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"They’re going to cut back the bone and they’re going to keep the fat, basically. They’re going to try to panic the population into acquiescing in a Democratic Party sellout by cutting back payments to the people...while making sure that they pay the Pentagon, they pay the foreign aid, they pay Wall Street." Michael Hudson

The Treasury had to sell $66Bn worth of notes this week and there was no POMO for the Fed to bid with. The US could have been really screwed but, luckily, the market crashed and everyone panicked - INTO TREASURIES! Isn't that convenient?

The Fed will never be able to reduce the size of its balance sheet. In fact, it will need to begin expanding it soon.

I have to tell you some terrible things.

How could all of those PhD egonomists and Wall Street paid government shills have been so wrong, when all they needed to do is follow the government’s own daily budget data to see what was going on?

"Look for a huge shock when they announce just how much more debt the gummit will need to sell compared to what was originally estimated"

How many times can the market rally on the same news - news that we know is nothing but BS number shuffling out of Europe that pushes the Greek crisis back for a year or two and nothing more?

Then things fell apart. The government was peeling off its stimulus programs, gas and food prices had skyrocketed, and suddenly on May 17 tax collections fell versus the same period last year.

Recession and/or brink of collapse?

From China, to Greece, to Stocks and Bonds, European Debt, CDS, and finally the Dollar and Oil.

Lee: Think like a criminal. Look, it’s a matter of knowing what the Fed’s next move is going to be, and knowing the investment implications.

In the end they cannot fulfill their purpose because the banking system is dead. This is Frankenstein’s monster.

It will be a fun experiment to see if we can truly strip a government down to the singular function of taxing the citizens to give money to banks - consider it a practice run for their vision of the US.

Next week’s calendar is light, with another paydown on Thursday and plenty of POMO, so if ever stocks had an excuse to rally, this would be it.

The Greek people UNDERSTAND how they are being screwed over while it's the Americans who are bending over and taking it from the Banksters without complaint.