Bernanke

In the latest Keiser Report, Max and Stacy Herbert discuss those who plow ZIRP (zero interest-rate policy) and those who sow QE (quantitative easing) reaping it as taxi cab medallion owners ask for bailouts.
In the second half, Max interviews Sandeep Jaitly about negative yielding bonds.

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Our favorite Fed-basher, Jim Grant was back on CNBC’s Squawk Box for another brilliant interview discussing the fall-out from the Fed’s disastrous economic policies.  

“If companies can’t fail that means somebody else can’t start. You’re looking at a petrified forest rather than dynamic capitalism,
 
Behold “The fruit of heavy-handed government manipulation & price control no matter what ‘famous-blogger’ Ben Bernanke says

Grant’s leaves the CNBC shills nearly speachless once again:

Bernanke-Dimon-Fed-Tunnel

Bernanke and his colleagues did not see the crisis of 2008 coming, even as they centrally plowed the world into it. Despite his crocodile tears in his new blog, savers all have bus tire tracks on their backs. When I was in grade school, kids could work a paper route, and with compounded interest, pay for a college degree. No longer. Workers can set aside 10% of their salaries, if they wish, yet they have no hope that it will ever support retirement. Seniors are forced to spend their capital, fearing to outlive their money.
This is the central banking endgame.
If we don’t change the regime, rates will continue to fall into the black hole of zero—and negative, as in Switzerland and Germany.
Instead of giving us an apologia, Ben Bernanke has a unique opportunity to show the world that central banking has weakened the global economy. Central banking cannot plan us out of the quagmire it has planned us into. Bernanke could give a clear statement, and explain that for all of his intelligence and education, it availed him not. The irredeemable dollar cannot be fixed.
What he should say is that it is now time for the world to consider a four-letter word that has been all but banished for decades. Gold.

Bernanke

My colleague and good friend, John Titus has written and produced an absolutely stunning video documenting the fact that Fed Chairman Ben Shalom Bernanke knowingly lied to Congress when he testified to members of Congress in Nancy Pelosi’s office – and then to Congress at-large – that the $700 billion Taxpayer bailout was required to prevent a collapse of the entire economic system and specifically the commercial paper market.
Titus shows with hard evidence directly taken from Fed documents that the “Main Street” commercial paper market or the MAIN STREET ECONOMY WAS NEVER AT RISK.

Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created.  If the Fed is doing everything correctly, why should Yellen be alarmed?  What does she have to hide? 

fed

The collapse of the Soviet Union should have been a lesson. The world should have learned that central planning cannot work, even in something simple like food or iron production. The USSR was plagued with shortages of everything.
America today does not have central planning of simple things like food. Farmers make the allocation decisions for corn, and ranchers determine the size of their herd for the most part.
We have central planning of the most complex thing of all, credit. Credit affects everything else including corn and beef.
It’s not only unstable, but it is moving inexorably towards collapse.   This disaster is way beyond the pay grades of the economists who would be our economic dictators, like Ben Bernanke and Janet Yellen.
The Fed is naught but a whole pile of perceptions.
One way or the other, we are going to rediscover the use of gold as money. When that happens, the perceptions that prop up the Fed will be dispelled.   Strip those away, and there is no case for the Fed to exist at all.

yellen
  • Yellen lays out Federal Reserve’s plans to “normalize” monetary policy
  • Fed to officially DC QE at next meeting if economic outlook holds
  • “Normalization” will not necessarily occur immediately 
  • Fed will use an overnight repo facility as needed during normalization process
  • Fed may raise interest rates as early as 2015
  • Committee is prepared to adjust its approach if necessary (translation- we’re going to try to pull the punchbowl, but we’ll eventually bring back MOAR QE )
  • Gold & silver smash commences on que as gold sent down a mineshaft below support at $1230

Full FOMC statement is below: 

panic crash

The Federal Reserve’s third quantitative-easing campaign is on track to wind down in late October.  At that point the Fed will likely stop printing new money to buy bonds, a sea-change shift with ominous implications for the stock markets.  Their entire surreal levitation during QE3 mirrored the huge growth in the Fed’s balance sheet from QE3’s bond monetizations.  When they cease, another major selloff is likely.
Prudent investors and speculators today don’t have to guess about what the end of QE3 means for the lofty Fed-inflated US stock markets.  We have the precedent of the ends of QE1 and QE2.  This next chart looks at the flagship S&P 500 stock index superimposed over the Fed’s balance sheet.
And out of all the many thousands of charts I’ve created over the years, this probably tops the heap as the scariest.

Size comparison:  silver pyramid and the great pyramid of EgyptGlobal annual silver production is approximately 820,000,000 ounces or a bit more than 25,000 metric tons.  What does that mean in terms that we can more easily understand?
If the global annual mine production of silver were cast into one large silver pyramid, it would be approximately – wait for it – only 65 feet high on a base of only 65 feet square.  Rather tiny!  For future reference, this is one “silver pyramid.”
The Federal Reserve was conjuring up enough dollars for QE to buy the equivalent of one silver pyramid every 6 days in the Bernanke era.
In that context silver seems inexpensive and dollars seem overvalued.
The US military spends the equivalent of one silver pyramid about every 8 days and the official US national debt increases by one silver pyramid every 7 days.  Borrowing and “printing” this many dollars cannot continue forever.  Silver and gold will remain valuable long after the dollar has been inflated to near worthlessness.

fedPeople who were sitting on the board of the NY Fed, were directing some of these bailout funds directly to their own banks in a blatant, absolutely undeniable conflict of interest that again represent the very heart of this system: it is a system run and operated by bankers, for bankers, and in which bankers tend to do very well, while the rest of the country MELTS DOWN.

Bernanke-Dimon-Fed-TunnelOne of the keys we watch here along with the US dollar is the price and movement of gold.
If you do any research on gold at all, you will quickly discover that there is a commonly held view that Central Banks hate gold and think of it as a useless asset that does not earn interest.
As usual, if you dig a little deeper and do more research you discover a different story. 

Bernanke taperYellen continues QE taper down to $35 billion/month:

  • Fed to taper QE an additional $10 billion beginning in July
  • Beginning in July, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $15 billion per month rather than $20 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $20 billion per month rather than $25 billion per month. 
  • Waiting on the inevitable Gold & silver smash to commence…

Full FOMC Statement is below: 

In the MUST WATCH video below, Sovereign Man’s Simon Black breaks down in explicit detail how exactly the Fed works, as well as its massive conflict of interest. 
The collapse of the dollar began in 1913…it is nearly complete.