Mar 02

Sundown In America

- David Stockman Warns “It’s One Of The Scariest Moments In History” (ZeroHedge, March 1, 2015):

“The Fed is out of control,” exclaims David Stockman – perhaps best known for architecting Reagan’s economic turnaround known as ‘Morning in America’ – adding that “people don’t want to hear the reality and the truth that we’re facing.The following discussion, with Harry Dent, outlines their perspectives on the looming collapse of free market prosperity and the desctruction of American wealth as policymakers “take our economy in a direction that is dangerous, that is not sustainable, and is likely to fully undermine everything that’s been built up and created by the American people over decades and decades.” The Fed, Stockman concludes, “is a rogue institution,” and their actions have led us to “one of the scariest moments in our history… it’s a festering time-bomb and we’re not sure when it will explode.”

Full Discussion:

Continue reading »

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Feb 27

Is This The Most Important Chart For The Future Of The World’s Reserve Currency? (ZeroHedge, Feb 25, 2015):

When it comes to the future of the dollar status as the world’s reserve currency, the most important chart may be the fact that the US is now so woefully buried in debt that another global military conflict appears inevitable…

US debt

… or that it now takes virtually unlimited monetization of the debt shown above to preserve the illusion that the US is not bankrupt, pushing the S&P to record highs in the process…

fed monetary base

… or that the marginal impact of every additional dollar in new debt generates increasingly less economic growth? Continue reading »

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Feb 27

Great-Seal

- Janet Yellen Is Freaking Out About ‘Audit The Fed’ – Here Are 100 Reasons Why She Should Be (End Of The American Dream, Feb 24, 2015):

Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created.  If the Fed is doing everything correctly, why should Yellen be alarmed?  What does she have to hide?

During testimony before Congress on Tuesday, she made “central bank independence” sound like it was the holy grail.  Even though every other government function is debated politically in this country, Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people.  Does any other government agency ever dare to make that claim?

But of course the Federal Reserve is not a government agency.  It is a private banking cartel that has far more power over our money and our economy than anyone else does.  And later on in this article I am going to share with you dozens of reasons why Congress should shut it down. Continue reading »

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Feb 25

Time To Sell

- Fed Warns Equity Valuations “Appear Stretched”, P/E Ratios Are “Somewhat Elevated” (ZeroHedge, Feb 24, 2015):

Confirming last year’s warning, The Fed’s Monetary Policy Report has sent a broad message to the markets in what may be Yellen’s Irrational Exuberance 2.0 moment: “Overall equity valuations by some conventional measures are somewhat higher than their historical average levels, and valuation metrics in some sectors continue to appear stretched relative to historical norms… price-to-earnings and price-to-sales ratios are somewhat elevated, suggesting some valuation pressures… with heightened leverage that is close to levels preceding the financial crisis.”

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Feb 23

federal-reserve-quantitaive-easing-printing-moneygreenspan-cfrDie Rothschilds - Eine Familie beherrscht die Welt
Rothschild puppet Greenspan.

FYI.


- Federal Reserve Insider Alan Greenspan Warns: There Will Be a “Significant Market Event… Something Big Is Going To Happen” (SHFTplan, Feb 22, 2015):

With the Federal Reserve printing trillions upon trillions of dollars to keep the economic system afloat, many investors and financial pundits have surmised that the fundamental economic problems facing the United States during the crash of 2008 have been resolved. Stocks are, after all, at historic highs.

But the insiders know different. And if there’s any single person out there who understands U.S. monetary policy and its long-term effects on domestic and global affairs it’s former Federal Reserve chairman Alan Greenspan. As the head of the world’s most powerful central bank for nearly two decades he’s privy to the insider conversations and government machinations that have brought us to where we are today. Continue reading »

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Feb 09

FYI.


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Feb 08

federal-reserve-dollareuro-collapse

- Alan Greenspan: “Greece Will Leave The Eurozone” And “There Is No Way That I Can Conceive Of The Euro Continuing” (ZeroHedge, Feb 8, 2015):

Every two weeks or so on average, we ask ourselves: why do central bankers only tell the truth after they have quit their post (rhetorically, of course). The last time it was the BOE’s former head Mervyn King, who said that “more monetary stimulus will not help the world economy return to strong growth.” This took place long after the BOE, under his watch, unleashed its own QE back in the early days of the great financial crisis. Another example: back in November, the Fed’s own former head, the person who single-handedly unleashed the great moderation and led to the current terminal financial state where the global economy bounces from one bubble to another even bigger bubble or else everything implodes, Alan Greenspan said “Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It.”

It was another statement by the maestro that has caught the world’s attention, this time opining on Greece, when he told BBC Radio’s the World This Weekend that “Greece will leave the Eurozone. I don’t see that it helps Greece to be in the Euro, and I certainly don’t see that it helps the rest of the Eurozone. It’s just a matter of time before everyone recognizes that parting is the best strategy.… At this stage I don’t see any people who are willing to put up the funds for Greece… All the cards are being held by the members of the Eurozone.” Naturally, this is just what anyone with a functioning frontal lobe (which immediatley excludes all tenured economists) would have said 5 years ago. Continue reading »

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Feb 08

petrodollar

The Death Of The Petrodollar Was Finally Noticed (ZeroHedge, Jan 7, 2015):

Three months ago, we wrote “How The Petrodollar Quietly Died, And Nobody Noticed[38]“, in which we explained in painful detail why far from the simple macroeconomic dogma which immediately prompted the macro tourists to scream that “oil prices dropping are good for US consumers“, the collapse in the price of crude is not only a disaster for oil exporting nations – one which will lead to a series of violent “Arab Springs” across the oil-producing developed world – but far more importantly, have a massive impact on capital markets as a result of the plunge in the most financialized commodity in history. Continue reading »

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Feb 06

2008 will look like a cakewalk in comparison to what lies ahead.


federal-reserve-quantitative-easing-printing-money

- Chinese Rating Agency Warns Coming Crisis Is Worse Than 2008, Blames US “Printing Press” (ZeroHedge, Feb 5, 2015):

The head of China’s Dagong Rating Agency, Guan Jianzhong, had some very blunt words for the world’s investors and policymakers overnight. As ITAR-TASS reports, Jianzhong warned , “the world economy may slip into a new global financial crisis in the next few years… that is even worse than in 2008.” Continue reading »

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Jan 31

- Did The Federal Reserve Make A Major Math Error When Reporting Its December Gold Withdrawals? (ZeroHedge, Jan 31, 2015):

According to the NY Fed, 177 tons of gold have been withdawn from its vault in 2014; according to foreign central banks, at least 207 tons of gold were withdrawn from the NY Fed in 2014.

Did a Fed intern make a very glaring math error or is something else going on?

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Jan 29

20150129_EOD

Janet Yellen Saves The Day: Stocks Soar After Fed Chairwoman Tells Democrats To BTFD (Zerohedge, Jan 29, 2015)

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Jan 27

casino-royale

- How Capitalism Dies (Acing Man, Jan 27, 2015):

In the early 1970s, there were about 200,000 new US businesses created each year (net of closures). Now, the number is negative. Why are Americans getting poorer? Look no further. No new businesses (net). No new jobs (again net). No new wealth. Under Obama and Draghi, crony capitalism flourishes. Real capitalism dies.

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Jan 27

- Obama’s Fed Nominee, Who Was Busted And Quit For “Impropriety”, Reports Up To $40 Million In Assets (ZeroHedge, Jan 26, 2015):

Three weeks ago, when reporting on Obama’s close personal friend and Bank of Hawaii “community banker” appointee to the Fed board, Allan Landon, we emphasized an apparently trivial data point that had somehow managed to slip through the background due diligence process. Namely, that about a decade ago, the same Landon stepped down as board member from the Seattle Federal Home Loan Bank after he was found to have “failed to comply with a rule requiring the disclosure of conflicts of interest by a director by failing to make disclosure to the Seattle Bank board of their institutions’ planned redemptions.” The full story can be read here, but in a nutshell a banker that the president himself has appointed to join the US money printing authority was on the cusp of being investigated for embezzlement, and was forced to quietly disappear into the night despite denying “any wrongdoing.” Today we learn just how much assets the banker who at least once was caught with “borderlineembezzlement ” made during his humble tenure as a “community banker.” The number: somewhere between $10 and $40 million.

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Jan 26

- Get Ready For Negative Interest Rates In The US (ZeroHedge, Jan 24, 2015):

With Fed mouthpiece Jon Hilsenrath warning - in no lesser status-quo narrative-deliverer than The Wall Street Journal - that The ECB’s actions (and pre-emptive collapse in the EUR) means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad, potentially slowing both U.S. growth and inflation; and Treasury Secretary Lew coming out his crypt to mention “unfair FX moves,” it appears The Fed (and powers that be) are worrying about King Dollar. This suggests, as Mises Canada’s Patrick Barron predicts, the Fed will start charging negative interest rates on bank reserve accounts as the final tool in the war on savings and wealth in order to spur the Keynesian goal of increasing “aggregate demand”. If savers won’t spend their money, the government will take it from them.

As The Wall Street Journal explains,

The European Central Bank’s launch of an aggressive program this week to buy more than €1 trillion in bonds poses important tests for the U.S. economy and the Federal Reserve.

Europe’s new program of money printing—and the resulting fall in the euro—means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad. Continue reading »

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Jan 25

- Spot The Difference: Money Printing, Then And Now (ZeroHedge, Jan 24, 2015):

Hyperinflation-Weimar-USA

h/t @macroymercados

The global central bank balance sheet is even more concerning.

*  *  *

As to the hyperinflation question,

Draghi’s answer is simple: we have now thrown the kitchen sink at the deflation problem and there has been no inflation (he conveniently forgets to mention that the world is now caught in a vicious spiral in which every single central bank is printing money just to export deflation to its peers, with more and more printing necessary each year just to stay in one place). In other words, just because hyperinflation hasn’t materialized so far, it never will.

Or, as Bernanke would say: “Hyperinflation is contained.” Continue reading »

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Jan 23

- What ECB QE Will Do For The World (In 1 Word & 1 Simple Chart) (ZeroHedge, Jan 22, 2015):

Nothing…

  • *DRAGHI SAYS TODAY’S MEASURES WILL BE EFFECTIVE
  • *DRAGHI SAYS TODAY’S MEASURES WILL BOLSTER INFLATION
  • *DRAGHI CITES SIGNALING EFFECT ON INFLATION EXPECTATIONS

Signal This!!

20150122_ECBQE

“Different this time?” or “Einsteinian Insanity”?

With The ECB set to announce a QE4EVA-esque bond-buying initiative within the next hour or two, we thought it worth looking at just what The Fed’s balance-sheet experiment did for inflation expectations (the key narrative that is driving Draghi’s decision) and economic growth (what every politician is demanding Draghi help with)…

The answer… Nothing!!

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Jan 21

Related info:

- ECB’s Axel Weber: Bailouts Have Damaged Basis Of Euro Zone

Yes, but look who’s talking:

Bundesbank President Axel Weber has dished out €338 billion!!!

- Bankrupting Germany: German Bundesbank Financed ECB and National Central Banks With €338 Billion, ifo-Institute President Prof. Hans-Werner Sinn Stunned


euro-coin-cash

- EU has squandered last chance to make euro workable, warns Ex-Bundesbank chief (Telegraph, Jan 21, 2015):

Axel Weber says it is “hard to say” whether Europe would be in better shape today if the euro had never been launched, a tactful evasion understood as nostalgia for the stability of the D-Mark

The former head of the German Bundesbank has warned that the European Central Bank (ECB) will not succeed in raising inflation for years to come and is almost powerless to revive the fortunes of the eurozone on its own.

Axel Weber, now chairman of UBS and widely-regarded as Europe’s most influential private banker, said Europe’s leaders had squandered the chance to rebuild the eurozone’s foundations when the going was good and markets were calm. Continue reading »

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Jan 07

Rescrewing-the-globe


- Fed Finally Admits Frontrunning Of Central Banks Is What Moves Markets (ZeroHedge, Jan 7, 2014):

Something curious appeared in the December minutes - the Fed finally admits that market is no longer a discounting mechanism of a reality in which central bank intervention is irrelevant, but that market, or rather “market” merely discounts what centrals banks (and by “what” we mean will they or won’t they inject a few trillion in liquidity) will do next.

In their discussion of financial market developments, participants observed that movements in asset prices over the intermeeting period appeared to have been importantly influenced by concerns about prospects for foreign economic growth and by associated expectations of monetary policy actions in Europe and Japan. Continue reading »

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Jan 07

Federal-Reserve-Printing-Money

- Obama’s Fed Board Appointee Was Previously Busted, And Quit, For “Impropriety” (ZeroHedge, Jan 7, 2014):

Yesterday, to much fanfare, the White House blasted that it was Obama’s desire to appoint Allan R. Landon, a Hawaiian community banker, to serve on the Board of Governors of the Federal Reserve System. To wit: “President Obama said, “Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy.  He brings decades of leadership and expertise from various roles, particularly as a community banker.  I’m confident that he will serve our country well.

Apparently what he also brings as Bloomberg’s (formerly of Dow Jones) Dawn Kopecki reminds us, is the usual near-criminal cronyism and corruption that we have all grown to love and expect from every single Fed governor in recent history.

Recall from May 2005, courtesy of the WSJ: Continue reading »

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Jan 02

US-ECONOMY-IMF-WB-FISCHER

- Top Israeli Central Banker is The Real Power In The Federal Reserve (Blacklisted News, Jan 2, 2015):

 Source: Politico

Fed Chair Janet Yellen pushed for him to be her No. 2 in a move that was viewed as a show of confidence and strength as she prepares to lead the Fed through one of it most challenging periods, managing the wind down of massive stimulus programs put in place following the financial crisis.

The pairing was dubbed a central banking “dream team” by Fed watchers. Continue reading »

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