Trends For 2011

As we begin 2011, I want to thank my readers for their support and their inputs for the site during 2010.  It appears that more and more folks are interested in knowing “the rest of the story”.  Traffic on the site expanded seven fold during the year.  Interestingly, there were also a numerous amounts of inquiries asking to “buy ad space” on my site.  Just for the record, this site is and always will be 100% sponsor free.  It is a simple philosophy. This site is responsible to everyone and beholding to none.  As the jackboots start attacking the web this year in earnest, and they will, we will try to stay visible as long as possible.

As we face the beginning of 2011we wonder “what next”.  When we look back at 2010, it played out much like we anticipated.  Last spring, we said look out for the summer of hell.  Between the weather and the economy, I think my European readers, especially, would agree it could have been called “hellish”. I believe the lack of economic recovery has created hellish situations in more than 150,000,000 families globally who lost their homes and jobs.

So what is next?  Let’s start with what the Trends Research Institute has published.

By Gerald Celente – Trends Research Institute

KINGSTON, NY, 28 December 2010 — After the tumultuous years of the Great Recession, a battered people may wish that 2011 will bring a return to kinder, gentler times.  But that is not what we are predicting:

1.  Wake-Up Call  The people of all nations, having become convinced of the inability of leaders and know-it-all “arbiters of everything” to fulfill their promises, will do more than just question authority, they will defy it.  The seeds of revolution will be sown….

2.  Crack-Up 2011  In 2011, with the bailout funds and arsenal of other schemes to prop up the economy depleted, teetering economies will collapse, currency wars will ensue, trade barriers will be erected, economic unions will splinter, and the onset of the “Greatest Depression” (a trend we forecasted before the massive bailouts existed) will be recognized by everyone….

3.  Screw the People  As times get even tougher and people get even poorer, the “authorities” will intensify their efforts to extract the funds needed to meet fiscal obligations.  While there will be variations on the theme, the governments’ song will be the same: cut what you give, raise what you take….

4.  Crime Waves  No job + no money + compounding debt = high stress, strained relations, short fuses.  In 2011, with the fuse lit, it will be prime time for Crime Time.  As Gerald Celente says, “When people lose everything and they have nothing left to lose, they lose it.”  And “lose it” they will….

5.  Crackdown on Liberty  As crime rates rise, so will the voices demanding a crackdown.  A national crusade to “Get Tough on Crime” will be waged against the citizenry.  And just as in the “War on Terror,” where “suspected terrorists” are killed before proven guilty or jailed without trial, in the “War on Crime” everyone is a suspect until proven innocent….

6.  Alternative Energy  In laboratories and workshops unnoticed by mainstream analysts, scientific visionaries and entrepreneurs are forging a new physics incorporating principles once thought impossible, working to create devices that liberate more energy than they consume.  What are they, and how long will it be before they can be brought to market?

7.  Journalism 2.0   2011 will mark the year that new methods of news and information distribution will render the 20th century model obsolete.  With its unparalleled reach across borders and language barriers, “Journalism 2.0” has the potential to influence and educate citizens in a way that governments and corporate media moguls would never permit….

8.  Cyberwars   In 2010, every major government acknowledged that Cyberwar was a clear and present danger and, in fact, had already begun.  The demonstrable effects of Cyberwar and its companion, Cybercrime, are already significant – and will come of age in 2011.  Equally disruptive will be the harsh measures taken by global governments to control free access to the web, identify its users, and literally shut down computers that it considers a threat to national security….

9.  Youth of the World Unite  University degrees in hand yet out of work, in debt and with no prospects on the horizon, feeling betrayed and angry, young adults and 20-somethings are mad as hell, and they’re not going to take it anymore.   Not mature enough to control their impulses, the confrontations they engage in will escalate disproportionately….

10.  End of The World!  The closer we get to 2012, the louder the calls will be that “The End is near!”  Among Armageddonites the actual end of the world, and annihilation of the Earth in 2012, is a matter of certainty.  Even the rational and informed may sometimes feel the world is in a perilous state.  Both streams of thought are leading many to reevaluate their chances for personal survival, be it in heaven or on earth….

Gonzalo Lira, one of the most prolific bloggers on the EU economy, thinks as I do that Europe is in deep shit—there’s really no polite way to say it. Back in the spring of 2010, Greece went down the tubes, as its sovereign debt collapsed in price, and its ability to borrow money from the open markets—and thereby continue to operate—for all intents and purposes ceased.

Then in November/December of 2010, the Irish sovereign debt also began to tumble, as it became increasingly clear that Ireland simply does not have the wherewithal to backstop it’s disproportionately large—and insolvent—banking sector. Angela Merkel’s less than clever words in an interview (to the effect that Irish debt holders might have to take a haircut) sparked a rise in Irish debt yields, squeezing Ireland’s ability to borrow fresh cash to keep its insolvent banks afloat—thereby creating the need for a rescue package from the IMF, the UK, the European Union, and the European Central Bank. What was painfully apparent in 2010 was that the Eurozone and the European Union had no mechanism to handle a crisis in one of its member states. Nor is it moving forward to correct the single biggest weakness of the euro scheme—namely, the ability of each member state to issue its own debt.

Possible EMU Collapse: What To Pay Attention To In 2011. After the Greek and Irish bailouts, it looks like Portugal and possibly Belgium are up next in this perverse game of musical chairs played to the tune of sovereign debt, but these smaller countries are dwarfed by Spain: Spain is where the European game is really at.

As Lira pointed out, Spain is twice the size of Greece, Ireland and Portugal combined—Spain is roughly half the size of Germany—Spain has a fiscal deficit of over 11% of GDP for 2010, and a total debt of over 80% of GDP, data here (I am counting the accumulated debt of comunidades autónomas, which is so far 10.2% of GDP and steadily rising; data here)—Spain has an unemployment of over 20%—in short, Spain is trouble. Not “Spain is in trouble”—that’s obvious, but that’s not my point: Spain is trouble, trouble for the German banks that own so much of the Spanish debt. Trouble for Germany, which is propping up its insolvent banks (What, you think German politicians are any less craven than American politicians?). Spain is trouble for the European Union, for what a German banking crisis might mean for the EU as a whole and as an institution.  More than anything, Spain is trouble for the European Financial Stability Facility, because Spain is too big to be saved—and there’s really no way to finesse that hard fact.


Do you know what a lynchpin is? According to the dictionary, a lynchpin is “a pin passed through the end of an axle to keep the wheel in position”. Hence the figure of speech: Without a lynchpin, the wheel comes off, and the whole vehicle crashes. In the case of Europe, the lynchpin can come off awfully fast—think of Ireland. A few impolitic words from Angela Merkel, and suddenly the Irish bond market panics. Suddenly, Ireland is teetering on the brink of insolvency, unable to meet its funding needs. And that was Ireland—all due respect to those wonderful people, but we’re talking a GDP of a paltry $227 billion. Ben Bernanke takes a morning dump bigger than that. What’s Ireland’s $227 billion when compared to Spain’s economy of $1.5 trillion?

How the EU and the ECB handle an eventual Spanish sovereign debt crisis will determine the very future of the European Union.  If the EU and the ECB are clever, and brave, and humble in the face of failure, then they’ll expel Greece, Ireland, Portugal, Spain and Italy from the European Monetary Union. The euro will remain the currency of the stronger economies—France, Holland, Germany—while the weaker economies will go back to their original currencies, and immediately devalue so as to kickstart their economies.

In the US, I believe we are going to see the dollar fail three times in 2011.  First, the dollar is going to be challenged against the Euro.  It will fail, but shortly there after, the Euro will begin its  final demise.  Then the dollar will be challenged as the world’s reserve currency, and once again it will fail and about this time everyone in mainstream media will introduce the world to the Bancor.  Finally,  the federal reserve note will be challenged as the US currency.  Already we are seeing many areas and communities developing alternative currencies in the US.

Commodities rose drastically all throughout 2010: Every single commodity class, every single one of them rising by double digit percentage points—at least.  The winter weather globally will cause huge impacts to food supplies and hyperinflation will rear its ugly head everywhere.

However, I think the most serious stories and realities of 2011 will be civil unrest.  People all over the world have lost faith in their governmental bodies and hungry, homeless, hopeless people are really going to start taking actions, and most of those actions will be violent and irrational.  This is going to invoke governmental response and things are going to escalate quickly.

So, bottom line, if you haven’t followed my advice in 2010, I ask you to reconsider this one question.  If you wake tomorrow morning and there is no job, no food, no utilities, and soldiers on your street to maintain order, are you ready to survive for the next three months without leaving your home?  Are you? I want to wish you all a Happy New Year, but this year, I hope you accept my sincerest wishes to have a safe and secure New Year.

The Holidays Are Not So Rosy in Europe

This is the final update from the currency war front for this year.  For my many readers in Europe, I am sad to say it will not be considered a good year by any stretch.  However, as we have been warning in this series of articles, 2011 looks more like the year the Euro was assassinated.   As we commented in previous articles, the banksters mode of operation now is to break sovereign funds and they are doing a great job at achieving those goals and they are doing it right out in the open in front of us all.  Here’s how it works.  First you force the sovereign to accept severe austerity programs, including raiding pension funds using the IMF and ECB, then you require them to accept “bailout money” and then you use the rating agencies(who you own and control) to downgrade the sovereign’s bonds.  Think I am wrong?  Then read the following with what I just said in mind.

Source: The Economic Collapse

What in the world is happening over in Europe?  Well, it is actually quite simple.  We are witnessing the slow motion collapse of the euro and of the European financial system.  At this point, many analysts are convinced that a full-blown financial implosion in Europe has become inevitable.  Ireland, Spain, Portugal, Italy, France and Belgium are all drowning in an ocean of unsustainable debt.  Meanwhile, Germany and the few other “healthy” members of the EU continue to try to keep all of the balls in the air by bailing everyone out.  But can Germany keep bailing the rest of the EU out indefinitely?  Are the German people going to continue to be willing to hand out gigantic sacks of cash to fix the problems of other EU nations?  The Irish were just bailed out, but their problems are far from over.  There are rumors that Greece will soon need another bailout.  Spain, Portugal, Italy and France have all entered crisis territory.  At the same time, there are a whole host of nations in eastern Europe that are also on the verge of financial collapse.  So is there any hope that a major sovereign debt crisis can be averted at this point?

One would like to think that there is always hope, but each month things just seem to keep getting worse.  Confidence in European government debt continues to plummet.  The yield on 10-year Irish bonds is up to 8.97%.  The yield on 10-year Greek bonds is up to an astounding 12.01%.  The cost of insuring French debt hit a new record high on December 20th.

Bond ratings all over Europe are being slashed or are being threatened with being slashed.  For example, Moody’s Investors Service recently cut Ireland’s bond rating by five levels.  Now there is talk that Spain, Belgium and even France could soon all have their debt significantly downgraded as well. But if the borrowing costs for these troubled nations keep going up, that is just going to add to their financial problems and swell their budget deficits.  In turn, larger budget deficits will cause investors to lose even more confidence.

So how far are we away from a major crisis point? Professor Willem Buiter, the chief economist at Citibank, is warning that quite a few EU nations could financially collapse in the next few months if they are not quickly bailed out….

“The market is not going to wait until March for the EU authorities to get their act together. We could have several sovereign states and banks going under. They are being far too casual.”

Many analysts are even calling for some of these troubled nations to stop using the euro for a while so that they can recover.  In fact, Andrew Bosomworth, the head of portfolio management for Pimco in Europe says that Greece, Ireland and Portugal must all quit the euro at least for a little while if they expect to survive….

“Greece, Ireland and Portugal cannot get back on their feet without either their own currency or large transfer payments.”

Sadly, most Americans don’t realize just how bad the situation in Europe is becoming.  This is truly a historic crisis that is unfolding, just as we predicted it would and just in the manner we predicted it would.

However, since the euro seems at this point to be a “exploit accompli”, the next target is the US Dollar and not necessarily treasury bonds at first.  There are so many state and local governments on the verge of bankruptcy.  This makes the municipal bond market the next “soft” target.  Indeed, a bloodbath in the municipal bond market has already started.

The reason for delay the assault on treasury bonds is the effects that could happen that would careen out of the control of the banksters.  For example, if rates on U.S. government debt eventually hit 8 or 12 percent it will literally be financial Armageddon in this country.  The U.S. government has piled up the biggest mountain of debt in the history of the world, and if we continue piling up debt at the pace that we are, then it will only be a matter of time before the IMF is demanding that we implement our own “austerity measures”.

Many readers recently have commented that I may be over reacting and in fact there are positive things happening in both the economies of the US and Europe.  I do not deny these facts.  However, they are simply dwarfed in scale by these facts.  This blog simply aggregates the facts and from those FACTS draws conclusion as to what might happen next.  I do not gain any pleasure or profit for my efforts, I am simply reporting in detail and opining what may happen next.  I really don’t like what I see happening next.  I believe we may be very close to sound the alarm for general quarters, if you get my drift.

See you next year.

The Insanity on the Currency Warfront

As I have chronicled the global financial meltdown, I have been amazed at the number of economists, traders, and politicians that seem to be in complete denial of the facts of the current crisis and at each step either they have reacted in exactly the opposite manner required to respond to the crisis, or they have failed to act at all for self-centered political reasons.  Some examples include banks sitting on huge cash reserves instead of stimulating the economy, the US CONgress adding $1.3 trillion in new debt with tax cuts, central banks everywhere printing money willy-nilly without regard to the consequences. But most of all, we, as citizens and the main participants in the economy merrily skipping down the road without a care in the world.  That is until you are homeless and hungry, then the feelings are anger and despair.

Then the other day, I had a conversation with an old friend who was a forensic psychologist for one of the US Government alphabet agencies.  He is retired now, but his job was a “profiler”.  He would investigate crimes and other “stuff” to help the agents understand the make-up of the criminal or spy and maybe predict “next” moves.  When I lamented about those around me who I love and respect being in complete denial as to the grave nature of the current economic situation, he explained that this is a very natural response to extreme crisis and distress.  It is called Normalcy Bias.

In short, when humans are faced with natural disasters or a man-made crisis that overwhelms them, they simply slip into complete denial.  Logic and intelligence functions stop.  He pointed out some startling examples.  Consider this.  In Germany in 1937 there were nearly 550,000 Jews.  Long established the Jewish German community was rift with businessmen, intelligentsia, professional people who were just beginning to enjoy a good life again after recovering from World War One.

As Hitler rose to power with his hate mongering and obsession with the Jewish community, it became very apparent that the Jewish community was facing more and more injustices.  Property seizures, business taxed at 100%, lose of civil rights, street beatings by the Brown Shirts, still they did not understand the danger they were in and believed being rational and calm would weather them through the storm.  Only about 100,000 Jews fled in time.  We know the tragic end to that story.

However, things are heating up on the currency warfront.  This week saw many assaults on the US Dollar.  Let me stop here and talk some basics.  Currently the US policy and the FED policy simply has been to print more money.  The US enjoys a unique position when it comes to currency because the US dollar is the world’s transactional currency.  For example, if Germany wishes to buy oil, it must first convert Euros to Dollars to purchase the oil.

However, keeping the dollar as the global transactional currency only lasts as long in the faith of the value of the dollar remains in the rest of the world.  The US actions of the last week, both at the FED and CONgress have gone a long way to weaken that faith.  What is happening is both countries and companies are choosing to use other methods to transact business.

So we are beginning to see news items like this. In spite of its infancy, interest in the offshore renminbi market is growing quickly. Caterpillar, the US-based maker of earth-moving equipment, launched a Rmb1bn ($150m) bond issue last month, making it the second multinational to tap the market, following an August issue by McDonald’s, the fast-food chain.

What makes these bond issues important is that the offshore renminbi market is much more than just a new avenue for debt financing – it is one of the core components in a plan to internationalize the Chinese currency. The process will be a slow one, with more baby steps than giant leaps, and it is by no means assured that the renminbi – also known as the yuan – will forge a decisive international role. But it is one that could have a huge long-term impact on trade, the global financial system and even international politics.

If the plan works, the renminbi could become the main currency for doing business in Asia, the world’s most economically dynamic region, and in the long run it could become a significant part of the reserves of the world’s central banks. Indeed, some Chinese officials have already called for the renminbi to be included in the International Monetary Fund’s basket The timing is also full of portents. The renminbi is starting to go global just as the future of the euro and the dollar is looking increasingly uncertain. Eventually the shift could have an impact on the ability of the US to borrow overseas in its own currency. In China, some have taken to calling their currency the hongbi, or “redback”, to rival America’s greenback – a moniker that gives a flavour of the geopolitical undercurrents.

“We may be on the verge of a financial revolution of truly epic proportions,” says Qu Hongbin, China economist at HSBC, one of the banks pushing the renminbi to its corporate clients. “The world economy is, slowly but surely, moving from greenbacks to redbacks.”of main currencies.

So even though the Fed has flooded the credit markets with cash, spreads haven’t budged because banks don’t know who is still solvent and who is not. This uncertainty, says Ms. Schwartz, is “the basic problem in the credit market. Lending freezes up when lenders are uncertain that would-be borrowers have the resources to repay them. So to assume that the whole problem is inadequate liquidity bypasses the real issue.”

Today, the banks have a problem on the asset side of their ledgers — “all these exotic securities that the market does not know how to value.” “Why are they ‘toxic’?” Ms. Schwartz asks. “They’re toxic because you cannot sell them, you don’t know what they’re worth, your balance sheet is not credible and the whole market freezes up. We don’t know whom to lend to because we don’t know who is sound. So if you could get rid of them, that would be an improvement.”

And economics professor and former Secretary of Labor Robert Reich wrote in 2008:

The underlying problem isn’t a liquidity problem. As I’ve noted elsewhere, the problem is that lenders and investors don’t trust they’ll get their money back because no one trusts that the numbers that purport to value securities are anything but wishful thinking. The trouble, in a nutshell, is that the financial entrepreneurship of recent years — the derivatives, credit default swaps, collateralized debt instruments, and so on — has undermined all notion of true value.

What everyone here is cryptically referring to is the credit derivatives and credit swap facilities which no one knows the value of when conducting a transaction.  Indeed only nine major banks control this $1 quadrillion market.  No I didn’t make a mistake, I said $1 quadrillion! We were just getting our heads around what a trillion really meant.  Here is the fundamental problem with this situation. $1 quadrillion represents about 20 times the Global GDP!  This is pure insanity.  There is no other way to describe what is going on right now.

Economists focus on the whole notion of incentives. People have an incentive sometimes to behave badly, because they can make more money if they can cheat. If our economic system is going to work then we have to make sure that what they gain when they cheat is offset by a system of penalties.

Wall Street insider and New York Times columnist Andrew Ross Sorkin writes:

“They will pick on minor misdemeanors by individual market participants,” said David Einhorn, the hedge fund manager who was among the Cassandras before the financial crisis. To Mr. Einhorn, the government is “not willing to take on significant misbehavior by sizable” firms. “But since there have been almost no big prosecutions, there’s very little evidence that it has stopped bad actors from behaving badly.”

Indeed, polls show that people no longer trust our economic “leaders”. See this and this. A psychologist wrote an essay published by the Wharton School of Business arguing that restoring trust is the key to recovery, and that trust cannot be restored until wrongdoers are held accountable.

Government regulators know this – or at least pay lip service to it – as well. For example, as the Director of the Securities and Exchange Commission’s enforcement division told Congress:

Recovery from the fallout of the financial crisis requires important efforts on various fronts, and vigorous enforcement is an essential component, as aggressive and even-handed enforcement will meet the public’s fair expectation that those whose violations of the law caused severe loss and hardship will be held accountable. And vigorous law enforcement efforts will help vindicate the principles that are fundamental to the fair and proper functioning of our markets: that no one should have an unjust advantage in our markets; that investors have a right to disclosure that complies with the federal securities laws; and that there is a level playing field for all investors.

If people don’t trust their government to enforce the law, government will become more and more impotent in addressing our economic problems. If government leaders take action, the market will not necessarily respond as expected. When government leaders make optimistic statements about the economy, people will no longer believe them.

Then also on the warfront, China and Russia announced they will trade in their own currencies.  In addition, the IMF recently released a report suggesting that given the weakness of the Euro and the Dollar, we should be moving toward a global central bank and a single global currency, which they are calling the Bancor. Several banks no longer are accepting deposits in dollars.

What does this really mean and why should you care about it.  I have one word for you, hyperinflation.  The world is currently pushing back on US policies and are demanding that either the US deal effectively with the deficit or devalue the dollar.  When the pressure gets strong enough, and I believe that could be as soon as the next three months, the US will acquiesce and devalue the dollar by as much as 40%.

This will happen suddenly and overnight!  You will wake up to $8 gas, $5 bread, a 4000 point dip in the Dow and events will rapidly cascade from there to riots in the streets of the US just as we have riots now in Ireland, Greece, Italy, France, and Britain.  The war is reaching fever pitch.  Pay close attention now because bunker time may not be far off.

Let’s Take A Break and Have Some Fun!

As we are in an extended holiday season with Eid, Hanukkah, and Christmas all happening within these last two months of the year, and as we are reading nothing but one big mess after another in MSM, and as we are apparently globally governed by spoiled little children, I decided we just need a break.  I know I do.  So with the help of WORDPRESS, I have made it snow on my blog.  Have fun with it.  You can control the snow with your mouse. Make it come down sideways if you like!  We really need right now to remember what is was like to be a kid and have some fun.  Happy Holidays Everyone.  Gather your families and express your love and gratitude. Peace, if just for a moment, be on us all everywhere.

Is This NASA’s First Attempt at Disclosure?

A massive dark object may be lurking on the edge of our solar system, according to scientists. Most comets that fly into the inner solar system seem to come from the outer region of the Oort cloud –  a region of icy dust and debris left over from the birth of the solar system. The cloud starts from a point about 93 billion miles from the Sun and stretches for around three light years and contains billions of comets, most of them small and hidden. A NASA graphic which illustrates how the Oort Cloud surrounds our solar system.

Scientists believe that an object with a huge mass may be pushing comets towards Earth from the cloud. Now new calculations suggest a large object that is up to four times as big as Jupiter could be responsible for sending them in our direction. The scientists have analyzed the comets in the Oort cloud and deduced that 25 per-cent of them would need a nudge by a body of at least Jupiter size before they changed orbit. Read more: http://www.dailymail.co.uk/sciencetech/article-1336540/Massive-dark-object-lurking-edge-solar-hurling-comets-Earth.html#ixzz17hQS3KpC

There is a convergence here on the timeline.  When you put this information together with the fact that the web bot folks said this would be a period of release, which very well could contain disclosure and in fact that is a main element as I understand it.  And then, you have the ZetaTalk site which discusses in intricate detail the approach of the so-called Planet X or Nibiru coupled with the work of Stitchen and you have to begin to pay attention. Zeta Talk also discusses in detail that while NASA has been, let’s say, not forthcoming with knowledge they have, that events would force NASA to begin the disclosure process.

So, I asked myself a question.  If there was merit to these facts merging, then there must be an increased numbers of meteorites and fireballs.  The best source for that information is the National UFO Reporting Center . Sure enough, there has been a significant increase in the number of fireballs reported and they seem to be increasing monthly.  Check it out as it is an interesting source of raw data.

We will continue from time to time to report on this issue as it seems there is some merit to some of the theories.  NASA certainly seems somewhat jittery and that got my attention.  As you know they had released just recently as well information that they believe we have entered in a cosmic magnetic cloud.  For me, we seem to have a lot of jigsaw pieces on the table.  enough to convince me there is a real picture here of something significant.  Now just to assemble the pieces.

What does all of this mean?  I really am not sure, but I would suggest that we all keeping looking up from time to time. You just never know.

The Iceberg Begins to Reveal Its Size

For months, I have been illustrating that both our officials, our banksters, and central banks globally have not told us how big this economic crisis really is in scope and size.  For nearly three years now they have resisted giving the critical information of who got how much of the bailouts, etc, citing it would weaken certain banks and investors and that would be disastrous to the economic recovery.  $800 billion is the number bandied about.  But as the months move forward and each little bit begins to surface you have to ask, so how big is “the nut”?  Well try on about $10 Trillion and growing! Consider these facts.

Source – Bloomberg

Goldman Sachs Group Inc., which rebounded from the financial crisis to post record profit last year, was a regular borrower from two emergency Federal Reserve programs in 2008 and early 2009, new data show.

The firm borrowed from the Fed’s Term Securities Lending Facility most weeks from March 2008 through April 2009, data released by the Fed today show.  Two units of the New York-based firm borrowed as much as $24.2 billion from the Fed’s Primary Dealer Credit Facility in the weeks after Lehman Brothers Holdings Inc.’s bankruptcy in September 2008.

Chief Executive Officer Lloyd Blankfein, 56, was quoted by Vanity Fair last year as saying the company might have survived the credit crisis without government help.  The firm’s president, Gary Cohn, was more definitive, according to the magazine: “I think we would not have failed,” he was quoted as saying. “We had cash.”

Treasury Secretary Timothy Geithner, who was president of the Federal Reserve Bank of New York during 2008 and 2009, has disputed such an assessment.

“None of them would have survived,” without government help, Geithner said in an interview last December.

Goldman Sachs took a $100 million overnight loan from the Primary Dealer Credit Facility on March 18, 2008, the day after the facility was created in the wake of JPMorgan Chase & Co.’s rescue of Bear Stearns Cos.  At the time, spokesman Michael DuVally said his firm was “testing” the facility and would use it “if doing so makes sense from an economic and funding diversification point of view.”

The firm didn’t borrow any more from the PDCF until Sept. 15, the day that Lehman Brothers filed the largest bankruptcy in U.S. history. On that day Goldman Sachs borrowed $2.5 billion at a 2.25 percent interest rate and furnished the Fed with $2.68 billion of collateral. The firm doubled the amount it borrowed to $5 billion on Sept. 19 and doubled it again to $10 billion on Sept. 22, when Goldman Sachs’s London subsidiary also took its first PDCF loan of $250 million.

At the peak, Goldman Sachs borrowed $24.2 billion on Oct. 15, which included $18 billion for the firm’s U.S. broker-dealer and $6.2 billion for the firm’s London division, the data show. The peak borrowing came two days after the U.S. Treasury Department assembled executives from nine of the country’s biggest financial firms and told them they’d be provided with capital injections from the government, with Goldman Sachs receiving $10 billion from the Troubled Asset Relief Program.

In its quarterly filings with the U.S. Securities and Exchange Commission, Goldman Sachs didn’t disclose that it borrowed from the PDCF.

The firm also borrowed from the Term Securities Lending Facility, which offered longer-term funding than the PDCF’s overnight loans. On March 28, 2008, Goldman Sachs borrowed $7 billion from the Fed’s TSLF in exchange for $8.42 billion of collateral that included $3.5 billion in agency-backed mortgage debt and $4.9 billion of non-agency backed mortgage debt. Before the loan was scheduled to mature on April 25, Goldman Sachs borrowed an additional $4 billion on April 11 and $223 million on April 18.

The two largest TSLF loans to Goldman Sachs were $7.5 billion on Dec. 4, 2008, and the same amount on Dec. 31, 2008, the data show. The firm also didn’t disclose its TSLF borrowing in its quarterly SEC filings, although it provided data on its borrowing to the U.S. Treasury.

When the loans from the PDCF and the TLSF are combined, the firm’s total borrowing from the Fed peaked at $35.39 billion on Oct. 21 and Oct. 22, 2008, the data show.

“In late 2008, many of the U.S. funding markets were clearly broken,” he said. “The Federal Reserve took essential steps to fix these markets and its actions were very successful.”

Goldman Sachs didn’t borrow as much as some of its rivals, while it borrowed more than others. Morgan Stanley, which was the second-biggest U.S. securities firm after Goldman Sachs before the two firms converted into banks in September 2008, borrowed as much as $100.5 billion at its peak on Sept. 29, 2008, the data show. That includes $61.3 billion of loans from the PDCF and $39.2 billion from the TSLF, the data show.

JPMorgan Chase & Co., the second-biggest U.S. bank by assets, borrowed $3 billion from the Primary Dealer Credit Facility on Sept. 15 and as much as $5 billion from the TSLF on Oct. 17, the data show.

“We did not need the liquidity or funding” on the day of Lehman’s bankruptcy, said Jennifer Zuccarelli, a JPMorgan spokeswoman. As Lehman’s collapse triggered broader financial turmoil, “we had been encouraged by our regulators to use their facilities when it was helpful to the marketplace and to remove any stigma,” she said.

Even as JPMorgan borrowed less from those two programs than Goldman Sachs or Morgan Stanley, it was borrowing from a different Fed program that neither Goldman Sachs nor Morgan Stanley tapped. JPMorgan Chase and its Chase Bank USA subsidiary borrowed from the Term Asset Facility, which was established in December 2007 to provide term loans to depositary institutions.

The Federal Reserve has lifted its veil of secrecy regarding special lending programs during the financial crisis, responding to a mandate from Congress by revealing the specifics of transactions with firms like Goldman Sachs and Citigroup.

Critics of the Federal Reserve are poring over the data, seeking red flags regarding potential improprieties. And Congress has asked its Government Accountability Office to sift through the numbers and offer its own analysis.

At the same time, it’s possible that the release of details will end up largely vindicating the Fed for the massive financial support that it gave the economy at a time of severe stress. The emergency loans, in the view of many finance experts, helped to avert a much deeper economic slump. And those loans have now been largely paid back without losses to the central bank.

The numbers are staggering, encompassing more than a dozen emergency programs set up starting in 2007 or 2008. In one program alone the Fed doled out nearly $9 trillion in funds to borrowers such as Morgan Stanley and Merrill Lynch, largely at interest rates below 1 percent. (This program involved overnight loans, so the amount of Fed credit outstanding at any single point in time was much smaller.)

Other programs, with longer-term loans also measured in the trillions of dollars.

The Fed actions were just part of a larger array of government bailouts for the financial industry, which were deeply unpopular with most Americans. Rescue programs run outside the Fed included insurance-style backstops for bank debts and the investments from the Treasury’s $700 billion TARP (Troubled Asset Relief Program).

The Federal Reserved released documents Wednesday identifying the recipients of $3.3 trillion in emergency aid provided at the height of the financial crisis.

“Two European megabanks — Deutsche Bank and Credit Suisse — were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities,” The Huffington Post‘s Shahien Nasiripour reported.

More than $290 billion worth of mortgage securities were sold to Deutsche Bank, a German lender. Credit Suisse, a Swiss bank, got more than $287 billion in mortgage bonds.

“The mortgage purchase program has come under withering criticism by economists and financial experts who believe the Fed’s initiative has unnecessarily inflated the housing market, and prevented the cleansing that pretty much all experts believe is necessary for a full economic rebound,” Nasiripour wrote.

“In addition, the Fed disclosed details of ‘swap’ arrangements with foreign central banks,” the Associated Press reported. “These occurred when the Fed traded much-in-demand dollars for foreign currencies to try to ease credit. The foreign central banks, in turn, lent the dollars to banks in their countries that needed dollar funding. The Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan were involved in the exchanges.”

Banks weren’t the only recipients of Fed money. Corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota also relied the programs.

In 2008, as commercial loans dried up, the Fed became the only source of loans for otherwise creditworthy corporate borrowers.

The data, which took months to compile and had previously been secret, was released Wednesday to comply with July’s Dodd-Frank law overhauling financial regulation.

“The information spans six loan programs as well as currency swaps with other central banks, purchases of mortgage-backed securities and the rescues of Bear Stearns Cos. and American International Group Inc,” Bloomberg noted.

“We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government,” Sen. Bernie Sanders (I-VT) told reporters on Nov. 17.

“The act requires the Fed, after a two-year delay, to identify firms that, following the law’s passage, borrow through its discount window and participate in its purchases or sales of assets such as mortgage-backed securities and Treasuries,” Bloomberg observed.

There is much more to come because even with the resistance from the FED to be transparent, the situation involving IMF and the ECB is not even as transparent as the Fed.  Given the size of this bubble, if it bursts it will make the mortgage bubble look like a dot.  I know…Iknow… Stop.. Please I can’t take anymore.  The reality is where you are going to take, not IF you are going to take it.