Rabbits

Once I opened my eyes this morning and saw that the world did not end overnight here in Tornadoville, Kansas, I saw this on Twitter: VOLCKER SEES FED `RABBITS' FROM HAT IF EURO CRISIS HITS U.S.

Then noticed a Bloomberg video (but didn't watch it):

May 31 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker talks about supervision of the global monetary system and the outlook for his namesake rule designed to rein in banks' proprietary trading with Bloomberg Television's Robyn Meredith.

Volcker may be one of the only central bankers with a shred of credibility, but realize it's a shred. Realize he's just another globalist who is conditioning the public and the media on the eve of tomorrow’s Bilderberg meeting in Virginia.

The Bilderberg Group has launched an unprecedented security crackdown with talk of machine guns and high-tech surveillance. But at this point it's just talk. And that's all Volcker is doing. Talking. Floating. Putting the idea out there amid all the CRISIS that the only SOLUTION is a global supervisor to the WORLD'S monetary system. See how this fits with Christine Lagarde's commencement speech at Harvard? Indeed, the only "rabbits" would be more cooperation between central banks around the world.

Here's a solution: let's go back to BANKING. There are banks (very few) in Switzerland that hold in excess of 100% of their deposits as reserves. If every depositor demanded their money, they would be paid and there would still be money left over. That's banking.

In our current system, if everyone demanded their money, not only the bank but nearly the entire monetary system would fail because many many multiples of each dollar have been lent out. That's fractional reserve banking. And it's THE problem.

The idea of Fed rabbits may be why the S&P didn't completely fall out of bed yesterday. As 1314.23 gave way, there was not as much follow through as I would have expected, nor was there as much of an increase in volume as I would have expected. The bounce lasted only 6 days vs. the 15 days of the previous bounce from 4/10-5/1. Perhaps the market still has something up its sleeve. 1291.98 is the tell.  It should fail quickly.  Otherwise there could be a few surprises.