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.

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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!

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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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Mar 30

The Fed's Startling Student Debt Numbers Every Young Person Should See

Every young person should see the Fed’s startling numbers on student debt (Sovereign Man, March 30, 2015):

What I’m about to tell you is not my own opinion or even analysis. It’s original data that comes from the United States Federal Reserve and national credit bureaus.

  1. 40 million Americans are now in debt because of their university education, and on average borrowers have four loans with a total balance of $29,000.
  2. According to the Fed, “Student loans have the highest delinquency rate of any form of household credit, having surpassed credit cards in 2012.”
  3. Since 2010, student debt has been the second largest category of personal debt, just after a home mortgage.
  4. The delinquency rate for student loans is now hovering near an all-time high since they started collecting data 12 years ago.
  5. Only 37% of total students loan balances are currently in repayment and not delinquent.

The rest—nearly 2 out of 3—are either behind on payments, in all-out default, or have entered some sort of deferral program to delay making payments, with a small percentage still in school.

It’s pretty obvious that this is a giant, unsustainable bubble (more on this below). But even more important are the personal implications. Continue reading »

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Mar 30

From the article:

“When I was chairman, more than one legislator accused me and my colleagues on the Fed’s policy-setting Federal Open Market Committee of “throwing seniors under the bus” (to use the words of one senator) by keeping interest rates low. The legislators were concerned about retirees living off their savings and able to obtain only very low rates of return on those savings.”

And the punchline:

“I was concerned about those seniors as well.”

Yes, deeply concerned on how to wipe them (the middle class and the poor) out best.


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Ben Bernanke Pens First Blog Post, Defends Fed, Says He “Was Concerned About Seniors” (ZeroHedge, March 30, 2015):

It would appear the $250,000/hour speaking opportunities for Ben Bernanke have ground to a halt, and as such, the former Chairsatan has decided to dispense his wisdom for free to anyone who cares, by becoming a blogger at Brookings. And, not surprisingly, in his first post, the person who less than a decade ago said the following, in exactly those words…

Well, I guess I don’t buy your premise. It’s a pretty unlikely possibility. We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though. Continue reading »

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Mar 30

An Interview with Felix Zulauf – Financial Markets Are More Distorted than Ever (Acting Man, March 26, 2015):

Risks and Opportunities

Investors started off 2015 with a slow global economy, low oil prices, a strong Dollar, and a deflationary Europe with great uncertainties on the progress of the US economy and the recent launch of Europe’s quantitative easing. The question is, what opportunities lie ahead? This article highlights the main topics covered in an interview between Mr. Frank Suess, CEO and Chairman of BFI Capital Group, with the globally renowned Swiss fund manager, Mr. Felix Zulauf. Mr. Zulauf currently heads Zulauf Asset Management, a Switzerland-based hedge fund and has forty years of experience with global financial markets and asset management. He has been a member of the Barron’s Roundtable for over twenty years.

Felix Zulauf, Swiss fund manager

Felix Zulauf, Swiss fund manager and long-standing member of the Barron’s roundtable

Frank Suess: Felix, first I would like to thank you for taking the time to speak to us. You are a renowned investor and fund manager with a solid track record over the past 40 years. In those 40 years, you’ve encountered many highs and lows in financial markets and business cycles. What do you think about the current cycle we are in?

Felix Zulauf: The current cycle is very unusual, because never before have we seen authorities, central banks in particular, intervening on such a large scale and pumping so much money into global financial markets. Hence, global financial markets are more distorted than ever before and accordingly, the risks are very high. Investing becomes very difficult in such an unprecedented environment, as it can’t be compared to previous situations. Continue reading »

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Mar 29

Kyle-Bass

Kyle Bass Warns “The Fed Is Backed Into A Corner… Equities Are My Biggest Liquidity Worry” (ZeroHedge, March 28, 2015):

While Kyle Bass is usually the smartest man in the room, among this crowd he is Einstein as he carefuly explains – while sitting politely during status quo interruptions – the real state of the world “the unintended consequence of QE has been to widen the income gap,” what is behind the Potemkin Village of the stock markets, how The Fed is “backed into a corner” of raising rates against their will, and why bond yields (at the long-end) will drop further. Currency wars are net positive, as Greg Ip suggests, and will not end well, as he concludes in one section, “why haven’t all the Yen left Japan already?”

How many rich people do you know today that are poorer than they were at the peak in 06/07 (apart from Dick Fuld), I don’t think I know any.. QE has been distributive to the rich… but now that the world has started this policy it is unable to end it…

the next recession will be a hard one because the tools in the toolbox are not there to avert a severe downturn…” Continue reading »

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Mar 28

ben-bernanke-janet-yellen

Santelli Stunned As Janet Yellen Admits “Cash Is Not A Store Of Value” (ZeroHedge, March 28, 2015)

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Mar 23

TIME THE CRASH

Who Left the Crash Window Open? (OfTwoMinds, March 22, 2015):

Can stocks keep hitting new highs even as sales and profits fall?

Given that we live in a world where a modest 3% decline in the stock market triggers panicky demands for more quantitative easing (QE 4), few observers expect much a correction, regardless of the souring fundamentals such as sales and profits.
A correspondent notified me of a Puetz “crash” window (based on the analysis of Stephen J. Puetz) opening in late March-early April. (Since I am not a subscriber to Puetz’s work, I can’t confirm this.) As I understand it, while these windows do not predict a crash/sharp correction, such moves tend to occur in these windows, which are based on cycles and events such as eclipses.
So I decided to look for any evidence that a sharp correction might be in the offing. Continue reading »

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Mar 23

dallas fed fisher_0

One Day After Retiring As Dallas Fed President, Dick Fisher Elected To Pepsi Board Of Directors (ZeroHedge, March 22, 2015):

Former Dallas Fed president Dick “Feral Hogs” Fisher may be worried about a major correction in a market that is “hyper overpriced“, and he may be confused and unable to grasp that the only reason “traders are lazy” is because the Fed’s Chief Risk Officer has made risk, and selling, illegal but when it comes to finding sources of funding there are no conerns or confusion at all. Because promptly after he officially resigned from the Dallas Fed, on Thursday March 19, the very next day the board of Pepsi announced that “On March 20, 2015, the Board of Directors (the “Board”) of PepsiCo, Inc. (“PepsiCo”) elected Richard W. Fisher as an independent member of the Board, effective March 23, 2015. Mr. Fisher will serve on the Audit Committee of the Board, effective March 23, 2015.”

From the press release: Continue reading »

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Mar 23

After The Fed Crushed The Middle Class, It Is Targeting The American Family (ZeroHedge, March 22, 2015):

On a number of occasions this month we’ve drawn attention to the divergent fates of the 80% of American workers whose wages are declining and whose general outlook is concomitantly deteriorating, and the other 20%, whose pay is increasing and who generally feel good about their economic future. We also pointed out that with the correlation between wages and consumer spending now nearly perfect at 0.93, depressed wage growth may indeed drag on US economic output going forward. Given this, we weren’t surprised to learn that the biggest threat to traditional American society is in fact class (i.e. income inequality). This is vividly illustrated in a new work by Robert Putnam (of “Bowling Alone” fame). One key observation: race matters far less than it did in decades past and class matters far more. 

From The EconomistContinue reading »

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Mar 19

Here Is Why The Fed Can’t Hike Rates By Even 0.25% (ZeroHedge, March 18, 2015):

There was a time when Zoltan Poszar was the most important person at the Fed (and Treasury), because he was likely the only person in the government’s employ who grasped the enormity and complexity of the then-$30 or so trillion US shadow banking system. A quick refresh of his bio from the Institute for New Economic Thinking:

Mr. Pozsar has been deeply involved in the response to the global financial crisis and the ensuing policy debate. He joined the Federal Reserve Bank of New York in August 2008 in charge of market intelligence for securitized credit markets and served as point person on market developments for senior Federal Reserve, U.S. Treasury and White House officials throughout the crisis; played an instrumental role in building the TALF to backstop the ABS market; and pioneered the mapping of the shadow banking system which inspired the FSB’s effort to monitor and regulate shadow banking globally. Prior to Credit Suisse, Mr. Pozsar was a senior adviser to the U.S. Department of the Treasury, where he advised the Office of Debt Management and the Office of Financial Research, and served as Treasury’s liaison to the FSB on matters of financial innovation. He also worked with the Federal Reserve Board on improving the U.S. Flow of Funds Accounts.

Continue reading »

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Mar 19

Flashback and an absolute must-watch for all those that haven’t seen this yet.



Feb 14, 2014

Description:

America: Freedom to Fascism is a 2006 film by Aaron Russo, covering a variety of subjects, including: the Internal Revenue Service (IRS), the income tax, Federal Reserve System, national ID cards (REAL ID Act), human-implanted RFID tags, Diebold electronic voting machines,[1] globalization, Big Brother, taser weapons abuse, and the use of terrorism by the government as a means to diminish the citizens’ rights.

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Mar 18

20150319_EOD

Fed Growth Cut Unleashes Panic Buying Of Everything; Dollar Plunges Most Since 2009 (ZeroHedge, March 18, 2015):

Oil spiked 6% because “The Fed said the economy is slowing”; Stocks are up because “The Fed said the economy is slowing”; USD strength is a signal of the strength of the US economy which “The Fed said is now slowing”; Small Caps hit Record Highs because “The Fed said the economy is slowing”; and Nasdaq Tops 5,000 because “The Fed said the economy is slowing” – really only one thing for it…

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Mar 15

Inside The Federal Reserve: “Money For Nothing” – The Full Movie (ZeroHedge, March 14, 2015):

Nearly 100 years after its creation, the power of the U.S. Federal Reserve has never been greater. Markets and governments around the world hold their breath in anticipation of the Fed Chair’s every word. Yet the average person knows very little about the most powerful – and least understood – financial institution on earth. “Money For Nothing” is the first film to take viewers inside the Fed and reveal the impact of Fed policies – past, present, and future – on our lives. Join current and former Fed officials as they debate the critics, and each other, about the decisions that helped lead the global financial system to the brink of collapse in 2008. And why we might be headed there again

t is perhaps a testament to the ability of the oligarchy (that 1% which owns some 50% of all US assets), as we noted previously, to distract and distort newsflow from what really matters, that a century after the creation of the Federal Reserve, the vast majority of Americans are still unfamiliar with the most important institution in the history of the US – an institution that unlike the government is not accountable to the people (if only as prescribed on a piece of rapidly amortizing paper), but merely to a few banker stakeholders as Bernanke’s and Yellen’s actions over the past six years have demonstrated beyond any doubt. It is for their benefit that Jim Bruce’s groundbreaking movie “Money for Nothing” is a must see, although we would urge everyone else, including those frequent Zero Hedge readers well-versed in the inner workings of the Fed, to take the two hours and recall just who the real enemy of the people truly is. Continue reading »

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Mar 13

Federal-Reserve-Bernanke1


One American’s Rage Spills Over: Shut Your Mouth & Start Fighting These Political Parasites (ZeroHedge, March 13, 2015):

Warning: NSFW, for the weak of heart, look away…

Submitted by Thad Beversdorf via First Rebuttal blog,

I was shocked today by the absolute gaul of the Fed releasing a statement about Net Worth in America reaching record levels.  Now I get that they are under extreme pressure to sell the story that everything is rainbows and butterflies.  But surely they understand that working class Americans are going along with the story because they really don’t have any say in our nation’s policies anymore.  That doesn’t mean they want it thrown in their faces that the Fed has spent 6 years now inflating the wealth of the top 10% so much that it actually lifts the total wealth of the nation’s citizens to record highs.

The ugly reality is that the bottom 80% of Americans experienced none of that gain.  That’s right a big ole goose egg.  And so when the Fed via its ass pamper boy, Steve Liesman, start banging on about the fact that some sliver of society is being handed extraordinary wealth while the working class has lost 40% of their net worth since 2007, well a big fuck you right back at ya bub!  The Fed is very aware that the bottom 80% of Americans own less than 5% of US equity markets.  And so the Fed is very aware that its manipulation of stock prices such that it creates immense unearned wealth to those in the markets doesn’t reach the bottom 80%.  So why celebrate the results of the stock market price manipulation??

Continue reading »

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Mar 09

Greenspan

– Alan Greenspan Warns Of Explosive Inflation: “Tinderbox Looking For A Spark” (SHFTplan, March 8, 2015):

Last month it was revealed that former federal reserve Chairman Alan Greenspan, the architect of U.S. monetary policy under four Presidents, is anticipating a significant market event as a result of the trillions of dollars that have been pumped into the system over the last several years. According to Greenspan, something big is coming.

His comments were shared by well known resource analyst Brien Lundin, who joined Greenspan for private discussions at last year’s New Orleans Investment Conference. In his latest interview Lundin further clarifies Greenspan’s private thoughts on current economic and monetary policy and sheds light on the former Fed Chairman’s suggestion that ‘something big is coming.

Greenspan made some good points to me… He was concerned about inflation… He was specifically concerned in relation to the outstanding, or excess, reserves which are close to three trillion dollars being held on the Fed balance sheet now… That money is just hanging over the U.S. economy like a big water balloon of liquidity and it’s just searching for a pin.

In fact, Greenspan referred to it as a tinderbox of explosive inflation looking for a spark.

Watch the full insider interview: Continue reading »

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Mar 07

The One Chart You Need To Predict The Future (Of Two Minds, March 6, 2015):

We are witnessing a profound secular sea-change: the failure of expanding debt and leverage to lift the real economy of wages and household income.

When push comes to shove, you only need one chart to predict the future: debt and wages ( credit and compensation). This chart displays debt and wages as a ratio: debt/wages. What it reveals is the endgame of financialization: creating more debt no longer pushes wages higher.
financialization-endgame
I have broken the past five decades into easily recognizable economic periods. During the organic growth of the 1960s that many view as the ideal–what I term the pre-financialized economy, the line is almost flat, as debt and wages expanded in a balanced fashion.

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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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