Fannie, Freddie, The Treasury Lifts the Limits. What It Means and What to Do

The treasury came out on December 28th and lifted the limits on how much the two companies would be getting from the treasury to stay alive. The two highly bankrupt companies had a limit of $200 billion each from the treasury. This signals 2 things: The first is that the housing market is still horrendous and it will get much worse. The second is that the government is not going to let these two companies not go under just as they did not let the banks go under. We have seen how the still so bankrupt bank stocks did even though they are still largely bankrupt. My call -despite morally and intellectually disagreeing with what is going on with keeping these bankrupt companies alive- is to buy the stocks of Fannie and Freddie. When I say buy I do not mean go and buy a truck load of stock, but rather a tiny portion of your portfolio. Personally I am keeping it at approximately 3% of the money set aside for possibly buying stocks. I remind you that my main investments are gold and palladium and I recommend putting a bulk of your investments into hard assets for the long term. The fact that Treasury is willing to save these firms at any cost is yet another sign that the dollar is going to be under a lot more pressure going forward as the housing market and the economy continue to be in shambles and will get much worse and the government does not care about the dollar aparently. SO go ahead and buy a few more gold coins. You should get your hands on physical gold before it is too late. When this thing folds out, it will happen very quickly even if it takes 10 years to fold. My personal guess would be 2 to 5 years, but I can see it lasting longer. It definitely will happen though. History is on the side of it definitely happening again.

Also, do not be bothered by the recent fall in the price of the gold. It is complete illegal manipulation by the Federal Reserve and most likely NY Fed and a few big banks such as JPM and GS. They can only do it so much and for so long. If you follow the intraday trading or even the daily trading and how the paper gold market trades, you'd have to be blind not to see that there is heavy manipulation and in the longer run that is amazingly awesome for where the gold price will end once the ploy runs its course.

Federal Reserve is Short More than $1 Trillion in Paper Gold!!!!

This is the first version. More to come on this topic soon. Get your gold in physical form before it is too late.

Euro is going down = USD is not going up,and Gold should go up

Don't mix the two up folks. USD is not improving. USD is dead! Euro is going down due to the troubles in Greece and Austria. There is a huge difference. So gold going down just because USD seems to be going up relative to euro is ludicrous. Gold should be going up huge due to the problems in the eurozone. Gold is real money as is anything tangible compared to the pieces of paper that is called fiat money. Get your gold in physical form before it's too late. GOT GOLD?

NY State Joins California in Bankruptcy

Governor Paterson came out on bubble TV (CNBC) and said that NY state is practically bankrupt. In any other country with free and good media this would have been big news and the stockmarket would be down 6-7% right this moment, but not here because media does not want you to know the reality since they are owned by the same rich people who would be hurt most by these news, so they try instead to hide it so that they can pass all the hurt and pain on regular people like us eventually using the government. But don't worry the current fiat money system that is the base of all this crony capitalism is running on borrowed time and the markets will make up for not going down during the upcoming crash.

How Foreclosure Data is Manipulated

Citi decided to suspend foreclosures for 30 days. Remember this when next month we look at the data. I do agree with suspending foreclosures during the holiday season, but this trick in nature has been used over and over during this crisis to make the data look more tame. They have changed the definition of delinquency so many times (for eg. from being back in payments from 2 months to 6 months etc.) that the ulterior motive is so obvious. Housing market is terrible and only will get much worse. So enjoy.

Bubbleworld: Dubai News

So Abu Dhabi gets $10 billion bailout to cover part of the initial $26 billion that was failing out of the $60 billion that it will/might eventually fail on unless things drastically change -which they will not- or the US (most likely the Fed or Treasury's oil rich nation money management group) through printing money and illegally transferring it to Dubai saves it. By the way, the Treasury's money management group does not report to the congress on how it manages the oil rich nation money that comes from the oil rich nations buying US treasury bonds and keeping them at the US and the US Treasury managing the interest income on these bonds to cover project costs in the oil rich nations that are only given to US companies that are 'tight' with certain families such as the Bush family. Please refer to "The Confessions of an Economic Hitman" for the details on this arrangement.

The real point I want to raise here is the bubbly nature of all of this. The fall of Dubai was not a big deal according to mainstream media and a bunch of idiotic so called "economists" that are on the payroll of certain interests (so their calls are useless AND WRONG), but somehow Dubai being partially bailed out is great news. Ludicrously stupid. This is the nature of the bubble in the stocks we have currently. This is a huge bubble that will fail. Get ready to short in a big time because we will take out the lows on the S&P. US is in the worst shape of any major economy or main emerging markets. Short short short!!!!

Great Gold Piece on Zerohedge

Here is to idiots who keep saying you cannot eat gold and gold has no intrinsic value. What is the intrinsic value of a dollar I ask you. Yeah, I thought so: You've got no clues!!!! Also, can you eat dollars? Would you like some ketchup with that????

Goldman's Evil Agricultural Twin, Monsanto

Besides poisoning us with their cancerous modified gene products and other chemicals, this company uses horrendous tactics both with small farmers that go a far as threatening illegally (topics that can be seen in the famous movie Michael Clayton) and also trying to keep competition out as was recently pointed out by the article that can be reached through the link.

Paying back TARP? What About All the Guarantees, AIG Money and Other Money Received

I don't get why everyone is so obsessed with TARP which is the smallest of the money all these financial institutions such as Goldman, Bank of America, Morgan Stanley, and Citibank received. What about all the guarantees by government of all the debt these institutions issued (FDIC guarantee on their debt). What about the other hundreds of billions of dollars of guarantees especially for Citibank and Bank of America? When and how will they pay for those???? They cannot. They are still vastly insolvent. How about Goldman paying back all the money they received for the AIG failure when in fact AIG did not fail??? When will they pay any of that back?? I guess the answer is never. This is mainly because we have Timothy Geithner as the treasury secretary and we have Bernanke and his illegal Fed that should be abolished ASAP as well as a president who talked about change, but that was all BS. Nothing has changed, not even Bernanke or Geithner nor the way the corruption continues.

Jim Rogers: "The only institution in the world that doesn't expect to be audited. They must have done something wrong, must have something to hide."

Jim Rogers is amazingly speaking words of wisdom saying that the Fed should be audited and then abolished supporting Ron Paul's suggestion. He gives examples from the past when 2 other US central banks due to their similar illegal activities of the current one have been abolished and the economy has done better after they disappeared. He says "We don't need the Fed. The Fed is making our lives miserable." He points to the obvious that they must have done something wrong and that they must have something to hide that they are insisting so hard not to be audited. He points to the very simple fact that nobody has a good explanation of how auditing and getting information is a wrong thing. He says he does not see how it would affect the independence at all. He reminds us of how central bankers have not done anything successful in real life that is the practical world of investments and finance and he does not understand why people all of a sudden think these people are smart. I could not agree more with Jim Rogers. Here is the link to the Aaron Task interview.

Jim Rogers: "What Recovery? It's Getting Worse, Not Better"

We are in good company. Rogers says people who get the money from the Fed's illegal operations -he does not exactly put it that way, but that what he means- are in better shape so they think everyone is, whereas people who are not getting the money are in worse shape both because of deterioration of the economy and also are diluted as shareholders and the death of the dollar. Here is the Tech Ticker interview with Aaron Task.
Another highlight of the interview is Rogers calling Bernanke and Greenspan worst central bankers in history.

Dec 10 Jobless Claims - Things getting Worse and Worse

Initial jobless claims for week ending Dec 5 were 474,000. That is a huge number of people initially, that is for the first time, applying for help from the government. Most mainstream media is trying to spin this as a good thing that the four-week average is lower than before or that the 474,000 number has "decreased" compared to a year ago or other stupid stuff like that. Check this link for an example. This is ludicrous. It is meaningless to say this number is decreasing because that would be saying the second derivative of total joblessness is decreasing. That means joblessness is increasing at a decreasing rate. Guess what: JOBLESSNESS IS STILL INCREASING!!!!! And not at that slow a rate. There is not that much positive to be found in that. Obviously eventually it will increase at a slower rate. There are only a finite number of jobs on the world and you can't continue losing more and more jobs every week. The fact that we are still losing hundreds of thousands of jobs is a horrendous situation and a time bomb on the stock market. I am not saying the economy because the economy had no recovery whatsoever. Without jobs coming back, the stupid Wall Street bubble will end in tears again. It is unavoidable.

SOme people are trying to spin the fact that total claims have decreased. To those brainiacs I would like to point out that a lot of people's claims from the government have ran out despite the extensions to benefits. That is not a good thing and in good time it points to possible social unrest. Think before you look at the numbers and try to give it a positive spin mainstream media and CNBC especially. ALso, why on earth is Christina Romer always smiling like a pumpkin??? What's so amusing about people losing their jobs and economy being in shambles and the Fed and Treasury killing the dollar??? I don't see anything to smile about. This is the biggest circus I have ever seen.

Fed's Blatant Attack On Gold

The Federal Reserve's illegal crusade against real, legal money and honesty continues. Gold is real money and it is being looked at as a barometer for the dollar and validity of the Federal Reserve and its policies by some. This is why The Federal Reserve as has been proven by many time and time again -of course mainstream media tries to hide this fact from the people of this country- tries to manipulate gold price from showing that the dollar has been murdered by the Fed and banks like Goldman and JPM that rule it. Talking about the independence of Fed!!! It should be independent from those banks first of all rather than the people of this country and their choices and votes or democracy for that matter.

The good thing is the blatant nature of the attack of the last several days is so apparent and full of fear that you do realize it is one of the last that the Federal Reserve and the banks that rule it can muster. Soon enough all of this fail: banks will be known for what they are, insolvent, and Fed will have to be dissolved after it is shown that it is illegal or at least a lot of changes to its current structure will be made and hopefully will not be allowed to participate in illegal manipulations of gold and stock markets or bailing out of their friends at the expense of the people of this country.

Try they will to stop gold, but fail they will more successfully.

Have a nice day!

Mish Thinks Latest Job Report "Looks Fabricated"

Michael Shedlock known as Mish thinks the latest job report looks fabricated.

B of A is a Short

Bank of America is issuing $19bn of new stock and the stock is up more than 2% on the day. What on earth????? This is so crazy that puts a smile on one's face. A $139 billion market cap insolvent company issues more stock and the market-idiots or manipulators celebrate by increasing the stock price by 2%. This is like a party where blind people are serving the deaf.

This insolvent company no matter what John Paulson says (he lost his main man Pellegrini) will have to fail eventually. Just like people thought there was recovery during the great depression in 1930-1931, people are trying to portray an illusion of recovery. There isn't one. All the data point out to things getting worse and worse. This time though, dollar is losing its supremacy. Plus the system is cracking. This will end up being worse than the Great Depression. Enjoy the ride and buy gold to prepare.

Get the F*** Out!!!!!

So the number of jobless increased by "only" 11k people, huh? And the prior two months jobless numbers are revised to show a little less than reported, huh? And so stock markets should continue bubbling and gold shold be brought down by brute force, huh? GET THE F*** OUT!

First thing, jobless numbers is a sham. It is an easily manipulated model including the very famous seasonal adjustments and the birth-death adjustments. The number is derived after talking to a what is supposed to be a random selection of households. RANDOM MY A**!

Besides, nobody is talking about 824,000 negative adjustment to the total number of employed by the government that was very quietly done. That is not even mentioning how horrendous the real unemployement rate is when you considered all the problems with the way the government calculates unemployment. Just one simple example is today. The government said that joblessness increased by 11k people, but somehow unemployment rate fell from 10.2% to 10.0%. What????? Do they think we can't even do math???? What is going on is they are taking down some of the discouraged workers or workers whose benefits are finished as well out of the unemployed people number and saying they are unemployable, so they should not be included. That is just one of the gimmicks. There are many more.

Then there is the gold manipulation disgrace. Look at the chart above from goldprice.org. Gold does not/ should not trade like that. The February 2010 contract traded above 210k so far half way through the day and most of in a matter of minutes shorting gold trying to bring the price down. 210k contracts is 21 million ounces which is $25.2 billion dollars. That is nuts. That is 656 metric tones. That is 26% of the global annual production. Saying roughly 50k contracts traded in less than a minute, that would be almost 7% of global annual production of gold being shorted in less than a minute without regard for price. DOes that look normal to you on no news? What do you think is going on? Let me tell you what is going on:

Bernanke hearings are going on and he is being crushed by Senators such as Bunning, so they are trying to lie about unemployment to pump up the market, buy futures to push the stock market and short paper gold to pressure the price down, to create an illusion since Bernanke has been called on the price of gold as a lack of confidence. Since they cannot create confidence itself and since they do not even want to try to, they are trying to create the illusion of confidence. YOU ARE NOT FOOLING ANYBODY!! ALL OF THIS BS WILL FAIL AND STOCK MARKETS WILL CRASH. And crash badly they will ad gold will get to several thousand dollars.

I highly hope Bernanke goes where he deserves which is jail. Senator Bunning instead of sending him back to Princeton to ruin and brainwahs youg brains, should try to send him to ajil for the biggest heist in the history of humanity. Since we know that will not happen, I hope Bernanke gets appointed again so that when the markets crash in the next few months to two years, he is there to blame and not able to blame the newcomer. I just cannot wait!!! This will be so bloody and so bad a crash that all of the ploys and scams will be exposed as all the banks will show that they are way past bankrupt!

Senator Bunning Grills The Creature's President Bernanke

The following is a must watch for everyone. Bernanke finally gets what he deserves in words. Instead of getting a second term at the office he should be getting a second life sentence in jail.

If anybody wonders what "The Creature" is, read Eddie Griffin's "The Creature from Jekyll Island" that talks about how the Fed was created by a bunch of private bankers and how it serves its masters by creating boom-bust cycles or World Wars. It is a must read. The creation of money is in the hands of a bunch of private bankers and their friends in other industries. This is the ultimate power. This should be taken away from these people with the closure of the Fed as it is and given back to the people. The best way of doing that is a return back to the gold standard. That will prevent a lot of wars and corruption along with it.

Click here for the link to the Bunning grilling Bernanke video.

Businessweek's James Cooper and His Ridiculous Empty Articles

James C. Cooper, yet another senior economist similar to the likes of Geithner and Steve Liesmann that is one without a PhD at such a high level (actually Liesman and Geithner have no economic background whatsoever), has always written positively biased articles that either contradict itself in terms of economic knowledge -much like Hank Paulson- or just plain terrible and so obviously writing what he is told to write by ... someone, god knows who. He however outdid himself with his latest piece. Fed's independence has nothing to do with disclosing more information. How could transparency be a bad thing that would tie the Fed's hands. If the worry is the timing of the disclosure, that is an easy problem to solve. They can just disclose it a couple weeks or months later. The idea here is to check that the privately owned Fed with fat bankers on its board do not do illegal things and do not have secretive conversations (such as only Blankfein joining the AIG talks) or do other illegal manipulative activities such as bailing out Bear Stearns or any other bank, or manipulating the gold markets or stock markets. I ask you James Cooper. What is wrong with transparency. It is for free markets and anything hidden is a bad thing. Why are you all trying so hard to keep things hidden??? What are you hiding, guys????

Here is a great video from MSNBC (link from Dailybail). It si only part of the story, but good points regardless.

The Comex Scam - Short GLD and Long Physical

The following is from a good blog. It is about the delivery difficulties of Comex which we have been hearing more and more about. This is the same Comex that has been saved from failing on deliveries by the Fed and a handful other central banks before the fact that Comex does not have enough gold to back all the short contracts and the fact that it is used in the scam to manipulate the gold price down by the Fed comes out. According to the article Comex is now trying to settle in cash or deliver shares of GLD instead of the physical. If you recall my earlier article about physical gold and GLD GLD is quite questionable itself and seem to be involved in the whole gold manipulation scam that Ron Paul's bill -if successful- should bring out. An obvious trade comes to find for investors who have the patience and pockets. It is to short GLD shares and buy physical gold. As the demand for physical becomes stronger and is joined by central banks around the world that are sick of the abuse of the US dollar by a small number of corrupt corporations and politicians, the scam will come out and it will be shown that GLD does not have the gold and that should tank the price of it to zero while physical gold will go through the roof as either the scam comes out about the overall manipulation scheme or about GLD as people who are holding GLD shares rush to buy gold as will other investors when they realize how dire the situation is.

GLD is supposed to be the 6th biggest holder of physical gold. Imagine the splash it will cause when the truth comes out.

History Repeats: Dubai Is Contained -Yeah Right!

History keeps repeating itself. Just like in 2007 when the warning signs of the huge crisis that we are in and will be in for a long time was becoming apparent with the so obvious and gigantic and unmistakeably impossible to miss (but somehow they were "missed") signs of the debt crisis that will ignite the whole issue, people that should be doing things about these chose to ignore them and say "everything is fine and subprime problems are contained". I am referring to Bernanke and Paulson and Geithner of course along with the so called "economists". The same "economists" are now talking about how Dubai is a one of thing and is contained within itself. Sound familiar? Similar to 2007 the signs are ignored and markets continue to bubble and any dip as was the case with the Dubai news coming out are quickly recovered. We all saw how that ended in 2008. The system is crashing people. There is only so much more time left. The Fed and its undisclosed operation can only keep the markets up for so long. Eventually stocks will crater and go to levels where they should be. S&P 500 is going to have a whole new meaning below 500. The only way that will not happen is if the dollar is completely valueless and in a nominal way market is above that level. But do not mix nominal with real and do not think that owning stocks will protect you in such a scenario. That is far from the truth and what will happen. Dollar going down is bad for US companies and US stocks. US assets are generally overvalued compared to the rest of the world. When the dollar keeps sinking part of this imbalance will disappear and US stocks will continue sinking. Part of the reason US stocks have done so well is due to the US Dollar's place as the reserve and global trade currency. That is undeniably changing and at this point can not be reversed. Too late thanks to the Fed's undisclosed operations as well as irresponsible other operations we all know off.

One last thing I want to point to is that it was quite a coincidence that Dubai came out on Thanksgiving Day to give out the new. They told the news on a day when the US markets were closed.One can not help wonder if some powerful people from this side of the Atlantic told the Dubai people not to burst the US market bubble because they knew US market would have been crushed had it not been closed. Since the rally in the US markets is totally speculative and against any piece of fundamental news we see, they must have mortally been afraid of this. Like Bear Stearns and subprime, this can only end bad. With a lot of counties and cities bankrupt in the US as well as states such as California, which is the 8th biggest economy of the world, there is a lot to fear in terms of more trouble that will come along the way. Not to even mention a lot of other indebted countries that will not be able to pay their debts. For some more interesting views on this countries not being able to pay their debts please read "Confessions of an Economic Hit Man" by John Perkins. It is a great book. You will realize that these debts were never meant to be paid back to start with, but the timing is going to be very bad. It is ironic that these debt failures could be the reasons why the "global empire" effort might crumble as defined in the aforementioned book.