If you bothered to read both the links in the post below, you no doubt caught Geoffry Batt’s reference to the oncoming Minsky moment:

What we hope to show with this exercise is that no course of action, even the one currently employed by the Fed, can continue in perpetuity: you can’t have infinitely low housing rates in an environment of exploding delinquency, as even more MBS are onboarded onto the taxpayer’s balance sheet.

The reality is that inflationary concerns will come to a fore, and have a material impact on rates, the second all these speculations are voiced in a more reputable arena. At that point the game will be up; the Fed’s attempt to continue the status quo will be over, and the relentless rise up in rates will begin, culminating with the long-awaited Minsky moment.

As we have said time and time again, the moment when the world’s largest central bank, which controls the supply and interest rate of the world’s reserve currency is FORCED into a rate response due to its final exhaustion of the monetization spiral, the impact on OVER ONE QUADRILLION DOLLARS in interest rate based derivatives will prove beyond any calculable reaction that the price-based system of the world’s collective economies is bankrupt beyond any means of monetary restitution. The calamity that ensues will not be a Minsky moment of impaired cash flow or credit restriction, but rather a complete repudiation of the price based system.

This will usher in the globalist Trojan horse of a consumption based or so-called “carbon currency” model, which the credulous have formerly supposed to be a Technocratic science fantasy.

The end of the world is also fantasy. But then so is the “recovery” propaganda–just look at the fundamentals and take your pick.

The only solution is a repudiation of the derivative bubble, and a Glass Steagall reconstruction under a sovereign credit system, backed by the productive economies of independent nation-states.

We can head this off at the level of our State’s, or brace for the impact of an economic world war between powerful opposing forces–battling between the imposition of these two opposing systems.

When the CDS end game plays out as an inverse return to the gold standard for the fraudulent paper pushers who claim to be the world’s “intellectual elite”:

U.S. credit default swaps currently trade in euros. After all, if the U.S. defaults, who will want payment in devalued U.S. dollars? The euro recently weakened relative to the dollar, and market participants are calling for contracts that require payment in gold. If they get their way, speculators on the winning side of a price move will demand collateral paid in gold.

AND … when the Fed’s “assets turned liabilities” render it an insolvent accomplice to their scheme:

–while there is no possibility of a run on the Fed, the reality is that the Fed now likely runs with a negative real capital balance, meaning that the US Federal Reserve is now essentially insolvent.

The need to say “I told you so” should forever be put to rest.

Communism, Marxism, Progressivism, Fascism, Corporatism, Capitalism. These words get tossed around fairly carelessly by people who speak to very large audiences, and often, both the audience and the speaker sound like they could use a little clarification.

When the context of the dialogue enters into Socialism or Marxism, or even Progressivism, the picture often painted is that of a weak and permissive society, where individual achievement is frowned upon, and where the members of society that fail, because they are lazy or stupid or just unlucky, are propped up by those more fortunate. The bailing out of failed banks for example is used to illustrate the general idea by those who would misrepresent the intent of these ideologies. Take Marxism:

Marx·ism
The system of economic and political thought developed by Karl Marx, along with Friedrich Engels, esp. the doctrine that the state throughout history has been a device for the exploitation of the masses by a dominant class, that class struggle has been the main agency of historical change, and that the capitalist system, containing from the first the seeds of its own decay, will inevitably, after the period of the dictatorship of the proletariat, be superseded by a socialist order and a classless society.

If in fact, the above sounds good to you, I am actually compelled to partly agree. But this is where confusion sets in. We do truly live in an era whereby the state (if by “state” we mean the Federal government of the United States of America) is an exploitative partner of the dominant class. The state abuses the wage earning class to the point of exploitation, and beyond, when it acts as an accomplice to economic extortion by the dominant “financial” class. This crosses over into Corporatism or Fascism when economic power literally privatizes the state, and this is what Marxism is supposed to overcome–yet it’s self-described enemy is Capitalism. Let me interject here one of the best quotes I’ve read recently that describes the staus quo in America:

Wall Street has financialized the public domain to inaugurate a neo-feudal tollbooth economy while privatizing the government itself, headed by the Treasury and Federal Reserve. Left untouched is the story how industrial capitalism has succumbed to an insatiable and unsustainable finance capitalism, whose newest “final stage” seems to be a zero-sum game of casino capitalism based on derivative swaps and kindred hedge fund gambling innovations.

Capitalism, the scapegoat or “fall guy” for Corporatism (or casino capitalism, or finance capitalism) cannot be blamed as a self-dooming ideology in today’s society, because it has rather been more or less abandoned in favor of–or we could say “taken over by”–a form of Corporatism. While history teaches us how and when Marxism and Communism were abandoned in their truest forms, and what remains today, it will be left to future chronicles to document how and when Capitalism was abandoned, as that is only now taking place in full force (and not without some resistance). Some might argue that the socio-economic political class structure in America today is already pure Corporatism. Or to put it more simply: the wealthy (hedge funds, banks, special interests, multi-national corporations) running a financial dictatorship:

Fas·cism
A governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.

The definition above has been partly defined by history–Nazism (a well known form of Fascism practiced most notably by Hitler and Mussolini, and marked by fervant nationalism). But we live in strange and evolving times. Todays’s Fascist dictator is replaced by an organized global power — central banks and multi-national corporations. We might call this Globalism, if by that we mean a global, corporate, economic, world dictatorship. Some might call it a New World Order, but we might simply call this, more appropriately, Corporate Fascism.

But back to Marxism, or Socialism. Marxism was supposed to be the friend of the proletariat, protector of the working man, cleansing away the predators and exploiters in Marx’s new Eutopia. But is Capitalism really the true enemy of Marxism? Or is it’s true enemy Corporatism? Or something else?

You see, when Obama forces the proletariat to buy private health insurance, he is both Marxist, and Corporatist. He is a Marxist, or a Socialist to protect the uninsured, including those unwanted, undeserving illegal aliens, but he is a Corporatist to forego the people’s single payer option over the profit-mongering, multi-national, private insurers. See how confusing this all is?

The confusion can always be traced back to the Trojan horse of Rockefellar’s “intellectual elites and world bankers”, who have for years falsly propagandized Capitalism to be Fascism, while actively practicing Corporatism. Capitalism is much closer to Individualism (in the sense that it was intended to be practiced by our founding fathers). This is the big, confusing LIE behind Marxism, and Socialism. They are false prophet ideologies, contrived by the ruling class, to defeat their true sworn enemy: Individualism. Because Individualism gives power back to the proletariat. And that is why America, once the land of opportunity, is so feared and hated by the Globalists.

After all the sophistry has run it’s course there is only one remaining constant above all: The wealth and power class will always exploit the working class, and the wealth and power they derive from that exploitation insures that they will strive to keep this predatory class structure in place. This is a self-perpetuating cycle. We may never see a truly “classless” society.

Capitalism worked quite well for nearly 200 years, for one simple reason: the realization that the human race can never truly achieve Altruism.

Yes, in some far distant future, if we are to survive so long, human beings could abandon greed, covetousness, selfishness, envy, hate, war and poverty. We could cure all known diseases and travel to distant galaxies. But you and I will never live to see the perfection of Altruism. And this is why Communism and Marxism failed - the human race is not ready for them, and we are arrogantly pretentious to imagine that we are. We can only support bastardized versions of these great societies, as false ideologies of the ruling class, distorted in design to exterminate individualism ….

Having said all that, I suppose what we really practice in America is in fact Confusionism after all, for we surely have abandoned Capitalism. It was a good run. Happy Friday.

What a joke. And soooo unpredictable that DOW, bouncing on such news.

Consumer Agency Within Fed Seen as Victory for Banking Industry 

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Now even a caveman (or a politician for that matter) must be aware that the international banking oligarchy owns its very own global central banking cartel, and that JPMorgan, Goldman Sachs, Bank of America, Citigroup and the rest of the Bailout queens own the FED. How’s that for independent regulatory authority? Wanna know how big a stake each bank holds in FED ownership? Just sort the TARP recipients from highest to lowest using the link to your left and you’ll get the idea.

So what makes this different from letting the banks simply “police” themselves? Nothing–they already do today. The banks have captured Treasury, they’ve captured the SEC, and their mystical, central bank Oracle’s control the money supply and interest rates of the entire world’s monetary system, like some cryptic, Pythian ritual of decadence–all to ensure their fraudulent schemes, to facilitate their looting of the public, and to enure to their bailout benefit at any collective collapse of CONfidence in their bubble skimming, extortion and protection rackets.

The banks are a spider, government it’s web and the working class a cocooned-up fly from which blood is drawn. Everything else is just theater–of, and for, the absurd. Like you really need Bloomberg to explain how this is somehow a victory for the banks. Oh, my head is spinning… But wait, there’s more. How about this knee-slapper:

It is clear in the current environment, and likely for a long time going forward, any entity that profits from another’s misfortune, in this case hedge funds versus Greece and the euro zone, risks being the target of public backlash, or worse, government retaliation.

Lions and Tigers and Bears OH MY. Lloyd Blankfein must be crapping his drawers at the thought of another public congressional scolding. We’ll have to play out a few more scams to cover the stock short (wink, wink).

Policy makers need to take stock that ”We the Sheople” are sharpening pitchfork tines and it isn’t just going to be a public service ”exit stage left” to a cozy Irish island paradise for Dodd, or to whatever golden parachute awaits Corker on this sell out. We aren’t so stupid that we don’t realize that your “retirements” are merely an aknowledgment of how cheaply you can be bought. For if your greed was so insatiable that you’d be willing to tough it out for the long haul and continue the unabated deception and cover-ups, why you’d have chosen careers as banker’s instead.