- Double Barreled Hidden Q.E. to Infinity
by Jim Willie, www.goldenjackass.com, via http://www.goldseek.com/
We were just treated to a fake official rate hike, and it was cleverly executed. The recent supposed USFed rate hike was a gigantic fraud, a misdirection, a clever ploy, and an act of extreme desperation. We were told of an official 25 basis point interest rate hike. But a hike of 0.25% is nowhere to be seen. The reality is that the USFed is so strapped, so deeply under siege, so overwhelmed, that it requires urgent help from the USDept Treasury. So they have expanded QE to become Double Barreled Hidden QE to Infinity. It has an important feature now, with national security stamped on it. This is truly the end game for the USDollar. Big thanks to Rob Kirby and EuroRaj on my colleague team for leading the way and shining the spotlight. Their abilities to see through the maze, smoke, mirrors, and din is impressive.
Consider the many points, which can be connected. As they say, connecting the dots can lead to conclusions more clearly, when the dots display a recognized picture. The deception was well organized, well planned, well delivered, and well done generally. Most financial analysts only read the headline, then gobble the false message like a dog eating his own vomit. Most traders only read the headline, and look for quick profit while anticipating the moves by the dullard masses. Best to look for the reality, and plan for the long run survival. Take a closer look at the developments within the USTreasury market where private accounts have emerged in recent months to purchase the referenced inventory of USTreasurys that China and others are dumping.
NO RATE MOVEMENT & INVERSION SUDDENLY
The effective Fed Funds rate has not risen by 25 basis points. More like 10 to 15 bpts, depending upon the day. In fact, the Fed suddenly finds itself in an awkward position, with an inversion of the Fed Funds rate versus the 3-month USTreasury Bill. The inversion has been constant since the supposed rate hike, and a billboard message of the sham lie. The proof of the pudding is in its taste, not from the whiff of its billboard description and advertising. Ooops! In reality, the USFed is pumping liquidity into the system via temporary expansion of the balance sheet, using hidden channels and accounts, the propaganda grown as loud as ever. Remember in 2009, when the august bank cabal hive assured the near zero percent official rate would last only a few months. The Jackass forecasted it would be in place forever. Check!
HIDDEN HUGE HAND IN USDEPT TREASURY
The big Wall Street players run the USTreasury Bond market, like JPMorgan Chase, Goldman Sachs, Citigroup, even to some extent Bank of America and Morgan Stanley. They must be on the lookout for massive USTreasury dumping by the cast of creditor characters. Almost nobody is buying the USGovt debt at a time when the annual deficit continues to ring in at $1 trillion. Yet the bond yield is steady in the 2.0% to 2.4% range. When China disposed of $250 billion worth of USTBonds in August, September, October, it had to be soaked up. Mission Accomplished with no detectable rise in the TNX 10-year bond yield. Otherwise the USGovt debt market would resemble Greece, since the fundamentals are just as wretched. The strong hand doing the purchases en massive volume is the USDept of Treasury itself, using the Exchange Stabilization Fund. The ESF was created in 1934 for the expressed purpose of protecting the USDollar.