Ellen Brown: “The Fed has now delivered its ultimatum: there will be no “quantitative easing” for municipal governments.”
“Bernanke’s an asshole.”
wo former senior executives with Iceland’s failed Landsbanki bank have been arrested over allegations of market manipulation, the special prosecutor’s office said Friday
MK: Robert Lenzner is the Tokyo Rose of currency manipulators. This is the worst kind of financial reporting that relies on simply citing a few comments from different analysts and claiming, in a pseudo-contrarian claptrappy way that such consensus can’t be right. No analysis at all, just a few lines tossed off disguised as insight. The trend toward a world currency to replace the Dollar has been discussed here many times. Of course CB’s around the world will try to ‘extend and pretend’ the debt bubble crisis by rolling trillions of dying currency bets into a new global currency – based on SDR’s and implemented by the IMF/World Bank/Wall St. But this means creating 2 to 3 times more paper currency than is currently circulating. Gold and Silver RISE in proportion to the amount of phony paper in circulation. I guess what Lenzner is trying to imply here is that a switch to a new world currency would be an orderly net reduction in the overall amount of worthless paper. But if that were the goal, CB’s could try that right now. They don’t need to crate a new world currency to cut back on reckless money printing. They can simply cut back on reckless money printing. Forbes will always pump pro-bank propaganda. In a bull market in paper it can justify this as needing to prompt new investors to take the plunge and stoke growth. But in a protracted bear market for paper and a bull market in metals like we’re in now, it’s just irresponsible. Keep in mind that markets follow the logic of self-reinforcing justification. As metals prices rise, more people will see them as suitable alternatives for paper money. And this also means that when the change to metals backed currencies comes, the prices on that day will stick. Unlike other commodities, peanuts for example, a huge run up would naturally be followed by a fall but peanuts will never substitute for Federal Reserve obligations and used as currency whereas Gold and Silver can and will – so the gains we’re seeing now (and still to come) could be made permanent by a new Gold/Silver standard.
“The giant US banks have been bailed out again from huge potential writeoffs by loosey-goosey accounting accepted by the accounting profession and the regulators.”
- US Banks Report Phantom Income on $1.4 Trillion Delinquent Mortgages; Purposeful Delays to Inflate Earnings?
MK: The big accounting firms, along with the rating agencies and fund managers collude to perpetrate this fraud. This has been obvious for many years, Enron being a prime example.
The link above describes how the global economy is crashing from a structural breakdown of the debt markets that can not, nor will not ever be paid in full. A 60 trillion dollar global GDP – that is shrinking – will never pay off triple (at least) that size in debt; that’s growing. The happy talk from Washington and Wall St. is that a mix of policies and economic tweaks can solve the problem and we can grow our way back to health. Well, no, that’s not going to happen because of the other eco-disaster unfolding relating to the world’s ecological collapse, which is also structural and not cyclical. One of the favorite rejoinders you hear from the AGW-denial crowd is that the Earth’s ecology is cyclical and we just happen to be in a bad spot right now with good times coming soon. No, this is not true. The problem is structural, not cyclical. The global environment is crashing and various species and eco-systems are becoming extinct as readily as the Greek, Irish and Portugese bond markets. Furthermore, the structural breakdown of both the global bond market and the global eco system is mutually feeding on each other’s demise. As the world runs out of oil (a byproduct of AGW-for profit model at Exxon, etc.), the energy needed to motor the recovery needed to pay off the bonds dries up. There is not enough cheap oil left to energize the economic activity needed to pay off the current level of global indebtedness. Credit, oil, and bio-viability have all peaked.
MK: Dubai was the ‘dot-com’ of housing bubble bursts in 2008. After some inter-Emirate shuffling the hemorraging stopped, but now the wound is open again. I interpret this as more evidence of one of my 2011 predictions; global housing/bank crash deux. The strength in the dollar is already telegraphing this as ‘deflation’ reasserts itself. Just like 2008, as the housing/banks crash took hold, various derivatives priced in dollars had to be unwound – meaning an increased demand in dollars (you have to buy the dollars before you can unwind the contracts).
Max Keiser in Dubai
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