THE PRODUCERS GO INTO BANKING, or WHERE DID ALL THOSE DOLLARS GO?
THE PRODUCERS GO INTO BANKING, or WHERE DID ALL THOSE DOLLARS GO? by Dr Joseph P Farrell for Giza Death Star
G.B. and D.W. sent along the articles I want to comment about today, and my commentary is, once again, off the end of the twig of high octane speculation, but it’s still bound to upset a certain type of individual, whom we’ll call the rootless cosmopolitan financial crapitalist class, a.k.a., the central banker.
But first, I want to take a stroll down memory and film-making lane. Do you recall the movie(s) The Producers? There were actually two movie versions of the famous Broadway comedy musical by Mel Brooks, the first starring Gene Wilder and Zero Mostel, and the second Nathan Lane and Matthew Broderick, which was more closely based on the actual musical. But in both versions, a broadway play producer (Zero Mostel and Nathan Lane) hit upon the “brilliant idea” of how to make gobs of money by (1) over-subscribing a Broadway musical production, and (2) finding the absolute worst, most offensive, outlandish, over-the-top in-your-face script they possibly can, all with the explicit purpose of having the entire production fail on opening night, leaving Mostel/Lane and their accountant cohorts, Wilder/Broderick, to abscond with all the money they’ve hauled in by over-subscribing the production. In the Mostel-Wilder version, Mostel works his grifting magic on several elderly ladies with money, selling widow “A” an 80 percent stake in the production, and widow “B” another 70 percent, and so on. Their office safe fills up with money (lots of it), and then the intrepid pair set out to find the absolute worst script they can possibly find. This turns out to be a musical “Springtime for Hitler”, written by a former Nazi who keeps carrier pigeons, and bills the whole thing as a lovable joyous romp with Adolf and Eva in Berchtesgaden. The musical is premiered to an audience of New York liberals, whose jaws are – not surprisingly – on the floor with shock as the opening chorus of SS Officers, goosestepping chorus girls, and a decidedly gay Adolf Hitler (“I’m the German Ethel Merman don’cha know…”) start World War Two. The problem was, the play was so bad and so outlandish, it became a huge success, leaving Mostel/Wilder and Lane/Broderick liable for all the over-subscription, which, of course, they couldn’t pay, and end up in prison. This seems to be the script followed by central banksters recently, except for the prison part of course.
Now, with that in mind, consider the recent “banking” news, as bankers are complaining about the lack of liquidity and a shortage of dollars and all sorts of other stuff. Or, just consider the following two articles:
Let the first article’s statements sink in:
As we warned earlier today, when we previewed the result of today’s repo outcome, the only question would be whether the amount of bids submitted into today’s operation would be higher or lower than yesterday’s $80.05BN to get a sense of whether the funding pressure is easing. The answer: with $83.875BN in total bids submitted, not only was the $75BN operation oversubscribed again, but the total liquidity shortfall rose by almost $4 billion compared to Wednesday morning.
Over-subscribed, you say! Why, in a banking system where there are quadrillions of dollars in derivatives sloshing around in the system, how could that be? (Or, to put it country simple, all those bundles of derivatives and bundles of bundles of derivatives and bundles of bundles of bundles… well, it doesn’t take rocket science to see that Mostel, Lane & Co. were running the system for a heck of a long time, before this latest merely $5,000,000,000 over-subscription occurred.) And still there’s a liquidity problem. Where the heck is all that money going? G.B.’s original email speculated that (1) someone is holding a lot of dollars, (2) suddenly people aren’t trading in dollars, or (3) somehow those dollars are disappearing into some sort of black box, going off world, or perhaps just disappearing into the hidden system. Well, that’s certainly possible, after all, with the FASAB 56 regulations, why bother with nasty things like accounting and accountants? It’s The Producers, but without Broderick-Wilder to keep the double set of books.