Goldman Sucks predicted yesterday, "The Federal Open Market Committee will likely say it will buy assets such as mortgage-backed securities and U.S. Treasuries after its two-day meeting starting Tuesday" — in other words, full-fledged money printing, and not merely the extension of the "Operation Twist" scheme. Jan Hatzius, Goldman's chief U.S. economist, wrote in a report, "We would be quite surprised if we saw no easing this week."
European bank debt is blowing to pieces, and London has sounded the call to hyperinflate; Goldman claims to know that Bernanke will pull the FOMC behind the City of London's orders, and import hyperinflation to the United States.
London's open calls for a crisis big enough to stampede into line remaining Fed and European opponents to their global Weimar blow-out, is playing out, as Spain spins out of control. The Spanish government was forced to pay mafia rates — over 5% interest on 12- and 18-month bonds — when it went to sell debt on the markets on Tuesday. Rates demanded for 12-month bonds were 70% more than a month ago, and those for 18 months an increase of "only" 55%. Spanish 10 year bonds continued trading on the secondary market at over 7% for most of the day, closing the day barely under, at 6.99%.
Slammed from all sides, the Rajoy government promised today that it will submit a formal request for a European bailout of its private banks shortly, but exactly how much is required will have to wait for the results of two outside audits of bank books. One is due to be released on this Thursday, but the government announced today that results of the more complete audit will not be released in late July as planned, but rather in September! Official non-performing loan figures for the private banks (which no one believes) rose to 8.72% in May, the Bank of Spain reported on June 18; each month the bad debt percentages have been rising, and the rate of increase is rising. No wonder a recent poll found that 9 out of 10 Spaniards doubt the credibility of the bank reports.