DONATE

Showing posts with label Corporate Cronyism. Show all posts
Showing posts with label Corporate Cronyism. Show all posts

Wednesday, December 17, 2014

No more RINO POTUS Nominations

RINO Alert

John R. Houk
© December 17, 2014

The Republican Establishment is beginning to slowly suggest their preferred candidates for the nomination of President for the November 2016 cycle. Honestly (and probably to the chagrin of Lefties) the only news I watch on TV is Fox News. And that network’s subliminal suggestions have been Mitt Romney and Jeb Bush. Both former Governors but both with long elements of Left Wing compromises.

I was extremely dissatisfied with the GOP nominating Romney for 2012. I did vote for him; however it was a between a rock-and-a-hard-place vote. I was any person but Obama voter. Romney has been indicating some stealth hints considering a 2016 run. God Forbid!

If the Republican Establishment succeeds in re-nominating for the 2016 election cycle, I am NOT voting for him. Neither will I vote for any Democrat. I will be voting for a Third Party candidate even if it is a wasted vote. The idiocy of the GOP Establishment of business as usual and the Dems Left Wing agenda are no choices for a fiscal and social Conservative.

Since I have experienced the idiocy of supporting Establishment candidates in 2008 and 2012, if the GOP nominates another alternative to Romney but with the same RINO credentials, I will not be voting for that person either. It is my opinion that Jeb Bush’s Conservative bona fides are suspect to be pro-RINO.

Now Jeb may not be as much as a RINO as Romney but he is probably enough of a RINO to perpetuate some of Obama’s America transformation. He would more than likely have a Dem-like immigration policy doctored up to fool voters, keep funneling money to Planned Parenthood funding abortion, abandon Christian morality in not fighting to reverse the courts mandate to allow same-sex marriage, remove everything Christian from taxpayer supported institutions, forcing Christians to do business with Biblically ungodly homosexuals under threat of a civil suit, increasing the deficit, keeping Obamacare rather than more Free Market medical reforms and on and on.

I’d have to do some more exploring into Jeb Bush to pin down some exact criticism rather than suspicions. Michelle Malkin has a good start toward a Jeb examination. Ironically I found this Malkin opinion piece in GOP USA. Perhaps that is an indication that GOP USA is not an Establishment dominated tool of the Republican Party.

JRH 12/17/14
***************************
Jeb Bush: The U.S. Chamber of Commerce's Waterboy

By Michelle Malkin
December 17, 2014 6:55 am

Allow me to unite America's left, right and center in just three words: No, Jeb, No.

Former GOP Florida governor Jeb Bush made the obvious official this week when he announced on Facebook that he's "actively exploring" a 2016 White House run. Of course, he's running. That's what inveterate politicians do.

Well, I hate to break it to Jeb Inc. There's no popular groundswell for Bush Part III. None, zip, nada. Independents, progressives and conservatives are all weary of the entrenched bipartisan dynasties that rule Washington and ruin America. Only in the hallowed bubble of D.C. and New York City elites does a Jeb Bush presidential bid make any sense.

Jeb's indulgent (and ultimately doomed) enterprise has three privileged constituencies: Big Business, Big Government and Big Media. This iron triumvirate explains how the failed campaigns of so-called "pragmatic," "thoughtful" and "moooooderate" liberal Republican candidates such as John McCain, Jon Huntsman and Bob Dole ever got off the ground. The "Reasonable Republican," anointed and enabled by the statist Big Three, serves as a useful tool for bashing conservatives and marginalizing conservatism.

For Republicans who argue that Jeb is the most "electable" choice, I ask: What planet are you on? After two disastrous terms of Barack Obama's Hope and Change Theater, the last thing the Republican Party needs is an establishment poster child for Washington business as usual. I mean, really? A third Bush who's been working for his dad, his dad's friends or the government since 1980?

A Beltway-ensconced scion so chummy with the Clinton family that he awarded close family friend -- and potential 2016 nemesis -- Hillary a "Liberty Medal" last year as chairman of the National Constitution Center?

That's the GOP donor bigwigs' "fresh idea" for "American Renewal?"

To blunt criticism from the grassroots base on the right, Jeb's cheerleaders at the Wall Street Journal cite his "conservative" gubernatorial record of cutting taxes and privatizing jobs. So we're supposed to swoon when a GOP governor acts like he's supposed to act on standard, bread-and-butter GOP issues? Whoop-de-doo.

One thing Jeb's promoters won't be emphasizing: Over the course of his eight years in the Florida governor's mansion, government spending skyrocketed. The libertarian Cato Institute notes that Florida general fund spending "increased from $18.0 billion to $28.2 billion during those eight years, or 57 percent" and that "(t)otal state spending increased from $45.6 billion to $66.1 billion, or 45 percent."

Like big-spending father, like big-spending big brother, like big-spending second son and lil' brother.

I have another interpretation of Bush's "conservative" Florida years: It's called biding his time. Yes, Jeb put in his obligatorily GOP service on taxes and the Second Amendment. Not because he was wedded to deep-rooted principles, mind you. But because the "conservative" facade will come in handy during the primaries when he has to defend radical, divisive positions on his two defining national policy issues: Education and immigration.

Jeb Bush's agenda is neither left nor right. His agenda is the agenda of the D.C. headquarters of the U.S. Chamber of Commerce. Remember: The chamber is a politically entrenched synod of bipartisan special interests. As I've said before, these fat cats do not represent the best interests of American entrepreneurs, American workers, American parents and students or Americans of any race, class or age who believe in low taxes and limited government.

The chamber's business is the big business of the Beltway, not the business of mainstream America. And so is Jeb Bush's.

The Chamber supports mass amnesty for cheap, illegal alien workers. Jeb Bush supports mass legalization of cheap, illegal alien workers and accuses those of us who oppose it on constitutional, sovereignty, security and fairness grounds of lacking "compassion."

The Chamber supports the top-down, privacy-undermining, local autonomy-sabotaging Common Core racket. Jeb Bush spearheaded and profited from Common Core -- and accuses those of us who oppose it of opposing academic excellence for our own children. Jeb's problem isn't just Common Core. It's that he has no core. Instead of retreating from the costly federalized scheme that has alienated teachers, administrators and parents of all backgrounds, Bush has doubled down with his Fed Ed control freak allies and corporate donors.

The reign of Obama ushered in massive cronyism, corporate favoritism and Boomtown boondoggles galore. We've lived too long already under the boot of arrogant D.C. bureaucrats who've exploited their power to serve their friends.

No more business as usual: Stop Jeb Bush.
_____________________________
No more RINO POTUS Nominations
John R. Houk
© December 17, 2014
______________________________
Jeb Bush: The U.S. Chamber of Commerce's Waterboy

Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks and Cronies" (Regnery 2010). Her email address is malkinblog@gmail.com.

COPYRIGHT 2014 CREATORS.COM


Monday, April 29, 2013

Newbill Emails from 3-29 to 4-2-13

Monsanto Frankenfoods
Tony Newbill
Edited by John R. Houk

Here are a series of emails from Tony Newbill with a bit of editing by yours truly. Newbill’s emails typically deal with Conspiracy issues which I love to read. I hope you enjoy them as well.

JRH 4/29/13

**********************************
Corporate-Government Conspiracy is Fascism
Sent: 3/29/2013 9:31 AM

To better understand this article you should become familiar with the Monsanto Company, the Monsanto Protection Act and Genetically Engineered Organism (GMO) which also known as Genetically Engineered (GE) seed.


(NaturalNews) President Barack Obama campaigned on promises to end secret prisons, decriminalize marijuana, balance the budget, honor the Second Amendment and make health care affordable. But what really unfolded was an explosion in the national debt (now $16 trillion and climbing), the signing of the NDAA, a claimed new power to kill any American at any time, even on U.S. soil, the use of military drones to murder American children overseas, a full-on assault against the Bill of Rights, a doubling of health insurance rates and the destruction of the U.S. economy.

But that's not all.

Now Obama has signed the "Monsanto Protection Act" into law, stabbing America in the heart yet again and proving that no matter how convincing politicians appear on the campaign trail, they are still sociopathic liars in the end.

The Monsanto Protection Act, part of the
HR 933 continuing resolution, allows Monsanto to override U.S. federal courts on the issue of planting experimental genetically engineered crops all across the country. Even if those experimental crops are found to be extremely dangerous or to cause a runaway crop plague, the U.S. government now has no judicial power to stop them from being planted and harvested.

As
ibtimes.com
reports, the bill "effectively bars federal courts from being able to halt the sale or planting of GMO or GE crops and seeds, no matter what health consequences from the consumption of these products may come to light in the future."
GMOs now evade all regulations: America has become a grand Monsanto experiment

A Food Democracy Now petition now states:
With the Senate passage of the Monsanto Protection Act, biotech lobbyists are one step closer to making sure that their new GMO crops can evade any serious scientific or regulatory review.

This dangerous provision, the Monsanto Protection Act, strips judges of their constitutional mandate to protect consumer and farmer rights and the environment, while opening up the floodgates for the planting of new untested genetically engineered crops, endangering farmers, citizens and the environment.

Corporate-government conspiracy is fascism

This new law forces the USDA to automatically approve all GMO planting permits sought by Monsanto and other biotech firms, effectively granting Monsanto dominion over the U.S. government. This is the very definition of fascism, a form of tyrannical government where corporations conspire with the government to destroy or confiscate all rights, powers and assets, leaving the people impoverished and powerless.

What's interesting about this development is that now even democrats …
Read the Rest
_____________________
Reason for Rejecting U.S. Dollar and U.S. Food Trade?
Sent: 3/29/2013 11:16 AM

This could create the reason why the US dollar is rejected with the rejection of US food trade.


It should come as no surprise to many of you to find out that Monsanto actually authored the wording of its own Monsanto Protection Act hidden in the recently passed and signed Continuing Resolution spending bill. How could a major corporation write its own laws and regulations, you ask?

Quite frankly I think it’s important to understand that the entire Senate passed the bill containing the Protection Act, but the politician who actually gave Monsanto the pen in order to write their very own legislation is no others than Roy Blunt — a Republican Senator from Missouri. As the latest IB Times article reveals, the Missouri politician worked with Monsanto to write the Monsanto Protection Act. This was confirmed by a New York news report I will get to shortly.

As you probably know I do not play the political clown game of left versus right, and instead highlight corruption and wrongdoing wherever it is found — regardless of party affiliation. In the case of Senator Blunt, he admits to colluding with Monsanto, a corporation that has literally been caught running ‘slave-like’ working conditions in which workers are unable to leave or eat (among many worse misdeeds).

This is one of the most blatant offenses against the citizens of the United States I’ve seen in a long time. A population that Blunt swore to serve. It’s not for the United States public at all, and it’s a serious matter that I don’t think is properly understood. The passing of this bill into law means that Monsanto is now immune from federal courts regarding any suspension or action on their crops that have been deemed to be dangerous to the people (or the environment).

This means crops that were approved and later found to damage the environment or the public will be immune from United States government action. Theoretically, one million studies could find that Monsanto’s latest creation was causing a massive cancer wave and … Read the Rest
___________________________
This is why WE MUST NEVER GIVE UP OUR GUNS!!!!!
Sent: 3/30/2013 9:38 AM


__________________________
What do You Think about These Videos????
Sent: 3/30/2013 10:09 AM




________________________
Oh the Hypocrisy...... Capitalism relies on Trust..!
Sent: 4/1/2013 7:44 AM

Oh the Hypocrisy...... Capitalism relies on Trust and this does nothing to ensure the system is trustworthy!!!!! 

Cyprus’ President-related company transfers 21mn to London prior to bailout agreement – report


A company owned by in-laws of Cypriot President Nicos Anastasiades wired 21 million from Laiki Bank to London days before the Eurogroup’s crisis-triggering levy proposal, claims a Cypriot newspaper. The president demands an investigation.

During two days, 12 and 13 of March, the company A. Loutsios & Sons Ltd., co-owned by Loutsios John, the husband of Nikos Anastasiadis’ daughter, Elsa, took five promissory notes worth 21 million from Laiki Bank. The money was then transferred to London, reported Cypriot newspaper Harangue, affiliated to the communist-rooted AKEL party.

The withdrawal was fulfilled just three days before the Eurogroup meeting when euro finance ministers agreed a 10 billion euro ($13 billion) bailout for Cyprus.

The company, however, has firmly denied the reports.


Earlier in March the Eurogroup proposed the Cypriot government impose a new tax that would make citizens shoulder a 12.5-percent crisis tax on savings larger than 100,000, with a tax of 3 percent on smaller deposits.

The initial agreement suggested 9.9 and 6.7 percent levies on deposits above and below the 100,000 threshold respectively.

At dawn of March 25, Cyprus and the troika of international backers (EU, ECB, IMF) reached agreement on a 10bn bailout plan, aimed at preventing the bankruptcy of the island’s financial system and the country’s exit from the Eurozone.

The depositors holding over 100,000 euros at the Bank of Cyprus will lose 37.5 per cent in money in exchange for bank shares. These big depositors may further lose up to 22.5 per cent more if the experts consider bank’s balance insufficient.

This means that those with big deposits in Cyprus’ largest bank could lose could lose up to 60 percent of their savings in a harsh new EU and IMF bailout deal. Those with deposits less than 100,000 euros will be protected under the Cyprus deposit guarantee.


_________________________
Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility
4/1/2013 10:34 AM


A month ago we pointed out that as a result of Australia's unprecedented reliance on China as a target export market, accounting for nearly 30% of all Australian exports (with the flipside being just as true, as Australia now is the fifth-biggest source of Chinese imports), the two countries may as well be joined at the hip.


Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world's "reserve currency" in its trade dealings with the world's biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process "slashing costs for thousands of business" and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar's reserve currency status until one day it no longer is.


And while previously the focus was on Chinese currency swap arrangements, the uniqueness of this weekend's news is that Read the Rest

_____________________
The Culmination of Limiting Life in the USA
4/2/2013 9:10 AM

The Culmination of Limiting Life in the USA: Is this driven from an Ideology about Global Overpopulation Fears among the Elite that see the world from their Private Jet Window???

Is the President’s Efforts to Map Human brains a path towards using Eugenics to Select what Human traits are desirable and which are NOT???? And will this chart a course that takes Humanity away from the True Creator of Life and interrupt LIBERTY for all people if that Person is deemed not desirable due to a Human Determined Defect?? Does this set Humanity in the USA and the world on a dangerous slippery Slope of Limiting Unalienable Rights???


Eugenics is the applied science of the bio-social movement which advocates practices to improve the genetic composition of a population, usually a human population.[2][3] Eugenics is widely referred to as a pseudoscience [4] and is infamously linked to the racial policies that led to Nazi Germany's Holocaust.[5].

It is a social philosophy advocating the improvement of human hereditary traits through the promotion of higher reproduction of more desired people and traits, and reduced reproduction of less desired people and traits.[6]


Obama unveils White House brain-mapping project



By Maggie Fox, Senior Writer, NBC News

President Obama pitched a human brain research initiative on Tuesday that he likened to the Human Genome Project to map all the human DNA, and said it will not only help find cures for diseases such as Alzheimer’s and autism, but create jobs and drive economic growth.

Obama proposed $100 million in federal funding to kick start the Brain Research through Advancing Innovative Neurotechnologies or BRAIN Initiative.


It's not clear just what the initiative will do. Obama and collins said they'd appointed a "dream team" of experts to lay out the agenda -- they should report back before the end of the summer. They are led by neurobiologists Cori Bargmann of Rockefeller University and William Newsome of Stanford University.


The public-private initiative, with money from groups such as the Howard Hughes Medical Institute and Microsoft co-founder Paul Allen's brain mapping project, aims to find a way to take pictures of the brain in action in real time.

The $100 million funding will come from the National Institutes of Health, the Defense Advanced Research Projects Agency and the National Science Foundation, the White House said.

“We want to understand the brain to know how we reason, how we memorize, how we learn, how we move, how our emotions work. These abilities define us, yet we hardly understand any of it," said Miyoung Chun, vice president of science programs at The Kavli Foundation, which is taking part in the initiative and which funds basic research in neuroscience and physics.

The project has some big money and some big science to build on. Allen pumped another $300 million into his institute's brain mapping initiative a year ago, and has published freely available maps of the human and mouse brains. The Howard Hughes Medical Institute built a whole research campus devoted to brain science, called Janelia Farm, in Virginia.

Arati Prabhakar, director of the Defense Advanced Research Projects Agency (DARPA) pointed to a project that allowed a quadriplegic woman to control a robot arm with her thoughts alone.


Not everybody is happy about a centralized, administration-led project. Michael Eisen, a biologist at the University of California at Berkeley, said earlier this year that grand projects in biology such as Project ENCODE for DNA analysis were emerging as the "greatest threat" to individual discovery-driven science.

"It's one thing to fund neuroscience, another to have a centralized 10-year project to 'solve the brain,'" Eisen wrote in a Twitter update in February.



There needs to be Limits Placed on where this Kind of Practice Intersects with Political and Congressional Legislative Law and Order in Effecting decisions made on the Individual basis of LIFE because as you see in Washington State trying to Force Capital Investment in Limiting Life would set a dangerous Precedent on Just How and why Life would be allowed or not.

Senator: Abortion insurance bill won't move forward


OLYMPIA, Wash. (AP) - Despite a majority of Washington state senators having signed a letter in support of a measure requiring insurers to cover abortion, a key lawmaker said Monday that it will not advance from her committee.

Republican Sen. Randi Becker of Eatonville, chairwoman of the Senate Health Care Committee, announced that the bill would not move forward hours after her panel heard testimony on it.

"Even advocates of the bill admit that there is no need for the bill today as every health insurer in the state of Washington provides for abortion coverage," said Becker in a written statement. "As such, the decision of the committee is that the bill will not move forward from here this year."


The hearing attracted more than 250 people from both sides of the abortion issue, with many of those wearing rival buttons and ribbons and dressed in dueling color schemes left to watch the proceedings on a screen in a nearby room.

The bill, which supporters call the Reproductive Parity Act, was passed by the House by a 53-43 vote in February, with mostly Democrats in favor and Republicans opposed.

Gov. Jay Inslee, a Democrat and a bill supporter, has repeatedly urged the Senate to vote on it.

The bill would make Washington the first state to require insurers that cover maternity care - which they all most do - to also pay for abortions. Similar legislation has been introduced each session in the New York State Assembly for over a decade but has never received a public hearing.

In testimony before Becker's committee, those supporting the measure said it would ensure continued abortion coverage in the state once federal health care reforms taking effect next year trigger bureaucratic hurdles for insurers paying for the procedure.

The bill would ensure that a woman's decision about whether to get an abortion "is left with her, her family, her health-care provider and her God," said Elaine Rose, CEO of Planned Parenthood Votes Northwest, addressing the committee. "Not with government, not with her insurance plan, and with all due respect, not with any of you."

Opponents countered that abortion insurance coverage is already widespread in the state and that the bill is unnecessary. They also said the measure threatens the religious freedoms of businesses and individuals who oppose abortion rights and do not want to subsidize the cost of the procedure for others.

"You all have the second amendment right to bear arms, to own a gun," said Peggy O'Ban, spokeswoman for Human Life of Washington. "But does that mean I have to buy it for you?"


JRH Comment: God bless State Senator Randi Becker for preventing murderous Leftist Democrats from mandating insurance companies to kill unborn babies for birth control.
___________________________
© Tony Newbill
Edited by John R. Houk

Thursday, May 24, 2012

End the Fed Theme – Tony Newbill

End the Fed
From 5/9/12 to 5/24/12

JRH 5/24/12
__________________
Fed approves Chinese bank purchase of US bank

From Tony Newbill
Sent: 5/9/2012 2:50 PM

Will this be the End of the Dollar by opening up trade of the Gold backed Yuan in the USA in direct competition with the Government backed Dollar?

+++++++++++++++++++
This is why we are Screwed!!!!!!

From Tony Newbill
Sent: 5/19/2012 4:29 PM

This is why we are Screwed!!!!!!

http://en.wikipedia.org/wiki/Tariff_Act_of_1789   .... we became Dependent when we should Be Independent at a balanced rate of domestic supply production.   

This is the result of the SERFDOM of our trade policy Insolvency......


The Final Turning

A Presentation by MoneyNews and Newsmax

“This Wasn’t An Accident”

Newt Gingrich, Lou Dobbs, Larry Kudlow, John Bolton, Dick Morris and other Champions of Freedom Have Come Together to Reveal the Truth.

Hear Their Testimony. See the Evidence. Prepare for the Unthinkable!

[SlantRight Editor: To View Video Click Newsmax Link. The bottom line of the video is a sales pitch.]


The unit at the center of JPMorgan Chase & Co.'s recently revealed $2 billion trading loss has built up more than $100 billion in positions in asset-backed securities and structured products, the Financial Times said.

The newspaper said this portfolio comprises the "complex, risky bonds at the center of the financial crisis in 2008," but did not say whether any of the holdings are in unhedged positions.

It said the portfolio is separate from holdings in credit derivatives that led to the trading loss by JPMorgan's chief investment office, which has sparked much criticism of the largest U.S. bank and its chief executive, Jamie Dimon.

JPMorgan spokeswoman Kristin Lemkau declined immediate comment. (
Read more)



Published on May 21, 2012 by GeraldCelenteChannel

++++++++++++++++++++++++++++
Putting it all together , this could be the economic false flag even .....

The Recovery Is an Illusion

[SlantRight Editor: There are several graphs/charts for you econ minded people in this link. I am excerpting a portion below the graphs/charts.]

The Fed may call it something else, because QE3 will not play well politically to announce the infusion of a couple of trillion dollars into the banking system. The Fed will say it is necessary to stimulate a slowing economy.

This is a very dangerous situation, one that eventually will lead to a massive decline in the U.S. dollar. Global confidence has been lost in the dollar. I think the Fed's next action will trigger renewed dollar selling, leading to dollar inflation, which is already starting to accelerate. Weakness in the dollar tends to spike oil prices, a big factor behind domestic inflation.

We have been having inflation in a weak economy. Instead of being driven by strong demand—which is a relatively happy circumstance for having inflation—inflation today has been created by a weak dollar and unstable monetary policy by the Fed. That is not a happy circumstance. It is a circumstance that promises much higher inflation as people look at preserving their assets.

TGR: The federal government has been reporting inflation between 2% to 3%. You just updated your 2012 hyperinflation report. What is real inflation right now?

JW: The government's numbers are accurate by its definition, but they are not what people think they are. Over the years, the methodologies have changed.

The average person thinks that the Consumer Price Index (CPI) measures inflation, that it reflects the cost of maintaining a constant standard of living. They also believe that it reflects out-of-pocket inflation. It does not, nor does it reflect the cost of maintaining a constant standard of living.

After World War II, the CPI was used to measure the cost of inflation for a fixed basket of goods and services. For example the basket of goods might contain a gallon of gas, a pound of steak and a loaf of bread. The government would measure the same, year after year. However much the price had gone up, that was how much inflation had gone up.

In the 1990s, Fed Chairman Alan Greenspan and Michael Boskin, then chairman of the Council of Economic Advisors, started pushing the story that the CPI was overstating inflation. They figured that adjusting the CPI reporting would reduce the Social Security cost-of-living adjustments. That is why they did it. If they had not changed the CPI, Social Security checks would be about double what they are today.

But at the same time, they introduced a substitution that made the CPI worthless for anyone trying to use it as a target for calculating, for example, what their minimum return on investment should be in order to maintain their standard of living.

If you use an inflation rate that is too low, you get a too-strong inflation growth. You see recovery that is not there, which is what we've been seeing.  (Read Entirety)
+++++++++++++++++++++
This is How the US Government and the federal Reserve are Containing Inflation

Sent by Tony Newbill
Sent: 5/24/2012 11:14 AM

This is How the US Government and the federal Reserve are Containing Inflation, but it will unleash Hyper Inflation event that will over night collapse the Free Markets Once the Federal Reserve action is rejected by foreign Suppliers of the BRIC Nations!!!


By The Time Operation Twist 1 Is Over, The Fed Will Have Quietly Completed 40% Of Operation Twist 2 As Well

Submitted by Tyler Durden
05/20/2012 21:36 -0400
Zero Hedge

By the time Operation Twist (1) ends in just over 40 days time, on June 30, Fed Chairman Ben Bernanke, according to his previously announced "loose" target, will hope to have extended the average maturity of all bonds in the System Open Market Account (SOMA) to a record of roughly 100 months from 75 month at the onset of the program in October 2011. After all the sole purpose of Twist was to load up the Fed's portfolio with duration, forcing the rest of the market to shift its investing curve even further into risky assets, as the Fed will have effectively onboarded the bulk of securities in the 3-4% return interval. Now as we showed back in early April, hopes that the Fed will simply continue with Operation Twist 2 after the end of "season" 1, as suggested by some clueless "access journalists" who merely relay what they are told by higher powers, are completely misguided as the Fed simply does not have enough short-term securities (1-3 years) to sell, and would have at most 2 months of inventory for a continued sterilized operation. Which however, does not mean that the Fed can not be quietly ramping up its operations in the ongoing Twisting episode. Because as Stone McCarthy demonstrates, as of the past week, the Fed has already surpassed its 100 month maturity target of 100 months, and is at 102.82 months as of May 16. And this is with 6 more weeks of Twist to go: at the current rate of SOMA purchases, the Fed will have a total portfolio average maturity of just shy of 110 months by June 30! Which means that contrary to market expectations of what the Fed's own stated goal may have been, Bernanke will have gobbled up nearly 40% more long-dated Flow relative to estimates! In other words, Ben does not need to do a full blown Operation Twist 2 episode: by the time Twist 1 is over, he will have attained nearly 40% of the goals of the next potential sterilized operation.

Weighted Average Maturity of Fed SOMA Treasury Holdings

Why is this important? Well, recall that over a month ago Goldman Sachs itself admitted what we have been saying for over 3 years: it is not stock that matters... it is flow. Recall the Goldman punchline:

    ...we have found some evidence that at the very long end of the yield curve, where Operation Twist is concentrated, it may be not just the stock of securities held by the Fed but also the ongoing flow of purchases that matters for yields...

And there you have it.

What the finding above means is that the Fed has been ramping risk assets, read the S&P even more than where it should have been, based on simple flow models, and that contrary to market expectations, the S&P500 should have been about 40% lower compared to where it will be on June 30 if the Fed has pursued its stated goal, and targeted solely a 100 month average maturity.

Which has a rather scary implication for the stock market: if and when Ben announces that Twist ends on June 30 with no successor program, stocks will immediately react, and realize that the Fed's SOMA account holds well more than the expected long-end, and that without further "flow" forcing more 30 year paper into the gaping maw of Bernanke, stocks will have no reason at all to maintain their prior epic surge (all else equal, whcih (sic) it won't be).

It also means that unless Bernanke is willing to see the stock market plunge ahead of the Obama re-election, which he isn't, or at least the President most certainly isn't, that the June Fed statement will be quite interesting, as not only will Bernanke have to maintain a program which is now uncovered to have been monetizing the long-end at a rate 40% higher than estimated, but will still have just two more months of capacity left for any potential future sterilized market propping experiments.

Chart 2- The extent of Twist

Which only leaves the Fed with one option: that of making Bill Gross, and all those others who are loading up on duration-sensitive securities which will benefit from an LSAP based episode, very, very happy. Of course, the list of such assets most definitely includes gold.
____________________________
Edited by John R. Houk