ANTIESTABLISHMENTARIAN

Finance, Fuel Prices, Economics, Markets

Gotta Luv Dem Banks

From Yahoo Finance,

Get used to being nickled and dimed by the banks (even more than usual), says Diane Garnick, investment strategist at Invesco, who notes deflation has hit every other asset class in the past year, save ATM fees.

“We’re going to get hit with all of these small fee coming from the banks,” she says, noting banks’ institutional customers are both smaller in number and much more cost conscious after the credit bust. “The way we’re going to see these fees really come about will be on the retail side.
They’re saying, the people who borrowed from Mastercard to pay Visa — the little guys — we’re going to bump those fees all the way up.”

Higher credit card fees: Think of it as just one more way of Wall Street .

No problemo, Kemosabe. I’ll just stop using those services and get back to a cash basis. You want the economy to improve? Then squeeze the shit out of the little guy who’s already in hock up to his ears.  Here you got Bernanke who’s trying to pump out more consumer credit, and the banksters who are trying to end it.  That’ll work.

June 25, 2009 Posted by | Uncategorized | Leave a comment

Imagine That!

Stocks open lower after surprise increase in last week’s jobless claims

* By Madlen Read, AP Business Writer

* On Thursday June 25, 2009, 9:46 am EDT

NEW YORK (AP) — An unexpected rise in jobless claims is causing investors to sell again.

A day after the Federal Reserve expressed confidence in the economy, the government said new jobless claims rose by 15,000 to 627,000 last week. The market had been expecting a decline.

Unemployment has been one of the most closely watched gauges of the economy throughout the recession as it affects many drivers of economic growth — most importantly, consumer spending.

Unexpected? By whom, and on what basis was this unexpected when there is virtually NOTHING in all the economic data to suggest that employment would do anything other than continue to decline? The only ones surprised would be the fools who listen to the endless stream of  propaganda put out by the Federal Reserve.

UPDATE: Mr. Market as of noon is up 150 points on news that unemployment continues to skyrocket. Last I heard, crashing employment means the economy is doing the same. Does Mr. Market like paying more money for stocks with crashing dividends; that is, paying more for less? What do you think?

Or is there something else going on here? Wouldn’t be Senior Banana Ben Bernanke funnelling money to Mr. Market via is countless giveaway programs, now would it? Just how much longer can this game go on?

Answer: Until the foreign central banks decide to pull Uncle Sam’s credit cards. Then the great game irrevocably ends.

June 25, 2009 Posted by | Uncategorized | Leave a comment

How and Why

When somebody can say something better than you can, its best to defer. Here’s a quote from Elaine Supkis that I couldn’t possibly improve upon.

One thing is absolutely certain: the systematic looting of the lower working classes is a harbinger of economic collapse. When the working class is reduced to penury and hounded into being in debt more than a year’s wages, they lose economic power and an entire sector of a civilization vanishes as the working class no longer can participate in markets. Then, the destruction spreads to the middle class that needs the financial flows from the working class, to survive. Eventually, there is a huge spread between the elites and the rest of a civilization and it falls, often, very rapidly.

The ruling elites, if they wish to survive, must keep the working class capitalized. The minute they set into motion, a system whereby the working class no longer saves but instead, accumulates debts, we are on the downside of a civilization’s growth cycle.

The problem with truth is that it has a bad habit of sounding like, well, the truth!

June 24, 2009 Posted by | Daily Brief | Leave a comment

Withered & Died

Even Joe Sixpack don’t see no green in dem shoots.

ABC 6.23.09

Consumer confidence back on the elevator to the basement. Nothing like being raise up only to get smashed down again.

June 23, 2009 Posted by | Daily Brief | Leave a comment

Detailed Explanation

People like myself who attack the criminality of the establishment are commonly referred to as “whackos.” This is but one means of it trying to protect itself from revelation of its activities. In my expose’s I have intentionally avoided going into great detail owing to the complex web the banking cartel has woven. Few people have the patience for wading into complex financial shenanegans.

Here is a more detailed account of how the cartel works for those who may be interested. Click here : http://market-ticker.denninger.net/

What we call the financial markets have now literally become a new form of casino which, like all casinos, the game is stacked in favor of the house. This no mere opinion but a provable fact. You get one guess as to who the “house” is.

June 23, 2009 Posted by | Uncategorized | Leave a comment

The New Robber Barons

Goldman Sachs will pay record bonuses this quarter. So reports the FOREIGN MEDIA but not US media. At a time when the economy is in the dumpster, millions of citizens are out of work, and an unbelievable corrupt goverment saw fit to steal taxpayer money to bail out the banking mafia, the bloated pigs on Wall Street have become the new robber barons. They have become elitiest vampires sucking the blood of the US economy utterly without shame.

Add all the other banks to the list of robber barons. The big money corporate media, owned by the likes of General Electric, Disney, Time Warner and Fox Media, is the propaganda front for these vampires. Virtually all major media is owned by this cabal.

Wake up folks, what you didn’t think possible in America is actually happening. Wake up from your media induced hypnotism and see what is being done to you. We are rapidly approaching the point of no return. The Washington/Wall Street cabal just about has you completely sewn up in a web too tight to ever escape from.

We have been intentionally duped by bread and circuses.

June 22, 2009 Posted by | Uncategorized | Leave a comment

That Giant Sucking Sound

Just couldn’t resist pulling that old line from Ross Perot because its a good one. And very appropriate for the Obama and his wind-up doll over at the Treasury which is scheduled to attempt to sell $165 billion in increasingly worthless paper next week. As I’ve said before, you can’t suck this kind of money out of the economy without consequences, and before they’re done we’ll be talking trillions, not mere hundreds of billions.

With the bid to cover ratio at auctions steadily declining (meaning that there are fewer and fewer bids) there is one sure-fire way Banana Ben and Tiny Tim can perk up interest in buying bonds. Just collapse the stock market. Simply cease and desist with the non stop the “everything is getting better fast” propaganda, add a dash of doom and gloom and that will surely do the trick. For a little while anyway.

This is called having your cake and eating it too. Its what one does when one comes to the end of the rope with malfeasance, lies and corruption. You are reduced to demonstrating that you are a liar because the truth can no longer be hidden, not even from those most willing to be deceived. Indeed, the sis boom bah, rah, rah, rah media last week ran an unprecidented series of stinky headlines that today seem to be gaining traction; the green shoots suddenly wilted, turned brown and keeled over. And oddly enough, there were no major negative events, just the usual steady dribble of appalling economic data that hasn’t ceased since August 2007.

Problem is, sucking that much money out of the economy and handing it over to Washington to grease the political skids with, rips the heart out of system liquidity, so we will see the stock markets tanking for no apparent reason. Or at least no reason the government/media/Wall Street cabal will admit to.

But look on the bright side; wholesale gasoline just fell 10 cents today.

Welcome to state socialism, folks. Now you know what it feels like to be a Russian.

June 22, 2009 Posted by | Blowing Steam | Leave a comment

US Bonds Caper Should Cause Weak Knees

On July 3, 2009 two men presenting Japanese passports were detained at the Italian/Swiss border and found smuggling $134 BILLION in alleged U.S. Bearer bonds, which are unregistered bonds that haven’t been issued since 1982. For decades, US bearer bonds were a favorite form of money for all manner of illegal activities, including those of governments owing to their large denominations. One hundred million dollars could easily be hidden and transported in something as small as one piece of paper instead of the usual suitcase loads of cash. Bearer bonds thus met their demise as the money laundering instrument of choice.

This is a story that stinks as badly as any Bill Clinton scandal. It has lies and deception written all over it. It involves the governments of three nations, Italy, the US and Japan, and all three are clearly concealing and misrepresenting the truth.

Let’s start off with one important fact: This story which originated in Chiasso, Italy is either the largest smuggling or counterfeiting story in world history. And perhaps the oddest thing of all is that the corporate media is studiously ignoring it – a media story worth hundreds of millions. Why?

It took the US government two weeks to break their silence and declare that the bonds were fakes.

Reuters, 6/19/09 – “Another U.S. official said the seized bonds were purported to be issued during the Kennedy administration in the early 1960s, but the certificates showed a picture of a space shuttle on it — a spacecraft that first flew in 1981. Some of the bonds were purportedly issued in a $500 billion denomination that never existed.”

The original photo taken and published by the Italians shows no such bonds. We can see that much.

Let’s examine this statement. First, “some of the bonds” were issued in $500 BILLION denomination. Uh, guys, the Italian police said the total face value was “only” $134 billion.” Some” means more than one, so we’d be talking trillions here, not billions. Gotcha. Issued in early 1960s? Okay, let’s say 1963. Since 30 years is the longest bond issued, those bonds would have expired in 1993. That means someone loaned the USG $134 billion for an additional 16 years for free! Quite unlikely, mehinks.

From the same Reuters story: “Based on the photograph we’ve seen online, they are clearly fake. And not even good fakes,” said Stephen Meyerhardt, a spokesman for the Treasury’s Bureau of the Public Debt. A photo you saw ONLINE? You mean you made your determination of fakes by looking at an internet photo? Sure, I believe that. And it only took them two weeks.

Fact: None of the photos of those bonds show a clear view. The one taken by the Italians is far enough away that very little detail can be made out. Moreover, that photo looks suspiciously staged. They are neatly fanned out on a very small table with two police type hats strategically positioned at each side of the table with a leather pouch or purse in the middle. The ones shown by the Japanese media look like a photo taken from a car windshield during a blizzard.

Now, I could go on an on detailing and discussing all the “facts,” but like the Kennedy assassination, the truth is already buried and will remain that way. In just a few weeks a mountain of disinformation has been put out. This is the standard government tactic for obscuring the facts: bury the truth in a pile of lies. There is thus little point to debate the details any further. Instead, we need to focus on the major points that can be verified.

There are three important details that stand out above all others, (1) the huge denomination of the bonds, (2) Japanese men (3) heading for Zurich.

Japan is the second largest owner of US bonds. Last week its finance minister made a loud and absurd proclamation that Japan has “utter confidence” in US bonds. The ensuing laughter could be heard as far away as the moon.

There is one gargantuan bit of truth that stands out like a sore thumb if you know what to look for. It is this: Bonds of this huge denomination are inter-governmental bonds and are only issued and sold between governments. The denominations are far too large to be handled by persons or corporations., and far too risky. That means that the chance of these bonds being fake is nearly zero since only a government entity would stand a chance of passing fakes of such huge size. Moreover, it is simply not credible that any entity is stupid enough to print and try to transact fakes. Not even North Korea. The same goes for the latest ruse that the mafia done it. The mafia is definitely not that stupid. Small bonds, yes; $500 million bonds, never.

Some Background on Treasury Bonds

These bonds have long been considered as liquid as cash and often used as same. In 1966 more than 90% of all marketable Treasury debt was held in bearer form. The “same as cash” mentality was the primary reason. But bearer bonds presented many problems including burdensome and costly bookkeeping, handling and the problem of theft and loss.

A government that holds $700 billion worth of your bonds wouldn’t seem likely to want them in $1million denominations, for that means storing and handling 700,000 pieces of paper. Even 700 one billion or 1400 five hundred million dollar bonds is a lot of paper to account for. Seen in this light, a billion dollar bond is hardly unreasonable. And yet most governments still still demand physical rather than electronic certificates. This is proven by the fact that a very large percentage of all foreign held bonds are held in custodial banks. No need for that with digital bonds. The obvious question is why would they do this? The equally obvious answer is so that they can sell their bonds anonymously.

Beginning in 1966 the US Treasury began the process of phasing out bearer bonds, but this process also began the phasing out anonymity of ownership. I have an unverified report that the last bearer bonds were issued in 1974. However, that could well be only as a matter of public policy but may continue under special circumstances. Assuming bearer bonds were ended in 1974, the last bonds would have matured in 2004. So what happens if a bond holder doesn’t cash in his mature bond? Actually, nothing since it remains redeemable indefinitely, albeit without any further interest payments.

I notice that the bonds in the photo look like they contain coupons, detachable tickets for payment of interest. I could be wrong since its hard to tell. If so, that would indeed make them bearer bonds. There would be nothing surprising about the Japanese government wanting to hold a large amount of bearer bonds. Particularly more than thirty years ago when that nation’s distrust of foreigners was still very strong and its xenophobia infamous. And it might even find a good reason to hold a large amount beyond maturity. On the other hand, who’s to say that the Treasury did not continue to issue bearer bonds under certain circumstances?

Note that if these were not bearer bonds, that fact would preclude any motivation for selling them secretly, for non bearer bonds are all registered and any transaction would soon be detected. In that case we could rule out Japan as the owner/seller.

The truth is that we do not know what exactly what kind of bonds these are, but we do know the extraordinary length the government goes to make sure a $20 can’t be faked, so how much more so a $500 million or $1 billion bond? We can be certain that they are NOT bearer bonds as it would be plain crazy to issue such things, so we can rule that out. Governments have no need of bearer bonds. Lie #1 for the Italians. Secondly, if the bonds are real they would be registered and easily confirm-able. Thirdly, the US and the other two governments have a motivation to cover up the caper since no matter what the truth, it causes everyone big trouble.

Therefore, even though all parties are lying, it is hard to think of any reason to for this caper to be wholly invented. The greater probability is that the bonds are real, that the Japanese men are really Japanese and most likely government agents on their way to Switzerland to transact a prearranged deal to transact these bonds. Most likely a major Swiss bank was going to handle the transaction for a huge fee. The bonds would almost certainly be sold to numerous private entities at a big discount and thus have to be sold off individually and not as a lot, hence the reason they were going to Zurich. And then the Italian police inadvertently foiled Japans attempt to secretly liquidate some of their US bond holdings. With the deal in danger of becoming exposed, all sides then jump on the cover-up bandwagon to save the US bond market . . . with a large part of the financial world all praying that this debacle fades silently into the night.

This most likely explains why the two men were released and not arrested and jailed, why they were not named, why no government pressed charges, and why the ensuring barrage of misinformation and withholding of information. This is the one explanation wherein ALL the details make sense.

Where were these two men headed? Zurich, Switzerland. What’s in Zurich if not the major world banking center and the center of the infamous Swiss secret banking laws, the primary purpose of which is money laundering. It looks pretty clear to me that the Japanese government got caught trying to sell off some of their shaky US debt in secret so as not to panic the markets. That they would try to do this is understandable and hardly surprising, perhaps even inevitable.

I’d put the odds on this explanation as 99% certain.

June 21, 2009 Posted by | Uncategorized | Leave a comment

Prime Financial Propaganda

Bumberg – 6/18/09 – The U.S. may sell a record $3.25 trillion of debt this fiscal year ending Sept. 30, almost four times 2008’s $892 billion, according to Goldman Sachs.

Huh? That’s not possible. Lemme see here, the economy is about $12 trillion (adjusted for knee deep bull feathers), there is roughly $8.7 trillion in cash outstanding and the government wants to suck 37% of the total cash out of the economy by selling bonds? That is flat out ludicrous. What market is Golden Sacks trying to corner with that crap?

The CBO sez the ’09 deficit will be $1.8 trillion. Add to that $600 bn in short debt they have to roll over and there is a total of $2.4 trillion that MUST be sold. That’s not the “maybe” bull like GS uses. They’ve already raised at least $800 bn of that, so the residual to be sold is around $1.6 trillion. An enormous amount, for sure.

So GS exaggerates the bond sales by $1.1 trillion. What’s the point? Could it be that they want to stampede investors out of bonds and into stocks? Nah, they wouldn’t do that . . . .

June 18, 2009 Posted by | Daily Brief | , , | Leave a comment

Playing Taps

We all know that the USG is utterly dependent on foreign buying of its debt to remain afloat, as it is utterly impossible that its trillion dollar deficits could be financed from within.

Bloomberg 6/15/09 -Total net purchases of long-term equities, notes and bonds rose a net $11.2 billion, compared with buying of $55.4 billion in March, the Treasury said today in Washington. Including short-term securities such as stock swaps, foreigners sold a net $53.2 billion of U.S. financial assets, compared with net buying of $25 billion the previous month.

Total net purchases rose? Only in the media is a decline an increase.  How Orwellian.

This is  outright deception. Properly written, that statement should read: Total net purchases of long-term equities, notes and bonds fell by 80% in the second quarter from the first quarter.

Understand that clearly. Foreign buying of US debt just fell by 80%.

That, folks, is the beginning of the end of America’s great experiment of financing what it cannot pay for. Couple that with the ongoing international effort to dump the dollar as reserve currency, and we have the makings of the biggest financial disaster in history.

Incredible. In the face of immanent national disaster, the official response is to accelerate borrowing and spending. I will guarantee you that within two years the US dollar will be worth next to nothing, and that buying a new pair of shoes will be classified as a major expenditure.

June 15, 2009 Posted by | Economics | Leave a comment