My point is this, the tide is going out and it looks like EVERYONE is naked and no one has drawers on. Margin debt for stocks are at an all-time high, shorts by hedge funds in gold are at an all-time high, printing by central banks are at an all-time high, yields on sovereign bonds (even the deadbeats like Spain and Italy) were recently compressed to all-time lows and are now rising…and the real economies across the globe are beginning to contract again. The “inflection point” has apparently arrived and fraud everywhere you look is being uncovered. In a system that runs on debt, “collateral” is the foundation. What are the ramifications when “collateral” is questioned and turns out to be nothing more than a piece of paper with no value whatsoever? Everything that has derived value from this initial capital …is worth nothing.
One last thought, this month (May) there are still contracts in both gold and silver standing for delivery with only 3 trading days left. First notice date for June gold will be upon us shortly, if there really is a “collateral problem” (now not just inventory questions but questions of the validity of paper collateral) we may be in for quite a show. Gold has been frantically moved all over the world during the last 2 months to make deliveries and keep up the “good face.” Can they get past June and get everyone delivered to? We shall soon see!
The Federal Reserve has been conducting an unprecedented experiment in economic manipulation. By holding interest rates near zero and by actively buying more than $40 billion monthly of mortgage-backed securities and $45 billion of Treasury bonds, the Fed has engineered the lowest mortgage rates in generations. At the same time, Federal control of the mortgage industry has become nearly complete, with government agencies Fannie Mae, Freddie Mac, and the FHA buying or guaranteeing virtually all new mortgages. In addition, a variety of Federal programs, such as the Home Affordable Modification Program (HAMP) are in place to help keep underwater homeowners in homes that they could not otherwise afford. Taken together, these programs create far more favorable terms for home buyers than those that existed before the crash. http://www.europac.net/commentaries/great_reflation?
from Switzerland: FED warning code red due to massive bond acquisitions; internal report/bankers meeting from 17th of may
This is all that is wrong in this country. It's why there are over 300 million sheeple. It's why .01% control everything. It's why NOTHING is as it seems.
What Sequester? Washington Booms as a New Gilded Age Takes Root
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