Fed's QE2 an Abject Failure; Ireland Says NO to EU, IMF

Events are developing, albeit slowly, but as far as one can tell, the incessant pumping of cash into markets by the Fed (another $6 billion today) has not fixed anything, solved anything, nor does it appear that it ever will amount to anything other than another massive debt upon US taxpayers.

With that in mind, maybe it's time for taxpayers to consider exactly what purpose does what they're paying to the government purport. Basically, every dime a taxpayer has sent to Washington, DC in the past two years has been very much like throwing said dime into a wishing well. Nothing changes, no charges will ever be brought against the openly criminal banks and congress simply covers up for them.

In Ireland, forces are at work trying to get the Irish government to accept austerity measures from either the EU or IMF or both, expressly to BAIL OUT THEIR INSOLVENT BANKS. It's an important distinction that the Irish people and the Irish government are not - by and large - not in default, it is the banks that are in deep, deep trouble, trouble that threatens - and should - spill over to Portugal, Italy, Spain, Greece, then France, the UK and eventually here to the US.

The entire financial disaster we have been suffering over the past two years has been entirely the fault of the banks, in every country, who pledge allegiance to no nation, only to money. The time has come for the people of countries around the world to DEMAND that their governmental representatives refuse any further dealings with the banks, to come to the truth that the banks are criminals of the grandest scale, and that they need to be charged, prosecuted and made to make reparations and serve time AS CRIMINALS.

The banks have brought the world to a standstill, yet the politicians - save a few brave souls in Ireland, possibly - have neither the inclination nor the raw nerve to speak the truth and bring JUSTICE.

We will shortly learn that even state Attorneys General have no backbone and are likely paid handsomely by the banks, having already wrapped up their investigations and are seeking a settlement with the banks rather than prosecuting them for the widespread abuses that have recently come to light in residential foreclosures.

The banks continue to steal the wealth of the people and the politicians are only interested in sweeping the problems under various rugs which now are so lumpy that one cannot walk upon them.

In light of ongoing developments, we advise withdrawing all unnecessary funds from any large bank, those being mostly Bank of America, JP Morgan Chase, Wells Fargo and Citigroup, and having as little to do with them as possible. If the banks have no means of accessing the money of people, they will die a long, slow, painful death. While a quick resolution via the truth is preferable, a long slow turning of the screws may have to do.

God save us; we are all slaves to the banks.

Meanwhile, Wall Street voiced its general displeasure with all things once again, for the fifth time in the last seven session (six of seven for the S&P and NASDAQ) by selling off, this time in more pronounced fashion.

Dow 11,023.50, -178.47 (1.59%)
NASDAQ 2,469.84, -43.98 (1.75%)
S&P 500 1,178.34, -19.41 (1.62%)
NYSE Composite 7,472.63, -144.88 (1.90%)

Declining issues shellacked advancers in the broadest selling seen in months, 5399-1146. New lows took the edge over new highs, ending a long string of wins for the highs stretching back to March, 2009, 237-176. This flip should serve as an absolute, without-a-doubt sell signal to anybody who still has skin in the game. As the author of this blog has advised against stocks since 2007, preferring only cash, silver, gold, raw land and tools of trade as "investments", there will be no pain felt from any market decline, correction or crash, though it appears evident that we are on the cusp of one of the latter two options.

Volume was quite high, another sell signal, considering the depth of today's decline.

NASDAQ Volume 2,261,298,250
NYSE Volume 6,063,200,500

Stocks weren't the only investments losing value. Commodities were roundly hammered. Crude oil fell another $2.52, to $82.34. Foodstuffs - wheat, corn and soybeans - all suffered more than five percent declines in price on the Chicago Board of Trade. Gold's last print was off $31.10, to $1338.40. Silver fell 86 cents, to $25.23, as exchanges continue to increase margin requirements on not just the precious metals but on many diverse commodities.

The global financial system once again is stressed beyond its means, mainly because losses at the world's largest banks have not been realized. Unstable conditions will continue to be the norm until these losses are realized and written down. That has not been an option the banks or the politicians are willing to consider.

There is only one solution which will solve much of the crisis, and that is to shut down many of the global banking interests, including central banks, and limit government's ability to borrow.