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.
Read More

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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