The End of Fantasy ~ The Risk Averse Alert

Tuesday, August 28, 2012

The End of Fantasy

And the battle to save the U.S. Treasury is on. Whether Sen. Bob Corker understands it or not, the "humility" he calls on Fed chairman Bernanke to exercise is the same humility requiring bankruptcy reorganization of the banking system along Glass-Steagall lines. Of course, being that the criminal crew from Tory Left (i.e. the current White House occupants) opposes such a move relegates Corker's renewed effort to politicize the Fed an election year stunt whereby Tory Right will insist only on more savage cuts of U.S. Treasury outlays whose effect will no less hasten the Treasury's, and therefore the U.S. banking system's, demise.

So, the question is what will the Fuehrer whose banking dictatorship remains at the top of the agenda do next? It sure looks like this could be the moment when the plug is pulled that all hell break loose, during which period terms of surrender are put on table. Just like '08 they have to move before their useless assets in Washington are set off on their journey to join the dinosaurs.

If ever there were a time for new leadership in Congress to make its move and push for Obama's impeachment, this is it. I'm betting the bankrupt crew animating Windmill Willie is wishing the Democratic National Convention was over already, so his splendid little war in Syria could have been launched already. Now how will they blow out the Treasury to generate the assets needed to backstop Bernanke's confetti? It's a fairly safe bet that, once next week's Democratic convention is over the Fuehrer's Executive Puppet will be taking some kind of extraordinary action aiming to secure his place in history as the man who destroyed the United States.

Of course, one also wonders if Bernanke's first act of humility was declaring Count Draghi-ula persona non grata at Jackson Hole? These guys are screwed and we can at least thank Tory Right's Bob Corker for announcing this publicly yet again. A few days more to savor the dream of more QE and push the last of the suckers into the giant garbage pile covering Mount Insolvent, and at hand could be the end of fantasy that, the status quo of yesteryear might soon be restored.

Fast Money
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