Huge warning sign – one of the things that happened last September just happpened again today – the 3 month Treasury BIll interest rate went negative – meaning banks are willing to lend money to the US Treasury and accept back in 3 months less money than they lent. That’s a huge sign something really bad is about to happen.
As bad as we think the US Dollar is and Glenn Beck talks it down, the smart money is fleeing from some even worse investment
Surveying the day’s news, the most likely explanation is that there is growing awareness in Congress of how Tim Geithner and Goldman Sachs have looted the U.S. Treasury. If they follow through on demanding Geithner’s resignation, I think we’re goinna find a whole lot of fecal matter has been swept under the rug during the past year. Goldman’s bribes of $900 million to pay off small business people with “scholarships” may be a sign they know they are about to get slammed.
If indeed Goldman Sachs has to be held accountable for their actions, this is going to change the political landscape quite a bit. Both the Bush and the Obama administrations were involved with GS throughout the whole economic crisis.
The other related piece of news is Ron Paul’s bill to audit the Federal Reserve passed over the objections of Barney Frank. The Fed is about to get a proctology exam with a very large pointy instrument.
My knowledge base is less sophisticated than Art’s. My reaction is that the faster we get the Fed to turn it’s head and cough and proclaim loudly the whispered fact that Goldman Sachs (and their ilk) should become pariahs the faster we can set things right. The problem is that the business slime has purchased legal cover from the political slime. When did legal divorce itself from right?
There is a signifcant risk if we seperate the twins, the patient may not survive. The US Government funds itself through the proxy of the Fed interacting with a group of what are called “Primary Dealers”. Goldman Sachs is very much part of that process, and can be viewed almost as a quasi-government operation.