- 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 »
- 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.”
- 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.
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.
- 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 »
- 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…
…But then there is all this wonderful wealth creation… Continue reading »
Aaaand it’s gone …
This, by the way, is post no. 26,000!!!
- 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.
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 »
- “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:
As I have said many times before, future generations will look back at Central Banking as we look back at slavery.
— Michael Krieger (@LibertyBlitz) June 19, 2014
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?
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
- 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 »
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:
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 »
- 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.
- 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.
- 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?
- 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: 1984, Banking, Barack Obama, Big Brother, Bonds, Children, China, Collapse, Debt, Dictatorship, Dollar, Economy, Fascism, Fed, Federal Reserve, George Orwell, Global News, Government, Military, New World Order, Obama administration, Politics, Society, U.S.
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 »
- 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.”
- 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.
- No inflation Friday: 42.4% increase in the price of being… poor? (Sovereign Man, May 23, 2014):
One of the most intellectually disingenuous statements made by western policymakers is that inflation is tame… nonexistent.
For example, the minutes released this week from the most recent Federal Reserve policy meeting said that the Fed saw NO inflation risk in ‘fueling job growth’ [i.e. printing money].
So by their own admission, the Fed thinks they can conjure hundreds of billions of dollars out of thin air without any consequences whatsoever. Zero risk.
Every time I hear something like this it just makes my skin crawl… and I always think, “go get on a plane.”
Inflation is out there in the rest of the world. To deny its existence is massively arrogant, insensitive, and just plain wrong. Continue reading »
- Deutsche Bank: “Perhaps The Fed And Other Central Banks Are Controlling The Market Too Much These Days” (ZeroHedge, May 20, 2014):
“Perhaps the Fed and other central banks are controlling the market too much these days with their guidance. In the old days central banks used to like to create an element of surprise to ensure that markets didn’t become complacent. With the crisis fresh in people’s minds, with the stock of debt still huge and with the recovery still so uncertain they feel they cannot risk creating too much uncertainty at the moment. ” – Deutsche Bank
- SMOKING GUN FROM THE FEDERAL RESERVE MURDER OF THE MIDDLE CLASS (The Burning Platform, May 18, 2014):
During the bubblicious years from 2000 through 2014, while Wall Street used control fraud and virtually free money provided by the Fed to siphon off hundreds of billions of ill-gotten profits from the economy, the average middle class family saw their income drop and their debt load soar. This is crony capitalism success at its finest. The oligarchs count on the fact math challenged, iGadget distracted, Facebook focused, public school educated morons will never understand the impact of inflation on their daily lives. The pliant co-conspirators in the dying legacy media regurgitate nominal government reported income figures which show median household income growing by 30% over the last fourteen years. In reality, the real median household income has FALLEN by 7% since 2000 and 7.5% since its 2008 peak. Again, using a true inflation figure would yield declines exceeding 15%.
- Russia Dumping US Treasuries? But Why the Heck in Belgium? (Testosterone Pit, May 15, 2014):
Belgium is known for its surprises. For example, it got by amazingly well for a couple of years without a national government, and without breaking apart, to the endless chagrin of a lot of people. And it has a great variety of delicious beers, which I amply tested during the three years I was there. But now, that tiny country with a tiny economy is suddenly piling up a mountain of US Treasuries.
In March, according to new data from the US Treasury Department, it added another $40.2 billion to its existing mountain of Treasuries, now at the dizzying height of $381.4 billion, or 79% of GDP!
It put the country in third place, behind the second and third largest economies in the world, export machine China ($1.27 trillion) and former export machine, now money-printer Japan ($1.20 trillion). From August last year, Treasury holdings in Belgium have ballooned by 129%!
What the heck is going on? Continue reading »
- Bernanke Shocker: “No Rate Normalization During My Lifetime” (ZeroHedege, May 16, 2014):
Forget all talk about “dots“, “6 months”, or any other prognostication from the Fed’s new leadership about what will happen in the near and not so near future. For the real answer prepare to shelve out the usual fee of $250,000 for an hour with the Chairsatan, or read Reuters’ account of what others who have done so, have learned. The answer is a stunner.
“At least one guest left a New York restaurant with the impression Bernanke, 60, does not expect the federal funds rate, the Fed’s main benchmark interest rate, to rise back to its long-term average of around 4 percent in Bernanke’s lifetime. “Shocking when he said this,” the guest scribbled in his notes. “Is that really true?” he scribbled at another point, according to the notes reviewed by Reuters.”
To think one could have read Zero Hedge for free for the past 5 years and gotten the same answer (time for a pop quiz: pumping liquidity into a closed system in perpetuity is i) inflationary or ii) deflationary?). But no, one would rather pay Bernanke’s former annual salary in less than an hour to get the answer from the same person who infamously stated that “subprime was contained”, that “there is no housing bubble”, and that he doesn’t buy the premise of house price declines as there has never been a “decline of house prices on a nationwide basis.“
Still, one can’t blame Bernanke for providing a service that the market (one market the former chairman didn’t manage to break with his central planning spree, unlike all other markets) demands. Alan Greenspan waited only a week after his departure before addressing a private dinner hosted by Lehman Brothers, the investment bank whose collapse in 2008 sent the financial crisis into high gear.
Bernanke’s private dinners, all of which cost around $250,000 began near the end of March, roughly two months after his retirement. Continue reading »
Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.
- The Fed Is The Great Deceiver — Paul Craig Roberts and Dave Kranzler (Paul Craig Roberts, May 12, 2014):
Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.
Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP?
No, Belgium’s trade and current accounts are in deficit.
Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase?
No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.
So where did the $141.2 billion come from? Continue reading »
- When $1.2 Trillion In Foreign Bank Funds In The US Dissipate (Testosterone Pit, May 9, 2014):
It fits the pattern of gratuitous bank enrichment perfectly, but this time, the big beneficiaries of the Fed are foreign banks. A JPMorgan analysis, cited by the Wall Street Journal, figured that in 2014 the Fed would pay $6.74 billion in interest to the banks that park their excess cash at the Fed – half of that amount, so a cool $3.37 billion, would line the pockets of foreign banks with branches in the US.
This is where part of the liquidity ends up that the Fed has been handing to Wall Street through its bond purchases. Currently, the Fed requires that banks keep a minimum balance of $80.2 billion at the Fed. Banks can keep up to $88.2 billion at the Fed as part of the “penalty-free band.” In theory, as “penalty-free” implies, there’d be a penalty on balances above $88.2 billion.
But the total balance was $2.66 trillion in April, up from $2.62 trillion in March and from $1.83 trillion a year ago. The balances in excess of the “penalty-free band” have reached $2.57 trillion. The highest ever. The penalty on that?
Continue reading »
- When Asked if the U.S. is a Capitalist Democracy or Oligarchy, Janet Yellen Can’t Answer… (Liberty Blitzkrieg, May 8, 2014):
During yesterday’s Senate hearings, Janet Yellen was asked by Senator Bernie Sanders if the U.S. was a capitalist democracy or has morphed into an oligarchy. While readers of this site already know the answer to this question, which was recently proved empirically by a Princeton and Northwestern academic study, it was still stunning to note her unwillingness to answer the question.
I will give her some credit for not flat out lying about it. She inherently understands that the U.S. is a corrupt, shameful oligarchy, but as head of the institution most responsible for this transformation she simply cannot tell the truth. It is incredible that things have fallen so far that a U.S. Senator felt compelled to ask such a question, and even worse that such a powerful official couldn’t vehemently and decisively deny the claim.
Where I take exception with Sanders, is that he appears to live under some strange sort of hypnosis that makes him think only Republican oligarchs are problematic. Of course no sane person should draw any serious distinction between establishment Democrats or Republicans. Furthermore, he also makes the mistake of focusing on the 1%, when the real problem resides in a far smaller 0.01%, which I described in my post: Where Does the Real Problem Reside? Two Charts Showing the 0.01% vs. the 1%.
See for yourself: