ANTIESTABLISHMENTARIAN

Finance, Fuel Prices, Economics, Markets

All About Bankers

Bumberg 4/24/09 – Executives and insiders at U.S. companies are taking advantage of the steepest stock market gains since 1938 to unload shares at the fastest pace since the start of the bear market.

fullshit

At this point, what else is there to say?

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April 27, 2009 Posted by | Blowing Steam | Leave a comment

A New Dark Age?

Or What Becomes of the Dollar?

I’ve come to the conclusion that it is far to important to hold cavalier attitudes about my native country. This is particularly easy to do when it seems everything is falling apart. Its much too easy to condemn and level blame. It is much harder to see things in perspective of time.

Shortly after 911 I came to the conclusion that the world has a love/hate relationship with the US that is largely based on envy, rather than true hatred. Who would dispute that we are the envy of the world? And why do so many desire to come here? The French, who seemed to hate us a few years ago have forgotten all about it and are now all buddy-buddy. And so it goes. I raise this point because I think it bears on present circumstances of the dollar and the USG. Surveying the world media, I do not see the same degree of distaste for USG financial actions as is held within the US. This is because other nations are behaving as badly or worse. Yeah, our government is run by a bunch of slime balls, but what others are not?

When Afraid, We See Conspiracies Everywhere

The primary complaints about the dollar are raised by our old enemies, Russia and China. Very few others have raised their voices. It is natural that even if the dollar were perfectly managed, some nations would benefit, some would not. Some because they’re smart, others stupid, and some because of pure luck or bad luck. That is the case now as the dollar is badly managed, so what is the big deal? The situation would be the same no matter what the system is. Therefore, I see all the talk about the dollar being replaced as overblown, mainly from within the US, not from without.

The rest of the world knows very well that any new system will be as bad or probably worse. That is the way things always are. They’re not that stupid. They prefer the devil they know rather than the one they don’t.

They may not like the dollar, but they know other options are worse and far, far more uncertain. Replacing it with the yuan, a basket? You got ta be kidding! That’s the kind of tripe dreamed up by journalists and gold bugs.

Moreover, it is ludicrous to believe that any nation will give up control of its own money in favor of a global currency. They look at Europe and say, thanks, but no thanks. And what politician has ever voluntarily given up power? Ah, perhaps Washington, Seneca, Cincinnatus, but that is all. For them money is power and there is no way they are going to surrender their power to some world banking cartel. As one writer pointed out, it took a major world calamity to establish the dollar as reserve currency, and it will take a similar debacle to unseat it. The truth of the matter is that the dollar has amazing, almost miraculous resiliency. And there are still 8,000 TONS of gold at Ft. Knox, a not insignificant factor in the scheme of things. No one else comes even close.

The US economy is also proving far more resilient than I expected. While the stock markets crashed 50% the economy hasn’t – what, maybe 4-6% even if the numbers are jiggered? So what’s the big deal? The massive overhang of debt, that’s what. But the US is not alone in this sewer of debt. They are not throwing stones at us because they, too, live in a glass house. Instead, all eyes are on the US hoping and praying that the US will lead them into recovery since they know they cannot. What! You say US leadership is dead. Yeah, God is dead, but everyone hopes He resurrects Himself. That is why the world media is so quiet about the US – they all harbor a secret wish for their own salvation led by none other than US.

We Americans berate ourselves unmercifully, expecting exemplary behavior from mere mortals. The people of other nations are not quite so perfectionist. We become very skeptical when we fail to live up to our own high standards and seek to compare ourselves with history. We draw the slings and arrows of the world because we are the world’s spotlight, the leading center to which all eyes gravitate; we take criticism poorly. We take the world’s criticism as our own (or at least Democrats do).We expect to be loved by all and that is absurd.

In the history books the nations that experience spectacular collapses are featured most prominently, but those that go into slow, steady declines much less so, such as the British, Spanish, Dutch and Portuguese Empires. I often thing perhaps that is what is in store for us, despite appearances to the contrary. In fact, it may well be that world history is repeating itself by slipping back once again into a new period of dark age.

Such transitions take decades, if not hundreds of years. And very few ever understand what is happening while it happens. It may mean that we are beginning a slow, steady slide backwards or what stock analysts refer to as a “correction.” Its not hard to see why we may need one. If we graph human progress, does it not resemble the stock market, with over-the-cliff collapses being very rare?

Probably Dark Ages is a bit over-dramatic, but backsliding on what we call progress is not. Neither is it inevitable that the USG expands indefinitely. Without the production and the money, it cannot. Neither can the world, which is also very sick.

As for the dollar, I think its more likely to just fade away over a period decades under a slow, steady drip of repricing of commodities that we do not control, as markets shift to other nations, and the dollar will be replaced over time by something as yet unknown.

April 24, 2009 Posted by | Uncategorized | 1 Comment

Lest We Forget

It is all too easy to have one’s basic instincts, reason and common sense washed away when one’s primary source of information (or what passes for same) is television or newsless papers, forgetting that corporate media is in the business of promoting the status quo, which is lending and spending.

Let’s not lose sight of the fact that the economy nearly collapsed as a result of excessive and unsustainable debt. And the government’s solution to prevent this collapse is borrowing and spending more money. Like curing a drunk with more alcohol, this works like a charm for a very short time as the cause of the disease only grows larger.

General Growth Properties, the nation’s largest mall owner with over 200 malls went bust last week in what is the largest real estate bankruptcy in US history. And it hardly made a ripple in the news on page A31. As a result of flooding the economy with funny money, President Change has managed to prop up the stock markets while the rest of the economy deteriorates at a somewhat slower pace. Stocks are soaring (so are craps tables) while unemployment rises by ¾ million per month whilst the big money boyz all shout bottom and recovery.

Horsefeathers. Recovery for them maybe, because all that taxpayer money ploughed into banks is being lent out only to speculators, meanwhile the banksters raise interest rates and slash credit to the rest of us. Data from the NYSE shows that the biggest market players are the f*ing banks themselves with Goldman Sacks leading the way. So there’s your rally in a nutshell. Or should I say, nutcase?

Odds are fairly good that the economy will appear to pick up for a while, possibly even as long as a year, but do not be fooled. The disease that is destroying this nation is still rampant but swept under the rug and, for the most part, legalized by Prezident Change. Corruption, rigged markets, fraudulent bookkeeping, lying, cheating, looting the taxpayers, bribery, payoffs and wholesale refusal to uphold the laws by not prosecuting financial crimes will continue to sour markets and destroy confidence. The financial speculators who have and can do nothing else will continue to milk the markets for every dollar they can squeeze. But the squeeze bag is running dry. And when there is finally no more suckers left, including the banksters themselves, its game over time.

I can’t predict how much longer that will be. I can only advise to beware and begin preparing if you haven’t already. Times like these call for survival planning, preparing for the worst. Have you given any thought to what it means that the USG goes broke and the dollar collapses? If not, you should because that is definitely in the cards. It becomes closer to inevitable every week.

April 21, 2009 Posted by | Investing | Leave a comment

Whodathunkit Part II

“Thar she blows,” shouts Quequeg as the Great White Whale takes a dive in Herman Melville’s Moby Dick. A fitting analogy today.

Top Stories

Wall Street Slides as Investors Dump Financials– AP 4-20-09

Wall Street fell sharply Monday as investors sold financial stocks and looked to lock in profits after a six-week rally. Investors are having doubts about banks’ profit reports and are wondering whether their better-than-expected performance masks larger problems with bad debt.

Gee, you mean it took “investors” a month-and-a-half to figure out that insolvent casinos also known as banks don’t make profits. Or better still, that they’re using the bail out money to lure in unsuspecting dim wits to drive the stock prices higher so they could sell new issues (and thereby dilluting the existing) in a futile effort to escape from the reality that banks owe 10-30 times their net asset value?

With a little help from the political rats the banksters were given permission to cook their books in the form of FAS 157 that allows the banksters to once again assign value to that which has no value, resurrescting market to magic accounting rules. That is, assigning full value to worthless mortgage bonds. You know, the very same ones that brought the banksters down in the first place, as if that was going to fool anybody and Mommy would kiss it and make it all better. But Mommy has teeth — big ones.

Of course they knew. The “they” are the majority of traders who are program traders that have football field size trading floors and also call themselves bankers. A few dollars spread around the media for propaganda and they probably got a fairly good ride out of the effort. Now its time to get out whilst the gettin’ be good. Leaving the suckers holding the bag as usual.

You want to swim with the sharks, you’d darn well better be one of them.

April 20, 2009 Posted by | Investing | Leave a comment

Golden Sacks

Golden Sacks

In several earlier posts I accused Golden Sacks of being a criminal enterprise and detailed why this is so. Today, we get even more evidence on how GS cooked their books in order to post fraudulently high profits in order to kite their stock price so that they could raise more money by selling more stock. This is a very old corporate trick and it is very illegal. Not that anyone in the national police department cares since President Change is most happy to see these manipulations. The main reason being that it has led to endless chanting about a recovery.

For those not attuned to stock markets, this bear “rally” was led by financials, you know, all those bankrupt, insolvent banks that are posting record profits like Wells Fargo and its $3.1 billion profit. Part of that was done via bailout money (obviously), part by changing the valuation rules for valuing worthless mortgage bonds, which now allows them to assign whatever value they wish (so that Tiny Tim and his public-private partnership scam can overpay for those used toilet paper bonds, and the third part by the old tried and true method of simply rewriting the books as they wished.

The exact method of culinary book cooking was by means of simply omitting all the losses for the month of December. A few sharp analysts like Tyler Durden of Zerohedge Blog, among others, figured this one out. You see, Golden Sacks a few months back changed their fiscal year cycle from ending November 2008 to beginning the new cycle to January, 2009 thereby conveniently omitting December from the books altogether. Not only that, they could also elect in which month to declare their losses, which they could move into December in order to be omitted from the public record.

Now for the clincher, two graphics that tell the whole sordid story.

goldmanrecipients

goldman1

If those numbers don’t cause cause the veins on your forehead to pop out nothing will.

April 15, 2009 Posted by | Investing | , , , | Leave a comment

Follow-up on Goldman Sachs

Monday’s piece was about how Goldman manipulates the stock market with taxpayer bail out money. Since I failed to provide complete proof that this was true, other than presenting mere numbers, here’s the rest of the indictment.

Goldman has repeatedly claimed they don’t need any more capital or money. This is a lie just like all the other such claims by bank presidents who went bust and got bailouts. Then we have Goldman declaring what amounts to near record profits. Next up is Goldman announcing it will sell new stock issues to raise cash to pay off the bailout money.

Virtually no one in the media is capable of either seeing or reporting this lie. How can they claim not to need any money when they have to sell stock to raise cash to pay off the bailout, unless (1) they lost money gambling with stocks or, (2) they paid bonuses and stock dividends with borrowed money, or (3) they, like all other banksters lie about their derivative losses.

Note here that Goldman got $25 billion in TARP, over $100 bn in AIG payouts on CDS, and still they have to sell stock? Lies, lies, lies, all of it.

The final clincher is that Goldman stock has risen 74%. And guess who are some of the largest stock holders. Why Hank Paulson and the company’s executives, that’s who.

April 14, 2009 Posted by | Investing | Leave a comment

Goldman Sachs: Banking Mafia

Goldman Sachs. We all know most of the complaints about this and fellow monolithic money mongrels J.P. Morgan and how both have an obvious appearance of having the US government in a full Nelson. One can only imagine the size of their “insurance” files bulging with documents and 7″ x 10″ full color glossies of 100 US Senators engaged in behavior that could get them, well, unelected.

Often snidely referred to as Government Sachs, the darling of the White House and sole proprietor of the US Treasury, now offers up proof that it and their fellow banksters are manipulating the New York Stock Exchange. Take a gander at the following numbers, courtesy of the NYSE:

There we have the top 12 mega banks comprising 5.2 billion shares in one week (4/6-10) with Goldman Sachs accounting for a whopping 1.42 billion shares. See chart below. Note that the top 12 banks accounted for an incredible 5.2 billion shares. During that week they accounted for 20% of the NYSE, or 100% in one day. And you call that a free market?

So what kind of outfit is that anyway? Formerly an investment bank, now official a bank (whatever a bank is these days) and primary purveyor of Secretaries of Treasury to the USG, and a revolving door in an out of the Federal Reserve which, today is a repository of worthless securities paid for with our money. Now, any doubts anyone might have had about the stock markets being manipulated, here you have it right out in the open.

nyse22

Data: The NYSE – 4/6 – 4/10/09

Moreover, we know exactly where they got the money to do these stock buys – for the payout of AIG credit default swaps to Goldman in excess of $100 billion, paid for by the taxpayer. These are banks which are the largest players in the stock markets. They have trading floors the size of football fields. And what they do, they are doing with taxpayer money with the legal right to engage in 10X leveraging with depositor money as well.

So, is it any surprise that yesterday GS declared a record profit, even with bail out money? Does anyone ask why they got $100 bn from AIG bailout on CDS, got TARP money, makes monster bets in the markets, and yet manages to make a record profit? Not to worry, the American people are watching American Idol and basketball, so the gangsters can do as they wish, which is to rob us blind. Actually, we are already blind, which is why they are robbing us.

Preceeding the massive financial collapse that led to the great depression, US banks were much the same as they are today. Reckless gangsters speculating in anything and everything they could get their hands on, and they did this because they had the ability to rig and control the financial markets. But their extreme overconfidence in their bought and paid-for powers led them to believe they were invincable. They were not, and as a result they brought down the whole nation. Now, only 70 years later we have a repeat performance. The best way to have a successful conspiracy is to make it legal.

And we dare call these outfits banks? In reality they are way beyond banks, they are financial mafias that need to be broken up under both anti trust and RICO statutes.

In 1938, after years of sorting through the financial and political fallout, congress passed the Glass-Steagall Banking Act. This legislation separated standard banking operations from stock brokers and all other financial biz. And for 62 years it worked, preventing banks from running amok and ruining the nation. That law was repealed by two Republican congressmen, one Democrat President and the former head of Citigroup who was Clinton’s secretary of treasury. Then, in only 8 years, a mere handful of mega banks managed to bring a great nation to its knees in conspiracy with its lead mentor, the Federal Reserve which, by mere coincidence, is OWNED by the very same banks.

Yes, the Fed is a private central bank that is owned by the very bankers it is supposed to regulate. Now, I don’t deign to call that a conflict of interest. Such a thing is far to massive and sinister to be placed under such an innocuous term. The truth is, that this was a banking conspiracy right from the very day that the Fed was conceived by none other than one John Pierpont Morgan. Still believe in coincidences?

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” -Woodrow Wilson, after signing the Federal Reserve into existence

In the interest of accuracy, I must say that the veracity of the above quote is often called into question as it seems no one is able to cite a source, and neither can I. However, here is another that more or less says the same thing, or at least conveys the same sentiments of the man. It merely omits naming the Fed,

“A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men … [W]e have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world-no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.”

Goldman Sachs is a top purveyor of top officials to government and the Federal Reserve. The list is far too long to cite here, but most readers are already familiar with the latest batch of thieves, Paulson, Summers, Snow, Kashkari, Liddy (AIG), and combined with those from the other houses of money, the list goes far longer.

I call Goldman Sachs a financial fascist for many reasons, not the least of which is cited above, but even more by the fact that they are now suing, or threatening to sue, a number of bloggers that have said negative but non slanderous things about Goldman. Well, they can add me to their list if they want.

April 13, 2009 Posted by | Economics | , , , , , , | Leave a comment

Our Inescapable Future

If you have been convinced by the media that an economic recovery is underway, please consider the following.

The United States government in the 2009 will have to roll over $2.569 trillion of existing debt in addition to financing a $2.5 trillion deficit via selling more treasuries. That is $2.569 trillion worth that becomes due and payable this year, no getting around it. In the past, much of the deficit has been financed by foreign central banks recycling our import dollars. Not only has that amount been cut in half, but other nations have more urgent needs for that money, so that source of foreign financing of the Great U.S. Credit Party is gone.

It is flat out impossible that the US private markets could purchase $5 trillion of treasuries, which amounts to 38% of GDP. To pull that amount of money out of the economy and put it in the hands of government – in large part to pay off foreign debt – would collapse what remains of the economy. So what’s a government to do? In the words of analyst Doug Casey:

In the absence of sizeable increases in tax revenues, it is quite clear that the lion’s share of the planned sales of Treasuries in 2009 cannot be met by demand from the market. Either the Treasury will have to raise interest rates significantly, or the Fed will need to step in very aggressively to support the planned auctions. Our expectation is that both will happen. Auctions will fail and the Fed will step in. The market will react to more printing by anticipating inflation and demanding higher interest rates. Once the cycle starts, it will be very hard to pull interest rates back.

And that means: monetary devaluation will be the only way for the U.S. government to shift the cost of irresponsible spending into the future. Or, in other words, big-time inflation. The only way to get out from under this massive amount of debt is to pay with greatly devalued dollars.

Another point to remember: No nation has ever succeeded in reducing gross indebtedness via inflation without also destroying its economy. Not one. So there is your prognosis for an economic recovery. Like that famous quote from the Vietnam war, “We had to destroy the village in order to save it.”

April 8, 2009 Posted by | Uncategorized | Leave a comment

Wholey Owned by Wall Street

Just in case any of my readers think I’m a raving lunatic or right wing fanatic in claiming that DC is owned by the bankers:

Washington Post — Lawrence H. Summers, one of President Obama’s top economic advisers, collected roughly $5.2 million in compensation from hedge fund D.E. Shaw over the past year and was paid more than $2.7 million in speaking fees by several troubled Wall Street firms and other organizations. . . .

Financial institutions including JP Morgan Chase, Citigroup, Goldman Sachs, Lehman Brothers and Merrill Lynch paid Summers for speaking appearances in 2008. Fees ranged from $45,000 for a Nov. 12 Merrill Lynch appearance to $135,000 for an April 16 visit to Goldman Sachs, according to his disclosure form.

Bought and paid for. Any further questions?

April 6, 2009 Posted by | Blowing Steam | Leave a comment

Isn’t It Odd

At the top of the agenda at the G20 meeting last week was a move to create an internation organization, the purpose of which would be to create rules to prevent financial irresponsibility of the sort that led to this mess.

Meanwhile, the very same governments  promoting this are engaged in gross financial irresponsibility of engaging in reckless spending and massive credit creation, not to mention just printing up money with no backing, even to the extent of risking damaging sovereign credit and destroying their currencies.

It is always useful to require the irresponsible to create new regulations to regulate what they will do regardless of regulations. Regulations to prevent what happened already existed. When it no longer serves their purpose they either ignore them or remove them. Just window dressing, that is all.

April 5, 2009 Posted by | Uncategorized | Leave a comment