TARP Circulation

[chefmike]

SMDH...check this out:

http://theplumline.whorunsgov.com/st...ublic-transit/

[beandip]

One has to look at the underlying systemic problems of the FED to understand what is going on. What you see on CNN / and faux news is pure unadulterated bullshit. This disaster is manufactured. The underlying problem is greed. The sub-prime / mortgage "problem" is like a gnat on an elephants ass....it is what is being "sold" to J6P as a deflection to the real problem. The sub-prime bullshit is just a blip on the financial radar that J6P can wrap his sooperbowl watchin' / beer swillin / American Idol leech-fucking sponge headed brain around....as he watches a few of his neighbors lose their homes and figures...."whew...I dodged a bullet"....LOL

The real problem is the 60 trillion dollars of CDS's lurking out there.....that's 60T of bad paper. To put this in perspective 60T is literally more than the value of EVERY SINGLE THING on this PLANET. Wrap your head around that idea for a moment. Remember Warren Buffet stated a few years ago that derivatives were a "financial Armageddon.

You must understand that firstly the Fed is insolvent.

The Fed is a private banking conglomerate. The Fed could not care less what happens to the US or it's citizens. The Fed 's only concern now is the preservation of the Fed. What you're seeing is a financial chess game being played by the worlds banksters. Make no mistake....this is all or nothing.

Does anyone know that Bernanke went to Asia back in March of 2008...with his tin cup out and actually got 600B cash infusion for the Fed....at the same time that he was on TV telling everyone that the economy was doing fine? During the whole summer of 2008 he was lying like the shit bag that he is.

Why did he do this? Because the FED was running out of time to comply with the BASEL II agreement. All banksters know that they are lying sacks of shit. They all have "off market" books.... essentially a second set of books that they are not yet obligated to show anyone. BASEL II was an agreement signed by all of the worlds banksters years ago to slowly pry open their books open to each other. It's like this... since the FED was and still is a broke-ass organization...they need serious cash infusion to fill their drawers. failing to do so would be in violation of BASEL II thus they would essentially "default" on the agreement....and lordy, lordy, lordy.....they'd have to open their shit filled books all at once and let the rest of the world know that they are insolvent.

So the time line is this.... bernanke got a 600B "loan" from the Asian banks......in march.....that was not enough. When he made his now famous "We're 5 hours away from a complete financial meltdown" speech in front of congress......well, the real deal was he was 48 hours away from defaulting AGAIN on the BASEL II agreement !!!!!

So he got his 600B....and he and Paulson (another total leech-fuck crook, but alas...let's not get side tracked here)......basically bought a few more months of time. All they're doing is kicking the can further on down the road.
Look at what's happening now. China and Japan, who have been funding the US through the purchase of T-bonds..... are purchasing them at an ever decreasing rate. They see the Fed is broke with no way for the US to ever pay this money back. Never. We can not "grow" our way out of this economy. It is simply not mathematically possible. So Bernanke knows this, hence his bullshit idea he floated 3 weeks ago for the FED to issue it's own form of T-bonds.....but this is a phucking joke too. All the worlds banksters see now that the FED has no money. So what does this shit stain Bernanke want to do now? He wants another 900B to fill the FED's cash drawers for another 3 months....again kicking the can a teeny bit further on down the road. His only hope now it to take down every other baning institution OTHER than the FED..... the plan is to fuck everyone else up.... all the while hoping the FED will be just a little bit LESS fucked up.....thus having peoples / investors / organizations around the world flood the US with investment dollars.... both in businesses as well as purchases of more useless paper (T-bonds). Remember, it's "all in"now....

Bernanke wants to start and fund a "bad bank" with TARP II (Taxpayers Ass Raping Program). Here's the problem. We already HAVE a fucking "bad bank"....it's called the FED. Bernanke wants to wipe the FED's red ink off the books....and monetize the shit paper with our tax dollars. How fucked up is THAT?

Remember that Bernanke / the FED OWNS the US government...at least on paper. Our constitution states that only congress has the power to mint / regulate money (through the Treasury).....where as in actuality.... that "right" has been given to the FED.

Think about this: Does Congress or the Treasury set interest rates? No.

Bernanke is in the cat bird seat. All he has to do is to stall.....and stall....and stall....and let the economy tank....and J6P will be begging for him to do what ever it takes to "fix" this problem. One of the biggest problems is that his last tool left in his tool kit is again.....to monetize this debt. how does one do this? You print money. You stick a turbo and a nitrous bottle on the printing presses over at the US mint..... and get those ball bearings glowing cherry red. What is the result of this?

Hyperinflation.

Worse than in Argentina in the 1980's......much worse.

Get ready to get fisted with no lube..... 'cause this is what's coming down the Hershey Highway.

How phucked is the FED? Consider this tidbit of information. Even before TARP was passed Fannie / Freddie Mac was leveraged at 20/1 ratio. The FED...."bailed them out' LOL. To bad that at that time the FED was leveraged at over 50/1. Go figure. How is that even possible. Remember .... this problem was known for years. Remember when Shrub ordered that the M3 numbers STOP being made public? That was about 2 years ago. Everyone in the know....knew this shit storm was a cummin'......
M3 numbers are the official numbers that the government used to put out that lets the world know how many dollars were being printed for that quarter.

So anyway..... back to the fun stuff at hand. A few smart economists recently got together and figured out that the only likely solution would be to take a trillion or so of the taxpayers money....in a "loan" and start a "good bank". Bernanke is shitting his pants at the thought of this. Remember he's in this "all or nuthin". Starting a "good bank" means that he's outta bidness.....the FED goes Kaput.

So, you take a trillion...start a good bank.....say ten regional nationalized banks with OPEN BOOKS~~~!!!!! The Trillion dollars is deposited in the ten regional banks....and makes up 25% of the beans in the bowl. Then you offer 75% of the remaining interest as common stock....so anyone can buy into it. There is your 100% funding. This bank is solvent. Incremental banking laws allow banks to loan out 9 dollars for every dollar deposited. No, money does not just come off the printing presses. Most money is made.... or produced by this very law. Anyway, since this new "good bank" was paid for initially by US tax payer money.....it would only seem fitting that only US investors should be allowed to invest in it. Once this bank is working it can begin to actually pay back the T borrowed from J6P.

The above "solution" is a simplified plan being bandied about by economists not affiliated with the FED. Would it work? On paper it sure seems so. Will it ever happen? Never. Blood will spill before the US regains it's sovereignty from the FED. Remember Bernanke wanted to completely usurp the US sovereignty by having the FED issure it's own form of T-bonds.....He...and / or the FED doesn't give a rat's azz about you or I.... the FED wants 100% complete control over the US, lock, stock and barrel.

back to Shrub..... remember about early Sept....when all the Euro-peeeeeon banksters and leaders were flying into Washington to visit with him? Do you think they were there for the food and drink? Nope..... they saw this shit storm coming and they read him the fucking riot act. What was Shrub's response? "I'll let the experts handle this economic problem". Those experts at the time being Bernanke and Paulson. bush basically pleaded with the Euro-weenies...... "You can do what ever the fuck you want....just wait until I'm out of office".

Now the O-man is POTUS. You want change? hahahahaha don't kid yourself. What Senator got the most contributions from banks?

Ding, sing, ding...... we have a winnaaaaaaaaaa~
Obamamamamamama did. He is bought and paid for he'll do what he's told...just like Shrub.

anyway.... there's a shit storm coming that will make the Depression of old look like a walk in the park.

Already we're seeing the supply chain broken for "parts". This is just a simple example I'm using that J6P can relate too. What happens when 15-20% of OTR trucks are out of service? Food shortages. food rationing.

stay tuned.... the fun is just about to begin.

[beandip]

oh yea....anyone see the headline on Drudge yesterday?

The O-man was parroting Bernanke...."We need to pass this stimulus bill or else"

LOL

Meet the new boss........ same as the old boss.....La-dee-da




only 7% of the bill was for stimulus. The rest was pure pork byproduct.

talk about denial.

[beandip]

hippifried your TARP proposal does nothing to correct the systemic problem(s) in the banking industry.

The problem is not unemployment. That is but one of many detrimental results of the problem.

[thx1138]

You sure Moody's doesn't work for Alex Jones too?

[hippifried]

Well... Reading all that tripe was certainly a waste of time.

This isn't about the Fed. It's not about monetary policy. It's not an inflation issue. It's not mortgages. It's not about Mexicans, outsourcing, China, the wars, oil, or globalism. If you strip away the "gee I'm so smart" economic jargon, the circular rhetoric, & the ideological rants, what's left is an insurance fraud. Insurance is just a hedge bet. That's what all these fancy credit default swaps & most other derivatives are too.

With the daisy chain of uncollateralized borrowing going on between brokers, they needed some way of showing a reserve in the daily accounting. They aren't banks, so they can't borrow from the fed discount overnights, & the Fed demands an audit when you borrow at the discount rate anyway. Since all the new debt was unsecured & nobody wanted to underwrite it, in steps AIG with a whole series of fuzzy "market instruments" to mitigate the risk. Hedge bets. By brokering the hedges & the hedges on the hedges & so forth, it's like selling insurance on the loans without haveing to actually underwrite them. It all looks good on paper, & everybody jumped on the bandwagon, but nobody can explain how these swaps are supposed to pay off when called on to do so. Not even the boys over at AIG who dreamed them up & pulled them out of their asses. It's just gambling, & everybody welched on the bets because there's no rules or object to the game. Ergo, insurance fraud.

None of this had anything to do with the Fed. Not in their purview. These weren't banks. They were brokerages. They were calling themselves "investment banks" because they were loaning money to their clients to buy stock in the brokerage along with pieces of all these derivatives they were selling. Big oops for their clients. It was the SEC that fell down on the job.

There's probably enough printed dollars of all denominations to equal less than a grand for each American. The presses at the mint have no effect on anything. They merely replace the worn out currency that gets collected each night from banks all over the country & shredded. Printing money is a non-issue regardless of Glen Beck's rantings. It's just hyperbole.

Money is just numbers on a ledger. It's created out of thin air by debt. It's wiped off the books on payoff, sans interest, which is the permanent growth in the money supply. Welcome to Fiatland. The system works fine as long as there's regulation of those who play with other people's money.

So now we have over $50 trillion floating around out there in credit default swaps alone, just in the US. It's funny money that's burning holes in the economy because nobody knows how to clear it off the books. It's already been skimmed & now it's just floating in the ether. No rules or object to the game.

These clowns on Wall Street ran up gambling debts that dwarf the entire gross product of the planet, just because nobody told them not to. I'll start feeling better about all of this when I see all the executives at AIG, for the last 25 years, clapped in irons & doing the perp walk.

Basel II is just a standardization of the required reserves in the banks that are regulated by the central banks. It came too late.

[beandip]

"what's left is an insurance fraud. Insurance is just a hedge bet. That's what all these fancy credit default swaps & most other derivatives are too."

We are in agreement.

CDS = basically insurance fraud.

It does however totally revolve around The FED. Look at what banks comprise of the FED. Investment banks. JPM ring a bell? JPM = investment bank.

So apparently you agree with my "tripe"

LOL
Thanks

"The presses at the mint have no effect on anything."

Soon they will, Bernanke is taking an Epic Fail play from Argentine s playbook. Wait and see. He's either gonna ass rape us for what was 900B last week, 1.3 T yesterday and amazingly enough has swelled to 6.3 T today, in less than 24 hours.

Grab the popcorn. The Obamatron is just doin' what he's told at this point.

On another funny note, notice how now the POB are separating the "stimulus plan" from the bank bail out.

Tonight we get to listen to the little puppet try to scare us silly so tomorrow the Fed gets what they want. These things are unrelated. It is sheer genius in marketing skills though...I'll give 'em that much.

[trish]

...we have over $50 trillion floating around out there in credit default swaps alone, just in the US. It's funny money that's burning holes in the economy because nobody knows how to clear it off the books. It's already been skimmed & now it's just floating in the ether. No rules or object to the game.

Nail on the head. Thanks hippiefried.

[hippifried]

It does however totally revolve around The FED. Look at what banks comprise of the FED. Investment banks. JPM ring a bell? JPM = investment bank.

JP Morgan has always been a commercial bank. They got bought by Chase. You don't know what you're talking about.

So apparently you agree with my "tripe"

Not at all. You don't know what you're talking about.

On another funny note, notice how now the POB are separating the "stimulus plan" from the bank bail out.

There's no stimulous yet. The TARP was passed by the previous Congress & signed by the previous president. All to the same end, but 2 whole different projects to attack 2 different aspects of the same overall problem. You don't know what you're talking about.

-----------------------------------------------------------

Thanks Trish. I'm no accountant, but I can't help but think that there has to be a way to clear all this bad paper without crashing everything. The President has surrounded himself with some pretty smart people. If they can't figure it out, maybe they should hire some of the crooks who know how to think outside the box.

The economic theories ain't workin'. We need a rethink.

[beandip]

From this site:

http://www.federalreserveeducation.o.../tour/tour.htm

"Member Banks

Approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System. National banks must be members; state-chartered banks may join if they meet certain requirements. The member banks are stockholders of the Reserve Bank in their District and as such, are required to hold 3 percent of their capital as stock in their Reserve Banks"

JPM is a member

From this site:

http://www.save-a-patriot.org/files/view/whofed.html

"Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co."

Interesting chart there...not completely up to date though....


http://www.streetinsider.com/Corporate+News/J.P.+Morgan+(JPM)+Selected+by+the+Federal+Reserve+ as+Custodian+for+Its+Mortgage-Backed+Securities+Purchase+Program/4352425.html

"J.P. Morgan (JPM) Selected by the Federal Reserve as Custodian for Its Mortgage-Backed Securities Purchase Program"

Two peas in a pod. Left hand washes the right hand.

again, more collusion:

http://www.globalresearch.ca/index.p...xt=va&aid=8974

"The “rescuer” was not actually JPMorgan but was the Federal Reserve, the “bankers’ bank” set up by J. Pierpont Morgan to backstop bank runs; and the party “rescued” was not Bear Stearns, which wound up being eaten alive. The Federal Reserve (or “Fed”) lent $25 billion to Bear Stearns and another $30 billion to JPMorgan, a total of $55 billion that all found its way into JPMorgan’s coffers. It was a very good deal for JPMorgan and a very bad deal for Bear’s shareholders, who saw their stock drop from a high of $156 to a low of $2 a share. Thirty percent of the company’s stock was held by the employees, and another big chunk was held by the pension funds of teachers and other public servants. The share price was later raised to $10 a share in response to shareholder outrage and threats of lawsuits, but it was still a very “hostile” takeover, one in which the shareholders had no vote.

The deal was also a very bad one for U.S. taxpayers, who are on the hook for the loan. Although the Fed is privately owned, the money it lends is taxpayer money, and it is the taxpayers who are taking the risk that the loan won’t be repaid. The loan for the buyout was backed by Bear Stearns assets valued at $55 billion; and of this sum, $29 billion was non-recourse to JPMorgan, meaning that if the assets weren’t worth their stated valuation, the Fed could not go after JPMorgan for the balance. The Fed could at best get its money back with interest; and at worst, it could lose between $25 billion and $40 billion.4 In other words, JPMorgan got the money ($55 billion) and the taxpayers got the risk (up to $40 billion), a ruse called the privatization of profit and socialization of risk. Why did the Fed not just make the $55 billion loan to Bear Stearns directly? The bank would have been saved, and the Fed and the taxpayers would have gotten a much better deal, since Bear Stearns could have been required to guaranty the full loan"

I never said JPM was not a commercial bank, they are the largest "member" of the FED. Essentially one and the same......if it walks like a duck and quacks like a duck....