Robbers on the Loot
It is almost certain that Federal Reserve Bank will ultimately shut down. These are the final days. The major players in the White House, Treasury, FED, major Banks like Citigroup, Bank of America and JP Morgan Chase, Goldman Sachs, Insurance companies like AIG and last doyen of American strength – General Electric – all know pretty well that these are the final days of the Fed’s existence.
In OID cricket match, when the last few overs are remaining, whichever batsman joins in starts willowing his bat all around the corners to score whatever runs he could muster before the stumps are drawn. In the United States, who plays baseball, not cricket, there is a different story. The FED cordoned off the entire area surrounding its massive building, invited only a few select guests, and started distributing extra ordinary largesse over $ 2 Trillion dollars in last 2 months.
A country, where a Senator’s seat can be sold for $500,000, how much money must have been corrupted at high places in Washington where the money rained from the sky in trillions minted at the printing press. The naughty players took all precautions. While seeking passage through Senate, they ensured that free hand will be given to those in chair and no questions would be asked.
When Bloomberg sought information from FED for the disclosure of names of recipients of $ 2 trillions ($2000 Billions) of Tax Payer’s money, they were not even answered. Bloomberg then filed a suit seeking those information under Freedom of Information Act – but alas, the judges in high places would not decide now or perhaps never. After all, they were appointed by the White House. Free press? What’s that? Just forget it. Let us talk green, not the environment – just our greenback – the dollar. When the advocates of democracy, freedom and fairness knocked the doors at US White House, Treasury and Federal Reserve, they were turned back. The rules have changed.
Never before in the world huge pile of money have running into trillions of dollars been printed with enormous speed. There is over 60% probability that many Executives and Officials would have made huge sum of non taxable money in return of favor of giving extra ordinary loans, benefits, aids and equities to chosen few.
Take the money and run – we are unaccountable by law, and once the FED closes down, who is going to know what, how much, when and where from we got such enormous wealth locked up in off shore centers. Who is going to chase us by the way? Immerse yourselves in holy green waters at the Federal Reserve.
Look at the following numbers:
$ 47 Billions:
To cash strapped Citigroup in cash aid or bail out or loans or non refundable advance to fund its massive losses
$360 Billions:
Again to Citigroup in the form of State guarantee for its obligations arisen out of toxic debts against the collateral securities having zero value.
And what did they do? They fired 75,000 employees (23,000 + 52,000) that will create unemployment en masse.
$ 85 Billions:
$ 150 Billions ($60 Billions loans + $40 Billions via Preference shares + $ 52.5 billions Securities purchase)
To AIG to fund its losses arisen out of guarantees in respect of CDO and other related toxic assets
$ 29 Billions plus
$ 30 Billions (carrying only 2% interest rate with no payment for first 2 years)
To Bears Stearns and JP Morgan Chase with declared cause to save the BS but disguised help was rendered to rescue JPMC
And what did they do? They fired 9,000 employees in Investment Banking. They also announced possible 10,000 additional lay off. Another 10% cuts is reportedly planned. This will create unemployment for at least 19,000 employees in short term. The news is very grim because 10% cuts looks small in percentage terms, but in absolute terms or numbers, it will be extremely devastative. Citigroup’s firing of 75,000 works out to 25% of its entire workforce. You can count the numbers for BOA who owns Merrill Lynch having huge Investment Banking staff.
$ 29 Billions
To Bank of America to fund its purchase of Merrill Lynch
$ 2,000 Billions to undeclared financial institutions in last 2 months. The cost of rescue may exceed $ 3,000 billions ($ 3 trillions)… There was lot of drama to get the rescue package of $ 700 billions passed through senate, However, Bernanke distributed over $ 2 trillions without any authority – congressional or otherwise.
And what they denied? And to whom? And how much? Only $34 billions?
$ 34 Billions to genuine Auto makers – General Motors, Chrysler and Ford, who wanted to protect the jobs of 3 Millions workers, staff, dealers and distributors. Look at the following statistics that missed the minds of ordinary Americans and those studious and yet stupid Senators: If 3 Millions jobs are lost at Auto makers; it would cost the State as under:
Cost of Unemployment at US Automakers (GM, Ford and Chrysler)
|
Cost of Unemployment under Allowance @ $50,000 per employee for 12 months |
$ 150 Billions |
3 Mln employees x $50,000 |
|
Cost of Lost Taxes if the employees were allowed to continue |
$ 50 Billions |
Tax @ 30% on Annual Salary/Wages |
|
Total Accountable Loss |
$ 200 Billions |
|
|
Collateral Damage |
$ 300 Billions |
Loss of savings, wealth to millions of stock and bond holders. Loss of entire market cap |
|
Total Culpable Loss |
$ 500 Billions |
|
|
Amount asked for help by GM, Ford, Chrysler |
$ 34 Billions |
This is merely repayable loan |
|
What do you call the President Bush, Bernanke and Paulson and all those supporting their stand? |
Stupid, idiots? |
You decide… |
Cost of Unemployment at Citigroup
|
Cost of Unemployment under Allowance @ $50,000 per employee for 12 months |
$ 7.50 Billions |
75,000 x $100,000 (most of employees are in upper income strata) |
|
Cost of Lost Taxes if the employees were allowed to continue |
$ 2.50 Billions |
Tax @ 30% on Annual Salary/Wages |
|
Total Accountable Loss |
$ 10 Billions |
This is the return generated by Citigroup in helping them |
|
Bail out help given by the State |
$ 450 Billions |
|
|
What do you call the President Bush, Bernanke and Paulson and all those supporting their stand? |
Stupid, Idiots? |
You decide… |
Alan Greenspan was derided for having followed easy money policy for long period of time that sows the seeds of today’s problems. However, what Greenspan could not or would not do, was done by Bernanke in a matter of months at the speed of tornado. He is without doubt one of the worst ever FED Chairman United States had ever produced.
Paulson also ensured that the US tax payers lose every thing while granting enormous dollar package to bankrupt companies. He asked them to issue most inferior security – Preference Shares – which are subordinated to debt. If the companies go under, the Preference share holders get nothing. Had he given the loans in the form of Convertible Bonds or Debentures, they would have had priority over other capitals like Preference shares and Common Equity, and also achieved the purpose of convertible warrants as well.
He knows pretty well that such preference shares trade at considerable discount and assume the character of “Most Illiquid Security” in the market place. And yet, he endangered and almost liquidated the interest of all tax payers while granting largesse to the bankrupt companies running into hundreds of billions of dollars that belonged rightfully to American people
This leads us to the final step. What these two guys at the top be rewarded with?
Kalidas
Hong Kong (Ref: 0812-019 of December 16, 2008)
Link to this page
The quality of the info is what keeps me on this site, thanks!
options university education
6 Apr 09 at 10:25 AM
Sorry, forgot to mention my location details in my earlier comment
If anyone is still having any hopes of quick recovery of US economy, read this:
http://www.marketoracle.co.uk/Article8541.html
As mentioned by Kalidas ji, the US seems to be going down further by taking all wrong steps!
Rajesh, Mumbai, India
Kalidas Says …. Friday, February 06, 2009
Very amusing article. Figures given but not analyzed properly. They go on increasing the size of US economy from 8 trillions to 14 trillions – only last year it was shown at 10 trillions. They quote GDP growth rate of just 4% – it that was so – the size of economy should not have been 10.4 trillions.
GDP is a measure of expenditure. Fed and Paulson spent over $3 trillions in last 6 months, so the size of economy or GDP increased by that amount or 30% growth when real GDP growth is -3%
Rajesh
4 Feb 09 at 12:52 AM
If anyone is still having any hopes of quick recovery of US economy, read this:
http://www.marketoracle.co.uk/Article8541.html
As mentioned by Kalidas ji, the US seems to be going down further by taking all wrong steps!
Rajesh
3 Feb 09 at 11:34 PM
Dear Sir ,
“Reposting along with your comments.”
Today I was happy to see the news that Congressional Oversight Panel blasting Treasury for misusing $700Billion and also for lack of transparency.
It is so funny to see that treasury is using money just for manipulating the market /futures/ currency across the world , controlling commodity prices including gold and mainly writing off the red in the biggies, balance sheet. Not even single dollar might have reached common man yet. But congress thinks they are using it for public financing / aiding home owners. Etc.
Such an Irony . Such a political Drama. I am wondering how can such ignorant people can run the country like US.
Paulson may be counting his days to wash off his hands.
Shiva
Bangalore
(Ref: 0901-075) Saturday, January 10, 2009
Kalidas Replies..
Kindly re-post your message in appropriate forum/section. If there is no forum, field your enquiries in Confused Mind and Clear Answers for the current month. I am replying you here, but it will be deleted after 3 days and will not be transferred to appropariate section because I do not have facility.
I am replying you here, but it will be deleted after 3 days and will not be transferred to appropariate section because I do not have facility.
Kalidas Says ….
Paulson and Bernanke scared the hell out of Senators on first presentation when they stunned the listeners with dire consequences if something was not done. I have already penned article to that effect. The Senators acted over it when the stocks were crashing 700 to 900 points in a day. They were blackmailed by this duo. Paulson work was done – Goldman was saved and converted into bank. He got them back billions of dollars from AIG.
“Jakh mare Duniya, apna kaam karo aur chale jaon. Kaun puchhne wala hai aage. Dekha jayega” was the attitude of Paulson.
shiva
9 Jan 09 at 10:59 PM
Kalidas ji
With reference to the above “property prices collapse”…prices in thane and mumbai have come down by approx 20%, but now people are going out and demand has slowly started to pick up once again (probably due to reduction of price by 20% as well as starting of lowering of home loan rates).
Do you think that the prices still shall go down (as you mentioned 200 X monthly rent should be max limit), or is it so that since the demand is starting to pick now, prices will either stablize or go up?
PS: I am planning to buy a property for thane – for living, not investment. Do you think we should wait for 5-6 months more?
Rajesh
Mumbai
Rajesh
26 Dec 08 at 3:39 AM
Hi Kalidasji
I do have a same uncertainty
if we have an investment now which we are waiting to be a capital gain for us from the stock market. Is it advisable to stay in or just trade till we get some sustainable market.
Ashish
(Mumbai)
Ashish
26 Dec 08 at 3:35 AM
I forgot to mention the city…..its delhi
saumitr
26 Dec 08 at 2:58 AM
Mr Kalidas….
I’ve been reading your blog for quite some time. I was wondering if we Indians should convert our assets into gold. In case this Amero story is true how would it affect Indian rupee considering the fact that we have a huge external debt.
Going through various articles on the internet there is a fair amount of consensus that if dollar is demonetised then pennnies would be given against dollar. Does that mean Indian external debt would come down?
saumitr
26 Dec 08 at 2:57 AM
Kalidasji,
With reference to the above post, does that mean that one should not invest in Indian stocks over the next 12 months??
Atul
Singapore
Atul Upare
26 Dec 08 at 2:39 AM
Hello Mr.Kalidas,
Small Clarification.
Some of your projections applies to the world at large and some specific to India or US. I am not able to distinguish.
You said “….All Propery Prices will Collapse..” in your above reply to Mr. Narendar.
Did u mean World over or in US(already depressed) or India specifically.
And also regarding staying in Cash..u meant for US folks or for anyone in the world when those predicted events play out in US.
Your reply is much appreciated.
Thanks,
Rajiv- Chenni
Rajiv.N
25 Dec 08 at 11:05 PM
hi
manan
24 Dec 08 at 4:50 AM
Kalidas,
Recently I am getting a doubt about FIIs pulling out money from Indian markets.
From a long time reading your analysis and facts that you
have presented, it was very clear that FIIs had to pull out their for money from Indian markets for two purposes:
1, One is that they can make huge gains now that they have invested over a long period of time starting at cheap prices. That will enable them to cover their losses to some extent.
2, To meet redemption pressure as it happened badly in the recent months.
First one would not have been obvious. But your strong assertion that there is a big loss in their sheets, and its proof over time, gave confidence over it. So I could see the trend on what FIIs are doing. They never bought on two successive days from July to October end. So even if they had bought some day, I used to check it for next day, and confirm that was just temporary.
But now things are changing. It became very very clear to every losing bank on Wall Street, that they will get all the guarantee (bailut or whatever it is called), from the FED/Government.
In this scenario, considering that the gains they make from Indian market and the exposure itself can be so small to compensate their losses, and also considering that they are anyway getting close to free money from FED, why do they need to sell anymore? Even under redemption pressure, they can happily redistribute FED’s loaned dollars. I believe their investment money is tiny compared to the same investment bank/fund’s exposure to Subprime derivatives. Hence their gain in Indian market may be lesser to improve their balance sheet than the cover that FED’s dollar can provide.
It is beyond my understanding when I had realized that Bloomberg consolidated all loaned money from Government and FED was upto $7 Trillion and Americans do not seem to start any Riots. Are they still busy with some work?
Or are they for now sleeping with the Government provided unemployment benefits? In that case, we may expect revolution slowly starting atleast after one year after the peak of job cuts. It may be December 2009.
Can you please give your comments on these two question? (FIIs selling, Americans sleeping when Goverment has looted $7 Trillion and still looting)
Thanks,
Narender
Bangalore.
Narender
23 Dec 08 at 12:21 PM
To All Readers,
from today, I will be detailing one stock per page under Stock Watch column, for easy identification of the readers. Please see the side bar under Stock Watch where you will find each entry. for example, I have posted today, Hotel Leela and Ashok Leyland. At the end of the month, I will have them consolidated (without comments) into one PDF file. At the end of each quarter, I will consolidate into Quarterly PDF files.
Please note that the reader is welcome to make comments under each stock – but it will NOT be answered by me there. If you need clarification or otherwise, please post your queries under “Confused Mind, Clear Answers” for the current month.
It may be also noted that-
- If there is material event affecting the company, the relevant section at the bottom of the relevant stock page will be updated with dates. No separate notification will be advised.
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(2) DO NOT post any comment relating to any other topic except the concerned stock.
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(4) DO NOT QUOTE verbatim other reference article. You may provide a link
(5) AVOID SENDING ME private e-mail unless your questions are of personal nature, and can not be discussed in public forum like this.
(6) Spell check your message, before you post. This is very important. Any spelling eerrors (like this one) in your posts puts “coma” to our reading. Make it as smooth as possible. Also, we do not expect you to be expert English writer. You may use working English, and if you do not find proper words, use Hindi (no other language)
(7) Avoid “takori” language. Using bad language does not impress your point.
(8) The stock suggestions reflect my personal view point. This is what I would do if I were you. No guarantees or warranties are given that the concerned situation will work in all cases. I can promise you to be careful – that’s all.
Thanks for your attention
Kalidas, (Anil Selarka)
anilselarka
22 Dec 08 at 12:50 AM
Kalidas,
you have published the book regarding the sub prime mess? if so, then i wanted to know are they following now atleast what is to be done?
when do you think it all will be over?
Indian markets are rising showing that the problem is over atleast india is concerned.am i right?
saba, bangalore, india
21 Dec 08 at 7:09 AM
Hi Kalidas
It’s been a long time and I have a few doubts related to the discussions / views on this board.
1. What is the benefit to the Arabs to let the $ crash ? (as they have plenty of it with them)
2. In case the gold is not really with the FED (though physically it is) how does it make sense for the holder of the gold to keep it there, as in case of roits and people going beserk that gold would be under threat.
3. When are we likely to see gold going past $ 1000
4. How true is the Amero story?
Your comments would be appreciated.
Xavier
U.A.E
xavier
20 Dec 08 at 9:20 PM
Dear Sir,
you claim you have some solution to US problems. did you made that public in your book? is there any sign that US is going on that direction to solve the mess?
saba
20 Dec 08 at 1:34 AM
Res sir,
view this video http://in.youtube.com/watch?v=VG0fu2YXeKA .He is hal turner on amero.I came across this and I was intrested in knowing the truth
Interesting video.
MANAN VAGHANI
manan
19 Dec 08 at 2:46 AM
Hello Kalidasji..
I have a question for you through which i want your advice…
Apologies as it is not related to this topic, but i did not know where i shd post this query..
6-8months back i have commited for a flat in Vizag, AP and did part payment initially and i have to o rest of the payment in 5-6months time which is 20Lakhs..
I will have the required amount (20lakhs) in cash in next 4-5months time…
Now with the interest rates coming down, is it advisible to take 20lakh loan from Bank and do the rest of the payment and me paying the EMI and deposit my Cash in bank and take the interest on it? or is it good to pay the rest of the 20lakhs in cash and do go for any loan? Because with my little knowledge of Bank lending rates coming down, deposit rates going up (it will be more if i deposit under my father’s name who is senior citizen) and finaly having cash in hand as King…
1. Can you suggest me which method i should pay my final payment when required?
2. Which banks do you think i should look if i need to take loan/
3. Which banks i should look into to make my cash deposit to get max interest and pay my EMI?
Ramesh, Vizag, 18Dec2008 (Please do not leave lot of blank spaces. Kalidas Says …. )
Ramesh
18 Dec 08 at 10:49 AM
*** URGENT *** NEW “AMERO” PAPER CURRENCY EXPOSED!
North Bergen, NJ — To the chagrin of the government, I have obtained new “AMERO” paper currency notes! You know, the “AMERO” . . . . the new currency that is going to replace the US Dollar, The Canadian Dollar and the Mexican Peso? Yea, the new currency that all three governments claim doesn’t exist. . . . I have it. Here’s what a 50 Amero note looks like:
In September, 2007 – over a full year ago – I first broke the story about AMERO coins being minted secretly at the Denver Mint. After that story ran, the Denver Mint announced on its web site that they were closing public tours of the Mint for 10 – 14 days in order to make renovations to the tourist area of the mint.
My sources inside the Mint, however, reported Treasury officials were outraged that someone had leaked info about the AMERO to me and they closed the Denver Mint to the public so as to secretly move the AMEROS out of the Mint to prevent further leaks.
In October, 2008, I received word that the U.S. government shipped 800 Billion AMEROS to the China development bank. I did a story on that (here) and obtained an actual AMERO coin from that shipment!
I placed a video of the coin on YouTube, showing the coin and explaining that there is a deliberate effort underway at the highest levels of our government to intentionally exhaust the dollar as a currency. Over 600,000 people worldwide watched that video.
Two days ago, YouTube/Google notified me that my video had been deleted and my account permanently closed at the request of the United States Treasury Department. The Treasury department told YouTube/Google that my video was “destabilizing the U.S. Dollar and was thus a threat to national security.”
Here we are, just two days later and my sources have once again come through; this time with proof the government is secretly printing new AMERO paper currency.
Not only do I have the 50 AMERO note, give look at the 20 and 100 AMERO notes below!
Not a single American citizen has been officially asked if they want a new currency. Not a single member of Congress has voted on authorizing a new currency. Yet a new currency is already being printed and quietly distributed around the world. This is being done without the consent of the American people, without a vote by Congress and has been intentionally covered up by every official who has been questioned about it.
The REASON they are creating a new currency has to do with how they plan to get rid of our national debt. On October 16, 2008, the “Global-Europe Anticipation Bulletin” told its subscribers that the present U.S. Dollar will be demonetized (it won’t be “money” anymore) and a new currency imposed. “Old dollars” will be devalued by ninety percent (90%).
Think about that for a moment. A 90% devaluation. That means checking accounts, savings accounts, IRA’s 401-K’s, Pension plans, Certificates of Deposit. . . . are all worth ninety percent LESS than previously.
This AMERO currency will allow the government to literally grab 90% of all our life savings and owe 90% less than they presently do in one fell swoop! They get out of debt and the rest of us are left totally destitute. Broke. Busted. Poor. Helpless.
I believe the people perpetrating this secret currency change are in for personal visits of a violent nature. I think there are folks out here in real America who will not take kindly to having been deliberately lied-to.
I believe my fellow Americans might — just might — decide it is time to . . . . . “discipline”. . . . . the public officials who have undertaken this outrage without our consent.
It’s a tough thing to have to physically discipline a mis-behaving adult, but I say now, I’m up for doing just that.
There are officials in this country who deserve to get the shit kicked out of them and I really look forward to having the chance to do it. If they think their puny little Federal Reserve Police force can do anything about it, they’re sadly mistaken.
manan
18 Dec 08 at 12:00 AM
This is a very interesting topic – if i may throw in my two cents.
Using your “ICU” analogy – i understand that “doctors” in this case – the Bernanke/paulson team are doing their best they can with the patient.
If we were the “relatives” of this patient – and one of us is a doctor – we might have a different opinion on the disease – and I believe that’s where you stand.
What is inevitable is inevitable – but as a “fellow doctor” – you will have to agree that these people are your last hope.
And right now I think they are doing the last resort – a “blood transfusion” – bringing the interest rates to a range of “0-0.25%” – flushes out the investors that are “hiding” in T-bills and force them to invest elswhere – there is a term they use called “reflation” – currently flooding the market with money supply – which is what the fed/gov’t has been trying to do – loosen up credit markets etc..
I understand its could be a “Hail Mary pass” – but it might work – pulling the plug without trying is a greater sin in my opinion.
one final thought, I read most of your blogs and you are quite critical of your “fellow doctors” – its neccessary to see from a different perspective – but I am sure not everything they do is wrong – and you could give us a clearer picture of what they are doing RIGHT – I am sure your users will appreciate it – i know i will.
Thanks for your time & blog.
Kalidas Says …. We should have honest Doctors. The present doctors you referred to will take away body parts and sell in the market. they know that the patient is dying, so they are doing nothing wrong. I do not see any step in right direction, so unable to praise them on any count. When I see one, I will write about it.
Martin Das
17 Dec 08 at 2:50 PM
Well, as predicted, the Fed has cut the interest rate to 0%. Its going to be interesting as they won’t be able to cut any more rate, so they will have to buy long term treasury bills from the bank. That’s the only other way.
I do like your explanation comparing the two above (Auto & Citi).
Although, I must say also, if the govt had bailed out the Auto, what’s to say that the Airline industry won’t be coming out there next. How long can they keep bailing out badly managed companies, that’s of course not to say that CIti is not badly managed either.
in this time, I believe that the Govt has selected to save Citi is for one main reason, which is by pumping in 20 Billion in to it physically & 300B guarantee. Of course, to my understanding, this is because they would like banks to start loaning money back out to public, which of course the banks are not doing as freely as they used to. So, it would be great to see how all this plans out.
Ashish
San Diego, USA
0812-041 Kalidas Replies to Ashish (San Diego, USA) 17 Dec 2008
Agreed, Next on line is Airline industry. In fact almost all high capital intensive industry will be at the door step of FED, because bond market, capital market and bank borrowings are dead.
Another giant to fall will be “General Electric” or GE as they call it. Its exposure may be as a large that of large commercial bank.
Government gave over $50 billions (possibly 100 billions through other facilities) to Citigroup. it is a dead body about to be immersed or buried 6 fathoms deep. it is a gone case, why do they try to keep them in ICI for so long? Medical bills for such disease is very expensive.
Ashish
17 Dec 08 at 12:59 AM
Is there any time frame when the FED will close down? Nice and factual information of what is happening in US which is buried under the carpet by the so called neutral media. Good article.
Prabhakar
Kalidas Says ….
(1) To get reply, please append City and Country name to your signature invariably.
(2) Is there any time frame for a patient in ICU?
Prabhakar
16 Dec 08 at 9:00 PM
Sir,
Excellent article. When is your book going to be published?
Aejaz
Aejaz
16 Dec 08 at 7:18 PM
Sir, (Ref: 0812-038 Original Post of Vivek (Gurgaon, India )
FED has lot of gold at 42$ per ounce in its balance sheet. Do you think they may revalue it at the current prices to make the balance sheet less leveraged.
Vivek, Gurgaon, India
Vivek Dhariwal
16 Dec 08 at 7:24 AM
3 Mln employees x $50,000 = 150 billion you said.
I think, it is 3 lakh employees (GM,Ford and chrysler) not 3 million. Correct me if i am wrong.
eswar
16 Dec 08 at 7:16 AM
[...] The cost of rescue may exceed $ 3000 billions ($ 3 trillions)… There was lot of drama to get the rescue package of $ 700 billions passed through senate, However, Bernanke distributed over $ 2 trillions without any authority …[Continue Reading] [...]
- Are You Riled Up? - » Blog Archive » Robbers on the Loot At Financial Wisdom - By Kalidas
15 Dec 08 at 8:08 PM
Nice Site layout for your blog. I am looking forward to reading more from you.
Tom Humes
Tom Humes
15 Dec 08 at 2:27 PM