Your Plan Worked

In 2009 the new Treasury Secretary, Timothy Geitner announced on after a “behind closed door” meeting of the Fed and Treasury that a final decision on “the plan” for emerging from the “Great Recession” has been made. Listening on Bloomberg Sirius at the time, I thought his voice was almost giddy compared to previous administration pronouncements. When I heard his cryptic summary of their decision, I knew they were insane. At least I believed they  were going  to buy us a little time at the risk of making the eventual blowup even worse. 

I was wrong. So what did he say. “The plan” was to blow another bubble. Paraphrasing of course, but Geitner happily announced that “they” had decided to use multiple tools to “reinflate” the financial markets and economy. There were NO specifics given by Geitner in the brief statement, but it was evident by his ebullient announcement, the bankers had their desired plan. Ironically it was shortly after this time that Dylan Ratigan became increasingly militant with our financial disaster and even managed to get himself fired for his famous “we’re being extracted” rant on MSNBC.

I was naive. I knew they were capable of levitating the markets, but didn’t fully appreciate just how willing they were to create the largest pile of “malinvestment” in the history of mankind. They were willing to pour trillions of freshly minted FRN’s into companies that had zero chance of ever making enough profit to pay off their debt or to justify one penny of their stock share price. They power of borrowing money at zero interest can build a tremendous amount of stock share price. It can let money bleeders like TESLA and UBER and NETFLIX just keep gobbling up cash to fill their cash hemorrhages. Meanwhile, companies that have an actual balance sheet to adhere to, are being put out of business by these behemoth money laundering operations.

Its become obvious their plan had NO economic law precedent behind it but instead was (as they said) an “experiment”.  So WHAT were they “reinflating”?  LOL…..they were bankers….therefore they were going to REINFLATE THE BANKS!
To do so they needed to put Trillions into the Banks through every means necessary so they invented products like QE. LOL…QE is simple. They printed fiat money to buy the bad debt products on the bank’s balance sheets…..essentially making the Fed the “Bad Bank”, while breathing life into the Zombie banks. During the next nine years any insolvent or bankrupt entity (like hedge funds or pensions) that started to bleed publicly would be quickly “disappeared” with a paper fix. “Financial markets” applauded each intervention by the Central Planners. But after eight years, cracks started to appear.

It became obvious to veteran market participants like Dalio, Druckenmiller, et al. that the usual “cycle” was not being “deployed” by their puppet masters. That was unsettling and soon the voices of reason began sounding an alarm. They recognized they could not game the system because the system was mathematically destroyed and the Central Planners were not willing to let Nature clean out their Malinvestments. The “system” they had gambled err invested in for years had finally been destroyed by they immorality and greed exceeding the carrying capacity of the host the parasites had fed on. Without a “rule of law” we had killed off the goose that laid the golden eggs.  

We had lied, cheated, betrayed, tortured, slaughtered, murdered innocents by the millions to maintain the illusion. Do you believe in God? Do you believe in a “higher power”?  Do you believe in justice? Do you believe in the Laws of Nature? Karma? Good vs Evil? …….LOL maybe you just believe the boyz CONtrol everything.  I hope they like this latest “bubble”. I’m sure they won’t pop it. tick tock