Comments on Market Skeptics: Still Researching Corruption At The Treasury

Another excellent series of articles, Eric. And ye...

2009-06-24T09:48:27.299-07:00

Another excellent series of articles, Eric. And yet, I feel that the corruption of the Treasury Department is merely piggy-backed on the much more fundamental culture of fraud that has grown up around the dynamics of the 'fractional reserve' system.

As garnered from Ellen Browns' most recent essay: 'BIS Global Big Brother, Trading Financial Stability for National Sovereignty?'...

"For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. “Allow me to issue and control a nation’s currency,” Mayer Amschel Bauer Rothschild famously said in 1791, “and I care not who makes its laws.” The real rebellion of the American colonists in 1776, according to Benjamin Franklin, was against a foreign master who forbade the colonists from issuing their own money and required that taxes be paid in gold. The colonists, not having gold, had to borrow gold-backed banknotes from the British bankers. The catch was that the notes were created on the “fractional reserve” system, allowing the bankers to issue up to ten times as many notes as they actually had gold, essentially creating them out of thin air just as the colonists were doing. The result was not only to lock the colonists into debt to foreign bankers but to propel the nation into a crippling depression. The colonists finally rebelled and reverted to issuing their own currency. Funding a revolution against a major world power with money they printed themselves, they succeeded in defeating their oppressors and winning their independence."

interesting article that lends credence to the ide...

2009-06-23T00:59:01.237-07:00

interesting article that lends credence to the idea that

the recent bail out was a sub prime put, pre-arranged to ensure the property bubble didnt burst.

the procedures and players were primed, so offering the put would have been very simple

In military matters, people refer to the military-...

2009-06-22T22:37:17.310-07:00

In military matters, people refer to the military-industrial complex, though it is said that Eisenhower wanted to add "congressional" to the list. The same is true in the financial world.

Everyone just wants a piece of the pie, it's not like one institution is fighting the problem. The fact that there used to be some principled bankers or generals 50 or 100 years ago doesn't change the mess we're in now.

You miss it in your article, but Fisher left the N...

2009-06-22T21:07:03.239-07:00

You miss it in your article, but Fisher left the New York Fed to become undersecretary of domestic finance at the US Treasury.

http://money.cnn.com/magazines/fortune/fortune_archive/2004/02/09/360109/index.htm

He went from dealing the stuff on the Open Market Desk, to issuing the stuff from Washington. Then he went to Blackrock to cash in . . .

Note also that the managing director of Goldman Sachs through all this is Fisher's former boss, the former NY Fed president Gerry Corrigan.

Eric, Great work! Love your blog. BTW you and I ar...

2009-06-22T20:51:57.210-07:00

Eric,
Great work! Love your blog. BTW you and I are on the same page with regards to china.
http://ispeakofpeak.blogspot.com/2009/06/chinese-have-no-choice-but-to-keep.html

"Goldman Sachs Group Inc is on pace to make record...

2009-06-22T17:00:59.000-07:00

"Goldman Sachs Group Inc is on pace to make record bonus payouts after a robust first half, the Guardian newspaper reported on Sunday."

But before cheering lets remember--

"Goldman Sachs received $10 billion from TARP"

True definition of OPM (other peoples money)...

Isn't it obvious, the govt. aimed the printing pre...

2009-06-22T15:03:02.038-07:00

Isn't it obvious, the govt. aimed the printing press bazooka at commodities and treasury bonds but since the printing press bazooka can only aim at so many places at a time, stocks took a big hit because the printing press didn't hit them.

USD is strengthening today. Wholesale massacre in ...

2009-06-22T10:01:00.368-07:00

USD is strengthening today. Wholesale massacre in the commodity world, including PMs. Even DBA (I own) dropped as much as 2.5%. It seems that people don't eat anymore when the economy slows down.

Gold is off like 1.5% today.... wonder what caused...

2009-06-22T07:06:33.841-07:00

Gold is off like 1.5% today.... wonder what caused that? One article said it was in anticipation of the FOMC meeting.

More fun: The International Accounting Standard Bo...

2009-06-22T04:15:15.408-07:00

More fun:
The International Accounting Standard Board (IASB) is working on new rules to spin losses with banks http://is.gd/197M1
Soon we will all be rich!