Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Royal Bank of
Scotland Group Plc (RBS) each borrowed at least $30 billion in 2008 from a
Federal Reserve emergency lending program whose details weren’t
revealed to shareholders, members of Congress or the public…
They paid interest
rates as low as 0.01 percent that December, when the Fed’s main lending
facility charged 0.5 percent…
Credit Suisse borrowed as much as $45 billion…
Sachs’s borrowing peaked at about $30 billion…the program’s
loans to RBS, based in Edinburgh. Deutsche Bank AG (DBK), Barclays Plc (BARC)
and UBS AG (UBSN) each borrowed at least $15 billion…
Goldman Sachs, led
by Chief Executive Officer Lloyd C. Blankfein,
tapped the program most in December 2008, when data on the New York Fed
website show the loans were least expensive. The lowest winning bid at an ST
OMO auction declined to 0.01 percent on Dec. 30, 2008, New York Fed data
show. At the time, the rate charged at the discount window was 0.5
Sachs’s borrowing from other Fed facilities topped out at $43.5
Banks Crisis Gains on Secretive Loans”
Bob Ivry, Bloomberg.com, 5/26/11
Nice Game that! Borrow from the Fed for free
nearly and deposit at the Fed for Interest, or
Speculate to your heart’s content with near-zero-cost Money! Imagine
what you could do if you could borrow money at 1/100th of 1%.
Sorry! Players in this Game are limited to the too-big-to-fail Mega-Banks and
their connected Allies and Insiders. (Indeed, it is remarkable to us that
these loans were revealed in a Mainstream Financial Media Story, by
Bloomberg, no less!)
But consider the Serious Negative Consequences
(of unfettered Fed largesse to the Mega-Banks) to Investors-Citizens and
their Sovereign Nations.
‘irresponsible banking and irresponsible currency policy
This really drives
up commodity prices and in turn strangles growth in the United States and in
As for financial
institutions, Morici says banks ‘hold too much sway’ with their governments. It is
not that markets are not regulated enough, but rather that Wall Street is not
regulated properly. Why? Because wealthy bankers are able to ‘game
politicians so effectively’.
Barack Obama is no match for Jamie Dimon and the
global economy is very much at risk because of that’…
‘If we have
a global recession, it will because of irresponsible banking and
irresponsible currency policy in China and the failure of the Obama
government and the Merkel government to stand up to China and the
U. of Maryland
Professor Peter Morici quoted in
“‘Irresponsible’: Banks and China Put Global Economy at
Risk, Morici Says” by Stacy Curtin in Daily
identifies a Major Negative Consequence of The Fed’s ongoing QE and
China’s refusal to allow the Yuan to float freely – it
“really drives up commodity prices and strangles growth”. But the
Deleterious Effects of QE (whose Main arguably “Positive” Effect
has been to continue to richly support the Mega Bankers) do not stop there.
Jim Willie graphically outlines others.
“To make the
cost of money free encourages speculation in the most general systemic
sense… they cannot hike interest rates and exit the policy corner
without sending home prices into a fast acceleration downward. They will
bottom out 20% to 30% below construction costs…
Worse, a rate hike
would trigger a credit derivative series of explosions from the Interest Rate
Swaps… If the USFed holds steady, as they
must, they generate significant rising costs for everything from food to
energy to metals to cotton… The
current path lifts the cost structure to such a level that both businesses
and households are experiencing a pinch…
The USFed is caught in a gigantic bind, cannot raise rates,
and must endure the global price inflation problem that festers on the cost
side of the equation… The
government deficits are out of control. Few analysts prefer to point out how
the foundation for the global monetary system is supported by the gaggle of
crippled sovereign bonds…
The extended PIIGS
pen of nations, fully ruined and recognized widely
as ruined, do not have the tools to prevent rising bond yields. They
uniformly rise versus the German Bund benchmark… The Chinese were responsible for much of the Euro rise from 130 to
150, as they dumped USTBonds in favor of discounted
PIGS debt, later to be converted into shopping malls, commercial buildings,
and factories. Somehow, that factor did not appear on the US news
networks. The USGovt has tools, wondrous electronic
tools, which enable them at zero cost to fight off the barbarians at the
gate. It is the Printing Pre$$. Unfortunately, its backfire is a powerful
rising cost structure that has shown visibly in the high food & gasoline
costs. So hardly at zero cost!!...
The current ruse
disseminated widely is the End of
QE2 and no continuation of Quantitative Easing (aka debt
monetization). The ruse has no basis at all in reality. The USFed would have to find buyers for the USTreasury Bonds. They have been buying 75% to 80% of USTBonds since the end of 2010…
Of course the USFed will have a QE3. Of course the USFed
will continue QE programs. Of course the USFed will
keep the funny money flowing into every type of bond market except the
Municipal Bonds. The munis are not part of Wall
Street and the syndicate that sprawls to cover the USGovt
itself. So as the states and municipalities go further into a ruinous
condition, events work within their grand plan to consolidate power in New
York City, whose satellite in WashingtonDC was
captured on a somber September day in 2001. The agenda for munis is so simple. They wish to kill the worker
pensions, so that government workers have none, just like the general
population. No home equity, no upward labor mobility, no union power, no
pensions, a perfect world for the elite domination. Of course the USFed will keep pumping money into the stock market. With
all the flash trading, still over 70% of all NYSE trade volume, with all the
hardly hidden activity to support stocks by the Working Group for Financial
Markets (aka Plunge Protection Team), the vulnerable
stock market would dive like a cement rock. Perhaps the USFed wants to see the
S&P500 and Dow Industrial stock indexes take a frightening dive. That
would produce buyers of USTBonds, a point that the
financial networks consistently fail to notice as motive for withdrawal of
Clearly, a sudden
recognized slide in all things financial within the controlled US arenas
would create perfect political cover for the USFed
to announce QE3… Strangely,
perversely, the US stock market indexes are inversely correlated to the USDollar. The currency must resume its decline in order
to lift the US stock market…
The USFed will next spread fear from financial market
powerful downdrafts. They will assure stock market declines. They will invite
public response to lost mutual fund and pension funds (both managed and
personal). They will work to shake the masses down to the point that the USCongress begs them to return to a strong powerful QE3.
They will urge the USFed to make the QE3 even
broader, to include Municipal Bonds. The big US banks will push the USFed to cover their mortgage bonds that are exposed to
Shoots, Exit Strategy, No QE3”
Jim Willie CB,
Willie makes two Key Points required for
understanding Investor Antidotes to Fed QE.
That first point is that there must be, and will
eventually be QE 3. But what it will be called (and whether Overt and/or
Covert) and when it will be implemented – Aye, there’s the Rub.
The second Point is that that QE 3 etc. will
virtually guarantee continued Price Inflation, especially of Food and Energy.
Here it is important to note that the Official
Inflation Figures are Bogus and low – see Shadowstats.com chart below.
And former Reagan Budget Director indicates why
the U.S. Congress is not likely to solve the Problem.
David Stockman the
Budget Director in the Reagan Admin indicated why Congress is not likely to
help. He had some choice words in summary. He said, "The real problem is
the de-facto policy of both parties is default. When the Republicans say no
tax increases, they are saying we want the US government to default. Because
there is not enough political will in this country to solve the problem even
halfway on spending cuts. When the Democrats say you cannot touch Social
Security, when you have Obama sponsoring a war budget for defense that is
even bigger than Bush, then I say the policy of the White House is default as
well. That is the question that really needs to be understood better and
appraised by the bond market. Both parties are advocating default even as
they point the finger at each other."
A final Prefatory Point Well-Made by Daily Bell
is that the Ultimate Cause of our Worsening Economic and Financial Condition is
the Central Banks.
is the ECB mainly that is behind the European Union's "immoveable
rigor" when it comes to enforcing austerity measures on Greece, and
other EU PIGS as well. It is always this way with central banks. Their
members and operators tend to be the most holy about fiscal integrity because
they are the least so in practice.
The ability to
print money from nothing is the singular achievement of modern elites and the
single most ruinous practice of the modern state. It is responsible for most
if not all of the abuses of modern history, from torture, to war, to
genocide. Money-printing (not money) is at the root of all evil.
It is strange that
EU protests and Greek protests in particular have not in particular taken aim
at central bankers and their banks…
The ECB, for
instance, needs to be targeted intensively… Only by showing that Greeks
actually understand what is going on – and who is to blame –
shall austerity and other oppressive measures be overcome. That goes for
Ireland and Portugal (and Spain)…
Of course, we do
not advocate bombing of anyone under any circumstances; but showing the power
elite where the blame lies via peaceful protest could be remarkably
effective. One does not, in fact, need to sleep on sidewalks; or confront
army tanks of water cannon. One simply needs to start to organize peaceful,
sit-down protests outside the West's larger central banks.
Keynes said famously that not one person in a million understands the
fundamental crime of central banking, the ability to print money-from-nothing
that lies at its heart. Of course central banks have put up as many lines of
defense as they can… Central banking and the concomitant printing of
money from nothing is always ruinous (sooner or later) when blessed by law in
There are no good
central banks. There is only honest money – gold and silver – and
PRIVATE banking (run privately by private individuals) with or without
fractional reserve lending: money competition, in other words. What is
necessary if EU citizens want the "austerity torture" to stop is
for individuals to target central banks with peaceful protests.
Not private banks.
Not commercial banks. Not savings banks.
CENTRAL BANKS! ...
Here is the law,
and it is unassailable one:
MANIPULATION IS A PRICE FIX ...
EVERY PRICE FIX
DISTORTS THE ECONOMY ...
EVERY CENTRAL BANK
FIXES THE PRICE OF MONEY
BRINGS DOWN RUIN ON ALL!
Greeks to target the central banking class – not the so-called bankers
(private bankers) or those who facilitate the private sector – but
CENTRAL BANKS AND THEIR APOLOGISTS, the EU crisis would deflate in an
instant. It would not last for another word. Not a syllable. Not a
instantly when they proclaim they are "inflation fighters" –
as their ruinous fiat currency is the motor and engine of inflation.”
EU Protests Aimed at Central Banks?”
Daily Bell, 5/27/11
Issuance of U.S. Dollars, Euros or other de facto
Fiat Currencies in excess of any increase in GDP is Price inflationary.
That is, any such Excess Issuance,
diminishes the Purchasing Power of the U.S. Dollars, Euros, etc. already in
This results in Price Inflation, which we have,
for example, recently seen in Food and Energy.
Indeed, recent Food and Energy Prices Inflation
is mainly the Direct Result of The Private For-Profit Fed QE –
“printing” Money out of thin air for free and then Purchasing
U.S. Treasury Debt Instruments on which U.S. Taxpayers must pay interest.
Unfortunately, a Similar Analysis and
result is appropriate for other Fiat Currencies as well.
Among the Benefits claimed for QE were improving
the Economy and Reducing Unemployment.
But Neither of these has happened. The Real
Numbers** (as opposed to Bogus Official Ones) say otherwise.
**Shadowstats.com calculates Key U.S. Statistics the way they were
calculated in the 1980s and 1990s before Official Data Manipulation began in
Bogus Official Numbers vs. Real
Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported May 13, 2011
3.16 % 10.69
% (annualized April, 2011 Rate)
U.S. Unemployment reported May 6, 2011
U.S. GDP Annual Growth/Decline reported May 26, 2011
reported May 16, 2011 (Month of April, Y.O.Y.)
No Official Report 0.64%
Instead, most of the Fruits of QE and other Fed
policies show that the Fed’s Price Inflationary Largesse has mainly
helped the Mega-Bankers (and those connected with them), some of whom are
shareholders of the Fed itself.
Matt Taibbi of Rolling
Stone has done us all a service by exposing several Fed Outrages including
loaning $220 Million to an entity beneficial interests in which were owned by
the wives of the two Morgan Stanley Executives.
Now we learn that the U.S. Fed Made Mega-loans to
Mega-Banks (several of which are not even American) at rates as low as 1/100
%. That’s Right 1/100th (0.01%) of one Percent!
American, European, and other Investors/Taxpayers
who suffer the Price Inflation and Fiat Currency Purchasing Power Degradation
(i.e. Wealth Confiscation) resulting from these de Facto Gifts (who could not
make Money when borrowing at 1/100 % ?!?) need to consider Antidotes to these
Price Inflationary and Wealth Confiscatory Policies.
They especially need to consider them since (for the
aforementioned reasons) it is highly unlikely that Excessive Money Printing
(whether via QE 3 or 4 etc. or otherwise) will end. Therefore, Degradation of
the Purchasing Power of Fiat Currencies will likely continue resulting
eventually in Hyperinflation. Thus, we shall suggest some Antidotes.
Consider that The private-for-profit Fed and allied
Mega-Bankers around the world have put us all in a no win situation –
More QE and Food and Energy Inflation run even wilder. No more QE and the
Economy and Markets Crash.
Until the last week of April, 2011, an Investor
relatively new to the Markets would likely have concluded that one should
“Buy Gold and Silver for Wealth Protection and Profits”.
Today, after the Brutal Cartel Takedown of Precious
Metal prices since then, that Investor might have “Sworn off”
Gold and Silver as Safe Havens altogether.
What a pity! Such Takedowns provide Great
Opportunity to buy Gold and Silver “on the cheap” and in doing so
to buy their Wealth Protection and Profit Potential as well.
So the following are some Guidelines indicating how
Investors may take advantage of the Opportunities presented by Fed largesse
to the Mega-Banks and their Allies, and help avoid at least some of the risks
- Understand that a Cartel* of Central Bankers and their Mega-Bank
Allies have for years been suppressing Precious Metal prices, because
the increasingly widespread acknowledgement that Gold and Silver are the
Ultimate Stores and Measures of Value and thus delegitimize their
Treasury Securities and Fiat Currencies as such.
*We encourage those who doubt the scope and power of Overt and Covert
Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial
Institutions to read Deepcaster’s
December, 2009, Special Alert containing a summary overview of
Intervention entitled “Forecasts and December, 2009 Special Alert:
Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled
"Profit from a Weakening Cartel; Buy Reco;
Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S.
T-Notes & T-Bonds" in the ‘Alerts Cache’ and
‘Latest Letter’ Cache at www.deepcaster.com. Also consider
the substantial evidence collected by the Gold AntiTrust
Action Committee at www.gata.org, including testimony before the CFTC,
for information on precious metals price manipulation. Virtually all of
the evidence for Intervention has been gleaned from publicly available
records. Deepcaster’s profitable
recommendations displayed at www.deepcaster.com have been facilitated by
attention to these “Interventionals.”
Attention to The Interventionals facilitated Deepcaster’s recommending five short positions
prior to the Fall, 2008 Market Crash all of
which were subsequently liquidated profitably.
- Understand that it is now increasingly harder for The Cartel to
successfully suppress Precious Metal prices, because there is an
increasingly severe supply shortage of Physical Gold and Silver, especially
of Silver, because ever more investors are becoming aware that certain
Mega-Banks do not have the Physical Gold and Silver they claim and thus
these wise Investors are taking physical possession, and delivery.
As of June 1, 2011, Comex registered (Physical)
Silver dropped under 30 Million ounces!
- Nonetheless, The Cartel’s Price Suppression Regime is still
Potent as late April-early May Takedowns show, once again.
- Realize that these Price Suppression Interventions form Patterns
and reveal tendencies, aka Interventionals,
which are useful in forecasting the next Intervention. They facilitated Deepcaster’s earlier correct forecast that
Precious Metal prices would be taken down as they have been late
April-early May, 2011 (And that is why Deepcaster
recommended taking profits on Silver twice earlier this year)
- Develop a Strategy for Buying at Interim Lows during takedowns
(see below) and taking profits (at least partial profits near interim
- If one chooses to liquidate a portion of one’s Paper Gold
and Silver, do so before the Takedown begins in earnest
- Use Takedowns as an Opportunity to Convert Paper Silver and Gold
into Physical Silver and Gold. Not only do you get to buy these
Precious Metals “on the cheap” but you also give the Mega-Bank
Market Riggers Fits, because they have a greatly diminished supply of
these Physical Precious Metals, but unlimited quantities of
“Paper Gold and Silver”. Deepcaster
has recommended a particular Physical Form of these Metals which is resistant
- And if one wants to trade the Precious Metal Markets, the
following are important consideration:
- Get the Real Data from sources such as Deepcaster,
Shadowstats.com and GATA, among others
- Assume the Mainstream Media is not providing the Full Story on
Key Issues, or, indeed, at times is reporting “Manufactured
News”, and, therefore, Search for Alternative Sources, and/or
- Consider whether a particular Mainstream Media Story is
Reliable, or whether it is likely it is “Manufactured News”.
- Consider The Interventionals as well
as the Fundamentals and Technicals.
- Buy and Hold Rarely Works Anymore, as the last decades miserable
Equities Performance has Demonstrated
- Be aware of Tangible Resource Realities, especially, regarding
Water, Food and energy.
- Make Provisions for Personal Safety and Wealth Protection.
Multiple Black Swans can turn ugly very quickly.
- Finally, Work to Audit and then Abolish The Fed. President John
F. Kennedy took a Giant Step toward accomplishing this Goal by authorizing
the issuance of U.S. Notes to ultimately supplant Federal Reserve Notes.
After his death, U.S. Notes disappeared
Cartel Attacks on Precious Metals Prices has
resulted in Justified Anger arising not only from past losses unfairly incurred
as a result of these Cartel attacks, but also because The Cartel’s
Precious Metal Price Suppression Operation is but one Part of The
Globalist’s Regime which has resulted in Many Businesses, Individuals,
and Sovereign Nations around the World being increasingly mired in Unpayable Debts. (See Deepcaster’s
“Saving Investments, Sovereignty, and Freedom from The Cartel
‘End Game’ (1/13/11)” in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com.)
This Mega-Banker created “Global Debt
Prison” (to use Giordano Bruno’s Clever Term) has resulted in a
Decades-long Diminishment of the Purchasing Power of the U.S. Dollar and
other Fiat Currencies, thus working a de facto confiscation of the Wealth of
Investors, Savers, Taxpayers, and Retirees, as well as in the recent Dramatic
Inflation of Food and Energy costs, that is, of the costs of Goods Essential
BUT the Achilles Heel of the Mega-Banker Globalists
is Real Money – Physical Gold and Silver privately Possessed.
This increasingly Widespread Recognition of Gold and Silver as Real Money
increasingly delegitimizes the Mega-Bankers Fiat Currencies and Treasury
Securities, their source of Power and seemingly ever-increasing Wealth.
Therefore, Gold and Silver serves as an Essential
Bulwark of Precious Metal Investors’ Political and Economic Freedom.
Thus Personal Holdings of Gold and Silver are one
important Guarantee of Liberty itself for the Precious Metal Holders.
The aforementioned considerations indicate a Strategy
for Weakening The Cartel, Preserving Liberty, and Profiting.
The Strategy as it Relates to Silver:
Even the Mainstream Financial Media (while it still
rarely acknowledges ongoing Cartel Precious Price Suppression Attempts) does
occasionally acknowledge present and prospective Increasingly Severe Physical
Demand for Delivery and Personal Possession (i.e. not
in Bank Vaults!) of Physical increasingly supports the Paper Silver Price
even in the face of ongoing Cartel Price Suppression attempts. The Brutal
Fact is that Physical Silver is getting ever harder to obtain.
- The U.S. Mint Recently Announced it would suspend minting Silver
Eagles until a sufficient supply of Silver Blanks was obtained
- In 2010 Industrial Demand for Silver increased 19%
- Silver gets “used up” by Industry
- Monetary Inflation via e.g. Q.E. 2 (and eventually 3, etc)
continues to degrade the Purchasing Power of Fiat Currencies, thus
driving up the price of Real Assets including Silver, Gold and Other
Perhaps most important is what is not
reported in the Mainstream Financial Media. There are increasingly
well-documented Reports that large Silver Buyers on the Comex
who “Stand for Delivery” are being given “Offers They
Cannot Refuse” to agree to non-Delivery in return for a cash payment
plus a cash premium over the Spot Price.
Specifically, large Buyers are being offered 25%,
50%, and reportedly in at least one case, 80% Cash Premiums, over
their contract purchase price on condition they agree to non-delivery.
Couple this report with the Report that the largest
Alleged Silver Price Manipulator – JPMorgan Chase – has in recent
month sold short 25,000 Silver Contracts – one fourth of World Annual
Production, and one realizes that it would realistically be impossible to
actually deliver 25,000 Contracts of Physical Silver at 5,000 oz per
But The Source of Cartel Power has been and is their
ability to successfully suppress the Prices of Gold and Silver by Selling
increasing numbers of Contracts of Paper Silver (and Paper Gold) into the
Market, Contracts on which they cannot possibly actually deliver Physical.
However, Cartel Precious Metal Price Suppression
Power has been diminished in Recent Months by Revelations that Major
Repositories do not have the Physical Silver (and Gold) they say they have.
The Payment of Cash Premiums for Non-Delivery
(above) confirms this situation.
Finally, there is even evidence that certain Cartel Price
Suppressors have, or are, practicing what one might call Fractional Reserve
Precious Metals “Storage”.
Selling, that is, the Same Physical Gold or Silver
to more than one Buyer.
The Cartel Banker “Pitch” would be
“We will sell you Physical Silver (or Gold) provided you
‘store’ it in our Vault”.
Thereby, to the extent that Silver (especially) and
Gold purchasers demand Delivery of, and retain personal physical
possession of Silver and Gold, The Cartel, led by the private for-profit
Fed, is weakened, and Individual Liberty, Economic Health and National
Thus the Wise, Freedom-loving and Profit-seeking
Citizens will follow the advice of Astute Trader Dan Norcini:
Demand that those who sell you Silver and Gold “Stand and Deliver”.
Preservation - Wealth Enhancement
and Geopolitical Intelligence