The official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for “growth,” i.e. economic expansion. The unstated reason for this official support of inflation is that it’s easier for borrowers to service their debts as their income inflates.
Just as the Federal Reserve cannot directly force you to stick the needle of monetary heroin (debt) into your arm, it also can’t force employers to pay employees more. [Read more...]
The Federal Reserve, the central bank of the U.S., is nearing the end of its ability to manipulate the U.S. economy without producing consequences worse that those it set out to avoid in 2008.
The Fed has no good exits from seven years of market manipulation. If it continues its current policy of reducing purchases of assets, the so-called “tapering,” it risks throwing the U.S. into a recession.
If it reverses course and pauses the taper and later increases asset purchases, it risks destroying confidence in the dollar among foreign creditors of the U.S.
Both outcomes are potentially disastrous, but there are no good outcomes on the horizon. This is the result of manipulating markets to the point where they no longer function as markets providing useful price signals and guiding the efficient allocation of capital. Today markets are a mirage, created by the Federal Reserve, which is caught in a prison of its own device. [Read more...]
In this breaking news update, WeAreChange’s Luke Rudkowski reports on the scene in Germany, where the German “End the Fed” protest organizer Lars Maehrholz nearly lost his life as the vehicle of a friend was just fire bombed by an anonymous perp just as Lars was entering.
Lars had received numerous threats since Monday’s Fed protest prior to the fire-bombing.
It appears the police are following the Michael Hastings fire-bombing/crash investigation playbook, as according to the official German police report, the vehicle reportedly “just started burning“.
The answer to this question has huge implications worldwide as the risk of sovereign debt default has never been higher.
It appears they want to be able to change the rules if they think they need to. Even including bank depositors.
In a ground breaking case that has MAJOR potential ramifications on the legality of future bail-ins in the US, the US Supreme Court has ruled in favor of some hedge funds that will be paid the full value of the debt they owned (Argentina debt).
While this ruling only applies to bond holders, it might apply as a precedent to any future default situation.
Germany has decided its gold is safe in American hands.
“The Americans are taking good care of our gold... Objectively, there’s absolutely no reason for mistrust.”
Absolutely no reason for mistrust, or absolutely no gold left to repatriate?
We’ll let our readers come to their own conclusions.
The sudden emergence of End the Red rallies in Germany is a fascinating development and one that I had no idea was happening until today. It seems that rallies are spreading throughout Germany protesting the corrupt and dying global status quo. One of the key targets of these groups is the U.S. Federal Reserve system, which as I and many others have maintained, is the core cancer infecting the entire planet.
Future generations will look back at Central Banking as we look back at slavery.
Yellen 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: [Read more...]
Rather than invest in failing infrastructure, central banks and governments are acting like hedge funds, betting on the stock market and OTC derivatives, using fiat credits that are borrowed or printed.
The bottom line: While global citizens are told to “grin and bear” austerity, their leaders are having a “good ‘ole time” spending trillions of dollars, at the stock market casino. [Read more...]
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.