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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bart13 who wrote (100923)	2/1/2009 1:31:06 PM
From: Real Man	Read Replies (1) \| Respond to of 110194

I'm more on Noland's "bankruptcy of the country" side as the next risk. IMHO. Message 25375243

To: bart13 who wrote (100923)	2/1/2009 9:20:16 PM
From: pogohere	2 Recommendations Respond to of 110194

From the "wouldn't that be ironic" dept: "I still think we're in deflation, but it sure could turn fast like the turn into deflation last year that surprised so many." Given the chart on reserves at the Fed here: Message 25374837 and "With ZIRP in December rates on reserves have gone negative. So, I guess things reversed then." Message 25374923 If the Fed is not paying interest on reserves as a result of the decrease in the funds rate to 0%-0.25%, wouldn't it be ironic if banks decided to move some reserves out of the Fed and into gold? It wouldn't take much to help create some velocity and a move in gold prices. I wouldn't expect it to be widely publicized, as neither was this: “Illicit Drug Money Kept Banking System Afloat” U.N. crime chief says drug money flowed into banks Reuters Sunday, January 25, 2009 VIENNA: The United Nations' crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday. Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year. "In many instances, drug money is currently the only liquid investment capital," Costa was quoted as saying by Profil. "In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor." The United Nations Office on Drugs and Crime had found evidence that "interbank loans were funded by money that originated from drug trade and other illegal activities," Costa was quoted as saying. There were "signs that some banks were rescued in that way." Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved. He only said Austria was not on top of his list, Profil said. iht.com ============================================== Banks going to the Drug Cartels for cash? Wouldn’t be the first time! Check out this expose: Dillon, Read & Co. Inc. and the Aristocracy of Prison Profits: Part I Inside the Financial World, Government Agencies and their Private Contractors Lies a Hidden System of Money Laundering, Drug Trafficking and Rigged Stock Market Riches narconews.com