Jul 27

Vulture

- Clintonians Join Vulture Flock Over Argentina (Truthdig, July 24, 2014):

It is no surprise that right-wing Republican and hedge fund billionaire Paul Singer should be trying to wring hundreds of millions of dollars out of Argentina for a debt that Buenos Aires doesn’t really owe him. He screwed tens of millions of dollars out of poverty-stricken Peru and the Republic of Congo using the same financial sleight of hand. What may surprise people, however, is that key leaders in the administration of former President Bill Clinton are helping him do it.

Singer, who owns Elliot Management, a $17 billion hedge fund, is the leading “vulture investor”—a financial speculator who buys up the bonds of debt strapped nations for pennies on the dollar and then demands payment in full. When Argentina defaulted on its foreign debt in 2001, Singer moved in and bought up $48 million in bonds. He is now demanding that those bonds be paid at full-face value—$1.5 billion—plus interest and fees. It is a move that could derail Argentina’s long climb back into solvency, as well as undermine debt settlements worldwide. Continue reading »

Tags: , , , , , , , , , ,

Jul 23

With 1 Week Left Until Argentina’s ‘D’efault-Day, Judge Blasts “Judgments Are Judgments” (ZeroHedge, July 22, 2014):

Day after day, headlines from Argentina implore Judge Griesa to do the “fair, responsible” thing and lift his judgment that holdouts get paid before current bondholders receive their payments… and day after day Argentina’s demands are met with silence or denials. Today, though, with 1 week left until Argentina must put up or shut up, Judge Griesa has come out swinging…

  • *U.S. JUDGE SAYS OF ARGENTINA RULINGS: ‘JUDGMENTS ARE JUDGMENTS
  • *ARGENTINA’S ‘INCENDIARY` RHETORIC `UNFORTUNATE,’ JUDGE SAYS
  • *U.S. JUDGE URGES ‘SENSIBLE STEPS’ TO AVOID ARGENTINA DEFAULT

While CDS spreads have surged once again, bonds trade with default probabilities around only 50% which, according to Jefferies “are expensive on underestimating the risk of default.” Continue reading »

Tags: , , , , , , , , , ,

Jul 21

- First Detroit, Now Flint Warns Bankruptcy “Train Is Headed For The Cliff” (ZeroHedge, July 19, 2014):

Flint may be Michigan’s second city to plunge into bankruptcy unless retirees accept cuts in health benefits that threaten to unravel a balanced budget. As Crain’s Detroit reports, Emergency Manager Darnell Earley (Flint’s third emergency leader since it was placed under state control in 2011) warned “If we have no ability to mitigate the cost of retiree health care, that’s going to make it very difficult for the city to remain financially stable over the next few years.” As Eric Scorsone notes, “Flint’s at the forefront, but a lot of cities are on the same train, and that train is headed for the cliff.”

As Crains Detroit reports,

As Detroit draws worldwide attention for its record $18 billion bankruptcy, Flint demonstrates the plight of U.S. cities where unfunded post-retirement costs rival or exceed pension liabilities. In Michigan alone in 2011, municipalities had nearly $13 billion in health-care liabilities for retirees, compared with about $3 billion for pensions. Flint is among 17 cities and school districts under some form of state control. Continue reading »

Tags: , , , , , , , , , , , , ,

Jul 18

From the article:

“Actually, the main reason why a deluge of defaults is inevitable, whether Beijing likes it or not, is that as we will report shortly, far from enaging in any deleveraging or “tapering” of credit injections, in the first quarter, Chinese banks saw the biggest increase in their assets in history! And since the bulk of these are in the form of loans going to already insolvent and materially impaired business, all China is doing now is throwing trillions in good money after bad. Which also means that in deciding to delay the Minsky unwind if only by a few months, China has just assured that when the collapse finally comes, it will be that much more acute.”


Second Chinese Bond Default On Deck (ZeroHedge, July 17, 2014):

It seems like it was only yesterday when the first official Chinese corporate default in history (there have been many other ones in the past but all were quickly masked by the government to avoid a panic), Chaori Solar, entered the history books. Now it’s time for default number in the country’s onshore bond market as Huatong Road & Bridge Group, a company whose businesses includ bridge and highway construction, real estate, coal, eco-friendly construction materials and agriculture-related projects, based in the northern province of Shanxi, said it may miss a 400 million yuan ($64.5 million) note payment due July 23, according to a statement to the Shanghai Clearing House yesterday.

Continue reading »

Tags: , , , , ,

Jul 16

- Why We’re Doomed: Interest and Debt (Washington’s Blog, July 15, 2014):

Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt.

If you want to know why the Status Quo is unsustainable, just look at interest and debt. These are not difficult to understand: debt is a loan that must be paid back or discharged/written off and the loss absorbed by the lender. Interest is paid on the debt to compensate the owner of the money for the risk of loaning it to a borrower.

It’s easy to see what’s happening with debt and the real economy (as measured by GDP, gross domestic product): debt is skyrocketing while real growth is stagnant. Put another way–we have to create a ton of debt to get a pound of growth.

There is no other way to interpret this chart.

debt-GDP
source: Acting Man

The Status Quo has only survived this crushing expansion of debt by dropping interest rates to historic lows. This is a chart of the yield on the 10-year Treasury bond, which reflects the extraordinary decline in interest rates over the past two decades. Continue reading »

Tags: , , , , , , , , , ,

Jul 15

Prepare for collapse.


bis-bank-for-international-settlements-basel-switzerland

- The Head Of ‘The Central Bank Of The World’ Warns That Another Great Financial Crisis May Be Coming (Economic Collapse, July 13, 2014):

Most people have never heard of Jaime Caruana even though he is the head of an immensely powerful organization.  He has been serving as the General Manager of the Bank for International Settlements since 2009, and he will continue in that role until 2017.  The Bank for International Settlements is a rather boring name, and very few people realize that it is at the very core of our centrally-planned global financial system.  So when Jaime Caruana speaks, people should listen.  And the fact that he recently warned that the global financial system is currently “more fragile” in many ways than it was just prior to the collapse of Lehman Brothers should set off all sorts of alarm bells.  Speaking of the financial markets, Caruana ominously declared that “it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally” and he noted that “markets can stay irrational longer than you can stay solvent”.  In other words, he is saying what I have been saying for so long.  The behavior of the financial markets has become completely divorced from economic reality, and at some point there is going to be a massive correction.

So why would the head of ‘the central bank of the world’ choose this moment to issue such a chilling warning? Continue reading »

Tags: , , , , , , , , , ,

Jul 14

Hmmh.

Alex Jones now – like Obama – using the latest state of  the art MASS HYPNOSIS techniques of Dr. Milton Erickson, M.D. ?

Start listening from 12:50 into the video …

“Now is the time to …”

- PDF: Obama’s_Use_of_Hidden_Hypnosis_techniques_in_His_Speeches:

Elementary pacing examples from Obama include, “now is the time”, and “as I stand here before you.”

These statements are undeniably true in the simplest terms and commonly used parts of his pacing techniques, because of course now is the time, and if he is there speaking, of course he is standing before us.

These are things the hypnotist says that are verifiably true, and used to lower our critical factor defenses to allow implantation of subconscious messages.



Added: Jul 12, 2014

Related info:

- 70% Devaluation Of The US Dollar Coming – We Are Headed For A Crisis Of Biblical Proportions – IMF Christine Lagarde’s Warning! (Video)

Tags: , , , , , , , , , , , , , , ,

Jul 13

From the article:

“It is just amazing who disconnected government are from the reality of the economy. Everything is geared to move toward the confiscation of wealth not reforming the system. These people are just brain-dead.”


Bremen-buergerschaft

- German Municipals In Trouble (Armstrong Economics, July 10, 2014):

Part of our job is monitoring everything everywhere. We are gathering data om whatever moves on a global basis. I have stated numerous times, it is IMPOSSIBLE to forecast a single market in isolation because the wildcard comes from contagions set in motion elsewhere. It is like sunning on the beach and there is a tidal wave coming because of an earthquake you didn’t know happened. Unless you monitor the world, you cannot even forecast the weather for tomorrow. It would all be just dumb-luck and chance.

I have been warning that about 50% of the municipal governments in Germany are on the verge of bankruptcy. Continue reading »

Tags: , , , , , , , , , , , ,

Jul 13

- “Waiting For Armageddon” – Say It Isn’t So? (Zerohedge, July 11, 2014):

Brent Johnson, of Santiago Capital, provides a brief but broad overview of the state of the state in the world’s precious metals markets (and monetary policy implications). Often accused of “waiting for Armageddon”, Johnson is quick to note that he would love to be wrong… “If I thought it possible to carry out the next 40 years the same as the last – by sticking to the status quo – I’d do it.” But it’s not… and no matter how many “say it isn’t so” you hear from the mainstream, it is inevitable (when not if). Simply put, he warns, if you do have to have capital markets exposure – make sure you have insurance – you need it now more than ever.

Gold is the best insurance....

Full presentation below…

Watch the presentation HERE.

Tags: , , , , , , , , , , ,

Jul 12

Wile_E_Coyote-Dont_Look_Down

CEO Of Europe’s Largest Insurer Pops The Utopia Bubble: “Nothing Is Solved And Everybody Knows It” (ZeroHedge, July 11, 2014):

It’s one thing for a tinfoil fringe blog to repeat, month after month, that nothing in Europe has been fixed, that Draghi’s disastrous policies are merely concentraing and stockpiling even more unresolved problems – for now ignored courtesy of the gentle sprinkle of ZIRP, or rather NIRP “fairy dust” – and that just like Portugal showed panic can grip the entire continent literally overnight because everyone knows this. It is something entirely different for the CEO of Europe’s largest insurer to make the same statement.

From Bloomberg:

When asking Allianz SE’s chief investment officer about the euro area’s sovereign debt woes, be prepared for an emphatic response.

The fundamental problems are not solved and everybody knows it,” Maximilian Zimmerer said at Bloomberg LP’s London office. The “euro crisis is not over,” he said.

While extraordinary stimulus from the European Central Bank has encouraged investors to pile into the region’s government bonds this year, that’s not a sufficient remedy for Zimmerer, who oversees 556 billion euros ($757 billion) at Europe’s largest insurer. Countries are still building up their debt piles, and that’s storing up trouble for the future, he said.

Continue reading »

Tags: , , , , , , , , , , , , ,

Jul 10

Portugal’s Largest Bank Misses Bond Payment; Bonds Collapse (ZeroHedge, July 9, 2014):

Brussels, we have a problem. As we warned 6 weeks ago, Espirito Santo International SA – is in a “serious financial condition” according to a central bank driven external audit by KPMG identified “irregularities in its accounts.” Sure enough, the ‘ponzi-like’ maneuvers have left the bank unable to pay its bonds as Bloomberg reports bonds plunged to record lows after a parent company delayed payments on short-term notes. More importantly, given the divisively dependent nature of the domestic sovereign bond market (and hence the health of the EU) and its banking system, it is noteworthy that Portuguese bond risk has surged to 4 month highs with the biggest 2-day spike in a year. As one analyst noted, “The bigger question is whether the government will have to get involved,” leaving the EU taxpayer on the hook once again (for fear of M.A.D. threats) as most critically, it “will have to step in to prevent systemic repercussions?

20140709_ESP

As Bloomberg reports,

Banco Espirito Santo has been “adequately isolated” by the Bank of Portugal from the financial problems, Parliamentary Affairs Minister Luis Marques Guedes said on July 3. The bank was the only one of the three biggest publicly traded Portuguese lenders that didn’t request state aid after the country received a European Union-led bailout in May 2011. Continue reading »

Tags: , , , , , , , ,

Jul 07

H/t reader M.G.:

“You need to read to the last sentence to get what I have been saying for months. Less than half the world international transactions are now completed in US dollars……..”


US economist Joseph Stiglitz
US economist Joseph Stiglitz

- Stiglitz: I’m ‘very uncomfortable’ with current stock levels (CNBC, July 7, 2014):

Nobel Prize-winning economist Joseph Stiglitz said on Monday he is “very uncomfortable” with current stock market levels, arguing they do not equal a strong economic recovery in the United States.

The Dow breached 17,000 points on Thursday before the U.S. markets closed for the long July Fourth weekend. The jump came after the U.S. government reported the economy created a better-than-expected 288,000 jobs in June and the unemployment rate fell to 6.1 percent.

“The reason the stock market is high, in part, is that interest rates are low, wages are low and the emerging markets are still growing much faster than the U.S. economy, let alone Europe,” Stiglitz said. He pointed to the fact that many U.S.-listed multinationals are increasingly getting a large chunk of their profits from emerging markets. Continue reading »

Tags: , , , , , , , , ,

Jul 03

Lagarde-Christine

- Christine Lagarde – The Most Dangerous Woman in the World – IMF Advocates Taking Pensions & Extending Maturities of Gov’t Debt to Prevent Redemption (Armstrong Economics, June 28, 2014):

I have gone on record that the most dangerous organization is the now French led IMF with Christine Lagarde at the helm, which has presented a concept report that debt cuts for over-indebted states are uncompromising and are to be performed more effectively in the future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem. Yes you read correctly, The new IMF paper is described in great detail exactly how to now allow the private sector, which has invested in government bonds, to be expropriated to pay for the national debts of the socialist governments.

I have been warning that there is an idea that has been running around behind the curtain that the national debt of the USA could be settled by usurping all pension funds in the country. Here is a remarkable blueprint that throws all previous considerations concerning the purchase of government bonds over the cliff. The IMF working paper from December 2013 states boldly:

“The distinction between external debt and domestic debt can be quite important. Domestic debt issued in domestic currency typically offers a far wider range of partial default options than does foreign currency–denominated external debt. Financial repression has already been mentioned; governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand.”

id/Page 8 (IMF-Sovereign-Debt-Crisis)

Already in October 2013, the International Monetary Fund (IMF), suggested the Euro Crisis should be handled by raising taxes. The IMF lobbied for a property tax in Europe that should be imposed where there are no such taxes. The IMF has advocated for a general “debt tax” in the amount of 10 percent for each household in the Eurozone, which also has only modest savings. Continue reading »

Tags: , , , , , , , , , , , , ,

Jul 03

We’ve been here before:

Flashback:

- Roosevelt Gold Confiscation In 1933: ‘No American Could Visit A Safe Deposit Box For Some Time Without A Government Agent Accompanying Him’

- What Gold Nationalization Really Means

- On This Day In 1933:

By January 1934, Roosevelt increased the dollar price of gold from $20.67 to $35, thus devaluing the dollar by 70 percentwhile increasing the value of gold that the government now owned.

Governments Worldwide Are Implementing Orwellian Gold Confiscation Today. You Just Haven’t Realized it Yet.

- What 40 Years Of Gold Confiscation By The US Government Looks Like

Only this time it will be much easier since the US dollar is backed by NOTHING.



Published on Jul 1, 2014

- Official 2014 IMF Forecast Based on ‘Magic Number Seven’-Steve Quayle (USAWatchdog, July 2, 2014):

Radio talk show veteran and 10 time published author, Steve Quayle, says dark powers are at work in the financial markets at the highest levels of global government.  Quayle contends, “First of all, the illuminati and the occult are one in the same with hidden meanings to the general population, but announcements to people on the inside.”  At the beginning of 2014, the head of the International Monetary Fund (IMF), Christine Lagarde, gave a primer on numerology to an audience at the National Press Club in Washington, D.C.  She did it as a set up to an official IMF forecast for “what we should expect for 2014.”   Why is this important now?  The IMF forecast was based on what Lagarde called the “magic 7,” and July is the seventh month of the year.  Lagarde is overtly using numerology to forecast big changes this year and this month.  For example, Lagarde pointed out that 2014 will “mark the 7th anniversary of the financial market jitters” that started in 2007.  If you individually add up the numbers of the year 2014 (2+0+1+4=7), you get the number 7.  Lagarde also said that 2014 “will mark the 70th anniversary, 70th anniversary, drop the zero, seven, of the Bretton Woods Conference that actually gave birth to the IMF” (7 + 0 = 7).  Lagarde also said, “And it will be the 25th anniversary of the fall of the Berlin Wall, 25th” (2 + 5 = 7).  Lagarde also brings up the G-20 out of nowhere.  Is that a reference to a date?  (G is the 7the letter of the alphabet and this might be a reference to 7/20/2014.)   Quayle explains, “People have to understand the number 7 to realize why this is critical.  The number 7 is used 287 times; it’s used in the Old and New Testament.  What is critical about this is these people rule their lives by the stars and numerology.  Never in anything have I monitored in my 25 years being on talk radio that I have witnessed such a blatant presentation of the number 7.  When she says it’s ‘quite a number,’ yes, it’s God’s number, but these people worship their god and their god is Lucifer.” Continue reading »

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Jul 03


Added: Jun 29, 2014

Description:

Chris Martenson, who holds a PhD in pathology and an MBA, contends 2008 was just a warm up to a much bigger calamity. Martenson says, “2008 was the shot across the bow, and that’s when our credit experiment broke, and we have been doing everything possible to paper over it since. . . . When you take real stuff out of the ground, you grow food, you take oil out of the ground, you process ore into steel, and you manufacture real things–that’s real wealth. The claims (such as stocks, bonds and currencies) have to be in proportion to the real wealth, and the claims have been growing and growing and growing for so long that they are way out of balance to the real stuff, and the real stuff isn’t growing like it used to. You can see that in the GDP numbers for the U.S. or the world at large. Growth is slowing, slowing, slowing, and the claims are getting larger and larger. This represents a huge and gigantic source of potential energy. There is a gap there and it’s going to get closed. Only one of two things are going to happen: (1) real stuff starts expanding like crazy, or (2) the claims get destroyed. That’s what we are talking about when we talk about a market crash. The claims get destroyed. People get wiped out. The people who don’t get ruined are people safely over in the real wealth already. If you own an unencumbered farm, if you own a productive asset, if you own gold or silver, or if you own your house outright, you are going to be vastly safer than . . . someone who is leveraged and hinged into this other system.”

Join Greg Hunter as he goes One-on-One with Chris Martenson co-founder of PeakProsperity.com.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Jul 01

China Admits First Official Local-Government Loan Default (ZeroHedge, July 1, 2014):

There has been a growing number of defaults since China first broke its non-payment cherry earlier this year. Names like Chaori Solar have “promised” to pay back the money they owe, only to falter on that promise mere months after a temporary reprieve. Wide-scale panic has for now been avoided by liquidity provision to banks (not shadow-banks) and mini-stimulus which many assumed was targeted at keeping the state-owned enterprises (SOEs) alive no matter what. That ‘hope’ all changed this weekend… As Bloomberg reports, Qilu Bank’s annual report shows that Licheng district urban construction development company has not paid its loan interest…”To the best of our knowledge, this is the first official disclosure of a LGFV default on a bank loan.”

 

Tags: , , , , , ,

Jun 30

- Argentina Must Pay $539 Million Today – Default Imminent (ZeroHedge, June 30, 2014):

Today is the day that Paul Singer and his Elliot Capital Management team have been waiting for. Thanks to SCOTUS’ decision, as Bloomberg reports, Argentina is poised to miss a bond payment today, putting the country on the brink of its second default in 13 years, after a U.S. court blocked the cash from being distributed until the government settles with creditors from the previous debt debacle. The decade-long battle between Argentina and holdout creditors from the country’s $95 billion default in 2001 is coming to a head as the judge’s decision “closes Argentina’s options to finally force it to negotiate,” and “should now stop using these delay tactics and get serious.” Argentina sees it a different way, the ruling “is merely a sophisticated way of of trying to bring us down to our knees before global usurpers,” according to the economy minister Axel Kicillof.

Amid all this, Argentina’ MERVAL remains near all-time record highs… (as equity hopes of devaluation trump bond fears of default)

20140630_MERVAL

As Bloomberg notes, if non-payment were to occur today, default would not be officially triggered yet (forcing Argentina’s hand to negotiate)… Continue reading »

Tags: , , , , , , , ,

Jun 21

Quantitative easing =  printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
- Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
- Ron Paul


weimar-hyperinflation

- Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else (Economic Collapse, June 19, 2014):

Have you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.  In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about…

And it is really hard to get too upset with Janet Yellen. Continue reading »

Tags: , , , , , , , , , , , , ,

Jun 21

Let me again say, for all those that still believe that we have just stupid & incompetent politicians (all of the time), that our politicians are nothing but elite puppets, and that they are are just following the orders of their masters. Period.

Here’s Obama in 2006:

Obama Debt Ceiling

Couldn’t have said it better, yet … 

- U.S. Government Debt Up $6.666 Trillion Under Obama (CNS News, Feb 4, 2014)

These elitists totally control and own our government, the Fed, the banksters, the media etc.

The destruction of the middle class and America is done by design.

This is a controlled demolition and also the greatest bank robbery in world history (and the banks are doing the robbing).

And the worst is still coming.


- Marc Faber Explains The Fed’s Dilemma In 15 Words (ZeroHedge, June 20, 2014):

For over 5 years we have been explaining the hole that the fed has been digging (most ironically here). This morning’s op-ed by Warsh and Druckenmiller highlights many of the problems but we leave it to Marc Faber to succinctly sum up the dilemma that the Fed faces (and by dilemma we mean, the plan) – “The more they print, the more inequality there is, the weaker the economy will become.” Simply put, “it’s a catastrophe,” Faber told CNBC, “what the Fed has done is to lift asset prices, and the cost of living. In the meantime, the cost of living increases are higher than the wage increases. The typical American household income is going down in real terms.” Recovery?

As we noted previously, the greatest irony of the entire “record income inequality” debate…

One can read 696 page neo-Marxist tomes “explaining” inequality in a way only an economist could – by ignoring the untold destruction economists themselves have unleashed on society with their “scientific theories” (and providing a “solution” to the inequality problem which we warned readers was coming back in September of 2011) or one can read the following 139 words by Elliott’s Paul Singer which in two short paragraphs explains everything one needs to know about America’s record class inequality, including precisely who is the man responsible: Continue reading »

Tags: , , , , , , , , , , , ,

Jun 19

Is the Fed trying to start the very bond run it is allegedly attempting to prevent? Read the following, then decide.

Fed Gates Paper_0

- Is The Fed Trying To Create A “Bond Run” Panic? Yes… In Its Own Words (ZeroHedge, June 19, 2014):

One of the most significant, if underrpeported stories of the week, was the announcement from Monday that in order to “prevent” bank runs, the Fed is preparing to impose “exit fee” gates on bond funds, in what, the official narrative goes, is an attempt to prevent a panicked rush for the exits. Of course, this is diametrically opposite of what the truth is.

This is what we said: “it goes without saying that “discouraging investors” from withdrawing funds is the last thing on the Fed’s mind, which knows very well that when it comes to investor behavior all that matters is how the Fed’s future intentions are discounted. And with this unprecedented step, the Fed is sending a very clear message: it may be next year, or next month, or next week, but quite soon you, dear retail bond-fund investor, will be gated and will be unable to pull your money…. what is the obvious desired outcome, at least by the Fed? Why a wholesale panic withdrawal from bond funds now, while the gates are still open, and since those trillions in bond funds have to be allocated somewhere, where will they go but… stock funds.”

But wait, this would mean that instead of attempting to prevent a rush for the exits, the Fed is in fact doing the opposite, and is seeking to force investors to sell those sticky bonds they are holding on to and destroying the propaganda of a recovery (remember: you can’t pitch a stable inflation-driven recovery fable when the 10Y is trading at 2.50% in the process launching the very run for the exits it is supposedly trying to avoid.

Pure conspiracy theory right? Continue reading »

Tags: , , , , ,

Jun 19

- Argentine Default Looms; Refuses To Negotiate; Admits Next Bond Payment “Impossible” (ZeroHedge, June 19, 2014):

Argentina’s attempt to work around SCOTUS decision in favor of the ‘holdouts’ was rejected (under anti-evasion orders) last night leaving Argentina no alternative but to threaten to default on its debt. The government called it “impossible” to pay bond service due on June 30, because payment to holders of restructured bonds could not be made unless the ‘holdouts’ were paid $1.33 billion at the same time (and Argentina’s economy minister argues could be up to $15 bn) which the distressed country clearly does not have. For the first time in 12 years, Argentina has agreed to negotiate with the ‘holdouts’ (has renegged on that negotiation) who refused to participate in two restructurings that followed Argentina’s 2002 default but it seems increasingly likely that an even of default looms for Argentina.

Via Reuters,

Buenos Aires is locked in a 12-year legal fight with creditors who refused to participate in two restructurings that followed Argentina’s 2002 default on $100 billion in bonds.

Continue reading »

Tags: , , , , , ,

Jun 19

FYI.



Added: June 17, 2014

Tags: , , , , , , , , , , , , ,

Jun 17

herding sheep

- Fed Prepares For Bond-Fund Runs, Looking At Imposing “Exit Fee” Gates (ZeroHedge, June 16, 2014):

It was two short years ago that the Fed, in its relentless attempt to push everyone into the biggest equity bubble of all time, did something many thought was merely a backdoor ploy to forcibly reallocate capital out of the $2.7 trillion money market industry and into stocks when, as we wrote in July 2012, it contemplated imposing suspensions of fund redemptions to “allow for the orderly liquidation of funds assets.” Or in other words “gate” money markets.

Continue reading »

Tags: , , , , , , , ,

Jun 16

- The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars (Economic Collapse, June 15, 2014):

What would you say if I told you that Americans are nearly 60 TRILLION dollars in debt?  Well, it is true.  When you total up all forms of debt including government debt, business debt, mortgage debt and consumer debt, we are 59.4 trillion dollars in debt.  That is an amount of money so large that it is difficult to describe it with words.  For example, if you were alive when Jesus Christ was born and you had spent 80 million dollars every single day since then, you still would not have spent 59.4 trillion dollars by now.  And most of this debt has been accumulated in recent decades.  If you go back 40 years ago, total debt in America was sitting at about 2.2 trillion dollars.  Somehow over the past four decades we have allowed the total amount of debt in the United States to get approximately 27 times larger.  This is utter insanity, and anyone that thinks this is sustainable is completely deluded.  We are living in the greatest debt bubble of all time, and there is no way that this is going to end well.

Just check out the chart…

Total-Debt

When the last recession hit, total debt in America actually started going down for a short period of time. Continue reading »

Tags: , , , , , , , , , ,

Jun 11


Added: Jun 8, 2014

Description:

http://usawatchdog.com/negative-inter… – Andy Hoffman of Miles Franklin warns the negative interest rates installed by the ECB last week signals big trouble. This is a major alarm bell for everyone and a major inflection point. Now, the central banks have dared go where even the Bank of Japan has not gone, which is to take rates to a negative level. You can’t go lower than negative. You go too negative, and people realize it doesn’t work, and people realize there is nothing left.”
Continue reading »

Tags: , , , , , , , , , , , , , , , , , , ,

Jun 10

No Drinking Water In Venezuela Until Bankers Get Paid Back (ZeroHedge, June 9, 2014):

2013 was a good year for Goldman Sachs investments in Emerging Markets, most notably Venezuelan bonds (as they bet on socialism and won). A year later and Goldman’s EM debt portfolio is still loaded with Venezuelan bonds… and the arrears are mounting. As Bloomberg reports, at a time when Venezuela’s record $25 billion in arrears to importers has its citizens waiting hours in line to buy drinking water and crossing borders in search of medicine, President Nicolas Maduro is using the nation’s dwindling supply of dollars to enrich bondholders.

Continue reading »

Tags: , , , , , , ,

May 31

The Euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt

- Here Comes QE In Financial Drag: Draghi’s New ABCP Monetization Ploy (David Stockman’s Contra Corner, May 30, 2014):

You can smell this one coming a mile away:

The European Central Bank and Bank of England on Friday outlined options to reinvigorate the market for bundled bank loans, which was “tarnished” by the global financial crisis, saying a better-functioning market for asset-backed securities can help boost lending to the private sector, particularly small businesses.

Yes, the ECB is now energetically trying to revive the a market for asset-backed commercial paper (ABCP) – the very kind of “toxic-waste” that allegedly nearly took down the financial system during the panic of September 2008. The ECB would have you believe that getting more “liquidity” into the bank loan market for such things as credit card advances, auto paper and small business loans will somehow cause Europe’s debt-besotted businesses and consumers to start borrowing again  thereby reversing the mild (and constructive) trend toward debt reduction that has caused euro area bank loans to decline by about 3% over the past year.

What they are really up to, however, is money-printing and snookering the German sound money camp. That is, the ECB is getting set to launch QE in financial drag by purchasing or discounting ABCP while loudly proclaiming that it’s not “monetizing” any stinking sovereign debt! Continue reading »

Tags: , , , , , , , , , , ,

May 30

- 3 WTF Charts (ZeroHedge, May 29, 2014)

Tags: , , ,

May 28

- What Happened The Last Time Bonds & Stocks Were So Disconnected? (ZeroHedge, May 28, 2014)

Tags: , , , ,

May 28

Dollar-Purchasing-Power-1913-to-2013

- 16 Reasons Why the United States is Going to Hell in a Handbasket (The Survivalist Blog, May 14, 2014):

A couple of weeks a go after expressing an urgency to put our preps into high-gear, several readers asked why that I felt so strongly, about it, and why I felt the “the end” was getting close. I think that is a good and reasonable question, so I decided to do a write up, and offer an explanation. As you can see, I don’t think any one problem or event will cause the collapse of the American empire, but a number of separate but interlocking events and issues.

Another point to consider is that the U.S. government has the resources, and inside information that would allow them to foretell when a major disaster or complete collapse is coming and they have been prepping and building underground bunkers on a mass scale and despite the fact our tax dollars are being used to build those bunkers we are not invited. Continue reading »

Tags: , , , , , , , , , , , , , , , , , , , , , , ,