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What are they going to do with all those dollar reserves?

Elaine Meinel Supkis

They lend it back to us at 0% interest, Shoshona.

For now. But ONLY if we run huge trade deficits with them.


Happy birthday Elaine :) Although I am kinda afraid to hope that all your dreams come true xD

My recent attempts at bottom-fishing the stock market has landed me severe burns, but the current bounce should last till the elections in 3 weeks time. After that it will probably be more cliff diving and many things will go under during the transfer period. Maybe I should exchange all my money into chinese yuan by then...

Elaine Meinel Supkis

This bubble will be smaller than the Dot Com bubble. Each bubble requires bigger rescues and cheaper credit to restart.

I should write about this.


The printing presses started running
How the HELL can those debt last?
Watch the Christmas spending for signs of the
economy doom


Elaine and Carli,

Check out this article:


'Note: tiny little Switzerland, home to banking behemoths UBS ag and Credit Swiss, is not above the looming disaster as those holding Swiss Francs are in the FALSE belief that they are immune to the coming debasement and reflation of the developed world’s banking and financial systems. These numbers are INESCAPABLE and unless these countries and their public servants are suicidal they will rise to meet the challenge.'

You guys are right - no wonder folks are pulling out of Swiss Francs and banks!!!

Options for safe havens are narrowing down to precious metals or objects...


If the member banks of the Fed are all having to be bailed out, doesn`t that prove that the Fed is bankrupt and that the time has come to call for it`s abolition?
Opportunities to use the power of an opponent against him (as in judo) are rare.
I suppose the Chinese are biding their time waiting for the US to throw itself on the ground.
In the meantime it looks like one of those mechanical rodeo bulls going faster and faster...soon the air wil be full of gnomes being thrown off as the funny money glue can`t hold them on anymore...


If only we are on another planet; we'll be laughing to the death at the stupidity of these so call leaders of the human race.

Right now, I don't know whether to laugh or cry.


Elaine, in the referenced Telegraph article Gordon Brown called for "building a new international financial architecture for the years ahead".

I believe a Global Monetary Authority is coming along the lines of what Timothy Geithener envisioned: unified regulation of banking globally.

An I believe that the architects and leaders of the Global Monetary Authority will come from Britain.

Specifically a world ruler, a Sovereign, will arise to rule mankind, this being held forth in Revelation 13:5-10

And a chief world banker, a Seignior, meaning top dog who takes a cut, will arise to rule banking, commerce, and trade, this being held forth in Revelation 13:11-17


"It takes two to speak the truth — one to speak and another to listen." ~ Thoreau

Thanks for always doing doing both, Elaine. Happy Birthday!

OC, I lived in Switzerland for a few years thirty years ago. It is difficult for me to imagine how far down they have come, screwing up as they have. They were focused, frugal and disciplined then. However, not all of them have been stupid, check out Marc Faber from yesterday, he has got it down pat:



The PTB did not have much choice, either deflation now (anarchy before the election due to no credit for goods like Iceland) or hyperinflation followed by deflation (anarchy later when no goods are available due to money being worthless).

The better choice would have been to void all derivative contracts past present and future where the value exceeds the asset and if at least one party does not have the outright ownership of the underlying assets. Abolish the Fed member banks and charter a new National Bank since the US is nationalizing everything already. The National Bank will support short term credit or Letters of Credit to US companies at Libor for 30 days max until new Chart Banks can take over. Fiscal spending for public works, infrastructure and basic social services to tide through the hard times. Nothing for the gnomes they already got their couple of trillion in fees and bonuses in the past decade and can go hang from a lamp post. Foreclosures will accelerate the end to debt slavery sold by the gnomes since 9/11.

The markets will go parabolic for the next few days or months until exhaustion settles in again when almost an infinite amount of money is needed sustain the momentum and there are no more asset classes to inflate, then you will get the start of the final collapse. Imagine Iceland simultaneously on a global scale. Unless somebody gets trigger happy first.

With the Hyperinflation choice, getting a couple extra months of food and necessities stocked up might be a good idea now while it is still affordable and available.


OK, I have an investment opportunity for you.

I have some Bonds for sale from a creditor that has $12 trillion in existing debt.

They require $1 trillion in new debt every year. (They spend more than they 'earn'.)

These bonds pay between 1 and 0%.

How much would you like to invest? HAHAHA!

Alright, you got me; I was talking about T-Bills.

So here is the scenario: Crash the equities markets and herd everyone into cash in banks. Then crash the banks and herd everyone into T-Bills.

The yield goes to almost zero based on the new demand.

And as everyone should have been taught in Kindergarten we know that when interest rates go UP, the price of a bond goes DOWN.

If you have $1000 bond earning 0%, you of course would sell it if you can get 10% at the bank.

So my prediction is, surprise, an IMF downgrade of AAA credit rating, a resulting huge increase in interest rates (risk adjustment) and an enormous crash in T-Bill prices.

Now the next piece of the puzzle is why did they give themselves the ability to lower Reserve ratios to 0 and for the Federal Reserve to pay interest on deposits at the Fed?

First, the only way a bank to get seized by the regulators is when their Asset (loans) to Reserve ratio falls below the Regulated reserve ratio. So if it is 10, and they have 1 Billion of regulatory capital at the Fed, they can create (out of thin air) 10 billion in loans. If they lose half their loans due to people not paying, they are at a reserve ratio of 5 and can be seized.

However, if the Fed lowers it to 5, they are cool. If the Fed lowers it to 0, the bank can write off ALL their loans and STILL BE WITHIN REGULATIONS!

So why would they do this? Well, when you engineer a depression, the loans are going to be worth crap. And the interest rate will be enormously high like 18% in the 1970s and no one will be taking out new loans so no source of fees from that.

OK, So how the FUCK are the banks going to make any FUCKING MONEY? That my friend, explains the new regulation (allowing interest payments on regulatory capital deposited at the Fed) that was supposed to go into effect in 2010 or 2011 being moved into place in 2008.

The plan is for these criminals to GIVE BILLIONS OF DOLLARS FROM THE TREASURY (our future tax dollars) to the banks, which they will then be able to deposit at the Federal Reserve to rebuild their depleted regulatory capital AND EARN INTEREST while ma and pa kettle eat dog food.


Then the final coup d'grace will be the Rockefeller McCain (fascist) or Rothschild Obama (communist) start a massive war to self-destruct the US infrastructure and the MEGA BANKS LISTED ABOVE will have ALL THIS LOVELY CAPITAL to loan to ... solar panel makers. HA HA just kidding. New Schools. Fooled ya! Bridges, railroads, space exploration, scientific research, agriculture. HAHAHA!! STILL KIDDING!

Of course they will lend the money to the defense contractors for WWIII.

They will have very carefully targeted bombing campaigns that save the massive estates of the Chinese, European and US defense contractors, bankers and rulers.

Then we will get to see the most amazing rebuilding effort from in the surviving Chinese infrastructure.

Alas there is still lots of money to get from American consumers so I think this will be a ways off.

So at least now when the President asks them to spend as if their life depends on it, he really is telling the truth.


October 03, 2008

"Fertilizer stocks lead 813-point TSX drop"...



Elaine: Happy Birthday, As you blow out the candles today, I am wondering what your wishes are? I think I know. As the paper debt keeps piling up, the stock markets keeps playing on volatility. In one year the stock market has lost over 5000 points. As we see the artificial rise of the stock market yesterday; knowing that its rising not on Quarterly profits from corporations, but hypothetical debt. So my one question is what would have happen if Bushman would have "privatized" Social Security based on the Stock market? Having cake today would have been an expensive commodity.


"Gary Fraser examines the politics of the voluntary sector and highlights the costs of normalising a corporate-style, neo-Liberal welfare state"...



Dear Elaine. Yours is one of the best sites i've discovered in the last several years -- because you've actually checked into some impt. facts and thought about them, plus you have a gift for explaining them. you're performing an invaluable public service. thank you.

Elaine Meinel Supkis

The 0%-0%-0% regime is being locked into place. Not because the Real Rulers want war but because they are frightened of war! They want small murders of weak mini-states like we see today. They want to steal commodities. They want cheap labor.

We NEVER get exactly what we wish for. Why is that?

This is why I talk about the Outer Darkness and the denizens who inhabit the Cave of Wealth and Death: they always grant wishes. But if you wish for power or wealth, they give you death! Mythology and fairy tales all are utterly united in this understanding.

This is why all wishes for physical things turn out evil. And wishes to be loved turn to tragedy. But wishes to give love and get nothing in return has the reverse effect: it is SALVATION. It is the key to the real place of wealth: where the souls are valuable.

Trust me when I say that the denizens of the Outer Darkness value only souls. Why is that?

Ah! It is one of the wonders of our cosmos! We created this place and the only thing of value our ancestors had aside from some stones and the knowledge about how to make fire was the understanding that they could see the future, ie, Death. And thus, invented a thing called 'stories about our souls' which caused the celestial beings we call 'gods' to suddenly materialize.

So this sounds insane yet it is the fundamental basis of ALL religions from the beginning of humanity to today. This is why human sacrifice was nearly universally popular for long times: the offering the living give to these Darkness gods would be a human's soul! Gah!

Jesus, for example, was to be 'the ultimate human sacrifice' just to illustrate this very clearly. The gnomes think their souls are worthless or they can bribe the Guardians who happens to be Libra.

She is utterly cold to any bribes! Nothing earthly can stay her judgments. She looks INTO the souls and interrogates them thoroughly. This is her nature. She should be dreaded but it is amazing how people can avoid this. Including believers in Jesus who imagine he will show up and prevent this interrogation! HA. Nope.


The next best thing to 0%:

ECB pumps $98.4 bln into money markets

The European Central Bank said it had pumped $98.404 billion into overnight money markets on Tuesday, just short of its $100 billion target.

The ECB said on its Reuters information page ECB34 that banks had paid a marginal rate of 0.20 percent, well below the U.S. Federal Reserve's main rate of 1.5 percent.


Wonderful blog Elaine! Your insight certainly provides a very different macro economic perspective. And dearest of birthday wishes!!

Regarding the fate of Australia in the new world order, is there a perception that Australia as a country would be taken under the wings as a commodities supplier to China or a fate more disconcerting...?

Elaine Meinel Supkis

Japan and China will compete to see who gets Australia.

Don't forget WWII: Japan nearly took Australia.



I have been avidly reading your excellent comments, and those of many of your commentators, for several weeks now. Happy Birthday. You might enjoy the following headline on CNNMoney.com (intended to cheer the plutocrats forward). However, the image is uncannily suitable – U.S. pulls the trigger (against its own head).

U.S. pulls the trigger




October 14
Happy Birthday Elaine!

You said,
"This is why all wishes for physical things turn out evil. And wishes to be loved turn to tragedy. But wishes to give love and get nothing in return has the reverse effect: it is SALVATION. It is the key to the real place of wealth: where the souls are valuable."

I couldn't resist:
"Do not lay up for yourselves treasures on earth, where moth and rust consume and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust consume and where thieves do not break in and steal. For where your treasure is, there will be your heart also."
"You have heard that it was said, 'You shall love your neighbor and hate your enemy.' But I say to you, Love your enemies and pray for those who persecute you,"..."For if you love those who love you, what reward have you? Do not even the tax collectors do the same?"

My Mother, rest her soul, is a Libra.
October 19, 1913


You all tell me when you see 0% on your credit cards. It does appear that ALL the auto makers are offering 0% and some of them even give you 0% on the employee discounted price of their autos.


Happy birthday, Elaine! I'm a few months younger than you, which may explain why your posts make so much sense to me. I hope we both make it to 60 (at least), but I worry things are going to get even crazier.


Dear Elaine,
Happy birthday!!! Looks like as the Sun leaves Libra and enters Scorpio. The scales tip from deflation to HYPERINFLATION. Why are these asswipes cheering and celebrating hyperinflation. Central economic planning destroyed the Soveit Union. It will decimate the USA as well. Income taxes were supposed to be temporary in 1941, just for the War effort. I can only guess that this Govt move into banking is PERMANENT!!! Central planning will fail, and the USA will experinece hyperinflation. WHAT A FUCKING DISGRACE!!! Please keep up the good work Elaine, we love you. Thanks


Not a single Swiss bank had to be 'rescued' by the state up to now. So what's the matter with badmouthing Switzerland?


At first glance, the new plan to pour liquidity into the markets looks insane but we have to remember we are in the new world of technology. The new discovery of 0% loans is our savior.

Now, the government can simply borrow all they need for free. Who cares about budgets with free money?

We won't have to pay taxes anymore since the government can borrow for free as much as they want. After all, why go through the cost of calculating and processing tax returns when they can get the money for free elsewhere?

We no longer have to worry about funding social security or medicare since the money can be created for free as we need it. This new paradigm is great news for citizens who in the "old days" limited their spending by saving instead. Now there is no need to save since we have discovered the power of 0% loans.

Technology is wonderful.


Happy Birthday Elaine!


UBS is once again in the hotseat. Since the financial crisis began, the firm has experienced heavy losses and has seen writedowns of 45 billion Swiss francs (€29 billion). The investment bankers on Wall Street allowed themselves to run riot, above all with the meagre savings of small deposit-holders. UBS announced last week it was cutting 2,000 investment banking jobs. As the Neue Zürcher Zeitung recently put it -- with refreshing openness -- "the nicest thing you can say about the American bankers -- and about their imitators as UBS -- is that they were unscrupulous."

Many are fearful of the consequences should UBS capsize. Switzerland's gross domestic product totals 512 billion Swiss francs (€332.1 billion). UBS's balance sheet adds up to 2 trillion Swiss francs (€1.3 trillion) -- four times as much. Even Switzerland's second biggest bank, Credit Suisse, oversees assets totalling 1.2 trillion Swiss francs (€778.4 billion).

Together UBS and Credit Suisse have over 640 billion Swiss francs (€415.1 billion) in outstanding loans.

"We owe this crisis an uncomfortable revelation: UBS and Credit Suisse are too big for Switzerland," wrote the ex-editor-in-chief of the German weekly Die Zeit, Roger de Weck, last week in the Swiss periodical Das Magazin. "If they went bankrupt, a flourishing country would be ruined." http://tinyurl.com/3z3npt

Neon Vincent

Happy Birthday!


Carli, you are right, Switzerland is in a tough spot. If the Swiss authorities let the two banks fail, they get a depression and lots of WHINING from the gnomes. If they bail them out, the gnomes are happy at the expense of HYPERINFLATION and REVOLUTION. So guess which path they will choose, heh.


Happy birthday, Elaine!


Elaine, may this day enrich your life with the continuity of love, courage, strength, and wisdom as you travel your soul's journey of enlightenment and knowledge. You have been a wonderous teacher, master, and student as you illuminate the paths we tread carefully thru the wilderness in our united quest in search of truth and salvation of humanity.

"Inner strength is like a deep river, into which all streams flow. It increases, always moving forward. And soon, there is nothing that can stand in its way."


Happy birthday, Elaine.

Have I been around here two years?


Those zany gnomes sure made stock ticker watching fun! It went up to 9,800 earlier this morning then dropped to below 9,400. All within a few hours.

Who knows...will we go up to 15,000?? Or maybe down to 7,000??? Casinos will be obsolete if this excitement continues.

Yay, it just went up to close to 9,500! Ooops, looks like its starting down again. Dam, I knew I should have sold 11:36 instead of waiting until 11:40.


Happy birthday Elaine. You give us a birthday present every day. All I can do in return is spread your insight and "Share The Love" as often as circumstance will allow. Thank you for your work.


Happy birthday Elaine.

I must have been around here for two years. Wow.

Bear of Little Brain

Happy Birthday, Elaine:

May the road rise up to meet you.
May the wind be always at your back.
May the sun shine warm upon your face;
the rains fall soft upon your fields and until we meet again,
may God hold you in the palm of His hand.

(traditional gaelic blessing)

Loads of sickly youtube vids around this. But this was still in my mind from the first.
Public Image Ltd. - "Rise" (play too loud for best effect)
'Anger is an en-er-gy!'



......a FULL MOON Birthday!
Happy HUNTER'S FULL MOON Birthday to you...

According to the Algonquin tribes in New England (your current domicile), the October full moon is known as the HUNTER'S FULL MOON; how appropriate for you as you hunt and gather all this delicious information... and how thankful we are that you share this bounty with us.

Peace and Love to you on your special day..

The AlgonquinTribe> http://leveillee.net/ancestry/algonquin/algonquinpeople.htm

Full Moon Names and their meanings> http://www.farmersalmanac.com/full-moon-names


Best wishes... Elaine..
and many , many, more!

Elaine Meinel Supkis

Yes, it is a full Libra moon and yes, the huntress is Luna, the Lady with the Dogs. My dogs like this but the cats complain. Though Fluff caught a mouse this morning. So he is part of this cosmic scheme.

ziff house

a few points;
- best wishes Elaine, you are one of the worlds wonders

- chart-wise this setup was different than 29 , then you had a drop off a parabola then bear flag,drop, bear flag, drop and so on to the bottom. This time the initial fall was in the form of a falling wedge [bullish], ending with a plunge off the bottom[also typical and bullish]. I know you don't like charting, but if you follow it closely you find it has magical properties of its own.
- where do they go now? back to derivatives and SIV's . The spell ha been broken at least.


I hope you have a great birthday!!...a giant chocolate cake, the works! :)

I am very interested to see how all of this is going to effect Christmas spending. Retail is still dying. Our shop has seen a death in sales since June and it isn't getting better. I honestly think we will see lots of mom-&-pop stores go out of business after Christmas. I know of shop owners here in Nashville that are merely hanging on through the holidays....and after that, they will more than likely close. People are not spending and I see this first hand on a daily basis.

Elaine, just imagine how different our economy would be if people followed the example of Jesus and of Buddha, if people lived simply and was concerned about their neighbor's well being. Greed is the source of all evil, indeed!


We are witnessing the death knell of the status quo. The many indentured to the parasitical few who feed on our labor's wealth is nearing its' demise. Let them run off to their tiny islands and compounds with the nearly worthless paper. They are a violent species de-evolving towards extinction.

"[Our] object is to secure self government by the republicanism of our constitution, as well as by the spirit of the people; and
to nourish and perpetuate that spirit. I am not among those who fear the people. They and not the rich are our dependence for
continued freedom." --Thomas Jefferson to Samuel Kercheval, 1816.

CEO Nutcracker

We are so blessed to have access to Elaine's cherished thoughts, deeds and wisdom. You are truly a gift that keeps on giving, a sage, and fountain of knowledge and courage. Keep up the wonderful work, Elaine!

Happy Birthday, and may all your dreams come true, for I know these dreams are for the many, at the expense of the rotten few.


Happy Birthday, Comrade Elaine of the newly formed USSA

"you must have fun. you have no choice" (I remember this from a mock-communist B-day card I received)



Instead of counting candles,
Tally stick the years,
Contemplate your blessings,
and to hell with economic fears.

Consider special people
Who love you and who care,
those of us who frequent your blog,
to share your wisdom there.

We think about the carry trade,
and money created out of air,
We think about the gnomes who raid,
and Elaine, our Goddess fair.

Another year is a happy gift,
So cut your cake, and say,
"I’ll short the market tomorrow,
but I’ll party today!"



I too think the ugly status quo of the few, dominating the many is in its death throes.

I believe we will see people like bill gates, that made billions in such a short time, lose them just as quickly.

I think this will play out through most of this century.

It will be painful, and there will be a lot of deaths, but nobody will be spared, elite rich, or poor.

And humanity will come out of it respecting life and nature, or some new life forms will take our place as custodians of the Earth.

This is the prophecy of JZ.

Buffalo Ken

Happy full Libra moon birthday Elaine!

Here are a few things that have happened on your birthday: http://en.wikipedia.org/wiki/October_14

The first entry is as follows:

1066 - Norman Conquest: Battle of Hastings - In England on Senlac Hill, seven miles from Hastings, the forces of William the Conqueror defeat the Saxon army and kill King Harold II of England.

I suspect if not for this event above, many of us wouldn't be here now --- funny, how things connect in all sorts of ways....



Amazing video on the IMF based crash of the Argentinian economy in 2001.


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