Mike Krieger: "Six Months Left… Can They Do It?"

Tyler Durden's picture

Submitted by Mike Krieger of Libertyblitzkrieg

Six Months Left…Can They Do It?

The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.

- John Kenneth Galbraith

Today what we are doing is modernizing the financial services industry, tearing down those antiquated laws and granting banks significant new authority.

-Bill Clinton at the signing of Gramm-Leach-Bliley Act in 1999 (which ended Glass-Steagall and gave banks full control of the United States of America)

Obama delivered heated rhetoric, but his actions signaled different priorities. Had Obama wanted to strike real fear in the hearts of bankers, he might have appointed former special prosecutor Patrick Fitzgerald or some other fire-breather as his attorney general. Instead, he chose Eric Holder, a former Clinton Justice official who, after a career in government, joined the Washington office of Covington & Burling, a top-tier law firm with an elite white-collar defense unit. The move to Covington, and back to Justice, is an example of Washington’s revolving-door ritual, which, for Holder, has been lucrative–he pulled in $2.1 million as a Covington partner in 2008, and $2.5 million (including deferred compensation) when he left the firm in 2009.

Putting a Covington partner–he spent nearly a decade at the firm–in charge of Justice may have sent a signal to the financial community, whose marquee names are Covington clients. Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Deutsche Bank are among the institutions that pay for Covington’s legal advice, some of it relating to matters before the Department of Justice. But Holder’s was not the only face at Justice familiar to Covington clients. Lanny Breuer, who had co-chaired the white-collar defense unit at Covington with Holder, was chosen to head the criminal division at Obama’s Justice. Two other Covington lawyers followed Holder into top positions, and Holder’s principal deputy, James Cole, was recruited from Bryan Cave LLP, another white-shoe firm with A-list finance clients.

- Peter J. Boyer in his excellent recent article “Why Can’t Obama Bring Wall Street to Justice?”

Six Months Left…Can They Do It?

I have to hand it to the Central Planners.  They are good.  Really, really good.  Of course, they are battling a crippled opponent considering so much of America consists of lobotomized sheeple, but nevertheless to be able to steal so much from many people with such blatant and simplistic methods and not be widely discovered is an act of devious brilliance.  The reason I say this now is because ever since last fall TPTB have changed tactics and totally taken over the markets and with it shoved many people into what is best described as a trance.  The people know something is very wrong.  They know they are getting poorer; that life is getting harder, yet the television and the markets have cloaked a blanket of sedation upon their minds.

Ever since roughly early October 2011 the markets have been fed line after line of carefully crafted bureaucratic garbage couple with tactical market interventions to create reality that they wish to sell.  I remember back to those last months of 2011; what it was like.  It was pure madness.  There would be a crisis and then TPTB would come out with some meeting in the next week or two that would solve everything.  Then the date would come and go and nothing would be solved and they would move the meeting to the following week.  Meeting after meeting that would be “decisive” and “bold” and would save us poor ignorant peasants from the ravages of the mean world by thrusting us into the parental arms of those who know best.  Big government and big financial institutions.  They are your new overlords, get used to it.  Subliminally that has been and continues to be the message that these guys are trying to hammer into your head.  It’s the Stockholm Syndrome.  You are being programmed to love your abuser.

In any event, the point is this. Since around fall of last year, if we tally up the score of government  vs. markets as Angela Merkel so candidly noted in 2010, the government has had seven months of pretty much victory after victory.  At least this is how it appears on the surface.  Under the surface believe me they are not so smug and they know they are losing.  You could see the fear and doubt in The Bernank at his latest press conference.  You can see the reality of the situation as it pops up through to the surface every now and again despite the media blackout of any “unfavorable” news.  These bureaucrats know full well this is all a hologram, an illusion, but it is one they are trying to sustain for as long as possible.  A line my friend said yesterday really sums it up.  So the news headline came out that “Fed Exit Should Start in 6 to 9 Months: Kocherlakota (current President of the Federal Reserve Bank of Minneapolis). ”  My friend’s response was: “is that the Apache to Paraguay midnight print.“

Well the past is the past and the future lies right ahead, so how should we be thinking about things?  The assumption that is being made, and to some extent has to be made, is that if they have been able to pull off this total coup of the financial markets for the past seven months why can’t they keep it going until the election.  Well if we are to assume this, it means we must assume they can pull it off for six more months, which would bring the total to thirteen months.  This would be quite a feat.  They know how difficult it will be to keep things “together” in the markets amid a real world that is falling apart.  This is why the Fed is pretending there will be no more liquidity added to the system.  In their minds, the best strategy is to talk down QE while at the same time attacking commodity markets behind the scenes.  In their mind, this will give them the cover to create trillions more for their banker shareholders.  I have stated that this would be the plan and as we can see in the markets lately, it has been executed to precision.

There is a problem to this strategy; however, and that problem is reality.  The reality is that pretty much all of the engines of global growth in the emerging markets have economies that were similarly fueled by ponzi finance and money creation and they are rolling over hard.  I don’t even need to mention Europe.  Then there is the United States of Propaganda, which has held up relatively well due to the reserve currency status.  That said, relatively wellI does not equal good and recent indicators are pointing to a serious loss in momentum here as every unemployed EBT carrying subprime borrower in these 50 states has just purchased a car they can’t afford with free money from Ally Financial (74% owned by the U.S. government and the former GMAC, or General Motors’ financing arm).

So the fact that pretty much every major economy is rolling over at the moment means one thing.  These guys need to print and print big.  Not that this does anything for the economy, but it usually buys time (until it doesn’t).  If they are going to print and print big they need commodities as low as possible.  This is the reason for the now blatant government/Central Bank sanctioned and coordinated raids on precious metals.  Folks like me that have been aware of what has been happening for years are on the sidelines.  We are already protected from the inevitable and so it makes sense to only buy the raids.  While I have bought physical metals many times in the last couple of years, I have done no major buys since 2009.  That may be about to change.  I still suspect one more major raid attempt may be made.  If so, and silver is knocked down a few dollars from here in a paper smash, I will be standing there ready to go with the biggest buy in years.  I am not the only one.  All of us are thinking the same way.  The pent up demand from folks like me is big.  We are in no rush as we are waiting for the Central Planners to blink and then we will pounce.  When a price is printed that catalyzes huge buying it will set a major floor and we will be headed straight to $2,500 very fast.  It’s possible this has already happened, but I have a suspicion they have another trick up their sleeves.  There are four more FOMC meetings ahead of the elections (June, July, September and October).  I suspect they need to act in June or July.  The huge risk now though is if they do push the metals in a gap lower from here supply will literally disappear.  Let’s see if they dare.

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SilverTree's picture

JPM did great today!

WAMO556's picture

TIMMY!!! Timmy timmy TIMMy - T T T T T I I I I M M M M Y Y Y Y Y

SilverTree's picture

One of the most challenging Rock Band songs.

Xkwisetly Paneful's picture

Medicated sheeple?

These are  cruise shipmates.

They fled from equities into metals long ago.

 needed an oil check at the garage today, it befuddled me when the guy said 10w30 or some au or ag?

Pladizow's picture

Easy: They'll simply delay elections indefinitely!

What would justify this?

Here's the sheeple: http://www.break.com/index/hunter-shoots-mountain-goat-from-943-yards-2325952

DosZap's picture


Lest you forget SHEEP can do 943 also,and much farther,...........................matter of fact, that was a Sheeple making the shot.

CrazyCooter's picture

No QE until the RNC concludes. QE prior to the RNC could very well put Paul on the republican ticket. It is already going to be an interesting RNC and a massive QE right before that convention it putting a lot of fuel on the fire ... the fire of liberty.

My personal experience with conservatives at the Alaska state convention is that the "common delegates" agreed on pretty much everything. Our platform for our committee went from ZERO constitutional references to FOUR. And that is one committee. Dissenting votes on these platform changes? Almost none.

If this holds true at the national level, in any way, then conservatives may *reject* Romney and embrace Paul, even though they may not have gone to the convention as Paul supporters.

Just my two cents ...



Silver Bully's picture

As much as one may hope this will happen, it will not. The Fed could print 20 trillion dollars in QE, and Paul would not get elected. The people already know who they are voting for, and it will not be Paul . . . because he proposes sanity.

Too many want their main course of social security, unemployment, food stamps, and disability with a helping of Defense Spending (and they're pounding the Supersize Me button so hard it is cracking). This country is getting the president it asked for. This country is getting the president it deserves. Paul will not be that man, because too many DEMAND their freebies.

Romney or Obama, pick your poison, you're getting one of the two heads of the hydra either way.

headless blogger's picture

No. I think they want jobs, real jobs besides waiting on assholes at a check out line

The Alarmist's picture

I don't want a job ... I want $10 million, and I don't want to do anything for except watch TV and eat tacos. BTW, it would be nice if it retained at least it current puchasing power. Am I asking for too much here?

Jack Napier's picture

@Cooter, once Romney is a lock for the Replicants it doesn't matter when they do QE3. Either candidate will be on Goldman's teet. If I were them I would do it sooner than later, wipe out all you bears expecting a repeat of 2008 and laugh as they steal the rest of the nation's wealth.

Buy gold and silver NOW bitchez!

Umh's picture

Good, fast & cheap. Pick two from the list.

Xkwisetly Paneful's picture

Mean like doing the same thing on an assembly line 100 times a day for 50years?

The real jobs!


blunderdog's picture

A lot of supermonkeys are into that, actually, since you ask.

fockewulf190's picture

I want me sum Obama bucks! Blah....

SPAREPARTS's picture

A guy can dream, RP could be a bloody miricle

Fukushima Sam's picture

That fucker, Clinton.  No wonder he and Hillary moved to NY; there they were taken care of.

CompassionateFascist's picture

Yes, organized Jewry always takes good care of the shabbatz goyim. Until they are no longer useful.

morkov's picture


The Alarmist's picture

Karl, Groucho, or Richard?

Oracle of Kypseli's picture

Very easy to bring about the bottom. Call your broker or go online and liquidate everything including shorts and options. The market, with very liitle volume, will do the rest. I did this morning the small % of papergoods. the physical stays put.

narnia's picture

a run of the mill 20-25% bank run will do the trick.

CompassionateFascist's picture

IranWar will do the trick. Due c. July-August. 90 days to economic collapse and Civil War. Those who already have silver better hedge with lead.

DosZap's picture

If they are going to print and print big they need commodities as low as possible.  This is the reason for the now blatant government/Central Bank sanctioned and coordinated raids on precious metals

Self congrats.............................just what I posted here yesterday.

They think everyone is stupid.

Well, MANY are not, and ton reside here.Knock it down some more, and we will pick the bones off the PM markets carcass just like Andean Buzzards.

BRING IT................................... DOUBLE.


Pladizow's picture

You do well at patting yourself on the back!

I'm sure no one thought of that before!


DosZap's picture


Thanks, it was a joke.


The sheeple are all well medicated....can't see that changing anytime soon. 

Ruffcut's picture

Six months til what? They are the most creative criminals on the planet. They'll come up with something that is just a great as this has been.

FlyoverCountrySchmuck's picture

Six months until ELECTION DAY...

The PTB nust keep the markets propped, no matter the cost to the taxpayer. Obama will have much more flexibility after the Election. ALL HAIL THE MESSIAH OBAMA!

(or else the IRS will pay you a vist. You aren't a RASSIS!, are you?)

XitSam's picture

The only way the election will matter is if Ron Paul is the nominee.  So if they can hold on for 3 months until Romney is nominated ...

SilverTree's picture

Cut power, food, cable tv, internet or medications and the like; we will have some pissed off people.

SPAREPARTS's picture

Stop buying, pick a day but on very short notice every month, dont buy a thing, nothing and dont pay a bill, act like were mad, flex some other wise they will beat you up

PR Guy's picture

Jeez yeah. I'm a howler when I'm not taking my medication :-)


Loco Vida's picture

if they cant afford groceries and cable.......watch how fast it changes

takes awhile to boil a frog properly :)

THX 1178's picture

And when the frog dies, the death itself comes instantaneously.

Spacemoose's picture

maybe its a good thing that they are medicated.  if they thought like we (ZH'rs) think, the supermarket shelves would be emptied within three days. every month that goes by with the illusion of normalcy, i am better prepared to deal with what is inevitably coming. (on the other hand, every month that goes by, the more serious the eventual "splatter" when it hits the fan). 

ClassicalLib17's picture

I'm stocking up on Beans and Booze, Bitchezz   I'll hunt for my meat on the street with my new zombie gun .  Arms and legs only,  I am averse to the gutting process. 

Hohum's picture

I think they can..I think they can..I know they can..oh shit!



Every President through modern history has spent money like their hair was on fire. No exceptions. And, Congress approved an endless litany of unbalanced deficit spending budgets year after year. They didn't mind creating slavery for the tax payer, and printing free money compliments of the Fed for their banker / Wall Street buddies to bail them out of the mess created by the miracles of deregulation. lobbying, and corruption.

All accomplished regardless of which party or President was in charge. They are all cut from the same block of cheese, and they are all culpable.

 I just hope we survive the end result of having criminals running the country for decades. Put your money in something tangible, because the dollar is going to continue to tank, resulting in way more inflation. And, banks may not survive the firestorm of margin lending, credit default swaps, and derivatives created that exceed 250 quadrillion dollars in total  - more money than the gross domestic product of the entire planet for decades.  

The Federal Reserve is neither Federal nor a "Reserve". This private bank run by the "Bank of England" has been stripping the US of its assets since the days of Andrew Jackson.  If the $16,000,000,000,000.00 given away secretly, since 2007, to the member banks isn't reason enough to overhaul our entire government financial system then our country is doomed to financial failure.

You won't read this in the mainstream media....but it may emerge in the coming elections. Read about the first ever audit of the Fed and understand why we are in such trouble. 


Marco's picture

Stripping the country of assets? Since Nixon really set the ball rolling on unconstrained credit creation the US has gained 10 trillion dollar worth of assets for worthless paper.

Of course there is no such thing as free lunch, they're just making junkies of us all before they pull the rug and tell us we should start paying off our debts and welcome them as our new feudal overlords ... but in the meantime the asset stream is going into the US, not out of.

Now if you said they had been stripping the country of productive capital, yeah ... true enough.

francis_sawyer's picture

The most powerful drug in the world is ink...

Marco's picture

Only because for the moment ink buys oil.

SheepDog-One's picture

The central planners are really, really, good at what exactly....fooling the 401K Bathrobe Brigade muppets? Big deal. In the real world, everyone ese is OUT.

Waterfallsparkles's picture

What they do is make people think that they are wrong in their assumptions.  How is it that I think the economy is in the tank when the Stock Market keeps going up and all of the positive talk on TV.

They make you think that even though your situation is falling off the cliff that other people are doing ok.  So you question your assumptions.

GeorgeHayduke's picture


You wrote this while I was typing my rant below so I missed it. However, it's an excellent observation.

Waterfallsparkles's picture

The unintended consequence of this is that so many people start to think the are worthless.  As everyone else is doing well but they are not.  Maybe that is why so many are dropping out of the employment market.  All of the positive hipe on TV makes them feel that they do not have a chance and they are worthless.  So they do not even try to get a Job.

akak's picture

The unfortunate fact is that, for all practical purposes, many, many people in Western societies today ARE worthless, using almost any criteria one cares to apply to them.  Whether they must and will remain worthless (financially, socially, emotionally, professionally, employably) is an open question.

Marco's picture

Economically we will all become worthless sooner or later ... automation gives no quarter.

Bob's picture

Or the rights of Capital, to whom ownership of the "means of production" accrues, will be radically changed. 

Too bad Marx said it first, but has since become so horrifically politicized/propagandized that we are unable to really examine and meaningfully solve the problem that lies so indelibly before us.