Did Bernanke Just Tell The Banks To Buy Even More Derivatives?

We know for certain that Central Banks are the enemy. We know for certain that the dollar will die. But we need to make educated guesses as to what the Banker Occupied Government in Washington is planning to do to us next. Ben Bernanke has just said that he plans to buy 40 billion dollars a month in Mortgage Backed Securities. He has bought trillions of dollars of these and other worthless assets from European and American banks. These purchases of fraudulent securities plus the assistance of Attorney General Eric Holder  has kept New York bankers out of jail.

It has been said that the banks were told privately to buy derivatives to make enough money in the near future to finance their inevitable collapse. Catherine Austin Fitts and others think that once all assets have been transferred from us to the bankers that they will allow the banks to go bankrupt and turn them into regulated utilities. Of course between now and then they will transfer all of our pensions and savings from us to them and saddle us with debts they created out of nothing. Along the way (by my estimate) they will cut our wages by 50 to 60%.

If derivatives are to be bought in large numbers, then they can only become profitable if Bernanke can guarantee a huge swing in market volatility. Most likely up and down and then back up again only to ultimately collapse to near zero. At that point we will have nothing and the bankers can buy every asset in the world for pennies on the dollar with money they stole from us.  A derivative is worthless if the price of a stock, a bond or a commodity like gold or oil does not go up high enough to be in the money. And then if the price of oil for example drops down you can be in the money again if the price goes low enough. If you control the US State Department, the CIA and the Pentagon, you can drive the price of oil up and down with Persian Gulf war rumors.

Markets are currently high and there is little sentiment for stocks to go higher. Investors see so much fraud that they are pulling their money out of the stock market and mutual funds. There is abundant evidence that markets should go down. The most likely scenario is that there is an event that drives the markets down.before election day. Besides I still believe there will be a contrived economic shock before October 10th to stampede the voters into voting for Romney. They are currently tied in the polls. Phoenix Capital Research had an op-ed at Zero Hedge explaining that the latest ISM figures indicate a weak and contracting economy AND inflation.

My most likely scenario: A major bank like Morgan Stanley or Bank of America is deliberately bankrupted. The banks have already been told to make Living Wills which means they are preparing for bankruptcy by separating their good assets from their bad ones. The banks and the Insiders will then get free money from Bernanke to naked short Morgan Stanley stock to zero. They could also buy Credit Default Swaps. CDS are a special type of derivative that in this case could insure someone against a decline in Morgans stock price. But there are too many liabilities in the CDS market with no ability to pay claims, CDS night be avoided altogether as the plan is to take the markets down a little and not to flatten them all in one day. The Congress and the Federal Reserve would step in to bailout Morgan. The banks and the Insiders will buy all of Morgan’s remaining good assets for pennies on the dollar with subsidies from you. The Congress lets the taxpayers buy Morgan’s bad assets funded by even more Treasury bonds to finance this deal of the century while paying for it with money the banks created out of nothing. Since Morgan is to become a regulated public utility anyway, it does not matter if it goes bankrupt as long as the assets are stripped and the taxpayers are stuck with the liabilities. This process can be repeated with Bank of America and Citibank after the elections before it all goes south.

It has been noted by just about everyone that Ben Bernanke cannot raise interest rates. He says because he is worried about those poor homeowners. Nonsense. He is buying mortgages up so he can sell them at a discount to the bankers who will foreclose on you demanding 100 cents on the dollar for MBS they bought for pennies. The real reason Ben cannot raise interest rates is that the New York and London banks have hundreds of trillions of dollars in one sided bets that interest rates will not go up. That is why I keep saying that those 10% inflation numbers from Shadow Stats are worrisome. The other indicator of a sharp rise in inflation is the decline of the Petrodollar. China has announced it will buy oil in yuan and avoid dollars. The Chinese are negotiating to buy oil from Mexico in yuan. If foreigners have no use for dollars, they will dump them by buying commodities like food and oil. This will drive up oil and food prices so Americans and  any nation that does not export food and oil will suffer. Higher prices will collapse the US economy. As I said before, once inflation hits 20%, there will be an international conference like Bretton Woods at which the dollar will be devalued by at least 40%. That will cut American wages in half between now and the end of 2013 or sooner. That is the long term risk.

In the short term we might have some economic shocks designed to squeeze that last few dollars out of the suckers before the bankers reduce us to Permanent Debt Slavery. That is their plan for you. I assume you have a plan for them.

Notes: If you want to get control of the media, please consider this:

Hit The Media At Their Weak Point: Pull Their FCC Licenses

If you want to read about workable plans to cancel debts, and fractional reserve banking and get the economy moving again, please consider these two articles:

The New Economics, Radical Solutions Required And Offered

https://vidrebel.wordpress.com/2012/09/11/the-new-economics-radical-solutions-required-and-offered/

IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.

https://vidrebel.wordpress.com/2012/08/19/imf-economists-we-were-wrong-will-someone-please-tell-the-press-and-the-politicians/

So What Happens In 2013 When The Number Of Poor In America Goes From 100 To 280 Million?

https://vidrebel.wordpress.com/2012/08/05/so-what-happens-in-2013-when-the-number-of-poor-in-america-goes-from-100-to-280-million/

This is my latest article:

Catherine Austin Fitts; There Is No Fiscal Cliff In January 2013 Unless You Want It

https://vidrebel.wordpress.com/2012/09/20/catherine-austin-fitts-there-is-no-fiscal-cliff-in-january-2013-unless-you-want-it/

This video is from Lindsey Williams who has been reduced to one source  of inside information. He has been reliable in the past. It was his claim that he was told the banks were told to buy derivatives that made me decide to write this. I must admit it is painful to listen to him speak.

http://www.youtube.com/watch?v=5kG1EyINeNs

About horse237

I have decided to share two of the visions I had as a child. When I was eight, I had a vision of a future war that killed 99.5% of the world's population. When I was 16 and living in the projects, I had a vision of my future. I was to live in complete obscurity until it came time to stop WW III. When I was about ten, I had read a bio of Nikita Khrushchev which said he survived Stalin by playing the bumbling fool an old Russian peasant trick. I decided to do the same as I had already learned that we did not live in a democracy. The other vision I had when I was in third grade was of the Mind of God and how it interacted in the creation of the world we see. I believe you and I were born at this time precisely so we would have an opportunity to stop this war. As for my personal info, I grew up on military bases and in housing projects. My legs atrophied from starvation as a child. My second step-father died in prison. I used to have to rub my skin to simulate human contact. They did not feed me when I was a child. I do not fight in their wars as an adult.
This entry was posted in Bank Fraud, Gold, Hyperinflation and tagged , , . Bookmark the permalink.

5 Responses to Did Bernanke Just Tell The Banks To Buy Even More Derivatives?

  1. The Road says:

    Again, on the money.
    The Morgan Stanley collapse is particularly prescient and represents a likely scenario given that most of the derivatives are now being funneled into Morgan Stanley. They are at serious risk.
    Bank of America less likely.
    Morgan Stanley is the Lehman of this latest crash cycle.
    Note that it is likely that paper currency (dollars) may prove to be more valuable then electronic pixels (even when devalued). At least they will buy something when the SHTF. Note the control of the pixels.
    Once again, thanking Video Rebel, the consummate sheepdog, for the excellent insight and analysis, all of which is based on verifiable facts.

  2. Pingback: Anonymous

  3. neil says:

    Question, why October 10 ?

    • horse237 says:

      This dating of a potential crash goes back yo my original prediction that the people higher up the banking food chain than Bernake want Romney to win the elections as Obama was their man in 2008 but has outlived his usefulness.

      I believe there will be an economic shock which could be Morgan Stanley’s bankruptcy or anything else that will stampede the voters into voting for Romney.

      I think it will have to happen by then to derail Obama. If it is too late in the election season, it might not help.

      As I said in this essay, there are trillions of dollars left on the table to be stolen. To steal that much money before the collapse will require violent market swings both up and down. The next swing has to be down and then back up so they can hit us with some more after the elections. If the market has to go down, I think the bankers will time it to early October.
      No particular reason for the 10th.

  4. neil says:

    Thank you…well 3 weeks to go, so lets see. Keep up the good work.

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