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May 10, 2010

Guess who is going to be obscenely over-represented in the FED and the Congress


OBAMA NOMINATES THREE TO FED BOARD,” reported the Wall Street Journal on April 29, 2010.
What the Journal failed to report is that all three appointees are cookie-cutter pro-Zionist Jewish Americans. This is hardly a surprise…the Fed has always been a Zionist-Jewish enterprise…and Obama follows ‘the rules’ carefully. He remembers what happens to those who go astray…Ron Brown, Senator Wellstone and so many others.
The nominees are: -1- Janet Yellen, president of the San Francisco Federal Reserve Bank, to be the board’s Vice Chairman; -2- Peter Diamond, MIT economist; -3- Sarah Bloom Raskin, Maryland state banking regulator.
One can’t help from wondering, is it required that everyone in the Fed be Jewish? Or to have Jewish connections and fealty? The answer is profoundly…and historically…obvious: unless you’re zionist kosher, you’re out of luck.
Janet Yellen’s Jewish husband, George Akerlof, is a consultant (!) to the Federal Reserve and various English banks like Barclays…and invented their paper Gold and developed algorithms for ‘managing’ (rigging) currency markets. He won a Nobel prize essentially for that.
Peter Diamond is hailed by American Jewry as an “influential Jewish economist” amongst the Gentiles. The general buzz from US Jewish bankers is one of similar celebration over Sarah Bloom Raskin’s nomination.


WHETHER OR NOT these ‘acclaimed’ financial ‘experts’ — along with the Fed’s Chairman, Ben Shalom Bernanke — will serve the American people or international Zionist interests, seems moot. History doesn’t lie. Yet no one appears to be complaining that the same kosher cabal which oversaw America’s financial catastrophe and looted the US to the core, will continue to run the show.
Although these rubber-stamped ‘nominees’ aren’t likely to alter the Fed’s current interest-rate policy, they will indeed reinforce the Fed’s activist bent to regulate “risk-taking” (a deceptive lie) across the financial system and tighten consumer regulation (which will ultimately restrict consumer credit options.) These responsibilities willexpand the Fed’s powers once Congress passes Obama’s Finance Reform bill…yet one more incredible, unconstitutional outrage.
“The Federal Reserve system is going to be reshaped,” said Vincent Reinhart, a former top Fed staffer now at the American Enterprise Institute. “The new governors will certainly be activist in their ability to set regulations and enforce those regulations.” Reshaped? That’s like re-shaping cookie dough…it’s still makes cookies no matter how you lay it on the baking sheet.
Who can state it more clearly than a propagandist from the Jewish-run American Enterprise Institute? “Regulations” (more of them, dear American sheep) will be “enforced” upon the American goyim by Zionist Jewish Federal Reserve Governors…who bask in ecstasy over their ability to dominate most major American affairs.


BEHIND CLOSED DOORS

“THE FEDERAL RESERVE IS THE CHIEF CULPRIT BEHIND THE ECONOMIC CRISIS,” declared patriot hero Rep. Ron Paul when introducing his Federal Reserve Transparency Act to the House of Representatives on February 26, 2009.
“Since the Federal Reserve Bank’s creation in 1913 the dollar has lost more than 96% of its value,” Ron Paulcontinued, “and by recklessly inflating the money supply the Fed continues to distort interest rates and intentionally erode the value of the dollar.”
The bill, although it remains hamstrung in the Senate and voted against by many Jews in the House, (and would doubtless be vetoed by Zionist-owned Obama), is Ron Paul’s attempt to pry open the mouth of Ben Shalom Bernanke who refuses to tell the American people to whom he doled out $2 trillion in bailout funds. Think about that. This creep has given away TWO TRILLION of YOUR money and refuses to say where it went. And Americans do nothing about it.
Bernanke, who alleges that disclosure would cast “a stigma” on recipients (what BS), is challenged by Ron Paul who says that the American taxpayer has a right to know where their hard-earned money went.
Efforts to break the Fed have been tried before but the sad truth is the Zionist-Jewish banking cartel has far, far too much power over the entire Zionist bought-and-paid-for US political arena.



IN 1993, the Head of the House Banking Committee, Rep. Henry Gonzalez of Texas, authored legislation calling for an independent audit of the Federal Reserve System’s operations.
After getting House and Senate approval for his bill and stepping up his attack on Fed Chairman Alan Greenspan for “failing to provide” essential documents concerning its check transport system, President Clinton intervened and turned down the legislation. His reason? Clinton claimed that ongoing audits would “run the risk of undermining market confidence in the Fed.” Comrade Clinton follows orders well.
Responding to Clinton’s objection to an audit, the fierce adversary of the Fed, Murray Rothbard, contended: “What is going on here? Why does market confidence depend on assuring far less scrutiny than is accorded keepers of military secrets that might benefit foreign enemies?”
Today, in light of Ron Paul’s stalled legislation, we might ask ourselves the same question, “What IS going on here?” But so long as the Jews who operate behind closed doors at the Federal Reserve refuse to disclose their secret manipulations — “We, The Cattle” will never know.


KOSHER KONNECTIONS

PRESSING FOR CONTINUITY, Comrade Obama is now “prodding” his White House economic team to “remain with his administration” until the economy is on a stronger footing.
“The recovery is still shaky,” said Chief of Staff (and ultra Zionist) Rahm Emanuel, “and with high unemployment this is not the time to have a turnover. The president desires to have continuity in his economic policy.”
For now, Obama’s economic-team members once seen as on their way out appear to be staying put. These include: -1- Valerie Jarrett, Special Advisor To The President; -2- Peter Orszag, Budget Director; -3- Larry Summers, National Economic Director; -4- Timothy Geithner, Treasury Secretary; -5- Robert Rubin, Special Advisor To The Treasury; -6- Jason Furman, Director of Economic Policy.
“Continuity” is certainly assured within the Obama economic team with a seamless unity existing between the White House corridors and the halls of the Federal Reserve Board of Governors. It is a pernicious, cohesive Zionist chain which links money, control and power to a Jewish banking and financial continuum long existing in high places in the American political system.
THE SENIOR FELLOW of this Jewish chain, is Robert Rubin, who recently said he “deeply regrets” he didn’t see the 2008 financial crisis coming in his role as a $15 million per year chief at Citigroup.
“All of us involved, whether financial firms, regulators, ratings agencies, and analysts missed the powerful combination of forces at work and the serious possibility of a massive crisis,” Rubinadmitted. (Right…they just couldn’t see it coming.)
With Rubin’s confession now made public, some American cattle (chattel) are asking, “Are the Jews who led us into the economic mess the best ones to lead us out of it?” (Uh…sure…let’s have Gangster Group A replaced by Gangster Group B.)
Obama, in appointing three more Jews to the Fed and keeping a host of their synagogue buddies at the White House, would answer with a ringing and pre-ordained “Yes.”

_____________________________________-


Record Number of Jews slated for next U.S. Congress


45 Jews to take the oath of office: 32 in the House of Representatives and 13 Jews in the Senate.
By The Forward and Brett Lieberman, Rebecca Spence 

When the new Congress debuts in January 2009, a record 45 Jews will take the oath of office: 32 in the House of Representatives and - regardless of the outcome in the still-contested Minnesota election - 13 Jews in the Senate.
Among the three newcomers to the House are a young, gay, multimillionaire entrepreneur; a seasoned veteran of New Jersey's rough-and-tumble politics, and a wealthy attorney who poured $2 million of his own money into a raucous campaign that now gives him the right to say he represents Mickey Mouse.
And even with all that, the record is bittersweet for those who work to elect Jews to public office. Some high-profile races fell short: Losers included Ethan Berkowitz at the hands of longtime Rep. Don Young in Alaska, blind rabbi Dennis Shulman in New Jersey and Josh Segall in Alabama.
But those who won bring along their own share of news. Jared Polis, 33, a multimillionaire Internet entrepreneur who will represent Colorado's 2nd District, is the first openly gay non-incumbent male to be elected to the House of Representatives. (Barney Frank - who, notably, is also Jewish - came out after serving several terms.)
Polis made his fortune, estimated between $150 million and $200 million, while still in his 20s. The Boulder native, who served on the Colorado State Board of Education, founded BlueMountain.com, an online greeting card company that spun off from his parents' business, and sold it in 1999 for a reported $780 million. Polis also founded and sold the florist Web site Proflowers.com.
In recent years, Polis has devoted the bulk of his time to his philanthropic endeavors, with a focus on education. In 2004, he founded the New America School, an English-language school for new immigrants. There he took an unusually hands-on approach, serving as New America?s superintendent until last year.
Polis won a tough primary battle in a largely Democratic district that includes Denver suburbs with a growing Jewish population. According to David Shneer, director of the Center for Jewish Studies at the University of Colorado at Boulder, the Jewish population of the Denver metro area grew by roughly 40% over the past 10 years. Polis' district includes the liberal enclave of Boulder as well as other Denver suburbs, though not the capital city itself.
Polis, who handily won the general election with more than 60% of the vote, said that neither his religion nor his sexual orientation cropped up much during the campaign. "I think they were both non-issues," he said. "The issues of most concern to voters in our district were the war in Iraq, affordable health care, improving our schools."
Still, both of those factors did come into play in recent weeks, when Polis received a "frantic" e-mail from a Barney Frank biographer who wanted to know whether he was left-handed. Why? As Polis explained, the biographer was working on a book titled "Barney Frank: The Story of America's Only Left-Handed Gay Jewish Congressman." If Polis were left-handed - which, he reassured the biographer, he is not - his election would have discounted the book's title.
Polis is a member of Congregation Har HaShem, Boulder's only Reform synagogue. The congregation?s senior rabbi, Deborah Bronstein, said that Polis embodies Jewish values. "He takes a lot of personal concern in nonprofits that have to do with helping people get ahead who might not otherwise," she said.
Where Polis brings a youthful and entrepreneurial zeal to office, John Adler, 49, brings 20 years of elective experience to the job of representing New Jersey's 3rd District, a seat that no Democrat had won since 1882. Adler, who spent the past 16 years in the New Jersey State Senate, where he was assistant minority leader from 1994 to 2001, won the seat of retiring Rep. Jim Saxton.
Residents of the South Jersey district, which includes Cherry Hill - where Adler lives and was a former councilman - and Ocean and Burlington counties, will have a stalwart supporter of Israel in their new congressman. Adler, who says he has been Jewish "virtually my entire adult life," converted from his Episcopalian faith in 1985 after meeting his wife in law school. He has served on the New Jersey-Israel Commission, which helps foster cultural and business relations between the Garden State and Israel.
In the State Senate, Adler cultivated a reputation as a well-respected legislator and chaired the Judiciary Committee. According to Rutgers University political scientist Ross Baker, he played a central role in helping Governor Jon Corzine push state Attorney General Zulima Farber out of office after it was revealed that the latter had outstanding speeding tickets and a bench warrant against her. "He brings legislative skills that are applicable to the House, and I predict that he will quickly move to make himself unassailable in that seat," Baker said.
At least for now, Adler, a member of Temple Emanuel in Cherry Hill, says that his focus is on helping struggling middle-class families, a core theme of his campaign. "This is the first decade since the Great Depression that the middle class stepped backwards," Adler said. "I am [eager] to address problems that have been plaguing America the last few years or my entire life."
In Florida's 8th District, Alan Grayson found success in his second run for Congress, winning a seat that includes part of Orlando, including Walt Disney World. Grayson, the surprise victor of the Democratic primary, defeated incumbent Republican Ric Keller in what the Orlando Sentinel called the ugliest fight in Central Florida House races.
Grayson, a Bronx native who lost a 2006 congressional race, spent more than $2 million of his own money this year to win the seat considered part of a GOP stronghold. As an attorney, he sued government contractors responsible for defrauding taxpayers and for supplying defective equipment to American soldiers. Keller tagged him as an "ultraliberal" who would vote to cut off funding for troops in Iraq, but apparently the voters believed otherwise.
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Related (just in from ICH): Israel's Fated Bleak Future
By John J. Mearsheimer
 
No American president can pressure Israel to change its policies toward the Palestinians. The main reason is the Israel lobby, a powerful coalition of American Jews and Christian evangelicals that has a profound influence on U.S. Middle East policy.







 
Israel is primed for a war on Iran, a deputy to Prime Minister Benjamin Netanyahu said Monday, in a rare break with his government's reticence as world powers try to talk Tehran into curbing its nuclear plans.

 
31 members of the OECD unanimously voted in favor of accepting Israel as a member of the group.

The Onion Editorial Cartoon: May 10, 2010

The tangled web that The House of Global Warming was built on


Joanne Nova -  inthesenewtimes - May 10, 2010
May, 2010
Thanks to Glenn Beck, we get bit more insight into the tangled web that The House of Global Warming was built on.
Who would have thought? Goldman Sachs has been working hard to save the environment for years.
Generation Investment Management (GIM) was founded by Al Gore, and a few friends, which included David Blood (former Goldman executive), Mark Ferguson (Goldman) and Peter Harris (Goldman). They are the fifth largest shareholder in the Chicago Climate Exchange (CCX). Then in 2006, when the CCX needed some extra funding, who should step up to buy 10% of the company – Goldman Sachs.
CCX is an exchange that won’t be doing a heck of a lot if carbon trading doesn’t become mandatory. All of these players have a vested interest in Cap N Trade legislation.
But it’s not just Goldman Sachs getting in on the deal to make money out of the trading-scheme-based-on-thin-air.
In 2001, a man was apparently working on a device (?) to make carbon trading possible. He filed a patent, then died. His wife onsold this patent application — to Franklin Raines, the CEO of … wait for it, Fannie Mae. The same CEO who has committed massive accounting fraud.
Now the story gets more slippery: In 2000 the Chicago Climate Exchange was helped to get started by the Joyce Foundation. It’s a charity set up years ago, that now manages around a billion in funds. Here’s how Beck tells it:
The Joyce Foundation is like the George Soros’ TIDES Foundation. In fact, it’s actually bigger than TIDES and even funds TIDES. Think of it as a place where uber-rich and powerful liberals like to dump their money into, so the cash can be spread around to their pet projects without a direct link.
There was one influential member on the board of the Joyce Foundation at the time the Chicago Climate Exchange got its seed money; someone instrumental in steering the funds towards the creation of the Chicago Climate Exchange. They were on the board from 1994-2002. The founder of the Chicago Climate Exchange, Richard Sandor, said that he “knew (this person) well,” which is perhaps how the money was awarded to the Kellogg Graduate School of Management, where Sandor was a research professor. I’ll get back to that person in a minute.
Who could it be — that one influential member of the board, who was active in getting the CCX started? Apparently it was a man named Barack Obama.
And that patent application owned by the Fannie Mae CEO? It was finally approved by the patent office on Nov. 7, 2006. Coincidentally the day after the Democrats took control of Congress.
So now, Fannie Mae, who is congressionally mandated to “make housing more affordable,” is poised to reap billions on a system that has nothing to do with housing except for that it would make housing costs go up.
There’s more:
Remember when Fannie purchased risky mortgages from banks, bundled them together and sold to investors as mortgage-backed securities? And then the housing market was absolutely destroyed? Well, former Fannie VP Scott Lesmes was responsible for that bundling.
Well, here’s the good news: Not only will this new carbon trading “system” try the exact same bundling method (except with air); they are using the exact same guy: Scott Lesmes.
The full Glenn Beck piece. He has challenged the media to report and investigate these connections…

Could this be why Transocean insured the Deepwater Horizon rig for more than it was worth?


Inquiring minds would like to know!
NOTE Via Avedon. For how Transocean made money on the explosion, see here.

you can keep your cake and eat it too: just riot!

Interesting point of view. Rioting works, so everybody should start to riot now: 

The message from the Eurozone today is clear -- if you rack up massive amounts of debt which you can't pay, don't even think about trying to get your financial house in order.
Riot instead. Throw firebombs at police, and use your violence to scare neighboring countries into paying your bills. They'll do it in the name of stability.
That's the victory Greece just won and if it was hard to make significant austerity measures happen there before, now it just seems stupid for Greece to do so. Persuading eurozone nations to bail you out is an easier proposition than cooling mass riots which will erupt if tough austerity measures are announced.
If it stopped here it wouldn't be so bad, but don't think other Eurozone populations haven't notice the victory of Greek rioters.
Pushing through fiscal discipline just became a lot harder in nations such as Spain or Portugal, in addition to Greece. Expect more riots and less fiscal responsibility, because riots have just been rewarded. Right now it seems like a necessary evil, but the day heated anti-bailout riots happen in nations such as Germany or France is the day intra-European politics becomes extremely ugly.

Join the conversation about this story »

ECB to Buy Bonds In Secondary Market to 'Address Severe Tensions In Certain Market Segments'

Just in from Jesse:



The limit to the ability of a central bank to create money is the acceptability of the underlying bonds and currency.

When a central bank turns to buying the bonds in order to support their price, or more properly the interest rate paid, this is the beginning of the end, the point at which the national currency becomes little more than a Ponzi scheme, creating more money to pay the interest on the old money.

Now both the US Federal Reserve the Bank of England, and the ECB have fallen into this. We are seeing the controlled demolition of the fiat currencies of the developed world.

Bloomberg
ECB to Intervene in Bond Market to Fight Euro Crisis
By Gabi Thesing, Jana Randow and Simon Kennedy

May 10 (Bloomberg) -- 
The European Central Bank said it will buy government and private bonds as part of an historic bid to stave off a sovereign-debt crisis that threatens to destroy the euro.

The ECB wants “
to address severe tensions in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy,” the central bank said in a statement today, minutes after European finance ministers announced a loan package worth almost $1 trillion to staunch the market turmoil.

The central bank said it will intervene in “those market segments which are dysfunctional,” signaling 
it views the recent surge in some of the region’s bond yields as unjustified. Policy makers are seeking to restore confidence in markets and protect the economy from a double-dip recession. The bank said the moves won’t affect monetary policy and the resulting liquidity will be reabsorbed.

“They are not cranking up the printing presses,” said James Nixon, co-chief European economist at Societe Generale SA in London. “This is a much more targeted, surgical approach. 
They buy the duff stuff that no one in the market will touch...”

...
While the ECB cannot buy bonds directly from governments, the euro’s founding treaty doesn’t ban it from doing so in the secondary market, providing the bank with some room to execute today’s plan. The bank’s council will decide the scope of the intervention.

Bundesbank President Axel Weber said May 5 that the threat of contagion from Greece’s fiscal crisis didn’t merit “using every means.” Without referring specifically to bond buying, he said “measures that damage the fundamental principles of the currency union and the trust of the people would be mistaken and more expensive for the economy in the longer term...”

High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States

Other must read of today:
By David DeGraw & Max Keiser, AmpedStatus Report

The following article is the third-part of a six-part report titled: “The Financial Oligarchy Reigns: Democracy’s Death Spiral From Greece to the United States.” The full report will be posted later today.
In the aftermath of Goldman Sachs’ public flogging before the world in Congress, and while under investigation, on the very day that Congress was voting on the “break up the too big to fail banks” amendment and cutting behind the scenes deals to gut the audit of the Federal Reserve, the stock market had its greatest sudden drop in history, plummeting 700 points in ten minutes - shades of September 29, 2008 all over again.
If you recall, back in September ‘08, as Congress was voting down the first bailout, the big banks made the market plunge a record 778 points in one day, fear and panic then led Congress to pass the bailout. Trillions of our tax dollars, the money that we desperately need to keep our society functioning over the long run, then went out the window and into the pockets of the very people who caused the crash.
What happened on September 29, 2008 will go down in history as one of the greatest acts of terrorism ever.
9/29/08 proved that when you have so much power concentrated in the hands of a few, you can manipulate a computer algorithm and make the market and economy go which ever way you want it to go. So on 5/6/10, just as the power of the big banks was threatened again on the floor of the Senate and a deal on auditing the Federal Reserve was being negotiated, in came a sudden and unprecedented ten-minute 700 point market drop. A precision-guided High Frequency Trading (HFT) attack to show Congress who’s boss.
If you think the massive sudden drop happened because one lowly trader hit one wrong button, if you actually believe that the entire stock market can plunge because of one mistaken key stroke by a low level trader, you are stunningly naïve. I hate to burst yourbubble, but this was a direct attack.
In a market where 70% of all trades are executed by computer algorithms via High Frequency Trading (HFT), Goldman Sachs has the power to make the market crash or rise at will. In fact, Goldman has a major Weapon of Mass Destruction in its Program Trading monopoly of the New York Stock Exchange, as Tyler Durden described on Zero Hedge:
“Goldman’s dominance of the NYSE’s Program Trading platform, where in addition to recent entrant GETCO, it has been to date an explicit monopolist of the so-called Supplementary Liquidity Provider program, a role which affords the company greater liquidity rebates for, well providing liquidity, and generating who knows what other possible front market-looking, flow-prop integration benefits. Yesterday [5/6/10], Goldman’s SLP function was non-existent. One wonders - was the Goldman SLP team in fact liquidity taking, or to put it bluntly, among the main reasons for the market collapse….
… here is the most recently disclosed NYSE program trading data….
What is notable here is that of the 1.4 billion in principal shares, or shares traded for the firm’s own account, Goldman was the top trader by a margin of over 100% compared to the second biggest program trader.
We have long claimed that Goldman is the de facto monopolist of the NYSE’s program trading platform. As such, it is certainly the case that Goldman was instrumental in either a) precipitating yesterday’s crash or b) not providing the critical liquidity which it is required to do, when the time came. There are no other options.”
For further investigation, I turned to Max Keiser, who has written and authored similar Program Trading and HFT computer algorithms. I asked him if he thought this was an attack, here is what he had to say:
“May 6th was an unequivocal act of domestic financial terrorism in America. A day that will live in infamy.
To scare the lawmakers, themselves large owners of the very banks and stocks that they are supposed to be regulating, a financial Weapon of Mass Destruction was put to their head and they acquiesced.
As the inventor of the continuous double-auction, market-making technology (VST tech. US pat. no. 5950176) that is referenced 132 times by program trading and HFT patents since 1996, I can tell you that Goldman, JP Morgan and the gang simply pulled the ‘buys’ from their computer trading programs and manufactured a crash. And when the coast was clear, and it was clear the politicians were not going to vote for anything that would break up the ‘too big to fail’ banks; all the ’sells’ were pulled from the computers and the market roared back.
This is a Manchurian Candidate market where program trading bots start the ball rolling in whatever direction Wall St. wants the market to go - and then hundreds of thousands of day-traders watching Cramer on CNBC jump on the momentum bandwagon and commit the crime for the Wall St. financial terrorists, who then say, ‘It wasn’t us, it was ‘the market!’”
On Friday, the next day, after the “break up the too big to fail banks” amendment was soundly defeated by a 61 to 33 margin in Senate and a deal was struck to eliminate key provisions from the audit of the Federal Reserve bill, Goldman was meeting with the SEC to work out a settlement in their case against them. Once again, Goldman proves that crime pays. Welcome to the New Mafia World Order.
Other than the two major operations carried out on 9/29/08 and 5/6/10, we must also recall a smaller attack on January 21st and 22nd of 2010, when Obama had a press conference and came out in favor of the Volcker Rule, which would have limited these HFT and “proprietary trading” schemes. At that time, the market dropped 430 points. Soon after this attack, all follow up talk on the Volcker Rule faded away and this reform has not been seriously addressed by Obama since then.
The bottom line, the United States has been taken over by a financial terrorism network. Let’s face it, we are all hostages of these financial terrorists and our puppet politicians rather be in on the scam than defend our interests. If these terrorists don’t get their way at all times, they have the power to throw their tremendous weight around and turn millions of lives upside down in a matter of minutes, and as they have shown they have no hesitation in executing that power, no matter how many millions of lives they destroy.
They set off this crisis with a wave of bombings in their initial Economic Shock and Awecampaign two years ago, resulting in massive devastation. Just to name a few of their greatest hits within the U.S.:
* 50 million Americans are now living in poverty, which is the highest poverty rate in the industrialized world;
* 30 million Americans are in need of work;
* Five million American families foreclosed upon, 15 million expected by 2014;
* 50% of US children will now use a food stamp during childhood;
* Soaring budget deficits in states across the country and a record high national debt, with austerity measures on the way;
* Record-breaking profits and bonuses for themselves.
Like other terrorists, they don’t use IEDs, they use CDOs. They don’t use precision laser-guided missiles, they use High Frequency Trading. They don’t have WMDs, they have derivatives. Let’s also not forget that they have toxic assets and dirty debt bombs just waiting to be deployed upon the American public once there is any true growth in the economy. Their nuclear arsenal includes hundreds of Trillions in secretive derivatives and hidden debt bombs, just ticking away, waiting to be set off… at their whim…

Euro Shock-And-Awe Will Create Huge Short Squeeze - Followed By Air Pocket And Market Collapse


A must read just published by Mish:


To defend the Euro, the ECB now is committed to throw up to $1 trillion at interventions in public and private debt.

What's next? Direct intervention in the stock market?

Bear in mind when this fails (which I guarantee you it will but I cannot state the timeframe), these clowns will think the reason was they did not throw enough firepower at it.

Step back for a second. The problems are too much debt, too much government spending, and a massively unbalanced global economy. None of these actions address any of the fundamental issues.
Short Squeeze Coming

Judging from the action in futures this evening, shorts are going to be forcibly ejected Monday, perhaps for several days.

This will create a huge air pocket underneath. We saw this action once before, in Fannie Mae and financials.
Flashback Wednesday, July 16, 2008SEC Restricts Shorting 19 Financial Stocks
Big brother has now decided to step in and force the price of all financial stocks up with this SEC short sale order.

So now the SEC is issuing short sale restrictions on financials because Bernanke says it's important for them to rise.

I have news for Bernanke and the SEC. This won't work. China had short sale restrictions on and it did not stop the Shanghai index from falling over 50%. Insolvency cannot be cured by short sale restrictions and many of those companies are insolvent.
All these short sale restrictions are going to do is create a vacuum. Once the shorts are driven out these shares will plunge. And who wants to buy a bond or provide capital knowing or even thinking share prices were artificially inflated.
Flashback Friday, July 18, 2008Short Squeeze In Financials Continues
Fannie Mae is up another 25% today to $13.66 in the wake of Selective Enforcement of Regulation SHO and Bernanke's statement: "It's important for Fannie Mae and Freddie Mac bonds and stocks to rise so they can keep raising capital and aid the mortgage market."

This move in financials is going to fail spectacularly once the panic buying ends, but for now the bulls are having a bit of fun.
That short squeeze was the beginning of a violent end.


It is a serious mistake to drive shorts from the market. Oh, it can work for a while. In the case of Fannie Mae for a week. Then what?

The hubris this weekend by central bankers is nothing short of amazing.

While the timeframe is unknown, these attempts to "defend the Euro" are highly likely to hasten its demise.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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1796 how-to human organs trafficking human rights Hungary hunger hyperinflation ICC Iceland Illuminati IMF imf riots immigration imperialism incoherence income distribution income tax India inequalities infiltration inflation inflationary depression information war insider trading insolvency instability insurgency intelligence International Criminal Court international political economy internet censorship internet warfare ior IP IPCC Iran Iraq Ireland IRS Israel israeli assets Israeli firsters Israeli killers israeli lobby Israeli Organ Harvesting israeli terrorism italy Ivory Coast jesuits jews JFK Jim Willie JPM k-waves Kazakhstan Keynesianism Kissinger kleptocracy Kosovo Krugman KUBARK Kurt Sonnenfeld Kyrgyzstan Land Grab Large Hadron Collider Larry Summers Latin America LBMA Lee Harvey Oswald legitimacy crisis legitimation lesser evilism Libya lies Limited Hang Out Lincoln Lisbon Treaty lobbying local currencies Lockerbie Logan Act lol looting lsd mafia Mali Manchurian candidates Mandatory vaccinations maquiladoras market manipulations martial law Martin Armstrong Medicare meltdown MENA Mend mercenaries Mexico MI5 Michael Chertoff Michael Hudson Middle East migrations Military Industrial Complex military research military spending military tribunals militias mind control mind tricks Minerva Research Initiative Minot missing nukes missile defense missing pathogens MKDELTA MKNAOMI MKSEARCH MKULTRA money money as debt money laundering money supply Mongolia monsanto Montenegro morgellons mossad msm Mumbai narco-states narcodollars narcotics national debt National Emergencies Act national emergency native Americans NATO NDAA neo-Malthusians neocolonialism neocons neofeudalism neuroscience NGOs Nigeria NLP Non-lethal Weapons Noriega North Korea Norway NSA NSPD-51 nuclear demolition nukes NWO odious debt Oil OKLAHOMA CITY bombing oligarchy OOTW Operation Ajax operation CONDOR Operation Fast and Furious operation Mockingbird Operation Northwoods operation paperclip Operation Strange Man opium Orwell outrages p2p currencies Pakistan Palestine Panama Panarin pandemics paper money Paraguay paranoia paranoia pimping patents Patriot Act patsies pauperization peak oil pearl harbor Pennsylvania pensions Pentagon persuasion Peru pervs philippines Phoenix program piigs pimping Pipelinestan piracy Pirates plagues planned disasters Plum Island plutocracy PMCs PNAC poison pills Poland police state political economy political fakeries polls ponzi schemes pork Posse Comitatus Act pot poverty poverty business power elite pr0n predictive programming prepping primitive accumulation prison industrial complex prison population private debt privatizations problem-solution prohibitionism Project Artichoke Project Bluebird Project Censored Project MK/NAOMI Project Mockingbird project monarch Prompt Corrective Action Law propaganda prostitution protests provocateurs psy-ops psycho-police psychotronic warfare Ptech public policies qe qe2 R2P rabbis crackdown real wages regime change regulations relative disadvantage religion renditions renewable energy reserve currency resistance revolution revolution (how to) revolutions riots robots Rockfeller Roman Empire Rothschilds Rumsfeld Rupert Murdoch Russia Rwanda s510 sabbateans Salvador Option samson option saudi arabia sayanim SCADs scams scandals scares schemes SCO SDR secrecy secret algorithms Secret services sedition self-employment self-reliance serial killers sex scandals sheeple shock capitalism SHTF silver sixties slavery slums social conflicts social currencies social movements social research Social Security social spending socialization of costs somalia Soros sound money South Africa South Caucasus South Korea Southern Poverty Law Center Sovereignty Sovereignty Resolutions spain special economic zones spin spyware stagflation state of exception state secrets state terrorism statistics stimulus stuxnet submarines subprime Sudan suicides superbugs superimperialism suppressed technologies supremacist racist genocidal apocalyptic cults surveillance Survivalism SVADs sweden Swine Flu syria Taliban Tamiflu TAPI taxes tea party technocracy Tennessee TEOTWAWKI terrorism Thailand The Fourth Turning the left The Mogambo Guru Thirdworldization TIPS tiranny torture totalitarism toxic assets toxic waste trade deficit trade war treason Treasuries Bubble Tri-Border Area Trickle down trolls tsa tunisia Turkey uganda UK Ukraine UN underclass upper class US $ US army US bonds seized US debt US elections US gulags US hunger US secessionists US Treasuries US666 useful idiots vaccines VAT vatican Venezuela vets vietghanistan Vietnam violent conflicts virii Voodoo war war crimes WAR CRIMINALS war on drugs war party war pimps war propaganda warfare warfare state wars water WB wealth distribution web bot weed Weimar weird welfare white collar criminals White phosphorous WHO who rules Wikileaks wikipedia witch hunt WMD working poors world bank world economy world hegemony world reserve currency world trade WTF WTO WW3 xe Xinjiang Yemen Yuan Yugoslavia Zimbabwe zionism zionist trolls zious
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