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Time For Bernanke To Retract His Sworn Testimony To Congress

Tyler Durden's picture




 

Three months ago, as part of our ongoing explanation of what happens next to the Fed's balance sheet (which is now established as official canon in advance of the December 12th FOMC, when Bernanke will effectively announce QE4 consisting of $40 billion in MBS and $45 billion in unsterilized TSY purchases as we predicted the day QE3 was announced), we said that "the Fed will continue increasing its 10 Yr equivalents by roughly 12% (of the total market) per year, for at least the next 3 years, at which point it will own 60% of the entire Treasury market. It means that the Fed will monetize all gross long-term issuance every year for the next 3 years." Most looked at the bold sentence without it registering just what it means. Perhaps, now that the "serious" media has finally taken on the topic of applying a calculator to the one driver of all marginal risk demand, it will register a little better.

In a Bloomberg story titled, appropriately enough "Treasury Scarcity to Grow as Fed Buys 90% of New Bonds" we read that "the Fed, in its efforts to boost growth, will add about $45 billion of Treasuries a month to the $40 billion in mortgage debt it’s purchasing, effectively absorbing about 90 percent of net new dollar-denominated fixed-income assets, according to JPMorgan Chase & Co." Actually that's incorrect and it is more like 100%. What is however 100% correct is what the bolded means in plain language: it is now accepted that the Fed will outright monetize all gross US issuance. Let us repeat this sentence for those who just had flashbacks to Adam Fergusson's "When money dies." The Fed is now monetizing practically all net new debt. So what did the Chairman say about this absolutely certain eventuality back in 2009 to Congress...

Our only question: was the Chairman simply lying of lying under oath?

And finally, because it appears it takes the MSM between 3 and 36 months to catch up to Zero Hedge, there is another relevant question that we posed 3 months ago:

Another way of visualizing this is how many assets as a percentage of US GDP the Fed will hold on its books. Currently, this number is 18%. By the end of 2013, the Fed's historical flow operations will be accountable for 24% of US GDP.

 

Why is this important? Simple: when the time comes for the Fed to unwind its balance sheet, if ever, the reverse Flow process will be responsible for deducting at least 24% of US GDP at the time when said tightening happens. If ever.

Hence no unwind. We are confident to state this, just as we were confident with our other forecast from three months ago:

What is scariest, is that as of this moment, all of this is priced in. Any incremental gains in the stock market will have to come from additional easing over and above what Bernanke just announced.

What Bernanke implicitly, and in one week explicitly, has announced is that it now takes $85 billion in monthly Flow injection from the Fed just to keep the market from collapsing. Oh, yes, and the market still has to surpass the highs seen the day after QEternity was announced.

 

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Mon, 12/03/2012 - 21:48 | 3031342 realtick
realtick's picture

Awesome chart, great reporting

Mon, 12/03/2012 - 21:56 | 3031359 MiltonFriedmans...
MiltonFriedmansNightmare's picture

How long until Fed owns us all, lock stock and barrel?

Mon, 12/03/2012 - 22:02 | 3031366 mikla
mikla's picture

Great point.  This is why all that monetizing is against its charter.

When it's important, you have to lie.  And break the law.  And violate your charter.

And accidentally own everything.

It was an accident

Mon, 12/03/2012 - 22:04 | 3031381 Kitler
Kitler's picture

And accidentally own everything.

When the time comes that will be left to the growing stable of international Federal Reserve primary dealers.

Mon, 12/03/2012 - 22:06 | 3031386 Enslavethechild...
EnslavethechildrenforBen's picture

Bernanke owns the fucking Congress.

Mon, 12/03/2012 - 22:28 | 3031438 Karlus
Karlus's picture

No, what happens is the big reset. Citizens abandon the dollar for anything other than paying taxes and speeding tickets.

Once one store of value ceases to perform that function, people (players) select another store of value.

It would help to look at MMORPGs which are for the unitiated World of Warcraft.

While slaying orcs and such is certainly fantastic, the internal economy and hyperinflation are almost perfect laboratories for when fiat (or in our alternate world, unliited gold pieces) fails.

The dollar and soon to be "new dollar" are dead on arrival. Question is how orderly the collapse is and that will determine if old pennies, bullets or radioactive bottlecaps of Nuke Soda are used.

Mon, 12/03/2012 - 22:49 | 3031472 SafelyGraze
SafelyGraze's picture

the fed is not enough

even if it buys all the treasurys

the problem is that the govt still relies on income tax and employment tax and capital gains tax and death tax for funding

you see the problem

with no jobs, there's no income to tax

when institutional investors and momnpop leave the markets, there's no capital gain to tax

when people have no wealth to bequeath, there's nothing to tax when they die

we need somehow to tax non-citizens on their income and capital gains and wealth (either at death or, perhaps, before)

this is the fundamental problem to be solved in the New American Century

 

Mon, 12/03/2012 - 22:57 | 3031498 economics9698
economics9698's picture

The best think we can hope for is strong secessionist movements that will separate the USA into five or six different countries with one or two of the six based on Liberty. 

Mon, 12/03/2012 - 23:04 | 3031522 markmotive
markmotive's picture

Of course there's no unwind. Once the realization sets in that the Fiscal Cliff can't be resolved we're in for a world of hurt.

John Boehner is making the rounds telling the world how fucked we are...

http://www.planbeconomics.com/2012/12/03/john-boehner-on-fiscal-cliff-ne...

Mon, 12/03/2012 - 23:24 | 3031551 hedgeless_horseman
hedgeless_horseman's picture

 

 

That chart, alone, is worth the price of admission.  Thank God we few have Zero Hedge to work through all of this shit in advance.  Without these articles and this Fight Club I would be mighty unsure of myself right about now.  Trying to walk Mrs. Horseman, and the Little Horsemen, through all of this in a vacuum would be a real chore.  

Act accordingly, trust your gut, and when everyone else is losing their head, keep yours.

There's blood in the streets its up to my ankles...

Mon, 12/03/2012 - 23:58 | 3031630 CrazyCooter
CrazyCooter's picture

Ok, was late to the thread because I called my dad to chat about it...

Question: if the Fed owns 60% of the whole market in 3 years and almost all new issuance between here and there ... and given that commodities markets clearly signaled via Corzine/etc that speculative money better stay away from food and fuel ... where does all the money go?

Pension funds can't go into stocks, the market is too small. What is left? Real estate (if so we are all homeless because most of America can't afford that)?

<BOGGLES/>

Regards,

Cooter

Tue, 12/04/2012 - 00:19 | 3031662 nope-1004
nope-1004's picture

Bernanke lies.  Geithner lies.  TBTF banks lie.  See a trend?  Money has no honor.  Attracts ZERO credibility.  These fiat whores are nothing more than simpletons that can't get anything right, so end up lying and trippinig their way through to bonus season.  As my accountant told me so eloquently the other day, "Bankers really aren't smart people, so don't overthink their intentions...."  LOL.

 

Tue, 12/04/2012 - 08:08 | 3031893 GetZeeGold
GetZeeGold's picture

 

 

Hey mayhem just happens sometimes......to lily white virgins like Ben and Timmy.

Tue, 12/04/2012 - 08:19 | 3031905 bunnyswanson
bunnyswanson's picture

These are private banking business men.  They have a goal and that is to make a profit Not morons.  Shrewd and ruthless perhaps but not stupid.

 

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”

– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

1) The Rothschild Family - London

2) The Rothschild Family - Berlin 3) The Lazard Brothers - Paris 4) Israel Seiff - Italy 5) Kuhn-Loeb Company - Germany 6) The Warburgs - Amsterdam 7) The Warburgs - Hamburg 8) Lehman Brothers - New York 9) Goldman & Sachs - New York 10) The Rockefeller Family - New York

 

Top shareholders of The Federal Reserve bank. 

Tue, 12/04/2012 - 08:50 | 3031942 Darth Rayne
Darth Rayne's picture

Hate to upset you but most, if not all, of the people listed are very closely tied to Rothschild family.

 

If a Rothschild said jump, they ALL would.

 

This shouldn't be a surprise, international finance is basically Rothschild Finance.

Tue, 12/04/2012 - 09:56 | 3032121 TruthInSunshine
TruthInSunshine's picture

Is The Financial Times part of the "conspiracy" crowd? Anyone?....Anyone?

I ask because of this article....ya' know....

Rockefellers and Rothschilds unite

By Daniel Schäfer in London | May 29, 2012 11:46 pm

Two of the best-known business dynasties in Europe and the US will come together after Lord Jacob Rothschild’s listed investment trust and Rockefeller Financial Services agreed to form a strategic partnership.

 

RIT Capital Partners is to buy a 37 per cent stake in the Rockefeller’s wealth advisory and asset management group for an undisclosed sum, giving Lord Rothschild’s London-listed trust a much sought-after foothold in the US.

 

The transatlantic union brings together David Rockefeller, 96, and Lord Rothschild, 76 – two family patriarchs whose personal relationship spans five decades.

 

The Rockefeller group traces its roots back to 1882 when John D. Rockefeller established one of the world’s first family offices dedicated to investing his wealth. It has since developed into a provider of wealth and asset management services to other families, foundations and institutions. It is majority-owned by the 19th century oil magnate’s family and has $34bn of assets under administration.

 

The partnership with RIT will focus on setting up investment funds, eyeing joint acquisitions of wealth and asset managers and granting each other non-executive directorships.

UPDATE:

For those who wish to not register with FT in order to read the article, please click here.

Tue, 12/04/2012 - 00:44 | 3031682 FeralSerf
FeralSerf's picture

A hell of a lot of the money goes where it's been going -- into savings/MMF accounts paying zero or less nominal interest.  This is a huge hidden tax.

Tue, 12/04/2012 - 01:41 | 3031713 CrazyCooter
CrazyCooter's picture

Return of capital vs Return on capital says much for this period in time.

Wise are those who refuse to hold bags (i.e. -1% is MUCH better than the -25% they are looking to stick to someone). It is really interesting to watch the feeder fish leave...

Regards,

Cooter

Tue, 12/04/2012 - 08:22 | 3031868 Muppet Pimp
Muppet Pimp's picture

Lets try to name all the counterfeiting operations:

Federal Reserve - Counterfeit Money

MERS - Counterfeit Land Title

Internet - Counterfeit Information (eventually leading to rewriting history in real time to suit their needs)

Mammon - Counterfeiting God

China - Counterfeit Goods (many of which are poisonous)

Lies - Counterfeit Truth

 

I am on the fence about this one but: Corporations - Counterfeit People

OT:  We purchased a living room set from Rooms to Go a couple years back.  It was chinese made.  There was some chemical being emitted from it (probably from the glue) that was like a minor nerve gas or something.  I grabbed one of the pillows off of it and took it to the store to show the salesperson.  I stopped on the way there, it was a very hot day.  When I got back in the vehicle the fumes were so strong from that hot pillow that I had to roll down the windows and let it air out before I could drive.  My personal opinion is that we need to have another tea party where we take all the chinese made goods and dump them in the ocean.

The NY Times would have us believe that Thomas Jefferson was a bad man for having 'slaves' back when if you had work and roof over your head and food you were ahead of many.  But Apple uses slave labor to build its products presently and that is OK.  These people are sick to their very core.  Here is the link: http://www.nytimes.com/2012/12/01/opinion/the-real-thomas-jefferson.html

Tue, 12/04/2012 - 01:03 | 3031693 hairball48
hairball48's picture

The pension funds will be forced into USTreasuries because there won't be anywhere else they can go. All part of the grand plan of the Fed to steal retiree's wealth. Then after pensioners are slaves to the gov't, the dollar collapses and they have nothing :)

And then it's game on!!!

Gold bitchez. I bought more today :)

Tue, 12/04/2012 - 01:43 | 3031716 CrazyCooter
CrazyCooter's picture

How? There is no supply! Well, if they underbid the Fed at ... near zero?

Did I completely miss the point of the post?

Not snarky ... but, seriously I read this as the Fed eats all the supply and folks can maybe roll positions at lower and lower rates ... but in the end the fed will own the whole market.

Regards,

Cooter

Tue, 12/04/2012 - 02:57 | 3031767 bankonzhongguo
bankonzhongguo's picture

Sadly, this all ends the same way - Blame the Jews.

Tue, 12/04/2012 - 03:41 | 3031785 EasterBunny
EasterBunny's picture

Govt guranteed munis?

Fri, 01/04/2013 - 16:24 | 3123591 HurricaneSeason
HurricaneSeason's picture

The Ohio teachers pension fund lost $100 million on BP stock after the oil spill and are suing BP because they wanted a big profit. How can pension funds buy treasuries at 2% when they say their funds are only 30% underfunded because they guarantee they will get 7 1/2% to 8% returns each year?

Tue, 12/04/2012 - 01:03 | 3031694 Money Squid
Money Squid's picture

she came

Mon, 12/03/2012 - 23:18 | 3031557 TruthInSunshine
TruthInSunshine's picture

Bernanke, every too-big-to-fail-yet-too-incompetent-to-succeed banker's favorite piece of ass, will never be called on the Congressional carpet to explain his unambiguous assurance that the Federal Reserve "Bank" will not monetize U.S. debt issuance.

What does that tell us about our system? It's irreparably broken. Throw out all the blah blah about checks and balances and branches of government and the rest of the fairy tale.

America is officially no longer a sovereign nation nor is it governed by way of a republican form of representative democracy; it's a Crony Comrade Banker Fiefdom marketed as an independent nation via an extremely effective propaganda campaign.

America, of the bankers, by the bankers and for the bankers. Period.

Mon, 12/03/2012 - 23:42 | 3031600 TonyCoitus
TonyCoitus's picture

Great commentary.

Tue, 12/04/2012 - 06:35 | 3031844 Poor Grogman
Poor Grogman's picture

Where are the deflation crowd when you need them for a good dust up?

Tue, 12/04/2012 - 00:36 | 3031675 ahb
Tue, 12/04/2012 - 08:00 | 3031887 bunnyswanson
bunnyswanson's picture

Communitarism (nongovernmental agencies which operate on tax dollars) will be the last resort and then, they'll have us. Displacing people, herding, culling is easier during crises.  A generation away from "it never happened." 

"The Handmaid's Tale," a novel by Margaret Atwood,describes this perfectly. Who will be targeted will depend who is interpreting the laws at any given moment.  Bigotry and racism will come alive in the little minds of obedient servants who obey the orders to take part in a sneak attack.  It's an agenda and they are following a protocol. 

"The issue which has swept down the centuries and which will have to be fought sooner or later is The People versus The Banks."

Lord Acton. Historian. Politician. Writer. 1834-1902.

Mon, 12/03/2012 - 23:23 | 3031566 edb5s
edb5s's picture

Bernanke is hanging on tight to this shit rope.

 

http://www.youtube.com/watch?v=lVkR7MsfSJY

Mon, 12/03/2012 - 23:39 | 3031594 MiltonFriedmans...
MiltonFriedmansNightmare's picture

This aggression will not stand, man!

Tue, 12/04/2012 - 00:10 | 3031624 TruthInSunshine
TruthInSunshine's picture

mikla said: And accidentally own everything.

 

That's exactly right, bitches. Ben Bernank, along with Timmay Franz (who took over from Hank "Tanks In The Streets in 1 Fucking Hour If I Don't Get a Blank Check For Wall Street" Paulson) over at Treasury took things from killing the U.S. softly to killing it more thusly with thrust.

What else lurks on the balance sheets of Maiden Lane I through Maiden Lane XXXXVIII (those murky repositories of accumulated toxins and fecal matter that the Fed & Treasury under the joint competency and integrity of The Bernank & Jeetner overpaid all their favorite too-big-to-fail bankster friends for by a factor of 2x to 50x in accordance with actual FMV of the time).

Just one of what I'm sure will be ultimately established as thousands of examples of the shit purchased with fiat FRNs conjured from thin air:

 

Federal Reserve Crammed On Red Roof Inn Debt | ZeroHedge

 

Remember that bit about how the Fed only holds the highest quality debt (we forget if it was Tweedledum or Tweedledee who said it)? It appears that's just the latest lie in the Fed's endless catalog of misrepresentations. According to TREPP, 11 properties held by Red Roof Inn hotels saw foreclosure actions initiated on them by CMBS special servicers, and are now being sent to the auction block. Guess who is most impacted by this action? Why, the Federal Reserve of course.

 

The properties are part of the 131 Red Roof hotels which special servicers Centerline and LNR Partners are "working out" in restructuring $368 million of debt. As Debtwire reports: "The securitized debt backing the properties held within four CMBS trusts, represents a portion of the total USD 775 million senior mortgage. A good portion of the remaining USD 407 million in debt, held on lenders' balance sheets and intended for later securitization, landed with the Federal Reserve via Bear Stearns. The Fed holds $444 million in Red Roof Inn debt, which appears to be a mix of mortgage and mezzanine debt, through its Maiden Lane I vehicle." And here is why you should not trust any updates of Maiden Lane I from the Fed: "This month, the appraisal reduction amount on the Bear Stearns loan was upped from $64.5 million to $102.3 million, according to Trepp, which amounts to a roughly 40% reduction in loan balance."

Tue, 12/04/2012 - 00:54 | 3031686 FeralSerf
FeralSerf's picture

That's a good example of how the Fed's balance sheet gets reduced.

Tue, 12/04/2012 - 01:01 | 3031689 TruthInSunshine
TruthInSunshine's picture

That's a phantom accounting on paper mountebank/charlatan trick; when the actual unwind comes, the losses will then be actually realized.

Tue, 12/04/2012 - 07:54 | 3031883 Bobbyrib
Bobbyrib's picture

Anyone wanna bet the auction is rigged?

I'll take the side of the auction being rigged you get the shit end of the stick..er the auction not being rigged.

Tue, 12/04/2012 - 02:09 | 3031735 Things that go bump
Things that go bump's picture

Yes, and as taxpayers we own that fecal matter. 

Tue, 12/04/2012 - 07:54 | 3031884 nmewn
nmewn's picture

Actually, I don't believe we do...the Fed does.

The Fed remains dependant on the government to enforce any claim. They are merely bankers, no army, no police. Now, we can say (as mikla & TIS correctly have) that it has suborned "our" government to its purposes but it's still theft through credit.

Think of it like this, somone has stolen your credit and bought a new car with it. Now they are attempting to keep the car and force you to make the payments on it through the governments court system.

It's the same thing.

Tue, 12/04/2012 - 05:14 | 3031805 TheObsoleteMan
TheObsoleteMan's picture

You don't realize it, but that would be playing right into their hands. The separation and division of the USA has been their plan all along, just like it was for the USSR. the country is so divided along so many lines now, I don't see how it is avoidable though, once things start to get hot. And get hot it will, all too soon. Once it happens, we will all be laid waste, never to rise again. Forget the fantasies of liberty, freedom and a better life once the split has happened. We will be picked off one by one. China would like nothing more than for that to happen. What they couldn't buy cheap, they would just take; water rights, coal, minerals, basic materials, farms, natural gas, etc. Who could stop them? I suspect most regional states would sell for the new reserve currency {BRIC dollar?}

Tue, 12/04/2012 - 08:44 | 3031886 Urban Redneck
Urban Redneck's picture

Which "They" - TPTB, NWO, Old Money, Russia, China, Europe all have distinct ambitions.

Only two (or 2.5) of those five groups are currently positioned to benefit from a US break-up.  The rest benefit from maintenance of the status quo.  Whether Americans still possess the drive and the skill to reorganize and succeed in the event the status quo is not maintained is another matter.

Tue, 12/04/2012 - 08:00 | 3031888 Lord Koos
Lord Koos's picture

Yeah, that'll end well...

Tue, 12/04/2012 - 08:06 | 3031892 Cloud9.5
Cloud9.5's picture

All we need are a few federal  and state judges with the sand to enforce state rights within the states in which they operate. We need nullification not secession.  We need one federal agent to be tried and convicted for attempted kidnapping for his efforts to enforce the NDAA .  That one act would set the power grabbers in the beltway back on their heels.  The alternative is to have the country break up into warring factions.  In that case we are done.  It should be remembered that the only reason they have power over us is that we willingly submit to their edicts.

 

Fri, 01/04/2013 - 16:01 | 3123472 HurricaneSeason
HurricaneSeason's picture

Do you think the military industrial complex will like that? Who would save us from the red hoard invading? I guess they wouldn't want to take over Detroit or California. So we just give up the reserve currency and go with more like Zimbabwe dollars and pay the interest rates that Greece and Ireland pay? The new state better border on Mexico or Canada so supplies can be trucked in or there would be a toll gate for the new state to pay it's share of the national debt, probably at 20% interest. If 5 bordering states seceded together, they'd probably pay the same $300 billion a year interest on their share of the national debt that the whole country pays now because their interest rates would go up 10 fold. I wouldn't hold your breath on that one, think Cuba, it's been done.

Mon, 12/03/2012 - 23:05 | 3031516 AlaricBalth
AlaricBalth's picture

For a good read, here is a copy in PDF of Adam Fergusson's When Money Dies.

Fergusson so eloquently states, "This is, I believe, a moral tale. It goes far to prove the revolutionary axiom that if you wish to destroy a nation you must corrupt its currency. Thus must sound money be the first bastion of a society's defence."

http://thirdparadigm.org/doc/45060880-When-Money-Dies.pdf

Tue, 12/04/2012 - 01:37 | 3031709 brettd
brettd's picture

Study your Argentine history.

Juan & Eva Peron era. 

English speaking version of that script coming to the streets near you...

Tue, 12/04/2012 - 02:40 | 3031751 prains
prains's picture

thanks AB

Tue, 12/04/2012 - 01:49 | 3031722 Diogenes
Diogenes's picture

"we need somehow to tax non-citizens on their income and capital gains and wealth (either at death or, perhaps, before)"

 

They have been doing that for years by borrowing money from  foreigners (that they will never pay back).

But the foreigners stopped buying a couple of years ago. So now they just print bonds which they send over to the Fed in exchange for money (But they aren't printing money!) AHAHAHAHAHAHA

Tue, 12/04/2012 - 08:02 | 3031890 Urban Redneck
Urban Redneck's picture

It is still happening.  USD and UST are interchangeable.  Trade settlement denominated in USD creates a vehicle for the U.S to export currency debasement (inflation) through foreign demand for USD.  Which is why things can get soooooooo much worse in the US, irrespective of what the fools in Washington do.

Tue, 12/04/2012 - 08:33 | 3031920 Acet
Acet's picture

The US risks a far worse collapse than most other nations exactly because the USD is the current Reserve Currency.

As the FED printed money while Congress & the President kept increasing Government debt, most of the nasty side effects were diluted due to foreign holdings of US dollars, so the US did not really felt those effects with full force, which meant there was far less restraint on money printing and deficit increasing than otherwise.

However, as Reserve Currency, the USD is subject to a great unwind when it stops being a Reserve Currency. When foreigners start exiting the USD en masse (a process which once it starts is a vicious cycle) what you'll see is 2 decades of the side-effects from ultra loose monetary policy and giant deficits coming back to the US in the space of a few months: that's guaranteed hyperinflation, followed by currency collapse.

 

Tue, 12/04/2012 - 02:45 | 3031756 Snidley Whipsnae
Snidley Whipsnae's picture

effectively absorbing about 90 percent of net new dollar-denominated fixed-income assets, according to JPMorgan Chase & Co

Fixed income assets? Replace that phrase with paper. The Fed purchasing all paper assets going forward is not going to give the Fed permanent control of Non-Paper assets.

Weakening dollar going forward = higher dollar prices for commodities = higher food and fuel bills for J6P, who has a fixed or declining income (less hours already thanks to the pres) = social perturbations ahead = reason for Patriot Act, NDAA, homeland security, recent talk of high taxes on ammo sales, FEMA camps, etc ...  

Be a good Boy/Girl Scout... Be Prepared.

 

Tue, 12/04/2012 - 07:48 | 3031879 Urban Redneck
Urban Redneck's picture

How about the non-US-citizens TAX THE FUCKTARD THIEVING AMERICAN ELECTORATE for the stupid system they empower and the wealth they already steal from the rest of the world through the monetary debasement they export?

Or we could just let the NWO crowd win and equalize the world at $10,000 per year, at which point the bloviating bovine buffoons will be starving to death en masse because $10,000 won't even buy 3 months worth of manuFATured McFood.

The fundamental problem that Americans will have to solve in the next century is what Americans can sell abroad for the energy and iCrap their existence is so dependent upon, when the rest of the world doesn't want rolls of Uncle Ben's finest anymore?

The Chinese survived for decades in Kowloon walled city, whining New Yorkers can't even go a couple days with far more basic services at than less 1/10 the population density.

 

 

 

 

Tue, 12/04/2012 - 08:47 | 3031937 ATM
ATM's picture

The reliance on "taxes" diminishes each day. In fact the government doesn't need any taxes as long as it can issue debt purchased by the fed (with GS as an intermediary so the banksters can get thier risk free return). 

Taxes are nothing but a fear tactic that the government dare not give up. They like the threat as it is used to coerce. But they don't need taxes to function. Look at Cuba.they don't have taxes but they don't really need any additional coercive power now do they?

Mon, 12/03/2012 - 23:41 | 3031598 literarybeer
literarybeer's picture

you put way too much faith in the sheeple.

Mon, 12/03/2012 - 22:50 | 3031448 TwoShortPlanks
TwoShortPlanks's picture

Greenspan accidentally slipped and stuck his dick in your freedom. He assured you the love would trickle down soon, but it didn't, and look what he spawned, a banjo playing retard economy.

Bernank is doing the same thing. He accidentally slipped and stuck his dick in your currency, giving the fucktard economy a fucktard currency as a brother.

The fucktard economy and fucktard currency are now inbreeding a fucktard treasury bond.

Gold = Economical and Financial Eugenics.....DELIVERANCE BITCHEZ!

Mon, 12/03/2012 - 22:59 | 3031505 old naughty
old naughty's picture

Ben does not have to retract anything.

He'd continue to say he didn't do all those things...

and his replacement will 'sworn' same, 'do' same.

 

Mon, 12/03/2012 - 23:03 | 3031521 TwoShortPlanks
TwoShortPlanks's picture

These financial and economic tards are racing to the bottom of the economic gene pool, where we'll drown under an ocean of Derivatards.

Tue, 12/04/2012 - 04:21 | 3031799 slvrizgold
slvrizgold's picture

That's absolutely hilarious TwoShortPlanks.   The economy and the currency are like when John Malkovich played Lennie in "Of Mice and Men."    Bernank and Greenie are like Lennie -  OOOPS, duhhh, I accidentally killed da little furry animal!

Tue, 12/04/2012 - 07:24 | 3031845 Anasteus
Anasteus's picture

Yes, you're right. The fact that a small group can literally own asses of many demonstrates how we, stupid goyim animals, are incapable of taking responsibility for our own affairs and overall acting as human beings. The Congress puppets are to be blamed in the first place, that's without dispute, but the fooled sheeple have done their work as well.

Anyway, there should be no room for fear or undue outrage but rather for consciousness, patience and appropriate acting. There is still a long road for us to become human beings but there is no other choice.

A good news, however, is the fact that the leading puppet masters, thanks to their innate pathological arrogance, ignorance and superiority, overlook a psychological threshold one can bear. Being trapped in a cage of greed, self-importance and power hunting veiled by 'historical mission towards centrally planned fortune' they are honored to be heralding and embodying, they are not able to 'hear grass growing'. Despite many examples in history, and particularly socialism, they cannot grasp that by enforcing more and more restrictions on people the threshold will just be sooner exhausted. This unlearnable ignorance together with the false belief they can manage all the world on their own is their fatal limitation.

Tue, 12/04/2012 - 07:53 | 3031882 Muppet Pimp
Muppet Pimp's picture

Very nice work sir.

Mon, 12/03/2012 - 22:25 | 3031430 GOSPLAN HERO
GOSPLAN HERO's picture

... and Honey Doo Doo inherits the earth.

Mon, 12/03/2012 - 23:24 | 3031563 caconhma
caconhma's picture

The situation becomes bizarre.  Now, there will be no need to sell Treasury Bonds to anybody. Fed will buy them all. So, what are consequences? Flood of money to spend without any new goods created.

What about the rest of the world (China, Japan, Russia, etc.,) who own zillions of these Treasury Bonds? They can panic now at any moments and will dump these Treasuries for something more valuable than worthless IOU. My guess, regardless of what FED and ECB will do, there will be a stampede to get these Treasuries exchanged for something more valuable: there will be monetization of Treasuries into commodities.

Now, what about US$ as a reserve currency? Now, we are talking about US$ default.

As for “paper” gold, who wants to keep paper if there is no real gold to back them up?

WOW, we are moving into a default. I don’t think that FED calculated and/or realize the consequences and the President and the Congress have any clue of what is about to happen.

 

Tue, 12/04/2012 - 00:12 | 3031651 CrazyCooter
CrazyCooter's picture

With the caveat that all that new money ... will be going out the door as (1) medicare/medicaid, (2) social security, (3) interest with no new bonds to buy, and (4) dept of defense. The rest is mostly rounding errors.

So, the speculative aspect it cornered ... no commodities and no treasuries (see up post) ... so, I am curious to see how this unfolds.

Long rice, frozen salmon, and small towns in the middle of no where.

Regards,

Cooter

Tue, 12/04/2012 - 02:20 | 3031739 Central Bankster
Central Bankster's picture

Bernanke Gold smackdown in progress during the wee hours of the night.  LOL 8000 contracts into illiquid market.  Wow!

Tue, 12/04/2012 - 06:45 | 3031850 Poor Grogman
Poor Grogman's picture

Thanks for the tip just loaded up, wish me luck...

Tue, 12/04/2012 - 07:17 | 3031863 samcontrol
samcontrol's picture

" what is about to happen". time frame?

Mon, 12/03/2012 - 23:08 | 3031534 formadesika3
formadesika3's picture


<<Great point.  This is why all that monetizing is against its charter.

When it's important, you have to lie.  And break the law.  And violate your charter.

And accidentally own everything.>>

It's always better to apologize than to ask for permission. When you can blandly state, "Nobody could have foreseen...", that absolves all guilt.

Tue, 12/04/2012 - 04:47 | 3031808 TheObsoleteMan
TheObsoleteMan's picture

If you do a quick check, you will see where Congress annulled that part of the Charter back in the 1980s. It also granted the Fed other powers and privileges, like buying foreign debt and swaps. They were preparing for today thirty years ago!

Mon, 12/03/2012 - 22:26 | 3031432 smlbizman
smlbizman's picture

milton...that is the goal.....turn the words off and study the actions....these guys know exactly what they're doing...try discharging debt owed to the feds...

Mon, 12/03/2012 - 23:58 | 3031629 Stoploss
Stoploss's picture

The sands of time are running low for the Bernank..

Tue, 12/04/2012 - 01:09 | 3031698 JPM Hater001
JPM Hater001's picture

"How long until Fed owns us all, lock stock and barrel?"

How Quaint.  You think you were born free.

Tue, 12/04/2012 - 08:48 | 3031871 Urban Redneck
Urban Redneck's picture

The Fed doesn't own everything, and it's not intended to. The Fed is the ultimate Bad Bank, and an asset OF and TO, the member banks which own the Federal Reserve system. The Federal Reserve used to keep the bad assets off-balance-sheet, two double-entry-book-keeping steps removed and shielded from the licensed member banks. Now, treasuries are simply expansion/recognition/realization of the Bad Bank on the Federal Reserve's own balance sheet.

The benefit of the dilution of the money supply accrues and flows to the debt and equity owners of the member banks at the expense of participants in the USD based economy. The debt and equity owners of the member banks then convert the proceeds into equity or tangible assets more resistant to the debasement of the currency.

They win, everyone else loses, and when scheme can no longer be maintained, the debt serfs with have FuckTons of paper saying Federal Reserve Note (see Uncle Ben for Payment), and the Frederal Reserve will have FuckTons of paper saying US Treasury Note (see US taxpayer/debt serfs for payment), and the banksters will have Mansions, Factories, Cars, Gold, Art, Wine and a good laugh at everyone else's expense, because they (and their wealth) will be on the outside of the Circle of Stupidity.

 

Tue, 12/04/2012 - 07:48 | 3031877 SmallerGovNow2
SmallerGovNow2's picture

Fed ain't getting my barrel(s)....

Mon, 12/03/2012 - 22:53 | 3031487 Silver Garbage Man
Silver Garbage Man's picture

Reason #1 for holding physical precious metals... Not going to be diluted... Or vaporized...
I sleep like a baby

Tue, 12/04/2012 - 01:45 | 3031719 San Diego Gold Bug
San Diego Gold Bug's picture

I can't take delivery of my next .308 soon enough (a Springfield .308 Socum).  The Gold American Eagles chart looks the same as the ammo sales chart since BO was elected again.  Hockey stick straight up!!!!

Buy now while we still can get the metal!

Mark Lonneker

President

Liberty Coin & Precious Metals

Libertycpm.com

Tue, 12/04/2012 - 03:23 | 3031776 ozzz169
ozzz169's picture

Duh... 

Tue, 12/04/2012 - 04:04 | 3031794 Hobbleknee
Hobbleknee's picture

US GDP is comprised of:

 

24% Fed

33% iPhone

43% Government

No soup for you!

Tue, 12/04/2012 - 15:17 | 3033211 Panafrican Funk...
Panafrican Funktron Robot's picture

http://cranedata.com/archives/all-articles/4260/

One of the many reasons this monetization is occuring.  

Mon, 12/03/2012 - 21:51 | 3031346 rosethorn
rosethorn's picture

Crowding out, baby!!

Mon, 12/03/2012 - 21:53 | 3031347 hairball48
hairball48's picture

Lies, lies and more damn lies. Bernanke should be hung  by his limp dick on a lightpole or something. God he's just an awful human being.

Tue, 12/04/2012 - 01:40 | 3031712 brettd
brettd's picture

Yeah, but there's nearly 700 elected "officials" up there too, and most all (save RP) are mute.  Cowards.

Mon, 12/03/2012 - 21:52 | 3031351 fonzannoon
fonzannoon's picture

i have always thought the fed would one day have to unwind. since that is not the case...what is the result of the fed just holding all these assets until maturity?

Mon, 12/03/2012 - 22:11 | 3031400 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

A tight bond market.

Mon, 12/03/2012 - 22:14 | 3031406 fonzannoon
fonzannoon's picture

a tight bond market works in his favor, no? everyone else fighting for scraps. what am i missing? if the fed refuses to sell...what happens?

Mon, 12/03/2012 - 22:22 | 3031422 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It works in his favor.  It keeps demand high, which keeps prices high and rates low.

Mon, 12/03/2012 - 22:34 | 3031454 fonzannoon
fonzannoon's picture

well shit...wtf?

Mon, 12/03/2012 - 22:50 | 3031482 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He is buying the bonds with paper printed out of thin air.  He will keep the bond market tight but he will do this at the cost of the currency.  This will have his desired affect of keeping stocks up too though.  The only way people will be able to tell that Bernanke is not relieving them of all of their burdens is when gas goes up (because no one cares about gold because nobody owns gold).  He will not be able to keep gas low forever.

He can keep gas down for a short time because he can short it, but the dollar will start falling eventually as the dollar supply increases.  Add the eventual fall in world oil production and the the dollar is screwed from both the supply and demand side, but like I wrote, Bernanke has a little time before that happens.

Oil production is set to fall in 2015 at the latest.  The supply-side pressure on the dollar will mean it will gradually weaken until then.  The wildcard is if a major war breaks out before then.  SOmething like Israel vs. Iran or if China/Russia step in for Syria.  Then the financial system will be on the brink.

If that happens Bernanke is likely to cut the value of the dollar to keep pensions and annuities up because we will need GDP to stay positive in nominal terms.  This is a smoke screen though as in real terms growth turned negative a decade ago.

Mon, 12/03/2012 - 22:56 | 3031495 fonzannoon
fonzannoon's picture

I appreciate the in depth response. i am not sure why the US would be itching for war in that case, unless it's all about a scapegoat. which i'm sure it is.

Mon, 12/03/2012 - 23:10 | 3031538 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The financial system is going to collapse.  They may just let it.  This would be the case if they would like to go back to a gold standard.

If they don't they will panic the markets with a war.

Mon, 12/03/2012 - 23:33 | 3031577 TruthInSunshine
TruthInSunshine's picture

They'll cross that whole "unwinding" thing when they get to it, whether they have to unwind 24 trillion, 44 trillion, 220 trillion...

That's not sarcasm, but the reality.

Does anyone actually believe that a) they're competent enough to effectively plan ahead on such matters (doesn't history teach us anything?) and/or b) they give a shit about what will happen when the "then" arrives?

Anyone believing that they have a rational plan or that they care about such matters is not paying close enough attention to large details.

Mon, 12/03/2012 - 23:50 | 3031617 TheSilverJournal
TheSilverJournal's picture

There is no unwind. Stopping or even slowing the growth in the balance shit will crash the system. The worldwide monetary system is one giant fiat ponzi scheme. Ponzies only stay together if they are able to continually bring in new entrants into the scheme, and in this case, the entrants are newly created currency. There are only two outcomes: implosion of the fiat ponzi now, or an even grander implosion of the fiat ponzi later.

Mon, 12/03/2012 - 23:58 | 3031631 Spastica Rex
Spastica Rex's picture

They - our dear leaders - mostly care about their own place in the mythological constructs of our 21st Century world. We feel trapped. They feel like demigods. Isn't there a new constellation called Bernanke?

Tue, 12/04/2012 - 01:43 | 3031715 brettd
brettd's picture

You start wars to distract your people from their day to day economic conditions.

There's a reason they're called "Theaters of War."

Tue, 12/04/2012 - 02:54 | 3031763 andrewp111
andrewp111's picture

Since Obama will never run again, he is free to let the system collapse. Then he can blame the Republicans and socialize everything under 1 party rule.

Tue, 12/04/2012 - 08:20 | 3031906 francis_sawyer
francis_sawyer's picture

since when was there ever a '2 party' rule?

Tue, 12/04/2012 - 09:24 | 3032013 samcontrol
samcontrol's picture

" add the eventual fall in world oil production"

wtf you talking about ?

Mon, 12/03/2012 - 22:28 | 3031437 Unprepared
Unprepared's picture

The whole capital markets would become a giant overnight repo market?

Mon, 12/03/2012 - 22:25 | 3031423 ekm
ekm's picture

That would mean that the US Treasury would pay the principal of the bond to the Fed.

Question: How's the Treasury going to find the money to pay the Fed? Answer: By having the Fed to buy new treasuries to pay the Fed. So the Fed creates money with the sole purpose of paying itself. Which means that the congress will simply close the Fed down. It's the death of the Fed.

 

It becomes a closed circle and the economy starves for money or nobody wants the money. When nobody wants the money they call it "reserves".

Mon, 12/03/2012 - 22:40 | 3031464 ekm
ekm's picture

The very existence of excessive reserves would mean that those US dollars are currently being rejected by the market.

The market finds no use for them.

Tue, 12/04/2012 - 01:20 | 3031705 Demologos
Demologos's picture

And the kick-off for hyperinflation, bit-chez.

Mon, 12/03/2012 - 23:48 | 3031610 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

YES!

The Fed is committing suicide!

Go For It!

 

Tue, 12/04/2012 - 00:02 | 3031635 TruthInSunshine
TruthInSunshine's picture

After its implosion, it will rise from the ashes for the 4th time in U.S. History, so long as the The Money Masters are running the "monopoly fiat conjured from thin air" Ponzi.

It will have a much more patriotic & friendly name, such as The U.S. Bank For Prosperity Opportunity, and it will have a very slick, best & brightest, Madison Avenue advertising assassin team.

Tue, 12/04/2012 - 06:56 | 3031856 Poor Grogman
Poor Grogman's picture

The right thing to do would be to preserve the FED as a monetary museum for school kids to learn about what really happened.

A nice finishing touch would be a RP statue in the fountain out front.

there could be a national holiday also called "Federal Reserve Day"

This would be the US equivalent of Bastille day in France, when the french people tore down the political prison that was the Bastille brick by brick.

Tue, 12/04/2012 - 00:04 | 3031641 FreedomGuy
FreedomGuy's picture

Nontrader here. What is the difference in sterilized and unsterilized debt?

Tue, 12/04/2012 - 00:54 | 3031685 TruthInSunshine
TruthInSunshine's picture

Rough & Dirty- Sterilized means The Fed sold off an equivalent portion of its present "holdings" to pay for the purchase of new "assets," thus not expanding its balance sheet, whereas unsterilized means that the Fed had Treasury print newly minted fiat with which it used to buy new assets, thus expanding its balance sheet.

Mon, 12/03/2012 - 21:55 | 3031355 Piranhanoia
Piranhanoia's picture

JPM knows;    they get 10% for running the _______________________  and the _____________   and the ______________________ rackets.

Mon, 12/03/2012 - 21:54 | 3031356 stant
stant's picture

ok so americans bought gold eagles at record levels beacause they had flaw on stamping. hoping increased value[they all had it] does qe4 mean they will buy if they are gold painted tungstun? might ,still be worth more than frn

Mon, 12/03/2012 - 21:55 | 3031357 Hedgetard55
Hedgetard55's picture

Bernanke in an orange jump suit, in a Federal pen, getting butt fucked every night by his cellie, Big Bubba, no lube... then I can die in peace.

Mon, 12/03/2012 - 22:41 | 3031467 ghengis86
ghengis86's picture

Big Bubba or Big BUBA?  Or does it matter, since they both want their pound of flesh from the Bernank albeit for very different reasons (unless Big Bubba hates money printing too!)?

Mon, 12/03/2012 - 21:56 | 3031358 Dr. Engali
Dr. Engali's picture

Somewhere deep in the halls of the Fed the Bernank is mumbling to himself...." I hate that fucking Durden".

Mon, 12/03/2012 - 22:48 | 3031478 oddball
oddball's picture

I hope so...  Because fuck the bernak, in everyone of his rotting orifices.

Mon, 12/03/2012 - 21:56 | 3031361 Justlookatit
Justlookatit's picture

The ships sinking babayy

Mon, 12/03/2012 - 21:58 | 3031364 hairball48
hairball48's picture

If the Fed keeps on buying/monetizing debt, never unwinding, they will destroy the dollar itself. At some point, holders of dollars will simply say , "fuck it" and there goes the dollar.

Mon, 12/03/2012 - 21:57 | 3031365 woggie
woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY

Tue, 12/04/2012 - 00:43 | 3031678 A Middle Child ...
A Middle Child of History's picture

Hickory dickory dock,
Out slithered Woggie from under his rock
To post anew on an article or two
The same tired and worn out schlock.

Woggie/Woggieford/Will Ling/etc., likes to post the same shit on about half a dozen other sites under multiple aliases. Some of us actually have to earn a living and do not have the luxury of that kind of free time. But I am going to hound this moron wherever he appears until he disappears. Go slither back under your rock asshole...

Mon, 12/03/2012 - 22:22 | 3031420 SafelyGraze
SafelyGraze's picture

spoiler: it is a graph showing the rising value of a goldmark vs papermark in the early 1920s

fortunately we will not face this problem since there isn't a goldmark or golddollar or goldeuro or whatever

if you graph papermark vs papermark, you get a constant, flat, horizontal line at precisely 1.00000

and *that* is economic stabeeleetee

Tue, 12/04/2012 - 01:04 | 3031696 FeralSerf
FeralSerf's picture

The good part was it was impossible for them to collect a substantial amount of taxes.  If they double your taxes, no one gives a shit.

Mon, 12/03/2012 - 22:00 | 3031371 Catflappo
Catflappo's picture

Once the market fully digests this we may see Gold back at $1720.  

Mon, 12/03/2012 - 22:04 | 3031377 Confundido
Confundido's picture

Not if they don't want so! They will not let gold cross $1,800 at least until June 2013. In the meantime, they are going to make all late longs test the $1,650/oz level, to dissuade them of buying a "volatile" asset.

Mon, 12/03/2012 - 22:06 | 3031387 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

lol k

Mon, 12/03/2012 - 22:09 | 3031394 Enslavethechild...
EnslavethechildrenforBen's picture

The GLD will go nowhere, but GOLD will double soon

Mon, 12/03/2012 - 22:03 | 3031378 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I think you forgot a zero.

Tue, 12/04/2012 - 00:03 | 3031640 Catflappo
Catflappo's picture

Sorry - two zeroes in fact.    $1720.00

Actually if JPM stop holding the thing down we may see $1723.00

Mon, 12/03/2012 - 22:09 | 3031393 youngman
youngman's picture

One thing...If the Fed is controlling the bond market...you can bet they are also contolling the PM market....they have the power...and the computers to play it.....what they don´t have is the power over other countries.....and I bet they are buying faster than we know the real metal...and one day the Fed manipulation will come to a head....and there will be no more gold in the Feds control....and the exchanges will fail.....

Mon, 12/03/2012 - 22:29 | 3031440 smlbizman
smlbizman's picture

youngman i have to disagree with your comment....they dont have power over other countries...i bet they do...

Mon, 12/03/2012 - 23:52 | 3031615 jballz
jballz's picture

I am going to refrain from calling you names... But if you think the fed is ben bernanke you are wrong. If you think the people who tell Ben what to do have no power over other countries you are very very wrong.

Gold should very certainly continue going higher though, I don't know if they could stop this or in the long run if they even want to. Recall it was thirty five an ounce for two generations. If the global reset puts it at five thousand and average wage is five thousand a week, the fed and their ilk will not give a shit. You handful of goldbugs will assume your rightful place as insurance salesmen and probably asshole bankers, the rest of the masses will just muddle along at the new rate.

Mon, 12/03/2012 - 22:06 | 3031372 FleaMarketPete
FleaMarketPete's picture

I bet Bernanke will write in his memoirs: "But for Democrats using ZIRP to explode the deficit to win elections, Fed actions would have worked!"

Too bad real life isn't an academic model where you hold all else equal......

 

Mon, 12/03/2012 - 22:02 | 3031373 Confundido
Confundido's picture

But, but Gartman says that the monetary base is not increasing! And, and...if the Fed buys all of it, how are we, the rest of us, be able to get Treasuries for our portfolios??? Why is he competing with us? Is Ben afraid that we will buy all of it and leave nothing to him? We can share...

Mon, 12/03/2012 - 22:02 | 3031374 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bernanke owns all of the stocks and bonds in the market and he prints dollars.  How can we find a fair price when this is the case?  How can he find fair value when those dollars go to private banks like JPM who manipulate other asset prices like gold and silver?

We can't until the ponzi unfolds.  And this is what makes Bernanke King of the Universe.

 

Mon, 12/03/2012 - 22:10 | 3031396 ekm
ekm's picture

You got it.

A small correction. Bernanke is the tool of the king, not the king himself.

Mon, 12/03/2012 - 22:18 | 3031412 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yes, but I wanted to put a face and name on it.  People have a hard time believing that institutions have ill intentions.  Thus the creation of corporations: deflact the shit so the men don't get hung for their wrongs.

Mon, 12/03/2012 - 22:59 | 3031508 BoNeSxxx
BoNeSxxx's picture

The 13 banking families behind the World Bank... Real banks, real private, and real people with real names. Let's start naming the fuckers!

Mon, 12/03/2012 - 23:07 | 3031529 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You start saying the Rotheschildes own the banking cartel and the muppets shut down.  We need to start simply:  the Fed is unconstitutional.  Let's go from there.

Mon, 12/03/2012 - 23:33 | 3031576 tip e. canoe
tip e. canoe's picture

Little by little it found itself, like us, 
caught in the reverberating weft
of After, Before, Yesterday, Meanwhile, Now,
You, Me, Those, the Others, Right and Left.

-- The Golem

Tue, 12/04/2012 - 03:40 | 3031784 Clashfan
Clashfan's picture

Start with Rothschilds.

Tue, 12/04/2012 - 10:04 | 3032161 TruthInSunshine
TruthInSunshine's picture

Is The Financial Times part of the "conspiracy" crowd? Anyone?....Anyone?

I ask because of this article....ya' know....

Rockefellers and Rothschilds unite

By Daniel Schäfer in London | May 29, 2012 11:46 pm

Two of the best-known business dynasties in Europe and the US will come together after Lord Jacob Rothschild’s listed investment trust and Rockefeller Financial Services agreed to form a strategic partnership.

 

RIT Capital Partners is to buy a 37 per cent stake in the Rockefeller’s wealth advisory and asset management group for an undisclosed sum, giving Lord Rothschild’s London-listed trust a much sought-after foothold in the US.

 

The transatlantic union brings together David Rockefeller, 96, and Lord Rothschild, 76 – two family patriarchs whose personal relationship spans five decades.

 

The Rockefeller group traces its roots back to 1882 when John D. Rockefeller established one of the world’s first family offices dedicated to investing his wealth. It has since developed into a provider of wealth and asset management services to other families, foundations and institutions. It is majority-owned by the 19th century oil magnate’s family and has $34bn of assets under administration.

 

The partnership with RIT will focus on setting up investment funds, eyeing joint acquisitions of wealth and asset managers and granting each other non-executive directorships.

UPDATE:

For those who wish to not register with FT in order to read the article, please click here.

Mon, 12/03/2012 - 22:03 | 3031379 max2205
max2205's picture

Buying MBS was supposed to lower spreads on refi s and mortgages.

Guess what the banks pocketed the spread.

Another bailout, lie and failure.

Mon, 12/03/2012 - 22:08 | 3031391 fonzannoon
fonzannoon's picture

that was not an accident.

Mon, 12/03/2012 - 22:05 | 3031384 Confundido
Confundido's picture

Wait until Ben starts buying corporate bonds....from Buffet.

Mon, 12/03/2012 - 22:08 | 3031389 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The PWG is probably already buying HYG.

Mon, 12/03/2012 - 23:16 | 3031392 DavosSherman
DavosSherman's picture

ZzzzzzzzzzzzzzzzMmmmmmmmmmmBaaaaaaaaaaaaaaaaaBBBBWeeeeeeeeee USA.

Gee. Hoooooocudanode?

 

Mon, 12/03/2012 - 22:08 | 3031395 Banksters
Banksters's picture

Since the advent of 0-1 percent fed rates- 2001- Present,  savers have lost between 3-4 trillion dollars.   In other words, WE WORK TO SAVE BANKS.  

 

Mon, 12/03/2012 - 22:25 | 3031428 Ookspay
Ookspay's picture

Debt monetization is just another tax through inflation, Transfer wealth from private to public coffers. It's getting fucking old...

Mon, 12/03/2012 - 22:32 | 3031444 Banksters
Banksters's picture

Yep...  Add in the wonder of Nafta, Cafta, and Gatt= declining wages and jobs.      Just wait until they are told the govt is bankrupt and their pensions, SS, IRA, etc are TOAST.   It is coming...

 

 

Mon, 12/03/2012 - 23:44 | 3031587 caconhma
caconhma's picture

Lenin, from the early days in power, has established a monopoly on the entire financial system of Russia. His first step was to create a landslide of inflation. Becoming the masters of the state, Lenin used the printing press to destroy people's savings, redistributing the wealth from the people pockets to the State and equalizing almost everybody in poverty.

 

In the period from 1921 to 1923, Lenin used the printing presses to increase the number of rubles in circulation by about 20,000 times! In fact, the number of rubles issued/printed every month was so stunning that even Communists themselves were unable to determine the exact amount of the issued money.

 

The resulting inflation raised the overall price index by 160,000 times compared with 1913, it has had the desired effect. In Russia, the middle class has been eliminated.

 

Remember this method. This is the standard Jewish method, they have been using it for hundreds of times in all countries, especially during times of transition when the Jewish mafia was capable of seizing the power and property. This method is used everywhere. And everywhere the corrupt media has told deliberately false stories that the inflation is the result of the supposedly economic decline, economic devastation, errors of the Government, and other like nonsenses. And in the reality, inflation for two reasons: the objective economic problems (the importance of this cause is quite negligible) and the main cause of inflation - this is a deliberate creation of money by the government.

 

Inflation is not the result of economic problems.  The real primary purpose of inflation is the redistribution of power, property and money.

 

To see this, just look at the distribution of power, property and money before and after inflation. The picture is very clear. After the redistribution process has reached the desired level, inflation instantly stops as if by a magic. Inflation, financial bubbles and pyramids, and financial fraud are just disappear.

Tue, 12/04/2012 - 00:34 | 3031672 Central Bankster
Central Bankster's picture

Can you source more information on this time period?

Mon, 12/03/2012 - 23:57 | 3031628 Ookspay
Ookspay's picture

Coming soon indeed... Obama and the entire fedgov knows it, thus NDAA etc; Preparations are being made. The collapse has been war gamed, perfected and will need to be iniated soon. Buckle up.

Mon, 12/03/2012 - 22:21 | 3031402 Samsonov
Samsonov's picture

"Hence no unwind."  Not true: there is an unwind of treasuries occurring right not, but it's the Chinese who are doing it.  Other foreign governments too, but mainly the Chinese.  The Fed will ensure a good price for treasuries until they get their money back.  It's called appeasement.  When the Chinese are satisfied, then it'll hit the fan.  More to come...

Mon, 12/03/2012 - 22:24 | 3031425 fonzannoon
fonzannoon's picture

if the fed was soaking up all the treasuries being dumped by asia etc. wouldn't the balance sheet be blown wide open?

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