Fed Preparing For US Default Says Plosser

Zero Hedge ^ | 7/20/11 | Tyler Durden

[Kartographer]

That giant whooshing, and humming, sound you hear are all the printers at the basement of Marriner Eccles getting refills and start the warm up process. Because according to the Fed Charles Plosser the Federal Reserve is actively preparing for the possibility that the United States could default. Which can only mean one thing: an immediate paradrop of millions of $100 bricks to every man woman and child in the US since as we all know by know Tim Geithner has repeatedly confirmed the Treasury has absolutely no default plans. None.

[Kartographer]

Funny how much that giant whooshing sound of the Fed's printers sound just like...

[Kartographer]

I think that we are at the very least in for a collapse much like that of Argentina’s ( http://www.youtube.com/watch?v=7yerKMQc7-w&feature=grec_index), but as a armed society with a very large entitlement minded population our collapse will be much more violent and I see many many small business wiped out by flash mob looting, and large scale violence (look at what happened just this past Memorial Day and 4th of July weekends)we are seeing these mobs grow bolder and bolder like:

Chicago’s CBS 2’s Jim Williams reports, the problem of mob attacks downtown is much bigger than the weekend beatings, according to beat cops who wanted to remain anonymous.”

And it’s not just Chicago, but Washington DC, Las Vegas, St Paul, Philadelphia and on most major big ‘Blue’ cities are increasingly reporting such flash mobs and gang muggings. Look what happened just this past weekend in Peoria, Il:

http://peoriachronicle.com/2011/06/25/peorians-living-in-fear/

Teenage Flash Mob Robberies on the Rise:

http://www.foxnews.com/us/2011/06/18/top-five-most-brazen-flash-mob-robberies/

Rash of violence isn’t flash mobs, it’s wilding

http://www.suntimes.com/news/roeper/5826624-417/rash-of-violence-isnt-flash-mobs-its-wilding.html

Teens in a mob assault and rob Center City patrons

http://www.philly.com/philly/news/20110629_Teens_in_a_mob_assault_and_rob_Center_City_patrons.html

Milwaukee Police Go Barney Fife On Mob Attacks

http://www.620wtmj.com/blogs/jeffwagner/125017329.html

Milwaukee Mob Victim Recalls Beating ... ‘Oh, White Girl Bleeds a Lot’

http://nation.foxnews.com/flash-mob-robberies/2011/07/06/oh-white-girl-bleeds-lot-race-mob-attack-rocks-milwaukee

I see what I call ‘Pocket Pogroms’ taking place in many big ‘Blue’ cities and if you aren’t a ‘0bamamite yute’ or one of ‘Holder’s People’ it’s going to get Reginald Denny bad for you very quickly.

For those who are just starting or are old hands at prepping you may find my Preparedness Manual helpfull. You can download it at:

http://www.tomeaker.com/kart/preparedness1i.pdf

For those of you who haven’t started already it’s time to prepare almost past time maybe. You needed to be stocking up on food guns, ammo, basic household supplies like soap, papergoods, cleaning supplies, good sturdy clothes including extra socks, underwear and extra shoes and boots, a extra couple changes of oil and filters for your car, tools, things you buy everyday start buying two and put one up.

As the LDS say “When the emergency is upon us the time for preparedness has past.”

Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3

“There is no greater disaster than to underestimate danger.

Underestimation can be fatal.”

[Kartographer]

PING!

[dynachrome]

“an immediate paradrop of millions of $100 bricks to every man woman and child in the US”

Would have worked better than what’s going on now. Of course, what’s a little inflation among friends?

[DannyTN]

If the Treasury can no longer borrow money, the fed can't print money, which occurs when the FED buys a Treasury bill. So I think this article's concern's are unfounded.

I'm trying to think what the FED can do.

• They can make things easier on the banks by eliminating the almost non-existent reserve requirement.
• They can loan money to the banks.
• The FED could buy up Treasury bills and bonds that banks can't redeem because the treasury is defaulting providing needed liquidity. That would help banks but that wouldn't help the Treasury issue any more debt.
• Unless the Fed SOLD the bonds and bills back to the Treasury for a lot less than they were worth. But that would create a huge loss at the FED. I'm not sure but I think they would have to give that loss back to the treasury at the end of the year and the treasury would have to fund the loss which they can't do because they can't borrow money. Plus, I don't think the Board of Governors would agree to it, or that any of the Reserve Banks would implement it.

[radioone]

Everything will be okay as long as the welfare checks get sent out.

[Vendome]

They damn well better be on time and for the correct amount. /s

[Drill Thrawl]

Interstingly I noticed that my local grocery store was about our of beans and rice. Hmmmmmm.

[driftdiver]

I hear the “there isn’t anything to worry about” but I don’t believe it. I firmly believe BO and company are trying to bring the economy down so they can rebuild it using a socialist model.

History is also quite clear on what happens when politicians spend with utter stupidity.

[driftdiver]

For one thing all many believe can afford is rice and beans.

[Mike Darancette]

I see many many small business wiped out by flash mob looting

The Internet will be an early casualty.

[ChildOfThe60s]

The whole business of “defaulting” seems disingenuous to me.

Seems like the government is not defaulting if it has the funds to service the debt. Which it does, based on current revenues and the cost of the debt.

Granted, there are a whole lot of others that will get only partial payment, but the debt service, SS and Medicare can be funded without borrowing.

[mrsmith]

Clicked on this link there:
http://www.zerohedge.com/article/presenting-evil-empires-projected-debtgdp

Dems have really turned that around. Guess we'll be sellng Russia a lot of our wheat soon... and cheap!

[CharlyFord]

All U.S. printed currency is printed by the Treasury Department, Bureau of Engraving and Printing at their facilities on 14th and 15th Streets in Washington, D.C. and 9000 Blue Mound Road, Fort Worth, TX. You can tour their facilities and observe the printing.

The Bureau of Engraving and Printing prints the money and delivers it to the Federal Reserve Banks.

[KarlInOhio]

Which can only mean one thing: an immediate paradrop of millions of $100 bricks to every man woman and child in the US

Well, I can't put them in my air conditioner, so I'll just have to wait until winter to feed them into my furnace.

[mo]

Fed don’t need to do nothin’

Congress and the Executive Branch have lots to do.

So far they’re not doin’ it right..

Its been done before..

Harding cut the government’s budget nearly in half between 1920 and 1922. The rest of Harding’s approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third. The Federal Reserve’s activity, moreover, was hardly noticeable. As one economic historian puts it, “Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction.” 2 By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and was only 2.4 percent by 1923.

http://www.firstprinciplesjournal.com/articles.aspx?article=1319&loc=r

[blam]

20 Signs That The Fabric Of American Society Is Coming Apart At The Seams

[arthurus]

we now stand less than 48 hours away from D-Hour and there is still no consensus.

We are less than 48 hours until August 2? Is this so serious that time is being compressed?

[blam]

It Has Started: Wall Street Is Preparing For A Doomsday Scenario

[freespirited]

Probably a reference to a phony deadline set by the Liar in Chief.