May 22, 2012

U.S. Treasury Allows China To Hide Bond Purchase Details

China has been given a direct line to the Treasury, the only country ever allowed the privilege, so that it may purchase (or not purchase) bonds without American banks being privy to the details of their transactions. This is yet another revealing sign that China, because of its detrimental control over the fate of our currency, has been given free reign to roam about our markets and our infrastructure at will. China is being given special treatment for one reason; they are being handed the
keys to our economic castle as payment for the coming devaluation of the dollar based securities they will still be holding when the Fed announces QE3. It is no coincidence that so many gifts have been handed to the Chinese in the past year alone.

[ Story ]

In 2009, when Treasury officials found China was using special deals with primary dealers to conceal its U.S. debt purchases, the Treasury changed a rule to outlaw those deals, Reuters reported last June.

Oh I seeee, it’s a work-around. Evasion by any other name is still…

Cui bono? Is it even legal (I know, when has the government ever obeyed the law)? Does this open up the T market to manipulation? I suppose if they promised never to do that, we’re good. Money good.

It is similar to one drug addict allowing another access to their private stash. Will it be there tomorrow?

It is customary for favored customers get special privileges. Just last week came this related (although neither story acknowledges the other) news:

Giant banks owned by the Chinese government are coming to the U.S.

The Federal Reserve on Wednesday approved plans by three state-backed Chinese banks to expand in the U.S., including the first acquisition of a U.S. retail-banking network by a state-owned Chinese lender.

[ WSJ ]

Not one, not two, but three Chinese banks. A quantity discount? Way to save there, guys.

No film at 11.

What is that fishy smell?


Why ZIRP? When you only have a hammer, everything looks like a nail

August 22, 2010

The US Central Bank (aka Federal Reserve, Inc.) needs to kill about a billion people so they can save face their busted plans will work. If you own vast tracks of land, or have access to giant earth movers, contact Benron Bukkake or “Turbo” Timmeh Shitener.

Boiling Over

February 19, 2010

Frustrated Owner Bulldozes Home Ahead Of Foreclosure [ Text+viddy ] [ viddy ]

Austin Suicide Pilot Joe Stack Burned His Home, & Possibly Planted Bomb At Airport [ Faux nooze ] [ Manifesto ] [ Statesman ]

I learned that there are two “interpretations” for every law; one for the very rich, and one for the rest of us…

…as usual they left me to rot and die while they bailed out their rich, incompetent cronies WITH MY MONEY!

-Joe Stack

Chandler,AZ man arrested for gutting foreclosed home [ AZ Star ]

Beware the man who thinks he has nothing left to lose.

“When people lose everything, they lose it.”  -Gerald Celente

Ten Things Not to Like About the US Government Policy Actions Known as “The Bailouts”

November 3, 2009

Courtesy of Jesse at the Café Américain.

1. The Treasury and the Fed rewarded some aggressive risk takers and failing business models at the expense of those who followed sound business practices. Those who followed conservative practices have been penalized twice; first on the way up and again on the way down. Those companies that did fail appear to have been ‘targeted’ by insiders.

2. Much of the process was done in secret with minimal transparency, debate, or disclosure by people who have obvious conflicts of interest.

3. The stated objectives of freeing up credit for the real economy and stemming foreclosures have not been achieved.

4. Trillions in taxpayer money were provided with few strings attached and at minimal stipulated rates of return. Furthermore, several of these institutions are using their taxpayer money to lobby against reform and award themselves pre-crisis salaries and record bonuses.

5. Bailout actions were arbitrary, inconsistent, ad hoc, and without an apparent guiding principles of justice.

6. The banking, rating, “insurance”, and regulatory systems have not been reformed and the perpetrators of the collapse and their enablers are remain in charge, now overseeing the “recovery.”

7. Criminal investigations are minimal; few people are facing indictments or even serious regulatory scrutiny for actions that are highly questionable. Official finds are whitewashes.

8. Regulations, regulatory structures, and other safeguards were implemented, revised or swept aside in chaotic and reckless fashion. [discount window participation and collateral, short selling rules, bank holding companies, mark-to-market]

9. The insider advantages, speculative excess, and extreme leveraging of the perpetrators has been allowed to continue; in fact, allowed to expand. There is a taint of insider trading and corruption that permeates the process.

10. Wall Street is bailed out; Main Street is not. Efforts to subsidize the incomes and balance sheets of failing firms have been massive and were implemented with minimal debate, requirements, or oversight; efforts to shore up taxpayer incomes and balance sheets have been comparatively minimal, subject to extensive debate and tinkering, highly selective, and incomplete.

Thanks to Cafe patron Malcolm McMichael

“The States racked up some serious debt in keeping the world safe for democracy in the Second World War. On a percentage basis, it has recently spent a significant amount keeping its financial sector safe from productive effort and honest labour. They will raid the Treasury, take their fill, and then compel the government to confiscate the savings of a generation by defaulting on its obligations, its sovereign debt.” -Jesse at the Café Américain

Federal Reserve needs to cut US Dollar in half over next 14 years

September 29, 2009

14 years? Jim thinks more like six months!


July 29, 2009

Charlie Smith at Of Two Minds weighs in on the health sick-care reform boondoggle.

There is a solution so simple and so radical that it is “impossible” (and of course you’re reading it here): shut down insurance and all government entitlements, and return to the “golden era” of the 1950s when everyone paid cash for health-care.

Be sure and check out the very interesting graphic of costs associated with giving birth at Santa Monica hospital ca. 1952.

Would returning to the days of old be regressive? Would quality of care plummet? Would the cost put the health of people living from paycheck to paycheck at risk?

The answer to each question has to be an emphatic No.

Has care gotten better since 1952? Only marginally. People are still getting sick and dying.

Quality of care will actually improve. After all, nearly all the money paid for treatment goes to insurance companies… which goes to cover inflated values of costs, and handsomely reward executives with exorbitant compensation.  After all the execs didn’t get into health-care to help people, rather it is to help themselves. Put the money where it counts, in actual care for the patient.

The free market will actually drive the cost of health-care down so that everyone would be able to actually afford it. Even people like me who are uninsured (my choice). They would also be forced to answer that wake-up call that they are responsible for their own health and not the fatherhomeland, and better quit smoking/overeating/drinking/drug usage/texting while driving.

Debate as it is purposely being framed isn’t about health care it is about health insurance
The entire health-care debate underway is completely slanted in maintaining the status quo. It isn’t about how to best maintain and support good health of our fellow man and child; it is centered on how best to compensate the middle man, i.e. the insurers and big pharma, and inflate the cost of care to guarantee big bonuses, while still having the ultimate say on quality of care you should recieve- and the healthinsco still reserves the right to refuse you any time it is deemed too costly.

It makes perfect sense to let the free market set the level of each individuals cost of care, not bureaucrats, not parties where profit motive is their primary (only) interest.

Not only would this idea of a cash-based system be the tonic necessary to eliminate fraud and waste, but the quality of care would actually rise.

But of course, rational ideas such as this are immediately shut out of the “debate” because so many special interests have their hands in the pie. They prefer to install a system that helps them to rip-off Americans, where the state and crony accomplices want to keep you alive as long as possible to squeeze the last dollar out of your cold dead hands.

[Of Two Minds]


Ilargi comments:

The difference between US and Western European health care lies exclusively in the political power acquired by corporate industries, in this case -mainly- a combination of drug manufacturers (closely linked to the chemical industry) and insurance companies (which are in turn closely linked to Wall Street banks). The US needs to fabricate its own system because it needs to satisfy the perverted influence industry has on not just health care itself, but also on the political process.


***UPDATE***4:11 PM 8/5/2009

Healthcare “Reform”: Cui Bono–To Whose Benefit?

[Of Two Minds]

“It will be many years before the masses discover just how completely they have been fleeced by the power elite.” -Richard Smith

Grok this

June 15, 2009

I was reading a brief recounting of the S&L crisis last night.

Now, my personal recollection of that particular collpase is vague. I was cognizant that it was going on, but I never used S&L’s so did not feel impacted directly.

I did notice a lot of them were collapsing, and using moral hazard (“thank Ged for the FSLIC”) to attract investment in their CD’s with ginormous (15% and up- imagine that today) rates for CD’s. I didn’t have any money, so I couldn’t play.
But why this massive failure was taking place was kind of mysterious. How did so many similar institutions find themselves in such similar dire straits?

The one institution that I recall some detail of was Colorado’s Silverado S&L [Wikipedia][Austin Chronicle]. Fortune did a story about it (ca. 1988). This was the S&L run by Neil Bush, whose father was VP at the time.

Interesting fact: there was so much irrational exuberance during the boom times, that Neal sipped champagne out of a cowboy boot. Whether it was his own boot- or someone elses’- well, that particular detail escapes me.

But now I’ll get to the point.

While I assumed there were similarities with today’s housing bust, I didn’t realize how far off my hazy memory was.

Our current housing boom and bust have played out *exactly* the same way. It’s as if the same playbook is being used!

Some of the mechanisms are more up to date (new! improved!), making the bezzle more Ponz-friendly IYSWIM. Essentially it is the very same kind of fraud being committed- legal fraud. The kind only the banks get to use with impunity.

And of course the outcome- transferring the losses to the taxpatyer, while the fraudsters get to keep their gains- is exactly the same.

One other interesting fact: the bailout of the FSLIC and the FHLB (both eventually rolled into the FDIC) were set to be paid back over thirty years.

That means, yep- we’re still paying for it- and still will be for another ten years.

Plus, now we’re gonna get the extra added privilege of paying for this Benron/Paulson/Shitener/Bush-Obama madness.

If any body out there could recommend any good books about the S&L crisis, I’d a be interested in hearing from you.

The S&L crisis, Global Crossing, Enron,, Long Term Capital Mgt, Continental Illinois, Indy Mac Bank et al; where did the debt go? Why, it’s been socialized, and by Ged we’re still paying for it becaue that’s just how stupid we are.