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At Least Now It's Obvious Who's In Charge
Submitted by Simon Black of Sovereign Man blog,
It’s clear to everyone by now that the government of the largest country in the world is careening towards default in just over 200 hours.
Yet curiously, even though the US government’s completely ridiculous, untenable fiscal situation is a front page embarrassment for the entire world to see, markets have barely budged.
A few very short-term rates have shot up, but for the most part, stocks are very close to where they were before the shutdown.
The US 10-year yield has actually dropped over the last month, from 2.95% in mid-September to 2.64% today… pretty much where it was a week ago before the shutdown began.
(Bear in mind that the 10-year yield in Italy, Spain, etc. were all over 7% at the most recent peaks of their respective crises…)
Meanwhile, other rates like the 30-year Treasury and 30-year fixed mortgage rates are even a hair lower than they were a week ago.
Where’s the calamity? Where’s the panic?
There’s been almost none.
The conventional wisdom right now is that, since the government shutdown is reducing US GDP growth by approximately 0.1% per week, the Fed is going to keep printing money to the tune of $85 billion per month (or roughly $1 TRILLION annually).
Remember, at the beginning of the global financial crisis, the Fed had less than $500 billion in US Treasury securities and almost zero mortgage backed securities (MBSs).
Today, the Fed owns over $2 trillion of US government debt (a 4-fold increase) and another $1.3 trillion in MBSs.
They’ve completely mopped up every ounce of liquidity. And in doing so, they’ve twisted interest rates and manipulated every asset class from stocks to bonds to real estate to commodities along the way.
Stocks and bonds haven’t moved because nobody cares what’s happening in the US government anymore. And that’s because every serious investor understands that the US government long since abdicated any economic power to the banking sector.
Everyone knows that the Fed is going to keep printing money, ergo they’re going to keep sending markets higher.
The US government and the incompetent elected officials are just giant stooges in this deeply flawed monetary system.
And this debt ceiling charade only proves it. The secret is out there in the open. And now it’s completely obvious who’s really in charge.
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“And as far as the Jews controlling America is concerned, look at it this way. If it isn’t true, you have nothing to worry about. If it is true, you’d better be very nice to us.” – Aaron Breitbart, the Simon Wiesenthal Center, Los Angeles
The Fed was created by Congress and can be uncreated by it. It's chairman and the members of its board of governors are appointed by the President and approved by the Senate.
And the govt has the guns.
You are right Loophole, they do have the guns (and the ammo).
Unfortunately, for the most part, they have no clue, no guts, and are a tad short on integrity. So, for decades they've been offloading their power and responsibility to the Executive, the Courts, and the lobbyists who write the legislation that our critters vote on before they've read it.
This debt ceiling thing only keeps getting pushed and postponed to the future. The fact is, the US is bankrupt. A default now would be much better than a default in the future. Crash this fucker now.
The country had a stealth-mode Coup d'Etat in 2001. Only now are people cluing in, as the 'mask' keeps slipping.
Obama is a Bankster Puppet/Muppet. IMO, things will get worse, before they get better. IF they get better in our lifetimes, that is.
Of those who have "awakened", some will take counter-measures and stay in the US. Others will hedge their bets by moving some of their assets outside the US. A few have/will leave altogether.
No matter the response, the saddest part is that it is even necessary. The Founders must be spinning in their graves. Even, Lincoln, FDR, Ike, Truman, JFK and Reagan, I'll bet.
where am i? the fed did what?
Interesting take on whats going on....seems to me there is a 2nd angle being played...maybe this is it...
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/8_Former_US_Treasury_Official_-_President_To_Seize_Total_Power.html
Wake me when the S&P is at 1300. Otherwise people are expecting a rip-your face off rally once DC stops the show.
Wake me when the S&P is at 100.
Until then, it's all bullshit.
Just saw this little factoid on Business Insider: "The U.S. government takes in $277 billion in tax revenues each month, and spends $452 billion each month,for a monthly deficit of around $175 billion." Well, when you put it that way.... we really are fucked.
http://www.businessinsider.com/treasury-could-issue-super-premium-bonds-2013-10#ixzz2hAf7oFEK
You would think Simon would have better things to do than conveniently cull, plagiarize?, information previously provided by none other than Tyler on Zero Hedge.
Of course it gets the hens a cluckin' while the rooster crows all night.
Nice helicopter graphic. It immediately brought to mind the traditional term for this sort of thing: "Judefetzen"
Who's In Charge and a few of their crimes
God bless the good ole USA!!!