Fed to the Sharks, Part 2: Housing and the Death of the Middle Class

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. 

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The Story the MSM Won’t Tell: The Collapse in Newspaper & Magazine Subscriptions

propagandaWhen I recently cancelled my USA Today subscription, I told the nice clerk I spoke to that I was just trying to save money.  However, I also mentioned that I didn’t agree with the paper’s economic writers, writers who routinely reported on “low inflation” and how the economic recovery was on-going.
I pointed out that the rack-sale price of the paper was just increased from $1 to $2 (a 100 percent increase in price). Before this, the paper’s publisher reduced the size of a page (meaning readers got less “news” for the same price – a common tactic to conceal inflation). I’ve also noted that the ad count – and page count – of the paper continues to fall.
To compensate for declining revenues, the paper obviously has had to cut back on editorial and support staffers.
If the economy was in as strong a condition as its writers reported, why would the paper’s sales staff be having such a hard time selling ads? Why would so many subscribers be cancelling their subscriptions? 
The answer is they wouldn’t. Even in their own 9-to-5 world (if they happened to observe it), editors and writers could easily conclude that the story they were telling in their paper didn’t match the economic reality of their own business.

The New York Times, MSNBC, CSNBC, CBS News, Time magazine, your local paper … the “real story” about the state of these news organizations’ economic conditions are the same. But it’s a story that is not getting reported. [Read more...]

Prepare For Dollar Collapse With Physical Assets – Rickards

Jim Rickards ChinaIn an excellent interview with Bloomberg, Jim Rickards correctly states that the Fed is completely insolvent on a mark to market basis, that the stock market is up over gold since 2010 because The Fed is manipulating stocks up and gold down, and urges investors to prepare for a dollar collapse by rotating OUT of stocks, and into PHYSICAL assets.  [Read more...]

Asset Prices Can Collapse at Any Time-Axel Merk

economic collapseMoney manager Axel Merk thinks new Fed Chief Janet Yellen can’t do much to improve the labor market even though she claims she’s most interested in helping Main Street, not Wall Street.  Merk says, “Yellen is from Berkley, our neighborhood, and it’s all about warm and fuzzy feelings.  Ultimately, of course, there is only so much the Fed can do for Main Street.”
Merk says, “Home price inflation is not sustainable.  It’s a very fragile policy because it can evaporate at any time.  The moment the ‘taper’ talk started, new home sales, existing home sales deteriorated because, guess what, as interest rates move up, you have to pay more for your home.”
On the possibility that the economy could suddenly collapse, Merk said, “What could possibly go wrong when the stock market goes up every day?  Asset price inflation means asset price inflation can reverse.  You can have a collapse in asset prices at any time.  You saw it in gold a little bit in April of last year.  There was just no bid out there.  The same thing can happen in the equity markets.”
Merk says he holds core assets of physical gold and silver, “mostly gold.”  Join Greg Hunter as he goes One-on-One with Axel Merk of MerkFunds.com. [Read more...]

Dollar Devaluation: Hard Evidence At Your Local Grocery Store

inflationThere are certain facts that are difficult to face in the world. One is that the currency you have spent you life working for isn’t worth what you thought it was. In reality, it may not even be worth the paper that it’s printed on. The United States paper currency has been very slowly devalued for over a century now. This was accelerated into high gear on August 15, 1971 when Nixon took the United States off the gold standard. By removing the gold backing (value) from the United States currency, it opened the door to the unfettered money printing that we have today.
This Is What Stealth Inflation Looks Like.
Stealth inflation is how the authorities hide the devaluation of the dollar in plain sight. Do you think political decisions at the county, state and federal levels would be shown in a different light if your food bill had been VISIBLY raising by 20% to 30% per year for consecutive years?
The images in this article tell the difficult truth for all to see, and the numbers don’t lie.   

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Alasdair Macleod: The Current Asset Bubble is the Biggest in the History of Currency Itself!

BubbleAsset classes from bonds to fine art are rising, underwritten by zero interest rates. The underlying bubble is the biggest and deliberately synchronised bubble in history, of currency itself.
The rate at which it inflates does not appear to be slowing, despite the Fed’s tapering. Otherwise markets would be stalling. Instead the Fed’s tapering programme must be being offset by something like a pick-up in bank lending.
If so, then all classes of investment assets can continue to rise in price and the party goes on. Indeed, if the Fed continues to taper, we can take it as a reasonable indication that growth in bank lending is fully compensating. [Read more...]

Argentina today – the U.S. tomorrow: Got PHYZZ?

dollar hyperinflationIn this excellent interview with Jim Goddard, David Smith, senior analyst for The Morgan Report discusses the economic collapse of Argentina, and warns investors that what they are witnessing in the South American country is coming to the US.
Smith has recently spent several weeks in Argentia and witnessed the ravages of currency devaluation firsthand as Argentina devalued the Peso once again against the dollar.
Smith states that the inflation induced hoarding is intensifying in Argentina, and that while the US dollar has been strengthening recently vs. other fiat currencies, an Argentina-like fiat collapse is coming to the US in the next few years. 
David Smith’s full interview on his first-hand experience of the Argentinian Peso collapse is below:
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Chris Martenson: Years of money pumping will end in equity rout

Chris MartensonOur lead story: JP Morgan Chase, the largest bank in the US by assets is reducing its headcount for 2014. The bank announced the changes, saying that creating a business model that can deal with new regulation is cutting into the firm’s profits. JP Morgan said it expects its total headcount to fall by 5,000 to 260,000 people. But JP Morgan is confident that it can win in this new environment… by replacing humans with machines. Erin explains.
Then we welcome Chris Martenson of Peakprosperity.com to give his thoughts on the Federal Reserve and the weak fundamentals of the US economy. In the first segment, Martenson discusses the effect of the huge flood of liquidity created by the Fed on the market. He also explains why bond prices can go up as a result of the Fed’s quantitative easing. After the break, Martenson describes why quantitative easing has helped equity prices but hasn’t helped the underlying economy, and talks about what is happening with inflation in the economy. [Read more...]

A Massive Move is Coming in Silver: Will it Be a Waterfall Or Blastoff to Triple Digits?

launch rocket verticalAs you will see below, there is a great deal of ‘misplaced inflation’ sitting in the stock market just waiting to find a home in silver.
The key number for silver to get back through at the moment is $23, which is the 62.8% retracement from $50 denoted on the long-term weekly plot. Once firmly back into the Fibonacci grid, market observers should watch for two important potential developments: First, a fall back through $23, and then the large round number at $20, would signal a potential waterfall decline in price, which is of course what the Western banking cartel would love to see.  They are attempting to engineer this via their faulty and fraudulent Anglo / American paper pricing mechanisms that are still referred to as markets (think COMEX, ETF’s, etc.), but so far have failed in this regard.   The second important thing to watch for is a lasting break above key Fibonacci resonance related resistance at $33. Once this is history, then it’s a forgone conclusion $50 will offer limited resistance as silver blasts off through $100 into triple digit territory. 

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Deepcaster: Profit & Protect from Multiple Deceptions & Delusions

debt chicaneryDo you own any Bonds? Does your Retirement Account hold any Bonds? Better check. And in particular check the Yield.
Consider the recent fate of Bonds issued in Argentina or Turkey. And consider what the Real Inflation Rate is in Emerging Market Countries.
The Deception/Delusion (whichever one prefers) is not only about the Real Rate of Inflation. What about “Bail-Ins” and “Super Priority” Rights of Mega-Financial Institutions in the event of another Financial Crisis?
And does the country of issuance have Capital Controls? Is the after-tax Yield really sufficient to compensate for the Real Rate of inflation and Risk to Principal?
If Answers to any of these Questions Disturb you, just realize where a large Part of the Blame lies. The Fed and other Central Bankers have and are devaluing money and interest Rates to the point where Money can be borrowed at very low rates.

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15 Reasons Why Your Food Bill Is ABOUT TO SOAR!

U.S. Drought Monitor California February 11 2014California, the U.S. state that produces the most vegetables is going through the worst drought it has ever experienced.  In addition, the size of the total U.S. cattle herd is now the smallest that it has been since 1951!
Just the other day, a CBS News article boldly declared that “food prices soar as incomes stand still“, but the truth is that this is only just the beginning.  If the drought that has been devastating farmers and ranchers out west continues, we are going to see prices for meat, fruits and vegetables soar into the stratosphere.  Already, the federal government has declared portions of 11 states to be “disaster areas”, and California farmers are going to leave half a million acres sitting idle this year because of the extremely dry conditions.
These extremely dry conditions are going to severely affect food prices. 
The following are 15 reasons why your food bill is going to start soaring… [Read more...]

Peter Schiff: We’re Going to be Hit with a Tsunami of Inflation

Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

Money manager Peter Schiff has a read on gold short sellers. Schiff says, “Of course the short sellers never had the gold to begin with!  They’re selling gold they don’t have, and I think the shorts are getting a little bit nervous, but they are going to get a lot more nervous as we turn up the heat here. Gold is now above $1,300 (per ounce).
I think it’s going to be above $1,400 before they start to panic a little bit, and I think that’s great.” Schiff goes on to say, “I like the fact the market is moving up and nobody is buying it, nobody is paying attention to it. If they are, they are dismissing it. People think this is a head fake or a dead cat bounce. Instead, it’s the resumption of the (gold) bull market.
On gold mining stocks, Schiff proclaims, “The valuations are phenomenal in the mining sector because everybody assumed that the price of gold was going to keep falling, and those false assumptions were built into these share prices.
Peter Schiff’s full thoughts on the coming tsunami of inflation, and the resumption of the gold (& silver) bull markets is below:
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Deepcaster: Surmounting The Hostile Incoming

incomingWe know that there is precedent for Mega-Bank “Bail-ins” (i.e. confiscation) of Depository Accounts (cf. Cyprus and Poland) and Super-priority payments to Mega-Banks, (cf. MFGlobal) in the event of another Financial Crisis.
And now we hear, in the SOTU no less, that Americans are invited to stash their wealth (such as they have left) in MYRAs, which presumably will hold Treasury Securities.
Securities which depreciate as inflation increases.
And Investors have to cope with other “incoming” as well including Real Inflation of about 9%, & Real Unemployment of 23%.
And also we have suppression of P.M. prices. But there is a strategy for Surmounting all this Incoming and Profiting. At best American Holders of MYRA are likely to Suffer loss from inflation, and at worse loss of principal.
But arguably the more serious Incoming Threat is the Ongoing Destruction of the Purchasing Power of the $US by the private for-profit US Fed’s policies.
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FMQ Update & the Implications for Gold & Silver Valuations

binford xlBy December, the most recent month for which statistics are available, the US dollar Fiat Money Quantity (FMQ) had grown to $12.48 trillion.
This is $5.05 trillion more than if it had grown in line with the established average monthly growth rate from 1960 to the month before the Lehman Crisis.

By this measure of currency inflation, since August 2009 inflation is now 68% above trend. [Read more...]

Am I the only person who thinks inflation is here right now?

hyperinflationWell, I’m perplexed and befuddled. For a couple of years now I’ve been reading economic news stories like the above where it is seemingly “accepted” by the mainstream  media that the rate of inflation is “low” and contained, and, as this blurb indicates, even alarmingly so.
 But I don’t get it. Inflation, from my perspective, is high and going even higher.
I base this opinion on the prices of things (goods and services) that I actually buy.