Tuesday, June 14, 2011

Theatre of the Absurd in DC as Bernanke Threatens US

A grand assemblage of the masterminds responsible for the demise of the global economy met in Washington, DC, today, for what was called the Committee For A Responsible Federal Budget - somewhat of a misnomer or mutually exclusive mistake with "responsible" and "federal budget" in the same sentence.

Headlining the event was none other than the master thief, Fed Chairman Ben Bernanke, who spoke for about ten minutes to open the affair. In a somewhat petulant and, at the same time, preachily pedantic statement, Bernanke made an open threat to the citizens of the United States. As he outlined the possibilities of congress not raising the debt ceiling he said,

"Some have suggested that payments by the Treasury could be prioritized to meet principal and interest payments on debt outstanding, thus avoiding a technical default on federal debt. However, even if that were the case, given the current size of the deficit and the uneven time pattern of government receipts and payments, the Treasury would soon find it necessary to prioritize among and withhold critical disbursements, such as Social Security and Medicare payments and funds for the military." [emphasis mine]

There you have it folks. The Chairman of the Federal Reserve - a private bank in every sense of the word "private" - telling the world that failure to raise the debt ceiling would result in the US government defaulting on its obligations to its people. Not that the US government could send home millions of worthless government paper-shufflers or stop payments to oil companies or foreign countries, no, the government would stiff the elderly, the sick and infirm and those who fight our wars for global US dollar hegemony in the military.

Nice, huh?

Sickening is what it is. Absurd. Bizarre. Mere words cannot adequately describe the mendacity of the elite banker/politician class, their abject scorn for the public nor their ability to destroy in the last ten-and-a-half years what took 200 years to build. The American public, and, to some degree, the populations of the rest of the world are now and have been at the point of the spear wielded by the elitists of the world.

Just in case anybody is wondering, the chance of congress NOT raising the debt ceiling are about the same as the federal funds rate: approaching ZERO.

Today's well-orchestrated market response was a mammoth rally on - big surprise - the lowest volume in three weeks. Now we will be told by the mainstream mouthpieces in the media that the US economy is just in a soft patch on the road to recovery. All is well. Go out and spend.

These are free markets? Really? Go back to sleep if you believe that.

Dow 12,076.11, +123.14 (1.03%)
NASDAQ 2,678.72, +39.03 (1.48%)
S&P 500 1,287.87, +16.04 (1.26%)
NYSE Composite 8,132.77, +115.71 (1.44%)

Now, this is where it gets even weirder. Market internals show advancing issues beating decliners by a whopping 5268-1383. On the NASDAQ, there were 30 new highs and 68 new lows. The NYSE showed 30 new highs and 28 new lows, so the indicator is still negative with the combined 60 new highs bettered by 96 new lows. Give them a few days, though, and the market manipulators will turn these numbers around, even after eight straight days of the lows leading the highs.

Did somebody mention that volume was non-existent, and, normally, low volume on a huge upside day is a sure sign that the rally was a fake? Note that options expiration is Friday, and some rather large bets were likely cashed today.

NASDAQ Volume 1,725,560,250.00
NYSE Volume 3,972,814,250

Another sure sign that the planet is in the death grip of the banking cartel is that oil spiked by $2.07 today, to $99.37 per barrel. Flows into precious metals were strong, however, with gold up $8.80, to $1524.10 and silver ahead by 63 cents, to $35.39.

The hubris from the Fed Chairman today was breathtakingly simple and completely without precedent. We are owned.

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