Hat tip to ZERO HEDGE once again (quickly becoming the truly insightful guest-post repository of the season) with Mike Krieger’s Seeing Past The Hologram. In case you see amazing similarities between this article and Lira’s in the previous post, just write it off to the bizarre consistency of reality.

I fully agree with his comment on the Treasury market as an indicator; basically, how can you extrapolate anything from a market where the Federal Reserve is buying its own government debt?

Well … we extrapolate that our central bank is buying its own government debt. That is an indication of what it is reacting to moreso than an indicator in and of itself. Bottom line: The Fed is corrupting US sovereign debt with securities fraud, as are other central banks across the globe. It’s all about CONfidence after all:

The confidence that is needed more than anything else today is two-fold. First, confidence that there is the rule of law and there will be the rule of law in the future. The second is that the money issued by the government will maintain its purchasing power over time. 

Neither Krieger, nor I, nor American businesses have any such confidence. Until we do, 99 weeks of soup coupons are in the mail. We surely agree that important moves have been made in the past week, but I like his take on FX market:

- with the Chinese yuan NOT strengthening and the yen threatening to break out we could be in for some major fireworks.  Meanwhile Japanese 10 year government bond yields have really started to spike lately (chart GJG10 Index on Bloomberg).  Something big is happening in the land of the rising sun.  In the back of my head I think that any panic move from the BOJ could be the spark that breaks government bond bubbles globally and ushers in a period of massive global commodity driven inflation as every country tries to devalue their way to prosperity. 

Here again, same conclusion - different trigger. So many different triggers – all the same conclusion.
Still only ONE SOLUTION.

Excerpts follow below from Zero Hedge on Gonzalo Lira’s guest post, which is brilliantly written, an easy read, and an insightful look into US government economic policy, as it relates to the current global financial agenda. This is a letthemfail top pick article:

I’ve never liked the term “asset”, when discussing bonds. They’re not “assets”—they’re debt. They’re a loan. And a loan only has value so long as it’s being repaid. If the debtor defaults—or tries to pay back the loan with something less valuable than what was originally lent out—then this “asset” becomes a loss. 

Or, more predictably, a liability from an accounting standpoint. Assets turn liabilities once you load them up on toxic derivatives from the fraudulent securities market. We see them as liabilities until the loss is taken, because market values continue to plummet. The fraud factor accelerates the true loss, just like it accelerated the false gain. The FASB accounting fantasy allows banks to report these as nominal assets, at their peak value, as long as they hold them.

We also talk alot here about “stealth monetization” of the FED, CENTRAL BANK CARTEL, TBTF, TREASURY money laundering chain.

This is what I call Stealth Monetization: Unlike in some banana republics, which dispense with the niceties and simply turn on the printing presses whenever they need more money to spend, the U.S. Federal government and the U.S. Federal Reserve got creative, and used the TBTF banks to essentially hide the monetization of the fiscal debt in plain sight.

… basically by taking all that FED liquidity and bailout cash to buy Treasuries, while the FED buys all the TBTF toxic trash and shifts the risk (or debt, or liability) back into the bonds: the shell game we constantly refer to. I would just add that the global central banking cartel is abetting this activity globally with their multi-national TBTFs.

By shifting the toxic debt to sovereign balance sheets, the Central Banks basically invalidate their sovereigns either through default or currency collapse. This is a game changing crisis to usher in the new global governance of economic world ”order”. You won’t lose too many liberties at first, but you’ll gladly give them up to avoid true austerity.

We have also discussed Bernanke’s encouraged attempt to orchestrate (at least the illusion of) an orderly and controlled inflation through US dollar saturation:

It is not controversial to say—and indeed, it is widely discussed—that the U.S. Treasury has only two options: Default on Treasury bonds, or debase the currency by way of inflation, so that the nominal value of Treasuries is stable, but their real value decays by inflationary attrition.

Then of course, we talk alot about the endgame. Bernanke playing with matches in a silo filled with Treasuries soaked in toxic asset debt gasoline:

In two previous posts, I essentially said “Yes” to a collective Moment of Clarity, “yes” to a panic in Treasuries. I further argued that such a panic would lead—inexorably—to a flight to safety in actual, physical commodities, which would then result in a massive hyperinflation that would kill the dollar dead. Part I is here, Part II is here. Inevitably, unavoidably: Treasury bonds are bound to collapse, triggering the sequence of events that I have described.

Did recent Chinese media leaks test a Treasury collapse-trigger earlier this week? Check the prior post and decide for yourself.

Lira even invites the Mike Shedlock “U.S. has become 1990′s Japan” comparison (Mish, as we agree, being the consummate deflationary theorist) which he then somewhat refutes, but not quite as pointedly as Matterhorn in yet another recent letthemfail post.

Finally, we submit:

If people no longer trust dollars as a medium of exchange and Treasuries as stores of value, where will they go? They will leave both and go to something else—commodities, as I have argued. And when that day comes, people will do anything to get out of the dollar and Treasuries, and into something that is stable in terms of value storage and medium of exchange.

And that moment of clarity apparently is not yet imminent.

But when it comes you will not only have the inflationary demand pull coming from the IMPLOSION of the ultra-mega bond bubble which off-loaded the mortgage backed security mega bubble (i.e. COLLAPSING ON STEROIDS) but you’ll also have an unprecedented negative feedback loop to convert out of collapsing dollars held as stores of value in pensions, retirement plans, etc… For example, you will not need to worry about our government bailout of Bell, California pensions because they, like all dollar-denominated pension accounts, stuctured annuities, retirement accounts, savings accounts, 401 Ks, IRAs, bags of paper money and paper contracts denominated in dollars, even Social Security benefit dollars – it ALL devalues to less than dog food coupons for at least the next 2 generations of Americans.

DEBT PROBLEM SOLVED — GDP overtakes past debt through hyperinflation. Instant austerity! But not through self-discipline. Rather, through currency collapse. Weimar Republic 1921 results will be acheived through 21st century geo-political, economic “restructuring”.

This article is important. But as we’ve explained before, the ONLY way to reverse direction is for State Governments to take action.

Out from the bowels of the Trojan Horse of Globalism springs forth the IMF with new and unlimited resources (translation: America’s dwindling middle class) to bail out the deflating fantasy of European virtual wealth, conjured up by the multi-national Too Big To Fails and their central banking cartel. It appears that they are determined to hyperinflate the US dollar out of it’s untenable reserve position sooner, rather than later, as a “policy” decision of the emerging governance of global finance.

Yesterday’s breaking news would have been the defection (to the U.S.) of the People’s Bank of China Gov. Zhou Xiaochuan based on rumors of a 430 billion dollar loss on US Treasuries (or US GSE bonds?) which could only have been possible in relation to a 3.5 trillion dollar synthetic hedge gone wrong. But the rumor could not be confirmed. 

Moody’s “warning” to China against using debt purchased by other banks to recapitalize non-performing loans, a.k.a. “leverage American style” certainly seemed a likely precursor to the Party’s entanglement in the global banker’s dictatorship. But they are simply finance capitalists of another stripe, possibly testing the market’s response to a run on US Treasuries. Either way, this week’s financial news portends to be gory.

But today’s breaking news centers on IMF bailout 2.02 of speculative positions within the European version of the asset value fantasy, fueling the further destruction of virtually all fiat currencies among the developed decadent, soon to be former, sovereigns.

If you want to end the national auto-determination of sovereign nations, as the intellectual elite and world bankers have sworn to do,  just gain control of their currencies through your central banks, create massive volatility, use the reserve currency to fund the bailout of ficticious claims of massive credit induced appreciation against the collapse of massive credit de-leveraging until the currencies are literally worthless, i.e. “worth less” than the ficticious claims.

It’s not prostitution that’s the world’s oldest profession, it’s banking–and what a whore it is. This is the perfect scam if you’re:
1) already sitting on a 15 year old (or older) mountain of gold, or
2) ushering in a new global currency, like a bancor (or carbon credits) to scam the working class with all over again, or
3) both 1 and 2

There’s a moral to the bailout story, which Glenn Beck has recently captured: all ideologies fail once morally corrupted. Socialism, Communism and Capitalism, just to name a few. All have been corrupted, and all have thusly failed.

As we said, many, many posts ago, it is the moral bankruptcy of America which defeated Capitalism. The system itself, and especially its celebration of individualism, always had great promise. And it delivered on that promise for many years, before power corrupted it.

Now we see what globalism has to offer, with it’s pretense of collective salvation and social justice, under neo-colonial rule. We’ve had global dictatorships before–they don’t last forever.

It is important to realize that the cowards robbing your future are just that. And cowards only succeed in darkness, under cover, far from the purifying light of TRUTH. It only takes ONE CHARISMATIC LEADER to send them all scurrying under the baseboards like cockroaches, patiently waiting as they scheme, for the Leader to fall, or the light to fail.

Such leaders can TAKE ACTION to save our Republic under the present economic paradigm. Such leaders can accomplish this on a modest scale, like that of a functioning American STATE, with a working government, capable of sustaining WE THE PEOPLE through innovation, self-reliance and perseverance. But that economic paradigm is changing, and the window of opportunity is changing with it.

Last Saturday Glenn Beck rallied half a million people … doing what he is capable of, what he can. Others create blogs and publish articles … doing what they can. People of good character will do what their conscience directs them to, what they are good at, “what they can”. That’s all anyone can ask. And we will inspire, or motivate, or simply enable that leader of unwaivering principle and moral strength to lead the people back to their former character.

Glenn is correct about one thing: once the character of the people is restored, America is restored.

It never ceases to amaze me how the mainstream media completely fails to recognize what the U.S. Federal Reserve really is, what it historically represents, and where it’s interests lie. Media mouthpieces continually hail Bernanke as if he was some modern day monetaristic Moses, come down from the mountain with the holy tablets of economic salvation, hanging on his every word as if he somehow has the power to save America’s economy, or that if he somehow did have that power, he actually would.

The Federal Reserve, a.k.a. the creature from Jekyll Island, was literally established to destroy America financially. It was planted into the roots of our nation as a foreign parasite, feeding upon U.S. sovereignty just as any central bank feeds upon the credit it ultimately extends its government host (and by extention its taxpayer base). It’s only benefactors, as is usually the case with any private bank, are its shareholders, which consist of an international consortium of too big to fail banks, whose “too big to failness” is partly owing to the Fed.

This is another reason why we endorse publicly-owned State banks, whose sole “share-holders” are State taxpayers, to extend untainted, job creating credit, instead of laundering special interest stimulus through the global money-chain.

Unlike a publicly owned State bank, which provides credit, start-up capital, educational funding, sound investment opportunity and financial security to account holder’s, the FED provides very little in the way of opportunity, risk mitigation or security to the United States. One could argue quite successfully that it debiltates all three, and it certainly draws much more than “interest” from taxpayers–all of which certainly benefits its global shareholders.

And yet, the media acts as though Ben Bernanke has the best interests of America, and the American people, nearest and dearest to his heart. It hangs precipitously upon the event of his every remark, and reports upon them with great gravity and sincerity, despite the fact that they are reporting upon little more than the contrived deceits of an oddly well-respected but dishonest banker, who continues to operate in a very dishonest way, hiding his books from the American people (fighting FOI audits all the way to the Supreme Court) in order to protect the best interests of his multi-national shareholders.

Certain financial analysts have a slightly less reverant opinion of Bernanke and the FED’s egregious failure to contain systemic risk and foster full employment. Frankly, Al Queda has done a better job of promoting religious tolerance and peaceful diplomacy than the FED has in guiding the US economy into safe harbor. In Martin Weiss’s recent article, Bernanke Hallucinating, he at least accurately depicts the current state of economic collapse, specifically debt buildup and liquidation, under the so called “leadership” of Bernanke’s interest rate decisions and massive post credit- collapse interventions:

… in proportion to GDP, the debt buildup before the (first Great) Depression — as well as the debt liquidations during the (first) Depression — were not as large as they are now.

Forget about all past promises of a double dip recession. Don’t even expect the current situation to compare to the FIRST DEPRESSION enabled by the FED.

For the remainder of 2010, it will slowly filter through the mainstream media how the Fed, together with its TBTFs, created a massive series of ficticious wealth bubbles, from tech stocks to mortgage backed securities, as the last hurrah of a failed fantasy voyage that we embarked upon back in 1913 when the Creature was conspicuosly contrived.

A Creature which unleashed not 1 but 2 Great CREDIT COLLAPSE cycles, with the second dwarfing the first–and ending with a face-off against the United States Supreme Court, to either continue it’s opaque operations, or reveal to the American people it’s true charter, its true objective, and the means to which it justifies those nefarious ends.

Until then, if the mainstream media could dislodge it’s permanently impacted nose from Ben Bernanke’s ass, I think it would go far to restore some faith in the free market’s ability to finance some honest reporting, despite the Trilateral controlled Reuter’s agenda.

“No one knows what to do…” seems to be a recurring theme lately regarding the US economic outlook. The Fed has shot it’s interest rate wad, policy makers have again proven that Keynesian stimulus is a useless “extend and pretend” strategy, and everything else that’s been tried has failed, as we said it would nearly two years ago.

Now, some of the realizations we spoke of back in October of 2008 are finally coming to the forefront. For the first time in 2 years, “economists” are suddenly saying that we are NOT in a cyclical recession, but rather a masked depression. Double-dippers are now beginning to acknowledge that the only hump in an otherwise huge single dip was a dearly bought one, and we are now beginning to see the price paid for that temporary abatement.

We see a pending sovereign debt downgrade, more massive job destruction, unprecedented revenue collapse, bankrupt states cutting essential services, record numbers of unemployed on extension, record numbers of food stamp recipients, more taxes coming, more civil services on the chopping block, and a job market for teenagers consisting of burger flipping or shipping out to Afghanistan. Yes, if not for entitlements already in place, like food stamps, unemployment compensation, social security, medicare–and countless other programs not in place during the first depression–we would be seeing an America IN FAR WORSE SHAPE than the one we saw in the 1930′s.

Unfortunately that which masks the reality of our far worse economic condition today, something which we have called and continue to call beyond the scope of a depression, is the self-fulfilling debt exponentiator that future chronicles will site as the real cause for an economic disaster not yet named. This will not be referred to as a depression by future historians. We have yet to name it properly for the unprecedented disaster that it is.

So we can continue to shuffle bonds and treasuries and prestidigitate further with all sorts of useless financial slight of hand, but the age of paper shuffling for profit has come to an end, and these old tricks won’t help extend or pretend anything anymore. In the real world, the paper shuffling con isn’t putting food on tables.

When you’re in the sales department, the lifeblood of any organization, and you can’t make your numbers for this reason or that, you are let go. In the real world you don’t go to your sales manager and say, “I know we didn’t make quota again this month, but … we touched customers in new and meaningful ways”. Only the US government gets to change the way you count numbers when you don’t make them, and that is because they do not operate in the real world, where real jobs exist, that put real food on tables and real roofs over people’s heads…

So as long as we’re bogged down in reality, here’s another reality ”check” to consider. Aside from our predictions of two years ago all now coming about as we said they would, we are also one of the very few sources that has said, “We know what to do” and laid that plan out. Back then, we said that if this isn’t done everything that is happening today will come to pass, as it recently has, and here we are.

Here we are with “economists” and policy makers sctratching their heads saying they now don’t know what to do. They called us alarmists back then when we said we knew exactly what to do right here in Florida, and they scoffed at the idea that their recovery wasn’t coming. Now that it hasn’t come, and we are seeing exactly what we said would happen happen, isn’t it time to maybe try what the people who’ve been right all along said to do in the first place?

Will it still work? Yes it will, if you expect to try and somehow recover within the current monetary paradigm. But if you want to reject that paradigm, it will not work, and rejecting that paradigm is certainly on the table. One aspect of the current paradigm, the derivative swindle, must be rejected anyway. We never proposed that criminals could, or should be rewarded, and that their swindles should be bailed out. That was never part of our functioning economic paradigm.

But in the final analysis, you cannot apply the brakes after the trainwreck, you have to rebuild the train. And that’s not something the conductor generally can do all by himself.

Can America produce it’s way out of it’s non-productive descent into finance capitalism without the engine of world war behind it? That’s a good question to ask. Can America restore its honor? -its work ethic? -its values? -it’s traditions? -its character? -its greatness? Of course it can, if it can only face reality first. None of this can be accomplished under the fantasy paradigm of a world where criminals are being rewarded, where those who work the least are paid the most, where those who fail are bailed out by those who make personal sacrifices to get ahead, and subsequently never can because they are being robbed by the government sworn to protect them, so as to bail out the failures.

That is a fantasy world where a fantasy recovery fails to meet the test of reality: real food on real tables, real roofs over real heads. Real jobs, real productivity, real values – even real money, that’s worth the paper its printed on.

As the fantasy draws to an agonizing close, perhaps reality won’t be too painful a pill to swallow. It would have been easier to face 2 years ago, but as long as we are finally beginning to realize that it must be faced eventually, if we intend to live in the real world, perhaps now is the time to face it, and get serious about the only real solution anyone has ever offered.

Happy Friday!

With new heights in political ass-backwardness having been recently achieved by the anti-American, anti-success, anti-leadership flotilla occupying the White House, some commentary is overdue. But first … we interrupt Obama’s regularly scheduled vacation to bring you the following revelation concerning his “religion” and reports of a growing perception that he is “Muslim”, including all manner of speculation as to how and why this perception exists.

Despite the rhetoric, all confusion can be quickly swept away simply by understanding the man in terms of what he truly is.

First and formost, he is the logical end-product of the great social experiment of the Bilderbergers, the CFR and the Trilateral Commission, and their avowed mission to permeate the four centers of power: monetary, political, academic and religious, with the key message of “globalism” as the supra-national, supra-sovereign authority destined to guide and govern in the technetronic era.

 … the Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power: political, monetary, intellectual, and ecclesiastical. 
- Senator Barry Goldwater – With No Apologies

So let us take one of the four centers of power: ecclesiastical, and explore Obama’s “position” in light of this influence.

Obama is a new age political elitist, educated by the intellectual elite through Trilateral-funded programs and academic institutions–think tanks and foundations established more than three decades ago when this great experiment began.

As such, he see’s the utility of religion, and its usefulness in shaping societal values, from a much higher and somewhat dispassionate perspective than those actually practicing it. This is why he thinks of Christ, for example, as a historical figure, moreso than a true spiritual connection. Obama represents the tolerance of intellect, standing above all religions, accepting all religions as a true global citizen.

In truth, he would probably admit to being mostly agnostic, as his father was, if it was politically expedient. But he can probably also admit to certain Christian leanings, inasmuch as the religion being taught by his clerical mentors, past and present, appear fully immersed in the progressive theological concepts of social justice and collective salvation. Here again we see the Trilateral influence of socialism as a precursor to globalism’s influence upon religion. Not that difficult to understand–not sure why this appears confusing to those who might simply pronounce him a Muslim. He is pan-ethnic, pan-national, and pan-religious.

He is OBAMASTEIN, Son of Trilateralism, hermaphrodite bride of Globalism, a patchwork creature of all religions and all ethnicities across the globe, sewn together and brought to life by the social experiment of the Trilateral Agenda and it’s mad scientists of the technetronic age.

Mary Shelley’s Dr. Frankestein was a piker by comparison.

Obamastein LIVES!

If we take Obama’s political position, we see the same muti-faceted conundrum. Economically, he appears under the spell of globalist interdependence theory, as acclaimed by his appointee, and Trilateralist, Tiny Tim Geithner, but there is still enough socio-political-economic diversity in his character to keep it confusing.

His alignment with the Trilateral agenda on all four cornerstones of societal influence is almost genetic at its core. One needs only to explore the global financial oligarchy’s present command over its new economic order to understand that Barack is the post-America Obamanation, born of the globalist agenda articulated by David Rockefeller and Zbigniew Brzezenski–whose egos betray their stealth–in their many statements famously quoted as the core mission of the Trilateral Commission since it’s inception back in 1973, when Barack was coming of age, and coming into the understanding of his multi-ethnic heritage, his international upbringing, his globalist persepective, and his natural alignment with the Trilaterals, an upbringing fully funded by the Commission and purposefully groomed over 35 years of influence, all the way into the post-American, globalist presidency.

There’s nothing befuddling about it. It’s as simple as that. The only wildcard is his own ego, and what it might betray.

The only place where an actual “double dip” occurs in America today is down at your local Baskin Robbins. This fallacy phrase gets as much buzz lately, droning on through the mainstream media, as last Spring’s ”green shoot” sound-bite, just with less credibility.

One could accept the concept of a double dip Depression, if only the recovery propagandists would admit that over 12 trillion in CONfidence payments has been set aside in the last 18 months, merely to buy a temporary and unsustainable recovery pretense.

Remember Bush and Paulson in white face, spitting and drooling over the end of the world? That was back in the fall of 2008, when the US decided to make the single greatest tactical error of it’s political lifetime: to openly reward failure. For the first time in our lives, we witnessed government’s willing descent into the trap set by the global banker’s dictatorship to perpetrate the greatest hoax ever contrived upon the world’s working classes, using them to bail-out losses in a quadrillion dollar global racketeering scheme.

Sure it’s been done before, by increment and stealth, but never so openly, brazenly and massively as this:

The amount the Fed and the U.S. government lent, spent and guaranteed to stem the recession and rescue the banking system peaked in March 2009 at $12.8 trillion, most of it following the September 2008 bankruptcy of Lehman Brothers Holdings Inc.

That anti-American, fascist turn of events, staged to seem as a capitalist trap set for a lame duck exiting administration, set Americans up for the great hope and change that never came–and the gradual realization that this administration is merely a placeholder in a captured government with a globalist, trilateral agenda.

We winced as we saw the multi-national financial cartel, and their global central banks, extort taxpayer billions through AIG to criminal casino’s of fraud in Germany, France, England, Ireland, Switzerland, Spain – as well as our BIG 5 international 2big-tuh failures with New York corporate addresses: all major shareholder’s of the FED, which provided “liquidity swaps” to foreign swindlers to fund dollar denominated derivative claims and collateral calls.

We saw the FASB change accounting rules to allow the financial criminals who funneled our privately negotiated home mortgages into pools of international betting chips on the open market, without our approval or knowledge, to trade and leverage them up to ridiculous levels of ficticious wealth, then forcing us to make good on those fraudulent claims, against the threat of further home value collapse due to their criminal abuses–for which few are prosecuted and most are enriched beyond our wildest expectations.

So lest we might be distracted by Shari’a, the brutal hate morality of barbaric “honor killers” of women, being touted by our State department as a religious expression to be tolerant toward, we might want to consider for a moment that meanwhile, BASICALLY NOTHING HAS CHANGED. THE SOCIALIZED BAILOUT OF THE GLOBALIST COLLECTIVE CONTINUES.

And that being the case (aside from the fact that Paulson’s old competitor Lehman was eliminated) we should understand that THERE IS ABSOLUTELY NOTHING DIFFERENT TODAY, THAN IN SEPTEMBER OF 2008, EXCEPT THAT THINGS ARE A LOT WORSE.

UNEMPLOYMENT: WORSE, GDP: WORSE, DEBT: WORSE. HOUSING PRICES: WORSE, CPI: WORSE, FORECLOSURES: WORSE, DEFICIT: WORSE, CURRENCY STABILITY: WORSE, SOVEREIGN DEBT RATINGS: WORSE

If the above SEEMS ANYTHING AT ALL like a double dip recession, we need to talk about whatever it is you’re smoking, because there is a growing demand for shit that powerful. And whenever you do regain consciousness, you might want to TAKE ACTION  before they value-add tax it at the greenhouse, sin-tax it at the head shop, carbon tax it on the afterburn, securitize your stoner carbon footprint, leverage it, rate it better than sex with Angelina Jolie, trade it on the open market and extort the difference between that and the morning after hangover on their balance sheets, with yet another taxpayer funded fantasy bailout.