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| 580. Financial tsunami created to stabilize the dollar (originally wrote on 12/16/08) (Politics) |
| | Poster: kathaksung | Posting Date: 2009-01-11 | |
On 7/4, I wrote "556. Petro-dollar, the cause of Iran war (7/4/08)". I think it touches the core. From 7/5 to 7/8, the oil price dropped for four days from $145 to $136 a barrel. It goes downwards since. It's a cover up reaction to my revelation. The inside group doesn't want people to know its Achilles' heel - the Petro Dollar. It doesn't want people to connect the Iraq war to Petro dollar. At the same time, a financial plan created to keep dollar from collapse - develop a financial tsunami to lock the dollar in US bond. It starts from the plunge of mortgage giant - Funnie Mae and Freddie Mac. I keep the financial news from paper. I review it recently and found the symptom to sink Funnie and Freddie first emerged on 7/11. One week after my 7/4 article. In my record, the last news about Funnie Mae before 7/4 was on 5/17. It said that the biggest real estate financier Funnie Mae declared that on 6/1, it would have a new rule to drop the mortgage down payment to 5%, in some area even to 3%. It means Funnie Mae was still full of confidence. One year after sub-prime crisis, to low the standard of the loan meant she had financial foundation. It was a blank for June. Then came the July. A series of negative news of Funnie and Freddie were out after 7/11. The article of 7/11 was: "Fannie, Freddie shares plunge on speculation", "Federal officials consider a bailout" (by David S. Hilzenrath and Jeffrey H. Birnbaum, Washington Post) What a sudden turn around. Just two months ago Fannie was so confident to save the real estate industry, now it suddenly would go bankruptcy. It was a pre-psychological propaganda preparation. The August Iran war plot went soured. The financial tsunami plot had to be carried out. But August remained comparatively quiet. No negative news about Funnie and Freddie at that time. Why? I think the inside group, which is also a big financial group, need time to sell their investment - foreign investment, stock, real estates - when the price was still high, before others joined the escape. Then the tsunami came. 9/7, government puts Funnie and Freddie into conservatorship. 9/14, Investment bank Leman Brothers declared bankruptcy. Stock market collapsed. Financial firm, pension fund suffered a great loss. They also have to sell the investment to collect money to deal with the cash out of panick customers. Now nothing is safe except cash - even big name such like Merril Lynch, AIG, GM are in danger, what property could you believe? People leave stock market, foreign market, real estate market and follow the experts' instruction - Cash is king. Large amout of treasure were changed into cash and were driven into US treasury bond, locked there. The phenomenon is the interest of short term treasury note is almost zero, the interest rate of 30 years US bond is only 2.9%. So the oil price can drop to under $50/barrel. All speculating money go and hide under the safe heaven - US bond. Financial crisis stabilizes the dollar (include excessive Petro dollar), drives them into US bond to avoid a tsunami. It becomes a big ballon. Once the ballon breaks off. What will take place? Inflation, soaring oil price, high interest, collapse dollar - that's another armagedon. 581. Orderly bankruptcy, a sword of Damocles (1/10/09) On 5/17/08, news reported that Congress passed the bill to drop the jumbo loan rates on mortgage of up to $729,750 in high priced parts of the country. Funnie Mae and Freddie Mac previously had a cap on that Jumbo loan - $417,000. It's a big leap forward. On same day, Funnie Mae announced new rule of small down payment for mortgage - 3% to 5%. Previously it was 10% . It may reflect what Bush said at that time, the economy of US was basically sound. But two months later Federal officials said they needed a bailout to rescue the mortgage giants. What happened? Certainly it was not because of new rule. It was less than two months after the new regulation. New house buyers may have started their application procedure but have no time to enjoy the new benefit yet, let alone to go new foreclosure. The collapse of Funnie Mae and Freddie Mac was manipulated, on the purpose to touch off a financial crisis to cover up "Dollar crisis" caused by excessive petro dollar. Remember I revealed it on 7/4. The oil price turned around its rising curve and started its descending since then. And one week later, on 7/11, a new project to stabilize the dollar was done - to create a financial crisis. Then we saw a series of psychological operation - news propaganda on "troubled real estate giants" even though two months ago it was full of confidence to save the housing market. Government is the sponsor of FunnieMae and Freddie Mac. It controls and directs the business of the two. If Feds wants the two going bankruptcy, they went bankruptcy. Outsiders never know the truth. But Funnie and Freddie are limited to real estate only. To push up a financial tsunami, the Insiders need another big name - it was Leman Brothers. Though real estates loan was an important business for Leman Brothers, it also packed various other kind of loan to investors. The bankruptcy of Leman Brothers vastly effects in financial area -banks, mutual funds, insurance company, money market ... Feds could have saved Leman Brothers like they saved Bear Stern. The cost would be much smaller compare to 700 billion they used in later rescue plan. But they let it go. Because the bankruptcy of Leman Brothers is a necessity to push up a financial tsunami. It is a very successful plan. All investment fund, or speculating money, or petro dollar, are locked in a balloon of US bond. Feds has whips in hand. Any one dares to invest in other area are beaten. Foreign currency? Most devalued to dollar. Stock market? Anytime will lose several hundred points. Real estates? No one knows where is the bottom. Feds also has intimidation in hand: media predict more lay offs, more bankruptcy. One interesting thing is Media's propaganda on Auto giants' bankruptcy. They say US auto industry is inefficient and deserve a shut down. But Government still gave the Auto giants a little money to survive several months. What for? If you have a boat, and know there is a big hole in the bottom and the sinking is inevitable, will you spend more money to paint it or decorate it? Why not use the money to buy a new one? But they still spend money on a sinking boat, says it is an "Orderly bankruptcy". Is that ridiculous? How long will the balloon be kept? I think they planed to keep it for several months, no longer than one year.
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