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suspecting some kind of upcoming correction, last hurrah for metals suppression, fed doesnt want to show you what really goes on, Fed secret keeping may be soon at an end, Stocks up but economy down, Debasement on the dollar, a call for global rules on the trading of derivatives to protect the world economy

Our view is that the elitists are currently buying time for the dollar, and stalling the rally in precious metals, by weakening other currencies until they are ready for the big stock takedown/correction. This process of supporting the dollar is becoming extremely expensive and difficult, so they had to take the Dow down 200 points on Thursday to start some stock contagion in Asia and Europe to flush some money into dollars and treasuries. The FTSE, Nikkei and Hang Seng were all down big in the aftermath of Thursday's US market takedown. We believe that the Illuminati will probably try to punish all the stock shorts in mid October on options expiration day by having one final round of short-covering before taking the markets down for the big correction to start a dollar rally just as the precious metals seasonal rally goes into full swing. This yellow fever crash is just a repeat of last year's strategy, but it will not be as severe for purely political reasons. In this manner, they will flush everyone else out of their short positions so that only they can make any money when the boom gets lowered and there will be many put options that expire worthless in yet another round of total criminality reminiscent of what they just did to the gold and silver call options this month. They will make money on the big rise from short-covering, and then will reverse course to profit from the big takedown, all through the unregulated dark pools of liquidity so no one can see what is happening. This will be their last hurrah when it comes to suppressing precious metals, and gold and silver will come roaring back as any and all confidence is lost in the stock markets and the economy, and as the elitists are forced to start driving the markets back up again to avoid revolution. The dollar rally will quickly fizzle, and the elitists will start ratcheting the dollar back down again, this time toward the 71 area on the USDX, and who knows where from there.

The Illuminists, who own the Federal Reserve, are terrified that the Fed will be audited by the passage of HR1207 and SB604. They are now contemplating naming their borrowers. Our guess is guidelines and provision will be established for disclosure, but only to the Treasury Department.

Currently monetary-policy-operations regarding loans to banks and interest rate decisions are hidden from the General Accounting Office by law. The Fed, of course, doesn’t want you to see what they are up too. HR1207 would change that.

The opportunity to present a case for audit and investigation was created by the arrogance of the Fed when it refused to identify the recipients of trillions of dollars in emerging loans, and what was being accepted as collateral and what was its real value. In addition, the Fed loaned funds that didn’t require congressional approval and many wanted to see the extent and details of such lending. In this particular case Bloomberg News, which got a court order to do so was told by the Fed that it was a state secret. The Fed simply defied the court order and nothing has been done to force them to comply. We know $700 billion was lent through the TARP program and $500 billion in the currency swap program, but what about the rest of the loans? We have no idea where the money went or what if anything was pledged in return.

The bottom line is our government and the American people have a need to know who gets loans, what the collateral is, what secret deals the Fed have with other central banks, what secret accounts they have offshore, what are their swap agreements, how much money they have created secretly that Congress knows nothing about and what inside information is the Fed passing along to their friends in banking and Wall Street.

Treasury Secretary Geithner, under the FOIA release, made 80 contacts since taking his job, with Goldman Sacks, JP Morgan Chase, Citigroup and BlackRock. Some were by phone and some in person. Most calls were between Geithner and Goldman CEO Lloyd Blankenfeld. Can there be any doubt in your mind who controls our government?

Why is the Fed so secretive and why must they rely on public ignorance?




These actions are what we must be privy too. These are the kind of things that has sent the Fed into tantrums. Why is the Fed so secretive and why must they rely on public ignorance? No wonder 75% of those polled want an audit and an investigation. What astounds us is that so many people have come to understand that what the Fed does should not be secret. As an extension of that, if the people are successful, it will be a great victory for the populace. If this leads to the disbanding of the Fed, and its work’s taken over by our Treasury, we may be able to get our country back from the Illuminists. If we can bring about the end of the Fed, a monopoly, that has been looting and strangling our country and the seat of Illuminist power will be ended. Let’s all work together on this and make it happen. Contact every Senator and Representative and in a few lines let him or her know that you want the fed audited.

Turning now to our government we find that its deficit now exceeds 40% of expenditures; or 40% or more is borrowed and not serviced by revenues. Historically this is the point at which hyperinflation begins. This situation is going to get progressively worse because there is not going to be a recovery and unemployment will worsen. The deficit is projected to increase by $1 trillion a year for the next nine years minimum. Even if 3% growth could be mustered in five years the national debt could reach $18 trillion, which is short-term debt, which would be 100% of GDP.

That means funds would have to come from more taxes, increased savings or the Fed monetizes the debt. That means a falling dollar and hyperinflation. The Fed thus far has been able to get away with major monetization due to the major deflationary undertow. This de-leveraging process will go on for many years to come. That brings up the question how much money and credit has the Fed created and who has been given that money? A good part of it has gone to banks that are not lending it out.

Government cannot continue to do what it is doing, nor can the Fed continue to print money endlessly. This is certainly a formula that cannot continue.

We do not really know how much government debt the Fed has bought, because they won’t tell us. It is a state secret. Even if the Fed wanted to emulate what Paul Volker did in the early eighties they couldn’t. That should have been done long ago in 2001 and 2002. That was when the point of return was past. Now there is no way back.

There is no hope of a deficit reduction and once the Fed has lost momentum bond yields in the real market are going to rise.

In May inflation began to rise again. It will be far more noticeable next year.

Wall Street and investors do not seem to understand that the budget and the budget deficit is too difficult to carry. If taxes are raised as they were in 1937, it will cut off any possible recovery and collect less taxes overall. Such a move could also boost non-filers up over 40%. We are about to find out you cannot print or borrow your way into prosperity.

The cuts have to come from the federal government. This is far better than raising taxes, especially when federal workers make almost twice as much as workers in the private sector. There are many solutions available, but our Congress is unwilling to use them for political reasons. The longer the solutions are avoided the worse the problem is going to be.

Banks, Wall Street and government choose to avoid the consequences of deep structural maladjustments that they were responsible for creating. They are trying to perpetuate a bubble rather than fix the problem. Is it any wonder the dollar continues to fall. Unprecedented stimulus, with more probably on the way, has not stabilized the economy. It hasn’t even stopped rising unemployment. The velocity of unemployment has declined, but the numbers are still rising. Every move by Wall Street, government and banking is for short-term performance and it is not working.

What is needed is long-range planning, but, of course, that never entered their minds. Stocks may be up but the economy isn’t. The debasement continues and the dollar is taking the flack, because inflation cannot be avoided. The Illuminists suppressed gold and silver for years hoping investors and the public wouldn’t realize what was being done to the dollar. That doesn’t work anymore, because the government is out of gold and if they are not out they are close to it. Granted the dollar isn’t the only weak currency. For six years every world currency has fallen versus gold, but no one wants to talk about that. The dollar gets all the heat because gold is traded in dollars and it is the world’s reserve currency as well. Switching from one currency to another isn’t going to work. It is not the answer, only gold is.

The lending bubble has been broken. Next is the bear market rally stock bubble. Deflation is snapping at our heels, as credit is no longer easily available. Bank lending is off 14% yoy. The game of de-leveraging is over except for banks and they are basically all already in dollars. That leaves even less flexibility for lenders. That means the Fed’s monetary policy has to be ever more expansive to be effective. In turn, this along with zero interest rates, these elements drive the dollar lower and gold higher.

In the latest sign of weakness in Louisville-area employment, about 10,000 people applied over three days for 90 jobs building washing machines at General Electric for about $27,000 per year and hefty benefits.

The jobs dangle medical, eye care, prescription and dental benefit packages, as well as pension, disability, tuition assistance and more, said GE spokeswoman Kim Freeman. And despite the recession, no union workers have been laid off from Appliance Park since the company negotiated lower wages with workers in 2005.

“There are no jobs out there paying these kinds of wages that also offer these kind of benefits,” said Jerry Carney, president of IUE-CWA Local 761 at Appliance Park.

Just four years ago, the same jobs paid $19 per hour. But that was before Local 761 approved wage cuts for new workers aimed at preventing the closure of Appliance Park.

The average price of regular gasoline at U.S. filling stations slipped to $2.48 a gallon as inventories of gasoline and distillate fuel increased.

Gasoline lost 4.5 cents in the two weeks ended Oct. 9, according to a survey of 5,000 filling stations nationwide by Trilby Lundberg, an independent gasoline analyst in Camarillo, California. Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two-quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations that report currency breakdowns put 63 percent of the new cash into euros and yen in April, May, and June, Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

World leaders are acting on threats to dump the dollar, while the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the US economy, as long as it doesn’t drive away creditors. The diversification signals the currency won’t rebound anytime soon, after losing 10.3 percent on a trade-weighted basis the past six months, the biggest drop since 1991.

“Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it,’’ said Steven Englander, chief US currency strategist at Barclays. “It looks like they are really backing away from the dollar.’’

Large banks should be banned from trading derivatives including credit default swaps, said Joseph Stiglitz, the Nobel prize-winning economist.

The CDS positions held by the five largest banks posed “significant risk” to the financial system, Stiglitz said at a press conference in Brussels. Big banks should have extra restrictions placed on them, including a ban on derivative trading, because of the risk that they would need government money if they fail, he said in a speech today.

“We will have another armed robbery unless we prevent the banks, the banks that are too big to fail,” Stiglitz said. “We should say that if you’re too big to fail then you are too big to be. They need more restrictions, such as no derivative trading.”

Derivative trading and excessive risk-taking are blamed for helping to spark the worst financial crisis since World War II. American International Group Inc., once the world’s largest insurer, needed about $180 billion of government money after its derivative trades faltered and pushed the company toward bankruptcy.

Financial markets should be subject to taxes that will discourage “dysfunctional” trading and help pay for the effects that the global crisis had on poorer nations, Stiglitz said last week.

U.S. and European regulators have pushed for tighter regulation of the $592 trillion over-the-counter derivatives market, amid concerns that it could create systemic failures in the financial system. Lawmakers have called for global rules covering derivatives to prevent financial institutions from exploiting jurisdictional differences in regulation.