-- Posted Friday, 20 August 2010 | | Source: GoldSeek.com
By R. D. Bradshaw
The drudgereport.com of Aug 15, 2010 had a headline that read “Junk Bonds Issued at Record Pace.” The story was by Michael Aneiro from the Wall Street Journal of Aug 14, 2010.
The essence of Aneiro’s story was that US companies issued “risky ‘junk’ bonds at a record clip” the past week. As Aneiro reported, this big surge in the issuance of these risky junk bonds came at a time when the Fed had interest rates near zero and US government debt had interest rates at near record lows. The article cited these numbers for junk bond sales: $15.4 billion last week, and $21.1 billion month to date. This surge compares with a monthly average of $6.5 billion over the past decade. For this year, the amount may reach $155 billion which will be 80% higher than the year-ago period.
Per Aneiro, investors dissatisfied with stocks and the low yields on government and high-grade corporate bond issues are “snapping up” these risky junk bonds. Apparently, some of these bonds are bringing up to 10% interest per annum as compared with interest returns of 3.15% for triple-A, credit-rated issues.
The Backdrop
The backdrop for this surge in junk bond sales was laid out in the Goldsmiths 150 which addressed the growing debt crisis faced by both businesses and governments in the next couple of years with a need for heavy rollover of debts. Banks alone are facing needed funding of at least $5 trillion and sovereign debt is now estimated at some $50 trillion. As the Goldsmiths 150 noted, the market is going to demand higher interest rates. It is clear from the above WSJ story that businesses are reacting with the above cited junk bond sales which are paying those higher interest rates.
As for as sovereign debt, the Federal Reserve’s FOMC meeting of Aug10 gave us a clue of what Rothschild relative/cousin Ben Bernanke has in store for America. The die is being cast for some huge monetizing of US debt in coming days. Bernanke and his team of Federal Reserve market manipulators and crooks have announced at the FOMC a gradual process of using any and all pay downs from their holdings of mortgaged based securities to buy US Treasuries.
While this process will keep the Fed’s balance sheet flat for the time being in total amount, it does reflect the growing concern by the Rothschild Cabal manipulators that their primary currency of choice, the US dollar, can be in trouble in coming days. As noted last week, in the Goldsmiths 154, the FOMC meeting clearly communicates some apprehension and concern over the dollar and US debt. And if Cabal cousin Bernanke is admitting his plans to buy Treasuries at this level publicly, we can bank on it that secretly (thru currency swaps, etc), the Fed will be pulling out the stops to monetize debt.
What this May Mean
The essence of the above is that private businesses are facing problems in raising money and especially so since there is so much competition from government’s sovereign debts. To meet business demands, businesses are turning to the issuance of risky junk bonds which investors are grabbing up simply because more secure forms of debt pay so little interest with the Cabal’s central banks capping interest rates at such ridiculously low levels.
There is an old axiom on interest rates and debt levels. Historically, it has been true that increasingly higher/riskier debt levels invite higher interest rates. Because of the manipulations by the Cabal masters and their cousins running the central banks, this axiom is dead in the present context. The ridiculous levels of debt of a bankrupt country like the US should be bringing ever higher returns. But because of Cabal central bank manipulations, US government debt is not penalized. Even the big Cabal banks are benefiting in this scam since they can and do get so much money from the Fed at 0 to 1% interest.
The point is that it is hard for non-financial businesses to compete in raising money as opposed to the government and big Cabal financial institutions. Businesses are turning to the issuance of junk bonds with higher interest rate returns.
The Ultimate Fall Out
For the future, this paradoxical situation spells out still one more building crisis which the nation is simply unprepared to address and deal with. There is a growing shortage of money. And the desires and quest for that money is growing by leaps and bounds. At some point in time, the nation will wake up and find that it faces a vast need for impossible sums of money which simply won’t be available--apart from the Fed printing the money and the government passing it out.
Actually, this has been happening for years now with a major acceleration starting in 2008. The Fed is grossly increasing the money supply and the government has been spending it in support of the big Rothschild Cabal banks and financial institutions. But this new money is being grabbed up by the big Cabal banks and they are keeping it or socking it away at the Fed to draw interest on (although this policy is ending). Anyway, the increase in money supply and the increase in federal spending are not floating down to the individual person level in America. Therefore, we are not having an explosion in inflation right now (but we need to just be patient as that explosion is coming one day).
The bottom line is that this move underway by US businesses to issue more and more of this risky junk debt will also have a bad fall-out one day when it’s time to pay the piper. There is increasingly less and less money in our society. So far, all that is happening is that the US taxpayers thru the Treasury and thru the manipulations of Bernanke for his Rothschild banking relatives and cousins is so far being made to benefit the Rothschild Cabal big banks and not the American people. Any number of stories is now regularly arising to tell us that much of the increase in M3 funding has been going overseas. We know the big Cabal banks in London and Europe are soaking it up. And we the people are left with nothing but unplayable debts.
One day, and it may be very close at hand, we are going to have still one more financial crisis from this huge sale of questionable junk bonds. As is always true today, when these debts come due, the taxpayers will be asked to make them good. This is especially true to whatever extent these bonds are sold to Rothschild Cabal banks and financial institutions which have a proven ability to cover their losses and bad investments with taxpayer bailouts.
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Back issues of the Goldsmiths, by the editor of the Analysis of News, can be accessed from a Google or Yahoo search engine by typing in “R. D. Bradshaw” Goldsmiths. Several hundred web sites can be found with the back issues and with translations to Spanish, Italian, German, Dutch, Polish, Chinese, Japanese, Indonesian, Serbian, and other foreign languages. Finally, the “Archives-Goldsmiths” of this website (www.analysis-news.com ) has all of the Goldsmith articles issued to date.
Besides the revelations contained in the Goldsmiths’ articles, the work of the plutocratic financial market manipulators to conspiratorially manipulate and control the financial markets (to make more profits and install a world government under their management) is also addressed at length in the periodic analysis of the news and in other articles produced at www.analysis-news.com. This website has an article of interest to any person interested in understanding the market Manipulators. It is the Hidden Secret of the Manipulators, why they succeed and how to follow their manipulations.
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-- Posted Friday, 20 August 2010 | Digg This Article
| Source: GoldSeek.com
