शुक्रवार, १८ जुलै, २००८

खेळ पैशाचा - भाग ६ (अमेरीकन बॉण्ड्स करतील जागतिक उलतापालथ )

प्रेषक नाना चेंगट ( गुरू, 07/10/2008 - 13:55) .




"सदर लेखन हा माझ्या 'इंग्लिश डॉक्टरेट'चा एक भाग आहे म्हणून, तसेच या विषयावर मी लिहावे असा काही लोकांचा आग्रह आहे म्हणून माझे लेखन मी येथे जसेच्या तसे प्रसिद्ध करत आहे. हे मराठी संकेतस्थळ आहे याची मला पूर्ण कल्पना आहे परंतु वर म्हटल्याप्रमाणे सदर लेखन हा माझ्या व्यक्तिगत अभ्यासाचाच एक भाग असल्यामुळे तो मराठीत भाषांतरीत न करता इंग्रजीमध्येच येथे प्रसिद्ध करत आहे. जनरल डायर यांनी "अपवादात्मक परिस्थिती" म्हणून हे मान्य केले आहे!"
खेळ पैशाचा - भाग १ (पैशाची निर्मिती) http://misalpav.com/node/2436खेळ पैशाचा - भाग २ (इन्फ्लेशन) http://misalpav.com/node/2437खेळ पैशाचा - भाग ३ (बँकांची गरज - सतत इन्फ्लेशन) http://misalpav.com/node/2464खेळ पैशाचा - भाग ४ (पैशाचा साठा, प्रगती, मर्यादा) http://misalpav.com/node/2465खेळ पैशाचा - भाग ५ (अर्थव्यवस्था कोसळण्याची गरज) http://misalpav.com/node/2467
The key to all market analysis anywhere in the world is the US bond market. It is the keystone to their arch of fraud whose stones consist of the various methods, which they use to extort and control the financial systems around the world. This market is worth over 45 trillion worldwide with the US share of that market being worth about 25 trillion. The bond market has five main categories, namely, corporate bonds, government and agency bonds, municipal bonds, bond derivatives such as mortgage-backed securities, asset- backed securities, and collateralized debt obligations and funding bonds. Fed will act to save the bond market at all costs. All other markets are secondary, with the exception of the gold and silver markets, the suppression of which is JOB ONE at the Fed. Any other markets, in particular the stock markets, will be sacrificed in a New York second to save the bond market. Knowing this provides a certain amount of clarity when predicting what the cartel will do in any given situation.
US treasury bonds, which are a large segment of the bond market, are used to absorb trade deficits caused by free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration and to keep all the inflation out of US. Foreign countries with large forex reserves are told to use their dollars to buy interest-bearing treasuries instead of buying hard assets in the US which would be highly inflationary for US financial system because exported dollars would then reenter US domestic economy and increase US money supply. In this way, the rampant inflation caused by profligate issuance of money and credit by an out-of-control Fed in its attempt to cover up the destruction of US economy stays safely overseas, having been absorbed by the treasuries.
This issuance of money and credit was created by the Fed to support the free trade-globalization agenda and the transnational conglomerates, which are gutting US economy, especially manufacturing sector. This scheme is now unraveling as foreigners shun dollar-denominated treasuries yielding negative real returns as inflation, a falling dollar and increased risk destroy the value of outstanding treasury bonds. The floodgates are now starting to open as a sea of dollar forex flees in terror from dollar-denominated treasuries into hard assets, the effects of which are already starting to see in highly elevated commodity prices which are also being driven by banks that are desperate for profits to improve their balance sheets by exploiting the loophole. Hold on to your hat, because this flow of money back into US domestic economy is just getting started. Wait until all this money pours back into the US economy. Inflation will go inter-dimensional and take US through a wormhole back to the days 1920-1945 era.
Treasury securities are also used to fuel the Fed's repo pool which is used to power market manipulations by making tens of billions of dollars available on a moment's notice. The Fed creates money out of nothing to buy treasuries from the primary dealers, who then use the sales proceeds to fund the operations of the President's Working Group on Financial Markets which assists the elitists in stealing from you on a 24/7 basis. The dealers offer to buy these securities back from the Fed within a month or less in what are called repurchase agreements. Thus, this "funny money" is shoveled back and forth from the Fed to the primary dealers and from the primary dealers back to the Fed as needed whenever financial assistance for manipulation of markets is needed. Treasuries are therefore the engine which drives this fraudulent scheme, a scheme that is completely illegal because the authority granted is exceeded beyond all belief in what one day will be exposed as the greatest abuse of financial power by US government officials in the history of world.
The bond market also serves as a product pool for the cartel, which sells over-rated credit-derivatives with attractive yields that are used to addict institutional investors in much the same way as drug dealers dupe drug addicts into a life of drug addiction by offering attractively priced samples of their "products." The bond market is therefore the primordial soup from which the toxic waste products of "financial engineering" issued forth, and is the true birthplace of the credit-crunch debacle. The bond market was used to manufacture fraudulent derivatives by slicing, dicing and re-securitizing various types of assets that were being used to secure existing bonds, lacing these re-securitizations with tranches of risk based on assumptions about performance and default that were patently false, and pawning them off on mainly institutional investors as AAA paper with help from co-conspirators in the ratings agencies. The creation of this toxic waste was also enabled by fraud from top to bottom that was perpetrated by lenders, underwriters, originators, appraisers and borrowers. Subprime mortgage derivatives are but one example of this.
The bond market is also the source of funding for all larger business concerns seeking to leverage their growth and income flows and attempting to maximize shareholder equity. Once a business tastes cheap credit, there is no turning back. Trade in this credit-crack was fueled and expanded to new heights by none other than Alan Greenspan, by pushing the Fed funds rate down to a ludicrous 1.0%. Most, if not all, large businesses continue to over-utilize what used to be substantially cheaper money and credit to finance large portions of their operations by selling bond issues. Without this money and credit, these businesses would wither and die. Further, much of this bond debt was floated at a variable rate of interest tied to the prime rate, which could soon blast off into outer space in a rocket powered by hyper-stagflation, a rapidly declining dollar and ever-accelerating risk caused by ever-increasing defaults on debt across the board. The Fed has lost control over interest rates, which will now be what bond investors require them to be. This rate disaster will eventually destroy corporate profits and propel US into recession and depression. Gold and silver are your only refuge.
As many poor souls are painfully aware, the bond market was also used to dupe auction rate municipal bond investors out of their money by promising AAA ratings and liquidity as good as cash. These investors chased after higher yields on what they thought was secure municipal debt in a liquid market backed by AAA rated bond insurers that in reality were leveraged to their eyeballs and should never have had AAA ratings. The institutions that created this market are now refusing to keep this market going or to make good on their promises to investors.
Quite notoriously, the bond market was used to fund the real estate bubble by providing funds from bond investors chasing higher yields to mortgage lenders who then lent the money to people who should never have bought homes to begin with. These mortgage lenders then sugar-coated the resulting waste with fraud heaped upon fraud. These mortgages were then packed into the tranches of various new toxic waste derivatives and were often sold back to the very bond investors who had originally provided the funds to the mortgage lenders to begin with. The proceeds from the sale were thus recycled back to the mortgage lenders to create more toxic waste, completing the cycle of doom. This was nothing short of a continual rollover of fraud and deceit, which ended abruptly when Oppenheimer analyst Meredith Whitney exposed the overvaluation of Citigroup's toxic waste.
Note how the financial institutions that run the bond market, with the ratings agencies, have used their positions of power and influence to suck in the money of investors while generating enormous profits for Wall Street banks, investment banks, brokers and securities dealers in the form of commissions, fees and spreads.
The bond market is where the banks park their money when they are not using it in some other scam. They use the bonds to make greater returns through arbitrage, borrowing cheaply from each other or by floating commercial paper and then investing the proceeds in higher-yielding, longer-term bonds and derivatives. This scheme for generating profits has unraveled as the value of the waste bonds and derivatives given as security for the commercial paper have imploded due to defaults and declining real estate values, and as rising short-term interest rates have destroyed yield spreads while eroding the principal value of the bond collateral. The institutional investors borrowed short-term, and invested long term, after which the yield curve became inverted and the waste collateral became overvalued and unmarketable, thereby putting the commercial paper market into a cryogenic state.
And then there is the whole derivatives market of credit default swaps and interest rate swaps, which are simply extensions of the bond market through "financial engineering" to provide a form of insurance for the bond market based on bond performance in terms of repayment of both principal and interest. As defaults have accelerated, these swaps have multiplied like rabbits and will soon reach about one quadrillion dollars worth of notional principal. This is the financial version of the China Syndrome waiting to happen. First there will be trouble with credit default swaps as banks and large corporations fail due to a severe recession, a horrible real estate market that grows worse by the minute, hyper-stagflation, insolvency, negative yields on investment, a collapsing dollar and a complete and utter collapse of consumer spending and confidence which will continue to set all-time lows. These circumstances will then send real interest rates into double digits, after which the interest rate swaps will implode, taking the entire world financial system down with them. This quivering, quadrillion dollar caldera of molten death is what distinguishes our current debacle from all previous financial disasters. When this caldera erupts, it will make what happened in the 1930's look like a picture of prosperity. Americans and in general people in the world have no idea how bad this situation really is. Unfortunately, they are going to find out very soon, after it is too late. Do not be like them! Buy gold and silver, take physical possession of it, and wait for the financial mushroom clouds to appear. What will be a disaster for the uninformed will be the greatest profit-generating event of all time for the informed.
(Continued…)
हे मिसळ पाव वरुण घेतले आहे.