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Goldfinger

Desperate Re Inflation Attempt By The U S Treasury

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They're crapping their pants and now they try to re-ignate this whole game. To what success?

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Oct. 12 (Bloomberg) -- U.S. Treasury officials are talking with Citigroup Inc., JPMorgan Chase & Co. and other banks about a plan to jump-start the asset-backed commercial paper market.

Policy makers are concerned that investors remain reluctant to purchase the paper even if the loans that back them are sound, said a U.S. government official, who declined to be identified.

...

``SIVs are all losing money right now,'' said Chris Low, chief economist at FTN Financial in New York. ``If any one of the conduits dumps'' their holdings of distressed securities, ``it could trigger selling by the others as well, and that's the scenario they're to avoid,'' he said.''

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I can't see the problem. Why don't they just print a shedload of greenbacks and flood the market with liquidity.

Problem solved.

My fear is that whatever they intend to do, they'll make it only worse.

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I can't see the problem. Why don't they just print a shedload of greenbacks and flood the market with liquidity.

Problem solved.

For the same reason that the BoE doesn't just print up pounds so all the homeowners can just pay off their mortgages in full.

It's such a large sum of money that you would end up like Zimbabwe in no time flat.

and if you did survive the wave of inflation, you would still be in the same position you were before.

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They're crapping their pants and now they try to re-ignate this whole game. To what success?

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Great Crash 2 has many many more stages to go through yet. The proverbial tip of a very large turd has hit the fan but the bulk of the log has yet to pass through.

Someone is going to pay for 300% worth of HPI. Our national wealth is said to be 60 trillion and 60% of that is house prices. Those house prices are backed by pieces of paper* which no one understands.

That House price "wealth" is about to decrease by 50-60% which some might say will impact our standard of living for generations to come.

________________

IOUs of one sort or another--not currencies which are another form of IOU or metals which are yet another form of IOU--you sell gold to Mr. Smith for _________ (fill in blank with the piece of paper of your choice).

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OK, so, they're doing it.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Oct. 14 (Bloomberg) -- Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. will announce as soon as tomorrow that they are establishing a fund of about $80 billion aimed at reviving the asset-backed commercial paper market, said people familiar with the plan.

The fund, to which other firms will probably contribute, will buy some assets from structured investment vehicles, or SIVs, the people said. SIVs are units set up by banks to finance purchases of assets including subprime mortgage debt.

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The proverbial tip of a very large turd has hit the fan but the bulk of the log has yet to pass through.

Classic :lol::lol:

I thought that it had been contained. looks like the major players are scrambling around behind the scenes to delay the inevitable

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This is it. This is the real thing.

Much more than subprime is at stake.

The system is coming down, they know it and they can only delay it, not prevent it.

Doesn't look good for the Cartel at the moment. I wonder how much gold they have left, and whether they want to dump more or have already given up.

Edited by Goldfinger

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