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From yesterday's Domestic Monetary Policy Subcommittee hearing, with
Fed Board of Governors general counsel Scott Alvarez and New York Fed
counsel Thomas Baxter:
See this for background.
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Also in the hearing: Revisiting the fact that the Fed holds gold certificates instead of real gold, with no real claim on the Treasuries gold. But here's the question I don't hear being asked:
Why was the Fed given the gold certificates that apparently can be (and have been) "repriced" to a new higher price of gold? Did they do that for the little guy whose gold they stole from his safety deposit box? No. He got fiat paper.
WTF?
Wasn't it last year that one of the Fed's board qipped, "We could always re-price the gold certificates?" Wouldn't it be great if you and I could just take our dollar savings and "re-price" our purchasing power to what it was in 1934?!!
End the Fed, but start the prosecutions!
stupid.. he says 'these are not gifts, they are loans that have to be paid back with interest'... duh, the cheap loan is a fucking gift, asshole... let me borrow at the same rate, it would be a wonderful gift..
the federal reserve was created for one purpose and one purpose only - the realization of amschel rothscild's goal of controlling the currency so that the could care not who made its laws....
the banksters want to conquor and subjugate the american people through the income tax and federal reserve.....it's sole purpose is to transfer wealth to the plutocrats....nothing more, nothing less....
fuckyou asshole rockefeller...
+++. Short, sweet and to the point.
If we all know that there are psychopaths in society, why should it surprise us that the best and brightest psychopaths are in control? I mean, shit, they earned it right?
To those whose panties are all in a wad over this: what actions can you/are you going to undertake to change this? (Pro Tip: bitching on Zero Hedge doesn't count.)
Me, I'm thinking it's time to get back in the market...Then again, I'm just another lunatic anarchist attracted to this site....I hear this Linkedin IPO might be interesting :-)
Fire the birnank @ Fed
Fire the timiner @ Treasury
Hire the Paulster @ Fed
Hire the lizardbeth @ Treasury
Make gold & silver coin of the Realm
Give very close shaves, not haircuts
Pay 5% interest
Charge 6% interest
Reinstate the Constitution
Viva la Marquette
Honor your Mother
Try to play fair
stay dry
'US committing financial suicide'
http://www.presstv.ir/detail/182850.html
.
.."Press TV: Please explain the difference between deficit versus debt, and is correct to say that, by accounting definition, the US is bankrupt since all they are doing is paying interest without having any money to spend?
Keiser: Yes, what we are witnessing is the US effectively committing financial suicide. You'd have to compare [it with] maybe a death cult like Jim Jones in Guyana who convinced the entire population of the cult to drink the cyanide-laced kool-aid and to kill themselves. This is a proposition that both the Republicans and Democrats have on offer. They simply want to continue invading countries, blow through trillions of dollars that they don't have, while simultaneously gutting all the manufacturing capacity in the country and destroying the food supplies with chemicals and genetically modified [GMO] products, guaranteeing that most of the Americans today will come down with cancer in the next 5 to five years from GMO foods, cell phones and anything else that America excels at.
Press TV: Do you think President Barack Obama, , Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner know what they are doing? All they are doing is paying the interest while there is no money left. How they are going to be able to sustain this mode?
Keiser: The objectives of these policies quite clearly is to enact a transfer of wealth so by keeping the country perpetually in a state of war and perpetually in a state of fear these can slip in these policies that are highly favorable to the entrenched oligarchy and kleptocrats that are in charge of the country and then making fabulous amounts of money. They are becoming richer than ever before. Not even during the period of Robber Barons in the US that have we seen such wealth disparity between the top one percent and what is becoming the bottom 99 percent.
The objective is to completely eviscerate the middle class, to steal that wealth from the middle class and Obama is enabling this wealth transfer. This is his [Obama's] legacy and this is really remarkable for a man like Obama to end up in the White House and being the foot soldier in the largest transfer of wealth in the history of the US, creating a permanent underclass with no jobs, living on foot stamps and really people on the verge of rioting in the streets. This is the Obama legacy."
...
..
+1000
instructive video of some basic mechanics and
method involved in the banker's global occupation,
the fed being the central bank of central banks
all coordinating the basic fraud of offering fiat
currency for real assets. as the debts and fiat money
creation go exponential the assets fall into their
hands. margin calls are the triggers of the detonators.
the debts are the explosives people wrap themselves
in to eat and sleep.
the bankers are wrapped in the same deadly explosive
but they (some) have the long fuse and access to the wiring diagrams
and the wire cutters and the triggers and detonators.
the people's work and care is the
food the future owners/occupiers will live on. a grim
picture that should have no relevance or resemblance
to the state of the world and man in the 21st century,
but......
and the bankers know it! they created the thing.
.
http://investmentwatchblog.com/according-to-the-2rd-qtr-occ-derivative-r...
.
In review, the figures for the commercial banking operations of Goldman Sachs are:
1. $119 Billion in Assets (making them #15 in terms of assets on the list of the top 25 holders [commercial banks] of derivatives)
2. $40.477 TRILLION….yes….over $40 TRILLION in derivatives (#2 out of the top 25)
3. Goldman has an Assets/Derivatives Ratio of 0.3% (7.6 times lower than the next lowest, which is JP Morgan at 2.3% and over 1,200 times lower than TD National Bank, which has just a slightly lower asset base [$104 Billion])
It can’t be much longer before the system, or at least Goldman, blows up again.
- Vics
.
http://www.blogger.com/comment.g?blogID=912107698547747613&postID=541347...
.
"Concentration, Manipulation and Margin Calls"
.London Banker
..
.."Eligible margin is defined by bilateral agreement for both prime brokerage and OTC derivatives. According to the ISDA Margin Survey for 2009, the eligible collateral at the time of the crash was predominantly US dollar cash, euro cash and US Treasury securities.
Bilateral agreements are not made public, and neither are the margin calls. This is why the $2 trillion dollar margin call did not make the news. Each prime brokerge client and each OTC counterparty dealt with their margin call as a bilateral obligation, despite it being systemically the most important event in the history of financial markets.
As the markets crashed, the US Congress was threatened with chaos and martial law if it did not pass the Paulson Plan to grant $700 billion to Wall Street banks without any formal process or review. The Federal Reserve in parallel innovated a series of secret, extra-legal measures to give money to the same banks in exchange for assets which would never be disclosed, publicly valued or audited. The need to raise dollar liquidity globally to meet margin calls in US dollar led to the innovation of central bank dollar swaps - to preferred central banks only, of course.
After all the global liquidity had been sucked into the hands of these few global banks, and the dollar surged to strength along with US Treasuries, the game of increasing leverage started all over. The firms sitting on all the margin cash and global liquidity bought up all the quality assets lying about the crashed global markets at deep discount, then they started lending again. They have been reporting huge profits consistently ever since as their clients and counterparties take the assets and exposures in this "recovery" on terms very profitable to those running the markets and liquidity business.
And remember, these few firms see all your positions and know all your clearing balances better than you can. And they chair all the margin committees at all your clearinghouses and exchanges too. And they even own the warehouses where you believe your gold, silver and other hedges against financial chaos are supposed to be stored.
We are now nearing the same global levels of leverage as prevailed in summer 2008. The political situations in the US and in Europe are unstable, and China is slowing. There is money to be made in instability.
It isn't the leverage that causes a crisis, but the margin call.
In the past few months we have seen a pattern of increased margin calls in exchange traded derivatives. It makes me wonder what is happening unseen in the OTC markets. The dollar is strengthening from its lows, indicating flows back to US counterparties. Perhaps another round in the game of liquidity manipulation has begun.
Leaving that aside, how would Adam Smith recommend that we protect ourselves from the well-entrenched tyranny of a global elite of manipulators? The only resilient solution is local, transparent markets with disintermediation of the controlling banks. Eliminating the information asymetries which allow them to see everyone's positions, leverage and trading activity - and trade and ration liquidity accordingly - would go a long way to preventing further concentration.
How to do this? Would the co-opted regulators allow markets that disintermediated reliable paymasters? Those are the questions we will grapple with after the next crash I suppose."
A very incitefull comment.
The FED is the defacto central bank for the world. By this definition it is the last line of defense preventing world wide financial collapse.
If collapse comes it will come to due to the failure of the worldwide debt based monetary system. In order to rebuild, bands of people or whatever governments survive, will have to totally renounce anything that was previously a part of the debt based monetary system.
Think of it as a financial version of the "big bang theory." We will find ourselves at the equivalent of early idustrial age, but with many more mouths to feed on this planet.
good
Hang the banking bitchezzzzzzzzzzzzzzz.
Traceable loans. I am quite certain we still have no idea how much we gave to US banks.
So who do you respect more: An attorney who defends the Catholic priest who mollested 100 chiorboys or these 2?
The Jews majorly distort this issue in the eyes of the public. For instance the documentary "Deliver Us From Evil", totally produced and brought to public by hateful Jews.
I fully respect their right to free speech, I just wish the Gentiles would get to be more serious about these pressing issues of this day and age.
Give the religous BS a rest. The question was about an attorney who defends a sicko or a sicko.
oddly.....they seem to control all the media - go figger
Waaaaaaaaaaaahhhhhhhhhh
Please don't confuse people of the Jewish faith with the Z-word. People of all faiths deserve respect.
Maybe you would be happier with a super-Christian in the White House?
http://www.jpost.com/International/Article.aspx?id=223444
this should be easy to explain to mounting hoards of recently bankrupt and homeless Americans.
Hope & Change.
Today I got spam on how - a company will file Social Security Disability for me to collect. I am not old or sick either. maybe I should apply to loot the dead corpse of Obama's Amerika before the printing press breaks.
Thank the Dem fukks here on ZH who voted for the islamist for destroying the Republic like that pirate POS Dem in Florida.
In their defense, it's not as though McCain was any great shakes either. He was one of the Keating 5, for god's sake. And try and discern any principles in the mass of his statements and votes. McCain is about . . McCain. Whichever way the wind blows between his ears at that particular moment.
McCain is a senile sleazebag retard. Obozo is a slimy lowlife asswipe. Choose your poison
FYI: Ron Paul is having a 'Legalize Gold & Silver' MoneyBomb this Sunday, June 5th. Thanks!
http://www.ronpaul2012.com
What's with all the junks?
Fed reading ZH again?
Ha! I was noticing the same thing. Imagine the poor pathetic fool who would sit there scrolling down an entire thread just to jolly junk. funny, but sad.
I think the 'Next' subtitle at the bottom of the screen is quite appropriate
"Nuclear Waste Storage hearing"....lol
Does Ron Paul really prepare for these things or just sort of waffle off the top of his head? He's been given a stage here yet just seems to pitch up easy balls to the people he's supposed to be grilling? The answers they sent back to him made him look like he was asking dumb questions. He needs to get some focus and sharpen up his style.
That money was used to buy back the bad debt US banks sold to other countries banks and central banks. If it wasn't done, they would have went to the World courts and the whole charade would have been found out. That was the reason why Lybia of all places got a bailout, to buy back the bad stuff and to keep them from going to court and outing the whole Western banking ponzi scheme.
Jeez Ron, come ONNNNN.
You gotta get some presentational training; this homely waffle just isn't tight enough or clear enough.
You seem to change your mind every single comma about what the question at the end of it is going to be.
If any of your witnesses have any guile whatsoever, they can just bat the ball straight back to you til you run out of time.
There's a lot of folk hoping you gain get some momentum going.
I suggest you sit and watch your performance dispassionately, and get your act together.
This might be important.
Like the guy above says -if you can motivate enough people to register to vote in your primaries- you could build momentum.
However correct your interpretation and analysis of the sad state of affairs, you just don't hit the ball cleanly.
Has nobody told you.
Sorry, but.
I get the feeling he really wants to ask the hard questions and get to the bottom of things, but he also wants to stay alive. piss off the wrong people and you could be JFKd
This has been Ron Paul's m.o. ever snce he was elected. Send up whiffle balls, and never ask a follow-up question. He's a distraction, a pet Rottweiler on a leash meant to be the "hope and change" of conservatives and libertarians whilst the banksters continue making off with the loot.
Ron Paul is a sham. He couldn't find his ass with two hands, a flashlight, a gps, and a neon sign.
Ron Paul is putting the "hope 'n' change" back into the "2012 electioneering" spectacle, which pretty much covers his role in the system he's participated in for decades.
sadly, you are right
in a sane congress: the FED is ripe swollen pimple ready for congress to bust it..
who gets the blame in the public's eye for our depression our glorious congress or the FED..
hope congress sees this out for them>>>blame the FED and end it..
I hear the treasury is dusting off the plates for treasury notes and running the presses..
good by FRN.
oops then I woke up and we got the same asses serving the banksters until the nation rebels.
I'm just searching for the missing $8, not the $4,950. That part is clear. The Fed book value on the gold is $42 per ounce. The Treasury price of a buffalo gold one ounce coin is $50. Once it passes through the LCH.Clearnet could it be that it makes its way through the non-Frank-Dodd CLS Bank and being leveraged by the new HKMex to be eventually leveraged at a ratio of 100 to 1? If so, it's well on its way to the $5,000 targeted SDR value and the standard 1% franctional reserve ratio.
http://tradewithdave.com/?p=6291
http://tradewithdave.com/?p=6704
Dave Harrison
www.tradewithdave.com
You need to separate Clearing & Custody functions in the transaction flow, and also keep track of the legal domicile of entities (Leverage is created through Custody not Clearing) .
Dodd-Frank didn't touch Euroclear/Clearstream/Six Sis or LCH Clearnet
/EMCG/Six for a very good reason - attempted unilateral cross border legislation is always retaliated against. In this US case the response would have been against DTC, CME, ICE, NACHA, etc.
The result being that the basically unelected MEP's in the European Parliament could dictate regulations for the Community Bank of Podunk in the US, that migh inlcude the financing a Greek bailout to an evengreater extent then the US's IMF obligations, and the FED's Credit Facility access for international banks.
methinks you're onto something with this dave...keep diggin.
Sadly, Ron Paul never got to the real issue, namely, "What kind of dollar denominated collateral are we talking about here and how was it valued by the Fed?"
If the foreign banks could park (or transfer) their sub prime dollar mortgage assets (CMOs) to their U.S. branch or subsidiary and then get fed loans based on mortgage investments valued at par (marked to myth) rather than marked to market, then that would amount to a bailout of the foreign parent since the branch or subsidiary could wire the borrowed Fed dollars overseas to that Foreign parent bank.
The question is whether that is what was taking place.
And of course it was, because there would have been little incentive to borrow on collateral marked to market.
How can our Congress be so stupid?
++++
monster post, well done sir
Because it pays so well?
BTW, good luck with "your" congress. For the life of me though, I can't imagine why anyone would claim them.
Very nice. According to scenario the fin. Pyramide should disappear. Who knows when?
Don't forget that the Federal Reserve Corporation stock is held exclusively by the member financial institutions. Not a single share is held by the federal government. So, the Fed is just doing what its owners need it to do.
And you can bet they've got a claim (or a hundred) on any gold held by the UST.
Dang! That is jaw dropping, and confirms the belief that the Fed is not competent to run a business let alone the nation's banking system. Just an accounting fiction? gezzeus, we are so far beyond the merely criminal dishonest manipulative elitist bs.
The Fed is very competent. You're just confused about what their real mission is.
How long can this go on for?
Where is the huge public outrage?
People are having their lives crushed - they know that it's happening. The banksters caused this and the people are suffering because all their money went (and will go) to keep the elite financiers rich and make them even richer. All the stats show the richest are getting richer by huge amounts each year while everyone else struggles to survive with no hope of improvement in sight. People know this is happening.
How does this happen and keep happening over and over and yet society just accepts it? They accept being destroyed by a rich elite who not only brought this situation about, but now benefit massively from the results.
Are our societies like overheated pressure cookers - nothing happening now but could blow any minute, or are our societies full of fucking stupid sheep who will hapily allow themselves, their families and their entire futures get crushed by rich criminals?
There must be an answer as to why this is allowed to continue like it is. I don't get it.
Because "society" is an abstraction, existing only in our minds (in other words, it is not an entity capable of the action which you are looking for). Meanwhile, individuals are incapable of mounting meaningful resistence against the criminality as it is wrapped in the idea of legitimate social functionality.
See, the system isn't so much allowed to continue to destroy society, it's designed that way. All in order to ensure the domestic tranquilty of the brain-washed masses that we've been taught not to trust. Of course, this doesn't create a mature population, but an immature one, that has no capacity to survive without the protection of the governing class.
In short, government creates its own demand.
RE: notapplicable
I don't understand why you were junked. You have uttered a most profound statement of why our society functions the way it does.
The majority have been conditioned to trust the system. To not trust, raises the implication that one needs to take action to change the system. Taking action is not within the capacity of most to understand, much less implement.
On many levels,- economic, demographic, energy, etc., we are on a very slow pace to collapse. (Boiling frog with low IQ and awareness,) describes it nicely.
One question: Think of your neighbors and coworkers; Are they the majority of people that will bring about change?
And government , like our debt based economy , has to keep expanding otherwise it collapses in on itself.
We have had peak credit , peak oil , peak house prices and probably peak stock markets , im just hoping we are nearing peak government.
+++
Hope seems like a dirty word post-Barack, but here's to hoping the same.
Well said.
Man vs. the State.
Every soul, a battlefield.