Stacy Summary: Apparently, it’s a mystery as to why the UK has not been downgraded.
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ref. max keiser & Get 6 mo’s free storage
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crash banksters – Buy Silver & gold
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Most recent: 
http://boombustblog.com/reggie-middleton/2010/04/29/beware-of-the-potential-irish-ponzi-scheme/
Think this crap in couple of days from now will be unratable. 40% interest rates for Ireland soon ?
Me and my friend Vinne were just admiring your sovereign debt rating. It’s beautiful. I would hate to see anything bad happen to it. You know, like maybe your sovereign debt rating might get into some kind of accident. Vinnie and I have seen a lot of debt ratings get into “accidents.” Why just the other day day Vinnie saw Greece’s debt rating fall down the stairs.
So, we’d hate to see anything tragic happen to your debt rating. Of course me and Vinnie would be willing to make sure no accidents happen, for a little fee. Think about it. Vinnie hates accidents.
@Stacy and Max
http://www.trufax.org/general/bush_family_paraguay_hideaway_up.html?source=patrick.net
Bush family buys a hideaway in PARAGUAY, in marijuana prolific region.
Oh Kenny Boy ? !!!!!!! You will soon have your pal as company.
Disregard my argument then, Harry. It is as meaningless as the castle made of sand that recedes with the ocean.
My words have not the power written here to wiggle the ears of those who are proceeding with their aggregate greed to restructure our social order.
As far as Basel, the adage ‘primum non nocere’ would do well with regulatory agency: first do no harm. I protest not from the stance of a banker or a capitalist but from the vista of my own personal space. I rather enjoy my privacy and will not like to see it go.
But go it must. Along with the old gameboard and the pieces: the endgame is upon us, Harry. You must know that.
@ frances,
Why don’t I? Because it’s up to you to stand up your own argument, I don’t know why you to expect others to do it for you.
I haven’t refused to address anything, if you can explain what you mean by ‘the colonial interests backing this new reserve order’ I’ll address that. Otherwise it just sounds like more pretentious verbiage. Of course you’d wonder what skin I have in the game, that’s the paranoid style of politics. I’ve pointed out the nonsense you spout in past ‘remonstrances’, I’m no more condescending than you are, I just have a slightly better grasp of the economics and politics involved.
I’m clear about my political bias, I’ve pointed out a dozen times that Marx analysed a ‘credit crunch’ and the role of fictitious capital in Captial Vol.3, and was the first here on this site to point out another Marxist analyst Henry CK Liu predicted this ‘credit crunch’, it’s cause, it’s spread, the likely responses, all ahead of time, and it’s consequences since then.
Your bias appears to be that any international organisation is a conspiracy among some nebulous ill-defined ‘elite’ — the essence of paranoid politics, intellectually inert, and unproductive in suggesting any positive programme –which is why I object to it.
You just can’t say who or what you would though. You’ve been arguing against Basle III regulations of international banks due to the potential effect on ‘liquidity’, despite the fact that unregulated international banks and excess liquidity (based on a ‘easy’ monetary policy) were primary causes of the financial crisis.
@ frances,
Why don’t I? Because it’s up to you to stand up your own argument, I don’t know why you to expect others to do it for you. Anyway:
http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010#Emergency_and_short-term_responses
– “The U.S. executed two stimulus packages, totaling nearly $1 trillion during 2008 and 2009.”
– “The response of the U.S. Federal Reserve, the European Central Bank, and other central banks was immediate and dramatic. During the last quarter of 2008, these central banks purchased US$2.5 trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action, in world history. The governments of European nations and the USA also raised the capital of their national banking systems by $1.5 trillion, by purchasing newly issued preferred stock in their major banks.”
– “For a summary of U.S. government financial commitments and investments related to the crisis, see CNN – Bailout Scorecard: http://money.cnn.com/news/storysupplement/economy/bailouttracker/index.html
BIS Research on Global Liquidity (Nov 2009):
http://www.bis.org/publ/work293.pdf?noframes=1
Graph 7: It looks like Fed/ECB/BoE balance sheets expanded by a couple of trillion $ (give or take)
Deutsche Bank Research (July 2009):
http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000244774.pdf
“Some years prior to the crisis, abundant global liquidity and investors’ strong risk appetite boosted asset prices to very high levels. When investors started searching for higher returns in 2003, excess liquidity began to pour into financial asset markets, driving prices up and yields down. At the time when investors were confronted with increased default risk but in turn only received low returns the credit bubble burst, starting in the US mortgage market.
The state of the global economy and financial markets deteriorated dramatically when the subprime crisis turned into a full-blown global banking and economic crisis. Central banks around the world were forced to inject extra liquidity to support the banking sector, the credit channel and the overall economy. Owing to sharply expanding central bank balance sheets, some observers have become worried about the formation of another liquidity glut and its potential impact on CPI and asset price inflation.
Global excess monetary liquidity has never disappeared but keeps growing. Indeed, global excess liquidity (defined as a rising money-to-GDP ratio) is currently created due to shrinking nominal GDP as well as accelerating narrow money and softer, but still positive broad money supply growth, as central banks support the financial system and the economy.”
As I said, “The world economy is currently drowning in ‘liquidity’ provided by QE currencies (Japan, US, UK), and (to a much lesser extent) by SDR creation.” I’d only amend that for overlooking the ECB.
The size of SDR allocations: $250 billion. A much smaller source of liquidity, especially since they only flow between international monetary institutions and central banks.
Since you add in other IMF/World Bank measures: “[G20] Leaders agreed to make an additional $850 billion in resources available through international financial institutions like the IMF, World Bank, and other multilateral development banks, including a $500billion expansion of the IMF’s resources, an SDR allocation of $250billion, and at least $100 billion in additional lending from MDBs.”
SDRs are a small component, and the overall total is not insignificant but still far short of the sum of national measures for the provision liquidity.
@staceehurburt:
I do be sorry fur Steller. She’s a bee in yur bonnet today, fur sure. She do go on and on bout thangs. Should I lock her up in the shed?
Cleetus with a C
Slavery and the gold standard always hold hands, Stacy.
@snoot – and yet there was no income tax until the introduction of the federal reserve bank and fractional reserve lending; and with that, fiat currency that is mostly printed up by private banks; inflation is an odious tax that falls heaviest on the poor and those privileged few who have access to relatively unencumbered debt/cash
The BIS is a branch of the of the Bretton-Woods International Financial architecture and closely allied with the Bilderberg Group. It is controlled by an inner elite that represents all the world’s major central banking institutions. John Maynard Keynes, perhaps the most influential economist of all time, wanted it closed down as it was used to launder money for the Nazis during World War II. http://www.bilderberg.org/bis.htm#Higham
See Also the Docu: Banking with Hitler http://www.youtube.com/watch?v=YauM5dHLn1s
Stacy:
I’m not trying to hold back the tide. The world is acknowledging the change to the new reserve system. Unfortunately, the fraud that what inherent in the old will be rife in the new: the difference will be access to liquidity.
The exchange rate system is not actually run honest either. Through that system we have our dollar value index.
What about Price Waterhouse Coopers? Why do they get a go?
Goldman may squirm under the lens, but they might actually be doing ‘god’s work’ in trying to delineate the way the ponzi has been operated.
I have no problem with trying, convicted, and warehousing ‘financial terrorists’. But the real terrorism is becoming apparent within the new tyranny of ‘gross national happiness’, ‘social equality’, and ‘our-founding-father’s-sound-money’.
It’s not the kind of world one can breath in (without being taxed).
European Central Bank President Calls for Corrupt BIS to Boss Global Government in CFR Speech http://www.infowars.com/european-central-bank-president-calls-for-corrupt-bis-to-boss-global-government-in-cfr-speech/
William Black Warns That Financial Reform Bill Won’t Stop The Wall Street Crime Wave 21 April 2010 (The Huffington Post) http://tinyurl.com/28zukf3
Bank sure to exploit loopholes in current derivatives bill 22 April 2010 (MarketWatch) http://tinyurl.com/2waem79
Dodd Bill Would Allow Fed To Hide Its Spending 22 April 2010 (The Huffington Post) http://tinyurl.com/3xz6q29
@snoot – Max did not say liquidity is fraud; he says that ‘liquidity’ is the new code-word for fraud; Goldman and other market makers say they are providing liquidity with their fraud; this is something regulators, including Greenspan also argue in regards to the function of market makers; re: gold, well, there has never been a liquidity crisis or a run on gold in 5000 years, but past performance is not a guarantee of future returns; addressing what question? a regulation from the BIS? name me one regulation that has been followed by any TBTF, politically connected bank? as William K. Black said in his recent testimony; all of the stuff that has happened in the past two years are the same exact frauds that happened with Enron and all the regulations brought in to address that fraud have obviously not been followed
Our system of exchange is reliant for pricing upon the very liquidity that Max declares a fraud.
The real fraud is the refusal to address the question.
Morning Stacy:
I thought that would get your attention.
Actually, don’t you think that there will be a new context for liquidity within the multilateral exchange rate system? One wonders if gold will remain a liquid asset: I think not.
@snoot – gold is one of the most liquid assets in the world; which is why there is always a sell off in a liquidity crisis . . . it is often the only thing liquid at a moment like october 2008 and investors / funds need to sell what they can to cover losses or meet margin calls
@maxkeiser
Since you feel that “liquidity is the new buzzword for fraud”, is your position on holding physical gold a result of a suspicion of liquid assets in preference for illiquid assets?
@Danny
ahah, we were on the same page.
Webster Tarpley: Seize and Liquidate Goldman Sachs http://www.infowars.com/seize-and-liquidate-goldman-sachs/
Tarpley’s take on Goldman Sachs – very thorough
http://tarpley.net/2010/04/27/seize-and-liquidate-goldman-sachs/
Afghan Taliban getting stronger, Pentagon says 29 April 2010, by Julian E. Barnes (Los Angeles Times) http://www.latimes.com/news/nationworld/washingtondc/la-fg-0429-us-afghan-20100429,0,2848935.story
There are currently about 87,000 U.S. forces in Afghanistan, a number expected to rise to 98,000 by the end of August in this nearly 9-year-old war.
President Obama’s deployed 30,000 additional U.S. forces earlier.
The world economy is currently drowning in ‘liquidity’
http://www.howestreet.com/articles/index.php?article_id=13243
My suggestion: let’s not be governed by bankers.
excuse the morning spelling: naivety
@Harry:
Why don’t you come back to me and describe the liquidity available to the monetary authorities through their expansion of sdr allotments/imf bond sales/world bank loans? We are entering a global coup based upon utter naitivity: one wonders why. You claim the banks as enemy and the regulatory agency as copatriot: yet the regulatory agencies are banks.
I am not amused by your refusal to address the colonial interests backing this new reserve order. One wonders what skin you have in the game. In the past our remonstrances have been utter nonsence: you are quite condescending and blatantly biased.
@ frances,
International banks need to be regulated; whether that’s by Basle III, or whatever comes next.
Banks effective gaming of existing regulations was one of the primary causes of the financial crisis that exploded with the credit crunch of 2007-8.
The world economy is currently drowning in ‘liquidity’ provided by QE currencies (Japan, US, UK), and (to a much lesser extent) by SDR creation. That source of liquidity has taken over from pre-crisis cheap money being leant out by largely unregulated banks via credit/debt (with it’s own multiplier effects).
Object to Basle II or III if you like, they’re arguable on points, but without proposing any alternative framework for regulation, the only outcome I can see from your objects is a completely unregulated international banking system, leveraged to the maximum, supported by nothing more than the phoniest fabrications of fictitious capital conceivable.
Dubai World Said to Offer Extra 1% Interest in Restructuring 29 April 2010 (Bloomberg) http://tinyurl.com/36eorg6
The 1% rate would be on top of the 1% offered over the loans’ life.
Banks are reluctant to accept the new rate presented on March 25 as it is lower than the market rate of about 5% and would force Dubai World’s Dubai World’s creditors to book impairment provisions.
Initial jobless claims 448,000 in the week ended April 24 – 29 April 2010 (Bloomberg) http://tinyurl.com/35lz2tz
Peter Mandelson was asked about the UKs rating yesterday. His main reply consisted of stating that the UK economy was not like other economies. For some reason i was reminded of this
http://www.youtube.com/watch?v=p_MuUcxHATo#t=1m54s
“What markets do not want is to be trapped in a confused muddled
situation where they do not see clearly – a situation in which nobody would be ready to lend.”
The mystery of basel 3 is creating the muddled confusion:
“Draghi expects the draft Basel III global accord on tougher bank capital to be finalised by year end as planned. Some countries want elements of the package watered down…
“To expect that on this issue we could have one measure only for the whole world would be impossible. We have absolute commonality of objectives but … a menu of instruments,” Draghi said.
“It’s going to be a mix of mandatory and non-mandatory with a sound floor so as to avoid the race to the bottom,” he added.”
http://creditriskchronicles.blogspot.com/2010/03/fsb-on-importance-of-reviving.html
http://blogs.wsj.com/source/2010/04/27/capital-is-key-for-deutsche-bank-in-face-of-new-rules/
S & P from March on UK rating:
http://ftalphaville.ft.com/blog/2010/03/29/190276/sp-still-negative-on-the-outlook-for-the-uks-triple-a-rating/
Here’s the rulebook:
(for now….basel is retooling basel 3)
http://www.ucits-iii.com/
Here’s Draghi’s prognosis:
http://www.bis.org/review/r100325b.pdf?noframes=1
Why is basel suddenly finicky about covered bonds?
“The problem with he UK quasi-covered bond programs is definitely the missing legislation. Due to this lack, they carry a higher risk weighting and some investors, for instance the German asset managers, do not regard them as ‘Pfandbrief’ as they are not included in the approved list that is compliant with the European Directive on Undertakings for Collective Investments in Transferable Securities (UCITS). Therefore they have to regard them as corporate bonds with a very high rating. This classification hinders some investors to invest in these issues.”
http://www.risk.net/credit/feature/1522894/uncovering-covered-bonds
Croule Britannica ! Croule Britannia ! Britannia croule the seas. They reserve United Kingdumb as a desert, as a digestive.
The principle is quite simple here. The New-York and London terrorists to save the face, have decided to start fires in the eurozone and get rid of the euro and destroy Europe. They probably think that the real dumb investors that way, will think of the UK and the USA as a haven of peace and stability.
Thank God for the stupid and corrupt Greeks and PIIGS ! Mind you the trick used by the London and New-York financial terrorists won’t last very long. It will just accelerate their own downfall.
@Danny
Nothing to be surprised about – 2 of my friends from a different generation joined the RAF.
Anyway the guys is Limerick should be familiar with the art of urban warfare.
@ Stacy,
I like one of the comments from The Telegraph piece (which I thought was daft utopian neo-libralism):
That’s it in a nutshell, what I call the Bonfire of the Vanities approach, what Marx would have called the elimination of fictitious capital.
The neo-liberal slant in the piece may be highlighted if one considers the political point of this comment:
Bailout of sovereign debt isn’t on the agenda for those who received the bailouts, and benefited from QE/ZIRP.
Britain is still in QE/ZIRP asset inflation mode. a social, economic and political catastrophe for Bubbleland:
http://ftalphaville.ft.com/blog/2010/04/29/215471/double-digit-house-price-inflation-is-back/
@Stacy
You should post the People & Power film ye did where ye interview that woman from Moody’s where she practically admits they are corrupt.
@gussy
I just don’t know what to say about that Fás article – speechless. Jobs abroad?? WTF.
I tink Rating agencys should be dissolved tey are as clueless as anybody else
Dan Hannan on a handy way to imagine the scale of national debt (great 90 second video on US debt)
http://blogs.telegraph.co.uk/news/danielhannan/100036729/heres-a-handy-way-to-imagine-our-national-debt/
FINANCIAL REFORM ADVANCES
http://www.huffingtonpost.com/2010/04/28/wall-street-reform-democr_n_554841.html
FINANCIAL REFORM ADVANCES
GOP Drops Filibuster After Blocking Debate For Days… Who Blinked?
Get ready for our future……….
M.I.A, Born Free
http://vimeo.com/11219730
@Phil/G, missin ya; this is for you
Its been seven weeks and fifteen hours
Since you took your posts away.
We log on every night and click and wait
Since you took your posts away.
Since you been gone I can read all kinds of rage
i can watch whomever I choose.
i can feed my boredom on a fancy facebook page
but nothin, i said nothin can take away those blues
cos nothin compares, nothin compares 2 yooooou
http://www.youtube.com/watch?v=iUiTQvT0W_0
Re: the FAS article, I love the bit at the end promoting jobs abroad, all said with a straight face mind.
@Danny, yesterday’s news I know but here’s a link for ye http://www.irishexaminer.com/world/kfkfidcwidsn/rss2/
also what d’ye make of this http://www.examiner.ie/ireland/jobs-centre-funded-by-fas-offers-careers-in-british-army-118290.html#ixzz0mIoomUgr taking the Queen’s shilling once again.