The Big Collapse Could Be Very Near

[peaceandlove]

Posted by FEVER I AM today:

For those of you who missed these stories over the weekend, here is an EXCELLENT take on this news. Remember also, Geithner is off to China to plead with them again...

I will most likely do a video on this. In case you didn't notice - the Fed is starting to Panic... what they are doing is NOT having the effect they expected. the Dollar has been tanking all week (despite stories in the British Press, the only reason the Pound is climbing against the Dollar is that it isn't falling quite as quickly... compare what's been happening to the Canadian Dollar during the same time period.)

Get ready folks

Peace and Love

http://feveriam.blogspot.com/
FEVER I AM youtube channel: http://www.youtube.com/user/FeverIAm?blend=1

The Big Collapse Could Be Very Near

SUNDAY, MAY 31, 2009

The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday.

The Federal Reserve leaked to CNBC's Steve Liesman on Friday that they weren't targeting long rates. Why such a leak? Probably because the Fed did not want to appear impotent in controlling the long rate. So they put out the word through Liesman that they weren't targetting the long rate. Can you imagine what would happen to the markets if it sensed long rates were beyond the control of the Fed?

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets. Are we near the phase where all hell breaks loose? I have never even answered, maybe, to this question before. It's always been, "no." Now it's maybe.

Continues: http://www.economicpolicyjournal.com...very-near.html



This article posted at Solari.com/blog

Treasuries, Dollar ‘Only Game in Town’ as China Buys

By Daniel Kruger and Susanne Walker
June 1 (Bloomberg)

Excerpt:

China’s ‘Worried’

Geithner arrived in Beijing yesterday with a pledge to control borrowing as he sought to reassure China its holdings of U.S. government debt are safe. “No one is going to be more concerned about future deficits than we are,” he told reporters on the way to two days of meetings in China’s capital.

Chinese Premier Wen Jiabao said in March that the country was “worried” about its investment and wanted assurances the value of its holdings would be protected.

“I hope Geithner’s visit can soothe our nerves,” said Yu Yongding, a senior researcher at the government-backed Chinese Academy of Social Sciences and a former central bank adviser. “The Chinese public is worried about the safety of its foreign- exchange reserves,” Yu said in an e-mail.

Seventeen of 23 Chinese economists surveyed in connection with Geithner’s visit said Treasuries are a “great risk” for the economy, according to a Chinese state media report yesterday. Still, the majority argued against quickly cutting them, the Beijing-based Global Times reported.

Complete Article: http://www.bloomberg.com/apps/news?p...rIU&refer=home



This at Market Ticker:

The News Unreported In The US: Turbo Timmy

Tuesday, June 2. 2009

Funny how Bloomberg, who ran this originally, edited the headline and removed it. Did someone in The Administration or Treasury call Bloomberg and complain?

Chinese Students Laugh At Tim Geithner http://www.businessinsider.com/chine...eithner-2009-6

Telegraph: http://www.telegraph.co.uk/finance/f...-are-safe.html
In his first official visit to China since becoming Treasury Secretary, Mr Geithner told politicians and academics in Beijing that he still supports a strong US dollar, and insisted that the trillions of dollars of Chinese investments would not be unduly damaged by the economic crisis. Speaking at Peking University, Mr Geithner said: "Chinese assets are very safe." The comment provoked loud laughter from the audience of students.

This isn't worth a mention over here?

University students can see through our BS in seconds, but the sheeple here in America don't, and we continue to allow these clowns to have their hands on the levers of fiscal policy.

Simply amazing; the Chinese have clearly figured it out, and they're not beyond expressing it.

Of course our so-called "media", say much less our Washington Political Establishment, provide all the trappings of undeserved decorum to someone when college students in a foreign country can see right through it.

Turbo Timmy and our media continue to insist on the exquisite tailoring in Timmy's new suit, while the Chinese see his schlong and beer belly hanging out in the breeze.

Complete commentary with links: http://market-ticker.denninger.net/a...rbo-Timmy.html

[sunflower]

Thanks for the update, Peace and Love. I have been monitoring the rapid rise of our Canadian dollar since there are a few things I want to order from the US .

It's difficult to keep our minds focused on everything that is happening. Too many other news items come up and distract us from the economic developments that we should be following.

[sammytray]

It has begun...

[Anchor]

It begun a while ago (last year).

What is happening is more people are realising.

Many who were deluded into thinking a recovery was possible still have not realised.

A..

[Northern Boy]

Funny thing i posted that the Chinese would laugh at the Americans this morning . Looks like i was on the money here is what I posted this morning in

http://projectavalon.net/forum/showthread.php?t=12875


Benjamin Fulfords Bog

I have to wonder at what they figure the Chinese are going to do , they must know by now that the U.S. will never be able to pay the money they owe in Treasury Bonds to China and china I feel are going to laugh in their faces . The only thing I can think of is they are going to start trading technology for cash or to buy back those bonds


I have to wonder if he enjoy`s being the comedy relief during these troubled times perhaps he could borrow a clown suit from McDonalds to help him get his message across

[Humble Janitor]

Geithner is already a bozo. He just needs makeup, a red nose and a clown suit.

[peaceandlove]

From the celebrated Karl Denninger, who was awarded the Accuracy in Media 2009 Grassroots Media Award: http://projectavalon.net/forum/showt...karl+denninger I love his acceptance speech...

Open Note To Tim Geithner

Tuesday, June 2. 2009

In light of China's view of the "safety" of their dollar-denominated investments, your several-times removed predecessor has some words of wisdom for you:

Treasury Secretary, Henry Morgenthau, angry at the Keynesian spenders, confided to his diary May 1939: "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started.[49] And enormous debt to boot." http://en.wikipedia.org/wiki/New_Deal

Do we really need to repeat history in order to learn from it?

SOURCE: http://market-ticker.denninger.net/a...-Geithner.html

Con of the Century FED UP USA: http://www.fedupusa.org/

[orthodoxymoron]

Does the 'fun' begin today?Look out below?

[Angel in Disguise]

Originally Posted by orthodoxymoron

Does the 'fun' begin today?Look out below?

Have I missed something? Something happening today?

[Illumination]

No kidding! Here in the US I would guess that more than half if not most Americans think we just hit a little recession and the worst is over. It has not even begun...all those loans coming up for default will hit big this summer/fall.

It is really something to see how shell-shocked some people are when they realize how serious the economic situation is. I realized a long time ago that the US government is bought and paid for by the corporations and wealthy - both political parties are pretty much the same. Folks keep trying to justify Obama's actions as hiring crooks to catch crooks, but I don't see any evidence of that. Geithner and Summers are part of the Wall Street problem and they're foxes guarding the henhouse. The trillions of dollars transferred from the taxpayers into the greedy fat hands of a few bankers is unforgiveable. They spent it on bonuses and lavish parties and yachts, not jobs or services.

Just imagine all the great things those trillions (plus the trillions spent on war) could be invested in...becoming a leader in clean energy, creating jobs with a WPA type program and catching up to the rest of the world with Universal Health care.

Originally Posted by Anchor

It begun a while ago (last year).

What is happening is more people are realising.

Many who were deluded into thinking a recovery was possible still have not realised.

A..

[peaceandlove]

Originally Posted by Northern Boy

Funny thing i posted that the Chinese would laugh at the Americans this morning . Looks like i was on the money here is what I posted this morning in

http://projectavalon.net/forum/showthread.php?t=12875


Benjamin Fulfords Blog

I have to wonder at what they figure the Chinese are going to do , they must know by now that the U.S. will never be able to pay the money they owe in Treasury Bonds to China and china I feel are going to laugh in their faces . The only thing I can think of is they are going to start trading technology for cash or to buy back those bonds


I have to wonder if he enjoy`s being the comedy relief during these troubled times perhaps he could borrow a clown suit from McDonalds to help him get his message across

Blessings Northern Boy,

Do you think NAPTHA was a bait and switch scam?

We'll buy your goods if you buy our monopoly money! Oops, it's not worth anything.

Whose going to be laughing next?



I read somewhere about China taking over our National Parks. The CON is ON!

Oh, here it is at ABOVE TOP SECRET: National Parks http://www.abovetopsecret.com/forum/thread45831/pg1

Excerpt:

I was up flipping channels last night, for some reason I stopped on a public TV show, that a radio broadcaster in Texas made, Like I said it was late so I can't remember his name. It was about the US being sold out by the goverment. To the United Nations and China.

He went to talk to National parks around the the US, to see if the park rangers knew of the parks being Given to the UN as backing for our money. If we go into default, the Parks belong to the UN. Including the Grand Cayon, Yellowstone..... He said this is the reason that parts of the parks where closing.

Much more at the link ATS link above.



Yez'm, it appears California has 220 Parks for Sale? or will they be Collateral?

Schwarzenegger Plan Would Close 220 Calif. Parks

By SAMANTHA YOUNG, Associated Press Writer – Fri May 29, 4:58 pm ET

SACRAMENTO, Calif. – Gov. Arnold Schwarzenegger's budget cuts could mean the closing of up to 220 state parks, among them the home of the world's tallest tree and other attractions that draw millions of visitors. Schwarzenegger this week recommended eliminating $70 million in parks spending through June 30, 2010. An additional $143.4 million would be saved in the following fiscal year by keeping the parks closed.

Article continues: http://news.yahoo.com/s/ap/20090529/...lifornia_parks

[pineal-pilot-in merkabah]

http://www.bizjournals.com/pacific/s...1/daily23.html

looks like cali will be busto in 14 days ..

[Northern Boy]

well looking at it from my point of view the parks belong to the American people and if they haven`t agreed with the sale or use of them as a collateral for bad business deals . Also you have never given your government permission to use these as such and they require it to do so. I`m almost positive that that if it were to go to court the Chinese would get very angry. Arnold needs to go back to the Gym he has shown the people of California that he can`t govern. Experiment over the parks belong to the people not the government and you can`t give away what you don`t own

[pyrangello]

Hey you should see what our reps are doing here in the state of michigan , last october our house and senate had to approve a balanced budget, our govenor jennifer grandholm said everything had to stay revenue neutral.

Lets see, we have the 2cd highest paid legislative body in the country, get elected to the house or senate 80k a year for 112 days of work , $1000.00 a month travel expenses, and after 5 years as a bonus you get free medical for the rest of your life. Yepppiee , I'm thinking about running.

Here's the best part , the state government body are so talented with their 52 billion dollar state budget that they couldn't even balance it last october, so the most creative thing they could do here was raise taxes on the businesses. Oh and they gave everyone working for the state a 1% increase on their payroll just to clinch the next election.

Now last december 7 months ago the state owed 1.2 billion to the feds for the unemployment bank, or borrowed money, or chinese money, or maybe it's non-printed money soon to be like pre-natal. In just 7 months time we are now at 2.15 billion to the feds.

Our unemployment is 13% but if you factor in before the clinton administration's fudging the formula factors add another 8% on top of that. And I here up in the upper peninsula its in the 30%+ range. Oh yea I forgot if you are on the unemployment roles here in this state its a minimum 19 months of collecting.

I ran into a guy last week at the store and he works in the small city I live in . He said he had 25 families come in and fill out change of address forms, all 25 were moving out of state. If your looking at what big government can do for you, look no further , just take a look at our democratically controlled house, senate, and governor. I really think that is why Hillary never came to this state to campaign , because it was a mirror image of what it would have been like in washington d.c. There wasn't any role model here.

Legacy costs for this state in 5 years will be 10 billion dollars a year for state entitlements, think we can give california a run for their money?? By the way Texas has 2.4 times the population than michigan and their part time legislatures recieve $8000.00 a year for doing their part, the right thing, serving their state as a public servant, not a career!

[orthodoxymoron]

Originally Posted by Angel in Disguise

Have I missed something? Something happening today?

Nothing in particular. Just everything.

[peaceandlove]

FEVER I AM Commentary today...

WEDNESDAY, 3 JUNE 2009

I am soooo wanting to do a video on this story (as I have all the supporting articles here!) but there is no time in my day for such an extensive one :-(

Here's another article on a similar vein that has been passed to me a couple of times over the last day or so - The Big Collapse Could Be Very Near

Get ready folks... and spread this - fast...

Peace and Love
http://feveriam.blogspot.com/

Quarterly $1 Trillion Monetization
by Jim Willie, CB. Editor, Hat Trick Letter | June 2, 2009

Excerpt:

Behind the bushes, a powerful billboard message can be seen by the trained eye, accompanied by loud signals audible to the trained ear. The US Federal Reserve will be forced to continue the gargantuan monetization scheme. The first round was announced in mid-March, for $300 billion in USTreasurys and $750 billion in USAgency Mortgage Bonds. Most did not give a second thought, that it was a one-time event. WRONG! The monetization news dealt a powerful blow to global confidence in the US financial system generally and the USDollar specifically. The $1 trillion monetization will be repeated, and even become a quarterly event, much like a constant sub-surface flow of water to remove a foundation built upon sand.

The trip to China by USDept Treasury Secy Geithner should be viewed as a key reassurance to these important creditors, later to be viewed as a betrayal. The Chinese audience responded with loud laughter when Geithner assured them that their $2 trillion in savings was safe and secure. This was a national humiliation event, as Geithner has been muzzled. If only the USCongress had such broad wisdom and deep courage to laugh when Goldman Sachs henchmen ‘(Made Men’) from the syndicate gave regular speeches laden with deception and rationalizations for their continued fraud. Then again, the Chinese audience is not on the receiving end of graft and bribery, nor the object of revolving doors.

Complete article: http://www.financialsense.com/fsu/ed...2009/0602.html




And the following article he thought was of importance:

Latvian debt crisis shakes Eastern Europe - Telegraph

And so the collapse in Eastern Europe begins... expect more failures over the coming weeks.

Sadly there will be no failure in the US treasury Auctions; expect the Fed to announce at the next FOMC meeting that it will purchase more Treasuries... and the spiral down will really have begun!

Peace

Latvian debt crisis shakes Eastern Europe

Latvia has become the first EU country to face a sovereign debt crisis after failing to sell a single bill at a $100m (£61m) treasury auction, prompting fears of a fresh storm in Eastern Europe as capital flight tests currency pegs.

By Ambrose Evans-Pritchard
Published: 7:52PM BST 03 Jun 2009

The central bank has been burning reserves to defend the lat in Europe’s Exchange Rate Mechanism, but markets doubt whether Latvia has the political will to carry through draconian cuts in spending – or whether such a policy even makes sense at this stage.
Tremors hit bank shares in Stockholm and triggered a sharp fall in Sweden’s krona. Swedbank, SEB and other Swedish banks have $75bn of exposure to the Baltic states, and face cliff-edge losses if the pegs snap.

Article continues: http://www.telegraph.co.uk/finance/f...rn-Europe.html




And again from Karl Denninger today:

Heh Bernanke - YOU ARE A CLOWN!



Wednesday, June 3. 2009

What the hell is this nonsense? Chairman Ben S. Bernanke
Current economic and financial conditions and the federal budget
Before the Committee on the Budget, U.S. House of Representatives, Washington, D.C.
June 3, 2009 http://www.federalreserve.gov/newsev...e20090603a.htm

Excerpt from Testimony by Bernanke

The increases in spending and reductions in taxes associated with the fiscal package and the financial stabilization program, along with the losses in revenues and increases in income-support payments associated with the weak economy, will widen the federal budget deficit substantially this year. The Administration recently submitted a proposed budget that projects the federal deficit to reach about $1.8 trillion this fiscal year before declining to $1.3 trillion in 2010 and roughly $900 billion in 2011. As a consequence of this elevated level of borrowing, the ratio of federal debt held by the public to nominal GDP is likely to move up from about 40 percent before the onset of the financial crisis to about 70 percent in 2011. These developments would leave the debt-to-GDP ratio at its highest level since the early 1950s, the years following the massive debt buildup during World War II.

Certainly, our economy and financial markets face extraordinary near-term challenges, and strong and timely actions to respond to those challenges are necessary and appropriate. Nevertheless, even as we take steps to address the recession and threats to financial stability, maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance. Prompt attention to questions of fiscal sustainability is particularly critical because of the coming budgetary and economic challenges associated with the retirement of the baby-boom generation and continued increases in medical costs. The recent projections from the Social Security and Medicare trustees show that, in the absence of programmatic changes, Social Security and Medicare outlays will together increase from about 8-1/2 percent of GDP today to 10 percent by 2020 and 12-1/2 percent by 2030. With the ratio of debt to GDP already elevated, we will not be able to continue borrowing indefinitely to meet these demands.

Addressing the country's fiscal problems will require a willingness to make difficult choices. In the end, the fundamental decision that the Congress, the Administration, and the American people must confront is how large a share of the nation's economic resources to devote to federal government programs, including entitlement programs. Crucially, whatever size of government is chosen, tax rates must ultimately be set at a level sufficient to achieve an appropriate balance of spending and revenues in the long run. In particular, over the longer term, achieving fiscal sustainability--defined, for example, as a situation in which the ratios of government debt and interest payments to GDP are stable or declining, and tax rates are not so high as to impede economic growth--requires that spending and budget deficits be well controlled.

The problem is that Bernanke is enabling these sky-high deficits by intervening in the Capital Markets - that is, by buying both agency and Treasury bonds!

IF Bernanke was a true independent central banker, and IF he believed the first word that he was speaking, he would force fiscal restraint by refusing to buy any more MBS or Treasury debt.

Rates would move up, but this would put a 1990s-style bond market slam-hold on President Obama's and Congressional "drunken-sailor style" spending binge.

I only look at what people do - a good part of the time what people say is in fact exactly the opposite of what they're doing, because they are trying to goad you into doing something stupid so they can say "Sold To You!", sticking you with the bag.

I will buy that Bernanke is serious about his so-called "urgings" when he withdraws the idiotic attempt to support both MBS and Treasury issuance.

Perhaps - just perhaps - this speech is a warning - Ben has been reading some Tickers and listening to some Chinese folks, and is starting to get concerned that a bond market implosion may be in the offing - and he has no intention of being the one caught holding the bag when it blows up.

Funny how it only took Ben two years beyond when I started screaming about this in public to figure it out!

SOURCE: http://market-ticker.denninger.net/a...-A-CLOWN!.html

[peaceandlove]

Originally Posted by pineal-pilot-in merkabah

http://www.bizjournals.com/pacific/s...1/daily23.html

looks like cali will be busto in 14 days ..

Good article!

Tuesday, June 2, 2009, 12:21pm HAST
California will run out of cash in 14 days
Pacific Business News (Honolulu)

Hasta la Vista Baby!