Posted on 12/11/2001 3:39:39 PM PST by spoosman
WASHINGTON (CBS.MW) - The Federal Reserve lowered its overnight interest rate target for the 11th time this year on Tuesday and signaled that more rate cuts could come if the economy doesn't improve soon.
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The money supply cartel, euphamistically named the 'Federal Reserve' (not being federal, and it reserves nothing, nice name though, huh?), has a monopoly on the creation of 'money'. This small group of men have been authorized by the governments of the western world to 'make' 'money' for them. Whenever the governments need money, they create an IOU (called a treasury note), and they 'borrow' the money from the cartel.
Now, think for a moment. What if all the governments of the world came to you begging for money? You don't imagine that would make you fairly powerful, now would it? After awhile, I bet you'd kind of like having that kind of power. I bet that after awhile longer still, you'd be so used to being in that position of power, you'd likely do anything you could to keep it.
But our poor, dear old comrades at the center of the money supply monopoly, ran into a snag sometime, oh, let's start with May of 1999. The problem was, they stuffed us so full of their paper fiat, that we just could not digest anymore. They stuffed, and stuffed, and stuffed, until the prices of the basic, critical essentials became so high, and people had to borrow so much, that, well, the poor old little people could not borrow much more. Then prices were just too high to buy. Savings? What are those!?! Purchasing and borrowing drop off precipitously as a result of the high prices resulting from the incessant money supply inflation by the money supply cartel, and that results in lower profits for corporations, and that results in people losing their jobs, and that results in income and savings decline, and that means even fewer purchases, fewer sales, even less income, etc, and that translates into a poor economy, which is precisely where we are at today, and where we have been for a long time.
The money supply cartel, of course, knows all about this stuff. They blow a lot of econo-babble smoke, but they know that all they got is money supply inflation. That is the product they sell. If the demand for their product falls, their business falls off, and since this is the money supply we are talking about, the reckless inflation of the money supply means the eventual destruction of the economy. If that happens, maybe the few people left who have a bright bulb upstairs will finally help ohters see the connection to the economic disaster, the disaster of an economic foundation based on fiat, controlled by a handful of ... I mean, exactly what do you call these people, bankers? No, even that title is a deception. This is the ruling elite. The global aristocracy.
They play games with our lives, and compromise our freedom, and what gives them the power to do that is they have been granted the exclusive power by your government, which by the definition of our constitution means you, to control and regulate the supply of money, which is not money, because what they produce is an empty promise backed by nothing. The over-production of the cartel's product results in a compromised economy. The truth is, in the game of fiat inflaton, you cannot inflate forever. At some point, the monetary inflation is going to run so far ahead of productivity that there is simply not enough productivity to sop it all up. An economy that has sagging productivity has sagging means. But the wicked catch is the monetary inflation maintains incredible high-price pressure as the poor souls who have sagging means, have even less to pay for even higher prices. Eventually something has to snap, crack, break.
The little people break first, but the cartel cannot 'afford' to break. They are spoilied by a position of great power. A loss of that type of power would be catastrophic to the meglamaniacal creeps who have convinced themselves that the whole world needs them to manage all of our affairs. Of course, they end up consistently screwing things up, with all their bright ideas for how to shape the world into their image, but we won't quibble over those details.
The politics, for the global aristocracy, of an economic unhinging, could be devastating. All it takes is the political will in our country to get rid of them, and they are gone -- at least legislatively. These people don't just 'go away', even if a 'law' is passed to make that happen. So it will take much more than just a few laws to get rid of them, and to keep their grubby paws off of our affairs. But that is for another day. Suffice it to say that these days, most people think if we destroyed the fiat system, that would be the end of the economy, America, and the world as we know it. We are simply not at the juncture where anyone can have a serious discussion about how to permanently box the creeps out, because few see the need to do so.
What people simply must get into their heads is the fact that the primary tool the global aristocracy uses to play their rigid game of control over the economic, social, political, and cultural landscape of the world is their ability to 'create' money, and the legislative empowerment they are given by the governments to do so. To say that the global aristocracy and the governments are detached, and separate entitites would be misleading, despite the fact that they do have different roles. But the two work in tandem. Government always has an insatiable appetite to grow, and the global aristocracy provides the means for that growth. However, because the global aristocracy is the lender, and the government the borrower, the lender, at the end of the day, calls the shots, and dictates terms. Both have essentially the same purpose -- the centralization of power and the choking of the type of Liberty envisioned by the likes of John Adams and company. The governments, then, become the tools of the global aristocracy. The aristocracy sets the agenda, the governments carry it out. The funding for the scheme? You guessed it -- fiat money! OK, so they are able to use lots of tax dollars as well, but if they had to tax us to finance their schemes, our tax rates would be 110% or more, and, well, even the creeps know that is pushing it a little :)
So the next best thing, especially when there is not enough productivity in the economy to support tax increases even if they wanted to go that route, is to simply 'make' the money. The government and the money supply cartel play their little charade where the government prints an IOU and the cartel prints the 'money'. But when they do this, we pay. Not only do we pay in terms of how we suffer as they execute their global ambitions with this money, but we pay through the oppression of the continued growth of a freedom suffocating government, as well as the cost through taxes to maintain it, but also, and most significantly, through the incredible cumulative price inflation that the chronic money supply inflation produces. We get stung by losing our jobs, or if we have one, we get stung by having to pay ever escalating prices for the things that matter most. That is a bad deal -- for us. Why should we continue to be the source of funding for such a gross level of corruption? Corruption? Oh, there is a much nastier term I am sure, but it is all I have for now.
Oscams (sp?) law says look for the simple explanation. Here is is: people with immense great power will do anything to keep it.
So, this is what we are looking at:
1) May 1999 the fox guarding the hen house leaves (Rubin vacates the U.S. Treasury)
2) 1999 DOW and SPs dead because price pressure and lack of productivity kill the economy
3) Y2K fears produce a 2 trillion dollar coupon pass by the cartel into the banking system to provide 'liquidity' in the event of a Y2K crisis. That money finds its way to the NASDAQ parking garage 12/1999 - 3/2000.
4) During this time, the fundamental realities undermining the economy and market are still there, and they are getting worse.
5) The Y2K scare fizzles, and the cartel takes the 2Ts back out of the system, which ends up crashing NASDAQ.
6) 1/2001, NASDAQ is back to where is was (generally) before the cartel coupon play, and the DOW and SPs are still dead in the water. The market comes full circle. People ran away from DOW and SP to NAS, because DOW and SP were dead, and with the coupon spike by the cartel, everybody thinks the new thing is NASDAQ. This is when we heard all this BS about the 'new' economy.
7) Still 1/1/01, it turns out there were plenty of poor souls fooled by the cartel spike, and they discovered that there in fact the market really was dead all along. NASDAQ fizzled, and DOW and SP were still dead, for the very reasons they were dead in 1999, and why everybody jumped ship to NASDAQ, but then when NASDAQ crashed, everybody worked the 'old' economy 'safe-haven' play, and plowed whatever they had left back into DOW.
8) [1/3/01] But that was not doing much except creating a lot of volatility. So on 1/3/01 the cartel, knowing that this thing is falling apart, began to execute a plan that undoubtedly was in the works long before 1/3/01. The first phase of the plan was to simply flood the system with new money. Up until 9/11/01, they had slashed rates 8 times, and during that time over 2 million people lost their jobs, and the market had lost well over 2 Trillion 'dollars' of wealth. Clearly, that wasn't working either.
9) 9/10/01 the cartel and the government have a huge problem -- they are losing their grip, losing control. Their non-sensical, reckless and idiotic attempt to 'save' the economy by poisoning it even further with another round of massive money supply injection, the very cause of the problem in the first place (keep in mind, however, that the cartel must keep inflating, else they go out of business, and the government loses a vital source of funding for plans, programs and agenda that never would find taxpayer support).
The big problem is that despite the cartel slashing their rates, the increase in borrowing by the little people never happened. This is because the cartel does not like to face the fact that the issue is not cost of credit that is the problem; it is PRICE. If people are saturated with debt, and lack savings, no matter how low the rates go, people simply are not able to continue to play the game. "Please buy these high prices! Please, please, please, pretty please!" "Hey, I'd like to, but I can't"
The truth was that the fiat cartel was in a corner, and they new it. Like a cornered rat, that had a few more tricks up their sleeve. On 9/10/01, the market was on a slow, but certain course to a major downside 'emabarrasment' for the cartel. They knew it. If I knew it, surely they knew it. The thing is, what were they going to do about it? The cost of money was never the problem, despite the lies you might here to the contrary. The problem was the cumulative effect of generations of fiat inflation, moving light years ahead of real productivity, and people realizing, "hey, I can't afford this!". For the cartel to try to fuel more borrowing to 'solve' the problem they created was a complete joke. There are a good number of smart traders who knew this, and were laughing all the way to the bank selling every good rally all the way up until 9/10/11.
10) 9/11/01 A 'miracle' happens for the cartel, and the result is their best customer is now suddenly borrowing billions to finance a war. This new money begins flooding into the treasury's coffers immediately.
11) 9/17/01 The cartel engineers a lightening strike sell off to a predetermined point just north of 1998 lows. Whenever the market races to a low like that, it is typically done because the people who have the power to make something like that happen want to buy. (I hated to see that, and I pretty much knew what they were up to, so I grudginly bought that week, held for awhile, then covered, because in my mind, yes, they are snakes and know how to play technical games with the charts, but this macabre and diabolically orchstrated effort to try to execute a 'save' based on a 'plan' was simply more than I could possibly stomach. This is not bullish. It is bull___.)
12) 9/24/01 Rubin returns to Washington and meets all day with treasury officials. He shows them how the game is played, and coming off Rubin's Low Of Support (the 1998 low) he engineers a treasury powered 'save' of the US stock markets, using the newly minted money the government just borrowed to fight the war on terrorism.
13) Sellers simply cover from the massive windfall, and take a break for the 4th Q.
14) 9/17/01 - 12/11/01 The cartel cuts rates 3 more times. In the meantime we get another miserable report on the jobs front that the US economy lost another 800,000 jobs. So you ask how is it that if the cartel is slashing rates, why are people still losing their jobs? "It takes time for the rate cuts to take effect." 11 months? But you said in January that we would likely see the 'stimulus' giving us the 'save' in 6 months? "Well, wait'll next year. Things will improve." Hmmmm, I see. How do you know? "Everytime the cartel slashes rates that leads to a massive expansion of the economy." You mean the money supply. "No I mean the economy!" Aren't you even the tiniest bit suspicious about the apparent desperation of the cartel, by crashing rates to 40 year lows, 11 times, in less than one year, something that is unprecedented? "No. They have it all under control." I guess we'll see how much control they do have, won't we?
15) 10/31/01 Last, but not least, we see the ultimate form of government market manipulation to try to get low rates over to the little people when treasury announces the end of the 30 year treasury bond. That move was a clear admission that the cartel rates simply did not, and were not even reaching the little people. The idiots at the treasury got the bright idea to get rid of the 30 year bond, thinking that the scarcity of supply would lead to higher priced bonds, and therefore lower rates. Well, that worked, for a day. The bond market cannot be as easily manipulated by the cartel and the government. The result was the manipulation dramatically backfired, and rates on the 30 year bond are substantially higher. Mortgage rates are not moving lower. Credit card rates are still a ripp off. Furniture purchase rates are still the same. Car rates were .9 in the past. So they had 0.0. Big deal. the difference between .9 and 0 is statistically insignificant. The point is, nothing has changed for the masses. Even if the cartel drops to 1.75, the masses still pay the same as they have always been for years. So what is the difference? There is none. Large corporations can refinace existing business debt, and that does provide a windfall for them. The government gets to borrow 'money' more cheaply. But at the end of the day #1) corporate windfalls from refinancing do not translate into economic productivity, and #2) the last thing we want is for the d*** government to be borrowing even more money. There is nothing bullish at all in this above scenario.
The 4th Q rally is the product of a phase of a carefully executed gameplan. If the purpose of it is to 'save' the market, and the economy, it won't work, because it is the product of, even by the standards of the creeps, the grossest level of fraud ever perpetrated against the American people in all of our history. Sure, they got their rocks off in the 4th Q. Shoot, with hundreds of billions of freshly minted government borrowing injected into the system, why should anybody be surprised to see the rally? I wasn't. But the 4th Q is coming to an end.
The striking feature of all of this is how the control freaks that rig the game are so insanely determined to keep their game of control alive. We do not need them. They are a liability to us. They need us. It is our productivity and our lives they suck off of that empowers them to exist, and to execute their hideous globalist agendas. It is time for them to go. It has been time for them to go. But there is likely to be no political will in this country to defang the global aristocracy until the Newtonian effect of the cause of their fraud hits home hard.
It is when we discover that they did not 'save' us after all, and the economy and the market are fully wiped out is when, maybe, people will realize that it was not to our advantage to have a band of theives controlling and rigging everything that goes on in the world. Those who argued that we must have them rig the game for us, else we have an economic disaster, will finally be forced to shut up, because faced with a genuine economic disaster, what becomes the point of their concern? The point is they have no point. They were just simply wrong. Freedom, the genuine American way are much, much, much better than the rigging and game playing with our lives by the global aristocracy, and however that game is inter-linked nefariously with the affairs of our government.
The boyz sent a message on 9/11/01, however, and it is one we should all pay close attention to. The message is that there is no low they are not willing to stoop to in order to stay in power, and keep their game alive. If the truth is that the September 2001 lows break, and a nasty break that is likely to be, seeing how it is that the elite have completely spent their wad trying to protect at these levels, meaning they won't have any legitimate tools to 'protect' and 'save' once we plow below September 2001 lows, lows that the whole world is sure will not break, because the crashing of interest rates 'guarantees' an economic recovery in 2002, if 9/01 lows break, knowing the nakedness of the cartel, truly God only knows what kind of world wide disaster they'll create to accompany that break, so that the whole world of fiat puppets will say, when faced with having to explain why the economy is devastated, they will not be forced to admit they are the dumba$$es they are, but they will say "It was because of this XYZ disaster, and if that hadn't happened, none of this would have happened, and therefore, it has nothing to do with a set of global affairs rigging creeps in a modern global aristocracy."
Whatever. If we ever get down to the lows, and stay there, all I can hope for is that the light of truth will finally shine on the enemies of our freedom and happiness, and we can restore the foundation that America once rested upon, and re-emerge as the strong, and great nation she clearly has the potential to be. Many people are claiming that the wake of 9/11/01 was this sort of 'bottom' for the country, and that we are emerging from this tragedy a stronger nation, etc, blah, blah, blah. But this is a phony bottom, and it is phony rhetoric. We are still inside the same game, things in this country have deteriorated even further, and the manipulation of the manipulators has simply gone up several more notches.
It is when they are forced out of the manipulation business, and we go through the difficult process of transition out of a dependency on manipulation to a independency of freedom, this is where I believe there is hope for American renewal. But do not kid yourself. There will be no quick fix, and there will be no guarantee America will 'come back'. This process is likely to go on for years, as the social and cultural tides begin to shift back in the direction of the vision the founders had for our counrty. Even then, there will be plenty of people of the old guard who will be fighting to the death to return America to the control of the manipulators. Whether we as a nation can permanently free ourselves from such rests upon the kind of people we are.
I still say, somehow, though the night can be long, and dreadful, America can come back, far stronger than ever, not plagued by the the institutionalizing of left wing social/global engineering, by means of highly centralized organs of today's Beast, one of which is the central bank, and the supremely overbloated federal government.
Does anybody in FR know what the new Fed. rate % is?
They won't shut up. They are slaves and won't admit it. What they'll say is that it was the wrong group of people and they controlled us in the wrong way. If only Bush or some other republican had been allowed the chance to take control. But see Clinton screwed it up so bad that there just hasn't been enough time to fix it.
If it were up to me I'd abolish the SEC, kill the IRS, tell the Fed it must make it commercial banking by it's own accord and allow rates to fluxuate to equlibrium on their own merits, determined by the market. I would also get rid of paper money but I'm a strange dude.
greenspan could have left money basically alone in 1999. the market would have gone up, up, up with even higher p/e ratios, and the economic crash we have seen recently would be far more severe. 911 certainly escalated a downhill slide. if greenspan had not diddled with the numbers in 1999, we would have seen a seen a very severe shock after 911.
managing monetary policy is a tough job. most fed reserve board chairs get their share of flames, deservedly or not. the fact is however, that monetary policy impacts the economy far less than fiscal policy. a better fiscal policy (e.g. less government spending) will enable us to better weather monetary blips.
It is an unnecessary job. There is no constitutional power given which says our monitary policy needs to be managed by a group of greedy and unaccountable citizens pretending to have governmental authority.
Let me lend money which costs me nothing and I'll manage interests rates from this here keyboard and make just about the same moves they do. Then Time and Fortune and WSJ will be quotin' me instead a that Greeenwhatever fella.
[begin excerpt] Never before in financial and political history has such criminality reigned. Incidentally, this has nothing to do with political party labels, both parties are equally bad, they either are under control or are on the payroll of the elitists. The greed knows no bounds. Ken Lay of Enron made $300 million over the last 10 years. He was assisted by cozy dealings between the company and employees, which defied the laws of prudence and legality. Here was a company where 75 traders made over $5 million a year. That doesn’t happen it has to be created. Enron was also a company that was perpetually looted by its management and some of its regular employees. Their elitist friends at Fortune Magazine hailed these thieving miscreants as the most innovative company in America and it was. It inflated profits and concealed debt. This is what the new economy has brought, a cabal addicted to profits no matter at what cost.
In the process of this elitist debacle J.P. Morgan Chase, Goldman Sachs and Citicorp, along with the FED, assured us that commodities regulators, the SEC and other officials that there was nothing to worry about. Lies, lies and more lies. When are Americans going to wake up to what this gang of criminals is doing to our country? One thing this fiasco will do is stop the stock market from going any higher and it will make lenders and borrowers even more cautious. This means the FED will have to pour even more aggregates into the economy...[end]
Comments?
Interest rates on short-term Treasury bills fell in Monday's auction with the rate on three- month bills falling to the lowest level in 43 years. The Treasury Department auctioned $16 billion in three-month bills at a discount rate of 1.735 percent. Another $ 16 billion in six-month bills was auctioned at a discount rate of 1.765 percent. The three-month rate was down from 1.920 percent last week and was the lowest since three-month bills averaged 1.524 percent on Aug. 11, 1958. The six-month rate was down from 1.990 percent last week and was the lowest on record. In a separate report, the Federal Reserve said Monday that the average yield for one-year constant maturity Treasury bills fell to 2.23 percent last week from 2.35 percent the previous week.
The Treasury Department sells securities at more than 150 auctions held throughout the year. To buy a security at one of these auctions, you must place a bid. You can place your bid directly with the government in a program called TreasuryDirect, or you can place your bid through brokers, dealers, or financial institutions, in what is called the Commercial Book-Entry System.
I'm sure you're screwing your clients royally with your bearishness.
No one here with any market acumen gives you the time of day.
We'd likely have been there long since then had it not been for the explosive monetary inflation in the 4th Q, and that added to the billions of newly minted money borrowed from the money cartel by the US govt, shoved into the market to prop it up.
Yeah, that's reeeeaaaaallllll bullish alright ...
I suspect the Fed has them printed to forecast, by the Mint. Then they are held in a vault somewhere until some bank needs currency and buys some. Maybe they actually have them printed to order, but I doubt it.
Is this a new subject, or do you think this has something to do with Treasury bills? I don't see the connection.
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