Polestar Communications' "Bond Alert" (BA) #8

This Blog does deliver Polestar Communication’s Bond Alert (BA) #8.  This is the MOST important of our BA‘s, ever.  The full devastating ramifications of this BA #8 are available to subscribers only, but given the ineluctably horrid future now facing ALL Americans and ALL American companies, we are releasing the headlines in this Blog. 

Given the now - quite obviously - panicked nature of the FED Chairman, there is a very likely possibility that even more important BA’s are in our future.  

It is now quite obvious from the article herein sited below that ALL of our observations and predictions presented in ALL of our web pages at www.polestarcomm.com and in ALL of our many Blogs are entirely economically accurate and cyclically true. 

Now this totally insane, newly announced and extended ZIRP (Zero Interest Rate Policy) of the FED will extend all of our predicted future economic phenomena by at least 12 months.  This should not surprise anyone because the FED is the 500 lb Monster in the “Steel Cage” and no one can ignore him, as just proven by these announced insane action’s affects on the Bond Markets!

In short, the dire straights of the US economy are – indeed – MUCH, MUCH worse than even we envisioned and the future of the US and World’s economies, after the “Great Deception of 2012” is fully played out, will be horrific beyond even our imagination, i.e ALL the World, AFTER the “Great Deception of 2012,” does face the most severe of DEFLATIONARY DEPRESSIONS that the modern world has ever experienced.

Are you and your company getting ready for both the short-term spike of the very last buying-surge of the DCBF (Debt Crazed Buying Fanatics) from roughly Summer 2012 to Summer 2013 and then the long-term collapse of ALL economies and the TOTAL conversion of the DCBF to CFSS (Conservative, Frugally Sane Shoppers) over the next 15 to 20 years as the Super Tsunami "Kondratieff's" second and third waves of the Long-Waves do crash over all the earth?

Fed to keep rates low until 2014

NEW YORK (CNNMoney) By Annalyn Censky @CNNMoney January 25, 2012: 5:18 PM ET

“The economy is improving (#1), the Federal Reserve said Wednesday, but not enough to warrant higher interest rates for at least two-and-a-half more years.

The central bank indicated that it expects to keep the federal funds rate near historic lows until late 2014 (#2) -- an extension from the Fed's original pledge to keep rates low through mid 2013.

"[T]he economy has been expanding moderately (#3) , notwithstanding some slowing in global growth," the Fed said in a statement Wednesday. Meanwhile, the program known as Operation Twist (#4) remains in place.

The Fed's main tool for stimulating the economy, the federal funds rate is the interest rate banks charge one another for overnight loans. Keeping it at historic lows as the Fed has done since 2008 (#5) , is meant to stimulate spending by lowering interest rates on everything from mortgages to car and student loans (#6). even at the risk of higher inflation ..."

Oh, like "higher inflation" is NOT a certainty?

What 'Turnip Truck' did the writer of this article fall off of?

Bernanke’s 2012 ‘FED Speak’ (FS) given much greater clarity and accuracy, as follows:

#1 the economy, as measured by all the standards employed prior to this current decade, is collapsing, with true unemployment (a) at over 22%; and the number of Americans (b) on Food Stamps is now one out of seven Americans; and the number of former American Industrial cities collapsing (c) into the most horrid of deserted and crime plagued ‘war zones’ is growing daily; and according to the US Census Bureau, 49% of American Homes (d) receive Public Assistance of one kind or another; and the collapse of the economy is utterly revealed by the fact that the US Government's participation/spending is now 24% of the US GDP (e), while back in 2001 the US Government's spending was ONLY 18% of the total GDP of the United States (in other words, the US economy has collapsed roughly 24% since 2001 or inflation has increased the cost of JUST what the US Government is buying by roughly 22%, there can not be any other reason for this increase to be!); and in 2010 42% (f) of ALL single mothers were on Food Stamps!  

In other words, as proven by a,b,c,d,e, and f (over FIFTY other horrifically dire economic facts are in our Market Review)  the United States of America is - right now - in a rolling contraction that will ultimately be recognized by the PEC (Professional Economist Class) as a Deflationary Depression.  But they will NEVER - EVER - admit  that it was precipitated by the return of the "Kondratieff," with a vengeance! 

#2 by very publicly moving the target period at which the FED MIGHT raise interest rates, Bernanke is violating all historical precedent and abandoning the FED’s covert means of moving the markets and business men by TOTALLY jettisoning the FED’s ‘Moral Suasion’ powers, because Bernanke is TOTALLY panicked with what he does see in the real Balance Sheets of the Federal Reserve Member banks that we can not and are not and will never be allowed to see.

#3 “Moderately” is not an ABSOLUTE lie, but Bernanake has tread perilously close to that invisible line with his description of this current US economy as improving "Moderately?" 

For a clearer understanding, monitor our future Blogs to gain a MUCH more accurate sense of the real difference between the 'Real World' and the MBW (Make Believe World) that is presented by Bernanke's FS (FED Speak) and is force fed to the American public on their FV (Funny Visions), and thus greatly contributes to the 'Sheeple's' RD (Reality Dissonance) that we do cover in some detail on our web site at www.polestarcomm.com - BUT with much greater depth in our Market Review.  (For a complete list of our 'handy-dandy' Polestar Communications' acronyms, go to the bottom of our Home page on our website.)

#4 The utter insanity and most blatant immorality of “Operation Twist” should be clear to all, but unfortunately very, very few (including economists) really do understand the most grievous economic dislocations now absolutely ordained for the United States of America.  The hint of these abominable things to come and that I do know are soon to envelope all Americans in first “Raging Inflation” and then in the GREATEST DEPRESSION of the last 700 * years, is very clearly revealed by all those “Who can see” and all those “Who can hear” by recognizing the colloquial meaning of “TWISTED” or TWISTING” or to “Twist.

Well folks, all meanings of this most insidious and evil verb – when applied to people and people’s activities in this world - does in fact impart a revolting degree of mental illness and perverted and evilly demented mental SICKNESS.

And the entire world will come to know the true meaning of Bernanke's “Operation Twist,” when they do experience what the net effects for all economies in the entire world will be within the next 3 to 7 years.  They will then recognize the accuracy of naming the forced lowering of all long-term rates “Operation TWIST!” 

In short Bernanke has now violated all sound banking principals and for one reason only, i.e. he is TOTALLY panicked.

#5 & #6 Let’s see, from 2008 until 2014, will be SIX YEARS with an insane ZIRP in place.  Folks the only ones who will prosper from this are the FED Member Banks who can borrow at –0-% and lend from 7% (to really great debtors) to 28/30% (on marginal credit card holders). 

Is there anybody reading this that could not make a WHOLE LOT OF MONEY over the next 3 years, if they could borrow UNLIMITED AMOUNTS OF MONEY at –0-% and lend at those rates?

Really folks, this is the LARGEST giveaway to the banks EVER in the history of the WHOLE WORLD!

* 700 years is NOT an exaggeration on our part, as do all readers of our Market Review very well and truly know.  And we do document our predictions with fairly good economic observations and data that even Nicholas Kondratieff would have agreed with.  

In fact, had he had the opportunity to publish his next five books (following his seminal work, that were destroyed by Stalin's Goons) we believe his work would have, quite necessarily, included the Long-Wave and the Biblical evidence that we offer in our Market Review on these matters.