01.20.18- A Shocking Admission: “The Federal Reserve is a Criminal Conspiracy”
Charles Hugh Smith

A spokesperson assured the assembled media that the Fed Board was “deeply concerned” about the American people, inflation, and the unemployment rate, but he was heckled off the stage.

In an extraordinary admission, the Board of Governors of the Federal Reserve conceded that the Federal Reserve is “at heart a criminal conspiracy of bankers.” The Board followed up this revelation with a breezy confession that the Fed “doesn’t really give a rat’s rear-end about the American people, and we’re tired of having to claim we do.” Read More

01.19.18- The Next Financial Crisis Will Be Worse Than the Last One
Nomi Prins

We made it through 2017.

And if you look at the stock and asset markets, as Donald Trump tends to do (and as Barack Obama did, too), you’d think all is fine with the world.

The Dow Jones Industrial Average rose about 24% last year. The Dow Jones U.S. Real Estate Index rose 6.20%. The price of one bitcoin rose about 1,646%.

And so far 2018 has been more of the same.

On the flip side of that euphoria however, is the fact that the median wage rose just 2.4% last year and has remained effectively stagnant relative to inflation. And although the unemployment rate fell to a 17-year low of 4.1%, the labor force participation rate dropped to 62.7%, its lowest level in nearly four decades.Read More

01.18.18- If Interest Rates Spike, Here's Who Will Be Hurt The Most
Tyler Durden

Interest rates are finally rising, and as we observed this morning, the 10Y - now above 2.60% and the highest since last March is now on the cusp of breaking above the 2.63% level which Jeff Gundlach said last week  is where stocks will be negatively impacted.

And while the financial sector is poised to benefit from this increase, although not if the curve flattens and eventually inverts, something which would unleash havoc among the banks, there are many parts of the US economy that will be unequivocally and negatively impacted from the rise in interest rates. Among them are housing, business investment and, of course, consumer spending: with credit card already at record highs, increase in the APR will crush America's purchasing power. Read More

01.17.18- Albert Edwards: The Trigger For The Next Market Correction
Tyler Durden

Fear of overvaluation – particularly for U.S. equities – has driven far too many investors to miss the strong bull market. For market bears to be proven right, according to Albert Edwards, it will take one or more of several triggers.

Edwards is the global strategist for Societe Generale and is based in London. He spoke at his firm’s annual investment conference in London on July 9. A copy of his slides, as well as those from his colleague Andrew Lapthorne’s presentation, can be found below. Read More

01.16.18- As the Controlled Inflation Scheme
Rolls On

MN Gordon

American consumers are not only feeling good.  They’re feeling great.  They’re borrowing money – and spending it – like tomorrow will never come.

On Monday the Federal Reserve released its latest report of consumer credit outstanding.  According to the Fed’s bean counters, U.S. consumers racked up $28 billion in November in new credit card debt and in new student, auto, and other non-mortgage loans.  This amounted to an 8.8 percent increase in consumer borrowing.  It also ran total outstanding consumer debt up to $3.83 trillion. Read More

01.15.18- Drowning In The Money River
Adam Taggart

Why the 99% of us are falling farther behind

It's a big club and you ain't in it. ~ George Carlin

If you suspect society is unfair, that there's a different set of rules the rich live by, you're right.

I've had ample chance to witness first-hand evidence of this in my time working on Wall Street and in Silicon Valley. Simply put: our highly financialized economy is gamed to enrich those who run it, at the expense of everybody else.

The Money River

A recent experience really drove this home for me. Read More

01.13.18- Social Change Will Upend the Status Quo
Charles Hugh Smith

The nation is fragmenting because the Status Quo is failing the majority of the citizenry.

The core narrative of the Status Quo is that nothing fundamental needs to be changed: all the problems can be solved with more "free money" (borrowed from the future at low rates of interest) and a few policy tweaks such as Universal Basic Income (UBI) (the topic of my new book Money and Work Unchained).

This core narrative is false: everything needs to change, from the bottom up. And that of course terrifies those gorging at the trough of status quo wealth and power. Read More

01.12.18- Party While You Can - Central Bank Ready To Pop The 'Everything' Bubble
Brandon Smith

Many people do not realize that America is not only entering a new year, but within the next month we will also be entering a new economic era. In early February, Janet Yellen is set to leave the Federal Reserve and be replaced by the new Fed chair nominee, Jerome Powell. Now, to be clear, the Fed chair along with the bank governors do not set central bank policy. Policy for most central banks around the world is dictated in Switzerland by the Bank for International Settlements. Fed chairmen like Janet Yellen are mere mascots implementing policy initiatives as ordered.  This is why we are now seeing supposedly separate central banking institutions around the world acting in unison, first with stimulus, then with fiscal tightening.  Read More

01.11.18- Traders Remind Central Banks to Take Care on Route to Exit Door
David Goodman

Global central banks are being served a sharp reminder by investors that their monetary policy planning carries the potential to roil financial markets in 2018.

minor tweak in the Bank of Japan’s bond-purchase operation Tuesday saw the yen strengthen more than 1 percent in two days. A change in the way China’s central bank manages the yuan sparked losses in that currency while recent hawkish comments from European Central Bank officials nudged the euro higher. Read More

01.10.18- The day I found out it was all rigged
Simon Black

May 6, 2010 started off as a pretty boring day.

The most exciting stories from the morning’s newspapers were reviews of the upcoming Iron Man 2 film.

But all that changed at around 2:45pm when, without warning, the stock market crashed, and the Dow Jones Industrial Average dropped 1,000 points within minutes.

It was unprecedented… especially because there was absolutely no reason why stocks should have fallen so much. Read More

01.09.18- What Has QE Wrought?
Dr. Ron Paul

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01.08.18- And Now, for Something Entirely Different: UFOs, Tesla, DeLonge, ETS, Covert Ops
Jon Rappoport

“I HAVE HARNESSED THE COSMIC RAYS AND CAUSED THEM TO OPERATE A MOTIVE DEVICE.”- NIKOLA TESLA, BROOKLYN EAGLE (10 JULY 1931)

This is a “what if” story. But it’s also based on decades of experience analyzing propaganda and cover stories.

It’s based on the knowledge that military and intelligence operatives are trained to lie, and they like to lie, and they get up in the morning, licking their chops, because they know they’re going to lie during another day in paradise. Read More

01.06.18- It’s Not About Democracy: Control Fraud Is the Core of our Political System
Charles Hugh Smith

Charles Hugh Smith says “the many are finally calling out the abusers of power because there’s no longer any need to pay the corrupting costs…” 

he many are finally calling out the abusers of power because there’s no longer any need to pay the corrupting costs of centralization.

If we strip away the pretense of democracy, what is the core of our political System? Read More

01.05.18- Final Warning for America - The Fed Coin
Doug Casey

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01.04.17- Phillips Curve R.I.P.
Paul Craig Roberts

The Phillips Curve is the modern day version of the Unicorn. People believe in it, but no one can find it.  The Fed has been searching for it for a decade and the Bank of Japan for two decades.  So has Wall Street. 

Central banks’ excuse for their massive injections of liquidity in the 21st century is that they are striving to stimulate the 2% rate of inflation that they think is the requirement for sustained rises in wages and GDP.  In a total contradiction of the Phillips Curve, in Japan massive doses of central bank liquidity have resulted in the collapse of both consumer and financial asset prices.  In the US the result has been a large increase in stock averages propelled by unrealistic P/E ratios and financial speculation resulting in Tesla’s capitalization at times exceeding that of General Motors. Read More

01.03.18- Why the Financial System Will Break: You Can't "Normalize" Markets that Depend on Extreme Monetary Stimulus
Charles Hugh Smith

Central banks are now trapped.

In a nutshell, central banks are promising to "normalize" their monetary policy extremes in 2018. Nice, but there's a problem: you can't "normalize" markets that are now entirely dependent on extremes of monetary stimulus. Attempts to "normalize" will break the markets and the financial system.

Let's start with the core dynamic of the global economy and nosebleed-valuation markets: credit.

Modern finance has many complex moving parts, and this complexity masks its inner simplicity. Read More

01.02.18- Forecast 2018 — What Could Go Wrong?
James Howard Kunstler

If you take your cues from Consensus Trance Central — the cable news networks, The New York TimesWashPost, and HuffPo — Trump is all that ails this foundering empire. Well, Trump andRussia, since the Golden Golem of Greatness is in league with Vladimir Putin to loot the world, or something like that.

Since I believe that the financial system is at the heart of today’s meta-question (What Could Go Wrong?), it would be perhaps more to the point to ask: what has held this matrix of rackets together so long? After all, rackets are characterized by pervasive lying and fraud, meaning their operations don’t add up. Things that don’t comport with reality are generally prone to failure so sooner or later they have to implode. Read More

01.01.18- The Dreaded “Flattening Yield Curve” Meets QE Unwind
Wolf Richter

During prior incidents of an “inverted” yield curve, the Fed had no tools to get the market to push up long-term yields. Today it has one: the QE Unwind.

The price of three-month Treasury securities fell and the yield — which moves in the opposite direction — rose, ending the year at 1.39%, after having spiked to 1.47% on December 26, the highest since September 12, 2008. This is in the upper half of the Fed’s new target range for the federal funds rate (1.25% to 1.50%). Back in October 2015, the yield was still at 0%: Read More

12.30.17- Doug Casey On The Coming Financial Crisis: "It's A Gigantic Accident Waiting To Happen"
Justin Spittler

Justin’s note: Earlier this year, Fed Chair Janet Yellen explained how she doesn’t think we’ll have another financial crisis “in our lifetimes.” It’s a crazy idea. After all, it feels like the U.S. is long overdue for a major crisis. Below, Doug Casey shares his take on this. It’s one of the most important discussions we’ve had all year.

Justin: Doug, I know you disagree with Yellen. But I’m wondering why she would even say this? Has she lost her mind? Read More

12.29.17- And Now, for Something Entirely Different: Deep State Takedown In Progress: Is Trump About To Start Arresting Top Democrats And Bringing Them To Justice?
Michael Snyder

When Donald Trump gets hit, he always hits back even harder.  So when the deep state decided to conduct a legal witch hunt against President Trump and his family, they should have expected that Trump would return the favor.  In recent days, there have been all sorts of rumblings about sealed indictments, pending arrests and a “deep state takedown”.  Many believe that we are on the verge of seeing some of the most prominent Democrats in the entire nation being arrested and thrown in prison.  We shall see how all of this plays out, but in this article I am going to focus on the things that have been confirmed so far. Read More

12.28.17- The Dark Power Behind the Frauds and Financial Asset Bubbles - Whose Fool Are You?
LE CAFÉ AMÉRICAIN

"While everyone enjoys an economic party the long-term costs of a bubble to the economy and society are potentially great. They include a reduction in the long-term saving rate, a seemingly random distribution of wealth, and the diversion of financial human capital into the acquisition of wealth. 

As in the United States in the late 1920s and Japan in the late 1980s, the case for a central bank ultimately to burst that bubble becomes overwhelming. I think it is far better that we do so while the bubble still resembles surface froth and before the bubble carries the economy to stratospheric heights. Whenever we do it, it is going to be painful, however.” 
Read More

12.27.17- Doug Kass' 15 Surprises For 2018: FANG Crackdown, Gold All-Time-Highs, Stocks Slump
Doug Kass

Contrary to the expectations of many (including myself), the uncertainty following the surprising Trump presidential election victory, which produced a number of possible outcomes (some of them adverse), was enthusiastically embraced by investors in 2017.

After a year of historically low volatility and ever-rising stock prices, the bullish consensus was "in" and the contrary was "out" in 2017.

But after the Trump election win in late 2016, a market on steroids was not a conclusion or forecast by any main stream Wall Street forecaster. Read More

12.26.17- Americans have no savings and with very good reason: housing, education, and health care have seen extraordinary inflation while wages are stagnant.
mybudget360

It has now become a daily ritual in which story after story of broke Americans plaster the web.  Yet somehow on the mainstream press, very little is discussed about this topic.  Americans are largely broke because inflation is vey real.  Housing, education, and health care costs have soared out of control while wages have remained stagnant.  The way Americans continue to pay for these items is by going into loan shark levels of debt.  There used to be a pretense that “we” actually cared about having a middle class but that is now thrown out the window.  At this point, we are in a full on sprint towards low wage capitalism.  Many people live on a paycheck to paycheck diet. Read More

12.25.17- Ready To Delete The Fed
And Congress Yet?

Karl Denninger

Once in a while you read something that has a nugget of truth in it -- on accident.

That is, the writer didn't intend to enlighten, and for 99% of the people in the country, it won't -- because America is, for the most part, an innumerate nation.

It is for this very reason that I have pounded my head against the wall on this web page for over 10 years.  If the people of this nation were not innumerate there would have been an utterly vicious reaction by now and not one single politician -- or Fed President -- would still be in office.  None.

They'd have either left peacefully or piecefully long ago. Read More

12.23.17- Weekend Rant: Benjamin Franklin’s
Warning Is Coming True

Simon Black

“Anyone who has the courage to be honest and objective can see the obvious decay…”

On September 17, 1787 on the final day of the Constitutional Convention in Philadelphia, Benjamin Franklin was approached by a woman as he walked out of Independence Hall.

“Well Doctor, what have we got– a republic, or a monarchy?” she asked.

It was a burning question on everyone’s mind: what form of government would the Constitutional delegates establish for the new country?

Franklin didn’t hesitate. “A republic– if you can keep it.” Read More

12.22.17- And Now, for Something Entirely Different: De Facto Travel Restrictions Now Exist For Americans
Paul Craig Roberts

Green Party presidential Candidate Jill Stein is being investigated by the Senate Intelligence (sic) Committee for “Russian connections.” What has brought Russiagate to Jill Stein? The answer is that she attended the 10th Anniversary RT dinner in Moscow as did the notorious “Russian collaborator” US General Michael Flynn. RT is a news organization, a far better one than exists in the West, but if you were one of the many accomplished people who attended the anniversary dinner, you are regarded by Republican Senator Richard Burr from North Carolina as a possible Kremlin agent. Read More

12.21.17- Yield Curve Steepens Dramatically:
What's Going On?

Mike Shedlock

US treasuries are seeing action we have not seen for a while: Strong sharp steepening of the yield curve.

The yield curve is said to steepen when the spreads between short-term and long-term rates increases. The yield curve flattens when spreads shrink.

A bearish steepener occurs when rates are rising and long-term yields are rising more than short-term rates. Spreads widen.

A bullish steepener occurs when rates are falling and short-term rates are falling faster than long-term rates. Spreads widen.

A bullish flattener occurs when rates are falling and long-term rates are falling faster than short-term rates. Spreads narrow. Read More

12.20.17- And Now, for Something Entirely Different: How to Recapture the True Spirit of Christmas in a Toxic Age
John W. Whitehead

“I think there must be something wrong with me, Linus. Christmas is coming, but I’m not happy. I don’t feel the way I’m supposed to feel.” -  Charlie Brown, A Charlie Brown Christmas

I keep waiting to encounter the “kind, forgiving, charitable, pleasant” Christmastime environment that Charles Dickens describes in A Christmas Carol: “when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow-passengers to the grave, and not another race of creatures bound on other journeys.” Read More

12.19.17- Bad Juju! US Treasury 10Y Term Premia Crushed As Fed Unwinds Treasury Note/Bond Holdings
Anthony B. Sanders

Its going to be bad juju (or incoming weeks) for some Treasury investors as The Fed continues its “great unwind” of their $4.4 Trillion balance sheet.

As The Fed dumps their Treasury Note/Bond holdings, the 10 year Term Premium declines.

The Term Premium is the compensation that investors require for bearing the risk that short-term Treasury yields do not evolve as they expected. Read More

12.18.17- Central Banks Want the World to Carry On While They Quietly Tighten
Rich Miller and Alessandro Speciale

Central bankers are gingerly trying to take away the punch bowl without interrupting the party.

Led by interest-rate increases by the Federal Reserve and the People’s Bank of China, central banks around the world shifted toward a tighter monetary stance this week. Yet the moves were either so well-telegraphed, or so tiny, and the language about future action so hedged, that there was barely a ripple in financial markets. Read More

12.16.17- Four Charts Prove The 'Economic Recovery' Is Just A Fed-Induced Entitlement Program For The Wealthy
Tyler Durden

"Economic recovery" in America no longer means what it used to mean.

Historically "economic recovery" was largely characterized by job and wage growth, distributed across the income spectrum, and a rebound in GDP growth to north of ~3%-5%.

These days, the notion of "economic recovery" has been hijacked by the Fed and bastardized in such a way that they celebrate "asset bubbles" rather than real growth in economic output. Read More

12.15.17- And So Begins The Rug-Yank Phase Of Fed Policy
MN Gordon

The political differences of today’s leading two parties are not over ultimate questions of principles.  Rather, they’re over opposing answers to the question of how a goal can be achieved with the least sacrifice.  For lawmakers, the goal is to promise the populace something for nothing while pretending to make good on it.

Take the latest tax bill, for instance.  The GOP wants to tax less and spend more.  The Democrat party wants to tax more and spend even more.  We don’t recall seeing any proposals to tax less, spend less, and shrink the size of the state.  And why would we? Read More

12.14.17- And Now, for Something Entirely Different: Get The Rope, Pitchforks And Torches
Karl Denninger

This is the sort of article that ought to get you digging around in the garage for what the American people seem to forget they have: Pitchforks, torches and rope.

There is one simple and easily actionable approach that each of us could take to try to wrest control over health policy decisions away from the lobbyists who now control it with little effective counterbalance and put it back in the hands of our patients, who should be powerful shapers of such decision making.

This is a short excerpt from an article in JAMA (Journal of the American Medical Association) on a conversation they urge doctors to have with you.  The gist of it?  Obamacare and forced cost-shifting in general is something you should demand more of from politicians. Read More

12.13.17- The Fed is Arranging Deck Chairs on the Titanic (the Iceberg Comes in 2018).
Graham Summers

The Fed concludes its final FOMC meeting of the year today.

The entire financial world expects the Fed to raise rates a final time. This will mark the fifth rate hike since December 2015, and the fourth of the last 12 months.

Throughout this time period, the Fed has routinely stated that it is confused as to why inflation is “too low.”

Inflation is not too low. The method the Fed uses to measure inflation is intentionally incorrect. As a result, the official inflation numbers reflect whatever the Fed wants, as opposed to reality. Read More

12.12.17- The Fed's Fantasy on Neutral Interest Rates
Frank Shostak

In her testimony to the Congressional Economic Committee on November 29, 2017, the Fed Chair Janet Yellen said that the neutral rate appears to be quite low by historical standards. From this, she concluded that the federal funds rate would not have to increase much to reach a neutral stance.

The neutral rate currently appears to be quite low by historical standards, implying that the federal funds rate would not have to rise much further to get to a neutral policy stance. If the neutral level rises somewhat over time, as most FOMC participants expect, additional gradual rate hikes would likely be appropriate over the next few years to sustain the economic expansion.Read More

12.11.17- The Process Through Which the First Major Central Bank Goes Bust Has Begun
Graham Summers

In the aftermath of the Great Financial Crisis, Central Banks began cornering the sovereign bond market via Zero or even Negative interest rates and Quantitative Easing (QE) programs.

The goal here was to reflate the financial system by pushing the “risk free rate” to extraordinary lows. By doing this, Central Bankers were hoping to:

1)   Backstop the financial system (sovereign bonds are the bedrock for all risk). Read More

12.09.17- Warning: Trump’s Federal Reserve Pick Hates Gold and Cash
Daily Bell

In case of emergency, you should always have a solid chunk of cash on hand. These days, that isn’t much riskier than keeping your money in a bank.

There are stories of banks and governments suspending accounts for no legitimate reason. Furthermore, the interest rates at banks hardly give you much incentive to store your money there.

But as with anything that gives individuals more control over their lives, the government doesn’t like it. They want the ultimate control to cut you off from your economic power. Read More

12.08.17- Finally, An Honest Inflation Index – Guess What It Shows
John Rubino

Central bankers keep lamenting the fact that record low interest rates and record high currency creation haven’t generated enough inflation (because remember, for these guys inflation is a good thing rather than a dangerous disease).

To which the sound money community keeps responding, “You’re looking in the wrong place! Include the prices of stocks, bonds and real estate in your models and you’ll see that inflation is high and rising.” 

Well it appears that someone at the Fed has finally decided to see what would happen if the CPI included those assets, and surprise! the result is inflation of 3%, or half again as high as the Fed’s target rate. Read More

12.07.17- Central Banks, Governments & Keynesian Economists Are Losing Their $hit Over Bitcoin
Jeff Berwick

If you were to tell me that central banks, governments, and Keynesian economists were in an uproar and hated something, I would put my finger to your lips and say, “Shhhh, you don’t even have to tell me what it is. Whatever it is, I love it.”

In this particular case, it happens to be bitcoin!

With bitcoin now on the cusp of breaking through $12,000 and a $200 billion market cap it seems all the puppets of the archaic, violent, tyrannical system of money and banking are losing their $hit! Read More

12.06.17- And Now, for Something Entirely Different: BLOCKBUSTER! - Deep Black Ops Contractor Exposes OKC!
Jeff Rense & Cody Snodgres

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12.05.17- The Economics of Bitcoin
Malavika Nair

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12.04.17- Three Blatant Lies The Fed Just Told You
Lee Adler

I told you I’d get you the rest of my Fed meeting notes soon, and (unlike the Fed) I always try to say what I mean.

Most of the little tidbits I gleaned from the latest meeting minutes (go here if you missed my expose earlier this week) are prevarications, obfuscations, or bald-faced lies. Here are a few.

Lie #1: Equities rise and fall because of investor behavior. 

Here’s what they said:

Broad equity price indexes rose notably, reportedly reflecting in part investors’ perceptions that tax reform was becoming more likely. Read More

12.02.17- Weekend Rant: Wall Street Criminals Continue Their Fraud And Theft: NO JAIL TIME
Mike Papantonio

Via America’s LawyerMike Papantonio talks with Danielle DiMartino Booth about how a new federal lawsuit says Goldman Sachs and other Wall Street banks rigged the U.S Treasury Bond Market to gain profits for themselves. Read More

12.01.17- And Now, for Something Entirely Different: The Ant and the Grasshopper
Jared Dillian

I’m sure you’ve heard the fable of the ant and the grasshopper. The ant busted his ass all year growing some grain to store for the winter, while the grasshopper was laying about, playing the fiddle. When winter came around, the grasshopper had no food, so he went to the ant’s house to beg for some. The ant told him to beat it, and the grasshopper starved to death. The end.

This tweet was getting retweeted all over the place last weekend. Apologies for the bad language. Read More

 

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