Bond Vigilante Captivity ~ The Risk Averse Alert

Thursday, August 23, 2012

Bond Vigilante Captivity

Do you remember all the talk before the first victims of hyperinflationary bailout — the euro-zone periphery — entered the scene, trans-Atlantic stage right? It was the Fed's "exit strategy." Remember that? Well, we haven't heard a word of it since QE2 in 2010.

With hindsight it's obvious why an exit strategy once was an object of considerable speculation. In two words, "bond vigilantes." So, who does St. Louis Fed President James Bullard think he is fooling? Every squealing weenie on Wall Street will tell you QE3 is a sure thing. Its delay only is a matter of physical reality in which so called bond vigilantes are poised to transform an incompetent Ivy League academic heading the Federal Reserve into a parody of George W. Bush at the height of the 2008 financial crisis: an incoherent, babbling baboon.

Fed policy is reduced to holding in check bond vigilantes while at the same time setting up the U.S. Treasury for destruction. Cheap, unbelievable talk feigning a policy involving something other than insane recklessness is all that remains in the arsenal of hopelessly insolvent central banks on both sides of the Atlantic. Keeping every last sucker holding tight their garbage for as long as humanly possible is but an interim objective, while the greater goal is prostrating sovereign states to a supranational banking dictatorship the likes of which has greatly consolidated its control since the financial swindle of 2008.


All of 39 NYSE-listed issues today reached new 52-week highs versus new 52-week lows. Therein lies most relevant context in a market finding major indexes trading near their highest levels in four years. Evidently I am not alone anticipating the wrath of bond vigilantes the minute squealing weenies on Wall Street get their next tranche of hyperinflationary QE, the very necessity being driven, of course, by an insolvent banking system resting atop a physical economy incapable of generating cash flows necessary to sustain a mountain of illegitimate debt. The economy's forced contraction at the hands of seditious ideologues running central banks comes at both a physical cost and a cost to confidence, as well, much as the above measure has consistently indicated over the past few years.

So, how is everyone feeling about a "banking" system backed to the tune of trillions of taxpayer dollars, all for the sake of allowing the NY Fed to exit its AIG holdings while turning a tidy profit? The same bankrupt pricks calling this the price of avoiding another Great Depression effectively advocate in Syria among thugs the likes of whom even a U.S. President despicably animates an epidemic of kidnappings for ransom. You might say "follow the money" is gaining new meaning in today's broken world. We'll see about "what goes around, comes around." Expiring long-term unemployment benefits and stubbornly high jobless claims all too likely could bring an epidemic of something similarly nasty knocking at many a corrupt imperialist's door, not to mention many an innocent bystander whose only "crime" is naivety believing nothing can be done about so-called "leaders" whose devious corruption does everything but serve the national interest.

Fast Money
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