Gold Manipulation, Debt Distress and the Cap and Trade Scam

Government to Lose Control of Gold Markets, Debt Distress, Goldman Sachs Subsidies, Cap and Trade Swindle, Population Control, Banks are Insolvent, Healthcare Bribes, Significant Chance of Slowdown Next Year

        Distressed debt – defined as a bond trading at less than 50 cents on the dollar – is rapidly disappearing from US financial markets as yield-hungry investors push up the prices for even the most beaten-down securities.  Bonds trading at less than 50 cents on the dollar now account for only 1.1% of the high-yield market, or $8.9bn in securities, down from 27.5%, or $202bn in bonds, a year ago, according to JPMorgan data.  The intense demand for once-distressed bonds is stirring the debate about whether investors are acting wisely or piling into junk bonds because of a lack of opportunities elsewhere in the fixed-income markets.  With the Federal Reserve keeping its overnight lending rate near zero, the yield on a two-year Treasury remains less than 1%.  ‘The Fed’s zero interest rate policy has been a catalyst for billions and billions of dollars flowing into the high-yield market,’ said Tim Donohue, managing director for high-yield markets at JPMorgan.  ‘The government is holding down interest rates and, as a result, cash is chasing one of the few asset classes that still offers a healthy yield.’” [Our stance has always been never chase a yield. It always ends in loses.]

          “Even as the biggest banks repay their government debt in what is being heralded as a successful rescue program, four troubled giants of the financial world remain on government life support. These companies, the American International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state. And the total risk they pose to the taxpayer far exceeds that of the big banks. All the companies have recently drawn new government money or are in talks to do so: Fannie Mae and Freddie Mac have used $112 billion of a total $400 billion pledge from the Treasury. Now, according to people close to the talks, officials are discussing the possibility of increasing that commitment, possibly to $400 billion for each company, by year-end. GMAC already has $13.4 billion from the [TARP], and has been in talks with the Treasury about getting up to $5.6 billion more. A.I.G recently drew $2 billion from a special $30 billion government facility, which was created in the spring after a $40 billion infusion proved inadequate.  Those capital commitments from the Treasury do not capture the full scale of government assistance to the companies. The government has also bought mortgage-backed securities and guaranteed corporate bonds, while the Federal Reserve Bank of New York has made an emergency loan. [It is called a rat hole.]

          Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers. Payments on about 12% of mortgages exceeding $1 million were 90 days or more overdue in September, compared with 6.3% on loans less than $250,000 and 7.4% on all U.S. mortgages, according to First American CoreLogic Inc.

The three largest U.S. banks are preparing for a comeback in the market for collateralized debt obligations backed by high-yield, high-risk loans, two years after issuance tumbled when credit markets seized up.  JPMorgan… Bank of America…. and Citigroup… are approaching managers of leveraged loans to offer terms for new collateralized loan obligations following a record rally this year in the debt, according to people familiar with the discussions. The highest-rated portions of CLOs have climbed to 89 cents on the dollar from a record low of 69 cents in April. The $440 billion market for CLOs, which pool loans and slice them into securities of varying risk, largely disappeared at the end of 2007. [They never learn.]

Cap & Trade has a lot to do with global warming, but even more to do with creating investment vehicles similar to credit default swaps (CDS). A trillion dollar market in carbon credits. The big players are Goldman Sachs and Al Gore, who, of course, will save the world by lying. His latest is the icebergs and glaciers in the Artic and Antarticia will disappear in three years. This is the same Goldman Sachs that donated $4.5 million to the Democratic Party.

The hook is if a company or industry emits more than the allowed carbon set by government bureaucrats, it must trade and or buy permission from someone else that produces less carbon. 

Then there is the ubiquitous Chicago Climate Exchange. The big shareholders are Goldman Sachs, Hank Paulson and Al Gore. Talk about incest. This is really what Cap & Trade is all about and that is taxing the public and leaving them destitute.

In addition these megalomaniacs are obsessed with population control, in an insane belief of population reduction via a reduction in carbon emissions. This is similar to Communist China’s one child policy. This is where they threw the female children into the Yangsee River. Today they simply abort them in that Godless paradise. If you pay for child reduction in some distant land you will get a carbon offset so that some child’s life can be snuffed out. This is a modern version of indulgences, which were used during the Renaissance to smooth the path to heaven. These population carbon offsets are offered by Optimum Population Trust and is part of the official agenda of the United Nations.

The UN Population Fund’s latest report unequivocally links population growth with climate change. They say the only way disaster can be avoided is to reduce fertility rates so that we won’t have a climate change disaster. These Hitlerians are convenienced that population growth has been responsible for about half of the growth of worldwide carbon emissions. The idea of population control is very unpopular, that is a way it is wrapped in climate control. The fact that we even exist is a problem. Yes, these people believe this. This is not some sci-fi movie. These people are truly mentally disordered. In fact, our President is as loony as these creeps at the UN and gave them $50 million of your taxes to advance these policies. Worse yet, this pseudo-science is being taught in schools and universities worldwide in the hope the elitist can create climate control zombies, who will choose not to procreate. This reminds us of the website One Less Child” that promotes such stupidity. In 

Canada, journalist Dianne Francis wants Canada to implement a one-child policy. Her article, “The Real Inconvenient Truth,” caused an uproar in Canada, because most Canadians are against such policies. This sort of madness has been reflected as well in a book written by Mr. Obama’s “science czar,” John Holdren, called Ecoscience in which he advocates population control that is truly over the edge. He advocates a sterilant be added to water and food to induce involuntary fertility control. He also believe women should be sterilized after a second child, or simply to sterilize men after their second child production.

Those in America behind this among others, are all members of the Illuminati: Al Gore, David Rockefeller, Paul Gates, Warren Buffett, George Soros, Michael Bloomberg, Ted Turner and Ophrah Winfrey. Gates and Buffett’s entire fortunes are devoted to climate control and population control. The propaganda you can expect from these elitists will be that no action will result in disastrous environmental, social and industrial threats. Do they really expect someone with even a 90 IQ to believe such drivel? This is what you can expect in your future if you let it happen. If you let these people get away with this the elitists are no longer using subtle means to convenience you. This is in your face: fascism. 

In the midst of rabid insanity and with a straight face Africa and others have demanded $100 billion a year after 2020, as reparations from rich countries to offset their carbon imprint on the world. A true Communist philosophy for the redistribution of wealth. Secretary of Agriculture Tom Vilsack who pledged $1 billion to preserve world forests led off the money parade. Our country is already $105 trillion in debt, so what is another billion in the scheme of things? This is a reflection of a great fear of Al Gore that all the ice in the Artic and Antarctic will melt and polar bears will mate with grizzlies. If the truth were known, the Antarctic ice has expanded 300,000 square kilometers, or 116,000 square miles since the 1970s. This proves carbon dioxide has little or nothing to do with global warming. The South Pole has shown significant cooling in recent decades. With such evidence this scam will be put to rest. Thank goodness for the hacked e-mails, that exposed this criminal fraud. Our Lord works in strange ways.

We have to chuckle when the world is concerned with financial events in Dubai, Iceland, Latvia, Lithuania, Estonia, Romania, Hungary, Austria, Spain, Ireland, Portugal and Italy, when all of Europe’s and America’s banks are insolvent. Who is kidding whom? We cannot leave out the brokerage houses and insurance companies. We must admit that the Fed and other central banks have done a good job covering up the mess they deliberately created by deceiving the public, as they prepare for stage 2 of the credit crisis. The only way these companies can continue to “survive” is to continue to keep two sets of books. Decisions by the FASB and the BIS have guaranteed that the charade will continue unbeknownst to the public and professionals alike. We are long past moral hazard and into criminal enterprise. They will operate in a one-world of in reality until they all simply collapse. Each and every day their underlying assets deteriorate. Next to fall over the years 2010 and 2011 will be the stock market and bond market. That should expose the rotten underpinnings and bring about the demise of our financial system. The only question is will we look like Weimar, Zimbabwe or Argentina?

We still ask why has there never been any civil or criminal actions against the banks, brokerage houses, rating companies by foreign banks, fiduciaries and insurance companies, which purchased the toxic waste known as collateralized debt obligations?  We have seen a handful of civil suits in the US; now two years after the fact. The action of these foreign entities, which purchased 60% of the garbage, tells us this was part of a large plan to take the world financial system down. These people are very bright; they had to be part of the plan. Next they will feel the sting of derivative failure and say nothing as they collapse. These events are fraud on a colossal scale. In the background making sure nothing real is discovered is the SEC and CFTC, agencies formed to protect banking, Wall Street and insurance from discovery of the frauds that they are. The frauds come one after another: Madoff, Dubai, all government statistics, such as housing, unemployment, CPI, PPI and on and on. All are events of fiction. A pabulum to keep the masses asleep. The birth/death ratio is a transparent fraud for all who care to look. Economists and the media cannot expose such chicanery, because if they do they will lose their jobs. Thus, the task is left to just a handful of warriors with the guts to expose the system. We might add at great personal cost. Not a word is spoken when every month the gold, silver and USDX options markets are rigged by our government with the help of Goldman Sacks, JPMorgan Chase, Citicorp and others.

        Ben Nelson’s “Cornhusker Kickback,” as the GOP is calling it, got all the attention Saturday, but other senators lined up for deals as Majority Leader Harry Reid corralled the last few votes for a health reform package.

         Nelson’s might be the most blatant – a deal carved out for a single state, a permanent exemption from the state share of Medicaid expansion for Nebraska, meaning federal taxpayers have to kick in an additional $45 million in the first decade.

         But another Democratic holdout, Sen. Bernie Sanders (I-Vt.), took credit for $10 billion in new funding for community health centers, while denying it was a “sweetheart deal.” He was clearly more enthusiastic about a bill he said he couldn’t support just three days ago.

         Nelson and Sen. Carl Levin (D-Mich.) carved out an exemption for non-profit insurers in their states from a hefty excise tax. Similar insurers in the other 48 states will pay the tax.

         Vermont and Massachusetts were given additional Medicaid funding, another plus for Sanders and Sen. Patrick Leahy (D-Vt.) Three states – Pennsylvania, New York and Florida – all won protections for their Medicare Advantage beneficiaries at a time when the program is facing cuts nationwide.

         All of this came on top of a $300 million increase for Medicaid in Louisiana, designed to win the vote of Democratic Sen. Mary Landrieu.

Nobel Prize-winning economist Joseph Stiglitz warned there’s a “significant” chance the U.S. economy will contract in the second half of next year, and urged the government to prepare a second stimulus package to spur job creation.

         “The likelihood of this slowdown is very, very high,” Stiglitz told reporters in Singapore. “There is a significant chance that the number will be in the negative range.”

Stiglitz, a professor at Columbia University, called on Washington to make more funds available to state governments who face a drop in tax revenue.

         The U.S. economy, the world’s largest, must grow at least 3 percent to create enough jobs for new entrants into the labor force, he said.

         The unemployment rate fell to 10 percent in November from 10.2 percent in October.

“If you don’t prepare now, and the economy turns out to be as weak as I think it’s likely to be, then you’ll be in a very difficult position,” he said.

         The economy grew at a 2.8 percent rate in July through September, after a record four straight quarters of contraction.

         U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.

         Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan’s Ross School of Business.

         Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.

         Political influence was most helpful for poorly performing banks, the study found.

“Political connections play an important role in a firm’s access to capital,” Sosyura, a University of Michigan assistant professor of finance, said in a statement.

        Banks with an executive who sat on the board of a Federal Reserve Bank were 31 percent more likely to get bailouts through TARP’s Capital Purchase Program, the study showed. Banks with ties to a finance committee member were 26 percent more likely to get capital purchase program funds.

         As of late September, nearly 700 financial institutions had received bailouts of $205 billion under the capital purchase program, the study said.

         The banking industry has long been criticized for using political influence to obtain bailouts.

Scott Talbott, a senior vice president with industry lobbying group The Financial Services Roundtable, said the study was skewed because it did not exclude nine of the largest banks that were “strongly asked” by the government to take bailouts.

        Those banks included Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N), and Morgan Stanley (MS.N) — all of which repaid their bailouts in June.

Bank of America Co (BAC.N) and Citigroup Inc (C.N) more recently announced plans to pay back taxpayers.

         Talbott also noted that $116 billion has been repaid with interest.

         “This demonstrates the banks were excellent stewards of the taxpayer’s money,” Talbott said.

But a watchdog for the government’s bailout, the special inspector general for TARP, said last month that the broader $700 billion bailout program “almost certainly” will result in an overall loss for taxpayers.

President Obama said in October that despite the bailout, there was still too little credit flowing to small businesses. (Reporting by Steve Eder; Editing by Gary Hill)

Iran’s Trade Promotion Organization has announced a near future plan to completely exclude the US dollar from the country’s foreign revenues and reserves. 

Iran has recently asked Japan to replace the US dollar with the yen in oil deals it has with the Islamic Republic,                 Mehr News quoted the organization as saying on Friday. 

Since October 2007, Iran has received 85 percent of its oil revenues in currencies other than the US dollar and              Tehran is determined to find a substitute for the US dollar for the rest of its 15 percent of oil revenues, the report added. 

Iran suggests other currencies such as the euro and the United Arab Emirates’ dirham to replace the US dollar for oil revenues. 

         The constant declining value of the dollar and persisting economic crisis in the US has forced many countries to drop the currency in favor of a more stable and valuable one. 

Saudi Arabia, South Korea, China, Venezuela, Sudan and Russia have taken steps to replace the US dollar in their foreign exchange reserves. 

[Now it is only a matter of time before the attack on Iran begins.]