May 06


May 5, 2015

Related info:

US Trade Deficit Soars To Worst Since Financial Crisis; Will Push Q1 GDP Negative

US Economy Grinds To A Halt, Again: Q1 GDP Tumbles Below Expectations, Rises Paltry 0.2%:

Without this epic stockpiling of non-farm inventory which will have to be liquidated at some point (and at a very low price) Q1 GDP would have been -2.5%.

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May 05

Gold Withdrawals From NY Fed Vault Refuse To Stop: 200 Tons Of Gold Repatriated In Past Year (ZeroHedge, May 5, 2015):

One month ago, when we commented on the latest monthly withdrawal from the gold vault lying on New York’s bedrock some 90 feet below the NY Fed building, which then saw another 10 tons quietly repatriated by unnamed foreign central bank(s) bringing the total held on behalf of foreign governments to below 6,000 tons for the first time in the 21st century, we made an observation:

… it means that all of the 207 tons in Dutch and German withdrawals are now accounted for with a matched and offsetting “departure” at the Fed. Which is why the next monthly update of the Fed’s earmarked gold will be especially interesting: if March data shows that the withdrawals continue, it will mean that either Germany, or some other sovereign, has continued to redeem their gold which for some reason they no longer trust is safe lying nearly 100 feet below street level on the Manhattan bedrock. Continue reading »

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Apr 30

Guess Who Predicted The Failure Of QE (ZeroHedge, April 30, 2015):

Janet Yellen:

As Japan found during its quantitative easing program, increasing the size of the monetary base above levels needed to provide ample liquidity to the banking system had no discernible economic effects aside from those associated with communicating the Bank of Japan’s commitment to the zero interest rate policy.

I think my views on this mirror those that you expressed in your opening comments, Mr. Chairman.”

– FOMC Minutes from Dec 2008

yellen-qe

How did that work out? Continue reading »

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Apr 30

From the article:

Just three questions here about Sarah Dahlgren’s “resignation”:

1. Why is she resigning now: is there a crackdown on just how corrupt the Goldman Sachs branch office at Liberty 33 truly is? Acutally, just kidding. Ignore this for obvious reasons.

2. What will her salary at Goldman Sachs be once she joins the 200 West firm?

3. Which Goldman partner will replace her?


NY Fed Head Of Banking Supervision, And Person Who Handed Over Billions In AIG Profits To Goldman, Resigns (ZeroHedge, April 30, 2015):

The name Sarah Dalgren is well-known to long-term Zero Hedge readers: back in January 2010 we revealed that, just before the Great US banking system backdoor bailout by way of getting a par return on AIG CDS, back in August 2008 Goldman was willing to tear up AIG Derivative Contracts, and had in fact offered to take a haircut. It was the Fed who turned Goldman’s offer down! And the person who made the decision would become the Fed’s head of Special Investments [AIG] Management Group: Sarah Dahlgren.

We said that Dahlgren “not only did not save US taxpayers’ money, but in fact ended up costing money, when they funded the marginal difference between par (the make whole price given to all AIG counterparties after AIG was told to back off in its negotiations) and whatever discount would have been applicable to the contract tear down that had been proposed by Goldman a mere month earlier. This, more so than anything presented up to now, is the true scandal behind the New York Fed’s involvement.Continue reading »

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Apr 30

FOMC Is Bluffing; Prepare for QE4 and No Rate Hike (Video) (SchiffGold, April 28, 2015):

The Federal Reserve has a two-day meeting this week. CNBC World asked Peter Schiff what he expects the results of the meeting will be. Peter argued that the Fed will continue to bluff about raising interest rates. He believes a fourth round of quantitative easing is more likely in the next year.
Follow along with this transcript:

Peter: The bigger problem for the US market is the softening US data that came out today. And now the weakening US dollar, which I think is about to get a lot weaker as people get their arms around the real predicament that the US economy is in. Continue reading »

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Apr 30

gold

(Flashback) Watch the video here:

The Gold Conspiracy (History Channel Video)

Gold-101

However, I prefer physical silver.

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Apr 28


01.09.2013

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Apr 27

federal-reserve-quantitative-easing-printing-money

Boston Fed Admits There Is No Exit, Suggests QE Become “Normal Monetary Policy” (ZeroHedge, April 26, 2015):

Perhaps it was inevitable. After all, the term “QEfinity” entered the financial lexicon long ago and there were already quite a few commentators out there suggesting that it may now be too late to remove the punchbowl, meaning an “exit” will not only prove difficult, but may well be impossible.

Take Makoto Utsumi, who oversaw foreign-exchange policy at the Japanese Ministry of Finance from 1989-1991, for example. Utsumi recently said a BoJ QE exit was out of the question “for the foreseeable future” and went on to note that “even the thought of an exit is a nightmare.” Meanwhile, it’s virtually impossible to say what effect Fed tightening will have in both the Treasury and corporate bond markets given the lack of liquidity in both and then there’s EM where carnage unfolded in 2013 after a certain bearded bureaucrat said the wrong thing about the direction of Fed policy.

Given all of this, we’re not surprised to learn that in a new paper entitled “Let’s Talk About It: What Policy Tools Should The Fed ‘Normally’ Use?”, the Boston Fed is now suggesting that QE become a permanent tool at the disposal of the Fed. After all, “financial stability” depends on it… Continue reading »

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Apr 24

traders brokers hands on face stock market collapse

“I’m Not Crazy, I’m Scared” – Why For One Trader, This Time It Is Different (ZeroHedge, April 24, 2015):

Bloomberg’s Richard Breslow, author of “Trader’s Notes” is painfully accurate with his latest take on the “markets.”

I’m Not Crazy, I’m Scared Continue reading »

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Apr 23

“Fed has created abnormal market conditions by printing money and keeping interest rates low. Investors are looking for growth anywhere they can find it and tech companies are good targets – at these values, however, all tech stocks are expensive – even looking at 5+ years of revenue growth down the road. This means that most value-driven investors have left the market and the remaining 5-10%+ increase in market value will be driven by momentum investors. At some point there won’t be any momentum investors left buying at higher prices, and the market begins to tumble. May be 10-20% correction or something more significant, especially in tech stocks.”


federal-reserve-quantitative-easing-printing-money

How The Second Tech Bubble Will Burst, In The Words Of Silicon Valley’s “Poster Child” And World’s Youngest Billionaire (ZeroHedge, April 23, 2015):

Back in December, following the Sony email leak, the world was granted a second (again uninvited) glimpse into the private life and thoughts of the person who had previously suffered another email leak, this time exposing his fraternity days explots: Snapchat founder and CEO Evan Spiegel.

And while many have been quick to mock Spiegel for some of his boyish ways, the reality is that the not only is the 24-year-old the world’s youngest billionaire, but he has quickly won the admiration of Silicon Valley’s brand names like Twitter CEO Dick Costolo who has said “I really think he is one of the best product thinkers out there right now.” Continue reading »

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Apr 21

irony-alert-ironic

Ten Wonderful Things I’m Grateful For (Irony Alert) (Of Two Minds, April 20, 2015):

Being grateful boosts your happiness. Ten wonderful things I’m grateful for.

Since every volume on the nearly endless shelf of pop psychology self-help books recommends working up some gratitude as the key to happiness, I’ve conjured up a list of what I’m grateful for. (Please turn your irony setting on.) Continue reading »

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Apr 20

“Will fail”???

matrix-system-failure


Multibillion Hedge Fund Manager: “Ultimately QE Will Fail; US And China Might Enter Recession At The Same Time” (ZeroHedge, April 20, 2015):

“Ultimately, the current QE programs will fail. I think most likely through a large devaluation in the emerging market currencies.  Having dodged and parried so many blows from Central Bank QE programs, the market is seemingly failing to break higher. Breadth is narrowing in the US stock market, and credit spreads widening. Economic data, with the exception of jobs, which is a lagging indicator, indicate the US economy is peaking. To me it looks like the US and China might go into recession at the same time.”

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Apr 17

Rockefeller-nwo-New World Order


 

Riot police stand guard as demonstrators protest the shooting death of teenager Michael Brown in Ferguson, Missouri

Signs That The Elite Are Feverishly Preparing For Something BIG (End of the American Dream, April 15, 2015):

What in the world are the elite up to?  In recent days, we have learned that the New York Fed is moving a lot of operations to Chicago because of concerns about what a “natural disaster” could do, the federal government is buying 62 million rounds of ammunition commonly used in AR-15 semi-automatic rifles for “training” purposes, and NORAD is moving back into Cheyenne Mountain because it is “EMP-hardened”.  In addition, government authorities have scheduled a whole host of unusual “training exercises” all over the nation.  So are the elite doing all of this in order to prepare for something really BIG, or should we just chalk up all of this strange activity to rampant government paranoia?

First, let’s talk about what the New York Fed has been doing.  What kind of natural disaster would be bad enough to completely shut down the operations of the New York Federal Reserve Bank?  It would have to be something very unusual, and apparently the New York Fed is very concerned that such an event could happen.  According to Reuters, the New York Fed has been transferring personnel to Chicago and building up its satellite office there just in case a “natural disaster” makes it impossible for normal operations to continue in New York… Continue reading »

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Apr 15

NY Fed’s “Plunge Protection Team” Starts Chicago Trading Floor “In Case Of Disaster Or Other Eventuality” (ZeroHedge, April 15, 2015):

We have known for quite some time now that the NY Fed’s market group, aka the Plunge Protection Team, is opening a second office in HFT-capital Chicago. What was not known is what is the official reasoning behind the Fed’s move to be even closer to its Citadel executions arm. Overnight, courtesy of Reuters we found that the “The New York branch of the U.S. Federal Reserve, wary that a natural disaster or other eventuality could shut down its market operations as it approaches an interest rate hike, has added staff and bulked up its satellite office in Chicago.”

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Apr 11

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

Meet The Secretive Group That Runs The World (ZeroHedge, April 11, 2015):

Over the centuries there have been many stories, some based on loose facts, others based on hearsay, conjecture, speculation and outright lies, about groups of people who “control the world.” Some of these are partially accurate, others are wildly hyperbolic, but when it comes to the historic record, nothing comes closer to the stereotypical, secretive group determining the fate of over 7 billion people, than the Bank of International Settlements, which hides in such plain sight, that few have ever paid much attention.

BIS committee

This is their story.

BIS table

First unofficial meeting of the BIS Board of Directors in Basel, April 1930

* * *

The following is an excerpt from TOWER OF BASEL: The Shadowy History of the Secret Bank that Runs the World by Adam LeBor.  Reprinted with permission from PublicAffairs.

The world’s most exclusive club has eighteen members. They gather every other month on a Sunday evening at 7 p.m. in conference room E in a circular tower block whose tinted windows overlook the central Basel railway station. Their discussion lasts for one hour, perhaps an hour and a half. Some of those present bring a colleague with them, but the aides rarely speak during this most confidential of conclaves. The meeting closes, the aides leave, and those remaining retire for dinner in the dining room on the eighteenth floor, rightly confident that the food and the wine will be superb. The meal, which continues until 11 p.m. or midnight, is where the real work is done. The protocol and hospitality, honed for more than eight decades, are faultless. Anything said at the dining table, it is understood, is not to be repeated elsewhere. Continue reading »

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Apr 08

FYI.


Elvira Sakhipzadovna Nabiullina

Russia’s Central Bank Governor Is Way Smarter Than Ours (The Automatic Earth, April 8, 2015):

It wouldn’t be a first, but it would certainly be a – bigger – shock. That is to say, the Bank of England hijacked the head of Canada’s central bank some time ago, but, while unexpected enough, that would pale in comparison to the US hiring the present Governor of the Russian central bank, Elvira Sakhipzadovna Nabiullina. It would still seem to be a mighty fine idea, though.

Not that I think it will happen, not to worry if you think Yellen is just what it takes at the Fed. But Nabiullina is both razor sharp and fiercely independent. Yellen is obviously neither; she’s a cog in a machine that huffs and puffs and pumps and dumps to make sure her overlords in the blissful world of US finance make ever more profit no matter how bad things get in American society. Continue reading »

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Apr 06

gold-dollar

A Global Financial Reset Is Coming: ‘A Deal Is Being Made Between All The Central Banks’ (SHFTplan, April 5, 2015):

There is an unprecedented reset coming to world financial markets and if you’ve been paying attention it’s impossible to ignore the signs. In fact mega-investment funds, governments and central banks have been secretly buying up and storing physical gold in anticipation of an event that will leave the U.S. dollar effectively worthless and governments around the world angling for a new global currency mechanism, according to mining executive Keith Neumeyer.

But before the reset can happen Neumeyer, who recently founded First Mining Finance and has partnered with billionaire alternative asset investors like Eric Sprott and Rick Rule, says that foreign creditors must first deleverage their U.S. dollar debt, a move that is happening right now and is evidenced by the recent strength of the U.S. dollar. Continue reading »

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Apr 06

Now that sums up the current situation nicely.

From the article:

“This is not going to be a 1921-style two-year recession that we bounce back from after a little bit of pain and unpleasantness. After a 50-year global economic boon involving what is now a $59 trillion expansion of credit in 50 years, this isn’t going to be a one or two-year hard recession. This is going to be a multi-decade global depression and I’m not sure that anyone alive today would live long enough to see the recovery. I mean, it’s like Rome: when Rome fell, there was a recovery, but it was 1,000 years later. This is the kind of depression we’re looking at if we allow this $59 trillion credit bubble of ours to implode.”


Richard Duncan: The Real Risk Of A Coming Multi-Decade Global Depression (Peak Prosperity, April 5, 2015):

Richard Duncan, author of The Dollar Crisis and The New Depression: The Breakdown Of The Paper Money Economy, isn’t mincing words about the risks he sees ahead for the world economy.

Essentially, he sees the past 50 years of economic prosperity fueled by globalization and easy credit in serious danger of being unwound, as the doomed monetary policies currently being pursued by the word’s central banks result in a massive multi-decade depression that spans the globe.

The first version of The Dollar Crisis, the hardback, came out in 2003, so I wrote it in 2002. And at that time, the dollar against gold was $300. So the dollar has lost more than 75% of its value since The Dollar Crisis was written, and I don’t think it’s going to stop here. I expect it to continue to lose value over the years and decades ahead.

But what we’re seeing is that the real theme of The Dollar Crisis was that the post-Bretton Woods international monetary system was fundamentally flawed because it couldn’t prevent trade imbalances between countries. And the US had developed an enormous trade deficit with the rest of the world and this blew the trade surplus countries like Japan and China into bubbles. And then, the dollars boomeranged back into the United States and blew it into a bubble, as well. I didn’t know when the housing bubble was going to pop in the US but I knew it would. And I wrote in The Dollar Crisis that when it did, we would have a severe global economic recession/depression that would involve a systemic banking sector crisis in the United States and necessitate trillion-dollar budget deficits and unorthodox monetary policy to prevent a Great Depression from occurring. Continue reading »

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Apr 01

Recovery!


It’s Official: Fed Sees 0.0% GDP Growth In The First Quarter (ZeroHedge, April 1, 2015):

The Atlanta Fed’s GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2015 has been downgraded once again… to 0.0 percent on April 1, down from 2.3 percent on Feb 13th.

20150401_fed11

Following this morning’s construction spending release from the U.S. Census Bureau, the nowcast for real residential investment growth increased from -1.1 percent to 1.8 percent. This was more than offset by declines in the nowcasts for real nonresidential structures investment growth (-19.3 percent to -22.5 percent) and real state and local government spending growth (0.3 percent to -0.8 percent).

Not Pretty!

20150401_fed1112

Source: GDPNow

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Mar 31

Gold-101

Gold In Fed Vault Drops Under 6,000 Tons For The First Time, After 10th Consecutive Month Of Redemptions (ZeroHedge, March 31, 2015):

Two months ago, when looking at the most recent physical gold withdrawal numbers reported by the Fed, we observed something peculiar: between the publicly reported surprise redemption by the Netherlands (122 tons) and the just as surprise redemption by the Bundesbank (85 tons), at least 207 tons of gold should have vacated the NY Fed’s gold vault. Instead, the Fed reported that in all of 2014 “only” 177 tons of gold were shipped out of the massive gold vault located 90 feet below 33 Liberty Street. Somehow the delta between what we “shipped” and what was “received” in the past year was a whopping 30 tons, or about 15% of the total – a gap that is big enough to make even China’s outright fraudulent trade numbers seems sterling by comparison.

This prompted us to ask: Continue reading »

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