weekend special – part 1
1. Something was very strange in Fridays trading action – first the sudden sell off again in stocks and the bonds were fallen sharply from new highs that did not make any sense accept the fact that for technical reasons I explained earlier the bonds would make a top around those levels. What I am saying is that again insiders knew about this and traded in big size – this is how it is but the markets and that is a fact are driven by pools who have information always before others or the public.
The consequences will be very severe over time as I have explained it in earlier posts as losing reserve currency status is very serious business and on top of that twittering president and the other corrupt bunch in DC have brought the USA into a Banana Republic status anyway with that disgusting negotiations about the debt ceiling. Mankind in general has developed a bad attitude as lying and stealing has become a common place and the worshiped God is money. The dark force or the devil seems to win right now but there is still hope as the uprises in the Middle East are just the start – the next 3-4 years will change the world as the people will not let the ruling elite who plunder the governments and the people get away with it as Uranus( in Aries) will square Pluto (in Capricorn) that means the people will clash with authorities in a fierce way. The only way to stop that from the perspective of the elite is to start a global war.
And Just Because…. “Is There A Risk The US Could Lose Its AAA Rating?” Tim Geithner: “No Risk”
Submitted by Tyler Durden on 08/05/2011 – 20:27Bond Congressional Budget Office Debt Ceiling default Demographics France GermanyGross Domestic Product Medicare Monetary Policy ratings Recession recovery Reserve Currency Sovereigns Structured Finance
Well, so much for the conspiracies. S&P has just released a scathing critique of the total chaos that this country’s government has become. “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year’s wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.” What to expect on Monday: “ it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.”And why all those who have said the downgrade will have no impact on markets will be tested as soon as Monday: “On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors.” Translation: unpredictable consequences: you are welcome!