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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-03-05 07:37 AM
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14. The Fraud of Fractional Banking (Mogambo warning)

The heavy lifting this week was done by the banks, which soaked up $26 billion in government debt (!), and a little help from foreign central banks, which absorbed $3.8 billion of US debt themselves. The Treasury, always ready to spend us into the poorhouse, sold oodles of fresh US debt last week, bringing us up to, as of today, $7.627 trillion in debt.

Rubbing my eyes in disbelief, corporate bonds again went up in price and down in yield, to another new record! This was at the exact same time as fresh evidence of rising inflationary pressures is spooking me out, as the Gross Domestic Price Deflator bumped up to 2%, and the Employment Cost Index also went up.

Total Fed Credit, that mystical place which is the Fount From Which Magical Money Appears As If By Magic Which Is Then Compounded By The Banks Via The Fraud of Fractional Banking (FFWMMAAIBMWITCBTBVTFOFB ) is actually not expanding at it's usual, out-of-control clip. Whether or not this is the start of something big or is just a random wiggle in the chart, I don't know. But if it IS a change, then look out below! As usual, and you technically-oriented people have already noticed, it again coincides exactly with the performance of the stock market this month.

I recently read somewhere, by some moron, that the reserves at the banks still constitute about 10% of liabilities. Hahahaha! In 1997, liabilities in the banks were about $2.5 trillion, and reserves were $45 billion. Today, liabilities are $4.7 trillion, and reserves are $43 billion! Hahahaha! Liabilities almost doubled, and reserves actually went down! Hahahaha! Central banking at its finest!

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  -STOCK MARKET WATCH, Thursday 3 February ozymandius  Feb-03-05 06:03 AM   #0 
  - Morning Ozy. Nice toon again today.  54anickel   Feb-03-05 06:56 AM   #1 
  - Good morning 54anickel and everyone.  ozymandius   Feb-03-05 08:10 AM   #21 
     - Fixing self-made problems (Heh, love that title!)  54anickel   Feb-03-05 08:15 AM   #24 
  - Dollar Watch  54anickel   Feb-03-05 07:08 AM   #2 
  - U.S. Dollar Down Against Euro Despit  54anickel   Feb-03-05 08:19 AM   #25 
  - Dollar Up After ECB Leaves Rates Steady  54anickel   Feb-03-05 11:09 AM   #43 
     - Is anybody else confused?  TrogL   Feb-03-05 02:45 PM   #56 
        - It's in the timing of the article release. The 2nd article was after the  54anickel   Feb-03-05 05:24 PM   #59 
  - Room to move Fed still has a ways to go before rates hit 'neutral' point  RawMaterials   Feb-03-05 07:11 AM   #3 
  - Are Commodity Prices Headed for Switch to Euros?  54anickel   Feb-03-05 07:11 AM   #4 
  - Trying to get back into things a bit  Maeve   Feb-03-05 07:12 AM   #5 
  - Maeve!!! Good to see you again. It's MAEVE DAY!  54anickel   Feb-03-05 07:17 AM   #9 
  - All hail Maeve, Queen of Connacht!  ozymandius   Feb-03-05 08:13 AM   #23 
     - I'm sending some of the last illustrations to my editor right now  Maeve   Feb-03-05 08:19 AM   #26 
        - That's great Maeve - I'll be PMin' ya to get my reserved copy. Sorry  54anickel   Feb-03-05 08:43 AM   #29 
  - U.S. Stock-Index Futures Fall on Growth Concern; Amazon Drops  RawMaterials   Feb-03-05 07:14 AM   #6 
  - U.S. Takes Over Three US Air Pension Plans (small blurb)  54anickel   Feb-03-05 07:14 AM   #7 
  - Oil Falls to 3-Week Low After U.S. Gasoline Stockpiles Increase  RawMaterials   Feb-03-05 07:16 AM   #8 
  - 'Zero intelligence' trading closely mimics stock market  54anickel   Feb-03-05 07:19 AM   #10 
  - Will Central Banks Ever Say No to America?  RawMaterials   Feb-03-05 07:20 AM   #11 
  - Saw that one out there, was posted here last week - worth repeating  54anickel   Feb-03-05 07:33 AM   #13 
  - Things Change (another inverted yields speculator)  54anickel   Feb-03-05 07:30 AM   #12 
  - The Fraud of Fractional Banking (Mogambo warning)  54anickel   Feb-03-05 07:37 AM   #14 
  - Productivity Rises, Extends 3-Year Streak (However...)  54anickel   Feb-03-05 07:50 AM   #15 
  - Treasuries Fall After Productivity Grew Less Than Forecast  54anickel   Feb-03-05 08:57 AM   #30 
  - Falling Spreads Bear Dollar Reality  54anickel   Feb-03-05 07:54 AM   #16 
  - Today's reports:  54anickel   Feb-03-05 08:01 AM   #17 
  - Okay--Initail Claims good, Productivity bad  Maeve   Feb-03-05 08:04 AM   #19 
  - Heh-heh, but ya gotta love the spin they put on those productivity  54anickel   Feb-03-05 08:06 AM   #20 
  - ISM services index falls to 59.2% for January  54anickel   Feb-03-05 11:15 AM   #45 
  - December factory orders disappoint (BUT)  54anickel   Feb-03-05 11:18 AM   #46 
  - Futures charts don't look too happy at the moment...n/t  54anickel   Feb-03-05 08:02 AM   #18 
  - Pre Open Market Update  RawMaterials   Feb-03-05 08:11 AM   #22 
  - Today's WrapUp by Mike Hartman (Fed news)  ozymandius   Feb-03-05 08:20 AM   #27 
  - GACK!  54anickel   Feb-03-05 08:38 AM   #28 
  - A Mega-Deal with Job Cuts to Match  54anickel   Feb-03-05 09:00 AM   #31 
  - Fed's Increase Is Case of Perfect Transparency (interesting part on labor)  54anickel   Feb-03-05 09:14 AM   #32 
  - 10:14 numbers and yada  54anickel   Feb-03-05 09:15 AM   #33 
  - Participants Would Forfeit Part of Accounts' Profits  54anickel   Feb-03-05 09:32 AM   #34 
  - Goo,d lord, they've completely changed the story - nothing like making  54anickel   Feb-03-05 05:21 PM   #58 
  - Massachusetts Probing Gillette Payouts  54anickel   Feb-03-05 09:46 AM   #35 
  - Qwest in Talks to Buy MCI -- WSJ  54anickel   Feb-03-05 09:49 AM   #36 
  - Shell cuts oil and gas reserves by a further 10%  54anickel   Feb-03-05 09:53 AM   #37 
  - Bond Ratings: Another M&A Casualty?  54anickel   Feb-03-05 09:56 AM   #38 
  - WorldCom's $54M settlement collapses  54anickel   Feb-03-05 09:59 AM   #39 
  - Higher Interest Rates and Slower Earnings Growth  54anickel   Feb-03-05 10:06 AM   #40 
  - ALL SIGNS POINT TO BUBBLE (Last article at The Daily Reckoning)  54anickel   Feb-03-05 10:27 AM   #41 
  - High noon numbers Single  54anickel   Feb-03-05 11:04 AM   #42 
  - From our good friend Atrios - on a privatized SS system  ozymandius   Feb-03-05 11:34 AM   #47 
     - Good grief! That table is an eye-opener. Sheesh, maybe I'll just  54anickel   Feb-03-05 11:47 AM   #48 
  - U.S. Retailers' January Sales Rise More Than Expected  MARALE   Feb-03-05 11:10 AM   #44 
  - probably from redemption of Christmas gift cards  realFedUp   Feb-03-05 12:06 PM   #49 
  - Jan. Retail Sales Up on Holiday Clearance (& gift cards)  54anickel   Feb-03-05 12:18 PM   #51 
  - dupe  realFedUp   Feb-03-05 12:06 PM   #50 
  - 1:25 numbers and yada  54anickel   Feb-03-05 12:27 PM   #52 
  - Market Update 2:30  MARALE   Feb-03-05 01:45 PM   #53 
  - Market Update and Blather  RawMaterials   Feb-03-05 02:24 PM   #54 
  - Data Holds Job-Growth Hope,Inflation Fear  RawMaterials   Feb-03-05 02:37 PM   #55 
  - Closing numbers and blather  RawMaterials   Feb-03-05 03:07 PM   #57 

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