Treasury Confirms That The Definitive Treasury-AIG-Fed Shell Game Will Proceed As Planned

Tyler Durden's picture

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Cognitive Dissonance's picture

A circle jerk of the highest order. All hail the mighty Ponzi.

Mr Lennon Hendrix's picture

They call it "ponzi" now on Thursday nights at the Tomb?  Tomatoe tomato.

A_MacLaren's picture

The circle jerk will continue until private interests achieve climatic release.

traderjoe's picture

"Treasury gives taxpayer money to AIG -> AIG buys back rescue equity from Fed"

Nobody has yet mentioned the question of the Treasury (US taxpayer) essentially bailing out the Fed (the private banks) from their investment. So, not just one hand paying the other - another solid data point that the Fed works for its banker owners, and that the Treasury is the taxpayer whipping boy. 

OT: everyone should see the website. A decent website that professionally raises good questions on 9/11. I have found it to be a good website to send people that are starting to open their eyes to the truths...

Cognitive Dissonance's picture

Please don't show it to Internet Tough Guy. His blood pressure is already too high after dealing with me. Give the poor guy a break. 

traderjoe's picture

Sadly, I missed that conversation/exchange. 

I have to say, all one really needs to do is watch a video of WTC 7 collapsing to understand that some faction(s) of the US government had some involvement in 9/11. You really don't have to go any further (if you don't want to). Once it's determined the government was somehow involved - everything changes. 

Cognitive Dissonance's picture

Once it's determined the government was somehow involved - everything changes. 

Thus many people will do everything in their power to avoid coming to that conclusion. If one doesn't wish to change their worldview, it's so much easier to ignore this than it is to do the hard work of changing everything. Nothing is self evident or obvious to those who don't wish it to be so.

This is why paid disinformation agents are widely used. People who wish to continue to believe the lie are not that hard to convince to continue to believe the lie. They just need a reason, some plausible deniability, in order to do so.

Island_Dweller's picture

If one doesn't wish to change their worldview, it's so much easier to ignore this than it is to do the hard work of changing everything.


This goes a long way in explaining religion!

RockyRacoon's picture

Riddle me something:

After the restructuring, Treasury will own 92.1 percent of AIG...

Doesn't that mean that the whole shebang is now on the books of the U. S. Gov't via the Treasury ownership?  Don't they try to stop at 89.9999% to avoid that?

Cognitive Dissonance's picture

Rules, laws, regulations; they all mean nothing any longer. They really don't. Fannie and Freddie should be "on the books" but they aren't.

They just make this shit up as they go.

Hondo's picture

What would you expect from a corrupt government that has been captured by fiancial system that is itself corrupted.

Mr Lennon Hendrix's picture

When I use cash it looks to me like monopoly monie.  We are playing games, and they are children's games.

SheepDog-One's picture

So does Barofsky have any actual POWERS to step in as SIGTARP, or just a figurehead placed there?

Rainman's picture

He does his business in the windowless basement of the UST building. He keeps screaming but everyone pretends he's not down there.

Eduardo's picture

phewww the important thing is that Goldman Sachs got their money back. Man ! tragedy was averted ! 

plocequ1's picture

Out fuckingstanding.

lizzy36's picture

Tiny Tim proving that his only value added skill set is in hiding the salami.

Mr Lennon Hendrix's picture

Wow, he is hiding an ass ton of salami!

Bigger Dickus's picture

The circle jerk now involves monkeys, elephants and Michelle Obama on all fours.

knukles's picture

Hey, cover of "Wookie Wear Daily"!

Mr Lennon Hendrix's picture

Bonzai, slap Geithner's face on that monkey!

JimboJammer's picture

This  will  all  end  badly .....  Glenn  Beck  ...  Help...!

OutLookingIn's picture


 Yes Sir! Step right up! Everyboby is a winner! Keep your eye on the pea...

Milestones's picture

The Carnival still in town!! Must have been extended for the biiiiiiiiiig shoeeew Wednesday All Gawd's chillen have dancin shoes.   Milestones


MeTarzanUjane's picture

Behold the beloved Rally Monkey.

Sudden Debt's picture

Nice to see who's the boss in America...

tahoebumsmith's picture

HERE...just turn the telescope around and take a look through the other end... What you see is FASCISM...Plain and simple.

NotApplicable's picture

Hey now!

Halloween was yesterday.

Crab Cake's picture

The rule of law is no more. Now we're back to nature's rules. Stay low, do what you have to, don't get taken prisoner, and if it comes to a fight shoot to kill. God help us all, and may we have the strength to rebirth the Republic.

Traianus Augustus's picture

As Karl Denninger likes to rant "Where are the f#(king cops"!!!!!  Oh no, wait that's my favorite saying too. 

Cruel Aid's picture

Funny, Country of Laws... hilarious! Lots of people are saying that, for years now. LOL

RockyRacoon's picture

That is KD's only fault.  He actually thinks that somebody can/should actually take action and enforce the laws on the books.   That drags down most of his arguments.  He sees things the way they should be, not the way they are.  That's why he's so off-base on PMs.

Miss Expectations's picture

I really like Karl.  He is, however, my black swan.  When he starts buying gold, it's all over.  I am watching for this.

knukles's picture

Mission Accomplished!

LostWages's picture

Here's the shell game they should play!


NotApplicable's picture

After the restructuring, Treasury will own 92.1 percent of AIG, which equates to approximately 1.66 billion shares of common stock in the company. Based on the market closing price of AIG on October 29, 2010, these shares are worth approximately $69.5 billion.

I just wanted to highlight and reiterate the absurdity of a market price for a government owned entity. With the presses running full, is there any price level that Ben & Timmy's Inc. cannot achieve?

Goldfinger's picture

Ponzi... The only asset we have is the coins... Gold has been sold to the fed. How can the fed buy all this stuff? With what? An increase to the liability called "federal Reserve notes"... How long before we stop believing in this BS.. Cash in your pocket is 10x more real than your equivalent deposit, and unlimited reserve account, when you run out of real reserves? WTF.


Suppose a bank customer cashed a $100 check to obtain currency needed for a weekend holiday. Bank deposits decline $100 because the customer pays for the currency with a check on his or her transaction deposit; and the bank's currency (vault cash reserves) is also reduced $100.


See illustration 15


Now the bank has less currency. It may replenish its vault cash by ordering currency from its Federal Reserve Bank - making payment by authorizing a charge to its reserve account. On the Reserve Bank's books, the charge against the bank's reserve account is offset by an increase in the liability item "Federal Reserve notes."


See illustration 16

. The reserve Bank shipment to the bank might consist, at least in part, of U.S. coins rather than Federal Reserve notes. All coins, as well as a small amount of paper currency still outstanding but no longer issued, are obligations of the Treasury. To the extent that shipments of cash to banks are in the form of coin, the offsetting entry on the Reserve Bank's books is a decline in its asset item "coin."

Goldfinger's picture

The US has no gold. They appear to have given it away  to the fed for $38.. It appears US can have it back,,, if it wanted to to sell it.

 Gold stock and gold certificates.

Changes inthe U.S. monetary gold stock used to be an important factor affecting bank reserves. However, the gold stock and gold certificates, have not changed significantly since the early 1970s. Prior to August 1971, the Treasury bought and sold gold for a fixed price in terms of U.S. dollars, mainly at the initiative of foreign central banks and governments. Gold purchases by the Treasury were added to U.S. monetary gold stock, and paid for fromit's its account at the Federal Reserve. As the sellers deposited the treasury's checks the banks, reserves increased. To replenish its balance at the Fed, the Treasury issued gold certificates to the Federal Reserve and received a credit to it's deposit balance.  Treasury sales of gold have the opposite effect. Treasury's account and reserves decline. Because the official U.S. gold stock is now fully "monetized", the Treasury currently has to use its deposits to retire gold certificates certificates issued to the Federal Reserve whenever gold is sold.  


However, the value of gold certificates retired, as well as the net contraction in bank reserves, is based on the official gold price. Proceeds from a gold sale at the market price to meet demands of domestic buyers likely would be greater.


The difference represents the Treasury's profit which, when spent, restores deposits and bank reserves by a like amount. While the Treasury no longer purchases gold and sales of gold have been limited, increases in the official price of gold have added to the value of the gold stock. (The official gold price was last raised from $38.00 to $42.22 per troy ounce, in 1973.)

Captain Willard's picture

Remind me what AIG is worth now that its best assets have been stripped out?

Everybodys All American's picture

Could the crooks be more clear America? Geithner and Bernanke are corrupt.

orangedrinkandchips's picture

I love U...U love Me....Were a happy family! hahahh


This shit the govt pulls cant even fool Barney! for christ's sake!

buzzsaw99's picture

The frauderal reserve.

Village Idiot's picture

I spanked the monkey earlier this morning, so I'm doing my part. - right up there with ZH.