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A Vote of 'No Confidence'
A Vote of 'No Confidence'
Here's a terrific post by Jesse discussing the financial markets' reaction to Downgrade U.S.A. - Ilene
Courtesy of Jesse's Cafe Americain
"And remember, where you have a concentration of power in a few hands, all too frequently men with the mentality of gangsters get control."
Lord Acton
Investors do not need a ratings agency to tell them what to think about the US sovereign debt status. The Treasury market is broad and deep, and the facts about the US financial situation are reasonably available, although sometimes hard to retrieve through the fog of rhetoric and deception.
Specialist agencies like S&P are needed to rate more obscure financial instruments and entities without a wide following or deep and liquid markets. And the US ratings agencies have shown themselves perfectly willing to produce 'ratings on demand for pay' over the last ten years for their large financial customers. And nothing appears to have changed.
So today we saw Treasuries rally sharply even on the longer end of the curve where the downgrade occurred. How about that! But it was perfectly understandable.
Why? Because the message was not about the quality of the Treasuries, which the market already knows much better than the bureaucratic paper pushers at S&P. Rather, the implications were about the outlook for the US economy, and not the Wall Street carny game. And that outlook for the real economy is becoming increasingly dire.
The reasons for this should be obvious by now, and it is not because of the long term debt situation. Here is a review of some of the changes in the past twelve years that have taken the US from surplus to disaster.
We saw a remarkable flight to the safety of gold, but much less in the more industrially popular silver, and a serious sell off in the commodities. That was the clear sign that this market action was a comment on the economy, with its slack demand and stagnant wages, the dire condition of the average American family, and the dysfunctional nature of the economy.
And for the first time in a while, there was a feeling that the US government has lost its bearings and its ability to respond effectively even in the face of a common cause and emergency, and it was expressed dramatically.
Obama came on television to speak. And after he said his piece, the losses in the equity markets doubled. Why is this?
Because the President may be many good things, and have many good qualities, but he is most surely not a leader, and does not possess an overweening moral principle or vision which he can communicate and achieve. What does he stand for, and who or what does he really support? The best way to be thrown under the bus is to be one of his supporters and constituents.
He is the very profile of a modern corporate manager, heavily laced with the moral timidity of a professional bureaucrat. He could not carry Franklin Roosevelt's leg braces. I would not hold him to this higher standard if he had not chosen to pursue the leadership of the Presidency in times of crisis. But he did. And he sold out faster than a hooker when the fleet comes in.
The President's response to this latest crisis is familiar, to have the Congress choose yet another bipartisan commission, similar to the ones that have failed to reach any practical consensus so far, and delegate the problem to them, hoping for the best.
And what makes this situation even worse is that as bad as this President may be, his opposition are largely created from the same mold, the same lobbyist infested cesspool, and are unprincipled servants to power, beholden to creeps, crooks, and sociopaths who pay them and reward them with power, to the detriment of the American republic.
There are wide expectations that the Fed will 'do something' tomorrow. I doubt they will do anything, but they may say something. This is what Wall Street wants. If they do not get it, and the markets begin to move downward with some momentum, look for yet another hastily tossed together crisis response to come out later in the week. Hostage-taking pays in this environment.
The downgrade was a vote of no confidence in the leadership of the US, across the board: Democrats and Republicans, the Banks and Wall Street, the Regulators and the Fed, and their partners in the corporations, the mainstream media, the economists, and big business.
In a parliamentary government, the leadership of the US would have fallen this week. This is what the market is saying.
The pity will be if the Fed does announce QE3, and the market rallies, and it is quickly forgotten, business as usual. For then it is just a reckoning delayed.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery.
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Escapeclaws: Thanks for the link, I watched the Argentina documentary and it is a must see film as a preview of what is planned for Americans and the rest of the world via the bankster global fascist.
The bankster fascist strategy repeat of Argentina is playing out in Europe today. America shelters and protects the international bankster terrorist. When it comes to fighting, Americans are armed and they know who the corrupt traitors in government are and they know who the elitist are that are hiding behind the American flag. I would not feel very secure in that .01% group of traitors.
The rating agencies are corrupted. The point was to blame lack of new taxes.
They cannot implement new taxes without crashing the tax base unless they accelerate monetization, in which case real tax receipts will fall regardless. In essence, S&P called peak government, which back-fired or was successful depending upon point of view.
As the population continues to disappear…
"In essence, S&P called peak government..."
Yup.
And it was a resounding success ;-)
Just watch CHINOOK down video, it seens RPG hit the side of chi and caused internal armo explo downward, the rest is in CNN. A sad day for us, if OBM did as he promised, we will not see this tragedy today. He also promised 'we will double our exports in 5 years'. Don't forget.
Oh, I almost forgot! It is just an opinion, right S+P, Moody's, and Fitch. I've got 1st amendment lawyers in my pocket too! I say beside whores your jack ass jerks! Have a great day................
The rating agencies are "whores". They rated Bear Slime and LeeeMMan Bros. top notch investment grade just before they went under. The fuckers also rated the CDO's as top investment grade. Go fuck yourself S+P, Moody's and Fitch..
the stock market , futures market , and other casinos are still totally manipulated and front run by the controlling interests who control the market through their manipulation of the timing of major moves. the big fish know where the market is going just like the little fish do, only the big fish have the power to manipulate how and when it gets there.
it is becoming all too obvious that s&p , owned by mcgraw hill, is part of some scheme or other to make money on wall street through their behavior of 'downgrading' the debt. everyone understands that inflating your way out of debt will not trigger cds, so the downgrade is just a comment on the fed lying about inflation expectations, which are in reality extremely high because of the impossibility of escaping debt deflation. the market is in forced bifurcation mode, crash and default or print and die a death of a thousand cuts. the death of a thousand cuts is what the 'downgrade' is predicting and it is going to make money for someone important ONLY because of the legal status of the importance of the AAA rating for certain classes of investors, that and the ancillary investor panic cascade ( of which there is little legitimate market volume left) . furthermore the downgrade came precisely at the week if not day that italy was having a crisis selling treasuries. the timing was perfect for creating panic. the entire ratings 'industry' is a scheme and should be shut down by the philosopher kings who don't rule our government. there should be NO ratings that are legally recognized. period. downgrade upgrade, same grade, demograde, republigrade, makes no difference, the markets have officially been (2008) and will remain a sham until ALL the primary dealers are broken up and the fed is reorganized under chapter end the fed of title 15 of the u.s. code, coming to a government near you in the next two decades i hope.
the timing of this 'crisis' is manufactured and is not a real crisis in it of itself. there already has been a crisis ongoing for the last 4 years and it will continue going. it is a political crisis of the banks, classists, and debtocrats versus the no-interest free liberty loving human beings. the money is just a side show now. keep moving folks, nothing to see here.
take a look at gold ( which cannot as easily be controlled by the powers that be ) which is exploding, and take a look at silver ( which is fully manipulated ) which is dropping. this is proof that the markets are still more or less controlled. anything too big to be controlled ---gold, supposedly the treasury market, the military, real international trade rates as estimated through the manipulated baltic dry index, and last and most important the rioting masses -----will reflect where the real controlling interests of the market are placing their tentacles and designing their conflicts, repression,assasinations and false flags.
and if you ask me, the next real 'move' for the 'market' is to bet on when the next set of major riots spreads from london to paris and finally to new york.
p.s. bonzai and cd hope you guys are well.
but are they manipulating this market correctly? sometimes it goes down and i ask "what happened?" i dial up the bat phone...i get nothing. WHAT DO WE PAY YOU PEOPLE FOR?
London burning? I thought that was a parade.
Meanwhile London is burning---not by aerial bombing, but by the young generation while banksters are playing their fiddles.
Theyre angry their drug dealer got killed in that shooting on sat night. Good riddance, now if only the cops brought out the water cannon..
oh, there you are -- it's hard for canadians to hide, eh?
so, again, the german and british spread seemed important, and since i'm working my wittle heart out to get a handle on this stuff, the least i could expect from that cold canuk heart of yours is maybe a dozen or so words strung together...should only take you a half an hour or so.
Just fucking amazing...
The bastards didn't bother with Mozillo and now they're bagging all the investigations.
http://online.wsj.com/article/SB10001424053111903885604576488603431078830.html
BY JEAN EAGLESHAMFederal criminal investigations of IndyMac Bancorp and New Century Financial Corp. have stalled and could result in no charges being filed, said people familiar with the situation.
Separately, the U.S. Attorney's office in Seattle announced Friday it had closed its investigation of Washington Mutual Inc., another failed mortgage lender, with no criminal charges being brought.
The three separate investigations, among the first to weigh criminal charges against the companies and their executives at the heart of the housing crisis, each hit major stumbling blocks. The WaMu probe had been inactive for more than a year, according to people familiar with ...
I enjoy Jesse's work. Well done.
Ok a nice post Ilene, without the typical progressive rant you have become famous for.
wanna know what happens to those who stand opposed to the steamroller of progress?
tell em, ilene!
Those 'steam rollers of progress' will bankrupt the country and all that 'progress' will get rolled back overnight. A more balanced approach is needed, with the integration of some of the concepts from the left and right. However, it is obvious that the Tea Party is the only party that has the correct view for the short term, get spending under control, balance the budget, etc.
Check some things out, all of the 'progressive' municipalities/states are the ones that with the greatest insolvency risk, spend the most money that they do not have, California, New Jersey, Illinois, etc.
I have no party affiliation, both parties are the same, that is why we see the rise of third parties, hopefully a trend that will continue. Sapping the strength of the two primary parties is essential as they have both failed miserably.
you're talking to a new, new progressive, my man.
i've seen first hand the destruction of welfare -- the black man was just starting to feel his oats, and then boom! great (great meaning large or immense, i use it in the pejorative sense (line stolen from the simsons)) society.
yes, resources will be required, but they won't be entitlements.
all who can must work. but there is such a thing as "can't", it's almost as pervasive as "won't"
or as paul said, if a man will not work he shall not eat...but he wasn't shy with charity (Love) was he?
right now we need ideas; and we need to focus on the present generation, not the 'sins' of the past
PS. give me men who are sleek headed and sleep o nights/
this david h koch has a lean and hungry look about him/
such men are dangerous,
janus
Yes, we certainly don't want to inflame the teabaggers.
I respect the Tea Party, they seem to be the only 'party' that realizes that changes need to be made, that the debt is out of control, and that corruption runs rampant in DC. Its amazing in a BAD way that in America 'land of the free' that anyone's point of view would be called extremist/terrorist, especially when its the truth. I guess its not all that suprising actually when everyone seems to be enjoying the fraud. Argentina is a great example of where we are headed.
everyone is missing the point!!!!The only reason anyone in the world buys treasuries is liquidity!!!
Oh please! What drivel. We don't want to read about this financial stuff.
Who was thrown off the Island?
Is the OctaMom really teaching all 16 of her children to swimm?
Who will be the next Bachelor? Bachelorette?
When will CNN play Balloon Boy re-runs...I mean all 16 hours, not the abridged version?
Important things are important!
Parliament? No confidence? Everyone is sheep even the people who think they think really don’t think because they are brainwashed not to think: even you Ilene.
Most of the readers of Zero Hedge are nickel squeezers and their thought process is simply greed: “hurray for me, I have got mine and screw everyone else.” Americans are as brainwashed as the German people were before WW two!
The events in the last ten years have all been orchestrated by the bankster fascist criminals who are in charge of Obama, Congress, MSM and the rating agencies. They are all fascist traitors and the only cure is revolution to bring them to Justice.
What do the fascist have planned for the American people next? Scorched earth and WW three! Millions of Americans are going to die!
<<< They are all fascist traitors and the only cure is revolution to bring them to Justice. >>>
When can we expect you to lead the pitchfork charge?
There are millions of Americans who have sworn an oath to our Constitution and our country you snickering, whiney sack of nothing.
What you nickel squeezers fail to recognize is the philosophy behind this great debacle: One must understand your enemy, fascism is their game and Adolf Hitler is there idol.
I collect quotes because quotes summarize a person’s existence on Earth in a few statements.
Here are a few quotes from the great fascist that I am sure you can relate to.
Humanitarianism is the expression of stupidity and cowardice.
Those who want to live, let them fight, and those who do not want to fight in this world of eternal struggle do not deserve to live.
"The receptivity of the masses is very limited, their intelligence is small, but their power of forgetting is enormous. In consequence of these facts, all effective propaganda must be limited to a very few points and must harp on these in slogans until the last member of the public understands what you want him to understand by your slogan."
What good fortune for governments that the people do not think."
Great liars are also great magicians.
Hate is more lasting than dislike.
All propaganda has to be popular and has to accommodate itself to the comprehension of the least intelligent of those whom it seeks to reach.
Demoralize the enemy from within by surprise, terror, sabotage, assassination. This is the war of the future.
Any alliance whose purpose is not the intention to wage war is senseless and useless.
All great movements are popular movements. They are the volcanic eruptions of human passions and emotions, stirred into activity by the ruthless Goddess of Distress or by the torch of the spoken word cast into the midst of the people.
Mankind has grown strong in eternal struggles and it will only perish through eternal peace.
Struggle is the father of all things. It is not by the principles of humanity that man lives or is able to preserve himself above the animal world, but solely by means of the most brutal struggle
Strength lies not in defense but in attack
Demoralize the enemy from within by surprise, terror, sabotage, assassination. This is the war of the future.
The great masses of the people will more easily fall victims to a big lie than to a small one.
The great strength of the totalitarian state is that it forces those who fear it to imitate it.
The victor will never be asked if he told the truth.
Through clever and constant application of propaganda, people can be made to see paradise as hell, and also the other way round, to consider the most wretched sort of life as paradise.
The broad masses of a population are more amenable to the appeal of rhetoric than to any other force. Strength lies not in defense but in attack Make the lie big, make it simple, keep saying it, and eventually they will believe it.
If you tell a big enough lie and tell it frequently enough, it will be believed
The art of leadership... consists in consolidating the attention of the people against a single adversary and taking care that nothing will split up that attention.
The victor will never be asked if he told the truth.
As soon as by one's own propaganda even a glimpse of right on the other side is admitted, the cause for doubting one's own right is laid
The day of individual happiness has passed
"The most foolish mistake we could possibly make would be to allow the subject races to possess arms. History shows that all conquerors who have allowed their subject races to carry arms have prepared their own downfall by so doing. Indeed, I would go so far as to say that the supply of arms to the underdogs is a sine qua non for the overthrow of any sovereignty. So let's not have any native militia or native police. German troops alone will bear the sole responsibility for the maintenance of law and order throughout the occupied Russian territories, and a system of military strong-points must be evolved to cover the entire occupied country." --Adolf Hitler, dinner talk on April 11, 1942, quoted in Hitler's Table Talk 1941-44: His Private Conversations, Second Edition (1973), Pg. 425-426.
The very first essential for success is a perpetually constant and regular employment of violence.
I use emotion for the many and reserve reason for the few.
Success is the sole earthly judge of right and wrong.
Sooner will a camel pass through a needle's eye than a great man be "discovered" by an election?
Is always more difficult to fight against faith than against knowledge
I do not see why man should not be just as cruel as nature. Today I stand here as a revolutionary, it is as a revolutionary against the Revolution.
I believe today that my conduct is in accordance with the will of the Almighty Creator.
Universal education is the most corroding and disintegrating poison that liberalism has ever invented for its own destruction.
He alone, who owns the youth, gains the future.
Do these murderous sociopathic statements sound familiar? They should, Hitler is Obama’s, Bush’s, Bankster’s and the new world order’s Idol and their motivation for the future. Sad but true. Now do you understand how anyone could be so mean!
A good list..
The only modern propoganda you need is:
self envy and distractions =uninformed ignorance working 10 an hour jobs/having kids.. new underclass.
When I watched Charlie Rose the other day, "74% of all 17-24 year olds are Dis-Qualified to join the armed services due to Obesity, No HS Diploma, Drugs, Jail."
No investment in the future generation...thats the new Nazi Class-Warefare tactics...
Never Stop learning,
Alex
Thanks for the list, windcatcher.
It is time to revisit Howard K Smith's thoughts on how to elect congress etc. He proposed this in the early to mid 60s as the anchor for ABC news. Among other things were congress elected by random draw and serves for one term and then pensioned for life. As they say potluck on the draw cannot be any worse than what we have now and certainly would be a lot better by not having people make a career of running for office.
jesse,
remember the good ole days, when fdr walked over to the supreme court, hiked their skirt, and sort of went to town...that was awesome. and my favorite part was when he was re-elected over and over for it.
take note you kings of the earth, you princes of men
lest napoleon comes a ridin in
sincerely,
janus
However we do need the rating agencies to crash the markets.
The whole point is to cut back or eliminate social security and medicare...
My fellow Americans, I'd like to introduce you to our new guest. America, this is Structural Adjustment--he's been busy creating miracles in third world countries for the last couple of decades, and now he has graciously offered to help us in our moment of distress. Please give him a hearty welcome!
Thank you Escapeclaws, I am humbled by your warm welcome, which only encourages me to equal or exceed the results I was able to obtain in other countries. I am most proud of what I was able to accomplish in Argentina and would like to give you a preview of what I hope to accomplish here.
Be assured, Structural Adjustment, that the American Congress and the President himself are very enthusiastic about your plans for America. As an aside, President Obama told me that, when he was a candidate for the high office he now holds, he took Carlos Menem as his model! And now--saving the best for last--the film:
http://topdocumentaryfilms.com/argentinas-economic-collapse/
[Escapeclaws note--this film was posted by someone else yesterday but I forgot who. In any case, it is riveting and well worth watching.]
He has a valid point about a Parliament. Our two-party winner-take-all system is more easily corrupted by monied interests. You could even say that the people are less represented by our system than a true Parliament.
Aussie Stock Traders must be on Drugs - We had a rally. What is with that?
One news commentator said it was due to speculation of QEIII.
Yeah, but did you notice WHAT types of stocks rallied? Some of the gold miners up 9%.
But they don't want regulation, they don't want reinstatement of Glass Steagall, so they get a 700 down day on the Dow and 7 trillion loss instead.Their choice. Why is that Barack Obama anything? it isn't.
No one on Main St gives a crap. The count is how many of the private bank cartel are eliminated, starting with the Rothschilds, Warburgs, Rockefellers, Kissinger, and yes Rupert Murdoch? Them and their spawn eliminated. Then the Federal Reserve emissaries, Greenspan and Bernanke. Then the banks in New York City. The correct measure is how many bankers are destitute and on food stamps? Get rid of them.
Look at who is behind S&P - McGraw Hill
http://sherriequestioningall.blogspot.com/2011/08/was-s-downgrade-of-us-...
sweet-sweet Ilene,
Thank you for that; i really owe you now.
http://www.youtube.com/watch?v=AACUsw3ACps
fondest wishes.
your pal,
janus
bella-Ilene,
how'd you like dem apples?
do you know how to tie a full windsor? it matters.
janus
Nice Jesse! I really like reading your website too.
The downgrade justification that I've been waiting to hear from S&P, or anyone really, is that the lower rating was justified by actual risk of default. This explaination would point out that money printing is default! It's the most back-door, insidious, cowardly, kind of default.
I have to be nicer, less direct. Quit swearing. Well done, Jesse. This- not so much. http://thecivillibertarian.blogspot.com/2011/08/thankfully-its-time-for-...