Bill Buckler: "No Freedom - No Money - No Markets"

Tyler Durden's picture

From Bill Buckler, author of The Privateer

No Freedom - No Money - No Markets

The Global Financial Crisis (GFC) became an unmistakable reality in July 2007 when Bear Stearns admitted that two of its sub prime hedge funds had lost nearly all of their value because of the rapid decline in the market for sub prime mortgages. At the end of June 2007, Treasury Secretary Paulson had this to say about the problem: “We have had a major housing correction in this country. I do believe we are at or near the bottom.” When asked specifically about Bear Stearns, he went on to say that any losses had been “largely contained” and anyway, “It doesn’t pose a risk to the economy overall.”

When Bear Stearns hit the wall, there was no talk of a federal government bailout because of what Mr Paulson had stated in public. The other US banks refused to lend because Bear Stearns had refused to participate in the bailout of LTCM in 1998. Bear Stearns was left with two options. It could sell the “assets” in the hedge funds or it could bail them out with its own capital. For the one and only time in the GFC so far, a money centre bank tried to sell Collateralised Debt Obligations (CDOs) on an actual market. That attempt lasted hours. When the auction was closed, the bids were coming in at 30 percent of the face value of the paper. The jig was up, the valuation of the collateral underpinning the entire banking system was revealed as fictitious. Not much more than a year later, that collateral was transferred from the US banking SYSTEM to the Fed, which has maintained its fictitious “value” ever since. Europe dragged its feet, but at the end of 2011 it did the same thing in regard to its own banks.

Ever since that episode of mid 2007, the “market” for pretty well every kind of debt-based financial “asset” there is - up to and including the sovereign debt of governments - has been progressively falsified by governments and their “independent” central banks. Mr Bernanke has now been quoted as describing this procedure as “a work in progress”. It is indeed, and by this time its true nature should be clear to almost everyone. But still Mr Bernanke and all his counterparts in the seats of power all over the world bleat about a “recovery” which is just over an ever receding horizon. What the world needs to “recover” from is the increasingly desperate machinations of governments desperate to retain their power. What it needs to recover is freedom - money - and markets.

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CH1's picture

Buckler rocks.

vast-dom's picture

Fake it till you make it -- or -- in this case: fake it till you collapse.


it's funny how banking institutions are like mentally ill people -- you get the nice charming rep up front with a great narrative on how it's all so sustainable and how one can take advantage of such a great relationship,and as soon as you're in the BPD insanity is cranked on high with excuses, shit returns that ultimately are net loses in varying degrees-- and now these banks are about to lose their reps more at façades, and not by choice, as when Citi comes up as the most (financially or was that sociopathically) sound bank you know the underlying caustic disease of shadow books and ill fundamentals will turn on you -- so get the fuck out asap and turn around and short the diseased because invariably they will crash and crash worse than in 2008. But I'm a wounded dreamer and I have a clear vision: SP 800. And hey it's nothing personal......

Manthong's picture

There once was a bank named the Fed
Where debts worth less squat could be shed
Before your zombie bank
                    Has collateral tank
                    They’ll walk dead with a spread from the Fed.

Pegasus Muse's picture

OT.  Runs under 10 minutes.  If you agree spread the word. 



Impeach Obama 2012! Join The National Campaign!


Popo's picture

I like Bill Buckler, but I'm not sure what to make of the above paragraph.   It seems like an excellent pre-amble to an article...and then it ends.

Is that it?  Thanks Bill, for re-iterating the general theme of Zero Hedge to the already well-versed readership.   Next time, spend more than 5 minutes writing an introductory paragraph and post an article.

Otherwise it *might* look like you're just trying to sell newsletter subscriptions...



Peter Pan's picture

Buckler simply brings us to the edge of the precipice without actually pushing us over. I think he is trying to make us think about the basic proposition that government has become the custodian of all rotten bank balance sheets.

Conclusion? Buy gold and silver.

Popo's picture

Yes, that is precisely what he is saying.

This would have been cutting edge in early 2009.  I hope his newsletter subscribers get more than this kind of obviousness.

AldousHuxley's picture

banking elite's only hope is support from police and military.

1) police are like dumb dogs and will be easily controlled with boosted pensions

2) military can't be controlled with pensions alone because the guilt of killing innocents far outweights few dollars in retirement.


Stuff you will never see in the media:


the ruling class care only about expanding their control, but their power lies in only in their ability to sell the working class that war and dying in it is in America's best interest for all instead of theirs alone. No son or daughter of the elite actually does the killing.

LowProfile's picture


1) police are like dumb dogs and will be easily controlled with boosted pensions

Police answer to the local body politic and have to live in their communities.

Checking your videos, maybe you're not a complete douchenozze after all.

Manthong's picture

"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"

 “I shrink from pain and filth and vermin and foul air, like any other man of refinement; also, I freely admit, when I see a line of a hundred policeman with drawn revolvers flung across a street to keep anyone from coming onto private property to hear my feeble voice, I am somewhat disturbed in my nerves. But I have a conscience and a religious faith, and I know that our liberties were not won without suffering, and may be lost again through our cowardice. I intend to do my duty to my country.”

-Upton Sinclair

AldousHuxley's picture

that's why only retired Philadelphia police captains like Ray Lewis can come out to OWS and say

"cops are working for the top 1% and they don't even realize it"


"Corporate America Is Using the Police Departments As Hired Thugs"


wonder why they cut teachers pensions but never cut police pensions?

StychoKiller's picture

Teachers have only themselves to blame.  By NOT supporting Concealed-carry, everyone can infer that they don't own a gun and are therefore not a threat when it comes to a firefight.

Police, on the other hand...

AldousHuxley's picture

marine VS NYPD


militia VS police


why we fight


Karen U. Kwiatkowski retired U.S. Air Force Lieutenant Colonel, not sending her own sons into military

If you join the military now, you are NOT defending United States of America

LawsofPhysics's picture

"No son or daughter of the elite actually does the dying"


Fixed it for you, many of them assume leadership roles (or babysit equipment in isolated locations) when they do find themselves in the military, been there, done that.

AldousHuxley's picture

good point.

they do their honorary "service" so that they can milk their "service" to run for congress, but they aren't getting on the front lines.


no diferent than sons of executives "working" or Ann Romney sing 5 household slaves to help her "raise a family"

RockyRacoon's picture

Popo, I am a Privateer subscriber and have been since the late 1990s.  The entire bi-weekly is a 12 page publication.  The morsel you read above is just a lead-in.   Unfortunately, the good Captain takes a position of not giving away too much of the farm.   It is due to The Privateer that I have been able to maintain a position in gold all these years without being scared off or diverted by talking-heads.  Bill Buckler does indeed rock.

rbg81's picture

And not just custodian of bank balance sheets, but also guarantor for things like underfunded pensions, student and housing loans.  The full faith and credit of the US is predicated on a printing press that has infinite output & will never stop running.  It has to absolve everyone/everything of their financial sins--no matter how haneous or rotten.  In short, the Federal Reseve IS the second coming of Christ.  Don't forget to say your Hail Mary's.

Amish Hacker's picture

I think you're being too hard on Bill Buckler, Popo. His articles ARE short and quick-hitting, but his points are thoughtful and well-supported. Check out this ZH story from last November:  A pretty good summary of where we are, imo, in spite of its brevity.

As for the The Privateer, I'm sure Buckler would like to sell as many subscriptions as he can, but I don't think that's his main motivation. His site is generous when it comes to providing free information to non-subscribers, and a lot of effort goes into building community. Let's be kind to our brother Down Under!

RockyRacoon's picture

It appears that the current Privateer snippets are somewhat sanctioned by Buckler, whereas, there was a real ass-reaming a few months ago when articles were posted without the Captain's specific okay.   I like seeing these, but I like getting the full 12 pages fortnightly!

Neo1's picture

A Banksters defeatism nightmare, Being forced to Return to Real Money=United States Note=Lawful Money. The real reason you pay an income tax, is for the privilege of using a private currency. Also known As A:  Federal Reserve Note, Demand from your bank or brokerage, lawful money and the tax goes away, with a tax exemption on lawful money, all of your money is yours. Use the Remedy within the Federal Reserve Act.  Stop being a Slave!!!!!! 

Tax Exemption:  Web search these four different phrases: Redeemed in Lawful Money  or  United States Note  or Redeemed in Lawful Money Pursuant to Title 12 USC §411  or deposited for credit on account or exchanged for non-negotiable federal reserve notes of face value  

FrankDrakman's picture

I still haven't forgiven him for costing the Sox the series in eighty and ought six.

breezer1's picture

All assets as valued in paper and owned by the paper maker.

cossack55's picture

OMG!!!! Its true then.  Shit DOES stink!!!!   Alert the media!!!!

LawsofPhysics's picture

More paper-pushers that stink of fear.  Citing the lack of "freedom" and too much "regulation".

Fuck you, prosecute the god damn FRAUD already.  The only way to "win" when you know the game is rigged, is to simply not play.

That is where we have been for quite some time.  In fact, no matter what profession you are in, it is in your best interest to make sure that you call your colleagues out when they commited fraud.  If you don't, eventually no one has any sort of faith/trust in any of you.  I think it is safe to say that fraud and corruption has become rampant in a number of fields.

The financial sector will learn once again that you can have no regulations or no transparency, but you have to have one or the other, period.

CH1's picture

Let's see if I have this right...

The paper markets are a rigged game, regulated by multiple agents of the state. This condition has existed for decades.

But... we're supposed to wait for still other agents of the state to save us from the previous agents of the state? And we should further expect the second group of state agents to punish the previous agents?

The state maintains the crime we hate, but we are to wait for the state to save us anyway. Hell of a plan.

ella's picture

Agreed!  I think that RICO should be amended to cover financial fraud including seizing all assets of the person convicted of fraud and all of the assets of their business entities. 

bank guy in Brussels's picture

RICO in America? Ha!

You forgot the crooked US courts and the bribed US judges.

The so-called 'racketeering' RICO cases go nowhere, unless the government gangsters have approved the target in advance.

kraschenbern's picture

To LawsofPhysics:

The three laws of thermodynamics apply here:

1.  You can't win.

2.  You can't break even.

3.  You can't get out of the game.

LawsofPhysics's picture

Nicely played, and I agree. Perhaps why I stayed in Agriculture.  Something about always wanting to eat, no matter what.

JLee2027's picture

banks refused to lend because Bear Stearns had refused to participate in the bailout of LTCM in 1998.

Banks holding a 10 year grudge against other banks. Who'd have thunk it?

earleflorida's picture

seems jpmc wasn't holding a grudge

Island_Dweller's picture

The bankers apparently got oonfused.  They thought that they bailed out LTCM to help LCTM and not themselves.  If they had realized that, maybe they would have bailed out Lehman regardless.

Not Too Important's picture

Now, the IRS has the authority to impose tax liens on people based on the possibility of their profits from illegal activities, whether they engage in illegal activities or not:

For foreign readers: Coming to a theatre near you.

LawsofPhysics's picture

LOL!!!  Yeah, good luck with that.  Idiocracy at it's finest.

CH1's picture

No, not idiocy... thuggery.

The guys who get destroyed won't pass it off tritely.

Everybodys All American's picture

the more things change the more they stay the same.

deepsouthdoug's picture

Freedom's just another word

for nothing left to lose...............

and that's all the central bankers left me

UP4Liberty's picture

There are no markets - only interventions.  End of story.

The Alarmist's picture

Let's see ... Paulson, former co-CEO of Goldman Sachs and a continuing major shareholder of that firm, allows two of his former firm's most aggressive competitors to fail before deciding that the rest of the cartel was too big to fail.

Yeah, he really did think we are that stupid or disinterested, or both.

BoNeSxxx's picture

...And he was right (present company excluded, of course)

Renfield's picture

I marked you up because I think generally you're right, but to be fair, I recall massive popular protest against the government bankster bailouts in 2008.

The bailouts did not prove the stupidity of the sheep so much as they proved that The People really have no power at all, and very little influence even, over their 'elected' officials. Or maybe I should say, The People may have some influence sometimes, but the Banksters have all the influence whenever they want it.

2008 didn't prove sheep stupidity as it proved that the US system is not a democracy so much as an oligarchy. It showed that elections are futile.

BoNeSxxx's picture


However one good turn deserves another.  The French Revolution was a massive popular protest... what happened in 2008, as far as protests go, was a tempest in a teapot.

geekgrrl's picture

The difference was the French people were starving, and had been for a year before the revolution. Take away the EBT cards and my prediction would be 30 days and there would be widespread riots, and I am being very conservative in this estimate.

geekgrrl's picture

Paulson was a Round Table boy acting of behalf of the inner circle, that's all. They make the decisions; the people no longer make any important decisions about anything and haven't for a long time. I remember a huge public outcry, to the point where Congress voted against the bailouts before they voted for them (After the bankers put the gun to Congress' head).

"Dr. Carroll Quigley is best known as Bill Clinton's professor of history at the Foreign Service School of Georgetown University. He also taught at Princeton and at Harvard. His 1300 page book "Tragedy and Hope" is unique among other history books in its exposure of the role of International Banking cabal behind-the-scenes in world affairs."

G. Edward Griffin's The Quigley Formula

Tragedy and Hope

km4's picture

Romney and Obama Agree: Power Is Good - Reason Magazine

And the winner will be: Corporatism. (That is, the use of government force primarily to benefit the well-connected business elite.) The loser? The people, who would benefit from freedom and freed markets—markets void of privileges and arbitrary decrees.

No Fundamental Difference

OBAMNEY 2012 - this pict tells the story  :D 

The Alarmist's picture

So let me see if I have this right: There is no difference between an affirmative-action-admission-to-Harvard marxist who is alleged to have been born in Kenya and could possibly be counted as a Muslim, and a Mexican-born Mormon legacy-admission-to-Harvard country club crony capitalist.

CH1's picture

Differences, yes. Important differences, no.

The only question is which one gets to play sock puppet next year.

I no longer care.

francis_sawyer's picture

Might as well just merge onto the same POTUS/VP ticket & dispense with all the rest... It'd be a bankers wet dream...

The Alarmist's picture

Perhaps, but wouldn't it be nice if just one of them was unambiguously American and representative of the Average Joe or Jane in Flyover country ... Heartland, not Homeland!