QE=Technical Insolvency Terrorism Trap?

QE=Technical Insolvency Terrorism Trap?

Dear Contra_Folk,

How would one know, especially in light of events of the present day, that one day not a very long time ago, our despised “Enemies” infiltrated our (un-elected) voting members of our central banking system. Maybe we also lost the benches controlling our Supreme Courts and the individual’s right to launch class action suits, or perhaps our domestic political voting systems with fossil-fueled Corporatism designed to legislate and extend corp. tax loopholes and individual credits to the Top 1.5% who now control 80%+ of the population’s misaligned wealth or the 1% who have 25% of total income – those who have also used the latest election vote to take back control over the process of limiting TBTF, proprietary trading, taxation of the rich, and of financial re-regulation in its entirety.

What if they then set out with this new-found and stealth-like hidden power, and crafted a master plan of inducing unsustainable excess debt, borrowing, and leverage with a guise to fulfilling some far away liquidity requirements of the 1930’s – to only then snare the starving fools who bite – and eventually hang the developed economies with a dramatically “forced-fed” diet from an extraneous event-driven risk(s) instantly raising global market risks, and interest rates, on these excess $14 Trillion dollars of borrowed funds now costing sub 1% but could one day, cost over 5% (400+bps). This single event could leave any nation in what is called a state of technical insolvency (bankruptcy), with liable cashflow requirements of market rate interest payments that are far more than absolute governmental tax revenues.

Let us see who votes to extend bushy tax cuts to Bill and Warren et al (resulting $70B or more in middle class debt) and actually make ’em Oligarchs pay for nothing at all…. The new modern American Dream.

Could there be a financial terrorism plot or plan with a new weapon of mass financial destruction – Central Bankers’ Quantitative Easing at 0%? What if, Ben is not the head of an un-elected group of Investment Bankers who determine who gets what, at a specific price or interest rate in the developed world, but just an easy money stealing bankster. For they (ibankers) hold the ALL the keys to your economy, and are also the reason for your middle and lower class pain and suffering with rising costs all around from debasement and debt monetization.

Thinking it through a step or two ahead, one must face making a very sudden and unpopular decision to exit this “free money” QE stock & awe strategy – and that should happen at some point (but maybe not, if it is all written off anyways) – and most importantly, at a required speed unlikely to be politically matched in order to be successfully achieved, and thus leaving a cashflow gap (of insolvency) if market rates ever return in the years ahead. Mission Accomplished.

It would make great movie plot,

“All tyranny needs to gain a foothold is for people of good conscience to remain silent.”

Thomas Jefferson

Shalom Bernanke & Timmy Getitoutohere

About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
This entry was posted in Business, Debasement, Economics, Investment Finance, Monetization, Quantitative Easing and tagged . Bookmark the permalink.

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