Recently, a public radio host sponsored an economics professor from MIT. Since he was the former chief economist for the World Bank, you know that he was an Illuminist mouthpiece, a disinformation specialist for the powers of darkness.  He was asked where all the money went that has been lost by the tens of trillions in various asset classes such as real estate and the stock market.  He was asked if it just disappeared into the ether, and he said basically that this is in fact what happened, like there were no winners, but only losers as the values of assets plummeted.  He does not want you to know about where all the money really went.  

          But we'll be more than glad to tell you where it all went, and that is into the private bank accounts of the executives and employees of Illuminist banks, investment banks and brokerage houses around the world from profits generated by flimflam investment sales, commissions, fees, spreads and government bailout money, all of which was paid out in the form of salaries, bonuses and dividends.  The money represented by these trillions in losses that supposedly disappeared into the ether were also paid to insider shareholders like Angelo Mozillo, who bailed out of their stocks leaving the remaining sucker-dupe shareholders holding the bag, to the shareholders of large financial companies and business corporations that took the form of corporate outlays for dividends and stock buy-backs that should never have been paid because their toxic waste holdings rendered their companies bankrupt, as well as to the sovereign wealth funds of foreign dollar surplus reserve nations who are in alignment with the Illuminati and whose potential "losses" on fraudulent derivatives, which they overpaid for by the trillions (when they are finally marked-to-market), have been backed by the US taxpayers, who are now having all these losses shoved up their collective derrieres.

          All that money that has been lost is now being created out of thin air to fund inane bailouts of financial companies that intentionally self-destructed, or to back or bail out Illuminist aligned financial institutions and sovereign wealth funds who purchased the snake oil derivatives with bogus AAA ratings.  All that money that has been magically created out of thin air via our inherently evil, European-style, debt-based fractional reserve banking system, which was set up in America in 1913 via the privately owned Fed, will now debase our currency further to the point where we will eventually experience Weimar-like hyperinflation, and the final weight of the lost buying power that will be experienced via the stealth tax of inflation will be borne by US taxpayers.

          Of course, when the Illuminist mouthpiece-economist was asked where all the money would come from to fund the bailouts, he just said that the US, via its currency's reserve status, had the privilege of borrowing the money by selling its debt to other nations with dollar forex reserves via treasury bonds.  During the entire dialogue, there was absolutely no discussion about what the ramifications are for taxpayers when their government continues to borrow money that can never be repaid.  Not only will all this bailout money, that is being created out of thin air, fail to get our economy going again, it will also exacerbate a myriad of already insurmountable problems created by the intentional destruction of the world economy by the Illuminati to clear the slate for purposes of setting up a world government.

          If this so-called economist would also disappear into the ether like he claims the money from the losses did, he would be doing us all a favor.  Of course, he could then just materialize out of thin air like the money for all the bailouts, and we would then be stuck with him again anyway.

          Barack "Nero" Obama will now play his Marxist FDR fiddle to the accompaniment of the sound of rolling printing presses while Rome (the US) burns to the ground.  He will now not only save our economy with "hope' and "change," he will save our medical care system as well, while tens of millions of illegal aliens, who work under the table and do not pay taxes, and whose money is largely sent overseas and not spent in the US, continue to bankrupt our public welfare systems and hospitals, including Medicaid.  Those who do not take out their Nero-insurance via gold, silver and their related assets will become crispy critters in the ensuing conflagration that will leave nothing but glowing cinders in its wake.  

          In the financial markets, whenever you have losers, you also have winners.  Someone sold the losing asset to someone else, receiving full value for it before the loss was incurred, with full value often being a fraudulent and fictitious figure calculated with mark-to-model values based on bogus assumptions and even more bogus financial ratings and appraisals.  The winners are always the Illuminist banks, investment banks and brokerage houses who sold bogus paper at full value, and whose executives and employees take all the profits off the table via salaries and bonuses before the losses come back to haunt them when things like SIV's and municipal auction rate securities come back on balance sheets by consent (as with SIV's to save the customer base) or by force (as with municipal bonds where regulators like attorney generals made these institutions take responsibility for fraud). Thus, these evil miscreants shift the burden of all this fraud to their sucker-dupe shareholders who have all just been vaporized right before your eyes.

          To be fair to the Illuminist economist, some money that is represented by losses does go into the ether via excessive leverage.  The way some money disappears is through discharge by bankruptcy courts, or by write-offs, in which both the debtor and the creditor lose.  The bailouts are intended to prevent such losses from hitting Illuminist creditors by transferring the losses to the taxpayers, whose government creates money out of thin air to fund the bailout of such losses.  The resulting monopoly money will eventually result in hyperinflation, the collapse of the dollar, the loss of the reserve status of the dollar which the economist chimed about, the downgrading of US treasury bonds, and, via higher interest rates and risk re-evaluation that will become necessary to bring this profligate flow of monopoly money under control, the collapse of the bond market, the real estate market, and the hundreds of trillions in interest rate swaps.  The thermonuclear financial meltdown cometh, so be ready with gold, silver and their related assets.  What has transpired thus far is just the tip of the iceberg that will send the US Titanic down to Davy Jones Locker.

          The never ending story of desperate times, as our government in behalf of American taxpayers, this past week threw another $30 billion lifeline to AIG, the beleaguered insurance giant and CIA front and money laundering operation, that lost $62 Billions in just the fourth quarter.

          We estimated it will cost $500 billion before the bailout is completed. They were insuring mortgage backed securities and other debt against default. Taxpayers have already supplied $17 Billion.

          There is no question AIG has become a bottomless pit and it is illegal and unfair for the American taxpayers to foot their bills. Essentially AIG is holding the government at gunpoint. You either bail us out or the system collapses.     What makes matters worse is government really does not know how the money is being spent.

          The “Second Great depression” began on 2/01/09.

          We expect the Dow over the next few years to go to 3,800 to 4,200, if we are lucky. If we replicate what happened in the “Great Depression” the Dow will go to 1,260 to 1,450, an 89% retracement.

          Here and on radio we have been warning you that many insurance companies will go bankrupt unless the government steps in to save them. The stock of almost every company has been falling and some severely. If you have cash values in life policies or annuities you might cash them out and put the proceeds in gold and silver coins and shares. For those who have to have insurance, use pure insurance, term insurance also known as mortgage insurance.

          S&P/Case-Shiller index says, prices in twenty US cities fell 18.5% on December Y o Y, the fastest drop on record. Sales of existing homes, which account for 90% of the market, fell in January to the lowest level since 1977, and new home sales were the lowest since 1963 when records began.

          Each day it becomes more evident that the call for tariffs and subsides are getting louder and louder. Politicians are coming under increasing pressure from constituents to in-act protectionist laws, and rightly so. Free trade, globalization, off-shoring and out-sourcing have destroyed our industrial base. A revolt is coming and coming fast. Next year we will see legislation, perhaps sooner. Never before, even under British mercantilism has transnational conglomerates, from the US, Europe and Japan developed their manufacturing base on the soil of another countries in such a massive scale to make extraordinary profits, keep their profits free from taxation in offshore banking centers and at the same time destroy the core manufacturing of western countries. The end of globalization would bring the US and others back to life, and once under way will exert major pressure for higher gold prices.

          How can investors have any faith in corporate America? At Pacific Brands Solomon Trujillo received $20 million as he left the company and the board gave themselves raises as workers were being thrown out on the street. This is a scene reminiscent of “Annie” and the infamous “Daddy Warbucks.”

          As this transpires it looks like the US 2009 fiscal deficit will be close to $2 trillion. That as CDS default swaps on US Treasuries rise 100 bps or $100,000 for insurance on a $10 million five year Treasury note. It cost only $5,000 to do this a year ago. We do not see a default yet, as government will print money and float more debt. The loss will be in the form of inflation. Most all of the Treasury’s financing is short-term, which is a very vulnerable position. In fact recently the 30-year bond was reintroduced and we’ll have 7-year Treasury notes, which we haven’t seen since 1993. As we have reported previously it won’t be long before government borrowing crowds out lending to the private sector. The only way to avoid that is to have the Fed buy and monetize the debt and create hyperinflation and that is a work in process. As Ron Paul told Ben Bernanke recently, “credit is not capital.” You cannot recapitalize the banking system by printing more money or extending credit. Credit and capital should come from savings, not from raising a magic wand. We need 15% savings, not the current 2.5%. Once you see savings over 10% you will know we’ll be ready to exit depression. Banks will be ready to expand by retaining earnings, increasing deposits, by writing off losses and then by making sound loans.

          We will remain in depression until this can be accomplished. Waste, errors and maleinvestment have to be cleared off the decks. As long as government and the Fed and other central banks bail out banks, financial firms and others we will have hyperinflation and repairing the system will not be accomplished. A depression is a health-restoring event. It purges the system of excesses.

...

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-- Posted Monday, 9 March 2009 | Digg This Article