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Fiat money is like crack. It’s produced cheaply by a central bank cartel whose members will compete and go to war with each other for production and distribution rights. But, when the bond vigilantes come a knocking, the central banks will circle the printing presses to defend the product. When viewed through the lens of a common street hustler, the global central banking system reveals itself to be just that: a hustle. Learn the hustle and you have a chance at profit. Ignore it, and you will lose.
The late Christopher Wallace, a/k/a, the Notorious B.I.G. a/k/a Biggie Smalls, wrote the definitive street hustler manual with the Ten Crack Commandments. As we’ll see, the Notorious F.E.D. is a devoted disciple.
1. Rule numero uno: never let no one know how much dough you hold
Right off the bat, Biggie nails it. The greatest threat to a hustler is for people to know just how good he’s getting it. The NY Fed conducts all open market operations on behalf of the Fed, and nearly all are done at a loss because, by definition, it is attempting to distort real market prices. Buying high and selling low is the Fed’s hidden graft to the primary dealers, so it would be instructive to know just how much this comprises the nearly spotless trading records of Goldman, BAC and others. In addition, all holdings in the Fed’s piggy bank, the System Open Market Account, are reported at par, or face value. How much of a hit have the taxpayers taken on the $1.25 trillion in mortgage backed securities it bought? Because the Fed only reports at par and on a cash flow basis, we won’t know how worthless its holdings are until the cash flows simply cease. It would also be nice to know if our gold actually exists beyond a ledger entry.
Ron Paul’s audit the Fed Bill (and not the watered down version) is like a gun to the Fed’s head, and the release of a marked-to-market Fed balance sheet would pull the trigger. The public knows those eight figure Wall Street bonuses are coming from them, they just have yet to realize exactly how. “The cheddar breed jealousy,” indeed.
2. Number two: never let em know your next move
Don't you know Bad Boys move in silence or violence
Wallace takes no prisoners here. In the good old days, the FOMC could simply shutter its doors for a couple of days, then let the NY Fed trading desk in on the scheme. No public announcement, no minutes, no transcript (hey, they could even lie about its existence). After decades of arm twisting, the Fed has slowly dribbled some morsels but, to this day, keeps its most precious information secret. This goes back to that pesky audit. So silence, yes, but violence?
A war’s greatest ally is the printing press. It used to be the case when the world was on a (loose) gold standard, that the bond vigilantes would force some restraint after the war ended (or end the war because of it). With a pure fiat and global reserve currency behind it, there have been very few limits on the Pentagon budget and, hence, no reason to take some time off. Oh, and there are those “bizarre” incidents where the Fed is directly implicated with Saddam and Watergate.
3. Number three: never trust nobody
Well, that goes without saying. The conundrum the global banksters find themselves in is that they all know they’re playing the same game. They don’t trust each other because they (correctly) assume everyone else is doing what they are.
4. Number four: know you heard this before
Never get high on your own supply
Here, Biggie foreshadows the end game. There’s a point in many a hustlers’ lives when they start imbibing on what they’re slinging. It’s easy at first, as it seems like the supply is unlimited. But in the end, they don’t consume it--it consumes them. Theoretically, the Fed could print an unlimited number of dollars, but those dollars are all chasing the same goods and services. You can’t print purchasing power or productivity. Fiat money printing dilutes the money supply and eventually results in inflation. This is a redistribution scheme that stops working when the money loses too much purchasing power too quickly. It’s like a dealer cutting the product too much, or worse, selling fakes.
5. Number five: never sell no crack where you rest at
This too tells us when the end was in sight. Use to be, we would send pieces of (Treasury) paper to China—actually, add zeros to their account with the Fed—and get back DVD’s, plasma TV’s and MP3 players. China’s currency peg to the dollar assured their prices would be artificially low and that they would continue recycling their dollars back to the Treasury. That all changed with quantitative easing, where the Fed started buying not only Treasurys, but Fannie and Freddie paper, and even home loans packaged in MBS. The government really began buying its own crack decades ago, with the social security administration and others acquiring Treasury debt. But that is quickly coming to an end, if it has not already. The Fed is now both the lender and buyer of last resort, and it can’t keep that shell game going forever.
Who, but Oscar Wilde, would suspect that a song written by a self-styled street hustler thirteen years ago (just before his own violent death) would anticipate and mould the great financial crisis of the twenty first century? The banksters have clearly been taking cues from Wallace's playbook, but are also breaking some cardinal rules. He's gone five for five so far, so stay tuned for part two, where we’ll see if he continues his sage winning streak (hint: he does).
http://english.economicpolicyjournal...notorious.html
The late Christopher Wallace, a/k/a, the Notorious B.I.G. a/k/a Biggie Smalls, wrote the definitive street hustler manual with the Ten Crack Commandments. As we’ll see, the Notorious F.E.D. is a devoted disciple.
1. Rule numero uno: never let no one know how much dough you hold
Right off the bat, Biggie nails it. The greatest threat to a hustler is for people to know just how good he’s getting it. The NY Fed conducts all open market operations on behalf of the Fed, and nearly all are done at a loss because, by definition, it is attempting to distort real market prices. Buying high and selling low is the Fed’s hidden graft to the primary dealers, so it would be instructive to know just how much this comprises the nearly spotless trading records of Goldman, BAC and others. In addition, all holdings in the Fed’s piggy bank, the System Open Market Account, are reported at par, or face value. How much of a hit have the taxpayers taken on the $1.25 trillion in mortgage backed securities it bought? Because the Fed only reports at par and on a cash flow basis, we won’t know how worthless its holdings are until the cash flows simply cease. It would also be nice to know if our gold actually exists beyond a ledger entry.
Ron Paul’s audit the Fed Bill (and not the watered down version) is like a gun to the Fed’s head, and the release of a marked-to-market Fed balance sheet would pull the trigger. The public knows those eight figure Wall Street bonuses are coming from them, they just have yet to realize exactly how. “The cheddar breed jealousy,” indeed.
2. Number two: never let em know your next move
Don't you know Bad Boys move in silence or violence
Wallace takes no prisoners here. In the good old days, the FOMC could simply shutter its doors for a couple of days, then let the NY Fed trading desk in on the scheme. No public announcement, no minutes, no transcript (hey, they could even lie about its existence). After decades of arm twisting, the Fed has slowly dribbled some morsels but, to this day, keeps its most precious information secret. This goes back to that pesky audit. So silence, yes, but violence?
A war’s greatest ally is the printing press. It used to be the case when the world was on a (loose) gold standard, that the bond vigilantes would force some restraint after the war ended (or end the war because of it). With a pure fiat and global reserve currency behind it, there have been very few limits on the Pentagon budget and, hence, no reason to take some time off. Oh, and there are those “bizarre” incidents where the Fed is directly implicated with Saddam and Watergate.
3. Number three: never trust nobody
Well, that goes without saying. The conundrum the global banksters find themselves in is that they all know they’re playing the same game. They don’t trust each other because they (correctly) assume everyone else is doing what they are.
4. Number four: know you heard this before
Never get high on your own supply
Here, Biggie foreshadows the end game. There’s a point in many a hustlers’ lives when they start imbibing on what they’re slinging. It’s easy at first, as it seems like the supply is unlimited. But in the end, they don’t consume it--it consumes them. Theoretically, the Fed could print an unlimited number of dollars, but those dollars are all chasing the same goods and services. You can’t print purchasing power or productivity. Fiat money printing dilutes the money supply and eventually results in inflation. This is a redistribution scheme that stops working when the money loses too much purchasing power too quickly. It’s like a dealer cutting the product too much, or worse, selling fakes.
5. Number five: never sell no crack where you rest at
This too tells us when the end was in sight. Use to be, we would send pieces of (Treasury) paper to China—actually, add zeros to their account with the Fed—and get back DVD’s, plasma TV’s and MP3 players. China’s currency peg to the dollar assured their prices would be artificially low and that they would continue recycling their dollars back to the Treasury. That all changed with quantitative easing, where the Fed started buying not only Treasurys, but Fannie and Freddie paper, and even home loans packaged in MBS. The government really began buying its own crack decades ago, with the social security administration and others acquiring Treasury debt. But that is quickly coming to an end, if it has not already. The Fed is now both the lender and buyer of last resort, and it can’t keep that shell game going forever.
Who, but Oscar Wilde, would suspect that a song written by a self-styled street hustler thirteen years ago (just before his own violent death) would anticipate and mould the great financial crisis of the twenty first century? The banksters have clearly been taking cues from Wallace's playbook, but are also breaking some cardinal rules. He's gone five for five so far, so stay tuned for part two, where we’ll see if he continues his sage winning streak (hint: he does).
http://english.economicpolicyjournal...notorious.html
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