Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Here is a dirct link to the pdf file:
http://www.zerohedge.com/sites/default/files/Sprott%20December.pdf
ping and also might want to read at site
http://www.zerohedge.com/article/fed-has-officially-spread-itself-too-thin
Very interesting. The tax base (vacant homes, people living in homes that aren’t being foreclosed on, etc., etc.)is crumbling for municipalities/cities/townships. People aren’t buying into “the discipline of debt” game anymore. Get lost Fannie, Freddie, Feddy.
“. The fact that the Federal Reserve and US Treasury
cannot identify the second largest buyer of treasury securities this year proves that the
traditional buyers are not keeping pace with the US government’s deficit spending. It
makes us wonder if it’s all just a Ponzi scheme.”
Falls right in line with what I’ve been thinking - I’m not a hedge fund manager but I once stayed at a Holiday Inn Express.
I think we are going to wake up one morning and find that so much of what we take for granted has just vanished - just like it did for Madoff’s victims.
When that happens pitchforks will be in extremely short supply and the fact that so many people will have had to walk to Washington will only make them all the angrier.
Nice post by our friend 'FromLori'. Highlights from the link:
So to summarize, the majority buyers of Treasury securities in 2009 were:
1. Foreign and International buyers who purchased $697.5 billion.
2. The Federal Reserve who bought $286 billion.
3. The Household Sector who bought $528 billion to Q3 – which puts them on
track purchase $704 billion for fiscal 2009.
This leaves a very important question
- who makes up this Household Sector?
So to answer the question - who is the Household Sector?
They are a PHANTOM. They don’t exist. They merely serve to balance the ledger in the Federal Reserve’s Flow of Funds report.
"We are now in a situation, however, where the Fed is printing dollars to buy Treasuries as a means of faking the Treasury’s ability to attract outside capital. If our research proves anything, it’s that the regular buyers of US debt are no longer buying, and it amazes us that the US can successfully issue a record number Treasuries in this environment without the slightest hiccup in the market.
[According to a 1996 IMF estimate, money laundered annually amounts to 2-5% of world GDP (between 800 billion and 2 trillion US dollars in today's terms). The lower figure is considerably larger than an average European economy, such as Spain's.]
..."Others"?
Yes. And just like with Maddoff (sp?) everyone thinks they are closest to the top of the pyramid, or that their holdings are more important.
Stock gold/silver, food, water, guns, ammo. Especially ammo.
The Fed has always had the ability to print money and buy Treasury debt. No one else could do it. If "households" are really the Fed then it isn't the end of the world. Nothing Ponzi about it. But it has to be stopped soon.
4 AM Bump! ;-)
It was a good read, but I doubt that Sprott Asset Management in Toronto will manage to push the dollar high again for the book binders, computer genuises and the like up there. They’ll just have to continue serving and enriching oil men, miners and hewers of wood (which ain’t all that bad). ;-)
“Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organized crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.”
http://crooksandliars.com/susie-madrak/un-advisor-drug-money-propped-banks-d
The most important part of our economy (judged by it’s ability to make the Feds jump on command) is nothing more than moving pieces of paper with no intrinsic value of their own back and forth via the Banks and Wall Street. Derivatives are up over $300 trillion, backed by nothing at all. So yeah, it’s all a Ponzi scheme.
FROM ARTICLE——>>>
We are now in a situation, however, where the Fed is printing
dollars to buy Treasuries as a means of faking the Treasury’s ability to attract outside
capital. If our research proves anything, it’s that the regular buyers of US debt are no
longer buying, and it amazes us that the US can successfully issue a record number
Treasuries in this environment without the slightest hiccup in the market.
Perhaps the
The stock market bubble bursting was aweful to behold. As was the commodity bubble, the real estate bubble, and the credit market bubble. When the government bubble bursts, it will make the others look like a child’s game.