Head of the Federal Reserve Bank of NY as Treasury Secretary. Now read below this interesting and relevant story about the creation of the Federal Reserve Bank:" Who Sunk The Titanic??"

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Financial Mayhem to Fuel Gold's Next Surge?
by Sean Brodrick
Dear Subscriber,

Last week, I wrote about how our oil-rich friends in the Middle East are buying gold hand over fist. It turns out they're not the only ones. The latest figures from the World Gold Council show a frenzy of activity in the most recent quarter.
And gold ended last week with a bullish move to the upside that set off "buy" alarm bells for technical traders around the world.
But you know what? I think the best is yet to come for gold. Because it's likely that the WORST is yet to come for the U.S. economy.
And these economic forces could send investors charging even faster into gold just as fundamental forces also align for a move much higher.
I'll get to some of those fundamentals in just a bit. First, let's look at what Washington's insane clown posse is doing to make gold look good.
I Remember When a Trillion
Dollars Was Real Money
1) The Fed Pledges $7.2 Trillion of YOUR Money. Bloomberg News reports that the U.S. government is prepared to lend more than $7.4 trillion — approximately half the value of everything produced in the nation last year — to rescue the financial system, which has been in cardiac arrest since the credit markets seized up.
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How much is that? The pledged money is equal to $24,000 for every man, woman and child in the country. And $2.8 trillion of that has already been spent, according to Bloomberg.
Now brace yourself for the bad news ...
2) The Government Has Already Spent $4.3 Trillion Bailing Out Wall Street. According to CNBC, as of last week, the Federal government had already spent $4.3 trillion in bailouts, from $900 billion for the Term Auction Facility ... to $112 billion bailing out AIG ... to $540 billion backing up Money Market funds ... to $700 billion for the Treasury Asset Relief Program (TARP), and more.
$4.3 trillion — that's more than America spent on World War II, adjusted for inflation. And it's all going down a black hole created by Wall Street bankers.

The Federal government has already spent $4.3 TRILLION in bailouts and has hardly made a dent in the financial crisis.
All that money has to come from somewhere. Investors are stuffing their money into Treasuries with no yield, and the government still has to go out and borrow more. The U.S. Treasury is on course to borrow $1.5 trillion this year, and it's still not enough! Next year's budget deficit will easily top $1 trillion; more than double this year's deficit.
The overall impact of what the bailout will cost ultimately should be very negative for the U.S. dollar ... and that should be bullish for gold.
3) Wall Street Is Probably Going to Need $Trillions More! The financial crisis is really the death of a thousand cuts. Let's take the Citigroup fiasco as an example. You may have heard that Citigroup is getting a $20 billion equity injection on top of the $25 billion it got in October.
But Citi will also carve out $300 billion in troubled assets, which will remain on its balance sheet.
The first $37-$40 billion in losses on those assets will go to Citi.

( From Money and Markets);

 

"Obama's Administration: More of the Same? Treasury Secretary Hank Paulson has set the bar pretty low as he limbos past barriers of logic and fairness to bail out his fat-cat friends. So you might think that the new administration, and Obama's nomination for Treasury Secretary, New York Fed President Tim Geithner, would be a welcome change from the crony capitalism at work now.

The widely respected Big Picture blog has a post by institutional risk analyst Chris Whalen titled: "What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup." I highly recommend you read Whalen's post. He makes the following point:

By embracing Geithner, President-elect Barack Obama is endorsing the ill-advised scheme to support AIG directed by Hank Paulson et al at Goldman Sachs and executed by Tim Geithner and Ben Bernanke. News reports have already documented the ties between GS and AIG, and the backroom machinations by Paulson to get the deal done. This scheme to stay AIG's resolution cannot possibly work and when it does collapse, Barak Obama and his administration will wear the blame due through their endorsement of Tim Geithner.

Read the whole thing. If Whalen is right, the crisis of confidence already shaking the financial markets is nothing compared to the tsunami of trouble that will follow."

 

 Thank you, Carl, for this enlightening article.

A great article on the hidden secret behind the sinking of the the unsinkable ship -- The Titanic!!

 

www.world-mysteries.com/doug_titanic1.htm