The Mudcat Café TM
Thread #152363   Message #3565248
Posted By: Donuel
08-Oct-13 - 05:34 PM
Thread Name: BS: US Government shutdown
Subject: RE: BS: US Government shutdown
Thank you Bobert and thank you Don Firth.

I have a tendency to state the truth and then go too far like about the mistake invading Iraq or giving away all our money to the banks who lost their shirts/tarps or that Obama would prove to be more of a right centrist than a liberal, you know, going out on a limb until people don't believe a word.

If you don't get what I'm talking about just think of a rich guy fixing a horse race and betting on the sure thing like the horse he poisoned loses.

Trying not to sound paranoid I stated earlier that I have an overactive imagination and was willing to hedge my bets that this whole shutdown has the undercurrent of being a financial coup by billionaires who will risk the people of the US against enormous insurance bet profits off of CDS treasury bonds (bets that the gov will default on its credit.

I am now "nearly" certain this is a real possibility.



1 The Credit default swaps on US Treasury notes are actually tripling from day to day.

2 The gov shut down is no longer about the ACA. The shut down is no longer about the debt (Dems gave the GOP Paul Ryan level budget) The shut down and default are now spoken of in the same breath.

3 The Gov shut down is no longer about any policy in particular except that they say they want something like respect. Why are Dems confused that the repubs don't know what they want? I bet they want big $ even if it sells out the USA.

4 What better time to have a financial coup than when the Justice Dept and the SEC is closed.

HerE it is: I believe the Koch Bros and their friends are willing to bet 20 billion dollars OR MORE that the politicians they have paid for in the house (especially a career bribe taker like Boehner) to shut down the government and let the debt ceiling "technically" fail.

Those who purchased credit default swaps on the US treasury bonds that will have then defaulted, will get 5 to 10 times their investment back.

Bet 10 billion and get 100 billion. Yes Americans will get hurt but remember you are on the world investment stage and you will look like an Oracle for foreseeing the default so far in advance.

Have the big boys like the Koch bros. invested in these CDS on the treasury of the US early and big? I don't know
It is a financial secret like Hedge funds but what is known is that SOMEBODY HAS ! Who exactly I can not know but look for yourself and see what you want to see.
Will you see deliberate investments via CDS or a nervous market selling bonds or nervous nellies buying bonds at larger interest rates from the 1 year to the 30 year note. Watch how when anyone talks about the credit swaps on T bills they are interrupted or shut up quickly. Do moderators wish to avoid a panic? OR is this inside game just sitting there in plain sight, not to be talked about?


Even if the full default of the US does not happen the mega big investors will keep their CDS until it finally does and make billions and trillions collectively.

I first mentioned that this theory is like a Tom Clancy novel - I'm not a fan anyway but he died the day after the post. I will refrain from advising any antidote to the default and profit scheme. Who in their right mind would sell dollars for pesos? Characters like drug lords might, at least in the James Bond action movie version.

Technically I could still be wrong about the corrupt tea partier Congressmen that Koch has paid from the git go, but billionaires will still make huge windfalls on a default, if it happens.