Axis of Arrogance

The US Federal Reserve today, under the guidance of the US treasury, and with the help of Goldman Sachs pushed the US Economy one step closer to the Threshold Of Death. Once again the Axis of Arrogance has conspired to pull the rug out from under investors and pocket tidy profits in another manipulative foray into the twilight zone of high finance.

To believe, even for an instant, that today's market carnage wasn't set up in advance by this group of conniving international criminals would be an admission that there really is a Santa Clause. Everything that happened today was devised in a manner that would allow these crooks to fleece the US markets on the short side in a desperate effort to profit in an environment that they themselves created, lost control of, and only offers huge and potentially destructive losses for anyone and everyone, including, the criminals that have perpetrated this FRAUD upon the world's financial system.

With today's pathetic effort by the Fed to "save the US Economy", the Fed has said to the world, "We have lost control..." The Fed has decided to throw the US Banking system, perhaps even the entire world's Banking system, under the bus...along with the US Dollar and the "good faith and credit of the United States". The US Dollar is about to get an ass whopping like none you would've imagined.

If you were completely foolish enough to dump your Gold and Silver, and related assets, into this afternoon's carnage, you certainly deserve to end up penniless, living under a bridge. It is hugely amusing the faith citizens of this once great nation, not to mention all those in the world have put into the parochial US Federal Reserve. Despite what clowns like Alan Greenspan and his many minions have preached over the past 20 years, THE FED IS NOT THE VOICE OF GOD ON EARTH. Today, for all the world to see, the king is wearing no clothes. Ben Bernanke, the resident Fed Shaman is a sham. The US Treasury is a front for what is perhaps the greatest criminal enterprise to exist on earth: Goldman Sachs. In time, this Axis Of Arrogance will burn in Hell. Rest assured that, in the end, these pillars of deceit, manipulation, and grand theft will be destroyed, and banished from existence.

At 6PM est, gold prices turned on a dime, and as I type this at 8PM Gold has rebounded $10 an ounce. My suspicion is that by this time tomorrow Gold, and Silver will be significantly higher, and the US Dollar substantially lower. The Fed has completely lost control, and it's now time for the world financial markets to do their job.

From Money and Markets Martin D. Weiss Ph.D. and Mike Larson newsletter update at 4PM this afternoon:

Too Little, Too Late For the U.S. Economy

Meanwhile, the U.S. economy is being dragged down by the housing bust, the mortgage meltdown and the spreading credit crunch.

And today's meager quarter-point cut in rates will barely make a dent in this mess.

Despite all the Fed's rate cutting over the past few months, the key interest rate the Fed does not control — the London Interbank Offered Rate (LIBOR) — is striking out on a different path.

Today, LIBOR is the rate that drives most adjustable rate mortgages in the United States.

LIBOR is the rate that sets the standard for many corporate loans, a big chunk of the interbank borrowing by U.S. banks, even local government borrowing.

LIBOR is easily the single most important interest rate in the world.

But LIBOR is not controlled by the Federal Reserve. It's the rate international banks charge each other on short-term loans.

Those banks don't know where the bodies lie or who's going to be the next victim of the subprime disaster. So no matter what the Fed does or says, they're hoarding their capital. And they're not cutting their rates.

Here's the key:
Even if the Fed lowered its target for fed funds to zero ... if the LIBOR rate fails to decline in tandem, or worse, actually goes up, the Fed's power to avert an economic decline in the U.S. will be shot to pieces.

And that's exactly what's beginning to happen...

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