Written by Jeff Nielson Thursday, 19 September 2013 18:28
Having allowed a couple of days for the tidal wave of mainstream, post-“tapering” nonsense to subside; it’s now time to look at the facts, as once again The Boy Who Cried Exit Strategy got in front of microphones to say “just kidding.”
At the time that B.S. Bernanke originally began his musings now known as “tapering”; it had already been observed that the U.S. pseudo-recovery was “longer than average duration” – i.e. it was already past its expiry-date. After stalling for 4 ½ years, and failing to deliver on all his previous promises of an “exit strategy” – while the U.S. economy was relatively “strong”(?) and supposedly growing – no rational government (or central bank) would ever time the withdrawal of stimulus to coincide with the end of a growth-cycle.
“Tapering” was always a hoax.
Simply talking about tapering caused interest rates (i.e. borrowing costs) on U.S. ten-year Treasuries to nearly double; and naturally/inevitably those higher borrowing costs filtered through the entire U.S. economy. Thus in simply talking about tapering for seven months; the Banksters created so much economic “drag” on the U.S. economy that if Bernanke had actually, finally delivered on (yet another) “exit strategy” promise, it could have only been interpreted as deliberate economic suicide.
“Tapering” was always a hoax.
There is a delicious irony here. The “latest rounds of QE” – the current, $1 trillion per year of totally gratuitous U.S. money-printing – are not actually “new” money-printing at all. These infinite stacks of Bernanke-bills were being conjured into existence just as quickly before these “announcements”, it simply wasn’t being reported/declared.
It was counterfeit money, in every sense of the word. This was explained in a previous commentary. The original problem? No buyers (anywhere) for U.S. Treasuries – at “all-time record prices”. The solution? Counterfeit money.
Secretly print-up $trillions in counterfeit Bernanke-bills, and use that counterfeit money to “buy” U.S. Treasuries in auctions which (conveniently) had just been made totally opaque. Readers have seen or heard my description of the new-and-improved “Treasuries auction” previously.
A stack of Treasuries is placed on a table. The lights go out. (Sounds of paper-shuffling are heard.) The lights come back on. The stack of Treasuries is gone. “Auction” complete.
This cheap ‘magic trick’ was the Perfect Crime, and then Reality ruined everything. With the U.S. pseudo-recovery already beginning to obviously sag (in its old age); the call went out to the Fed for “more stimulus” – given the fact that the U.S. Treasury is totally empty (save for the IOU’s).
So B.S. Bernanke and Co. simply began reporting the “new money” they had already been counterfeiting previously, and presto! One $trillion per year in new, so-called “stimulus.” Now (suddenly) there was an actual “reason” for U.S. Treasuries to be improbably perched at all-time record prices – despite the fact the U.S. economy is obviously bankrupt: the Federal Reserve was openly monetizing all debt.
“The Truth shall set you free”? Not if you’re a central banker at the Federal Reserve. Then it’s a nasty ball-and-chain which (you discover to your horror) you can never remove.
Written by Jeff Nielson Tuesday, 17 September 2013 12:44
Tomorrow, outgoing Federal Reserve Chairman B.S. Bernanke will do one of two things (while his “friends and supporters” continue to sharpen their knives). He will either (formally/finally) announce the absurdly-hyped “tapering” he has promised; or he will back-down on yet another Exit Strategy – as he has done again and again for the past 4 ½ years.
My own prediction, expressed in my last commentary is that this time the Boy Who Cried Exit Strategy will actually follow through on a promise – because he has been ordered to detonate the severely-crippled U.S. economy. The “signposts” couldn’t be more obvious: record equity prices; maximum leverage in markets (can you say “bubble”?). The perfect time to Fleece the Sheep.
As was pointed out in that commentary, even the propaganda machine itself has now explicitly stated that this is the worst possible time to begin “tapering” – and they (deliberately) left out the best argument to make that point. The U.S. pseudo-recovery (in historical terms) is already well past its expiry-date.
This detonation is being timed when the government knows that a cyclical downturn must commence in the U.S. economy, compounding all the structural weaknesses which have never been addressed: mass unemployment, Great Depression-wages, saturation insolvency at all levels of government, etc., etc., etc.
Readers have also been warned about the utterly predictable chapter to follow this staged crash: “bail-ins” come to North America. South of the border; the Wall Street Vampires have created assorted asset-bubbles – to entice the “suckers” whom P.T. Barnum assured us are born every day, and create plenty of their own “bad debts”, for which they will (once again) demand indemnification.
North of the border, as has also been previously explained; Stephen Harper has manufactured a fat, juicy housing-bubble – a direct “homage” to the previous U.S. housing-bubble, in that Harper has deliberately duplicated that blueprint of destruction in nearly every respect. Canada’s Conservative government has also been (by far) the most-blatant in declaring its “bail-in” intentions; crafting these rules-for-stealing into its current Budget. A “sense of urgency” perhaps?
As always, the Corporate Media propaganda machine never, ever asks (let alone answers) the question “what comes next?” As we are being marched toward a new, staged “crash”; it behooves us to look back at the last staged-crash – the Crash of ’08 – which the Banksters detonated precisely five years ago.
The promise when the stealing began (five years ago), when suddenly “too big to fail” mega-banks (subsidiaries of the One Bank) began pillaging our public Treasuries via “bail-outs” was simple: this will “fix our economies.” Five years later; we see every aspect of that first phase of stealing was fraudulent.
The mega-banks were never “too big to fail”. Such a term is logically/mathematically/economically perverse and absurd. What these Big Banks demonstrated in the most blatant terms possible (via blackmailing our governments for countless $trillions in extortion demands) is that they had become too big to exist.
We now see that the second half of this paradigm-of-theft was also, utterly fraudulent. The stealing done post-2008 was never/could never be honestly called “bail-outs.” By definition; bail-outs extricate the Debtors from their financial difficulties. Had this first phase of stealing actually been a bail-out; we would never have begun discussions for the second phase of stealing (“bail-ins”), because (obviously) it would never have been necessary.
The reality is that all of the “bail-outs” which took place in Phase One of this stealing were merely a down-payment in the eyes of the One Bank. The only reason that bail-outs are now “out” is because all of our public Treasuries have been emptied.