Deutsche Bank: The Fed Has Created “Universal Basic Income For The Rich” And Now It Can’t Get Out

Deutsche: The Fed Has Created “Universal Basic Income For The Rich” And Now It Can’t Get Out:

“The accommodation and QE have acted as a free insurance policy for the owners of risk, which, given the demographics of stock market participation, in effect has functioned as universal basic income for the rich. It is not difficult to see how disruptive unwind of stimulus could become. Clearly, in this context risk has become a binding constraint”

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40% Of The Fed’s Interest On Excess Reserves Is Paid To Foreign Banks

40% Of The Fed’s Interest On Excess Reserves Is Paid To Foreign Banks:

Now that Congress is finally scrutinizing the $4.5 trillion elephant in the room, it may be interested to know that approximately 40%, or $838 billion in reserves parked at the Fed belong to foreign banks. This means that the Fed is giving a $10 billion (and rising) annualized subsidy to non-US banks every year.

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Fed Chair Janet Yellen Warns Congress: US Debt Trajectory Is Unsustainable

Fed Chair Janet Yellen Warns Congress: US Debt Trajectory Is Unsustainable:

“Let me state in the strongest possible terms that I agree” the U.S. federal debt trend is unsustainable, may hurt productivity, and living standards of Americans.

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The Federal Reserve Is A Saboteur – And The “Experts” Are Oblivious

The Federal Reserve Is A Saboteur – And The “Experts” Are Oblivious:

I have written on the subject of the Federal Reserve’s deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an “economic suicide bomber.” I still believe the label fits perfectly, and the Fed’s recent actions I think directly confirm my accusations.

Back in 2015, when I predicted that the central bankers would shift gears dramatically into a program of consistent interest rate hikes and that they would begin cutting off stimulus to the U.S. financial sector and more specifically stock markets, almost no one wanted to hear it. The crowd-think at that time was that the Fed would inevitably move to negative interest rates, and that raising rates was simply “impossible.”

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Ron Paul: “We Must Declare Independence”

We Must Declare Independence:

By Ron Paul.

As Independence Day comes around again we should spend a few moments between barbecue and fireworks to think about the meaning of independence. The colonists who rebelled against the British Crown were, among other things, unhappy about taxation. Yet, as economist Gary North points out, the total burden of British imperial taxation was about one-to-two percent of national income.

Some 241 years later, Washington claims more of our money as its own than King George could have ever imagined. What do we get in this bargain? We get a federal government larger and more oppressive than before 1776, a government that increasingly views us as the enemy.

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The Silence Is Deafening, Indicators Point To An Event On The Horizon

The Silence Is Deafening, Indicators Point To An Event On The Horizon- Episode 1319

H/t reader squodgy:

“The creature from Jeckyll Island is coming…”

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Janet Yellen Says A New Financial Crisis Probably Won’t Happen ‘In Our Lifetimes’ But The BIS Says One Could Soon Hit ‘With A Vengeance’

Janet Yellen Says A New Financial Crisis Probably Won’t Happen ‘In Our Lifetimes’ But The BIS Says One Could Soon Hit ‘With A Vengeance’:

Federal Reserve Chair Janet Yellen is quite convinced that the United States will not experience another financial crisis for a very long time to come.  In fact, she is publicly saying that she does not believe that another one will happen “in our lifetimes”.  But there are other central bankers that see things very differently.  In fact, a new report that was just released by the Bank for International Settlements is warning that a new financial crisis could soon strike “with a vengeance”.  So who is right?

It would be nice if it turned out that Yellen was right.  Nobody should want to see a repeat of what happened in 2008, and Yellen seems extremely confident that she will never see another crisis of that magnitude

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The End of the (Petro)Dollar: What the Federal Reserve Doesn’t Want You to Know

The End of the (Petro)Dollar: What the Federal Reserve Doesn’t Want You to Know:

The United States’ ability to maintain its influence over the rest of the world has been slowly diminishing. Since the petrodollar was established in 1971, U.S. currency has monopolized international trade through oil deals with the Organization of the Petroleum Exporting Countries (OPEC) and continuous military interventions. There is, however, growing opposition to the American standard, and it gained more support recently when several Gulf states suddenly blockaded Qatar, which they accused of funding terrorism. 

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U.S. Weeks Away From A Recession According To Latest Loan Data

U.S. Weeks Away From A Recession According To Latest Loan Data:

Should the current rate of loan growth deceleration persist, the US will post its first negative loan growth, or rather loan contraction since the financial crisis, in roughly 4 to 6 week…  just in time for the Fed’s rate hike.

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“Nothing Else Matters”: Central Banks Have Bought A Record $1.5 Trillion In Assets In 2017

“Nothing Else Matters”: Central Banks Have Bought A Record $1.5 Trillion In Assets In 2017:

Central banks have bought a record $1.5 trillion of financial assets in just the first five months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.”

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