The US Federal Reserve has been printing money since 2011 to cover USGovt debt securities in a frenetic manner. They have lost control. They call it stimulus, when it is actually the opposite. It does assist the speculators with nearly zero cost money to borrow, but one must be a club member to win loan grants. The Quantitative Easing programs are deceptive. When the program was initially announced, the Jackass claimed it would be part of an endless sequence. With QE1 and QE2 and Operation Twist and QE3, following the failed trial balloon called Taper Talk, it is quite clear to anyone with an active brain stem and absent rose colored glasses that the USFed is caught in a trap called QE to Infinity. It is not stimulative. Instead, the uncontrollable bond monetization causes capital destruction. It causes economic degradation. It causes lost jobs and vanished income. It is a gigantic wet blanket to smother and destroy the USEconomy slowly, amidst unending propaganda. QE is the device that will result in Systemic Failure, which is already flashing signals of its arrival. [Read more...]
Some of you may wonder why of all the stories out there today I decided to focus on the $525 fine a construction worker in South Carolina received a for refilling his drink at a VA Medical Center without paying.
The reason is to highlight the difference between what happens when a peasant breaks the law versus when a banker does it. [Read more...]
On this slow Friday afternoon while the market is closed, and the Ukrainian crisis threatens to spiral into an all-out war, we present a four part documentary on the history of the oil cartels and how geo-political relations are dominated by black gold.
The Secret of the Seven Sisters & Black Gold: [Read more...]
The essence of crony-capitalism is the merger of state and corporate power–the definition of fascism.
When it comes to the real world, the difference between fascism, communism and crony-capitalism is semantic. Let’s start with everyone’s favorite hot-word, fascism, which Italian dictator Benito Mussolini defined as “the merger of state and corporate power.” In other words, the state and corporate cartels are one system. [Read more...]
No one has ever claimed that the financial markets are a level playing field. Equities, bonds, currencies, options and futures are not arenas that operate by equivalent standards for all parties. Great fortunes were built not by chance, but on superior information, known to the few.
Professional traders are not risk gamblers, but operate on the premise of special advantage. Through advance and proprietary techniques that reduce exposure hazards and provide exclusive head start triggers, which virtually guarantee profits, the elite firms dominate Wall Street. [Read more...]
On April 4, 2014 Alasdair Macleod published an extensive analysis on the Chinese gold market. I felt obligated to respond to it by sharing my point of view and explain where I disagree with his analysis. I think his estimates are largely overstated because he double counts certain demand categories. Macleod states Chinese gold demand in 2013 was 4843 metric tonnes, according to me it was 2197 metric tonnes (my estimate excludes some hidden demand and PBOC purchases on which I have no hard numbers). Setting out our differences was incidentally a good occasion for me to write another in-depth analysis on the Chinese gold market.
I highly respect Macleod, who was probably working in finance when I was in diapers, and I’m very grateful he has been using my findings about SGE withdrawals and the structure of the Chinese gold market. I see very little commentators stepping into this realm, though it’s truly the most important economic event happening in our time.
Having said that, I present my analysis: [Read more...]
The Fed sacrificed the foundation of middle class wealth–stable housing values–to boost bank profits.
Middle class wealth was Fed to the sharks. As the current housing bubble deflates, the investor-buyers who fueled the rally are exiting en masse: what’s the value of an asset when the bid vanishes, i.e. there’s nobody left who’s willing to pay today’s prices?
The Fed has failed to restore middle class wealth with its latest housing bubble, and the costs of the bubble’s collapse will fall not on the Fed but on those who believed the recovery was more than Fed manipulation.
GOLD IN UKRAINE CURRENCY SURGES ANOTHER 7% THIS WEEK – COLLAPSE CONTINUES
This is particularly evident in Ukraine where the economy is nearing collapse and the currency is in free fall. The Hryvnia has been the world’s worst performing currency in 2014.
The charts below gives an indication as to the terrifying magnitude and speed of the recent decline in the value of the currency. This week alone the currency has fallen by 7% against gold or gold per ounce has risen from 15,669 hryvnia per ounce at open on Monday to 16,880 hryvnia per ounce today.
After six years of monetary and tax policies that could have not been better designed to destroy savings and the savings ethic, you’d think governments might have learned some sort of lesson. They are having none of it. Instead Japan is hell-bent on monetary kamikaze, and the ECB is now warming us up for negative interest rates and/or QE.
The problem is far from being understood: if anything the destruction, even confiscation of savings, and the creation of yet more money are set to accelerate in a futile attempt to buy off the inevitable.
Many decades of Keynesian-inspired economic and monetary corruption have left advanced economies with a legacy of debt and low savings. In a nutshell, that is the problem which is driving us into another financial crisis.
And bond yields are telling us to batten down the hatches for the next crisis: it could be worse than 2008.
Over the past 18 months we’ve seen nearly all of the Western nations move to prepare for bail-ins for the next financial crisis.
They’re not doing that for no reason- they’re preparing the legislation because they know its coming and they know that bail-outs are no longer an option, so their last ditch effort now is to bail-in and steal money from the depositors to forestall the next banking system collapse.
The Doc joins Finance & Liberty’s Elijah Johnson for an exclusive interview discussing The Doc’s views on where gold & silver are headed for the second half of 2014 and beyond, the issue of counterfeit precious metals, and the liklihood that Western governments will bail-in depositors and retirement accounts during the next financial crisis. [Read more...]
“Harry Reid, who last week hosted the fifth annual National Clean Energy Summit at the Bellagio Hotel and Casino in Las Vegas, has been “pulling strings behind the scenes” for months on behalf of ENN Mojave Energy, a Nevada subsidiary of the Chinese-owned ENN Group.
After more than two years of secret negotiations beginning in 2009, lawmakers in Clark County, Nevada, unanimously agreed to sell 9,000 acres of public land to ENN for the bargain price of just $4.5 million ($500 per acre) in December 2011.
The Las Vegas Review-Journal questioned the “steep discount” ENN received for the land, which had been previously appraised for between $30 million and $39 million. The arrangement also included a bundle of tax incentives for ENN.”
As you might suspect, Cliven Bundy’s land just so happens to be part of the land earmarked to be given away by “Dirty” Harry Reid to the Chinese. [Read more...]
After the adjustment of the data for inflation, it is clear that neither the US nor Japanese stock markets are out of their downtrend. They may have stopped falling in real inflation adjusted terms, but as stocks rise, the currency they are denominated in falls at the same time. So the benefit which remains is due to leverage of currency within the stocks, or the corporations themselves, and I suggest, that this leverage will someday unwind.
So if they are still in a downtrend in real terms, is there any chance that QE, Abenomics, or money printing will cease in the short term? I doubt it.
There is a problem. It is now abundantly clear that money printing does not work to end depressions. How the central bank heads will overcome this remains to be seen, but they represent the financial services industry’s interests whether that is known or not, and since deflation is disastrous to fractionally leverage banks survival prospects, and since they are very aware of that, they will attempt to justify continued money printing as long as they can
There is a disturbing push by the FBI to create an extensive facial recognition database, which will include criminal and non-criminal photos alike. The FBI reportedly is pushing to have a facial recognition database with up to 52 million photos by 2015.
The program is called Next Generation Identification (NGI), and the aspect of it that should bother you the most is the fact that non-criminal and criminal photos will be combined in the same database. So someone who has no criminal record can suddenly be flagged as a suspect just because an algorithm says so. What’s worst, research shows that the potential for false positive identification increases as the dataset increases.
To see if your state is participating, take a look at this map courtesy of the EFF: