

September 29, 2008

Elaine Meinel Supkis



The Sphinx just released over $600 billion to all the worlds banks! Indeed...at the hearings in Congress that I attended at the very end, everyone made some sort of strange mention of '$600 billion stuck in LONDON.' I noted this down and got very excited. The Lehman Brothers executive sitting next to me had also mentioned this sum, too! So I have been watching the news for mention about this and here it is: Bernanke got his $600 billion to flood world banks with dollars because dollars are disappearing. This is the Derivative Beast eating money. I am certain of this.



Fed Pumps Further $630 Billion Into Financial System

(Bloomberg) -- The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression. The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities. The Fed's expansion of liquidity, the biggest since credit markets seized up last year, comes as Congress prepares to vote on a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone. ``Today's blast of term liquidity will settle the funding markets down, and allow trust to slowly be restored between borrowers and lenders,'' said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. On the other hand, ``the Fed's balance sheet is about to explode.''



I scanned in the notes I made last Friday. This was the very last page of my notes that day:



Follow the money, they always say! Well, this $600 billion should be followed: it went across the planet. The tiny window the Fed created as an 'experiment' which was not supposed to be scary, that tiny window into the Outer Darkness, this small hole into the Cave of Wealth and Death has been expanding rapidly since it first was poked into the cave's wall.



All the reserves of the Federal Reserve are now gone. The ONLY way the Fed can flood the world with dollars is to beg all the other banks to give us dollars for us to give them. Got that? HAHAHA. This is how the Outer Darkness operates! Up is down and in is out. Everything is the opposite. So the Federal Reserves, which is neither federal nor has reserves, is now the conduit for flash flows of money created out of thin air....by our trade rivals.



I hammer on the issue of trade because money is just another way of saying, 'Trade'. This is why these money games the Fed has been frantically playing are called 'Swaps'. This is basically a 'bait and switch' deal which will turn into a 'switch and steal' operation. The crazy, out of balance world trade system is being kicked back into action via these fraudulent deals between the rival central banks and our foolish Federal Reserve bankers. The game here is to not let the US people know that the jig is up. That we can't run trillion dollar trade or budget deficits!



Indeed, it is not mere irony that this sum we just got via a 'swap' in London is pretty much exactly the size of our trade deficit. This is not coincidence. Or rather, in the Outer Darkness, coincidence is magic and magic is all about having things merge and then in a loud bang, flip into a new system, a new shape, a new reality.



The Derivatives Beast is the darling son of the goddess, Depression who was suckled by her sister goddess, Inflation. He is eating up all our money. The actual dollars. Not merely content with devouring equity values, he is now literally eating dollars. This is why the dollars have to now pour out of our entire system only to disappear. This money is needed to sustain global unbalanced trade. But it vanishes before it can be passed around the planet.



Lord only knows what the Dragon of China is doing with its vast, huge dollar reserves! This $630 billion infusion is one third the size of China's FOREX dollar reserves. Recently, I sat down and calculated Europe's dollar reserves and it was over $600 billion by about $50 billion. So I am also assuming this injection was actually Europe letting the Federal Reserve 'borrow' their dollar reserves!



This is ASTONISHING if it is true. It is another sign that the whole concept of a floating currency with the US as the reserve currency has now officially collapsed! Now we will see a free-for-all as our trade rivals spar to see who replaces the US as a reserve currency.



Meanwhile, the Derivatives Beast burps.



Oil, Metals, Crops Drop on Concern U.S. Bailout Plan May Fail

(Bloomberg) -- Crude oil fell the most in almost seven years, leading commodities including copper and corn lower, on concern the U.S. plan to spend $700 billion propping up America's banks will fail to avert a global economic slowdown. Oil slumped more than $6, helping send the S&P Goldman Sachs Commodity Index to a 5 percent drop. The agreement between Treasury Secretary Henry Paulson and congressional leaders failed to cut short-term interest rates. Commodities also dropped after the pound fell the most against the dollar in 15 years and the euro weakened as European banks were bailed out. ``Oil is down because the economy is very fragile,'' said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. ``It's great that they were able to come to an agreement in Washington but that's no guarantee that there will be no more bank runs or that the economy will recover anytime soon.''

In depressions, money vanishes. The banking gnomes have insured that this will be the case. Note that we just went through hyperinflation. My husband said, 'This can of soup last year was 99¢ on sale. Today, there are no sales and it is now over $6 a can!' This is super-hyper inflation! How dare the Fed pretend inflation is under 3%?



The mythological creatures who control all potential wealth laugh at all this. They know that they are all forces of nature that are unstoppable once they are launched. The trajectories of their actions are predictable because they are natural. With tremendous effort, central bankers can delay the inevitable but if they do this, they make it worse since Time is Money.







Time is money is an important concept. Why is this? Simple: we are MORTALS. We die! We have limited time on this lovely planet we call 'earth'. We must do our best during the span of our hours to do the right thing. We have only one chance on this planet. So we must focus on using this time carefully and well. The value of this time is of tremendous interest to the denizens of the Cave of Wealth and Death. Note the last word! They are death gods.



We all end up visiting them in this garb. Not as givers of wealth but takers of life. The glory of being human is, we can see the gods and know their actions, habits and natures. Because of this, we can enter the Cave of Wealth but if we are smart, we do so as sparingly as possible. For they take back every bit of this wealth when we die. Or worse, they get us into situations where we kill each other before stumbling into the Cave of Death sectors.



Lehman's `100% Principal Protection' Means Pennies for Notes

(Bloomberg) -- A brochure pitching $1.84 million of notes sold by Lehman Brothers Holdings Inc. in August, a month before the firm filed for bankruptcy, promised ``100 percent principal protection.'' Buyers had ``uncapped appreciation potential'' pegged to gains in the Standard & Poor's 500 Index, the brochure said. In the worst case, they would get back their $1,000-per-note investment in three years. Only the last in a list of 15 risk factors mentioned the biggest danger: ``An investment in the notes will be subject to the credit risk of Lehman Brothers.''



This was pure fraud. All fraudsters must, by law, append a fine print note about risk. Here is the SEC filing for these splendid '100% Principal Protection' scams:







I must say, it should be drilled into everyone's head in their youth that there is NO SUCH THING AS A 100% PRINCIPAL PROTECTION SYSTEM. Period. This is because it can be wiped out by the gods. All they need to do is drop an asteroid on us, just for one example. Or have the sun go nova. Or have an ice age begin suddenly. The possibilities are endless. When Napoleon began his Grand Armee invasion of Russia, he thought he was very clever.



But way off in Indonesia, Mt. Tamboura decided to blow up! The weather went from mild and normal to one of the coldest winters on record. The following year here in New England was called 'The Year Of No Summer' and many people died of the cold and hunger. In a matter of days, the weather in Moscow went from warm to bitterest cold! And Napoleon lost his army and his throne.



Con artists always like to talk about 'a sure thing!' I always ask them, 'Why share this with little old me?' They then mutter that they need cash! Well, the only sure thing is, when you hand over cash, there is a good chance, you won't see it again. And like Goldman Sachs or Lehman Brothers or any of these con artists, they will mutter something about the weather suddenly turning cold or the horse they bet on went lame, etc. Arrest them. Conning people is supposed to be illegal.



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