreements. 2. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.Looks like the FED wil be foreclosing in a neighborhood near you soon when you consider MBS's are the probably the largest asset class the FED is using as collateral.

Fri, 07/15/2011 - 07:53 | 1458805 tradewithdave
tradewithdave's picture

You left off a question...

Q:  What Broadway show do you feel most closely reflects the traditional values of the central banking model of carrying gold on the balance sheet as the exclusive precious metal? 

A:  There's no question... Fiddler On The Hoof. 



Dave Harrison


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