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

View Video

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

11.30.17- Waiting for the Avalanche
Jim Rickards

I’ve often compared the causes of financial crises to snowflakes that can trigger an avalanche. A massive amount of snow can accumulate before that one final snowflake comes along to start the chain reaction.

The climbers and skiers at risk can never know when an avalanche will start or which snowflake will cause it.

But it helps to know what to look for. Let’s look at three of the most likely snowflakes that could trigger the next financial crisis, all of which are likely in my view. These are by no means farfetched. Read More

11.29.17- Did Janet Yellen Just Recommend
Buying Bitcoin

Tyler Durden

Janet Yellen's last semi-annual testimony before Congress as Fed Chair has just concluded, and as usual it was filled with long-winded platitudes, which were enough to make the blood of anyone actually listening to her slow-motion drawl, come to a boil. 

For one, Yellen's hypocrisy hit bitcoinian levels when she had the temerity to say that she is “very disturbed” about the trend toward rising inequality, noting that the central bank only has a “blunt tool” that can’t be used to target certain groups. She's right: the "blunt tool", also known as a money printer, is can - and has - been repeatedly used to target a certain group: the ultra wealthy, i.e., the 0.1%, those who as Credit Suisse showed, have never been wealthier. Read More

11.28.17- And Now, for Something Entirely Different: Gobble, Gobble: Thanksgiving Dinners Stuffed with Savings Despite Rising Fuel Costs
Frank Holmes

I spend a lot of time writing and talking about inflation, especially as it affects the price of gold, oil and other commodities and raw materials. The year-over-year percent change in the cost of living has been reasonably low for the past five years, averaging about 1.3 percent on a monthly basis. For commodities, the average change has been even lower at negative 0.9 percent, as measured by the producer price index (PPI). This hasn’t been too constructive for gold and oil producers, but it’s been a windfall for American consumers and manufacturers. Read More

11.27.17- The Dumbest Dumb Money Finally Gets Suckered In
John Rubino

Corporate share repurchases have turned out to be a great mechanism for converting Federal Reserve easing into higher consumer spending. Just allow public companies to borrow really cheaply and one of the things they do with the resulting found money is repurchase their stock. This pushes up equity prices, making investors feel richer and more willing to splurge on the kinds of frivolous stuff (new cars, big houses, extravagant vacations) that produce rising GDP numbers. 

For politicians and their bureaucrats this is a win-win. But for the rest of us it’s not, since the debts corporations take on to buy their own stock at market peaks tend to hobble them going forward, leading eventually to bigger share price declines than would otherwise be the case. Read More

11.25.17- And Now, for Something Entirely Different: Bitcoin Mining Now Consuming More Electricity Than 159 Countries Including Ireland & Most Countries In Africa
powercompare.co.uk

Will Bitcoin Mining Consume All The World's Current Electricity Production By Feb 2020?

The map above shows which countries consume less electricity than the amount consumed by global bitcoin mining

Bitcoin’s ongoing meteoric price rise has received the bulk of recent press attention with a lot of discussion around whether or not it’s a bubble waiting to burst.  Read More

11.24.17- We Are Heading Full Steam Into The Biggest Credit-Default Cycle In Our Nation’s History
Porter Stansberry

This week, my famously bullish colleague Steve Sjuggerud mentioned a word of caution for the first time in many, many years…

In today’s Digest, I (Porter) will point out a second – and in my view, even more worrisome – sign that this aging bull market is definitely running out of steam.

But as always, before we get to the “meat and potatoes” of this week’s missive… just a few simple reminders. Read More

11.23.17- Holiday Rant: All The Old World Systems Are Being Deliberately Torn Down
Brandon Smith

As we approach the holiday season many people turn to thoughts on tradition, heritage, principles, duty, honor and family. They consider the accomplishments and even the failures of the past and where we are headed in the future. For most of the year, the average American will keep their heads in the sands of monotony and decadence and distraction. But during this time, even in the midst of the consumption frenzy it has been molded into, people tend to reflect, and they find joy, and they find worry.

What perhaps does not come to mind very often though are the institutions and structures that provide the "stability" by which our society is able to continue in a predictable manner. Read More

11.22.17- And Now, for Something Entirely Different: Don’t Just Give Thanks. Pay It Forward One Act of Kindness at a Time
John W. Whitehead

“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them.”—John F. Kennedy

It’s been a hard, heart-wrenching, stomach-churning kind of year filled with violence and ill will.

It’s been a year of hotheads and blowhards and killing sprees and bloodshed and takedowns.

It’s been a year in which tyranny took a step forward and freedom got knocked down a few notches. Read More

11.21.17- The Fed's Bubblenomics
Murray Sabrin

[The Following is adapted from a preface to a new report by Murray Sabrin, featured in his November 15 presentation, "Bubblenomics" at Ramapo College.] 

If you Google “dot com bubble,” you will get nearly 1.2 million hits, and 3.3 million hits if you Google “tech bubble.” A Google search of “housing bubble” will return nearly 11 million hits. (The searches were conducted on March 29, 2017). And if you search Amazon books for financial crisis 2008 you will get more than 1200 hits.

Given all the books, monographs, essays, articles, and editorials that have been written about back-to-back bubbles that occurred within two decades, one would think there would be nothing else to write about. Read More

11.20.17- Federal Reserve Enters Uncharted Territory as It Prepares for Next Recession
Peter Reagan

The Fed has openly recognized we’re headed towards the next severe downturn. With their backs against the wall, they’re preparing for this eventuality by looking at ways to lessen the impact.

Since we're still in what amounts to a 0% interest rate environment, they can't rely on cutting rates as they've done in the past. So now searching for a different "tool" in their toolbox.

What is that tool? Price-level targeting. Read More

11.18.17- The Biggest Wealth Transfer in History
Egon von Greyerz

(Editor's Note: The abomination called inflation is the result of a criminal act, perpetrated against the middle class, by a relatively small group of megalomaniacal putzes, as a means to intentionally steal the wealth from the people and deposit it in the vaults of the central bankers at the behest of their puppet masters. Inflation is not a natural occurrence, serves no positive purpose, and will destroy the economy of the United States within the next two to five years. To hear "what I really think" please follow this link - JSB)

What will happen between now and 2025? Nobody knows of course but I will later in this article have a little peek into the next 4-8 years. Read More

11.17.17- Central Bank Group Think: Convince the Public More Inflation is Coming
Mike "Mish" Shedlock

Chicago Fed chief Charles Evans is worried about the lack of inflation primarily because he is clueless about where to find it. As further proof of his economic illiteracy, Evans says "Low inflation expectations keep inflation down". 

Bloomberg reports Evans Says Fed Must Convince Public It Will Allow More Inflation.

The Federal Reserve should take a more aggressive stance toward boosting inflation and stop talking so much about using interest rates to ensure financial stability, Chicago Fed President Charles Evans said. Read More

11.16.17- What History Teaches
About Interest Rates

Brian Maher

Dear Reader,

“At no point in the history of the world has the interest on money been so low as it is now.”

Who can dispute the good Sen. Henry M. Teller of Colorado?

For lo eight years, the Federal Reserve has waged a ceaseless warfare upon interest rates.

Economic law, history, logic itself, stagger under the onslaughts.

We suspect that economic reality will one day prevail. Read More

11.15.17- And Now, for Something Entirely Different: Tony Bennett: Life at the Top for 66 Years
Gary North

Today, Tony Bennett will be publicly receiving the Gershwin Prize in Popular Song. It is granted annually by the Library of Congress. He is 91 years old.

The previous winners were Paul Simon, Stevie Wonder, Sir Paul McCartney, song writing team Burt Bacharach and Hal David, Carole King, Billy Joel, Willie Nelson, and Smokey Robinson. Here is what is unique about Bennett: the previous winners got their breakthroughs in the mid-1960's or the 1970's. Bennett got his in 1951. He has never looked back. Read More

11.14.17- And Now, for Something Entirely Different: The Whiskey Rebellion: How Brand New America Tore Up The Bill of Rights
Joe Jarvis

223 years ago today, “The Dreadful Night” occurred in Western Pennsylvania, after an uprising called The Whiskey Rebellion.

The United States was brand new. Soldiers who had fought for independence from Great Britain found themselves on opposite sides of a skirmish. Some were having their rights violated practically before the ink was dry on the Bill of Rights. Other Veterans of the Revolution were doing the oppressing at Alexander Hamilton’s behest.

The Whiskey Rebellion saw farmers stand up to an unfair tax handed down by the federal government, and the government responded with the force of a monarchy. Hamilton, the first Secretary of Treasury, may have had other motives for setting the precedent of force which still lives on today. Read More

11.13.17- Gresham’s Law meets its Minsky Moment
Dave Kranzler

There’s a reason that the Fed pursues these actions and it’s not a conspiracy theory. When unlimited cash hits a limited supply of assets, whether paper or hard, this inflationary deluge boosts taxable asset values by 100-1000%, fattening the coffers of the tax collectors. 

While it’s no secret that the Fed, along all global Central Banks, are supporting their respective financial systems by capping interest rates with “QE” (also known as “money printing”), the yield on the 10-yr Treasury has risen 36 basis points in two months from 2.04% in September to 2.40% currently. There have not been any Fed rate hikes during that time period. The yield on the 2-yr Treasury has jumped from 1.26% in early September to 1.66% currently. A 40 basis point jump, 32% increase, in rates in two months. Read More

11.11.17- Cryptos may destabilise fiat
Alasdair Macleod

The assumption in some quarters is that crypto-currencies will replace gold as money, or at least challenge it. This is an error borne out of a misunderstanding of catallactics, or the theory of exchange. It also ignores the fact that beyond a few European countries and North America, gold is firmly money in the minds of ordinary people. I wrote an article on this subject, explaining why cryptocurrencies are not a new form of money, here.

Anyone reading this article may wish to read my original article first, to understand the true status of cryptocurrencies. I concluded that cryptocurrencies are the purest form of financial bubble in the history of speculation, and will be of great theoretical interest to future generations, just as the phenomena of the Mississippi, South Sea, and tulip bubbles are to us today. I also wrote that Read More

11.10.17- Central Banks will Destroy the planet
Nomi Prins

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11.09.17- What Could Go Wrong?
James Howars Kunstler

Everybody and his uncle, and his uncle’s mother’s uncle, believes that the stock markets will be zooming to new record highs this week, and probably so, because it is the time of year to fatten up, just as the Thanksgiving turkeys are happily fattening up — prior to their mass slaughter.

President Trump’s new Federal Reserve chair, Jerome “Jay” Powell, “a low interest-rate kind of guy,” was obviously picked because he is Janet Yellen minus testicles, the grayest of gray go-along Fed go-fers, going about his life-long errand-boy duties in the thickets of financial lawyerdom like a bustling little rodent girdling the trunks of every living shrub on behalf of the asset-stripping business that is private equity (eight years with the Deep State-ish Carlyle Group) while subsisting on the rich insect life in the leaf litter below his busy little paws. Read More

11.08.17- Clearing Up One Specific Confusion About Bitcoin
Charles Hugh Smith

Charles says that Bitcoin is a superior means of exchange than fiat for this one specific reason. Here’s why…

If bitcoin can be converted into fiat currencies at a lower transaction cost than the fiat-to-fiat conversions made by banks and credit card companies, it’s a superior means of exchange.

One of the most common comments I hear from bitcoin skeptics goes something like this: Bitcoin isn’t real money until I can buy a cup of coffee with it.

In other words, bitcoin fails the first of the two core tests of “money”: that it is a means of exchange and a store of value. If we can’t buy a cup of coffee with bitcoin, it obviously doesn’t qualify as a means of exchange. Read More

11.07.17- The Federal Reserve Has Just Given Financial Markets The Greatest Sell Signal In Modern American History
Michael Snyder

Why have stock prices risen so dramatically since the last financial crisis?  There are certainly many factors involved, but the primary one is the fact that the Federal Reserve has been creating trillions of dollars out of thin air and has been injecting all of that hot money into the financial markets.  But now the Federal Reserve is starting to reverse course, and this has got to be the greatest sell signal for financial markets in modern American history.  Without the artificial support of the Federal Reserve and other global central banks, there is no possible way that the massively inflated asset prices that we are witnessing right now can continue. Read More

11.06.17- "Janet Yellen Powell"
Puts On Some Pants And A Tie

David Stockman

It can’t get any worse than this. Jerome Powell is a Wall Street-coddling Keynesian and Washington lifer who passes for a Janet Yellen replica – that is, save for his tie and trousers and his as yet underdeveloped capacity to whine pedantically.

During his years on the Fed since May 2012, Powell has voted approximately 44 times to drastically falsify interest rates and to recklessly and fraudulently monetize trillions of the public debt. That is, Powell has been all-in for a destructive central banking regime that is literally asphyxiating capitalist prosperity in America. Read More

11.04.17- The Great Complacency Fueled by Central Banks
Birch Gold Group

Market crashes often happen not when everyone is worried about them, but when no one is worried about them.

That’s why one of the biggest risks in the stock market right now is complacency. It’s become a reliable contrarian sign that a big reversal could happen at any moment.

Remembering Black Monday…

On October 19 we saw the thirtieth anniversary of Black Monday, the greatest one-day percentage stock market crash in U.S. history. Read More

11.03.17- An attempt to quantify the immeasurable
Steven Saville

To paraphrase Einstein, not everything worth measuring is measurable and not everything measurable is worth measuring. The purchasing power of money falls into the former category. It is worth measuring, in that it would be useful to have a single number that consistently reflected the economy-wide purchasing power of money. However, such a number doesn’t exist.

Such a number doesn’t exist because a sensible result cannot be arrived at by summing or averaging the prices of disparate items. For example, it makes no sense to average the prices of a car, a haircut, electricity, a house, an apple, a dental checkup, a gallon of gasoline and an airline ticket. Read More

11.02.17- The Can Kickers' Cacophony
David Stockman

They are kicking so many cans down there in the Imperial City that the endless din of clanking and banging is getting downright cacophonous. The last minute delay in the ballyhooed GOP tax bill, for example, is going to be a real racket maker because it's not just a one day delay----it's the start of a forever delay.

In a word, the GOP has lathered itself up in behalf of tax cuts costing $5.5 trillionover the next decade, but only had the (misguided) nerve to carve out a $1.5 trillionfree pass (deficit add-on) in its phony FY 2018 budget resolution. We will have more to say about this yawning $4 trillion gap below, but here's the crux of the matter. Read More

11.01.17- The Biggest Ponzi in Human History
Raúl Ilargi Meijer

Here’s the story in a nutshell: Ultra low interest rates mark a shift away from people’s wealth residing in their savings and pension plans, and into to so-called wealth residing in their homes, which are bought with ever growing levels of debt. When interest rates rise, they will lose that so-called wealth. 

It is grand theft auto on an unparalleled scale, and it’s a piece of genius, because while people are getting robbed in plain daylight, they actually think they’re winning. But as I wrote back in March of this year, home sales, and bubbles, are the only thing that keeps our economies humming. Read More

10.31.17- Federal Reserve Hesitates on QE Unwind, Balance Sheet Reduction
David Haggith

Is the Federal Reserve’s Great Unwind already coming unwound? I thought it would be good to check up on Federal Reserve balance sheet reduction since the Fed is supposed to be up and running on the move out of quantitative easing this month. It should be fascinating to see what progress the Fed is making as it happily applauds its own successful recovery.

The Federal Reserve balance sheet reduction that didn’t happen

Is balance sheet reduction the Fed’s Gordian knot? Read More

10.30.17- Will America’s Prosperity Be Completely Wiped Out By Our Growing Debt?
Kent Moors

The federal government is now 20.4 trillion dollars in debt, and most Americans don’t seem to care that the economic prosperity that we are enjoying today could be completely destroyed by our exploding national debt.  Over the past decade, the national debt has been growing at a rate of more than 100 million dollars an hour, and this is a debt that all of us owe.  When you break it down, each American citizen’s share of the debt is more than $60,000, and so if you have a family of five your share is more than $300,000.  And when you throw in more than 6 trillion dollars of corporate debt and nearly 13 trillion dollars of consumer debt, it is not inaccurate to say that we are facing a crisis of unprecedented magnitude. Read More

10.29.17- What Could Pop The Everything Bubble?
Charles Hugh Smith

I’ve long held that if a problem can be solved by creating $1 trillion out of thin air and buying a raft of assets with that $1 trillion, then central banks will solve the problem by creating the $1 trillion out of thin air - nothing could be easier.

This is the lesson of the past eight years: if a problem can be solved by creating new money and buying assets, then central banks will solve that problem. Read More

10.27.17- Markets Await Trump’s Decision
on Fed Chair

Jim Rickards

President Trump is expected to nominate the next Federal Reserve chair within a matter of days.

As I’ve explained before, Donald Trump has the opportunity to appoint a higher percentage of the Board of Governors of the Federal Reserve system at one time than any president since Woodrow Wilson.

President Wilson signed the Federal Reserve Act during the creation of the Fed in 1913 when they had a vacant board. At that time, the law said the secretary of the Treasury and the comptroller of the currency were automatically on the Fed’s board of governors. But besides that, President Wilson selected all of the other participating members. Read More

10.26.17- Next Week Could Decide Trump's Presidency
Brian Maher

Next Week Could Decide Trump's Presidency

Donald Trump says he’s “very, very close” to making a decision…

The president is expected to nominate the next Federal Reserve chairman before winging off to Asia next week.

Could his selection determine the outcome of his presidency?

And if he botches it, will Trump join Bush the Elder as the only single-term president in nearly 40 years?

Today we pry open the historical record… ransack the data… and weigh the evidence… Read More

10.25.17- How Trump Will Change the Fed Forever
Michael Carr

Federal Reserve officials like to say the Fed is above politics. It’s even designed to be that way.

The Board of Governors of the Federal Reserve System supervises the Fed. Individual governors vote on changes in interest rates and other policy decisions.

Governors serve 14-year terms. One term expires every two years. That prevents any one president from filling the board with his or her nominees. Read More

10.24.17- The Fed’s Everything Bubble And The Inevitable Asset Crash
Dave Kranzler

Do not mistake outcomes for control – remember, there is no such thing as control – there are only probabilities. – Christopher Cole, Artemis Capital

Central Banks globally have created a massive fiat currency fueled asset bubble.  Stock markets are the largest of these bubbles – a bubble  made worse by the Fed’s attempt to harness the “power” of HFT-driven algo trading.  At least for now, the Fed can “control” the stock market by pushing the buttons that unleash hedge fund black box momentum-chasing and retail ETF  buy orders whenever the market is about to head south quickly. Read More

10.23.17- Looming Fed Leadership Switch Could Shake Up Markets
Peter Reagan

An overhaul of the Federal Reserve’s leadership is coming, and the new appointees could bring a huge shift to the central bank’s policy outlook. How will markets respond?

Let’s examine the Fed’s impending transformation, and what it will mean for Americans’ wallets…

Trump’s New Fed

President Trump is getting an exceedingly rare chance to influence the Fed. He’ll be replacing five of the central bank’s seven-member governing board, potentially including Fed chair Janet Yellen. Read More

10.21.17- This is What it Looks Like When Credit Markets Go Nuts
Wolf Richter

Pricing of risk kicks bucket in record central-bank absurdity.

As the days pass, the perverse effects of central bank policies on the financial markets are getting more and more amazing. This includes the record-setting nuttiness now reigning in the European bond market, compared to the mere semi-nuttiness in the US bond market. Read More

10.20.17- This Is Why Bankers Keep Getting Away With Fraud
Jan D. Weir

Breaking The Power Of The Banks: This is the first of two articles on the use of the office for personal gain

When former FBI director James Comey was appointed AG for the Southern District of New York, the office that has jurisdiction over Wall Street, he called a meeting with his prosecutors. He asked for a show of hands for those who had never lost a case. He called those who raised their hands “chickenshit” for lacking the courage to take on tough cases and for too readily offering soft deals to avoid a trial. Read More

10.19.17- Carlyligarchy
PEU Report/State of the Division

The Guardian ran a piece on oligarchy.  It illuminated how a small number of greedy, power seekers can distort a democracy in their favor.  The story used ancient Greece but their practices brought to mind The Carlyle Group, a politically connected private equity underwriter (PEU).

At its core, oligarchy involves concentrating economic power and using it for political purposes. Democracy is vulnerable to oligarchy because democrats focus so much on guaranteeing political equality that they overlook the indirect threat that emerges from economic inequality. Read More

10.18.17- Kevin Warsh to Lead the Fed
in a New Direction

Jim Stone

The threat of nuclear crisis with North Korea. Two destructive hurricanes. Puerto Rico devastated and about out of money. The start of a major comprehensive tax reform effort, along with general political mayhem in Washington. The worst mass shooting in U.S. history. In the midst of it all, the President is apparently about to make a potentially momentous decision: A Fed chair will be appointed with a new four-year term.

As has become the norm, markets are happy-go-lucky (at almost daily record highs). How could anything possibly rock the boat? Read More

10.17.17- Trace The Fed’s Confusion To
FALSE ASSUMPTIONS

John Rubino

The basic premise that the Fed has on inflation is just wrong. John Rubino shows why the Fed’s false assumptions lead to major confusion…

Really Bad Ideas, Part 5: The Fed Should Have – And Defend – An Inflation Target

Central banks in general and the Fed in particular are struggling to understand a world in which they’ve thrown everything they have at the economy without generating “beneficial” inflation. Their confusion can be traced back to some profoundly false assumptions. Read More

10.16.17- How The Elite Dominate The World
– Part 1: Debt As A Tool Of Enslavement

Michael Snyder

Throughout human history, those in the ruling class have found various ways to force those under them to work for their economic benefit.  But in our day and age, we are willingly enslaving ourselves.  The borrower is the servant of the lender, and there has never been more debt in our world than there is right now.  According to the Institute of International Finance, global debt has hit the 217 trillion dollar mark, although other estimates would put this number far higher.  Of course everyone knows that our planet is drowning in debt, but most people never stop to consider who owns all of this debt.  This unprecedented debt bubble represents that greatest transfer of wealth in human history, and those that are being enriched are the extremely wealthy elitists at the very, very top of the food chain. Read More

10.14.17- Central Banks' Return to Normalcy Is Nothing But a Charade
Mark Grant

With their $21.5 trillion in assets, central banks have effectively manufactured the world's biggest economy

The Federal Reserve keeps talking about a “return to normal” in monetary policy. The media must buy into it, because it keeps repeating the phrase. Many investors buy into it, too. After all, it is the high and mighty Fed speaking. This “normal” is defined by interest rates, but interest rates are defined by the economics that surround them.

Interest rates do not exist in a vacuum. But since we are in an economic environment never before seen in history, where data compiled by Bloomberg show that central banks have amassed $21.5 trillion in assets, how can there possibly be any notion of “normal? Read More

10.13.17- Fed Officials Frantically Play Dumb to the Coming Inflationary Storm
Graham Summers

It’s a clever move, given that the reason inflation is believed to be “low” is because the Fed has been purposefully understating inflation for years.

Perhaps the biggest fraud ever committed in financial history concerns the understating of inflation in the Unites States post-1971. 

By the Fed’s own admission, the US Dollar has lost some 84% of its purchasing power since 1971, and yet the Fed has routinely claimed that inflation has been “subdued” or “under control” throughout that time period (with the exception of the inflationary spikes of the ‘70s). Read More

10.12.17- Be Patient, the Fed Will Screw You Eventually (With Media Praise All The Way)
Mike Mish Shedlock

Policymakers at the Fed are growing increasingly concerned about lagging inflation rates. Mainstream media and most academia pundits are on board preaching the benefits of what in reality is theft. 

Dallas Fed president Robert Kaplan says the Low 10-Year Yield is an 'Ominous' Sign.

The Fed has raised rates twice this year, and is widely expected to do so again in December. But even as the short-term interest rate targeted by the Fed has climbed, the yield on the benchmark 10-year Treasury has fallen, a reversal of what usually happens and a development that Kaplan said he sees as “a little ominous. Read More

10.11.17- The Market’s Got It Wrong
James Rickards

Janet Yellen’s mantra is, “It’s transitory!”

That’s Yellen’s typical response to a long litany of data that shows the U.S. is in the grip of a powerful disinflationary trend that may lead to outright deflation — a central banker’s worst nightmare.

The Fed has a publicly announced 2% inflation goal, which they consider to be price stability. In fact, 2% inflation cuts the purchasing power of the dollar by 75% in the course of an average lifetime. The Fed would tell you to ignore that.

Why 2% inflation is considered “price stability” is a subject for another day. For now, let’s just accept the Fed’s definition and see how the Fed responds from a policy perspective. Read More

10.10.17- And Now, for Something Entirely Different: Las Vegas False Flag Mass Shooting: Real Casualties and Crisis Actors?
Makia Freeman

The Las Vegas false flag mass shooting that occurred on the night of October 1st, 2017, is without doubt another false flag operation. The clues are everywhere, the official narrative is full of holes and the event fits the pattern of the false flag formula we have to come to know. We have another patsy who is a highly unlikely precision killer, we have evidence of multiple shooters, we have foreknowledge and we have no semblance of a motive. We live in such a twisted world that now, when events like these happen in the US, in an attempt to get to the truth we have to truly consider the possibility that the incident may have been a false flag hoax, i.e. a drill with crisis actors, fake ammo and fake blood. However, in this case, I personally know someone I trust who said their daughter’s friends were shot and injured. So: did real people die in this Las Vegas false flag operation? Read More

10.09.17- Federal Reserve President Kashkari’s Masterful Distractions
MN Gordon

The True Believer

How is it that seemingly intelligent people, of apparent sound mind and rational thought, can stray so far off the beam?  How come there are certain professions that reward their practitioners for their failures? The central banking and monetary policy vocation rings the bell on both accounts.  Today we offer a brief case study in this regard.

Minneapolis Fed president Neel Kashkari attacking a block of wood with great zeal. [PT] Read More

10.07.17- Fed's Dudley expects rate hikes; unmoved by inflation, storm effects
Jonathan Spicer

New York)  (Oct 6)  Surprisingly low inflation and a trio of hurricanes that will muddle U.S. economic data have not dissuaded one of the Federal Reserve's most influential policymakers from expecting the central bank to continue gradually raising interest rates.

New York Fed President William Dudley on Friday largely restated his confident take on the U.S. economy, arguing that the falling dollar and an unemployment rate that dipped last month to its lowest level since 2001 were reasons to keep tightening monetary policy. Read More

10.06.17- The Upcoming Increase in Interest Rates
Alasdair Macleod

Last week, both Janet Yellen of the Fed and Mark Carney of the Bank of England prepared financial markets for interest rate increases. The working assumption should be that this was coordinated, and that both the ECB and the Bank of Japan must be considering similar moves.

Central banks coordinate their monetary policies as much as possible, which is why we can take the view we are about to embark on a new policy phase of higher interest rates. The intention of this new phase must be to normalise rates in the belief they are too stimulative for current economic conditions. Doubtless, investors will be reassessing their portfolio allocations in this light. Read More

10.05.17- Central Banks at Risk of Default
Martin Armstrong

Central banks do not play games with the markets but it sure feels like we are being played by someone! Earlier this year the Bank of Japan, Federal Reserve and the European Central Bank all had similar balance sheets at around $4.5 trillion.  As we know, over the past ten years all three have risen from lower levels but have seen faster expansion by the BOJ and the FED gaining pace to now catch the ECB. Foreign exchange rates are always subjected to inherent volatility that is thrown into the mix. However, given the recent extremes on all fronts, there has been uncanny similarity around end of Q1’ 2017.

Typically, a central bank balance sheet would off-set Assets against Liabilities and capital. Read More

10.04.17- Former FOMC Member Admits The Fed Manipulates Asset Prices
Dave Kranzler

The Fed often treats financial markets as a beast to be tamed, a cub to be coddled, or a market to be manipulated. It appears in thrall to financial markets, and financial markets are in thrall to the Fed, but only one will get the last word. – Former FOMC member, Kevin Warsh – The Fed Needs New Thinking

Please note, a large portion of the source links, plus the idea for this commentary, were sourced from GATA’s latest dispatch regarding the possible appointment of Warsh as the next Fed Chairman. Read More

10.03.17- Fed Quack Treatments are Causing the Stagnation
MN Gordon

Bleeding the Patient to Health

There’s something alluring about cure-alls and quick fixes. Who doesn’t want a magic panacea to make every illness or discomfort disappear? Such a yearning once compelled the best and the brightest minds to believe the impossible for over two thousand years.

Instantaneous relief! No matter what your affliction is, snake oil cures them all. [PT]

For example, from antiquity until the late-19th century, bloodletting was used to treat nearly every disease. Read More

10.02.17- Those That Can Fix It Just Keep
Kicking The Can

Ron Ewart

On November 8, 2016 the American people assessed the damage inflicted on the nation by years of collectivist mis-government and delivered a thundering verdict at the polls. The election of Donald Trump signaled the culmination of one process in our politics and the beginning of another. What culminated was the growing disenchantment of the American public with shopworn practices generally called “liberal” but which in their devotion to big government and hostility to individual freedom are in fact illiberal and reactionary. Read More

09.30.17- Wake Up America -
The Dollar Is Going To Zero

Egon von Greyerz

For news to be read and understood by a great number of people, it must be simple, sensational and forgettable. Most individuals are not interested in “heavy” news or complicated issues. Just compare television and newspapers today to say 50 years ago. At that time, newspapers had very few pictures but instead covered serious matters with in depth analysis. Same with television. In the 1960s there was serious news and many programmes which raised important issues in society or politics, which many people listened to and grasped. Read More

09.29.17- Yellen Is So Much Better, And Still Nowhere Near Good 
Jeffrey P. Snider

I wrote earlier today that I believe Ben Bernanke one of the smartest men around. Whatever you might think of the usefulness of his career work, it is quite clear it was accomplished with some great talent. He occasionally offered some good, novel insight.

I’m not so sure about Janet Yellen. While her trademark deer-in-the-headlights look could have been explained as the profile of an uneasy public performer, the track record of her work even in academic Economics terms has been unremarkable. Her contributions to FOMC policy meetings, for example, show little other than those of a faceless bureaucrat who long ago learned that creative thinking would be a hindrance to career advancement. Read More

09.28.17- Systematic Economic Control:
What They Don't Tell You!

Stefan Molyneux

View Video

 

09.27.17- And Now, for Something Entirely Different: NFL Players Have A First Amendment Right To Act Like Little Bitches
Brandon Smth

Frankly, in my view, the sporting world should be a politics free zone, and the fact that I am compelled to write about politics in sports in America today is bewildering beyond belief. That said, to be clear, I am not a fan of the NFL. I think the sport, like most professional sports, is overrun with whiny, juiced-up morons paid millions of dollars for providing nothing to the public except sub-par entertainment and little-to-no loyalty to the state or city in which they happen to be employed. NFL players are not legitimate role models for society anymore that costumed television wrestlers are role models for society. Read More

09.26.17- Can The Fed “Normalize” Without Collapsing The System?
Dave Kranzler

The official lies about the economy keep mounting.  The Dallas Fed reports that its regional economic activity metric surged in early September, despite the complete shut-down of Houston for a few days during the “measurement” period.  The “general activity” index spiked up to a 7-month high. Clearly the quality of this report is suspect, to say the least.

Contrary to this report, the Chicago Fed’s National Activity Index plunged to -0.31.  It was the weakest reading since last August and a huge plunged from the July reading of 0.03. The Street was expecting 0.11.  Because of the nature of this index (85 sub-components measured at the national level) it takes a lot to “move the needle” for this metric.  A negative point-three-one reading implies that the national economy broadly contracted during August. Read More

09.25.17- Stupidity Well Anchored: Absurdity of Inflation Expectations in Graphic Form
Mike “Mish” Shedlock

The amount of sheer nonsense written about inflation expectations is staggering.

Let’s take a look at some recent articles before making a mockery of them with a single picture.

Expectations Problem

On July 17, 2017, Rich Miller writing for Bloomberg proclaimed The Fed Has an Inflation Expectations Problem. Read More

09.23.17- The Federal Reserve Is Now Ready to Blow It All Up
Brian Sozzi

The Federal Reserve has overseen an impressive expansion in stock prices globally. But one has to think it could all end before year's end as the Fed alters its approach to policy.

Feeling pretty amazing with all those juicy gains in your stock trading portfolio, huh. You probably feel like an unstoppable investing force that could take down Warren Buffett in an investing challenge. 

Well, get ready for a slap to the face followed by a kick to the groin. With the Fed decision and Yellen's presser just hours away, investors are about to get taken through a door they have never been through before. Read More

09.22.17- Spot The Moment Inflation Turned Exponential
Tyler Durden

In the aftermath of a surreal Janet Yellen press conference, in which the Fed chair admitted that Fed "no longer understands" the "mystery" that is inflation, we did our best to explain to Yellen that the reason why the Fed's search for inflation has been fruitless, is because for nearly a decade it has been looking in the wrong place: the "real economy" where the Fed's impact has been negligible, as opposed to "asset prices" where the Fed has unleashed near hyperinflation. 

Sadly, we doubt the Fed will understand what the chart below means. Read More

09.21.17- Today the music stops
Simon Black

Today’s the day. 

After months of preparing financial markets for this news, the Federal Reserve is widely expected to announce that it will finally begin shrinking its $4.5 trillion balance sheet.

I know, that probably sound reeeeally boring. A bunch of central bankers talking about their balance sheet.

But it’s phenomenally important. And I’ll explain why-

When the Global Financial Crisis started in 2008, the Federal Reserve (along with just about every central bank in the world) took the unprecedented step of conjuring trillions of dollars out of thin air. Read More

09.20.17- Federal Reserve Will Continue Cutting Economic Life Support
Brandon Smith

I remember back in mid-2013 when the Federal Reserve fielded the notion of a "taper" of quantitative easing measures. More specifically, I remember the response of mainstream economic analysts as well as the alternative economic community. I argued fervently in multiple articles that the Fed would indeed follow through with the taper, and that it made perfect sense for them to do so given that the mission of the central bank is not to protect the U.S. financial system, but to sabotage it carefully and deliberately. The general consensus was that a taper of QE was impossible and that the Fed would "never dare." Not long after, the Fed launched its taper program. Read More

09.19.17- The Federal Reserve is setting America up for economic disaster
Armstrong Williams

I recently had the opportunity to read the ‘Creature from Jekyll’ Island by G. Edward Griffin, a prodigious tome dealing with the circumstances surrounding the creation of the U.S. Federal Reserve system. I was taken aback by some of its provocative assertions.

  • America joined World War I largely to help a few bankers profit off the war (despite a long-standing Monroe doctrine that prohibited our involvement in European affairs)
  • The Bolshevik Revolution of 1917 was supported by international financial interests in order to destabilize Russia and steal the wealth of the Russian people; and Read More

09.18.17- Put the Wall in the Right Place
Paul H. Yarbrough

“Experience to a politician is like experience to a prostitute – not much to recommend them”—Charley Reese

The wall along the border is like a prostitute to politicians. If it cost money that’s okay. If not, that’s okay too. Anyway, it’s never going to get built because politicians, like prostitutes need more votes from the people (not “our citizens” as the pols like to call us) to continue their careers as swamp creatures. But, a necessary wall, a wall that will prevent crime, corruption and the spreading of PD (philosophical disease) is one that the people (not “our citizens”) would find useful, and probably stem the tide of the Washington plague. Read More

09.16.17- With a Central Bank, Bank "Deregulation" Can Be a Bad Thing
Frank Shostak

Leading Federal Reserve policymaker Stanley Fischer has hit out at plans to unwind banking regulation, calling it a "terrible mistake."

President Donald Trump and republican politicians have advocated the repeal of Dodd Frank, a major piece of post-crisis legislation, and the loosening of some capital and liquidity requirements in a bid to ease banks' ability to lend.

In an interview with the Financial Times on August 16, 2017, Fischer said that loosening capital and liquidity requirements is dangerous and could lead to a new economic crisis. Read More

09.15.17- Armstrong Logic?
Bill Hoter

I had not planned on penning a public article today but my plans were changed by Martin Armstrong as he again is busy attempting to rewrite history.  He is again trying to scare people away from their only financial hurricane insurance, gold …why?  Any thinking person knows a credit disaster is coming.  Heck, even he has called for a pending financial disaster himself…but gold is not a safe harbor “this time”?

As a reminder of past fallacy, Mr. Armstrong wrote back in September 2015 “…”You are doomed if you cling to the idea that gold will rise simply because stocks decline. Read More

09.14.17- “Bad Options” Regarding 2% Inflation Targets (And Other Silly Notions)
Mike “Mish” Shedlock

The Wall Street Journal and Bloomberg both posted ridiculous articles regarding today regarding inflation.

The former was on “bad options” the latter on “inflation expectations”.

Let’s take a look at both articles because both represent widely believed nonsense.

In Bad Options for Addressing Too-Low Inflation, Wall Street Journal writer Greg Ip says the Fed’s choice is to overheat the economy or give up its 2% target. Read More

09.13.17- In the Dark
James Howard Kunstler

The stock market is zooming this morning on the news that only 5.7 million people in Florida will have to do without air conditioning, hot showers, and Keurig mochachinos at dawn’s early light Monday, Sept 11, 2017. I’m mindful that the news cycle right after a hurricane goes kind of blank for a day or more as dazed and confused citizens venture out to assess the damage. For now, there is very little hard information on the Web waves. Does Key West still exist? Hard to tell. We’ll know more this evening. Read More

09.12.17- 1913: The Turning Point
Robert Curry

In 1913, Woodrow Wilson was the newly elected president.  Wilson and his fellow progressives scorned the Constitution and the Declaration.  They moved swiftly to replace the Founders' republic with a new regime.

There is widespread agreement that Wilson did not always show good judgment – for example, in his blunders in international relations – but in the project of overturning the Founding, he and the movement he led selected their targets shrewdly.  By the time he left office, the American republic was, as they say, history. Read More

We Kill Each Other For PAPER
SGTreport

View Video

09.09.17- The world’s most powerful bank issues a major warning
Simon Black

In 1869, a 48-year old Jewish immigrant from the tiny village of Trappstadt in Germany’s Bavaria region hung a shingle outside of his small office in lower Manhattan to officially launch his new business.

His name was Marcus Goldman, and the business he started, what’s now known as Goldman Sachs, has become the preeminent investment bank in the world with nearly $1 trillion in assets.

They didn’t get there by winning any popularity contests.

Goldman Sachs has been at the heart of nearly every major banking scandal in recent history. Read More

09.08.17- The Sneaky Way Big Banks Could Penalize Cash and Implement NIRP
Birch Gold Group

It’s no secret that the government and big banks don’t like cash. It’s cumbersome, it’s anonymous, and it’s hard to track.

Most conventional forms of digital transactions, on the other hand, can be tracked at all times. They are not anonymous. And it’s hard to avoid income taxes on digital dollar-based transactions.

The problem for governments to eliminate cash is that Americans will resist any effort to do so. They will also resist any effort to impose negative interest rates. So how can both of these goals be accomplished at the same time? One economist has a plan… Read More

09.07.17- The Global Elites’ Secret Plan for Cryptocurrencies
James Rickards

[Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to get your free copy – HERE. This vital book transcends rhetoric from the world of Cryptocurrencies to prepare you for what you should be watching now.]

Interest in Bitcoin is red hot at the moment. It’s impossible to open a website, listen to a podcast, or watch a video in the financial space without hearing about the meteoric rise in the price of Bitcoin. Read More

09.06.17- Where Did Everyone Go?
Brady Willett

The Fed started hacking interest rates in 2007 and QE3 ended in October 2014.  This 7-year period of extraordinary ease, and the nearly 3-year upswing since, has been a difficult time for many market contrarians and so called ‘bears’.  To wit, Cornerstone has been missing since 2015, Contrary Investor hasn’t released anything publicly since 2013, and Cross Currents, Beartopia, Financial Armageddon, iTulip, Nystrom, Iacono, and numerous others have gone into deep hibernation.  As for Prudent Bear, Tice sold his fund as the crisis began and now the site is trying to look prim and proper (I preferred it when a visit to Prudent Bear meant reading the ‘Bear’s Lair’ and seeing another Tice warning about the coming collapse in the stock market (which, of course, Mr. Tice is still warning of)).Read More

09.05.17- 15 Trillion Gallons Of Keynesian Goodness?
David Stockman

If you ever wondered why our monetary central planners and their Wall Street megaphones are so clueless about the on-going deterioration of capitalist prosperity in America, look no farther than this bit of tommyrot from JPMorgan’s chief economist. Therein one Michael Feroli avers that Harvey’s estimated 15 trillion gallon deluge on Houston may appear to be crushing tens of billions of residential, commercial and industrial properties, but not really.

Alas, what finally appears to be real news from CNN is not all that. By the lights of Feroli’s economics, Harvey is a fake disaster that will lead to an increase in GDP! Read More

09.04 17- The Vanishing American Dream
Paul Craig Roberts

Today is Labor Day, a difficult day to celebrate now that American labor has been cast aside and US jobs offshored and given to foreigners. The remainder of the jobs is slated to be replaced by robotics.

Friday’s payroll jobs report was full of bad news. Full-time jobs declined by 166,000. The meager 156,000 new jobs claimed are really only 115,000 net of the prior month’s revision, and this 115,000 jobs estimate is within the range of statistical insignificance. In other words, there is no confidence that the jobs are actually there. Read More

09.02.17- A History of the Fed's Political Power
David Gordon

Peter Conti-Brown, a legal historian who teaches at the Wharton School, would sharply dissent from Ron Paul’s wish to End the Fed. He never cites Mises or Rothbard, and the only Austrian work that he mentions, hidden away in an endnote, is Vera Smith’s The Rationale of Central Banking and the Free Banking Alternative. Nevertheless, Austrians will find Conti-Brown’s book of great value. He has, with considerable scholarship, exposed many grave problems with the Fed in a way that strengthens and supports the anti-Fed case. Read More

09.01.17- See no evil, speak no evil…
Alasdair Macleod

The Jackson Hole speeches of Janet Yellen and Mario Draghi last week were notable for the omission of any comment about the burning issues of the day:

...where do the Fed and the ECB respectively think America and the Eurozone are in the central bank induced credit cycle, and therefore, what are the Fed and the ECB going to do with interest rates? And why is it still appropriate for the ECB to be injecting raw money into the Eurozone banks to the tune of $60bn per month, if the great financial crisis is over?i Read More

08.31.17- Death of the U.S. Dollar Reserve Currency...Picking Up Speed
Steve St Angelo

The Death of the U.S. Dollar as the world’s reserve currency will have a profoundly negative impact on the lives of most Americans.  Unfortunately, 99% of the population has no clue.

The only reason 1% of U.S. citizens understand what is going on, is because the Mainstream media and financial networks have distorted the truth and the reality of our present situation.

What happened in the markets today was a perfect example.  Zerohedge published an article today titled,  ‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears, and stating the following: Read More

08.30.17- A Decade of Central Bank Collusion and Counting
Nomi Prins

Since late 2007, the Federal Reserve has embarked on grand-scale collusion with other G-7 central banks to manufacture a massive amount of money. The scope and degree of this collusion are historically unprecedented and by admission of the perpetrators, unconventional in approach, and – depending on the speech – ineffective.

Central bank efforts to provide liquidity to the private banking system have been delivered amidst a plethora of grandiose phrases like “unlimited” and “by all means necessary.” Central bankers have played a game with no defined goalposts, no clock rundown, no max scores, and no true end in sight. Read More

08.29.17- Are Central Banks Nationalising the Economy?
Daniel Lacalle

The FT recently ran an article that states that “leading central banks now own a fifth of their governments’ total debt.”

The figures are staggering.

  • Without any recession or crisis, major central banks are purchasing more than $200 billion a month in government and private debt, led by the ECB and the Bank of Japan. Read More

08.28.17- Jackson Hole, and the Organized Crime of Central Banking
Raúl Ilargi Meijer

The Jackson Hole gathering of central bankers and other economics big shots is on again. They all still like themselves very much. Apart from a pesky inflation problem that none of them can get a grip on, they publicly maintain that they’re doing great, and they’re saving the planet (doing God’s work is already taken).

But the inflation problem lies in the fact that they don’t know what inflation is, and they’re just as knowledgeable when it comes to all other issues. They get sent tons of numbers and stats, and then compare these to their economic models. They don’t understand economics, and they’re not interested in trying to understand it. All they want is for the numbers to fit the models, and if they don’t, get different numbers. Read More

08.26.17- Fed Warning: Is This The Next Debt Bubble?
Birch Gold Group

Household debt is rising at an alarming rate, along with credit delinquency in several sectors, and the Fed just issued a sobering warning in response. When this debt bubble pops, it could shake markets and touch every American’s pocket book.

In the case of our last crisis, mortgage debt was the primary culprit. But with the debt bubble that’s growing today, credit cards, student debt, auto loans, and other forms of debt are all playing a part… and that could make the damage even worse. Read More

08.25.17- The Truth About the Fort Knox Gold
James Rickards

One of the little-known items on the Fed’s balance sheet is a vital asset it received from the U.S. Treasury a long time ago…

During the Great Depression, in 1933, President Roosevelt issued an executive order requiring anyone with gold to surrender it to a Federal Reserve bank or any member bank of the Federal Reserve system.

The Federal Reserve banks also required the commercial banks to hand over their gold to the Fed. Now, suddenly, the gold went out of the commercial banks into the Federal Reserve Bank. Read More

08.24.17- Bad Ideas About Money and Bitcoin
Keith Weiner

Most false or irrational ideas about money are not new. For example, take the idea that government can just fix the price of one monetary asset against another. Some people think that we can have a gold standard by such a decree today. This idea goes back at least as far as the Coinage Act of 1792, when the government fixed 371.25 grains of silver to the same value as 24.75 grains of gold, or a ratio of 15 to 1. This caused problems because the market valued silver a bit lower than that. Read More

08.23.17- Trader Warns Jackson Hole's "Hesitantly Optimistic" Chatter Will Be "Nothing But
Buying Time"

Tyler Durden

Hawkish, dovish, hawkish, dovish? As many market participants suspect, this week's Jackson Hole 'retreat' wil be a nothing-burger with perhaps a side-dish of temporary volatility as machines quibble over various words in headlines. Former fund manager Richard Breslow warns not to expect much...

At some level, I hope I’m wrong. This week would end up being far more interesting if we do indeed get some juicy policy announcement out of one, or, why not be greedy, two, of the big kahunas headlining Jackson Hole. But it’s unlikely and markets may well end up having to figure out what they want to do between now and autumn. Read More

08.22.17- This Upcoming Treasury
Borrowing Binge Could Hit Markets
Harder Than the 2008 Crisis

Lee Adler

The most important governmental advisory committee you’ve never heard of just issued a stunning forecast and warning that every investor needs to hear.

This warning was not reported in the mainstream media, even though it came from the most elite level of Wall Street.

Nor did this crowd release its forecast through its captive media, like CNBC or The Wall Street Journal.

I’ll tell you why in a minute, but people who do get this warning will have the chance to protect what’s theirs and make some money when this happens. Read More

08.21.17- 10 Reasons Why Central Banks Will Miss the Cryptocurrency Renaissance
Eugéne Etsebeth

It's a familiar trend, one that happened in communications (internet), and that is now playing out in energy (solar), manufacturing (3D printing) and finance (cryptocurrency) – power and control are moving into the hands of the individual and away from nation states.

This has huge implications for central banks, which today enable nation states to maintain their monopolies over the issuance of notes, coins and sovereign bonds. Read More

08.19.17- Fed Will Overshoot & Cause Massive Inflation
Gregory Mannarino

Gregory Mannarino joins Silver Doctors to discuss the latest market news as central banks around the world continue to destroy currencies and inflate their favorite asset bubbles…

Thursday was the second worst day on Wall Street this year. Despite the recent drop in the stock market, he sees the stock market will continue higher because of dovish language and the 180 degree turn by Fed Chair Janet Yellen.

The Fed minutes this week showed that Fed officials want inflation higher. Mannarino warns the Fed should be careful what they wish for. He believes the Fed will overshoot their target, and create massive inflation. Read More

08.18.17- Will the Fed turn the US into
a Mad Max world?

Sam Brown

Never in human history has the world been so much in debt. Never in human history has the world economy relied on such a high level of credit. Never in human history has the world been more globalised. What happens if the credit generating machine that powers our economy slows down in a meaningful way? I want to highlight the subject with some questions.

  1. Almost all business transactions in the US rely on credit. What happens if credit dries up almost entirely? Read More

08.17.17- Fed policymakers grow more worried about weak inflation
Lindsay Dunsmuir and Jason Lange

WASHINGTON (Reuters) - Federal Reserve policymakers appeared increasingly wary about recent weak inflation and some called for halting interest rate hikes until it was clear the trend was transitory, according to the minutes of the U.S. central bank's last policy meeting.

The readout of the July 25-26 meeting, released on Wednesday, also indicated the Fed was poised to begin reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities. Read More

08.16.17- Central banks: a sausage based conundrum
Mark GB

1. The conundrum:

“We cannot solve our problems with the same level of thinking that created them” – Albert Einstein.

Despite the Federal Reserve expanding their balance sheet from $800bn to $4.4tn; despite holding interest rates at zero for 8 years; despite all the new ‘jobs’ that have reduced unemployment to 4.4%: the Fed’s measure of inflation is 1.8% and falling, wages are going nowhere, and the Keynesian holy grail of surging ‘aggregate demand’ is as elusive as a glass of lemonade in a Dublin pub. Read More

08.15.17- The Return of Sound Money
George Smith

On Sunday evening, August 15, 1971, President Nixon told the American people the U.S. would “suspend temporarily the convertibility of the dollar into gold or other reserve assets” as a means of defending the dollar against “the speculators.”  This was one part of his New Economic Policy, a phrase borrowed from communist Vladimir Lenin, which included a 90-day freeze on prices and wages, and a 10 percent tax on imports.  Gary North points out that Barron’s editor Robert Bleiberg, in a 1974 speech at Hillsdale College, thought the price-wage freeze was perhaps a ploy to distract attention from the “unthinkable” act of severing the dollar’s last connection to gold. Read More

08.14.17- Is Inflation an issue
or did the Fed Mess Up?

Sol Palha

"Bankers know that history is inflationary and that money is the last thing a wise man will hoard."

-William J. Durant

The Fed has been trying to create the illusion that inflation is an issue. The guys from the hard money camp also maintain that inflation is an issue and to a point they are right. Their definition of inflation is an increase in the money supply.  The Fed, on the other hand, defines inflation as an increase in prices.  The real definition of inflation is an increase in the money supply; rising prices are just the symptom of the disease.  This article from mises.org summarises this concept quite succulently. Read More

08.12.17- Weekend Rant: Cliché Series # 3: Dissimulators Dispersing Disingenuous Dangers
Rory Hall

The 2016 Presidential Election was quite the spectacle. During the primaries we watched Donald Trump go politically-incorrect Rambo on sixteen milquetoast republicans whose names I can’t recall right now.  During the Democratic Primaries, Bernie “Santa Claus” Sanders kept winning state after state; yet the superdelegates all fell into Hillary’s column.  In fact, after Sanders won eight out of nine primary contests by double digits, Clinton received more superdelegates in an electioneering process that even the Democratic National Committee (DNC) chair, Debbie Wasserman Shultz, admitted was rigged for the politically elite against “grassroots” candidates.  What a con. Read More

08.11.17- Planning for an Uncertain Future
Jeff Nielson

Astute readers understand that we are living in a time of crisis. This is not a crisis about Terrorist Boogeymen, nor is it (primarily) even a crisis about the very real threat of global warming.

The crisis which faces us is a crisis of government: the corrupt, puppet regimes across the Western world, and the psychopathic Puppet Masters who pull their strings. These Puppet Masters are known to regular readers. They are the Western oligarchs who control the financial crime syndicate known as the One Bank. Read More

08.10.17- The War on Cash: Jeff Berwick Faces Off Against Statists on Al Jazeera
Jeff Berwick

Do we really need cash? That is the question that was presented to the panel I was included in on Al Jazeera.

Some of the people on the panel were quite strong proponents of living a cashless existence, but they did admit that fiat currency cannot be done away with as easily as some say.

I mentioned that I, of course, prefer my Wirex bitcoin card (get one here) and Goldmoney (get one here) and Perpetual Assets precious metals cards (get one here) over using terrorist financing Federal Reserve notes or digital fiat. Read More

08.09.17- By This Measure The Current Stock Market Bubble Is Far Bigger
Than The Dotcom Bubble

Jesse Felder

My friend, Dr. John Hussman, recently pointed out that stocks have now achieved a valuation altitude that is extremely rare. Only during the week of March 24, 2000, the very peak of the dotcom mania, were stocks ever more highly valued than they are today.

As another friend of mine, Eric Cinnamond, recently asked, “If valuations are similar or higher than past bubble peaks, how can today’s cycle not be considered a bubble?” Good question. Read More

08.08.17- Richard Sylla: This Is An Inherently Dangerous Moment In History
Adam Taggart

Low interest rates are causing distortions & mis-allocations

"The rates we’ve had in recent years, including right now, are the lowest in history. The book that I co-authored on the history of interest rates traces back to the code of Hammurabi, Babylonian civilization, Greek and Roman civilization, the Middle Ages, the Renaissance, and early modern history right up to the present. And I can assure our listeners that the rates that they’re experiencing right now are the lowest in human history." Read More

08.07.17- It’s Officially the Biggest Bubble in Stock Market History
Graham Summers

Based on the median Price to Sales for an S&P 500 company, the stock market is now officially the single biggest bubble in history.

A big hat tip to John Hussman for catching this.

Why does this matter?

Because, earnings, cash flow, book value, and other metrics can be easily massaged by corporates. As such, valuing a business based on its P/E, P/CF, or P/B multiples isn’t necessarily accurate. Read More

08.05.17- Debt + Fake Money = Final Collapse
Egon von Greyerz

Over the last 150 years, the West has gone from human slavery to debt slavery. Slavery was officially outlawed in most countries between the mid 1800s and early 1900s. In the British Empire, it was abolished in 1834 and in the US in 1865 with the 13th amendment.

But it didn’t take long for a different and much more subtle form of slavery to be introduced. It started officially in 1913 with the creation of the Federal Reserve Bank in New York. More than 100 years before that, the German banker Mayer Amschel Rotschild had stated: “Give me control of a nation’s money and I care not who makes its laws.” The bankers who gathered on Jekyll island in November 1910 were totally aware of the importance of controlling the country’s money and that was the objective of their infamous secret meeting which laid the foundations to the Fed. Read More

08.04.17- Western Central Bank Fear Of Gold Is In The Air
Dave Kranzler

Ballooning open interest, heavy fix selling, aggressive post-settlement selling, flash crashes – this all seems a lot of bother. Perhaps the Other Side is afraid of something. – John Brimelow from his Gold Jottings report

Wednesday  evening at 7:06 EST, at one of the least liquid trading periods of the 23 hour trading day for Comex paper gold, a “motivated” seller unloaded 10,777 August gold contracts into the CME’s Globex trading system, knocking the price of gold down $9 in 25 minutes.  There were no obvious news or events reported that would have triggered any investor to dump over 1 million ozs of gold with complete disregard to price execution. Read More

08.03.17- The Fed Gave Wall Street a Bomb, and the Taxpayers are Paying Ransom
Tho Bishop

When Janet Yellen testified before the House Financial Services Committee last month, she faced grilling on a topic that hasn’t received enough mainstream attention: the interest being paid on excess reserves at the Fed. While the topic has come up occasionally since the program began in 2008, it is worth noting that Yellen was pushed by both Jeb Hensarling, the committee chairman, and Andy Barr, the chairman of the Monetary Policy Subcommittee.

While ending this taxpayer subsidy to Wall Street is important, it’s also important to understand the dangers posed by allowing these excess reserves to be lent out of major financial institutions. Read More

08.02.17- The Fed’s Dilemma – Doing The Right Thing Won’t Help Janet Yellen Or Us
Kelsey Williams

The Federal Reserve doesn’t know what to do. That’s too bad. For all of us.

The bigger problem is that it probably doesn’t make much difference what they do – or don’t do.

The definition of dilemma is: “a situation in which a difficult choice has to be made between two or more alternatives, especially equally undesirable ones.”

We are hooked on low interest rates and the drug of cheap and easy credit. Read More

08.01.17- Should The Federal Reserve Register As A Foreign Agent?
Political Vel Craft

“It is sobering to reflect that one of the best ways to get yourself a reputation as a dangerous citizen these days is to go about repeating the very phrases which our founding fathers used in the struggle for independence.” – Charles A. Beard

In 1913 the Federal Reserve Bank was born, with Paul Warburg its first Governor. Four years later the US entered World War I, after a secret society known as the Black Hand assassinated Archduke Ferdinand and his Hapsburg wife. Read More

07.31.17- Bank Deregulation Back in Vogue: It’s time to dance the last fandango!
David Haggith

The Great Recession was so great for the only people who matter that it is time to do it all again. Time to shed those bulky new regulations that are like clod-hoppers on our heals and dance the light fantastic with your friendly bankster. Shed the encumbrances and get ready for the new roaring twenties that are just around the corner.

The banks need to be able to entice more people into debt because potential borrowers with good credit and easy access to financing are showing no interest in taking the banks’ current enticements toward greater debt. That could indicate the average person is smarter than the banks and apparently recognizes they are at their peak comfort levels with debt. The banks, on the other hand, want to reduce capital-reserve requirements in order to leverage up more. Read More

07.29.17- The Globalist One World Currency Will Look A Lot Like Bitcoin
Brandon Smith

This week the International Monetary Fund shocked some economic analysts with an announcement that America was "no longer first in the world" as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U.S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America's economy in my article 'The New World Order Will Begin With Germany And China'. Read More

07.28.17- Why the U.S. Dollar Has a Long and Rough Road Ahead
Birch Gold

Last week the dollar fell sharply against all major currencies. Both fundamental and technical indicators imply the trend could continue. When will the dollar find its bottom, and what should Americans do to protect the spending power of their savings?

Let’s examine a few possible scenarios, and investigate the best ways to preserve your wealth against a major dollar downturn…

The dollar is down 8% against its global counterparts this year, with the poorest performance of any G10 currency. And the US dollar index is now sitting at its lowest point in over a year. Read More

07.27.17- Central Banks ARE The Crisis
Raúl Ilargi Meijer

If there’s one myth -and there are many- that we should invalidate in the cross-over world of politics and economics, it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them.

It really should -but doesn’t- make us cringe uncontrollably to see Bank of England governor-for-hire Mark Carney announce -straightfaced- that:

“A decade after the start of the global financial crisis, G20 reforms are building a safer, simpler and fairer financial system. “We have fixed the issues that caused the last crisis. They were fundamental and deep-seated, which is why it was such a major job.” Read More

07.26.17- This Will Lead to a Panic Unlike Any We’ve Ever Seen
Porter Stansberry

If you haven't noticed, a historic mania has developed in the world's bond markets.

Central banks have pushed so much new money into bonds (in an effort to manipulate interest rates lower) that corporate bonds have begun trading with negative yields, meaning that corporations are now being paid to borrow.

This, as you might realize, makes absolutely no sense. Sooner or later, it's going to cause catastrophic problems with the world economy – perhaps even the collapse of the entire financial system Read More

07.25.17- Russia’s Real Endgame
James Rickards

[Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to get your own free copy – click HERE. This vital book transcends geopolitics and rhetoric from the Fed to prepare you for what you should be watching now.]

Russia’s Putin has never taken his eye off the ball. His ambition is not global hegemony or European conquest. Putin seeks what Russia has always sought: regional hegemony and a set of buffer states in eastern Europe and central Asia that can add to Russia’s strategic depth.Read More

07.24.17- Former 'Plunge Protection Team' Member Warns "Blockchain Is Freaking Governments Out"
Tyler Durden

Dr. Pippa Malmgren, a US policy analyst and former member of the Working Group on Financial Markets, a government entity better known by its nickname, the “Plunge Protection Team,” appeared on Erik Townsend’s MacroVoices podcast to discuss bitcoin and the European refugee crisis, while also offering some clues about how the PPT, famous for its secrecy, operates.

Townsend started the interview by asking Malmgren, who also served as a special assistant to the president during the Obama administration, her thoughts about the thousands of refugees who continue to pour into Europe. Surprisingly, despite her liberal views regarding the free movement of people, Malmgren said she’s “quite worried” about the crisis, and believes it will only worsen as governments in Northern Africa become increasingly unstable, potentially leading to a financial crisis in Europe. Read More

07.22.17- How Will the Federal Reserve Untie its Gordian Knot?
David Haggith

The Federal Reserve is telegraphing that it is going to begin its great unwind in September. It’s going to untie its own not untiable knot. In case you cannot untie what I just said, that’s a knot that cannot be untied. I’m writing the article to ask you to ponder this conundrum with me. Can the Fed undo its quantitative easing without undoing the vapid recovery it fashioned out of that quantitative easing?

I’m starting with the premise that the Fed is trying to talk up the reduction of its balance sheet, starting in September, because it actually wants to unwind and still hasn’t realized it cannot. That premise, of course, may be wrong. They could simply be lying, but strong historic precedence argues in favor of stupidity. Read More

07.21.17- The Fed Has Hit the ‘Pause’ Button
Michael Snyder

Last week the Fed raised the white flag on further rate hikes. There won’t be any for the foreseeable future.

No rate hikes are coming at the July, September or November Fed FOMC meetings. The earliest rate hike might be at the December 13, 2017 FOMC meeting, but even that has a less than 50% probability as of today. I’ll update those probabilities using my proprietary models in the weeks and months ahead.

The white flag of surrender came in two public comments by two of the only four FOMC members whose opinions really count. The four voting members of the FOMC worth listening to are Janet Yellen, Stan Fischer, Bill Dudley and Lael Brainard. Read More

07.21.17- The Fed Has Hit the ‘Pause’ Button
Michael Snyder

Last week the Fed raised the white flag on further rate hikes. There won’t be any for the foreseeable future.

No rate hikes are coming at the July, September or November Fed FOMC meetings. The earliest rate hike might be at the December 13, 2017 FOMC meeting, but even that has a less than 50% probability as of today. I’ll update those probabilities using my proprietary models in the weeks and months ahead.

The white flag of surrender came in two public comments by two of the only four FOMC members whose opinions really count. The four voting members of the FOMC worth listening to are Janet Yellen, Stan Fischer, Bill Dudley and Lael Brainard. Read More

07.20.17- Don't Be Fooled - The Federal Reserve Will Continue Rate Hikes Despite Crisis
Brandon Smith

Though stock markets in general are meaningless and indicate nothing in terms of the health of the economy they still function as a form of hypnosis, or a kind of Pavlovian mechanism; a tool that central bankers can use to keep a population servile and salivating at the ring of a bell. As I have mentioned in the past, the only two elements of the economy that the average person pays attention to in the slightest are the unemployment rate and the Dow. As long as the first is down and the second is up, they aren't going to take a second look at the health of our financial system. Read More

07.19.17- Dying petrodollar could spell disaster for the Fed as they try to dissolve their balance sheet
Kenneth Schortgen

When Janet Yellen spoke at the last FOMC meeting, she reiterated the central bank’s desire to begin drawing down their balance sheet after close to 8 years of stimulus and bond buying.  However, those who pay attention more to actions than from words understand that until the Fed actually begins to start selling their bond holdings, talk from the central bank is little more than the same rhetoric they used when promising a rate hike back in October of 2013, and then never instituting one until two years later.

Yet for just this instance let us take Yellen’s words as truth this time, and expect that the Fed will begin drawing down their balance sheet slowly sometime by the end of the year. Read More

07.18.17- Peak Bull: Fake Economy, and Fake News
David Stockman

[Urgent Note: David Stockman warns that the nation’s economy and a massive debt ceiling hangs in the balance as Wall Street’s peak bull stocks carry on. The economist is on a mission to send his new book TRUMPED! A Nation on the Brink of Ruin… and How to Bring It Back out to every American who responds, absolutely free. Click here for more details.]

The American economy has been mangled by decades of assault on capitalist prosperity.

Growth is now dying because the Federal Reserve’s hit on corporate America that has strip-mined its balance sheets to feed the halls of Wall Street. Trillions of dollars have been thrown into financial engineering (stock buybacks, M&A deals and leveraged recaps) while neglecting real investment and productivity in Flyover America. Read More

07.17.17- National Debt Too High…
Silver Price Too Low

GE Christenson

Silver currently sells around $16, which would be sensible if the US national debt was much less than its current $20 trillion.

Given the massive national debt and 100 years of experience, silver prices could easily be double or triple their current prices, and far higher in a panic.

WHY?

Examine over a century of official national debt data graphed on a log scale. Official debt in 1913 was $3 billion. Since then it has risen 8% to 9% every year to reach $20 trillion or $20,000 billion. Debt will continue rising as long as politicians spend and bankers lend. Read More

07.15.17- How Dumb Is the Fed?
Bill Bonner

[O]ur message to the folks in Jackson Hole this week [at the annual central banker meeting there] is that the end of the Fed’s reckless experiment in social engineering via QE and near-zero interest rates will end in tears.

“Momentum” stocks like Tesla, to paraphrase our friend Dani Hughes on CNBC last week, will adjust and the mother of all rotations into bonds and defensive stocks will ensue. We must wonder aloud if Chair Yellen and her colleagues on the FOMC fully understand what they have done to the US equity markets. […]

Once the hopeful souls who’ve driven bellwethers such as Tesla and Amazon into the stratosphere realize that the debt driven game of stock repurchases really is over, then we’ll see a panic rotation back into fixed income and defensive stocks.Read More

07.14.17- And Now, for Something Entirely Different: Why and How to Get a Second Passport
Joe Jarvis

If you don’t have options, you are helpless. If you had only McDonalds to provide you food, you would not be able to make the choice to be healthy. If Monsanto monopolized the agricultural industry (which they are arguably attempting) then you could not help but consume dangerous carcinogenic pesticides.

And if the U.S. government controls your ability to travel around the globe, you have no choice in mobility. If the government cancels your passport, then you are done. You have no options for traveling outside of the United States. But McDonald’s is not your only food choice, Monsanto thankfully does not control all agriculture, and the U.S. government is not the only choice for obtaining a passport. Sovereign Man has highlighted four options for obtaining a second passport. Read More

07.13.17- On Borrowed Time
Tim Price

There are a number of things you don’t want to hear a central banker say. One of those things just popped out of Janet Yellen’s mouth – “I don’t believe we will see another financial crisis in our lifetime.” That has to be up there with Irving Fisher’s deathless observation from 17 October 1929 that "Stock prices have reached what looks like a permanently high plateau" or John Maynard Keynes’ comparably adept forecast from 1927 that "We will not have any more crashes in our time."

So far, so anecdotal. How about some data to back up the thesis that, as Thorstein Polleit puts it, the super bubble is in trouble ? Read More

07.13.17- Yellen’s Shocking Announcement:
The $USD is Toast

Phoenix Capital Research

Fed Chair Janet Yellen just announced that the Fed will be kicking the $USD off a cliff.

She didn’t use those words, but the words she did use weren’t all that different.

But first a little context…

The fact is that the $USD has been falling steadily throughout 2017. At this time of this writing, it was down nearly 7% year to date. Read More

07.12.17- Janet Yellen’s complacency is criminal
Professor William Black

The perpetrators of the Global Financial Crisis have been allowed to keep their jobs and the proceeds of their crimes. Claims by Federal Reserve Chair Janet Yellen that no new crisis will grace the US within her lifetime reveal the stunning complacency that have allowed these complex frauds to continue. Economist William K Black  investigates.

Federal Reserve Chair Janet Yellen is brilliant, but last week she said something remarkably stupid that future authors will quote with scorn. She predicted that there would be no new financial crisis in the United States within her lifetime due to reforms after the Great Recession. Steve Keen wrote a devastating column in Forbes that took Yellen to task for her complacency. Read More

07.11.17- Warning Signs Abound for U.S. Economy
Harley Schlanger

In the build-up to the G20 summit in Hamburg, there was much happy talk coming from Trans-Atlantic government officials, Central bankers and the media about the arrival of the long-awaited “economic recovery.” From Brussels, European Central Bank (ECB) chairman Mario Draghi sounded cautiously optimistic, telling European Union leaders on June 23 that the EU is experiencing economic growth and an “improving business climate”, while ECB Executive Board member Peter Praet was much less constrained. In a meeting of bankers in Paris on July 6, he declared that the recovery “has gathered some further momentum recently,” and that there is a “solid upswing” becoming an “increasingly solid cyclical recovery.”

One might ask if the two of them consider the unresolved Greek debt crisis, and the bailouts of Spanish and Italian banks, in violation of new EU banking rules, evidence of a “solid upswing”! Read More

07.10.17- The Bankers’ Endgame And The Rise Of Gold And Silver Prices
Daryl Robert Schoon

In May 2007, in Subprime America Infects Asia and Europe I predicted a severe financial crisis was imminent: the risks that have lain dormant beneath globalization's foundation are about to erupt and a reordering of the world's financial geography is about to ensue. It's spring 2007 and the sun is shining in the US, backyard BBQs are being cleaned in anticipation of summer’s use. A severe financial crisis, however, is in the offing; a crisis as unexpected as the Golden State Warrior’s last minute steak to the NBA playoffs.

An unexpected financial crisis, however, will be much more consequential than Don Nelson’s magical resurrection of the Warrior’s NBA hopes. There, at least, the Warriors will have a chance. Read More

07.08.17- Tales from the FOMC Underground
MN Gordo

Many of today’s economic troubles are due to a fantastic guess.  That the wealth effect of inflated asset prices would stimulate demand in the economy.

The premise, as we understand it, was that as stock portfolios bubbled up investors would feel better about their lot in life.  Some of them would feel so doggone good they’d go out and buy 72-inch flat screen televisions and brand-new electric cars with computerized dashboards on credit. Read More

07.07.17- The Fed Just Admitted, On RECORD, Stocks Are In a Bubble
Graham Summers

Yesterday, the Fed made the single largest announcement of the last 10 years.

The media didn’t catch it. Nor did the markets.

The reason?

Everyone is so busy focusing on whether or not the Fed wants to hike rates, that they’re not looking for other items…

Other items…. such as the fact the Fed has decided it is going to pop the stock market bubble. Read More

07.06.17- Beware The Predictions Of "Experts"
Like Janet Yellen

Ryan McMaken

Speaking in London, Federal Reserve chair Janet Yellen Tuesday predicted that the “the system is much safer and much sounder” and explained that the Federal Reserve is prepared to deal with numerous enormous shocks to the economy.

In her conversation with Lord Nicholas Stern, Yellen also went on to list the reasons that, thanks to central bank intervention, there is unlikely to be another financial crisis “in our lifetimes.” Read More

07.05.17- And Now, for Something Entirely Different: Solving The Liquidity Problem
(Not What You Think!)

Chris MacIntosh

Earlier this week I discussed Zimbabwe – the country that took and continues to take ineptitude to a whole new level.

Specifically, we discussed how the liquidity of assets gets impacted when things go really pear shaped. I think it’s worth understanding this process. There are certain dynamics that are very pertinent to countries and economic systems which we’ve come to incorrectly associate with stability, safety, and people who, with their hand on the tiller, really should know better. But based on their actions they clearly don’t. Read More

07.04.17- Holiday Rant: What Pisses Me Off About
Independence Day | Fourth of July

Stefan Molyneux

View Video

07.03.17- Fed President Contradicts Yellen’s “No Crisis In Our Lifetime” Claims
Birch Gold Group

Earlier this week, Fed Chair Janet Yellen said another major crisis isn’t likely “in our lifetimes.” But recent comments from Minneapolis Fed President Neel Kashkari stand in stark contrast.

Yellen is the primary figurehead for U.S. central banking, and her statements are heavily publicized. But she isn’t the only voice of the Fed.

The Fed’s 12 district presidents speak to the public as well, just not as frequently and with less fanfare. Comparing their opinions against those of the Fed Chair is key to getting the clearest picture of the economic climate. Read More

07.01.17- Why Quantitative Tightening Will Fail
James Rickards

[Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to get your free copy – HERE. This vital book transcends rhetoric from the Federal Reserve’s quantitative tightening program to prepare you for what you should be watching now.]

After nine years of unconventional quantitative easing (QE) policy the Federal Reserve is now setting out on a new path for quantitative tightening (QT).

QE was a policy of money printing. The Fed did this by buying bonds from the big banks. The banks would then deliver bonds to the Fed, and the Fed would in turn pay them with money from thin air. QT takes a different approach. Read More

06.29.17- “Next Phase of Collapse Will Include the End of the Dollar as We Know It”
Brandon Smith

The Federal Reserve Is A Saboteur – And The “Experts” Are Oblivious

I have written on the subject of the Federal Reserve’s deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an “economic suicide bomber.” I still believe the label fits perfectly, and the Fed’s recent actions I think directly confirm my accusations.

Back in 2015, when I predicted that the central bankers would shift gears dramatically into a program of consistent interest rate hikes and that they would begin cutting off stimulus to the U.S. financial sector and more specifically stock markets, almost no one wanted to hear it. The crowd-think at that time was that the Fed would inevitably move to negative interest rates, and that raising rates was simply “impossible.” Read More

06.28.17- Central Banks Buying Stocks Have Rigged US Stock Market Beyond Recovery
David Haggith

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working because they have become the banks that are too big to fail. At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.

Brian Rich, writing for Forbes, describes the economic illusion created by central banks buying stocks during a time of presidential prosecution: Read More

06.27.17- The Fed Speaks Out of
Both Sides of Its Mouth

Dennis Slothower

A number of Federal Reserve policymakers were marched out this week to give opinions about monetary policies following the most recent action of the Fed.

New York Fed Chief William Dudley argued in a speech that he is worried that the jobless rate will fall too far, causing a tight labor market and forcing inflation higher. Dudley believes the Fed should continue to raise interest rates. His talk caused the U.S. dollar to rally, undercutting the oil market.

Chicago Fed president Charles Evans delivered a more dovish outlook, arguing the Fed should hold off further rate hikes until the end of the year. Read More

06.26.17- Central Banks...
Tiptoeing Toward the Exit

Pater Tenebrarum

Frisky Fed Hike-o-Matic

We haven’t commented on central bank policy for a while, mainly because it threatened to become repetitive; there just didn’t seem anything new to say. Things have recently changed a bit though. A little over a week ago we received an email from Brian Dowd of Focus Economics, who asked if we would care to comment on the efforts by the Fed and the ECB to exit unconventional monetary policy and whether they could do so without triggering upheaval in the markets and the economy**, so we are taking this opportunity to do just that. Read More

06.24.17- Four Reasons Central Banks are Wrong to Fight Deflation
Jörg Guido Hülsmann

The word “deflation” can be defined in various ways. According to the most widely accepted definition today, deflation is a sustained decrease of the price level. Older authors have often used the expression “deflation” to denote a decreasing money supply, and some contemporary authors use it to characterize a decrease of the inflation rate. All of these definitions are acceptable, depending on the purpose of the analysis. None of them, however, lends itself to justifying an artificial increase of the money supply.

The harmful character of deflation is today one of the sacred dogmas of monetary policy. The champions of the fight against deflation usually present six arguments to make their case. Read More

06.23.17- Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy
James Rickards

The Federal Reserve is now setting out on a new path for quantitative tightening (QT) after nine years of unconventional quantitative (QE) easing policy. It is the evil twin of QE which was used to ease monetary conditions when interest rates were already zero.

First, it is important to examine QE and QT in a broader context of the Fed’s overall policy toolkit. Understanding the many tools the Fed has, which of them they’re using and what the impacts are will allow you to distinguish between what the Fed thinks versus what actually happens.Read More

06.22.17- Albert Edwards: "Citizens Will Soon Turn Their Rage Towards Central Bankers"
Tyler Durden

During the populist revolt of 2016, which first led to the "shocking outcomes" of Brexit and then Trump, we cautioned that these phenomena were merely the "silent majority" of the developed world's middle class expressing their anger and frustration with a world that has left them - and their real disposable income - behind, while rewarding the Top 1% through policies that have led to a relentless and record ascent in global asset prices, largely the purview of the world's wealthiest. More recently, we also noted that it was only a matter of time before this latest "revolt" fizzled, as the realization that changing one politician with another would achieve nothing, and anger shifted to the real catalyst behind growing global inequality (and anger): central banks. Read More

06.21.17- The Fed Rate Hike and Gold – Precious Metals Supply and Demand
Keith Weiner

Shrinking the Balance Sheet?

The big news last week came from the Fed, which announced two things. One, it hiked the Fed Funds rate another 25 basis points. The target is now 1.00 to 1.25%, and there will be further increases this year. Two, the Fed plans to reduce its balance sheet, its portfolio of bonds.

Assets held by Federal Reserve banks and commercial bank reserves maintained with the Fed – note that while asset purchases and bank reserve creation are connected, the connection is loose (there are other factors influencing movements in reserves as well). [PT] – click to enlarge. Read More

06.20.17- Democracy Is A Front
For Central Bank Rule

Paul Craig Roberts

Several years ago when the Federal Reserve had its Fed funds rate at zero to 25 basis points (one-quarter of one percent—0.25%), there was a great deal of talk, somehow presented as urgent, whether the Federal Reserve would raise interest rates.

RT asked me if the Fed was going to raise interest rates. I answered that the purpose of low interest rates was to restore the solvency of the balance sheets of the “banks too big to fail” by raising debt prices. The lower the interest rate, the higher the prices of debt instruments. The Fed drives bond prices up by purchasing bonds, and the Fed raises interest rates by selling bonds, or by purchasing fewer of them than previously. Read More

06.19.17- Here Comes Quantitative Tightening
Peter Schiff

All of a sudden the Fed got a little tougher. Perhaps the success of the hit movie Wonder Woman has inspired Fed Chairwoman Janet Yellen to discard her prior timidity to show us how much monetary muscle she can flex when the time comes for action.

Although the Fed's decision this week to raise interest rates by 25 basis points was widely expected, the surprise came in how the medicine was administered. Most observers had expected a “dovish” hike in which a slight tightening would be accompanied by an abundance of caution, exhaustive analysis of downside risks, and assurances that the Fed would think twice before proceeding any farther. But that’s not what happened. Instead Yellen adopted what should be viewed as the most hawkish policy stance of her chairmanship.
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06.17.17- Central Banks Are Driving Many to Cryptocurrencies
Demelza Hays

Two years ago, Bitcoin was considered a fringe technology for libertarians and computer geeks. Now, Bitcoin and other cryptocurrencies, such as Ethereum, are gaining mainstream adoption. However, mainstream adoption has been propelled by financial speculation instead of by demand for a privately minted and deflationary medium of exchange. After the Fed’s rate hike this week, Bitcoin and alternative cryptocurrencies, such as Ethereum and Dash dropped in value instantly. Bitcoin, for example, dropped by approximately 16% in value while other coins dropped by approximately 25%. However, Bitcoin’s price recovered to the previous high within 18 hours. Read More

06.16.17- Good Question
James Quinn

It’s funny how facts are conveniently ignored by the mainstream media pundits, paid to mouth the narrative put forth by their corporate bosses. A critical thinking individual might look at the chart below and possibly question the validity of the economic growth mantra spewed by the politicians, central bankers and mass media. As anyone with two eyes can see, the central bankers of every developed country in the world have kept real short term interest rates negative for the last eight years and continue to do so.

The last time the U.S. Federal Funds rate was 1%, the 10 Year Treasury rate was 4%. In a normal free market system, real interest rates would be 2% to 3% above CPI. The fraud and dysfunction of the current global financial system is made unequivocally clear in the chart. Read More

06.15.17- Is the Central Bank’s Rigged Stock Market Ready to Crash on Schedule?
David Haggith

We just saw a major rift open in the US stock market that we haven’t seen since the dot-com bust in 1999. While the Dow rose by almost half a percent to a new all-time high, the NASDAQ, because it is heavier tech stocks, plunged almost 2%. Tech stocks nosedived while others rose to create new highs. Is this a one-off, or has a purge begun for the tech stocks that have driven the nation’s third-longest bull market?

Yesterday’s dramatic “rotational” divergence between tech stocks and the rest of the market, which as Sentiment Trader pointed out the only time in history when the Dow Jones closed at a new all time high while the Nasdaq dropped 2% was on April 14, 1999, stunned many and prompted Bloomberg to write that “a crack has finally formed in the foundation of the U.S. bull market. Now investors must decide if any structural damage has been done.” (Zero Hedge) Read More

06.14.17- Who Controls All of Our Money?
ColdFusion

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06.13.17- Massive Central Bank Asset Purchases: Last Ditch Effort To Save Economy & Cap Gold Price
Steve St Angelo

The Central banks bought a staggering $1.5 trillion in assets in the first five months of the year to keep the economy from imploding while at the same time, capping the gold price.  Yes, it’s true…. $300 billion a month of Central bank asset purchases pushes up STOCK, BOND and REAL ESTATE values while it depresses or caps the gold (or silver) price.

The amount of Central bank asset purchases are now reaching insane levels.  And they have to.  It is the same thing as being a drug addict.  Once, someone starts down the road of drug addiction, it takes more and more of the drug to reach the same effect.  Thus, when Central banks started purchasing assets to prop up the market, they have to continue, and they have to continue buying even more. Read More

06.12.17- The Fed Hasn’t Done This in 80 Years
Birch Gold Group

Next Wednesday, the Fed will likely press forward on its mission to raise rates and cut its balance sheet. But, assuming it makes this move (as widely expected), it will be the first time in 80 years it has pursued this kind of policy amidst such tumultuous economic conditions.

Let’s examine what makes the Fed’s current policy plan so historic, how it could impact markets in coming months, and what Americans can do in response…

The Fed’s Toolbox: QE vs. QT Read More

06.10.17- In Washington, Is the Glass(-Steagall) Half Empty or Half Full?
Nomi Prins

Donald, listen, whatever you’ve done so far, whatever you’ve messed up, there’s one thing you could do that would make up for a lot.  It would be huge!  Terrific!  It could change our world for the better in a big-league way!  It could save us all from economic disaster!  And it isn’t even hard to grasp or complicated to do.  It’s simple, in fact.  Reinstitute the Glass-Steagall Act. Let me explain.

In the world of romance, if you break up with someone, it’s pretty simple (emotional complications aside).  You’re just not together anymore. In the world of financial regulation, it used to be as simple as that, too. It was like installing a traffic light at a dangerous intersection to avoid deaths. In 1933, when the Glass-Steagall Act was passed, it helped break up the biggest banks of the day and for good reason: Read More

06.09.17- Curve Inversion and Chaos to Begin by December 2017
Michael Pento

The bounce in Treasury yields witnessed after the election of Donald Trump is now decaying in the D.C. swamp. If the Fed continues to ignore this slow growth and deflationary signal from the bond market and continues along its current rate hiking path, the yield curve will invert by the end of this year and an equity market plunge and a recession is sure to follow.

An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 1960's, occurs when short-term interest rates yield more than longer-term rates. Why is an inverted yield curve so crucial in determining the direction of markets and the economy? Read More

06.08.17- "Forget 'Super Thursday',
Today Is About Central Banks"

Bill Blain

“Since 2007, 68% of stock market returns are tied to political events…”

Today is not about UK elections. It’s too late to do or say anything except anticipate and hedge the result – if you care to do so. Personally, I reckon a blowout Tory victory might not be the panacea for sterling many expect. It will simply confirm Hard Tough Fraxious In-Yer Face Brexit – and may well prove a sell-the-fact moment for the Pound.

Today is sort of about Central Banks. Read More

06.07.17- Less Than Zero:
How The Fed Killed Saving

Adam Taggart

It destroyed the incentive to do it

The other day I was in my local branch of a Too Big To Fail bank where I have a few accounts. One of them is a savings account in which I keep some of my "dry powder" cash stored.

It had been a while since I had checked what kind of return the savings account offered. I knew it was pretty low, but there have been a few Fed rate hikes since the last time I had checked. So I asked the teller to look up the current rate the account was yielding.

Any guesses? Read More

06.06.17- "This Only Ends When
The Bond Market Pukes"

Kevin Muir

We all get it wrong, including Bass, Yusko, Icahn, Dalio, and [insert whatever guru you want in here]. So when you take solace in the fact the stock market is running higher without you, I would be weary of consoling yourself that you are in smart company.

Now please don’t mistake my unwillingness to join the chorus of those warning about the dangers ahead as my belief that everything is rosy. I understand the arguments about the huge imbalances in the financial system. I don’t need a lecture about the unsustainability of the current environment. I get it, we are screwed. We have made too many promises, have not saved enough and have created a can’t win financial situation. Read More

06.05.17- The Next Thing to Upend Everything
Dawn Luger

When it comes to blockchain technology, the core technology underpinning bitcoin, the digital currency that operates on a decentralized swarm of computers, there are many other applications as well. A real revolution may be unfolding all thanks to the technology which underpins bitcoin.

Blockchain technology emerged with the advent of Bitcoin in 2009. It was created when a programmer, using the pseudonym Satoshi Nakamoto, came up with a novel solution using a network of computers to track transactions in a way that is secure, trustworthy, fast, and transparent. The technology is used in either public networks, open to the world or private ones that could connect any type of groups. But it may also be the catalyst of a peaceful revolution which will upend society’s most sacred institutions – including government. Read More

06.03.17- Another Weekend Rant:
Pigs at the Trough

Bionic Mosquito

I was thinking about writing a post containing the list of CEOs of major US corporations who have come out against Trump’s decision regarding the Paris Climate Accord.  I am overwhelmed.  I would make my life easier by writing a list of those who haven’t.

I cannot let it go unsaid regarding one of these: Elon Musk.  It is really hilarious to consider that he has no company without the government’s involvement in the climate. None of these CEOs is a climate expert; all of them publicly complain about regulation.  You would think that this combination of characteristics would lead to either at best cheering the elimination of the horrendous regulatory burdens imposed by yet another scheme or at worst shutting up on a topic that they really don’t know much about. Read More

06.02.17- Dear Fed, It’s Not
“Really Hard to Spot Bubbles”

Wolf Richter

Minneapolis Fed President Neel Kashkari was the latest Fed official to claim in an essay – thus following in the time-honored footsteps of former Fed Chair Ben Bernanke – that “spotting bubbles is hard,” that the Fed cannot see them, and that if it could see them, it shouldn’t do anything to stop them because it had only “limited policy tools,” and because “the costs of making policy mistakes can be very high.”

But it’s OK to use these “limited policy tools” to inflate the greatest bubbles the world has ever seen and then preside over the damage they cause to the real economy before they even implode. Read More

06.01.17- Forget about Fake News...
Let’s Talk about Fake Markets

Clint Siegner

The U.S. and other nations with “free market” economies got credit for defeating the communists in Russia. That is ironic, because it is now more clear than ever that western leadership actually shares the Soviet inclination for central planning, and they have been increasingly intervening in our markets since the collapse of the USSR.

Our officials make economic policy as if healthy markets must be planned and coerced, much like the politburo. Some of this policy is created and run in the open; the government bailouts, Quantitative Easing, and zero interest rate policy, for example. Read More

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