Fed Gave Euro Banks 1.2 T in Jan! Banks Still Insolvent!
Saturday, March 9, 2013 20:41
Respected analyst Jim Willie has a shocking report out for March. In addition to the massive bailout the Eurobanks received in January, Zero Hedge now reports, they also received 99 Billion, in the last week of February. These numbers originate from the H.8 Charts on the Federal Reserve website, they are not a matter of speculation.
The following excerpts are from Jim Willie's Mar 6th 'Hat Trick' report.
The entire financial structure is crumbling before our eyes. The gang of central bankers has applied their monetary policy for four and and a half years since the implosion of Lehman, Fannie Mae, and AIG. The first is dead, while the second has transformed into a sanctioned subprime lender again, and the latter is a sinkhole. The deceptive messages are shrill, acute, and motivated from desperation. The West cannot solve its problems, hardly described as a financial crisis, anymore.
The USFed admits to expanding the USDollar supply for USTBond and USAgency Mortgage purchases at the tune of $80 Billion per month. In January alone, the USFed poured $1.2 trillion into the big European banks, through the Euro Central Bank channels. The USDollar debasement initiatives do not lift Gold price so much as they undermine the major currencies in unison relative to Gold. The effect is to shine a bright light on Gold for its legitimacy.
The major banks in the United States, England, and Western Europe are insolvent, almost without exception. Since April 2009, the United States blessed the corrupt accounting via a Congressional bill that endorsed a plan by the gutless Financial Accounting Standards Board. They declared any big US bank can dictate the value of their assets on balance sheets, even using original date valuations before market impact, even if no market exists anymore for the asset. The London banks are busted from property loans and Southern Europe sovereign debt gone bad, with the LIBOR scandal adding to their bankrupt image. The European banks are busted, with heavy reliance upon the property market. The PIIGS nations have actually suffered added damage from the goony loony Euro Central Bank LTRO bonds which acted like large grenades. With major banks no longer serving as a strong physical foundation for the Western monetary system, the flight to Gold continues in a brisk pace. The big banks will soon buy Gold by the truck load.
The sovereign bonds of Southern Europe have recently been joined by UKGilts and USTBonds as impaired bonds with little or no global demand. The Anglo-American bond game has seen its jig up. The PIIGS bonds are supported by extreme Euro Central Bank efforts. The USTBonds are supported by extreme USFed efforts. The Japanese are openly selling their own JapGovtBonds, the opposite. All sovereign bonds are in effect supported by the Weimar engines of phony money and burned oil, complete with hissing sounds from the great strain. The collection of sovereign bonds serves as Nemesis to Gold. With the lost prestige and lost squeaky clean AAA ratings, as the debt downgrade parade continues, the effect is to lift Gold demand. The race is on whether the USTBond or UKGilt will be downgraded next. Maybe both at same time!
Read the truth about Obama's intentional collapse of the US Dollar and find out what is next!
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