Geithner’s Stress Test "A Complete Sham," Former Federal Bank Regulator Says
Posted Apr 06, 2009 10:00am EDT by Aaron Task
The bank stress tests currently underway are “a complete sham,” says William Black, a former senior bank regulator and S&L prosecutor, and currently an Associate Professor of Economics and Law at the University of Missouri – Kansas City. “It’s a Potemkin model. Built to fool people.” Like many others, Black believes the “worst case scenario” used in the stress test don’t go far enough.
Today you challenged any of your readers to present a "practical method of draining $20 trillion from the international monetary system.” You offered one ounce of gold to "that person able to present a PRACTICAL method, not academic horseshit that draining this mad monetary expansion is possible."
Based on the illustration below, God has accepted your challenge:
OTC DERIVATIVES CAN BE DRAINED INTO OBLIVION
"Black holes are places where ordinary gravity has become so extreme that it overwhelms all other forces in the Universe. Once inside, NOTHING can escape a black hole’s gravity." – not even OTC DERIVATIVES!!
All the Best,
PS – God said to tell you he’ll accept an I.O.U. for the one ounce of gold!
Spin and currency devaluation are used to create the illusion of endless economic prosperity.
“You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.”
Updated through March 2009
The global quantitative easing (currency devaluation) can influence nominal returns as depicted by the U.S. dollar priced Large Cap Stocks Total Return Index (LCSTRI) and Long-Term Government Bond Total Return Index (LTGBTRI) charts. Unfortunately this influence on this trend is largely an illusion during periods of excessive currency devaluation. When LCSTRI and LTGBTRI are priced in a constant currency such gold, the illusion of nominal returns provided by quantitative easing (global currency devaluation) is revealed by sharp down trends. The downtrends reveal the consequences or price of global quantitative easing.
Stand Tough CIGAs!
The assumption is that the government reaction must produce inflation eventually. You’ve commented that it cannot be drained. I don’t recall what you were referring to.
Could you comment on the website about the following? Of course they may not drain, BUT the issue is whether they can or not.
Bernanke: Many Fed lending programs extend credit primarily on a short-term basis and thus could be wound down relatively quickly. In addition, since the lending rates in these programs are typically set above the rates that prevail in normal market conditions, borrower demand for these facilities should wane as conditions improve
Bernanke: The Federal Reserve can conduct reverse repurchase agreements against its long-term securities holdings to drain bank reserves or, if necessary, it could choose to sell some of its securities. Of course, for any given level of the federal funds rate, an unwinding of lending facilities or a sale of securities would constitute a de facto tightening of policy, and so would have to be carefully considered in that light by the FOMC
Ok, you tell me by what miracle of divine intervention are we going to drain $12.7 trillion in the US alone out of the WORLD monetary system.
There is no practical system to do this. There will be none invented. It simply cannot happen and the consequences will result.
Are you going to ask the shadow trillionaires to return it?
Are you going to drain it from your Fed Member Banks?
Is Goldman going to give it back along with AIG if they are even still here?
Are you dreaming?
This is how the Sheeples are lulled to sleep to today throw away their lifelines.
I have to admit that I am getting so strained at holding the same hands all the time.
The Sheeple must start to think and simply not just feel fear and greed with my email address and phone number on their computerized Rolodex. Shelly, if you in your heart really believe you know more than I do and that all this monetary stimulation has any PRACTICAL method of draining please sell all your gold positions on the next rise, which is certain to come. That will save me the 30 minutes it takes to think out these answers and compose them.
I challenge anyone to present a practical method of draining what will be more than $20 trillion from the international monetary system. Hell, I challenge anyone to come up with a practical plan to drain even half of it I underscore practical because we are presently dying of lies, academic impracticalities and outlandish spin. One ounce of gold will be delivered to that person able to present a PRACTICAL method, not academic horseshit that draining this mad monetary expansion is possible.
Keep in mind the concept of "PRACTICAL," which means it does not kill any incipient recovery also due to come some day, somewhere.