Jim Willie wrote:
> Back to reality on US soil. Many reports have come to the effect
> that at the end of August, a financial breakdown is due, and a
> shutdown of US banks is planned. We await the trigger events with
> mystery and intrigue as overtones. Some on Wall Street, arrogant
> to the end, believe that widespread awareness prevents the actual
> unfolding of events. They are suffering from a terminal disease
> though, as they believe they are in control. They are not. The
> USGovt creditors are in control. The August Hat Trick Letter
> reports have identified five major factors pointing to a severely
> stressful period of time at the end of August and into September.
> The FDIC is scheduled to release its Second Quarter Report that
> could reveal up to 1000 banks expected to croak, surely enough to
> exhaust their rescue fund by between 20-fold and 100-fold. ...
> To be sure, many tripwires are laid out from the systemic
> complexity and lost control, not to mention haphazard design and
> frenzied defense. A massive juggling act is taking place, as US
> bank and political leaders are juggling more balls, and heavier
> balls with each passing month. The risk of accidents is rising
> exponentially from incredible backroom movement of massive funds
> to avert disasters on a weekly basis. WHEN IT COME THE ACCIDENTS,
> PLANNED EVENTS, OR UNEXPECTED RESPONSES TO MINOR DISTURBANCES
> WITHIN THE SYSTEM, TREMENDOUS COLLATERAL DAMAGE WILL ARRIVE, BUT
> THE PRECIOUS METALS WILL STAND TALL AND ENDURE EFFECTIVELY, EVEN
> THRIVE. See gold, silver, and platinum, at least. The broken parts
> and ‘bad apples’ are likely to be eliminated in a flash. We will
> see. People will be hurt, and life savings will take hits. Even
> communication lines will be interrupted. Power structures will
> dissolve. We are approaching historically unprecedented times. The
> signs are omnipresent, often ignored.
> My best sources of information report that some unexpected deep
> shocks are coming from USGovt creditor nations. They are simply
> fed up, frustrated, and astonished at the manner of lost control,
> spiraling debts, and blatant monetization amidst lies in denial of
> that same monetization. The USTreasury auctions now have domestic
> hidden elements, and global hidden monetization elements. ...
> Mainly what we witness is more channeled funds to the big banks,
> more coverage of credit derivative fires, and more announcements
> of bond support. See the $1.25 trillion support for Fannie Mae
> bonds, aka USAgency Mortgage Bonds. The Green Shoots have now been
> dismissed as a marketing ploy. The Stress Tests have now been
> dismissed as a marketing ploy. The Stimulus Plan has now been
> dismissed as a marketing ploy. The only USEconomic recovery will
> be a statistical recovery. A Jobless Recovery is a recovery for
> stocks and a redemption for the bankers. Main Street continues to
> be discarded.
>
http://www.kitco.com/ind/willie/aug132009.html