Jul 19

- The Coming Crash Is Simply the Normalization of a Mispriced Market (OfTwoMinds, July 17, 2014):

The correlation between the Fed’s monetary heroin production and the stock market will break down as the market normalizes.

In the spirit of calling things what they are, longtime correspondent Harun I. explains that market crashes are simply distorted/mispriced economies attempting to normalize. 

Here’s Harun’s commentary:

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Jul 18

- If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks (Economic Collapse, July 16, 2014):

The basic necessities in life just keep getting more expensive.  On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent.  That is particularly distressing to me, because I am known to love chocolate.  But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay.  Last month, it was coffee.  J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent.  And Starbucks has announced a bunch of price increases across the board on their coffee products.  Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive.  If this keeps up, could we eventually see armed guards in grocery stores and on food trucks? Continue reading »

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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 »

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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.

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Jul 07

H/t reader squodgy:

“Like I said…all banksters are in it together to look after each other.

The crunch is imminent, no doubt.”

Related info:

- Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed’s ‘Safe Hands’

- THE BLAZE: What Really Happened To The German Gold Housed In The United States? (Video)

- China Slowly Buying Up The Physical Gold Market – Germany’s Gold Is Gone (Video)

- Bundesbank Moves Away From Specific Gold Repatriation Schedule

- Dr. Paul Craig Roberts: U.S. Gold Gone (Video)

- Dr. Paul Craig Roberts And Dave Kranzler: The Hows And Whys Of Gold Price Manipulation


gold123

- Germany’s failed attempts to get its gold back from the US ‘opens question of its sovereignty’ (RT, July 7, 2014):

There is neither real criticism from German politicians, nor any visible efforts to return German gold held in the US, so it seems that US controls Germany, economic analyst Michael Mross told RT.

In one of its recent reports Bloomberg claimed that Germany decided not to repatriate its gold reserves from the US, instead the Bundesbank issued an official statement that underscores it’s “trust” in its American partners. According to Bloomberg, Germany gave up after repatriating just 5 tons of gold, though earlier it was told that it would get all the German gold back by 2020.

RT: What’s really behind Germany’s efforts to get its gold reserves back?

Michael Mross: These German efforts to get back gold reserves are not really there. They are talking about it but it is only a simple and ridiculous theatre in my opinion. I cannot see any effort to do it. What we have is lack to re-transport or take back, 300 tons before 2020, but also this is ridiculous – last year they took back only 37 tons. At the end of the day, it is to make the public calm, but it is not really an effort to take back the gold. Continue reading »

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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 »

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Jul 07

H/t reader M.G.:

“How they are white washing rate hikes”

“Suddenly, higher interest rates are a good thing. Rubbish about hiring, the way they twist the numbers is criminal………..
This is what I have been worried about, greedy bankers are going after the higher level of the remaining middle class. These are the folks sitting on multiple properties which they owe more on than they are currently worth……still waiting for that so-called recovery that just isn’t happening.
The FED is a privately held bank, and they serve the greedy, not the nation. They are now digging in their tentacles more deeply. The US has no control of the FED. The worst thing, as my friend who has infinite unknown has said again and again, is the creation of such a monster.

From the article:

“Continued labor market improvements alongside a pickup in second-half growth …”

And yes, you really can’t make this stuff up!

- RECOVERY: June Full-Time Jobs Plunge By Over Half A Million, Part-Time Jobs Surge By 800K, Most Since 1993

- RECOVERY: People Not In Labor Force Rise To New Record, Participation Rate Remains At 35 Year Lows

- US Unemployment Rate Hits 37.2%

- RECOVERY: The Number Of Working Age Americans Without A Job Has Risen By 27 MILLION Since 2000

- Another Million People Drop Out Of Labor Force – Now An All Time High 92 Million People Are Out Of The Labor Force

- Wall Street Adviser: Actual Unemployment Is 37.2%, ‘Misery Index’ Worst In 40 Years

Flashback:

- Welcome to the Recovery (New York Times, by Timothy Geithner, August 2, 2010)

And as I’ve said before …

‘Recovery’ is the ‘Greatest Depression’

The U.S. will simply not be able to pay for higher interest rates on its debt (and the Fed will sooner or later go back into high gear quantitative easing mode).

Prepare for collapse … and chaos!


dollar-notes

- Why things could be about to change for the dollar (CNBC, July 7, 2014):

After a weekend of celebrating America’s birthday, traders could come back to the desks Monday and buy its currency, with the stage set for a U.S. dollar breakout in the second half of the year.

Strategists and traders have been predicting it for months: 2014 was supposed to be the year of the dollar, where the Federal Reserve’s tapering of quantitative easing and an improving economy would boost the greenback’s value against other currencies, where central banks are easing or dealing with economic or geopolitical challenges.

But they’ve been wrong. Continue reading »

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Jul 06

bernanke-yellen

Like Bernanke, Yellen is NOT wrong, just evil.

Paul-Krugman-Keynesians-Fail
Mission accomplished!


- Yellen Is Flat-Out Wrong: Financial Bubbles Are Caused By The Fed, Not The Market (ZeroHedge, July 5, 2014):

More of the same from Janet Yellen in her latest speech, but her focus on “resilience” caught my attention as it relates to very recent developments. The taper threat experience last year may have been a warning, but it doesn’t seem like it resonated with her or policymakers. The major bond selloff, which led to global ripples of crisis in credit, funding and currencies, was the opposite of flexibility. Perhaps a better definition of the word would be a place to start.

But her meaning was a bit different, in that it is clear (from this speech and prior assertions, wrong as they were, about the mid-2000’s housing bubble) she sees bubbles as “market” events in which the central bank’s role is primarily shock absorption. In other words, idiot investors wholly of their own accord create bubbles and it’s the job of the munificent and enlightened Federal Reserve to help ensure that such “market” madness is “contained” without further economic destruction.

Continue reading »

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Jul 03

- The Next Global Meltdown Is Baked In: Connecting the Dots Between Oil, Debt, Interest Rates and Risk (Of Two Minds, June 30, 2014)

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Jun 29

- The Delusion Of Perpetual Motion; Bob Shiller Warns “I’m Definitely Concerned” (ZeroHedge, June 29, 2014):

I am definitely concerned. When was [the cyclically adjusted P/E ratio or CAPE] higher than it is now? I can tell you: 1929, 2000 and 2007;” warned Bob Shiller this week, adding that “it’s likely to turn down again, just like it did the last two times.”

As John Hussman explains,

The central thesis among investors at present is that they are “forced” to hold stocks, given the alternative of zero short-term interest rates and long-term interest rates well below the level of recent decades (though yields were regularly at or below current levels prior to the 1960s, which didn’t stop equities from being regularly priced to achieve long-term returns well above 10% annually). The corollary is that investors seem to believe that as long as interest rates are held near zero, stocks will continue to advance at a positive or even average or above-average rate. Continue reading »

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Jun 27


Added: Apr 15, 2014

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Jun 27

Former Governor Warsh Slams Fed’s “Reverse Robin Hood” Policies (ZeroHedge, June 26, 2014):

Isn’t it odd that when ‘officials’ are no longer part of the status-quo-sustainers, how the truthiness flows… As former Fed Governor Kevin Warsh explained this morning, “on the fairness point – if you have access to credit, if you’ve got a big balance sheet, the Fed has made you richer,” concluding rather too honestly for some people’s liking, “I would say [Fed policy] has been in some sense Reverse Robin Hood.” The bottom line, he chides, “this is a way to make the well to do more well to do because that’s all the Federal Reserve can do.”

 

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Jun 27

Germany’s “End The Fed” Protest Organizer Gets Car Fire-Bombed (ZeroHedge, June 26, 2014):

Anyone saying “the Fedeal Reserve Act is bad” in Germany is, according to Lars Maehrholz, looked upon by the mainstream as being a Nazi. The organizer of the widespread “End The Fed” rallies that we discussed previously, explained that he is not only under attack by the main stream media and political system in Germany but also physical threats that resulted in a car he was in getting fire bombed by an anonymous perp.

As WeAreChange reports,

Lars received threats that this would happen online and now his friends car that he was in, was set on fire.

The police say that the car caught on fire by itself and are not investigating the case. Luckily Lars and his friend were not in the car when it was set on fire.

In this video Luke Rudkowski talks to Lars Maehrholz a skydiver that became the main organizer of the massive Monday peace vigils in Berlin.

The Monday peace vigil is an autonomous fully independent movement that gained massive popularity in Berlin that is against the U.S Federal Reserve.

 

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Jun 26

- Stone Cold Proof That Government Economic Numbers Are Being Highly Manipulated (Economic Collapse, June 25, 2014):

How in the world does the government expect us to trust the economic numbers that they give us anymore?  For a long time, many have suspected that they were being manipulated, and as you will see below we now have stone cold proof that this is indeed the case.  But first, let’s talk about the revised GDP number for the first quarter of 2014 that was just released.  Initially, they told us that the U.S. economy only shrank by 0.1 percent in Q1.  Then that was revised down to a 1.0 percent contraction, and now we are being informed that the economy actually contracted by a whopping 2.9 percent during the first quarter.  So what are we actually supposed to believe?  Sometimes I almost get the feeling that government bureaucrats are just throwing darts at a dartboard in order to get these numbers.  Of course that is not actually true, but how do we know that we can actually trust the numbers that they give to us?

Over at shadowstats.com, John Williams publishes alternative economic statistics that he believes are much more realistic than the government numbers.  According to his figures, the U.S. economy has actually been continually contracting since 2005.  That would mean that we have been in a recession for the last nine years.

Could it be possible that he is right and the bureaucrats in Washington D.C. are wrong? Continue reading »

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Jun 26

- The State Of The Union: A Friendly Reminder Where We Stand Now (ZeroHedge, June 25, 2014):

Spend more than a few minutes watching CNBC (yes all 2,000 of you) and you will be told how great things are, how great things will be, and how (no matter how bad the immediate ‘event’ is) the hockey-stick of future exceptionalism will always be there. In the interests of full disclosure, that is wrong and these four charts show why… a friendly reminder of the state of the union…

20140625_oomph

…But then there is all this wonderful wealth creation… Continue reading »

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Jun 23

Aaaand it’s gone …

- THE BLAZE: What Really Happened To The German Gold Housed In The United States? (Video)

- China Slowly Buying Up The Physical Gold Market – Germany’s Gold Is Gone (Video)

- Bundesbank Moves Away From Specific Gold Repatriation Schedule

- Dr. Paul Craig Roberts: U.S. Gold Gone (Video)

- Dr. Paul Craig Roberts And Dave Kranzler: The Hows And Whys Of Gold Price Manipulation

This, by the way, is post no. 26,000!!!


Gold-gold-GOLD

Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed’s “Safe Hands” (ZeroHedge, June 23, 2014):

Several months after it was revealed that Germany was able to only recover a miserable 5 tons of its gold in all of 2013 (under 10% of the 84 tons it was scheduled to repatriate), Germany appears to have given up entirely in its attempt to recover gold which simply is not there, and as Michael Krieger reports, citing Bloomberg, has decided to keep “it” (by “it” we don’t mean the gold since that clearly has not been at the Fed for decades, but merely the paper promises of ownership: for more see China’s gold rehypothecation scandal and how the unwind works) at the NY Fed after all. That is to say, in the “safe hands” of former Goldmanite Bill Dudley.

Via Mike Krieger’s Liberty Blitzkrieg blog,

Just last week, I published a post titled, Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany, which subsequently went viral. Interestingly, only a few days later we find out that Germany’s very own criminal political class has decided it will continue to store the nation’s gold in New York rather than bring it back home as had been the intention. It’s quite ironic that just as protests against the fascist Federal Reserve are spreading throughout the land, the political class officially decides to keep Germany’s treasure across the Atlantic, in care of none other than The Fed itself. Continue reading »

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Jun 21

“End The Fed” Rallies Are Exploding Throughout Germany (Liberty Blitzkrieg, June 19, 2014):

This is a fascinating development and one that I had no idea was happening until today. It seems that rallies are spreading throughout Germany protesting the corrupt and dying global status quo. One of the key targets of these groups is the U.S. Federal Reserve system, which as I and many others have maintained, is the core cancer infecting the entire planet.

As I tweeted earlier today:

According to the organizer of these rallies, they have now spread to up to 100 cities and have a combined attendee base of around 20,000. What is also interesting, is that the mainstream media in Germany is calling them Nazis. In Germany, if you don’t support Central Banking, this apparently means you are a Nazi. What a joke. Just more proof mainstream media everywhere is complete and total propaganda. It is also a good sign, since it shows the desperate lengths to which the power structure will go to keep their criminal ponzi alive.

Do these folks seem like Nazis to you?

In Liberty,
Michael Krieger

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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 »

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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 »

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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 »

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Jun 07

FYI.



Added: Jun 4, 2014



Added: Apr 4, 2014

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Jun 07

AIPAC1

- A Terrible Price to Pay (Veterans Today, June 7, 2014):

In 1913 The City of London Zionist private Central Bankers successfully hijacked the American Monetary Production and Distribution System.

This was done by use of  stealth, bribery and massive political influence and was completely illegal despite any and all claims to the otherwise.

This terrible Treason and Sedition by top USG Officials placed complete control over the whole American economy in the hands of the World Zionists (WZs) and their International Crime Syndicate, the IZCS.

This essentially gave the WZs control over all the personal property, the fruits of labor and production of almost every normal American and all their futures with NO oversight of Congress or any institution of the USG at all, NONE.

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Jun 05

gold-123

The Gold Conspiracy (ZeroHedge, June 5, 2014):

As increasingly more conspiracy ‘theories’ become conspiracy ‘facts’, The History Channel discusses “The Gold Conspiracy” in this brief documentary.

As The History Channel introduces:

Gold. It is one of the most precious metals in the world. A glittering commodity so rare that people will go to great lengths to obtain it. But who sets the price? And what are the secret methods to control its value? Uncover the clandestine world surrounding the highly prized precious metal. How much gold does the United States really have–and where is it locked away? Is the American government overstating the amount of gold in its reserves to create the mystique of financial superiority?

Continue reading »

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Jun 02

Alan Greenspan:

“There is no other agency of government which can over-rule actions that we take.”

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Jun 02

Aaaand it’s gone!



Added: Jan 8, 2014

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May 30

- Still Think the Fed Isn’t Fueling Inflation? Check Out This Chart (Washington’s Blog, May 30, 2014)

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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 »

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May 27

H/t reader squodgy:

“This is strange.

Seems the Bonds were dumped and the Rothschilds through the JP Morgan channel have bought them under a shell trader to prop up the US Fed….again Rothschild & JP Morgan plus Goldman Sachs.”


- Who Is The New Secret Buyer Of U.S. Debt? (Alt-Market, May 21, 2014):

On the surface, the economic atmosphere of the U.S. has appeared rather calm and uneventful. Stocks are up, employment isn’t great but jobs aren’t collapsing into the void (at least not openly), and the U.S. dollar seems to be going strong. Peel away the thin veneer, however, and a different financial horror show is revealed.

U.S. stocks have enjoyed unprecedented crash protection due to a steady infusion of fiat money from the Federal Reserve known as quantitative easing. With the advent of the “taper”, QE is now swiftly coming to a close (as is evident in the overall reduction in treasury market purchases), and is slated to end by this fall, if not sooner. Continue reading »

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May 26

- Jim Rickards: “It Could Be A Failure To Deliver Physical Gold,” “Physical Gold Is Disappearing, There’s A Mountain of Paper Gold. . . . So A Failure to Deliver Could Cause Panic Buying of Gold.” (InvestmentWatch, May 23, 2014):

And what might be the first snowflake to move? 

“It could be a failure to deliver physical gold,” Rickards suggested. “Physical gold is disappearing, there’s a mountain of paper gold. . . . So a failure to deliver could cause panic buying of gold.”

http://www.moneynews.com/StreetTalk/James-Rickards-Dennis-Kneale-Financial-Crisis-Economy/2014/05/20/id/572264/?ns_mail_uid=33506595&ns_mail_job=1570212_05222014&promo_code=crvzhkqc

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May 24

- Federal Reserve Admits Truth In Internal Memo: “Prices Continue To Rise Between 3% And 33%” (Zerohedge, May 24, 2014):

We are confused: on one hand the Fed is injecting hundreds of billions of liquidity into the market, boosting the S&P to all time highs and making the rich richer (Piketty taking Excel lessons from Rogoff notwithstanding) while the economy remains stagnant because, according to the BLS, inflation is too low, and as everyone knows the biggest lament of the impoverished middle class is that “the value of my dollar isn’t being destroyed fast enough for me to feel confident about the future.” On the other hand, the very same Federal Reserve Bank (of Chicago), just announced that as a result of “prices continuing to increase between 3% and 33%” (!), beginning May 27 it is hiking the prices in its cafeteria. So, clearly prices are rising at a 33% clip due to, how does the IMF put it, lowflation, right? Oh, and harsh weather.

 

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