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Guest Post: Too Much Of A Good Thing Is Not A Good Thing

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Fri, 08/12/2011 - 21:48 | 1556196 km4
km4's picture

terrific post and agree with conclusion

Fri, 08/12/2011 - 22:04 | 1556230 FEDbuster
Sat, 08/13/2011 - 00:02 | 1556445 malusDiaz
malusDiaz's picture

Winter is coming

Sat, 08/13/2011 - 00:19 | 1556463 caerus
caerus's picture

and with the winter come clouds...and patience...and scorn...

Sat, 08/13/2011 - 03:11 | 1556617 Michael
Michael's picture

You would think the Republicans at the debate, were running for President of Israel.
Except for Dr Ron Paul.

Dr. Paul mentioned at the debates last night Israel had nuclear weapons.

And today, in an interview, Ron Paul said; "well, Israel has 300 of them".

Starting at about 3:00 in this video of the interview, you can see and hear those words said by Dr Paul himself.

This is an amazing video.

Ron Paul Trying To Break 100 Years Of Brainwashing 

http://www.youtube.com/watch?v=RnRqm6dvNr0&feature=player_embedded#at=126 

Sat, 08/13/2011 - 04:44 | 1556697 Pay Day Today
Pay Day Today's picture

I've always been so-so about RP, having assumed that he was just a plant by the establishment to provide a distraction and vain hope to the people who "get it". But now he has my undivided attention.

Sat, 08/13/2011 - 14:42 | 1557357 Prometheus418
Prometheus418's picture

I've been a fan of Dr. Paul for years- but now I'd rather he retired than gain the presidency.  I'd fear for his safety if he was actually elected, and odds are he'd be saddled with all the blame for the mess we're in.    

Better to just have another useless clod to accept the punishment for this trainwreck.

Sat, 08/13/2011 - 17:51 | 1557562 FEDbuster
FEDbuster's picture

I will vote for Ron Paul in the primary.  If he doesn't win, Obama will get my vote in the fall.

Restore the Republic, RON PAUL 2012

or

Hasten the Collapse, OBAMA 2012

Sat, 08/13/2011 - 10:24 | 1556972 Heroic Couplet
Heroic Couplet's picture

I thought Ron Paul was going to grill Ben Bernanke in front of Congress. Did Ron Paul decide to punt to Dylan Ratigan? Do we have to wait until Alan Grayson runs again and gets elected?

Sat, 08/13/2011 - 15:10 | 1557401 Nathan Muir
Nathan Muir's picture

Ron Paul has grilled Bernanke, and every other FED chairman in the last 30 years.  His consistency and voting record is unparalleled in the US Congress, perhaps in US history.  Ron Paul has done more for the cause of individual liberty and freedom than any other person I can think of.  I volunteered in his 2008 campaign and plan on helping out next year.  Instead of bitching why don't you pitch in for the cause?  Ultimately, it is only the people, the individuals, which can restore our country to what it was intended to be.

Sat, 08/13/2011 - 18:31 | 1557636 Wild tree
Wild tree's picture

NM,

But, but, but how about American Idol, and the great job the MSM does on letting us know how peachy-keen things are right now? I'm content to let the "politicians" take care of us, as long as the checks don't stop coming. Now where is that dang remote..... Sarc off

"Ultimately, it is only the people, the individuals, which can restore our country to what it was intended to be." Yes Nathan, that is true. Sadly, most of those that could be counted on to do the right thing are dying off faster than they are being replaced. Individual self-sufficiency and personal responsibility seem to have "Gone with the Wind". I too have volunteered in trying to make things right, but the need is so great and the volunteers carrying the water seem to be old, and few. Keep up the good fight Nathan, in the hope that it does not become literal. I don't see it any other way unfortunately; the fight can't help but get real when the dollar defaults. We are seeing a tame preview in Great Britain right now, and that is only over entitlements. Imagine the color when it is over lack of food.

Sat, 08/13/2011 - 08:53 | 1556901 Long-John-Silver
Long-John-Silver's picture

2011 Seasons of Change: Arab Spring, Euro Summer, American Fall, Winter Reset.

Sat, 08/13/2011 - 04:45 | 1556698 Escapeclaws
Escapeclaws's picture

You make me want to barf!

Fri, 08/12/2011 - 21:52 | 1556200 Cult_of_Reason
Cult_of_Reason's picture

A Six-Point Plan for Ending the Debt Crisis

http://www.spiegel.de/international/europe/0,1518,779984,00.html

 

Also FoxNews has been reporting tonight about a coordinating action in works between the Fed and ECB that will put an end to the EU crisis and guarantee a soft landing in the US that Clinton incidentally leaked to them -- US will help to bailout EU banks. What's up with that?

Fri, 08/12/2011 - 21:56 | 1556213 Ahmeexnal
Ahmeexnal's picture

World's Taxpayers to bailout EU banks.

"KING EURO"

Fri, 08/12/2011 - 22:03 | 1556223 Cult_of_Reason
Cult_of_Reason's picture

FoxNews (Nightly Scoreboard) says, US taxpayers (Bernanke using taxpayer money) will help to bailout/backstop EU banks.

They said, it was the reason for the stock market being up today.

Sat, 08/13/2011 - 02:35 | 1556571 snowball777
snowball777's picture

And you believed them? Buahhahaahahaha!

Sat, 08/13/2011 - 06:45 | 1556847 Smiddywesson
Smiddywesson's picture

But don't we already know that the Fed has already done exactly that with $16 trillion, much of it going to foreign banks?  Why should we expect any different behavior in the future?

If any lesson should be clear by now, they will spend anything to kick the can.  No costs are too high.

The only thing the centrral banks are doing that doesn't involve kicking the can is amassing gold.  Hmmm?

Sat, 08/13/2011 - 10:58 | 1557006 snowball777
snowball777's picture

Not to mention the liquidity swaps, but it was the "market going up" causal ponderance that really made the coffee fly out my nose.

I'm not sure on the "return to the gold standard" thesis (I've read your other posts to that effect)...most of them already have plenty of gold (in theory, at least) and while it may be leased far and wide, don't they only need to continue their debasement in order to achieve the goals you've stated for them? Why the need to accumulate more? If its proper gearing to the multi-trillion dollar economy isn't that just a matter of picking a ridiculously high number per toz?

Sat, 08/13/2011 - 15:12 | 1557399 Pegasus Muse
Pegasus Muse's picture

"FoxNews (Nightly Scoreboard) says, US taxpayers (Bernanke using taxpayer money) will help to bailout/backstop EU banks."

So how is this any different than the under-the-table money printing & bailouts the Fed's been doing all along? 

Senator Bernie Sanders:

================= 

The Fed Audit

 

Share This

July 21, 2011

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse.  In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.

For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed.  Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.

In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds.  One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.

To Sanders, the conclusion is simple. "No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed's board of directors or be employed by the Fed," he said.

The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.

The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo.  The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.

A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."

To read the GAO report, click here.

 http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

 

Fri, 08/12/2011 - 22:35 | 1556286 Cult_of_Reason
Cult_of_Reason's picture

Official US Bailout of European Banks in the Works

Gasparino on Fox Business reports Obama, Treasury and the US government is discussing how to backstop the European banks. That means the US taxpayer guarantees Euro debt. Gasparino says they will be working hard all weekend to get it done.

http://www.investorvillage.com/smbd.asp?mb=144&mn=80033&pt=msg&mid=10836603

Fri, 08/12/2011 - 22:51 | 1556302 Caviar Emptor
Caviar Emptor's picture

Told ya 2 yrs ago: Ben will bail the world. It's inevitable. And (best of all) it won't stop. Because a pail with a hundred holes in it needs constant refilling. He'll have to start all over again soon enough. 

Sat, 08/13/2011 - 00:00 | 1556433 Cult_of_Reason
Cult_of_Reason's picture

If ECB and the Fed simultaneously monetize (print money) a trillion of debt each (coordinated QE), EUR/USD cross will not change (though gold will go parabolic from two trillion of fiat injected into the system).

Sat, 08/13/2011 - 05:58 | 1556783 CosmicBuddha
CosmicBuddha's picture

Gold is going to $56,000-$60,000 an ounce by the end of this fiat bond bubble nonsense.

Sat, 08/13/2011 - 08:57 | 1556902 Long-John-Silver
Long-John-Silver's picture

This will not be the first time Gold has reached the high plateaus.

Gold Mark in Paper Marks.

Sat, 08/13/2011 - 01:08 | 1556509 macholatte
macholatte's picture

Didn't we read right here on ZH that nearly all of QE2 went to bail out the EU, or did I miss something?

So, if that is correct, what's the big surprise? Isn't the American tax payer the sucker of first resort, the chump who gets his pocket picked, insulted, spit on and still comes back for more?

Sat, 08/13/2011 - 06:12 | 1556788 Moe Howard
Moe Howard's picture

The European Banksters own us. Benjamin Shalom Bernake is their agent. We are a cow to be milked. AIG was used as a funnel for billions of dollars of taxpayer cash to Europe. We the voters control nothing, as seen in the 2010 election, which has had zero effect on economic policy.

They will drain us dry and blame us for the problem. That's how these parasites have worked for hundreds of years. Name one Rothschild who was in a death camp in WWII.

Sat, 08/13/2011 - 23:52 | 1558280 CompassionateFascist
CompassionateFascist's picture

Rumor has it that one of the younger RedShields had to hide out in a haystack in France for awhile. Not surprising that Nazis went EZ on Rothschilds and other rich, Zionist collaborators; 3rd Reich got plenty of finance via Rothschild cognate Mantagu Norman at BOE during 1930s. South African/Brit Zionists also bought Churchill during same timeframe, and there's your World War.

Sat, 08/13/2011 - 00:01 | 1556442 Herbert Philbrick
Herbert Philbrick's picture

Well, if it's on Fox News and reported by Gasparino, it must be true.  

Sat, 08/13/2011 - 03:31 | 1556636 kito
kito's picture

tyler woudve covered something that big, dont know if we should make anything of it.

Sat, 08/13/2011 - 06:48 | 1556849 Smiddywesson
Smiddywesson's picture

Why not?  We can't even guarantee to pay our own debt, why not their's too?  

In fact, I can guarantee we can't pay our debt.  So it doesn't matter who we backstop.  Hell, let's backstop Japan's debts, they could use some assistance.

Fri, 08/12/2011 - 23:14 | 1556353 ViewfromUnderth...
ViewfromUndertheBridge's picture

Did you read those six points?

From (aptly titled) No. 2: " euro-zone officials could even replace those of individual nations to perform duties such as collecting taxes and implementing plans to cut costs and privatize state assets"

They tried a similar arrangement in 1939 (though they called it a different name), it ultimately met with some resistance and had considerable human and social costs.

Despite my more optimistic contribution below, if this is truly the state of their thinking this thing is fucking over.

Fri, 08/12/2011 - 23:49 | 1556419 Cult_of_Reason
Cult_of_Reason's picture

It is surreal. Basically, this German economist proposes, we will lend you more money so you can pay interest on your debt to our bankers, but in return you will allow us to occupy your country.

It just shows how f*cked up this European experiment is.

Fri, 08/12/2011 - 23:59 | 1556436 Spitzer
Spitzer's picture

If you  think the ECB is fcuked up more then the Treserve then you know nothing about central banking.

Sat, 08/13/2011 - 00:13 | 1556458 wisefool
wisefool's picture

+1 Dammned straight. And those who dont realize that ... as much as the EuroTrash are playing out the doughboys with PhDs from universities that were founded by the crown .. better understand that Sun Tzu and Ghengis Khan invented the fork, sold it to the Europeans, and now laugh at them while they eat.

Sat, 08/13/2011 - 06:16 | 1556797 Moe Howard
Moe Howard's picture

Yes, having your mouth in a bowl and using two sticks as shovels is superior. What fools the Europeans are. Now get back in the rice paddy, fool.

Sat, 08/13/2011 - 06:20 | 1556821 Pay Day Today
Pay Day Today's picture

East Asia will have the last laugh.

They've always understood Westerners as mercantile barbarians after all is said and done.

Sat, 08/13/2011 - 17:54 | 1557568 ping
ping's picture

That's great, honey. Now why don't you fish a dollar from your purse and go get me a sandwich?

Sat, 08/13/2011 - 06:52 | 1556850 Smiddywesson
Smiddywesson's picture

German payback for French occupation of the Rhineland.  We are stuck in replay mode.

Sat, 08/13/2011 - 01:38 | 1556522 Mactheknife
Mactheknife's picture

>What's up with that?  It's like this...most Euro banks are owned or controlled in some part by the Rothchild cartel...that's right, decendents and partners of the original father and sons.  They also own a big part of the JP Morgue (they helped JP get his start) which in turn owns the Federal Reserve and they bought out the rest of our government a long time ago. Get it? That's not tin foil stuff, that's history. They would just rather you didn't remember that.

Sat, 08/13/2011 - 02:42 | 1556580 Escapeclaws
Escapeclaws's picture

Horrible plan. He wants to make those EU politicians have even more power. We need to take power away from politicians. I'm convinced that politicians are the worst sort of people. How did we get rooked into trusting them with our welfare?

Down with politicians--the scum of the earth!

Sat, 08/13/2011 - 09:07 | 1556910 slicktroutman
slicktroutman's picture

Consider most politicians are lawyers........scum becomes scum....

Sat, 08/13/2011 - 06:17 | 1556801 Lord Welligton
Lord Welligton's picture

It would be foolish to expect that even a perfect implementation of these six measures could solve all aspects of the debt crisis for ever. There will always be governments that don't keep to what they've agreed to do, as well as others that continue piling up debt. These proposed solutions are practical, but not perfect.

Neither will they be able to prevent the next crisis. But they would help to make it less likely -- and, if worse comes to worst, they'll make it easier to deal with the consequences.

It's all nonsense.

Can only be achieved by Totalitarian Government.

Good luck with that.

In the words of GW Bush. "This sucker's goin down".

Only a matter of time.

Sat, 08/13/2011 - 06:40 | 1556844 Smiddywesson
Smiddywesson's picture

A six point plan to end the debt crisis and a Fed ECB coordinated action to put an end to the EU crisis?

I have a three point plan

  1. kick the can
  2. Buy as much gold as possible
  3. Announce a "gold standard" and ramp gold prices so everyone who doesn't hold gold sees their net worth track inversely to high manipulated gold prices.

Gold, tomorrow's stealth tax for those that don't hold it.

Sat, 08/13/2011 - 10:40 | 1556989 ISEEIT
ISEEIT's picture

You of course do not believe that Fed intervention globally is either new or anything more than a prop right? The effort to support the EUR above 1.40 has been a global (globalist) hot potato for quite some time now. If the E.U experiment were (when it does) implode, with that goes agenda 21 and the whole elitist framework for single, centralized global governance. All the 'generals' have been participating. The IMF bid to hold EUR/USD over 1.42 all of Friday. They are scared as hell (which is likely the origin point of their souls) of the grand design collapsing. This shit has been in the works for a very long time. How long is debatable. The fact that globalist have this agenda and that the agenda has achieved a significant percentage of their goals is not debatable. It is history.

Of course the Fed is propping the EUR. Even the Chinese elite have been brought into this game, although it does appear that they may be ready to pause for a bit and reconsider an alliance with the western bankers.

My skin in the game is that ultimately this EUR/USD battle is lost. EUR takes a hit to near parity. Just a battle though. The war will go on.

Fri, 08/12/2011 - 21:53 | 1556202 Ahmeexnal
Ahmeexnal's picture

And now, the Chi-Chi riots.

China

http://thecomingcrisis.blogspot.com/2011/08/china-riots-thousands-take-t...

Chile

http://www.guardian.co.uk/world/2011/aug/10/chile-riot-student-protest-v...

 

Chile's government is about to collapse. Fascist Pinera is already less popular than Pinochet.

Fri, 08/12/2011 - 22:08 | 1556238 kito
kito's picture

whaaaaaat!!! chiles govt is about to collapse?!?!? simon black told me its the greatest place in the world to live!!! a house for $100 with mermaids in the swimming pool!!! the police give children lollipops!!!!chilean inflation protection bonds!!!!!! i poured every dollar into the country through all those nice people that simon introduced me to!!!!! it cant be!!! NOT chile!!!!!

Sat, 08/13/2011 - 03:42 | 1556643 Vic Vinegar
Vic Vinegar's picture

Way to bring it as you usually do dude.  Good stuff here.

Sat, 08/13/2011 - 06:24 | 1556833 Moe Howard
Moe Howard's picture

Hey, I didn't hear about the mermaids in the swimming pool! Is it too late to get in on Chile?

Sat, 08/13/2011 - 11:49 | 1557088 Rodent Freikorps
Rodent Freikorps's picture

The bottom half is a fish, you know.

Do NOT follow this link or you will be banned from the site!