Is it all just a Ponzi scheme?

Sprott Management Markets at a Glance Zero Hedge (PDF file) ^ | 20 December 2009 | Eric Sprott & David Franklin

[FromLori]

Absolute must read.

scribd document at site

[dynachrome]

Here is a dirct link to the pdf file:

http://www.zerohedge.com/sites/default/files/Sprott%20December.pdf

[FromLori]

ping and also might want to read at site

http://www.zerohedge.com/article/fed-has-officially-spread-itself-too-thin

[FromLori]

thanks

[The Comedian]

Holy-Madoff-was-a-piker,Batman ping!

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[Freddd]

The United States of Obama, the future is Madoff...

[wafflehouse]

wow is right.. unbelievable

[dynachrome]

“So to answer the question - who is the Household Sector?
They are a PHANTOM. They don’t exist.”

If true, some giant chickens are gonna come home to roost

[PGalt]

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.

[Track9]

“. 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.”

[turfmann]

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.

[FromLori]

A couple other ones you might like

http://www.thedailybell.com/682/Tim-Geithner-US-Must-Learn-to-Live-Within-its-Means.html

http://www.thedailybell.com/683/Wikipedia-as-Elite-Propaganda-Mill.html

http://www.thedailybell.com/681/Nelson-Hultberg-The-Fed-is-a-Fascist-Cartel.html

[sickoflibs]

The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

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.

[LomanBill]

 

 

[it was "Other Investors". After purchasing $90 billion in 2008, this group has purchased $510.1 billion of freshly minted treasury securities so far in the first three quarters of fiscal 2009. ]

 

 

Quack, waddle...

[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.]

http://www.analyst-network.com/article.php?art_id=2903

..."Others"?

[Theophilus]

I think we are going to wake up one morning and find that so much of what we take for granted has just vanished

We have an infrastucture and material wealth that is not easy to destroy or take away. As you imply, we have a weakness concerning energy. However, I believe that if we were cut off from the rest of the world in that area, we could compensate with our knowledge and resources faster than they could.

[Repeat Offender]

Is it all just a Ponzi scheme?

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.

[Nobel_1]

Thanks for the post.

WOW - how come this is not the lead story at WSJ and CNBC?

1/3rd of the ‘09 debt financing to “unknown” / “phantom” entity to “balance the ledger at the Fed”.

unbelievable ... imminent collapse could really happen fast ... perhaps in less than 60 minutes during a “normal” trading day

[groanup]

There are huge investors both domestic and world wide who have a lot of skin in this game. If there were anything to this it would create a panic similar to Sept '08. Color me skeptical.

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.

[Jack Black]

Hi. Hopeflly you can shed some light on this.

[Tunehead54]

4 AM Bump! ;-)