From: Richard Eastman <richardeastmanyakima@q.com>
Date: Tue, Aug 17, 2010 at 1:59 PM
Subject: [bangla-vision] "Christians" like you?
To:
By Khaild Amayreh in occupied Palestine
"Jesus hates Muslims," screamed the cultists at worshipers arriving at the Masjid An-Nur mosque to prepare for the first congregational prayer in the Holy Month of Ramadan. One protester reportedly shoved a placard at a group of young children leaving the mosque, shouting "murderers."The anti-Islam riots coincide with plans by a marginal Pentecostal church to burn copies of the Quran on 11 September to coincide with annual anniversary of the terrorist events which took place nine years ago.
It is not difficult to understand what these ignoramuses and liars are up to. They are insecure in their beliefs and would want to draw attention. This is why Muslims must maintain calm and composure. Reacting violently or in an uncalculated manner would be playing into their hands. In Surat Aali-Imran, the Almighty reminds us of the following:
"Ye shall certainly be tried and tested in your possessions and in your personal selves; and ye shall certainly Hear much that will grieve you from those who received the Book before you and from those who worship many gods. But if ye persevere patiently, and guard against evil,-then that will be a determining factor in all affairs." V. 186
These people are not really interested in knowing the truth or evening understanding the other. They reject any debate because they have nothing really to say except badmouthing and curses. Their aim is to incite against Islam and foster hatred against Muslims because they view Islam as their ideological and spiritual opponent. Their slogans that Islam represents the devil should be viewed as a sign of moral and religious bankruptcy. There are hundreds of religions in this world and each views itself as exclusively right and others as wrong. However, very few if any openly calls for the annihilation of a specific religion.
Well, if Islam represents the devil, then why not debate it and expose it to all and sundry instead of ranting like mad, barking dogs? (A Muslim is urged to say "I seek refuge with God from devil" whenever he or she recites the Quran.) So, what kind of devil is that which warns people against itself when reading Islam's Holy Scriptures?
Besides, does the rejection of the Trinitarian doctrine make the rejecters worshipers of the devil. If so, Jews, too, must be authentic worshipers of the devil since they reject Jesus completely and absolutely?
But why do these morons have a certain fixation on Muslims while paying little or no attention to billions of other people around the world who don't worship Jesus?
The answer is very clear. Buddhists and Hindus, for example, don't represent a religious or spiritual alternative to the Christian religions. Moreover, the perceived proliferation of Islam in some western countries is seen as a strategic threat by these fanatics who seem to have no other recourse in dealing with this issue other than to resorting to primitive incitement, saber-rattling and vilification.
Islam orders Muslims to love, venerate and glorify Jesus. However, the Quran, Islam's Holy Scripture, teaches that Jesus is a human being, not a deity. That God neither begets nor is he begotten, and has no sons, daughters or a wife.
The story of Jesus' birth is highlighted in Surat Maryam (Mary), the Mother of Jesus, who is mentioned in Islam's holy book more often than she is mentioned in the New Testament.
16. Relate in the Book (the story of) Mary, when she withdrew from her family to a place in the East.
17. She placed a screen (to screen herself) from them; then we sent her our angel, and he appeared before her as a man in all respects.
18. She said: "I seek refuge from thee to ((Allah)) Most Gracious: (come not near) if thou dost fear Allah."
19. He said: "Nay, I am only a messenger from thy Lord, (to announce) to thee the gift of a holy son.
20. She said: "How shall I have a son, seeing that no man has touched me, and I am not unchaste?"
22. So she conceived him and she retired with him to a remote place.
23. And the pains of childbirth drove her to the trunk of a palm-tree: She cried (in her anguish): "Ah! Would that I had died before this! Would that I had been a thing forgotten and out of sight!"
24. But (a voice) cried to her from beneath the (palm-tree): "Grieve not! For thy Lord hath provided a rivulet beneath thee;
25. "And shake towards thyself the trunk of the palm-tree: It will let fall fresh ripe dates upon thee.
26. "So eat and drink and cool (thine) eye. And if thou dost see any man, say, 'I have vowed a fast to ((Allah)) Most Gracious, and this day will I enter into not talk with any human being'"
27. At length she brought the (babe) to her people, carrying him (in her arms). They said: "O Mary! truly an amazing thing hast thou brought!
28. "O sister of Aaron! Thy father was not a man of evil, nor thy mother a woman unchaste!"
29. But she pointed to the babe. They said: "How can we talk to one who is a child in the cradle?"
30. He said: "I am indeed a servant of Allah. He hath given me revelation and made me a prophet;
31″And He hath made me blessed wheresoever's I be, and hath enjoined on me Prayer and Charity as long as I live;
32. "(He) hath made me kind to my mother, and not overbearing or miserable;
33. "So peace is on me the day I was born, the day that I die, and the day that I shall be raised up to life (again)"!
34. Such (was) Jesus the son of Mary: (it is) a statement of truth, about which they (vainly) dispute.
35. It is not befitting to (the majesty of) Allah that He should beget a son. Glory be to Him! When He determines a matter, He only says to it, "Be", and it is. (The Quran, Sura 19)
It is really difficult and pointless to argue with fanatics especially if they happen to be ignorant as is the case with these stupid so-called Christians. Fanatics don't hold ideas, they are held by them. Ultimately, these people bring shame to themselves and to the great religion they claim to represent.
The issue at hand is not whether Jesus Christ claimed to be God or Son of God. People are free to believe what they want to believe. God is the final arbiter. And the arbitration doesn't take place in this world, but in the hereafter.
However, relating to those who differ with us with vilification, demonizing and calling children "murderers" is an expression not only of religious intolerance, but of intellectual bankruptcy to say the least. It is also an expression of a certain propensity to commit violence and terror.
Murderers are those who have murdered innocent people; Hence calling Muslim children on their way to a mosque in Texas "murderers" says more about the Christian fanatics' morality and way of thinking than about the innocent kids who were taught in school something about First Amendment freedoms and civil liberties, including freedom of religion.
The ugly anti-Islamic discourse in the United States these days is by no means a healthy discourse. Just imagine what the reaction to such a blaspheme would have been if such events had been held at a mosque and if Christianity had been demonized in the manner Islam has been?
Again, these barking "Christians" may succeed in generating some "bitterness" in some circles. However, let it be known that all their protests and madness will not succeed in undermining Islam, a religions that is gaining new converts despite all the incitement and hate-mongering.
Muslims are always capable of defending and protecting their religion and religious convictions. But they will not be drawn to meaningless altercations with marginal and isolated mad dogs that are really a cancer upon the conscience of Christianity.
Hatred is the weapon of the weak, and will only eventually consume the hateful themselves. Hatred is not Jesus's way of dealing with opponents, and Muslims are no opponents of Jesus. Hence, one wouldn't exaggerate much by saying that the preachers of hate must be acting under the influence of the devil, not the influence of God.
River to Sea
PHONY TERRORIST LEADER BEING "BRANDED" BY ASSOCIATED PRESS, THE "VOICE OF ISRAEL"
By Gordon Duff STAFF WRITER/Senior Editor
Adnan Shukrijumah, 35 formerly of Brooklyn, New York and Miami Beach is more likely to carry the real name Levine or Goldstein. The "legend," intelligence jargon for a false background constructed for an imaginary person, created for Shukrijumah is paper thin. An FBI Agent named Brian LeBlanc in an "exclusive interview" with the Associated Press warned the world of this new "bin Laden" clone.
Another term is "branding." This is what was done with Osama bin Laden, a former CIA operative and minor player in Afghanistan during the 1980s. He was branded as a terrorist mastermind, blamed for 9/11 though there isn't a single shred of proof of his involvement and has been chased around the world for the last nine years though he has been dead that long. Bin Laden died December 14, 2001. Adnan Shukrijumah, or whoever he really is, may well be the next "patsy" blamed for a "much too convenient" terror attack meant to send the United States to war with Iran, another war fought for Israeli business.
Now we are told that Adnan Shukrijumah of Miami Beach, probably enraged at the closing of Wolfie's "Rascal House," a really excellent deli, is the greatest threat America faces. An FBI agent has crowned him "king of Al Qaeda."
One other problem is that Al Qaeda doesn't exist, never has.
We simply made it up. There has never been such an organization, there has never been an organized world terrorist conspiracy of any kind. There have never been terrorist training camps in Afghanistan. Has anyone ever seen a photo of one? Of course not. In our nearly ten years scouring every square foot of Afghanistan, we have never found any of those "monkey bar" things we seeing the the films put on the internet. Journalists joke about these films along with the phony bin Laden videos. We call the Israeli group that puts them out "Bin Laden Studios."
Arabs with box cutters had nothing to do with 9/11. This is a cover story. It was all made up. There is no proof of their involvement and, quite to the contrary, six of the supposed dead terrorists are alive and well and screaming for press interviews. 9/11 had nothing to do with terrorism, nothing to do with Arabs and everything to do with money. Follow the money.
Why is this game being played, attacks in London and Madrid, New York and Detroit now, why the games? The answer is simple. The Caspian basin has trillions of dollars in gas and oil, controlled by new and highly corrupt countries whose governments turned to Israel years ago for technical support. With Russia, the Gulf States and Nigeria controlling most of the world's oil supply and money supplies almost exhausted, every loose cent that can be stolen already stashed away, looted by the banksters with the help of the Rothschilds and the Federal Reserve, this is the last great prize.
Chasing trillions of dollars of hydrocarbons, the last great source of collateral in the world, has brought about more than just the creation of phony terrorist organizations, false flag terror attacks and two phony wars.
Yes, we mean up to twelve trillion dollars in gas and oil is sitting there to be stolen from weak and corrupt governments. For this kind of money, we can easily expect another 9/11 or perhaps something worse, something "nuclear." The people making these decisions care nothing for human life, nothing for America and certainly, one thing I can assure you, not a single one of them is a Muslim.
The process of funding the corruption of these governments has taken billions of dollars. That money has come from the narcotics trade re-instituted by the Bush administration after the invasion of Afghanistan. What was no opium production at all is now, not just opium but heroin, with refining now done in Afghanistan and new poppy fields being planted every day with American guarding, not only the harvest but helping with the export as well. This is why America has used "contractors" to such an extent.
It isn't only Afghanistan, we are planting poppies in Iraq as well. In case, ok, let's face it, when America loses the war in Afghanistan, it is likely the Taliban will destroy opium production again. The only thing keeping Afghanistan afloat is drug money, American payoffs to the Taliban to let our supplies into the country, estimated at nearly $800,000,000 a year paid to the enemy by America's military, keeps them awash in cash. Taliban leaders have to travel to Pakistan. It is the only way they can fly to Dubai to bank their American cash. They share hotels there with the druglords tied to our "friends," all involved in the same sick game.
In the end, gas and oil will be piped through Afghanistan from the narco-republics of the Caspian. These negotiations have been going on since the 1990s. Our invasion of Afghanistan was only part of it, part of the negotiations. The Taliban was looking for too big a cut of the profits. We thought we could brush them aside and take over. 9/11 and the carefully planned and staged disinformation campaign attempting to tie it to Afghanistan was nothing personal, it was business. People die in business every day. Ask any banker.
This is the reason an FBI agent's uncontrolled blithering to an AP reporter is now in hundreds of newspapers as the branding of a new leader of a non-existent terrorist organization. It is also the reason we are likely to see a new terrorist attack in the United States after Labor Day. Attacks are time for news cycles. Check on that. We can expect one in September and another one around Christmas with one more on the run up to Easter.
What could we find out about Shukrijumah? Air Force pilots who have flown him and his family, yes, you have it right, United States Air Force, claim the photos and likenesses are totally phony. These pictures are someone else entirely. This isn't the first time this has happened as the strange transformations of Osama bin Laden showed us. My how much bin Laden changed after his death.
It took minutes to get multiple confirmations on this. Everything about our "terrorist" and his family is being misrepresented. These aren't even the same people. This is too easy.
If a several questions didn't just come to mind after reading this, you aren't getting enough sleep.
There are no people hiding in Afghanistan planning these attacks. There are no terrorist leaders. No, Mullah Omar, the imaginary leader of the Taliban is not planning a major offensive against American troops or attacks on anyone. Even if he does have one of those encrypted Israeli satellite phones that the rest of the insurgents are using to defeat American signals intelligence operations, he is unlikely to be doing anything other than waiting.
America, along with the "Karzai Incorpated" drug cartel has created a monstrous situation in Afghanistan. General Petraeus inherited a nightmare, 9 years of wrong direction, wrong country, wrong everything. Yes, there is corruption, evil. Yes, America is being victimized by violent men, planning the downfall of the United States.
We call them "congress."
When something blows up, be it a dirty bomb in Cleveland, not too close to Shaker Heights, or a school in Little Rock, a "branded" terrorist leader, one with a storybook background, Saudi born, evil extremist Muslim dad, will be dragged out. As with most of our phony terrorists, he will be a ghost, a Mossad agent like the dozens, maybe hundreds of violent Muslim terrorists they dress up and parade out when needed.
Simply put, there is no Islamic terrorist movement of any kind other than the groups promoting a just and peaceful settlement in Gaza, groups that strike back against Israeli violence, really Israeli terrorism. They have no reason to attack the United States. Millions in the United States support them.
The cover for 9/11, the idea that Americans were "defiling" the religious shrines of Saudi Arabia is equally insane. Nobody in their right mind believes that. Extremists exist. They ran the United States. If you want to ask someone about 9/11, someone who could tell you why, tell you how, go to Dallas. Ask George "W" Bush about 9/11. He knows.
http://www.youtube.com/watch?v=J6ncmndebjE
The usury system has failed to perform as claimed. It's time for the human population to forclose on the Rothschilds/Rockefellers, the Bank of England, the Fed and Goldman-Sachs and open up treasures of heaven by surrendering to doing right by one another.
===============
Shortcut to: http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html
(1) Social Crediters against Deflation
(2) Eastman versus Jim Willie The problem is not fiat, it's usury. The solution is not gold, it's social credit and debt-free treasury notes.
(1)
To: oldickeastman@q.com
Subject: RE: reply to Doug French "In Defense of Deflation"
Date: Thursday, 12 Aug 2010
Richard Eastman _
CC: rickycook21@hotmail.com; lewrockwell@mac.com; Harper.S@parl.gc.ca
Subject: Re: reply to Doug French "In Defense of Deflation"
Date: Thu, 12 Aug 2010
This article reveals a serious lack of understanding of the nature of the price-system. It also seems to give credence to the claim that Austrian School policy is primarily to make the world safe for International Banking.
To: oldickeastman@q.com
CC: ami@taconic.net
Subject: About that absurd article by Dr French....
Don't even waste your time responding to these [Austrian school economists] .
Just as the Federal Reserve Bank is neither Federal, has no reserves, and is not a bank, so does the Austrian bunch parallel it: it is not in Austria, it is without a proper academy, and it has nothing to do w/economics as such, only the pursuit of the ideology of its first preacher.
Stephen Zarlenga, whose magisterial work "The Lost Science of Money" absolutely flattens these know-nothings, offered to meet them in public debate, but no one will accept his invitation to a beheading. On the other hand, if you read the same magnum opus --which, by the way, has hundreds of amazing illustrations and references that will delight you!-- you will quickly find that Stephen's decades of research supports all your thinking and insights. I have the First Edition; a Second has been published and can be ordered from any bookstore. Look at his website: www.monetary.org, and don't miss his essay, "Why AMI considers the Austrian School as monetarily illiterate and not having done their homework: A Refutation of Menger's Theory of the Origin of Money".
Lest you fear that I've succumbed to argumentum ad homineum, let me assure you I have not. Rather, I detest ignorance when it assumes authoritas neither conferred upon it nor earned. For, as Goethe so wonderfully remarked, "There is nothing more frightening than ignorance in action!"
But, as I wrote above, these [Austrians] cannot admit their ignorance, so they distract us by their noisy antics. Ignore them.
All best, J
The leverage and the makeup of the structured finance schemes devised by Wall Street and the Big US Banks is unraveling. As it does so, the deep fraud is exposed. As it does so, the ruinous construction of finance engineers is exposed. As it does, the vulnerable heart & soul of fiat currency systems is exposed. As it does, the uncontrollable growth of debt originating from the Untied States is exposed. As it does, the path to the USTreasury default is exposed. As it does, the only legitimate financial asset in a paper-driven world is exposed, GOLD. As the Wall Street and Big US Banks are recognized as dead defunct charred ruins of financial firms, whose main source of liquidity funds is naked shorting, the blatant unprosecuted counterfeit of both USTreasurys and USAgency Mortgage Bonds, the ruined condition of bonds is exposed. They are the primary instruments for the fiat currency system. As it does, the only legitimate financial asset is exposed, GOLD. Money today is no different from denominated debt coupons. GOLD IS MONEY AND ALWAYS HAS BEEN MONEY, AS JOHN PIERPOINT MORGAN ONCE SAID.
NAKED SHORTING WITH FAILURE TO DELIVER
In the Smoking Gun article, the main accusation was cited as widespread counterfeit and hiding vast funds. The sale of USTreasury Bonds in the last two years has exceeded the USGovt debt issuance by $1.5 trillion. It was asked "Where did the money go?" But the more important questions are:
Ø What telltale evidence exists to shed light on the counterfeit? (Failures to Deliver)
Ø Where else is excessive sale of USGovt sponsored securities? (USAgency Bonds)
The answers are easy. The implications are great. The impunity is disturbing. The signs of systemic breakdown are diverse. The road to perdition is clear. The path to a USTreasury default is far more obvious with each passing month. The denial is thick. The mortgage bond fraud, whose climax failure in 2008 was quite visible, went unprosecuted. So Wall Street and the Big US Banks are dead. The kings are dead, but the theft has not ended. A new blatant form of fraud has entered the room. Silence is deafening from the entire cast of enforcers, who have one element in common, a Goldman Sachs pedigree. The impish clowns sitting on the helm at the USFed oversee the fraud. They have often stated their primary objective to aid in the promotion of liquidity to the big banks. Naked short sales of USTreasurys and USAgency Mortgage Bonds accomplishes the mission. Yet another Mission Accomplished on a sordid trail in recent US financial snakepit and cesspool run by a den of thieves.
---
The grand fraud in progress using USGovt debt securities.
The glaring actions continue without any hint of legal prosecution but deep foreign resentment among creditors as publicity mounts. Nobody appreciates counterfeit of the instruments held in great volume as supposed savings. The only counterfeit of honorable origin is of Microsoft products, since mostly stolen and surely not the output of in-house innovation. The problem is more diverse than just a JPMorgan bond fraud issue. Sure, the venerable colossus and syndicate titan sold more than $2 trillion in USTreasurys than were issued in the 1990 decade. Records used to be found in the penthouse business offices at Cantor Fitzgerald in South Manhattan. A database migration to New Jersey surely involves a great deal of deletions. The problem goes far beyond the giant bank, which gobbled numerous other banks in the course of its cancerous reign, to become an appendage of the USGovt today. See Chase Manhattan, Chemical Bank, Manufacturers Hanover, and Bank One. Any competent student of financial economics can see that such merger is part & parcel of the Fascist Business Model, with climax merged union with the state, and side effect of criminal impunity that permits deep fraud in numerous markets like silver. JPMorgan cannot be fixed by the process any more realistically than an angry man with a vengeful heart can carve out his own cardiac pump in order to enjoy a better day. Thus no solution exists.
The problem in very recent history traces back to the September and October months of 2008, when Wall Street investment banks and the US banking system died. These banks have not and will not recover, since they died. Some deaths were obvious, but others remain well hidden. The big banks do not lend money since they are dead, the dirty little secret. Their insolvency is easy to prove, but obscured by altered accounting rules put in place on April 1st 2009. They include generous rules that permit a dead entity to declare itself alive by filing a false accounting report, valuing their own assets at whatever suits their needs. Generally, insolvency plus illiquidity will force bankruptcy. But Wall Street and the Big US Banks use naked shorting of USGovt-backed bonds to produce urgently needed liquidity. All the extreme efforts to revive the US banks are futile. Imagine numerous transfusions of a dead man in the Emergency Room of a hospital, as more blood does not guarantee a resuscitation. More wires and tubes don't mean squat, since the guy has croaked and his corpse is rotting with a stench spreading into the corridors. The dirty secret, protected from the US public, is that the man died. So Wall Street and the Big US Banks are dead. By withholding the reality, a storm of funding programs has been approved by the USGovt, mostly directed at Wall Street and the Big US Banks. They urgently need liquidity, and are creative how they obtain it.
A near total shun of the crooked investment banks Main Street and the states has taken place. The private sector investment community does not float new bonds when lawsuits cases are in progress! Sure, the last Stimulus Plan sent many billion$ to the states to plug budget shortfalls. And sure, another $26 billion pittance was approved today for states in a second plug. Somehow the thought of tossing a $1 bill into a tin cup for a street beggar comes to mind, except the beggar is a former well-placed skilled industry employee, now painfully displaced. The states need several hundred billion$, or better yet, they need to redirect the vast funds sent to WashingtonDC and keep them at home, where they would not be wasted or pilfered or sent to battle overseas.
Failures to Deliver on both types of USGovt-backed bonds are staggering. When a trade takes place, usually two to three days are permitted before the stock or bond must be delivered, so as to complete the trade, and to settle the funds transfer among parties. A year ago, vast sums of USTreasury Bonds were the subject of debate and dispute as the volume of Failures to Deliver was staggering in the months following the autumn 2008. Blame was given to the disorder that ensued from the Lehman Brothers failure, the AIG breakdown, and the Fannie Mae nationalization. No such convenient event can be blamed on the present-day Failures to Deliver. They continue for USTreasurys, and explain well the superfluous $1.5 trillion. They precede the return launch of the QE2, the Quantitative Easing. Suddenly, delivery of bonds might be made easier as the USGovt floods the bond market with new issuance covered in cost by the Printing Pre$$, which USFed Chairman Bernanke claims can be operated at zero cost. The actual cost is the ruin of the USDollar image and the ruin of the USTreasury prestige.
. . .
What would be the motive for naked short selling of USTreasurys in such volume? Sure, simple greed is always in the mix. Worse, Wall Street lacks legitimate business volume from which to earn profits. So Wall Street and the Big US Banks are dead. Imagine a dark storefront that used to have a bustle of business and constant flow of customers. Not Wall Street, no more. The dark storefront conceals a vast counterfeit operation inside. They sell debt securities under the cover of darkness, out the back door, and rake in great sums of money. When demanded to produce the USTreasurys, they refuse, they delay, or they defy, since they cannot deliver. Thus, the Failures to Deliver. This explains the ready cash flow of liquidity to the Wall Street banks without much investment banking business. This explains the 90 consecutive days without trading loss for the lead dogs in the corrupt sled. This explains how dead zombie banks continue to operate. So Wall Street and the Big US Banks are dead.
DEBT MATURITY & RESALE, NOT THE EXPLANATION
Word is getting out. The excess is NOT explained by USTreasury maturity, expiration, and re-sale, as some analysts claim without doing proper research. Many people offer this simplistic explanation, but it is not correct. Mature rollover of debt is clearly labeled as such, not to be confused with utter counterfeit from naked short sales. The excess USTreasury sale (over and above USGovt deficits) is largely from naked shorting, marked by known Failure to Deliver. This explains how Wall Street and Big US Banks keep their liquidity flowing. These big banks are dead zombies bereft of income, so they counterfeit a source of income. The big banks (including investment banks) have seen a huge decline in IPOs, Bond issuance, and their lending business is way down also, seen in the credit data. They have a big source of income in the USTreasury Carry Trade, buying long, selling short. They have been parking those profits in the USFed, earning interest as Excess Reserves. These points require repeating so as to sink in. Legitimate income is not available.
A Failure to Deliver occurs when the selling party cannot locate the bond, cannot find the bond, or it does not exist. More USTreasurys have been sold than float in existence. Worse, more USAgency Mortgage Bonds have been sold than float in existence. The Wall Street and Big US Banks are engaged in basic counterfeit, sale of that which they do not own, much like selling the Brooklyn Bridge. Some prefer to think the best, that debt is maturing and re-sold. No so! That is naive! The same goes on with the USAgency Mortgage Bonds.
New Issuance of USTreasurys, as the label implies, is new and not old. Many people have some confusion over what New means, which means fresh new securitizations. Rollover of old expiring maturing debt is totally different. The USGovt finance ministry calls it Rollover of Mature Debt Securities, or some such. Anyone who follows the auctions can easily comprehend the names of auctioned securities. In a typical auction, the USDept Treasury might say "$12 billion in New Issuance plus $4 billion in Rollover of Mature Debt securities." There are dozens of examples to detect with a minimum of research. These types of USTreasury products are utterly basic and the names are plain so that common folk can comprehend.
My friend and colleague, and partner in comic relief via telephone, is Rob Kirby. He is a former professional bond broker and credit derivative trader in Toronto. He knows that which he speaks. His opinion was sought, which appears liberally on his website (www.KirbyAnalytics.com). His analysis is thorough and highly reliable. Mr Kirby agreed with me and my claims of naked bond shorting, as he provided a thorough response that should settle any dispute. He wrote:
"When bond issues are announced they are all referred to as New Issuance in that they immediately (before they are auctioned) begin trading on a WI (when issued basis). But when the Government / Treasury states they issued $1.25 Trillion in New Debt securities, they are talking about an increase to aggregate outstanding, which would not include a boatload of expired debt that Rolled or replaced newly issued bonds or T-Bills. To perhaps make that a bit clearer. When the government announces they are going to issue $1.25 billion in new 5-year bonds, even if they are reopening an existing 5-year issue with a known coupon, they immediately begin trading on yield as opposed to existing bonds which trade on PRICE, as in discount or premium to par. / Rob"
SECOND SMOKING GUN WITH FANNIE MAE BONDS
They are known by many names. They are called Govt Sponsored Enterprise Bonds (GSE Bonds), or Fannie Mae Bonds, or Agency Bonds. My preference is to call them USAgency Mortgage Bonds, since they are backed by the full deceit, dishonesty, corruption, collusion, and cloud cover of the United States Government. My claim has been consistent, that Fannie Mae is the crime scene for trillion$ in past theft, with probable dirty hands on past presidents, and that Fannie Mae is the principal clearinghouse for numerous fraud schemes in progress under the USGovt roof. Naked shorting has gone out of control with Mortgage Bonds. A fresh Bloomberg article has brought the counterfeit events to the fore, maybe even painted on a billboard. But the billboard has few lights, and might have been pushed onto a backstreet instead of a main avenue.
Naked shorting explains well the extremely high volume of mortgage bonds, including the Failures to Deliver. Wall Street and the Big US Banks are staying afloat from naked shorting, a form of counterfeit, in order to survive. They lack liquidity. The must sell something. Corporations, municipalities, and other entities observe the Wall Street criminal behavior, their conflict of interest, their trades positioned in opposition to clients, and have lost trust. The Wall Street community activity centered upon naked short sales of USAgency Mortgage Bonds complements their naked shorting of USTreasurys. So Wall Street and the Big US Banks are dead. The USTreasurys are the prima facie in the case to be brought for large scale fraud, sufficient for indictment. The USAgency Mortgage Bonds are the second part to the story, worthy of important support toward conviction. The difficulty of executing transactions tarnishes, pollutes, and contaminates the image of the $5.2 trillion mortgage bond securities market, which is the most liquid behind USTreasurys. That is precisely why the Fannie Mae bonds can be counterfeited so easily. With heavy volume comes heavy cover for fraud. The same is true of $100 bills counterfeited by the Central Intelligence Agency, to keep America strong.
In the aftermath of the USFed's $1.25 trillion of mortgage bond purchases over the last 18 months, they have exposed the market as broken. After acquiring about one quarter of home loan bonds with USGovt-backed guarantees to buttress the housing prices against the threat of freefall, to save the mortgage bond market from outright freefall, and to build a vast queer safety net for the USEconomy, the USFed made some securities too hard to find. In essence, the USFed exposed the vast fraud by Wall Street and the Big US Banks by scooping up the objects of their counterfeit.
Caroline Salas and Jody Shenn started off in their Bloomberg article with a powerful salvo. They wrote, "For all the good the Federal Reserve's $1.25 trillion of mortgage bond purchases have done, they have also left part of the market broken. By acquiring about a quarter of home loan bonds with government backed guarantees to bolster housing prices and the US economy, the Fed helped make some securities so hard to find that Wall Street has been unable to complete an unprecedented amount of trades. Failures to deliver or receive mortgage debt totaled $1.34 trillion in the week ended July 21, compared with a weekly average of $150 billion in the five years through 2009." The last sentence should be read two or three times. It is a smoking gun of USAgency Mortgage Bond fraud, not so much of monetization. In fact, the fraud is the obverse side of the coin whose face features blatant bond monetization. The US financial coin has monetization on its face and bond fraud on the obverse, the rotten output of a fiat currency system in its final phase.
Thomas Wipf chairs an industry group that is trying to address the problem, which is hardly a secret. The fraud is in the open, but not discussed EVER in the financial press or on the air of financial networks. Wipf is chairman of the Treasury Market Practices Group and the head of a bond group at Morgan Stanley. He is concerned about exacerbated damage caused by the collapse of a bank or fund. Translate that concern, as Wipf is worried about exposure of massive bond fraud by Wall Street and Big US Banks during a routine bank failure. Wipf said, "You are adding systemic risk into the market. Investors are taking on counter-party risk in trades they did not intend to take on." In other words, investors are being defrauded and could retaliate if powerful enough. Numerous other bank and bond analysts are hot on this story, but they either refuse to state the obvious or they are not permitted to state the obvious. Maybe after years of operating within the snake pit, they cannot perceive the obvious. Wall Street and the Big US Banks are dead, and are using magnificent naked shorting of USGovt-backed bond securities to remain alive. They know well that the USDept Treasury, the Securities & Exchange Commission, and the Office of the Comptroller of Currency will do nothing. They are dominated and controlled by Goldman Sachs, each head holding a GSax pedigree, and thus no prosecution for grand bond fraud will ever happen. In fact, some research might expose that Goldman Sachs could be the greatest offender of them all in this grotesque naked shorting game. They were a primary player in the last bond fraud scheme, the packaging and sale of mortgage backed securities. This is a natural extension within their field of expertise, their realm of dominance.
The Bloomberg authors Salas and Shenn point out the ripple effect, the daisy chain of unsettled trades that occurs when a broker dealer acting as a buyer in one transaction fails to deliver those bonds as a seller in another. Even Moodys Investors Service is on the crime scene, but not likely to speak truthfully, accurately, or boldly. Senior analyst Alexander Yavorsky at Moodys is concerned about the drag on the mortgage bond business, when he should be more concerned about massive fraud within the business. Obviously, if reduced liquidity in the mortgage bond market persists and causes investors to seek other assets, the consequent effect would run counter to the USFed's goal of buoying demand for the securities. The official program (dubbed QE1) began in January 2009 and officially ended in March. Fraud usually undermines, hinders, and ruins securities markets. But in the Untied States of America, such bond fraud is sanctioned and protected by the regulators, by the central bankers, and by the finance ministries. If truth be known, Wall Street and the Big US Banks are dead. Authors Salas and Shenn had better be careful, or they will lose their jobs for the horrible exposure. Their editorial managers probably have told them to shut the hell up already, after receiving a phone call from the Wall Street control tower. See the Bloomberg article before it is pulled by order of the USGovt (CLICK HERE). It is entitled "Fed Finding No Good Deed Goes Unpunished With Mortgage Bond Trades Failing" and is an eye-popper.
Friend and colleague Aaron Krowne is the owner and editor of the Mortgage Lender Implode website (CLICK HERE). He is an astute bank analyst with a keen alternative viewpoint. He wrote in an email, "Looks like a side effect of the USFed's massive mortgage buying is causing the 'tide to go out' on this market, revealing massive manipulation, or at least, incredibly unsound synthetic derivatives trading on these major fixed income bonds." Wall Street built countless leveraged and artificial bonded securities, mostly atop shifting sands. A great unraveling is in progress, and so is a great awakening in progress.
. . .
The leverage and the makeup of the structured finance schemes devised by Wall Street and the Big US Banks is unraveling. As it does so, the deep fraud is exposed. As it does so, the ruinous construction of finance engineers is exposed. As it does, the vulnerable heart & soul of . . . systems is exposed. As it does, the uncontrollable growth of debt originating from the Untied States is exposed. As it does, the path to the USTreasury default is exposed. . . . . As the Wall Street and Big US Banks are recognized as dead defunct charred ruins of financial firms, whose main source of liquidity funds is naked shorting, the blatant unprosecuted counterfeit of both USTreasurys and USAgency Mortgage Bonds, the ruined condition of bonds is exposed.
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Here is the article by Doug French which I discuss above. -- Dick Eastman
In Defense of Deflation
Mises Daily: Tuesday, August 10, 2010 by Doug French , president of The Mises Institute
The failure of central bankers to make things all better again by creating some money and lowering some interest rates has the financial press fretting about deflation and thinking the US economy is turning Japanese. James Bullard, who heads the Federal Reserve Bank of St. Louis, came out with a paper entitled "Seven Faces of 'The Peril'." He concludes that the Federal Open Market Committee's (FOMC's) "extended period language may be increasing the probability of a Japanese-style outcome for the U.S." To avoid that outcome, Bullard argues that the Fed's most important tool is quantitative easing — printing money to buy government debt.
The Wall Street Journal's James B. Stewart claims deflation is bad because "deflation erodes profits and asset values," in his "Smartmoney" column.
People wait to buy expecting lower prices, reducing demand. Lower profits cause companies to cut expenses, including employees. It is a downward spiral that, if Japan's experience is any indication, is difficult to arrest.
Mr. Stewart is wrong on all counts. Profits are the difference between the price we sell a good for and the price it costs to produce that good. As Jörg Guido Hülsmann makes clear in his book Deflation & Liberty, "In a deflation, both sets of prices drop, and as a consequence for-profit production can go on."
And while asset values may drop, the assets don't go away. The real wealth of the nation — assets used for production — are still available to produce. However, it may be that because the debt is liquidated on those assets as prices fall, new owners will own and operate the assets, but commerce and production will certainly carry on.
Lower prices increase demand; they do not reduce or delay it. That's why more and more people own flat-screen TVs, cellular telephones, and laptop computers: the prices of these goods have fallen, and people with lower incomes can afford them. And there are more low-income people than high-income people.
Lower prices don't mean lower profits; nor do they mean that employees will be laid off. More demand for a good or service means more employees needed to produce those goods and services. "There is no reason why inflation should ever reduce rather than increase unemployment," Hülsmann writes.
People become unemployed or remain unemployed when they do not wish to work, or if they are forcibly prevented from working for the wage rate an employer is willing to pay. Inflation does not change this fact.
Hülsmann goes on to point out that only if workers underestimate the amount of money created by the central bank and therefore reduce their real wage-rate demands will unemployment be reduced. "All plans to reduce unemployment through inflation therefore boil down to fooling the workers — a childish strategy, to say the least."
Of course, Mr. Bullard over at the St. Louis Fed doesn't mention anything in his paper about individuals attaining their goals through subjective knowledge and pricing decisions. Instead he draws lots of lines on graphs and talks about Taylor-type policy rule, zero bound, the Fisher relation, "targeted" steady states, and lots of stuff that has nothing to do with economics.
So while the bond-buying Mr. Gross says zero rates will arouse the animal spirits in all of us, Mr. Bullard worries that "promising to remain at zero for a long time is a double-edged sword." Bullard writes that zero rates are "consistent with the idea that inflation and inflation expectations should rise in response to [that] promise." But in the same paragraph he continues,
But the policy is also consistent with the idea that inflation and inflation expectations will instead fall, and that the economy will settle in the neighborhood of the unintended steady state, as Japan has in recent years.
Wow, no wonder Keynesian central banking is so hard. You're damned if you cut rates and damned if you don't. "I moved the line on the graph. Let's see some animal spirits for crying out loud!"
In the real world, banks aren't lending because, as Murray Rothbard points out in America's Great Depression, if rates are too low, bankers have no incentive to lend, especially in a risky economic environment. Also, as Professor Jeffrey Herbener wrote in the Asian Wall Street Journal, "with distressed banks, reflation fails to induce another bank credit expansion."
Keynesians have mistaken the impotency of the Bank of Japan to restart credit expansion in the 1990s as a liquidity trap. But the problem is not that interest rates are so low everyone expects them to rise and therefore hoards cash. Banks refuse to lend because of the overhang of bad debt. Any cash infusion is held as reserve against it. Businesses refuse to borrow because of their debt burden, built up to expand capacity during the boom, and their over-capacity resulting from their malinvestments.
Japan has tried every stimulus trick in the book — in addition to holding rates at zero — and still its economy has been in a funk for two decades. But firing a worker in Japan is virtually forbidden and don't get the idea that consumer prices have fallen through the floor. According to the International Monetary Fund (IMF), last year saw the biggest drop in consumer prices at 1.13%, after prices rose 1.4% the year before. The chart of Japan's inflation rate is essentially flat. Not exactly the deadly deflationary spiral it's made out to be.
Hülsmann explains that the Japanese government hasn't allowed deflation to heal their economy, with "the only result of this policy [being] to give a zombie life to the hopelessly bureaucratic and bankrupt conglomerates that control Japanese industry, banking and politics."
As for Bullard's quantitative-easing (QE) idea, the Bank of Japan has done plenty of it, buying not only government bonds but corporate debt and stocks as well. Bullard's colleagues over at the San Francisco Fed have studied whether it worked. In a 2006 report, Vice President Mark M. Spiegel wrote that QE lowered long-term interest rates and "there appears to be evidence that the program aided weaker Japanese banks and generally encouraged greater risk-tolerance in the Japanese financial system."
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Palash Biswas
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