Federal Government Takes Desperate Measures to Save Itself

So, the Federal government thinks it is going to “bail out” our failed financial system. Ha.

It will fail.

It will fail because the system is fundamentally unsavable. It was doomed to failure from the very beginning. Yes, it had a good run, it gave us the illusion that it worked for decades, but the illusion has been shattered and the system broken beyond repair. No amount of government intervention will save it. As Ludwig von Mises said, "There is no means of avoiding the final collapse of a boom brought about by credit expansion." Note that he said no means. He did not say no means other than a government bailout. No means.

Congress and the Federal Reserve have conspired for decades in the creation of cheap credit that inflated our stock and bond markets, our housing markets - ultimately every aspect of our standard of living - for decades. The check has now arrived and the creditors are now waiting to be paid.

Private companies, individuals and stockholders all made obscene amounts of money riding the credit boom up and now that it is collapsing, the government feels the need to step in and attempt to “save the system.” This is not true capitalism but phony capitalism, American style: Privatize the gains, socialize the costs. Now the government hopes to move us onto the next phase, fascism, American style: Socialism with shareholders.

America is in the final collapse phase of credit bubble after credit bubble. Bailout after bailout has failed to revive the economy. The Fed, acting as lender of last resort, has failed to stem the financial destruction in our rigged system. It is nearly out of ammunition. The last hope now shifts to the Federal government itself, the biggest market player of all. It is taking desperate measures – changing market rules (e.g. no more short selling), and taking your money – stolen through taxes and inflation – to attempt to protect itself. Because if the financial system fails, it is ultimately the failure of the Federal government itself, and an indictment of its corrupt and phony self-dealings. If the government looks scared, this is the reason why. It is about to be unmasked.

Most Americans don't have a clue about what is going on. All they know is that they're scared and their safety is threatened. And we know that scared people are the easiest to lead - in any direction. This is a dangerous time for our country and the outcome is not assured. As Dr. Paul has told us, those of us with greater knowledge have a greater responsibility. In other words, it is up to you.

If we can reach enough people with the truth, the idea of, “change” will take on new meaning. It will no longer be just a meaningless political slogan. Citizens will be rightfully angry, they will look for the root causes of the failure, and along their journey, they will find the truth about the Federal Reserve, the military industrial complex, the media entertainment complex and the reckless Congress that squandered the great wealth of the American people. They will join us in the call for Revolution.

The government is sealing its own financial fate. It may be the biggest market player, but it is still just a player. No one is bigger than the market, and the market ultimately wins. Always.

This is the next phase in the r3VOLution, and now is no time to let up. The government is moving towards socialism and fascism. We want freedom and liberty. The most important thing we can do is spread the word to as many people as possible: No more government bailouts! Not with our tax money! Return to the rule of law!

We must do what we can to change the conversation and shift it towards the root causes of the crisis we now face. Exercise your rights while you still have them!

Onward with the Revolution!

Michael Nystrom
Editor

they used one third of the open balance on the Fed's balance sheet to paper the intervention with more currency.

I call it 'kiting' and 'kiting' is a criminal odffence.

they suspended 'short sells' but not their brand of 'kiting'.\\please don't ask me to define and explain the fed balance sheet.

I won't.

But I will say that they imagine to make the GNP congruous with a balance sheet of sorts.

anyone know what that is?

The Gross National Product will only be congrous with the balance sheets, if those writing the sheets are keeping extra sets of books...

Short selling or "shorting" is the practice of selling things the seller does not own, (often financial instruments), in the hope of repurchasing them later at a lower price. Often the sold item is 'borrowed' or 'rented' for the period of sale and re-purchase.

Short-sellers attempt to profit from an expected decline in price (in contrast to the ordinary investment practice, where an investor "goes long," purchasing a security in the hope the price will rise).

The term "short selling" or "being short" is often also used as a blanket term for strategies that allow an investor to gain from the decline in price of a security. Those strategies include buying options known as puts. A put option consists of the right to sell an asset at a given price; thus the owner of the option benefits when the market price of the asset falls. Similarly, a short position in a futures contract, or to be short on a futures contract, means the holder of the position has an obligation to sell the underlying asset at a later date, to close out the position.

Kiting has many different forms, but I think, maybe, that you are talking about the form of Kiting known as illegal borrowing. If not, go ahead, Wouldee, and specify which form of Kiting you're refering to, I'll drop a definition for everyone if its needed.

I'll let you handle explaining kiting if you like.

It's your thread.

I am thiinking along the lines of check kiting, hint hint.

as for selling short, they oversold shorts.

See the movie, The Producers. oops.

There are more shorts than there were borrowed shares and that little coup d'grace was found out when the fed suspended shorts.

But carry on if it fits where you want this to go.

I'm just saying......

Cheque (or check) fraud refers to a category of criminal acts that involve making the unlawful use of cheques in order to illegally acquire or borrow funds that do not exist within the account balance or account-holder's legal ownership. Most methods involve taking advantage of the float (the time between the negotiation of the cheque and its clearance at the cheque-writer's bank) to draw out these funds. Such acts are often colloquially referred to as cheque kiting or paper hanging.
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It's gotta go somewhere, it might as well go towards education, thats my primary mission, education!
I also like it to go in this direction, because they are actually committing a wide variety of Kiting.

Did I mention the Federal reserve and our current monetary policy is in fact unconstitutional?

Now, McCain supporters, Obama supporters, I'd like you all to email your local campaign headquarters and see what kind of response you're going to get when you ask them about what Wouldee and I just discussed. Then ask them if they'd committ to a restructured monetary policy that re-pegs the dollar to the gold standard. Then ask them if their candidate supports the NAU/Amero plan of Bush.


This ought to be fun...

oh thanks.

now i am going to have to move again.

Sorry about that, For the record, Wouldee neither sought out nor endorsed my query... His name only appears in reference to the above commentary.


Better?

it might work with gold at near a thousand an ounce.

aand say hello to domestic spending once again and a renewal of the middle class and a check on abject greed and avarice running away with the values.


real worth for real people.

It'll never happen as long as we have a central bank though, either candidate would have to be in agreement that a dismembering of the Fed and subsequent investigation of their activities since it's inception in 1913 would be in order, followed, if not done in conjunture with the above, up with a audit of the gold we're supposed to have at fort knox. Can anyone with a little more age than me tell me when the last time a audit was done on fort knox?

like I say...

when the legislature and the chief executive actually collude to commit high treaason, then maybe a civil war will be legal and we can repeal the treasonous acts that are unconstitutionally maigned in a coup, which has yet to happen.

We need the shelter of the rule of law to remove the hubris of tyranny and get the world's respect without their intervention.



don't know when it will happen, if ever.

It's our only hope of saving this nation from itself before God, I think and feel.

Fort knox and all of the gold in the US Treasury does not amount to the amount of currency ourstanding, war.

hasn't for many years.

That debt has to be renegoytiated or forgiven much the same way the World Bank forgives Third World debt.

oops.

what's good for the goose is good for the gander.

I am willing to be a patriotic citizen of a Third World nation.

you?

The $85 billion is taxpayers’ money, but it’s not funded by taxes we’ve paid. The U.S. Treasury Department sells securities to the public in order to raise the funds used for this bail-out. The other day, the Treasury Department auctioned short-term investments. The 35-Day Treasury Bill issued raised $40 billion in one day.

This auction process allows the investor to name their interest rates, and the Treasury picks the best offers. Many people were willing to lend the government money at a 0% interest rate. The median interest rate for all bids was 0.05%. The Federal Reserve, in turn, is lending money to AIG at a variable rate currently above 11%. If AIG is able to sell its assets and pay back the loans to the Federal Reserve over the next two years, the government stands to make a lot of money thanks to the wide spread in interest rates between the Federal Reserve’s borrowing and lending.

Even if AIG does not pay back the loan, the Treasury Department will still be able to pay back its investors. The government will use whatever means necessary in order to pay the investors as agreed, possibly printing money if necessary.

The fact that the government was able to raise a large amount of money at very low interest rates shows that investors are nervous. They’re willing to invest their money at a very low rate in return for a very safe investment.

Interesting that the price of some precious metals dropped after those treasury bonds hit the market.

a safe harbor in a financial hurricane is not libor or USTreasuries at 0%. Inflation is 2%

the market is panicked.

there's your sign.

Yeah, it's really just a ploy to keep commodities, such as gold and silver, which are in essence not devaluable, artificially low.

That particular portion of the market will regulate itself, as is evident by Golds $100 an ounce jump.

As far as the Ft.Knox gold supplies, I'm quite sure that it won't match the current inflation of our currency, however, it would give us an nice indication of where to start in regulating and recovering the Dollars value, plus, is it even a possibility that a organization, Say the Fed, has that gold, maybe as a "insurance" policy and the Knox vaults are bare?

I've heard thats a potential situation we might have, but haven't seen any evidence of it, so thats why I was wondering when the last audit of that resource was, because thats We the Peoples gold.

Inflation is a by-product of a false system and therefor it also is false.

Nothing from nothing leaves nothing...

division by 0.

I think Sam Ewing said it best...


“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

Thats funny... but its not at the same time...