How Long Can The Federal Reserve Stave Off the Inevitable?
The credit expansion and consequent rise in real estate prices, together with the deregulation of the banking system, especially the repeal of the Glass-Steagall Act, produced the real estate bubble and the fraud and mortgage-backed derivatives that gave us the 2007-08 financial crash.
The Federal Reserve responded to the crash not by bailing out consumer debt but by bailing out the debt of its only constituency—the big banks.
The Federal Reserve let little banks fail and be bought up by the big ones, thus further increasing financial concentration.
The multi-trillion dollar increase in the Federal Reserve’s balance sheet was entirely for the benefit of a handful of large banks.
Never before in history had an agency of the US government acted so decisively in behalf only of the ownership class.   click here
Pentagon seven hundred billion budget financed entirely by debt

Ironically the might of the most powerful empire the world has ever seen now rests on the goodwill, generosity (and ignorance) of those held down or threatened by it.
As Russia steadily slashes its military spending and announces cuts will continue for the next five years through 2022, the US is going in the other direction and shoveling ever more fantastic sums of money into the military and parasite defense corporations.
(Around half of Pentagon budget now goes to contractors.)
Ironically the might of the most powerful empire the world has ever seen now rests on the goodwill, generosity (and ignorance) of those held down or threatened by it.     click here
U.S. Federal Reserve
Illuminati practices 1913 to present...
US Federal Reserve 1913 untill collaps

Ben so when I collapse the dollar, the markets, the economy, what do I say.

Nothing to do with Fed destroying the dollar for over a century.
Ponzi scheme to end
all ponzi schemes
as if this electronic wizardry could ever be paid
US debt as of July 19, 2018 — 100+ % of GDP and GNI
(US officially recognized debt was 6½ Trillion 6,460,712,491,314.69 at the start of the US attack on Iraq, March 20, 2003. )
The US trade deficit was $559.9 billion in 2011, $540.4 billion in 2012, 474.86 billion in 2013
During fiscal year 2013 the U.S. Treasury paid 415 billion dollars in interest payments to finance the already-existing debt.
Annual interest payments for individuals, households, businesses, and all levels of US government are likely to reach $3 trillion — out of an estimated $17.4 trillion annual GDP.
The United States has the world's seventh-highest per capita GDP
GDP can be contrasted with GNI — gross national income — also known as GNP.    The U.S. GNP — gross national product — is the value of output produced by American-owned firms, regardless of where the firms are located.
These differences mean that GNP is a more accurate measure of a country's income than its production.
70% of US Treasury bonds owned by foreigners and the Fed Reserve Bank

Chart graph - seventy percent of US Treasury bonds owned by foreigners and the US Federal Reserve Bank.

Photo: Internet
Banking system completely dysfunctional
World’s Central Banks gambling immense amounts of money
Megabanks taking huge public subsidies
Underneath is the system of credit, UK, US
Average price of house in London half a million dollars
Gambling 4 trillion dollars on the FED balance sheet.   click here
Mewspaper with financial collapse.

70% of US Treasury bonds owned by foreigners and the Fed Reserve Bank

Chart graph - seventy percent of US Treasury bonds owned by foreigners and the US Federal Reserve Bank.

Photo: Internet

Biggest Credit Bubble in History Runs Out Of Time
US commercial Bank Loans Leases Bank Credit 2007 to 2014 - Biggest Credit Bubble in History Runs Out Of Time.

Picture: FRED
Image inserted by
It blew the loan out the back door as a special dividend which it owners pocketed with gusto
April 24, 2014
It has been a feeding frenzy for junk debt.
Yield-desperate investors, driven to near insanity by the Fed’s strenuous interest-rate repression, are holding their noses and closing their eyes, and they’re bending down deep into the barrel and scrape up even the crappiest and riskiest paper just to get that little extra yield.
Last year, highly leveraged companies issued $1.1 trillion in junk-rated loans.
It’s a white-hot market.
Leveraged-loan mutual funds — dolled up in conservative-sounding names and nice charts to seduce retail investors — gorge on these loans.
They saw 95 weeks in a row of inflows, week after week, without fail, adding over $70 billion to their heft, as
Bloomberg reported, and only the sky seemed to be the limit.
But suddenly, that endless flow of money reversed.
“It’s going to be a disaster on the way out,” Mirko Mikelic, who helps manage $7 billion in assets at ClearArc Capital, told Bloomberg. “On the way in, there’s insatiable demand....”
Simplest way to strip cash
Private equity firms have been ruthlessly taking advantage of that “insatiable demand.”
And they have a special self-serving trick up their sleeve: Their junk-rated overleveraged portfolio companies issue new loans, but instead of using the funds for expansion projects or other productive uses, they hand them out through the back door as special dividends.
It’s one of the simplest ways PE firms use to strip cash out of their portfolio companies.
It loads even more debt on the already highly leveraged portfolio company without adding productive capacity.
And those who end up holding this debt — for example, the mutual fund in your portfolio — have a good chance of losing it all.
“It’s kind of like an epidemic,” explained Martin Fridson, a money manager at Lehmann, Livian, Fridson Advisors LLC, in an interview with
“Once an investment banker sees that, he’s going to go to his clients and say, ‘Here’s a window of opportunity, you can take a dividend and get away with it.’”
And they’ve been getting away with it.
Default rates on junk debt hovered at 1.7% in the first quarter, a near record low.
But that’s always the case when liquidity sloshes through the system and years of interest rate repression turns yield investors into brain-dead zombies, always willing to replace troubled debt with new money.
But the historical average is 4.5%, and when things tighten up, as they did during the financial crisis, default rates jump into the double digits [read....
Biggest Credit Bubble in History Flashes Warning: ‘Seek Cover’].
They’re all doing it.
Junk-rated mobile-phone insurer Asurion finagled a $1.7 billion loan in March.
But instead of doing something productive with the funds to generate cash flow to service the loan, it blew the money out the back door as a special dividend which it owners — PE firms Madison Dearborn Partners, Providence Equity Partners, and Welsh Carson, Anderson & Stowe — pocketed with gusto.
BMC software
BMC software borrowed $750 million via one of the riskiest forms of debt, payment-in-kind (PIK) notes, where, if push comes to shove, BMC can chose to pay interest not with cash but with more of the same debt.
The amount it owes gets larger, as its chances of survival shrivel. Instead of defaulting, the company will simply hand the lender more paper that’s increasingly worthless.
BMC promptly forwarded the $750 million to its owners, a group of PE firms let by Bain Capital that had acquired BMC only seven months earlier.
Time is of the essence. Platinum Equity, which had acquired Volvo’s rental car division, waited only a week after closing the deal before sucking $262 million out that the company had obtained by issuing PIK debt.
So far this year, these already overleveraged companies have issued nearly $21 billion in junk-rated debt for the purpose of paying special dividends to the PE firms that own them — the most since the bubble of 2007, before it all blew up spectacularly.
Of that, $3.5 billion were these reeking PIK notes.
When a default occurs, the PE firms have the cash, and the lenders get stuck with largely worthless paper.
That’s what invariably happens when the Fed’s interest rate repression pushes investors out toward the thin end of the risk branch.
During normal times, no sane lender would go along with this without demanding a confiscatory yield.
The door would be closed to these sorts of glaring wealth-transfer shenanigans.
But these are not normal times.
This is the greatest credit bubble in history.
Most insatiable buyers leveraged-loan mutual funds
Among the most insatiable buyers of this stuff: leveraged-loan mutual funds, and by extension, retail investors.
But now, they’re getting cold feet, apparently, and for the first time, after 95 weeks in a row of inflows, they yanked money out, Bloomberg reported.
Not a panic just yet, but the flow has reversed. In the week ended April 16, they drained $276 million out of these mutual funds.
And these funds are starting to bleed.
LS&P/LSTA Leveraged Loan 100 Index, which sports a 5-year annual return of 10.5%, dipped into the red for April and might book its first monthly loss since the taper-tantrum turmoil last summer.
Mutual funds that hold leveraged loans are fearsome products.
They entice investors with a little extra yield, but still less than an FDIC insured one-year CD used to pay in the pre-crisis days.
That’s how far the Fed has pushed it.
But these loans are even less liquid than corporate bonds.
Unlike bonds or stocks, they’re not regulated.
They’re traded the old-fashioned cumbersome way, via email or even the phone, involving complex paperwork that may take weeks to complete.
It’s not easy to transfer a loan.
And when belatedly spooked investors start selling these mutual funds, fund managers are forced to dump loans into a market where liquidity just evaporates without notice.
Prices plunge on the sales that do go through — and those who get out first, bleed the least.
Yet, former Fed Chairman Ben Bernanke doesn’t regret any of the Fed’s actions, he said, except not explaining them to the people.
They “really don’t understand why we did what we did,” he said.
But there are a few people who do understand.
Read.... Fed’s Wealth Effect: Richest 200 Moguls Made $13.9 Billion Today
This article on with links — click here
Copyright © 2011-2014, Wolf Richter. All rights reserved.
US commercial Bank Loans Leases Bank Credit 2013 to 2014 - Biggest Credit Bubble in History Runs Out Of Time.

Photo: FRED
Chart Is A True Picture Of The Bank Credit Bubble In America, Now Bigger Than The Last One — click here
TOTAL DISASTER! Obama’s Legacy… $7.917 Trillion Added to the National Debt, Democrats Lost More than 1,000 Seats, 10.7 Million More Use Food Stamps…
Obama criticized President Bush’s deficit spending July 3, 2008:
“The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents — 43 added $4 trillion by his lonesome.
“So we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child.
“That’s irresponsible.
“It’s unpatriotic.”
Obama disaster   click here
If a country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP.
Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP.
GDP is more attractive for politicians in countries with increasing national debt and decreasing assets.
The United States GNP for 2013 was 16.188 Trillion US dollars
David M. Walker, Comptroller General of the US and head of the Government Accountability Office, in his December 17, 2007, report to the US Congress on the financial statements of the US government noted that "the federal government did not maintain effective internal control over financial reporting (including safeguarding assets) and compliance with significant laws and regulations as of September 30, 2007."
The US government cannot pass an audit.
The GAO report states accrued liabilities of the federal government "totaled approximately $53 trillion as of September 30, 2007".
The estimated net worth of all Americans including all business is about $47 trillion, reducing and increasing as property and company value reduces and increases.
US public debt historyInterest paid per year
July 1st 1914
July 1st 1919
June 28th 1946
September 29 1989
September 30 1992
February 23 1996
March 14 2002
February 18 2004
October 18 2005
March 16 2006:   Senate approves 52-48
Nine trillion debt limit
October 1 2007:  Senate approves 53-42
9.815 trillion debt limit
July 30 2008:
Bush signs Housing and Economic Recovery Act of 2008
H.R. 3221 raises national debt ceiling to $10.6 trillion
The US Debt Limit was increased from $10.615 trillion to $11.315 trillion effective October 3, 2008.
The debt limit was raised for the third time in less than a year with the passage of American Recovery and Reinvestment Act of 2009 on February 13, 2009 (ARRA; H.R. 1)
Signed into law on February 17, 2009 (P.L. 111-5), the debt limit was increased to $12,104 billion
An end-of-session vote in December 2009 increased the debt ceiling by $290 billion set at $12.394 trillion.
12 February 2010 Obama signed a law increasing the debt limit from $12.394 trillion to $14.294 trillion.
August 1, 2011 when a stop-gap measure of four hundred billion was passed by Congress biding new 'Super-Congress' legislation.
The Debt Limit was increased from $14.694 trillion to $15.194 trillion effective September 22, 2011.
Debt Limit was increased to 16.394 trillion on January 27, 2012
A limit of $16.394 trillion a stop-gap measure passed the U.S. Senate January 31, 2013
By Act of February 4, 2013, the Statutory Debt Limit has been suspended and shall not apply for the period beginning February 4, 2013 and ending on May 18, 2013.
On May 19, 2013 the debt ceiling was raised by $306 billion.
On January 16, 2014, Congress passed a $1.1 trillion appropriations bill that is expected to keep the federal government funded until October 2014.
By Act of October 17, 2013, the Statutory Debt Limit has been suspended and will not apply for the period beginning October 17, 2013 and ending on February 7, 2014.
February 15, 2014 a bill suspending the debt ceiling until March 15, 2015 was signed by U.S. President Obama, after the House and Senate had passed the bill February 12, 2014
The present debt is twice the outstanding debt subject to limit at the end of fiscal year 2007.
The U.S. government has surpassed the statutory debt limit suspension date ending set as of March 15, 2015 with no action.
President Obama signed a budget bill July 19, 2018 due to expire March 2017.
This will raise the national debt ceiling from $18.5 trillion to $20 trillion, putting the US debt at almost twice the level it was when Obama first took office.
The federal debt limit has been suspended since late 2015, but the law is set to be reinstated on March 16 2017.
Immediately the current debt limit of $20.1 trillion will be breached, according to calculations by the Bipartisan Policy Center.
July 19, 2018, President Donald Trump signed a law to suspend the debt ceiling until December 8 2018. The Treasury can now borrow freely till that date.
U.S. Debt to 2017
US debt surpasses historical $20 trillion
Top 300,000 collectively taking as much money annually as total annual incomes of 150 million Americans
Not seen since 1928 — shortly before Depression
In a thinly-veiled rebuke to the US Federal Reserve, The Bank for International Settlements said central banks were starting to doubt the wisdom of letting asset bubbles build up on the assumption that they could safely be "cleaned up" afterwards
Barack Obama Crime Boss
Escalating Military Spending — Income Redistribution in Disguise
Debt to the Penny
U.S. Debt   Iraq-Afghanistan Wars   2006 — 2007
Carnage on Wall Street as loans go bad
Over time I was increasingly shocked by the speed and ease with which many intelligent and seemingly competent members of the Council on Foreign Relations appeared to eagerly justify policies and actions that supported growing corruption
BIS warns of Great Depression
US Income Gap Widening Significantly
What are credit derivatives?
U.S. Debt   Iraq-Afghanistan Wars   2003 — 2005
Don't Confuse the Jobs Hype with the Facts
The trade deficit is being financed by turning over the ownership of US assets and future income streams to foreigners, making Americans forever poorer from the loss of accumulated wealth
Everyone else is a loser
The US is bankrupt!
       Afghanistan — Western Terror States: Canada, US, UK, France, Germany, Italy       
       Photos of Afghanistan people being killed and injured by NATO     
The Iraq War — complete listing of articles, includes images
       Cowardly attacks by air killing men women and children in their homes, often never seeing those they kill as the drones or aircraft fly back to the cowardly bases       
       If they kill only the husband, see how they care for the family they have destroyed       
       Afghanistan — Western Terror States: Canada, US, UK, France, Germany, Italy       
       Photos of Afghanistan people being killed and injured by NATO     
US soldiers committing suicide Afghanistan Iraq — Most Recent
Psychologist Pete Linnerooth was one of three who were part of a mental health crew in charge of the US 2nd Brigade Combat Team, 1st Infantry Division in the Baghdad area of Iraq.   Pete Linnerooth committed suicide by turning a gun upon himself in January of 2013
Veterans kill themselves at a rate of one every 80 minutes.   More than 6,500 veteran suicides are logged every year — more than the total number of soldiers killed in Afghanistan and Iraq combined since those wars began.
Mary Coghill Kirkland said she asked her son, 21-year-old Army Spc. Derrick Kirkland, what was wrong as soon as he came back from his first deployment to Iraq in 2008.   He had a ready answer: "Mom, I'm a murderer."
A military base on the brink
As police agents watched he shot himself in the head
Murders, fights, robberies, domestic violence, drunk driving, drug overdoses
US soldiers committing suicide Afghanistan Iraq II
U.S. Soldier Killed Herself After Objecting to Interrogation Techniques
Private Gary Boswell, 20, from Milford Haven, Pembrokeshire, was found hanging in a playground in July
She is Jeanne "Linda" Michel, a Navy medic.   She came home last month to her husband and three kids ages 11, 5, and 4, delighted to be back in her suburban home of Clifton Park in upstate New York.   Two weeks after she got home, she shot and killed herself.
Peterson refused to participate in the torture after only two nights working in the unit known as the cage
     United States Numb to Iraq Troop Deaths       
     All papers relating to the interrogations have been destroyed     
      We stripped them and were supposed to mock them and degrade their manhood     
US soldiers committing suicide Iraq Vietnam
More atrocities — Lest we forget — Ahmed and Asma, story of two children dying
All with U.S. Money:
More on the building of the wall.        US and Israel's use of chemical agents 
All with U.S. Money:
Israel agents stole identity of New Zealand cerebral palsy victim.
(   July 15, 2004)   The Foreign Ministry will take steps towards restoring relations with New Zealand.   New Zealand Prime Minister Helen Clark today announced she was implementing diplomatic sanctions after two Israelis were sentenced on charges of attempting to obtain illegal passports.   Despite Israeli refusal to respond to the accusations, the two are labeled in the New Zealand media as Mossad agents acting on behalf of the Israeli intelligence community.

Foreign Ministry officials stated they will do everything possible to renew diplomatic ties, expressing sorrow over the “unfortunate incident”.
Darfur pictures and arial views of destruction — 2003 — 2005
                 October 2004 photos
Follow the torture trail...
                 September 2004 photos
Should the dam break, as attempts are being made in Saudi Arabia
                  Photos July 2004
       The real Ronald Reagan       
       — Nicaragua, Guatemala, El Salvador, South Africa        
                  Photos June 2004
       The real Ronald Reagan       
       — Nicaragua, Guatemala, El Salvador, South Africa        
        When you talk with God        
         were you also spending your time, money and energy, killing people?         
       Are they now alive or dead?       
American military: Abu Gharib (Ghraib) prison photos, humiliation and torture
— London Daily Mirror article: non-sexually explicit pictures
                  Photos April 2004
The celebration of Jerusalem day, the US missiles that rained onto children in Gaza,
and, a gathering of top articles over the past nine months
                  Photos March 2004
'Suicide bombings,' the angel said, 'and beheadings.'
'And the others that have all the power — they fly missiles in the sky.
They don't even look at the people they kill.'
                  Photos February 2004
  US missiles — US money — and Palestine
                  Photos January 2004
Ethnic cleansing in the Beduin desert
                  Photos December 2003
Shirin Ebadi Nobel Peace Prize winner 2003
                  Photos November 2003
Atrocities — graphic images...
                  Photos October 2003
                  Photos September 2003

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