IS U.S. BOND TAPERING A FARCE?

On September 15, 2008 under the haloed auspices of Hank Paulson the once venerated house of Lehman Brothers filed for a USD 617 bn corporate bankruptcy-the largest bankruptcy ever filed. Many intellectuals of the standing of Larry Summers and Warren Buffett who though on the sidelines, were also involved in the process, requested the Treasury to negotiate a closure of Bad trades made by Lehman with it’s counterparties. People like Paulson and Tim Geithner played roughshod and while Bear Stearns, Barings and Lehman were forced into liquidation Merrill Lynch was merged with BOA and Goldman Sachs was thrown a massive multi-billion lifeline by Buffett. 2 Institutions survived Lehman collapsed in the process.

On that horrendous Sunday, the debt issued by the US Fed at USD 14 trillion-the largest national debt held by any nation in the World. If viewers who get up early, would have noticed that the lights at the White House were on even on a Sunday at 4.30 AM IST ostensibly to settle the Fed debt Ceiling that expires on Monday night US Time.

Importantly, after the monthly Fed Bond Buying programme of USD 85 Bn a month, the US National Debt now stands at USD 17 Tn and is set to rise as the socialist black President wishes to give away free medicare to all. Free medicare in a capitalist nation? Or did we hear a socialist state?

So while Obama may have majority in Senate, he has none in House of Representatives. A compromise to pay the Government bills will mean that the US Debt ceiling will be again raised from USD 17 tn to maybe USD 18 Tn or the Medicare Bill on which this guy has won two terms will collapse.

The QE I to III, sequester and Fed Taper are nothing but hogwash meant to destroy the impoverished nations of Asia so that Imperialist America flourishes and wastes enough money in Tunisia, Somalia, Haiti, Iran, Iraq, Afghanistan and Pakistan.

I repeat there can be no Fed Taper or withdrawal without the US Government itself collapses. This is in fact what that nation deserves for enforcing trade in virtually everything across the World in USDs and forcing every national government to play subservient to a self created world gendarme