Wednesday, Aug 26, 2009
The final phase of the financial crisis to begin
LA Times: Judge orders Fed to release documents detailing bailout loan programs
Manhattan Chief U.S. District Judge Loretta Preska on Monday ruled in favor of a Bloomberg News lawsuit that seeks to force the Fed to disclose details about the emergency lending programs it set up to arrest the financial system breakdown last fall. She gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.
Posted by sold 2 rent 1 @ 11:09 AM (936 views) Add Comment
30 Comments
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1. sold 2 rent 1 said...
Jim Willie has written a few articles on marketoracle about the "US bank holiday" that is scheduled for September.
http://www.marketoracle.co.uk/UserInfo-Jim_Willie_CB.html
This court order could be the trigger that closes the US banking system so 500-1000 bankrupt small banks get bought up by the big boys (with taxpayers money of course)
As for gold, I am looking for a huge breakout to come in the next 2 weeks, but then the gold price suppression boys to beat the price back down again by late September.
As for a stocks crash this October, Armstrong notes that there is always a major bottom 31.4 months after a major top. Seeing as the banking index topped out on 27 Feb 2007, we could see a final low around early/mid October 2009.
2. sold 2 rent 1 said...
If the financial crisis is solved by printing trillions of dollars then this paves the way for a western world currency crisis set to hit in March 2010, when the gold/silver mania reaches a peak.
3. will said...
I have been waiting for this ruling with interest. The Fed's refusal to release this information hasn't given any confidence to investors.
Now the banks hardest hit by the downturn will fail as investors ditch the stocks. This should have been allowed to happen at the beggining of the crises as tax payers money will be lost as we witness these failures. The Fed have been trying to bury bad news but will ultimately pay the price.
4. flashman said...
"Armstrong notes that there is always a major bottom 31.4 months after a major top"
Is there????
5. uncle tom said...
Oh I get it - because the gold price hasn't kicked off like everyone was predicting, there have to be some mysterious 'gold price suppression boys' at work...
Oh look! - there goes a flock of pigs..
6. techieman said...
YES ALWAYS:
S2R1 - here is a song for you and your obsession with the yellow stuff. Sorry im really not taking the p1ss it just tickled me!
Always and forever
Each moment with you is just like a dream to me
That somehow came true
And I know tomorrow will still be the same
Cos' we've got a life of love that won't ever change
And ev'ry day love me your own special way
Melt all my heart away with a smile
Take time to tell me you really care
And feel sad tomorrow together
I'll always love you, forever, forever
There'll always be sunshine when I look at you
Something I can't explain, just the things that you do
And if you get lonely, phone me
And take a second to give to me the magic you make
And ev'ry day love me your own special way
Melt all my heart away with a smile
Take time to tell me you really care
And feel sad tomorrow together
I'll always love you, forever, forever
7. techieman said...
spose it should be "smelt all my heart away" ?
8. mountain goat said...
Gold broke my heart when it started flirting with the sexy stock market bear rally, a fling doomed to end in tears for them both.
9. mountain goat said...
I think the court ruling is significant and dangerous. Tying the Feds hands a little makes the banking system very vulnerable. With a 50% rally from March the Fed can't say "we are in a crisis now, let us keep our secrets".
10. debtfree said...
“GOLD MANIPULATION FOR DUMMIES” - or in this case 'Uncle Tom'
1. MOTIVE:
• US Government: To artificially keep interest rates down by deceiving the bond markets about inflation, and thus the gold price. In short, lower gold price = lower inflation = higher stock market = higher reelection chances.
• US Government: To artificially strengthen the US dollar relative to other currencies. Clinton’s “Strong Dollar Policy” was suppression of gold price. In short, lower gold price = higher US dollar = higher stock market.
• Some Bullion Banks: To provide cheap source of capital to earn huge income, providing gold price is kept low.
2. MEANS:
Background: The gold price suppression scheme was actually put down on paper, in public, by Harvard Professor Lawrence Summers, before becoming Treasury Secretary under Clinton. He wrote of the inverse relationship between the gold price and interest rates, and concluded that government could keep interest rates low by suppressing the gold price.
3. PROOF:
#1. US Supreme Court: “Under the Sherman Antitrust Act, a combination formed for the purpose and with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity in interstate or foreign commerce is illegal per se”. Put simply, while gold leasing and futures is legal, it is illegal to do so for manipulation purposes.
Refer www.gata.org/howe_complaint.html (Sections 1, 80). So ESF illegally manipulates gold price.
#2. The US Treasury at its website denies that the ESF has conducted a gold swap in the last 10 years. In addition, a court filing on behalf of Secretary O’Neill specifically denied that the ESF had conducted gold swaps after 1978: Refer www.zealllc.com/files/HvBD0013.pdf (page 3, footnote 2.)
This is contradicted during a confidential US Fed meeting, where there was admission of dealing in gold swaps.
Refer: http://groups.yahoo.com/group/gata/message/733 (p69 of meeting transcript, or p72 of pdf file)
For more on admission of existence of ESF, refer www.treas.gov/offices/international-affairs/esf/index.html
#3. Alan Greenspan, at a testimonial at a 1998 House Banking Committee hearing: “Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”
Refer: www.gata.org/howe_complaint.html (Section 38)
#4: In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999: George said "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K." Refer: www.gata.org/bofi.html
#5. The infamous Bank of England gold sales, where the gold went to the LOWEST bidder, not the highest bidder: ".... Applicants whose bids are accepted will be allotted gold at the lowest accepted price.”
Refer www.bankofengland.co.uk/markets/forex/goldinfmem.pdf (page 9, “4. Acceptance of Bids…”)
Extraordinary! But wait, there is more:
• advertising the sales, which noone ever does (unless they want less money for their gold)
• drawing the sales out over a period, rather than just one single auction
Refer: www.gold-eagle.com/gold_digest_01/hamilton031601.html
#6. After years of denials, Barrick Gold admit that they and their banker J P Morgan are involved in manipulation of the gold price, and/or they are agents of central banks. A US court judge has thrown out their dismissal appeals.
http://groups.yahoo.com/group/gata/message/1538 http://groups.yahoo.com/group/gata/message/1653
Barrick then announce cessation of hedging, after extolling its virtues 1 day earlier. Many say it’s due to Barrick going $16m more in debt for every $1 rise in gold price. http://groups.yahoo.com/group/gata/message/1768
#7: Why won’t World Gold Council (WGC) answer letters/emails worldwide regarding manipulation? The 2 biggest contributing gold producers to WGC are Barrick Gold and AngloGold. These 2 companies are disliked in the gold industry, because they are the biggest hedgers, and therefore provide much gold to the gold price manipulation scam. For Barrick, refer Proof #6. For AngloGold, why is Frank Arisman on the board of AngloGold when he is also an officer of JP Morgan? There has been an explosive growth in gold derivatives on Morgan's books in recent years, which has driven the gold price down. Clearly there is a huge conflict of interest there.
#8: Royal Bank of Canada admits there is gold price manipulation, then oddly 2 days later said it was a secret:
http://groups.yahoo.com/group/gata/message/1149 http://groups.yahoo.com/group/gata/message/1153
#9. One heavy hedger Sons of Gwalia, Australia, has major financial problems. Refer:
http://groups.yahoo.com/group/gata/message/1439 http://groups.yahoo.com/group/gata/message/1225
#10: June 2004: Deputy Chairman of Central Bank of Russia said "major banks" are suppressing gold price.
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20041004005442&newsLang=en
#11: October 2004: Bank for International Settlements admits that banks are the big gold shorts:
http://groups.yahoo.com/group/gata/message/2451
#12. IMF has directed CB’s not to disclose how gold is leased/swapped, only total reserves (proof below).
IMF have denied this, “This is not correct: the IMF in fact recommends that swapped gold be excluded from reserve assets.” Refer http://www.gata.org/bofi.html (search “correct”).
However, numerous member countries/entities have proven the IMF has lied ie
• Philippines: “Beginning January 2000, in compliance with the requirements of the IMF's reserves …, gold under the swap arrangement remains to be part of reserves and a liability is deemed incurred corresponding to the proceeds of the swap.” Refer www.bsp.gov.ph/statistics/sefi/fx-int.htm (search “swaps”)
• The Central Banks of Portugal, Finland & Italy confirmed in writing that swapped gold remains a reserve asset under pertinent IMF regulations. The staffs of the central banks of Canada, Ecuador, Finland, Holland, and Portugal have also confirmed this. Refer www.goldisfreedom.com/IMFgold.htm, (search “Finland”)
• European Central Bank: “Following the recommendations set out in the IMF operational guidelines of … developed in 1999, all reversible gold transactions, including gold swaps, are recorded as collateralised loans in balance of payments and international investment position statistics. This treatment implies that the gold account would remain unchanged on the balance sheet.” http://solutions.synearth.net/2003/02/21
The German Bundesbank (the secret “swapper” of gold with US) lists "Gold and Gold Receivables (loans)" as a one line item on its balance sheet. This deception conflicts with GAAP, and thus German banking law. So, from their published financial statements there is no way to determine how much gold Germany holds in its vaults.
Clearly deceptive accounting, countenanced by the IMF has allowed official sector gold to hit the market without a corresponding drawdown on the balance sheets of central banks. This has made it impossible for analysts to ascertain the exact size of official sector gold loans, swaps and deposits. The unwillingness of central banks to provide even a minimum level of transparency suggests that total gold receivables are substantially larger than the accepted industry figure of ~5,000 tonnes. Refer http://groups.yahoo.com/group/gata/message/903
11. sold 2 rent 1 said...
flashman,
DJIA 1929 - 34 months peak to trough
Nasdaq 2000 - 30.3 months peak to trough
Nikkei 1989 - 31.6 months peak to trough
Of course if all 3 figures were 31.4 months exactly then everyone would believe.
The time will come in the next 18 months when the Armstrong cycle will be accepted as "valid"; when that happens the models will stop working - it is a lovely system.
12. debtfree said...
Gold manipulation for Uncle Tom
"central banks and bullion banks are so involved with it that the gold market may be less than free" the deputy chairman of the Bank of Russia said.
Yes UT, the deputy chairman of the Bank of Russia.
The central banker acknowledged that the great increase in the use of derivatives and central bank leasing of gold have depressed its price in recent years.
Hear that ?
All the best.
13. flashman said...
debtfree:
“lower gold price = lower inflation = higher stock market = higher reelection chances”.
“lower gold price = higher US dollar = higher stock market”.
I am struggling with the meaning of these equations. Are they saying that lower gold prices have the power to influence inflation, the stock market and the US Dollar? Wouldn't it also follow that these formulas imply that gold prices have the power to influence wheat crops, technological breakthroughs, oil disruptions etc etc?
It would mean that gold has some mystical pull on the world or that to control gold is to control destiny.
I am absolutely sure that I’ve got the wrong end of the stick????
14. techieman said...
so we need to buy some Debtfree? And Silver and the other precious metals?
15. flashman said...
str1: Thanks for that. It's a small sample set but I suppose there aren't many tops and bottoms of the magnitude that you are quoting. I have the soulless heart of a mathematician so the tiny data sample and the variations within that data set would make me put it down to coincidence.
I do however like the idea of a model breaking down once it is accepted. That very much gels with my own experience
I hope you wife and child are doing well. I have a one year old, so I understand the desire to predict the future
16. debtfree said...
flashman,
Yes, you have :o)
Gold is like a thermometer for the dollar. Here's a statement that says it all:
"At Royal Bank of Canada, we trade gold bullion off our foreign exchange desks rather than our commodity desks," says Anthony S. Fell, chairman of RBC Capital Markets, "because that's what it is – a global currency, the only one that is freely tradable and unencumbered by vast quantities of sovereign debt and prior obligations.
"It is also the one investment and long-term store of value that cannot be adversely impacted by corrupt corporate management or incompetent politicians," he adds – "each of which is in ample supply on a global basis."
In short, says Fell, "don't measure the Dollar against the Euro, or the Euro against the Yen, but measure all paper currencies against gold, because that's the ultimate test."
By supressing the price you are artifically creating a stronger dollar which I'm sure you can understand how this effects stocks and inflation.
Cheers
17. debtfree said...
@14 - techiman
you do what you gotta do.
I'm just trying to point out that other respected people have also mentioned gold price supression. There is no need to shoot S2R1 down with pig flying comments because he mentions the same.
All the best
18. uncle tom said...
Debtfree,
This is utter twaddle. Conspiracy theorists, aided and abetted by vested interests, invent quotes and notions (or take them out of context) that are then endlessly copied, compiled and taken as gospel by gullible idiots like you.
Gold has no economic relevance any more, it's a banking anachronism.
- Wake up!
19. debtfree said...
Uncle Tom,
I'm listening, but why are russia and china increasing their holdings of gold?
Are you saying that commentators on marketoracle and alike are just conspiracy nut jobs ?
What credentials do you have to make accusations that Russia Toady and other publications have vested interest in gold ?
Cheers
20. paranoia blue said...
I have masses of gold, and gold-related exposure. I don’t need to “wake up” re: an anachronism.
I sleep soundly, every night, and wake up bright and breezy every morning, without a care in the world. ATB
PS If you want “the opposite, with ulcers” - now is the time to “invest long” in the Market, I’m shorting most of the obvious “trash.”
The late great sweet Gene Vincent:
http://www.youtube.com/watch?v=N-JansNvGvs&feature=related
21. flashman said...
debtfree: Thanks for the explanation. I see where you are coming from but I think we differ on the extent to which gold can affect these things. If there is geopolitical tension, the price of oil will go up regardless of gold prices and the same is true of any number of things like wheat prices being affected by famine or glut. These things, in turn, affect the stock market and the dollar, so the link between gold and the dollar/stock market cannot be considered all encompassing (that's not to say there is no influence)
22. uncle tom said...
China has only 1% of its forex in gold, while Russia has about 4%. Compare that to the USA which has 79%. The UK, despite Brown's sell-off has about 19% of its forex in gold.
Russia bought 20 tons last month. Considering there's roughly 40,000 tons of gold out there, that's not exactly big potatoes.
Consider the case of Italy, which has an aging, shrinking population, and has no agenda for getting out of its economic mess. The French and Germans are getting ready for the inevitable Italian begging bowl, and there is already deep public opposition to an EU funded bail-out of Italy.
They'll want to see Italy sell the family silver before the charity starts, or more precisely, the gold - they still have 2,500 tons of the stuff.
- and that's just one country with an economic problem, and a fat piggy bank..
23. sold 2 rent 1 said...
UT,
"Compare that to the USA which has 79% in gold"
BTW there is no gold in the US.
Is there any gold inside Fort Knox, the world's most secure vault?
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5989271.ece
24. uncle tom said...
"BTW there is no gold in the US."
And Elvis is alive and well and living on Mars..
25. Smiling said...
blimey, all the lunatics are on a day trip today!
26. sold 2 rent 1 said...
Calleman model resonance bulletin.....
Ted Kennedy died yesterday on 25 August 2009
27 August 2009 resonates with 5 June 1968, the day Robert F. Kennedy was Assassinated.
The models are getting better and better
27. sold 2 rent 1 said...
UT,
"And Elvis is alive and well and living on Mars.."
You use a classic conspiracy theory debunking technique.
Distract and discredit........but no argument
Let's forget Elvis and the bus on the moon
Let's stick to the facts - the gold in Fort Knox has not been audited.
Why would something so valuable not be audited for so long?
Because it is not there.
28. uncle tom said...
This really is fruitcake day..
I'm off to London now, to a very nice restaurant in Covent Garden..
..enjoy the rest of the day!
29. debtfree said...
enjoy :-) i'm having dinner with elvis in fort knox.
30. debtfree said...
enjoy :-) i'm having dinner with elvis in fort knox which resonates with the day the knife and fork was invented.