Jim Willie, Ph.D. : “The Bernanke Fed is realizing they are stuck in the monetary corner with NO EXIT. They began to mention the need for an exit in the spring months of 2009. That is when the 0% official rate should have been abandoned. Here we are four years later, and they are still stuck with no exit, precisely as the Jackass warned, forecasted, and screamed in print.”
“The chairman has ably proved that liquidity cannot solve the current banking and financial problems mired in insolvency. In doing so, Bernanke has disproved his own PhD Economics dissertation, and has discredited his own lofty credentials with a Princeton seal. He is a sham, a Weimar agent, and a destroyer of capital. The hopelessly devoted paper mache craftsman is stuck in the Matrix.
A counter-culture comparison is due. The USFed and the Wall Street bankers have created an environment of alternative universe. The financial markets are rigged. The USDollar currency and USTBond are propped. The bankers are given free license for $trillion fraud. The big banks are dependent upon narcotics funds. The politicians are syndicate puppets, include the leader of the land. The last three presidents have been narcotics addicts, who refuse to hand over medical records to the Congress as required by law. The debts are covered by hyper monetary inflation. Jobs are being shed rapidly. The USEconomy is stuck in quicksand, as it deteriorates, while the blaring music sings about recovery.
The fascist United States is the embodiment of the MATRIX, the multi-sequel hit movie series from the 1990s. Notice the similarity between the cold controlling deceptive alternative world Matrix architect (left) and USFed Chairman Bernanke (right). The contrast is scary.” (…) (1) – emphasis added
“The Jackass has been firm since summer 2009 that the USFed would not escape the 0% bound on interest rates, that the USFed would slip into QE on a permanent basis, that the USFed would be stuck with ZIRP and QE forever, that the USFed would cause a global financial collapse if they tried to hike rates and return to a normal monetary policy. The Live Stress Test conducted in May and June proved by point. Next comes the derivative accidents, the beaching of the next London Whale, the arrival of more spectacular JPMorguen derivative losses, the contagion caused by a Deutsche Bank that drops dead.” (2)
BOND MONETIZATION AS STIMULUS
“The myth is that the QE programs are stimulus to the US financial system. The reality is far in the opposite direction. The reality is that the USFed is gradually becoming the only buyer of USGovt debt, the only buyer of converted maturing USGovt debt. The Weimar machine is the last resort window to purchase USGovt debt, and to prevent the rate on borrowing costs from rising to 10%. The reality is that the USDept Treasury is fast converting mountains of fraud-ridden USAgency Mortgage Bonds whose volume lies in the $trillions, so that the housing market might be freed up to recover. The reality is that the entire world reacts to the hyper monetary inflation that is the bond purchase initiatives, by hedging against it. The investment community and business sector hedge by buying hard assets. The rising commodity prices, energy prices, material prices, and resulting service prices, all result in a rising cost structure. The reality is that the QE bond purchases force rising costs and shrinking profits, which bring about a colossal capital destruction from business segment shutdown and retired equipment, later liquidated equipment. Outside Antal Fekete, hardly an analyst has noticed. The economists are fast asleep on this extraordinary destructive factor. They are paid to be asleep. No stimulus here.”
USFED STIMULUS UNTIL RECOVERY
“The myth is that the Bernanke Fed is committed to stimulus until a recovery occurs. They speak about a dual mandate of low price inflation and full employment, with the third priority of preserving financial stability. The reality is that the current monetary policy assures further capital destruction, further business shutdown, and further job cuts. The promised continuation is a death sentence, truth told. ZIRP is the smothering device. QE is the capital destruction tool. The fixed monetary policy relying upon both ZIRP & QE will continue until the US systemic failure and climax of USGovt debt default. One might be reminded of the old pirate saying, “The beatings will continue until morale improves!” The USFed monetary policy is killing the nation, rather than anything remotely resembling a solution, and surely not stimulus.” (3) – emphasis added
Energy deal recently concluded between Russia and China
has gotten almost no Western press at al.
Bill Holter: “In fact, I did not hear anything about this deal last week at all and it purportedly occurred on Sept. 6th. Basically, Russia is offering as much energy as China needs while China has logistically set up a payments system that would allow oil and gas to be purchased using yuan as payment. This has HUGE ramifications as potential demand of Gulf oil could diminish and demand for Dollars will definitely drop…at a time that demand is already dropping as illustrated yesterday by the TIC report showing the 4th month in a row of capital outflows.
Interestingly the TIC report showed that the only true foreign buyer of U.S. Treasuries were the Japanese. When I say “interestingly” I am alluding to the fact that the Japanese are printing and monetizing comparably far more than the U.S. is. Think about this for a moment, none of the countries who were buyers in the past are buying now, they are liquidating. The ONLY buyer of any size is Japan which is printing money out of thin air at a rate greater than anyone else on the planet. So, the biggest debtor in the world is borrowing from a nation with 240% debt to GDP, that is printing money to pay interest, printing money to purchase their own bonds and now printing money to buy U.S. Treasuries. They purchased over $52 billion worth of Treasuries in one month…please do the math on this one, annualized this is over $600 billion!…truly insane!” (4) – emphasis added
THE MECHANISM OF CAPITAL DESTRUCTION, Antal E. Fekete Gold Standard University Address at the Annual Dinner of the Committee for Monetary Research and Education, CMRE – “The Titanic of the once proud American banking system has collided with the iceberg of falling interest rates, and is sinking. Sauve qui peut!”
(1) USTBond: Return to Sender, Jim Willie CB, GoldenJackass.com, news.goldseek.com, June 4, 2013
(2) Signals for Breakdown on Numerous Fault Lines, Jim Willie CB, GoldenJackass.com, news.goldseek.com, July 11, 2013
(3) US Dollar As Money, Myths, Lies, Deceptions and Millstones, Jim Willie CB, GoldenJackass.com, marketoracle.co.uk, September 5, 2013
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