When, in the wake of the Bear Stearns collapse, Meredith Whitney of Oppenheimer blew in Citigroup for carrying what can only be termed "pseudo-derivatives" at par with bogus AAA ratings, derivatives that were essentially nothing but toxic waste created by Ponzi schemers Rubin and Prince to absorb a portion of the millions of mortgages that should never have been made in the first place, the elitists were caught with their pants down. For the Illuminati, this came out of left field, and they have been scampering around like rats on a sinking ship trying to implement some sort of damage control. These efforts to date have utterly failed to stop the US economic supertanker from sinking further. In fact, all their machinations have instead made the holes in its hull much, much larger, thus accelerating the rate at which it is sinking.
The Illuminati had planned to milk the financial system for several more years before intentionally destroying it. They were drawing out huge salaries, stock options, bonuses, golden parachutes, fees, commissions and spreads, which over the course of the past decade, mainly during the Caligula Administration, numbered in the trillions of dollars. Mr. Bubbles, Alan Greenspan, of course made their paths swift and sure with ludicrously low interest rates, while Slick Willie did away with Glass-Steagall and its system of checks and balances. The Slickster also implemented the unregulated OTC derivatives market with the passage of the Commodity Futures Modernization Act, an opaque market, which has burgeoned into a Quadrillion Dollar Derivative Death-Star that will eventually destroy the world financial system. Via this destruction, the Illuminists hope to pave the way for a world government based on the old feudal system of nobles and serfs in an attempt to bring order out of chaos.
After all, the Black Nobility of Europe were feeling a bit nostalgic about the Dark Ages. Those ages were indeed dark for everyone, except, of course, for the nobility, and they would like to have some retro action on the economic mores of those times.
But now, caught with their pants down around their ankles as Meredith peaked in "da Boys" lavatory to see what they were up to, they knew the jig was up. The tide suddenly went out, as before the onslaught of a tsunami, and they were found as naked as jaybirds, without so much as a Speedo bathing suit covering their diabolical derrieres. Their conspiracy was exposed, and the chain reaction was beginning to build.
Their plans to implement world government had to be accelerated due to this exposure of their nefarious plans. First the subprime derivatives imploded, soon followed by the municipal auction rate bonds and their insurers, and then the investment bankers started to collapse, but you would never know it based on what their CEO's told everyone, seeing that they lied through their teeth about the condition of their totally and completely insolvent companies right up to the day they went bankrupt or were taken over. Every major commercial bank on Wall Street, some of which were former investment banks like Goldman and Morgan Stanley, is still 100% insolvent despite Hanky Panky's nuts of taxpayer largesse from the Paulson Ponzi Plunder Plan, which can now be found in the baggy little cheeks of these Illuminist banks. These equity injections are a dog and pony show to keep up the appearance of solvency while Sarbanes-Oxley is ignored by regulators and unmarketable derivatives are exchanged for treasuries under the TSLF. Smoke and mirrors, together with bailing wire and chewing gum, are the only things holding these large commercial banks together. They, and the Fed which is feeding them, will be nationalized after the Derivative Death-Star goes supernova.
The Illuminists were in panic mode, as their conspiracy was made public. This meant that their dividends, stock options, bonuses, fees and commissions were going into the tank unless they did something soon. Spreads were almost non-existent due to low perceived risk based on CDS's that turned out to be totally naked. The Fed funds rate was at 5.25%, while prime mortgage rates hovered around 6%, yielding a spread of less than 1%. But since all the other fees were going to get blasted, the spreads were their only bread and butter (please forgive the pun).
What is a self-respecting, megalomaniacal, Illuminist miscreant-reprobate-sociopath to do under such horrifying circumstances? We'll tell you what they did. The first problem was that Bernanke was flooding the system with money and credit to keep it afloat as the credit-crunch went wild, with M3 at 14% to 16%. This was highly inflationary. How can you lower borrowing rates to increase spreads when inflation is out of control? Answer: you can't, if you want to retain some semblance of credibility. So the Illuminati took advantage of the US sheople's ignorance concerning economics. They know that people look at prices to gage inflation, when it is really the money supply that controls the level of inflation. Prices are the symptom, not the cause. So they ran up all commodities, even gold and silver, for a time so that they could bring about a dramatic drop in prices later to give the perception that inflation was under control and that deflation might be setting in. This is how they justified the near-zero interest rates you now see, which can yield a huge spread of about 5%, which is more than five times what was available before all the trouble started.
In the meanwhile, the Fed arranged to accelerate the payment of interest on hoarded bank capital on reserve with the Fed. This bank capital will now be deployed, but it will be used for elitist speculation and insider trading, not for the opening of credit markets to consumers. The idea is to keep the salaries, bonuses, dividends and spreads going in order to line the pockets of elitists, not to save the middle class. They are going to throw your money, via taxpayer-funded bailouts, down a rat-hole, the exit for which comes out into their back pockets. They will become fabulously wealthy, while you are hyper-inflated into oblivion, as your dollars are thrown at insolvent elitist companies that are being artificially animated like zombies. Taxpayer-owned equities, received in exchange for bailout money, are absolutely worthless. They will re-inflate after they have destroyed the auto industry and as many non-Illuminist companies as they can to eliminate competition. The loan money will not be available for these unfortunate souls and entities. Ford may absorb GM and Chrysler before it also succumbs, and then it will be nationalized as our Communist Comrade Obama uses members of the former Clinton Administration to destroy what is left of our economy. Does he really expect change from these people? Of course not. He did not pick them. They were chosen for him.
Note that the asset losses worldwide are in the tens of trillions, but this does not necessarily indicate deflation. Only to the extent the money supply is contracted by these losses are these deflationary forces unleashed. Not all asset losses translate into a contraction in the money supply. We believe that the 9 trillion the Fed has pumped in thus far is just enough to offset the contraction in the money supply due to asset losses. They were waiting to maximize spreads before they undertook to re-inflate. When they re-inflate, this will create inflationary forces that will require interest rates to rise on everything except bank loans, for a time, thus increasing their spreads even more, but at some point the Fed will have to raise rates again on the banks also. The banks are intentionally holding back on lending, hoarding their reserves, at the direction of the Fed, so that the Fed could have some justification for bringing rates down. Lending out their reserves would have been inflationary and made rate reductions impossible, so they were told to wait. Now that the rates are down, you can expect re-inflation to take advantage of high spreads for as long as they can give the appearance that inflation is under control. This is why gold and silver suppression is so important to them. But they are looking at a possible delivery failure in precious metals, and this could have the effect of defeating their plans by exposing that we are really still in an inflationary mode, not a deflationary one. The only thing propping up the dollar now are settlements of CDS losses in the unregulated OTC market, where arrangements have been made to settle losses on demand whenever the dollar needs a boost. Hence the suspended animation of AIG and Citigroup. Lehman CDS losses disappeared from public view, but they are still out there and are being used to prop up the dollar also. This also explains why oil is getting blasted.
The objective of the Illuminati had been to create and dump toxic waste weapons of mass destruction on nations around the world in order to collapse the old nation-state system and replace it with an Orwellian New World Order, a global, corporatist, fascist police state of feudality, where the would-be masters of the universe get to lord it over us, their serfs. Instead of leaving everyone else holding the bag, as was their intention, the rather fortuitous exposure of their fraud left them holding a part of the bag, which they had intended to leave for everyone else. They had SIV's loaded with this nasty stuff off the books in off-shore funds, and they had quite a bit left in house that was in the process of being worked on, like some sort of deadly poison you might find being worked on in Dr. Strangelove's laboratory, to the tune of hundreds of billions of dollars. And yes, thanks to the Illuminati, rocket scientists have become the new mad scientists of financial innovation, manufacturing new financial poisons so toxic that they now threaten the whole world -- God help us all!
Some of those new financial poisons were called credit default swaps (CDS's), some sixty to seventy trillion worth that are currently reeking havoc with AIG, Lehman and Citigroup, as well as many hedge funds. But if you think these are bad, wait until you see what happens when interest rate swaps (IRS's) meet double-digit interest rates. It will be like "Frankenstein Meets the Wolf Man." This event will quite literally be a financial Armageddon from which none will escape.
Enjoy the low rates while you can, our fine Illuminist miscreants. When rates go into double digits, it will be like the sun going supernova. Hundreds upon hundreds of trillions in notional value are at stake when the interest rates do what they did in the early 1980's. When the huge imbalance between low fixed rates that have been exchanged for what will become astronomical variable rates starts to generate losses, the likes of which have never been seen before in the history of mankind, the IRS's will reach critical mass and start a thermonuclear chain reaction that will vaporize everything in their path.