Welcome to 2011

But pretty much as I have predicted, things are moving at a fast-forward pace downhill.  The level of fraud and corruption that is being uncovered is breath taking.  Yet no one seems to notice, and even worse...care.   I just read that JP Morgan has another booming part of their business.  Food stamp debit cards.  That's right they oversee the current food stamp debit card system, and generate a nice profit for every new person that files for unemployment.  This just goes to show you how much these guys are in bed with the government.  Just read today that another Goldman Sachs executive is now a chief supervisor at the Securities and Exchange Commission.  This is a prime example of putting the fox as guard over the hen house.  So much for financial oversight, we are getting dramatically less by the day.

Another pretty disturbing discovery is the way they are running the QE program, and exactly how the banks are massively profiting from this operation.  The Fed has about 17 primary dealers it will loan money to/from, sell/buy treasuries to etc.  These range from like 3 to 8 billion dollars in sales and purchases a day, to and from these specific dealers.  These dealers include the likes of Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley etc.  Get this.  These banks make tens of millions of dollars each day in commissions, depending on the size of the purchases.  This is the equivalent of our government handing over what is now reported as over a billion dollars of taxpayer money to these banks for participating in the Fed's POMO(Permanent Open Market Operations) i.e. QE 2.  It's funny how many terms these guys come up with for debt monetization, to fool the public.  And even not so funny is the fact that these primary dealers know that as yields are rising, they lose money from holding onto the securities.  So now they flip them immediately to secondary dealers for another profit.  Things are getting out of control.  And it is believed that an eventual complete lack of faith in America's uber corrupt financial system will be the downfall of our once great country.  China will emerge as the new world leader, and it's something that will will be forced to expect, and prepare for. 

Welcome to 2011.