Thursday, June 26, 2014

The Shocking Secret The U.S. Fed Is Hiding From The World

Gold’s Flow East Seen for 20 Years as Incomes Increase Demand

China Finds $15 Billion of Loans Backed by Fake Gold Trades

This news alone should drive gold prices higher, as gold that is allegedly in vaults, does not exist.  However, given previous history of price suppression, it would not surprise me to see gold prices drop--at least temporarily.   The price manipulation is becoming blatant.

Abe's Worst Nightmare: Household Spending Collapses As Inflation Spikes

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Stone Cold Proof That Government Economic Numbers Are Being Highly Manipulated

Sunday, June 22, 2014

"End The Fed" Rallies Are Exploding Throughout Germany

Despite "Giving Americans A Blow Job", Polish Foreign Minster Says "US Alliance Is Worthless"

An example of American exceptionalism.

How A Country Dies

What The $1+ Trillion Student Debt Bubble Is Being Spent On

Light is the best disinfectant of darkness.

Bank Depositors Please Read This
JPMorgan Chase – zombie bank
Total Assets: $1,947,794,000,000 (nearly 1.95 trillion dollars)
Total Exposure To Derivatives: $71,289,673,000,000 (more than 71 trillion dollars)
Citibank - zombie bank
Total Assets: $1,319,359,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $60,398,289,000,000 (more than 60 trillion dollars)
Bank Of America - zombie bank
Total Assets: $1,429,737,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $42,670,269,000,000 (more than 42 trillion dollars)
Goldman Sachs - zombie bank
Total Assets: $113,064,000,000 (just a shade over 113 billion dollars – yes, you read that correctly)
Total Exposure To Derivatives: $43,135,021,000,000 (more than 43 trillion dollars)

Thursday, June 19, 2014

Marc Faber On Gold 'Bugs' And Equity 'Cockroaches'
...the monetary policies of central banks will lead to a further loss of purchasing power in the value of paper money. The CNBC anchor is perturbed as the market is selling gold and buying stocks; to which Faber rebuffs; investors are shunning gold "because the media doesn't like gold, nobody at CNBC owns gold. Nobody at Bloomberg owns gold. Gold is being constantly talked down by the media, and Fed officials, and economists, who also don't own any gold. They're all stocked up in equities." "When people talk about people who are optimistic about gold, they call them 'gold bugs.' A bug is an insect. I don't call equity bulls 'cockroaches.' Do you understand? There is already a negative connotation with the expression of 'gold bug.'"

Wednesday, June 18, 2014

The Fed's Laughable 2014 GDP Forecast Over Time

So, every month the Fed overstates GDP forecasts, and then revises them downward later after the fact.  Got it.  #clownsatthefed

Those Soaring Food And Gas Prices? The Fed Has A Name For Them: "Noise"

Hillary Clinton notes distance from Obama on Syria rebels

Hillary Clinton is throwing Obama under the bus in her run for 2016.

Putin Advisor Proposes "Anti-Dollar Alliance" To Halt US Aggression Abroad

Sergey Glazyev tells it like it is.  Putin has been backed into a corner by the US and NATO, so he, along with the help of China and other emerging economies, will accelerate the anti-USDollar campaign, in an attempt to expose the debasement of the numeraire by the Fed.

Egregious as it may sound, central banks with the printing press cause wars.  Russian leaders know this.  So do their western counterparts.  The masses do not.

Tuesday, June 17, 2014

The Most Destructive Presidencies in U.S. History: George W. Bush and Barack H. Obama

Wealthy Clintons Use Trusts to Limit Estate Tax They Back

Hypocrisy knows no bounds.

Tweet from Bank of England on Gold Bars

Answer:  Unencumbered?  Zero.

SP 500 Index vs. Food Stamps

Click on Image to Enlarge

Letter About the Fed, Propped Up Equities, and Suppressed Gold

Extrapolating to its end, a case could be made for $136,000/oz. gold.  No, I am not kidding.  It's becoming well known that for every ounce of physical gold that exists, 100 oz. of paper gold is traded.  Hypothetically, if all 100 owners of paper claims wanted settlement in physical delivery, the price of said physical gold would soar 100 times in price.

Likewise, if central banks have goosed equities markets by injecting $29 trillion, the true value of stocks is about half of current levels (without artificial purchasing)

Dear CIGAs, 

The Financial Times did a story over the weekend entitled "Central banks shift into equities". Zero Hedge put this up Monday morning in response. The Official Monetary and Institutional Forum now says that central banks have invested $29.1 trillion into the global equity markets. Before going in to this, now we have a better understanding of how or "why" stock markets are "up". We wondered how the markets were going up because everyone, EVERYONE so far this year has been reported to be a seller.  We wondered where the money was coming from to propel prices higher is everyone was selling, now we know.

I will give you a little perspective on this $29 trillion dollar figure because big numbers are thrown around like penny candy these days and we have become numbed (dumbed) down by such huge numbers. My point is this, there is no longer any shock value to any number no matter how large it is. 

OK, in perspective, the value of all stock markets on the planet added together are about $62 trillion, now it is revealed that $29 trillion or so has come from the world’s central banks. How did this happen? Do central banks have an extra $29 trillion to throw around? The answer of course is no they do not… unless they just print it up and presto, there it is ready and able for whatever folly they choose.  For a little more perspective, the Federal Reserve supposedly has a total balance sheet of some $4.5 trillion or about 15% of this $29 trillion (I dropped the ".1" because it’s only $100 billion). But, this $4.5 trillion is all accounted for as being invested in Treasuries, agencies and some "junkier stuff." Please don’t tell me that the world’s central banks are doing something that the Fed is not… or worse, the Fed is doing something that they are not admitting or accounting for!

Do you understand what this really means? The Fed (central banks) own nearly 50% of all stocks. This means that yes, stocks are REALLY manipulated and the tin foil hat crew was right again. It means that central banks can keep on creating fake money and putting that money into stocks to create fake(r) values… or …they can tank all of the stock markets worldwide at will with the press of a single button that has the word "sell" on it.

Going even further down the rabbit hole, this means that central banks own nearly half of the equity in all publicly held businesses. It means that by simply printing money, they have "privatized" the world! Of course, there is no telling as to when exactly this scheme started but let’s assume that sometime late in 2008 or early ’09 would be a good guess. The markets needed support AND it was a good entry level. Maybe this was something that "just happened" and then morphed into its current size? Maybe it wasn’t on purpose? I doubt this is the case as everything is orchestrated today, as the CIA is well known for saying, "there are no coincidences." Who will the central banks sell to if the want out? Ahh, but why would they want out when they hold almost a majority position of the entire world.

So, we have wondered how the stock markets have done what they have done and we wondered how in the U.S. the markets have done well while the Fed has tapered their QE by $1/2 trillion annualized. Now we know, $500 billion is a puissant number that has been camouflaged by other, massive buying. Gold investors have also "wondered" how gold could go down in price while physical demand has far outstripped the actual supply.  "We" have told you how for a long time now, all the while being called tin foil hat wearing conspiracy freaks. We told you that at least 100 ounces of paper gold were being created to divert capital away from the real thing. We told you that these paper ounces were being used to dilute the real thing and hide what was actually happening. Do you believe us now?

Now that it turns out that an extra $29 trillion has been printed and put to work you must ask yourself several questions. First, if it was so easy to create all of this money (in the dark) and it is so plentiful, what is the money itself worth? What is it REALLY worth? Also, if the markets are where they are because of unnatural buying, where would they be trading on their own? How much lower? If gold is priced where it is today because there are 99 fakes out there for every real ounce then what is a real ounce worth if it is actually 99 times more rare? An even better question is this, if central banks were the sellers of real tangible gold for so many years and the conspiracy nuts are correct (as usual it seems lately) and the coffers are low, THEN what is an ounce worth?

Let me ask this question in a slightly different manner. If the West’s central banks have very little gold yet retain the ability to print money and suddenly decide that they would like to stack some of the "lost" gold, what would that do to the price? Or even differently, if money supply approaches infinity and gold reserves approach zero… then what price? Is the answer not infinity?
I hope that this revelation sinks in mentally for you. If not, please reread this because this is what it’s all about. You have been beaten over the head for at least 2 years to either sell your gold (and silver) or at least don’t buy it. It has been a psychological operation aimed directly at your finances through your emotions. Hopefully it hasn’t worked. If it has worked, then it is your job to un-work it. Stand strong, buy more or buy for the first time. We now know that we are (and were) 100% correct, nothing should get between you and your insurance policy!

Bill Holter for Miles Franklyn

Fed Looks at Exit Fees on Bond Funds

This is how dumb the Fed is--er, not so smart, I meant.

Federal Reserve officials have discussed imposing exit fees on bond funds to avert a potential run by investors, underlining regulators’ concern about the vulnerability of the $10tn corporate bond market.

Officials are concerned that bond-fund investors, as with bank depositors, can withdraw their money on demand even though the assets held by their funds are long-term debt and can be hard to sell in a crisis. The Fed discussions have taken place at a senior level but have not yet developed into formal policy, according to people familiar with the matter.
Let's distill what the Fed (the smartest guys in the room) are contemplating.  They want to impose exit fees to preempt a run on bonds--a selling panic from bond investors.  Have they even considered that contemplation of said exit fee will CATALYZE bond investors to dump bonds before the fee takes effect?

As smart as the Fed officials are deified to be, they sure are lousy poker players.

US and Iran hold talks over Iraq crisis but rule out military alliance

I'm not suggesting this is a bad development, but one gets the feeling the US is "tapping out" to Iran.  If you can't beat them, you might as well join them.

Gas transit pipeline explodes in Ukraine

It's going to cost twice as much to heat European homes this winter--not due solely to this event.  But the wedge between Ukraine and Russia will widen.

Central banks and public sector funds in diversification drive

This is tragically humorous on several levels, but the most egregious pronouncement is central banks, the bastion of conservative practices, have practically admitted they have goosed stock markets by buying up $29 trillion in assets, including equities.  They then, benignly paint these hedge fund-like risks as "diversification."  In reality, they are taking on humongous market risks.  I have posted many times that the Fed is the biggest hedge fund in the world, with perhaps the most over-leveraged balance sheet.

The public and Wall Street bankers can blame each other for manipulating markets, but at the end of the day, they are all merely agents of the ultimate manipulators--the central banks themselves.

You don't need a PhD in Economics from Princeton to know this will end badly.

This Will Completely Collapse The World Financial System

Embry's predictions are rather dire, but it's hard to argue against his points.

The Amazingly Accurate Predictions of Ron Paul

The Real, Forgotten Meaning Behind the Wizard of Oz

This is an interesting take on the feature film The Wizard of Oz.

Monday, June 16, 2014

Russia's Gazprom reduces gas to Ukraine after deadline passes

Natural gas prices in Europe are spiking specifically, while energy prices will rise globally.

Moody’s cuts outlook for Canadian bank debt to negative over ‘bail-in’ regime

What bankers and regulators don't tell you with bail-ins is that while taxpayers won't foot the bill for the next banking crisis, depositors will be on the hook.  In other words, depositors will be converted to credit holders and unsecured depositors, and will thus take a haircut in the next bail-out of banks.

Saturday, June 14, 2014

Meet The "Minerva Research Initiative" - The Pentagon's Preparation For "Mass Civil Breakdown"

New York Times Says "Lack Of Major Wars May Be Hurting Economic Growth"

A Talk by G. Edward Griffin, Author of The Creature from Jekyll Island

Congressman Asks NSA To Restore Two Years Of "Lost" Lois Lerner IRS Emails

The theater of the absurd has reached a new tragic low, involving two of the most hated and apparently corrupt government agencies.

SGE Chairman: China Should Become First Class International Gold Market

Iraq crisis may escalate into 'regional war': Jim Rickards

Washington’s Iron Curtain in Ukraine

The author's take is provocative and undoubtedly controversial, but I'm afraid there is more truth than not.

No more gas talks planned, Russia says

If Russia and Ukraine don't reconcile Ukraine's gas bill, expect prices to soar in Europe (which means energy prices will rise globally).

Economies will stumble further, and central banks will turn on the printing presses again.  Wash, rinse, repeat.

Sound or Unsound?

In 33 U.S. Cities, It’s Illegal to Do the One Thing That Helps the Homeless Most
According to the NCH, one survey of homelessness found 62,619 veterans were homeless in January 2012.
So, we send troops out to fight sometimes pointless wars, and when they come back homeless and unfed, not only does our government not feed them, they won't allow others to help feed the homeless.

Rosa Brooks Tweet on US Foreign Policy

Wait a minute:  I thought Rosa Brooks was Counselor to the Department of Defense under Obama's administration?  Yet, she's bashing the State Department's foreign policies.

Thursday, June 12, 2014

12 Numbers About The Global Financial Ponzi Scheme That Should Be Burned Into Your Brain

Norad Admits F-22 Fighter Jets Intercepted 4 Russian Bombers 50 Miles Off California Coast

The Secret Reason Why The Chinese Are Buying So Much Gold

Paul Volcker Slams The Fed: "The Kind Of Stuff That You’re Being Taught At Princeton Disturbs Me"

I've always admired Paul Volcker for his candidness--even when he was Fed Chairman.  Because his predecessors and successors are paid puppet liars.
The responsibility of any central bank is price stability. I was at the helm at that time. Price stability is two percent inflation, which we can’t closely control anyway. They ought to make sure that they are making policies that are convincing to the public and to the markets that they’re not going to tolerate inflation.

The responsibility of the government is to have a stable currency. This kind of stuff that you’re being taught at Princeton disturbs me. Your teachers must be telling you that if you’ve got expected inflation, then everybody adjusts and then it’s OK. Is that what they’re telling you?

How The US Is Arming Both Sides Of The Iraqi Conflict
...the US was arming and training the same Al Qaeda/ISIS groups of Jihadists, that it concurrently gave Iraq weapons to fight. And since the Iraq army has so far proven utterly incapable of any resistance, it is now up to US drones to "fight" the same "rebels" that the US itself was collaborating with until a month or so ago.
The clear winner here? The US military-industrial complex, of course, as well as the banks who lend money to the governments to fight wars provoked by various "developed nation" spy agencies.

No Death, No Taxes

Thiel Foundation To New Crop Of College-Bound Grads: Don't Go

Wednesday, June 11, 2014

Introducing the newest tactic for governments to raise cash
And over the last few years, one of the most creative ways that bankrupt governments have come up with is to confiscate what they consider “dormant” bank accounts—this would be an account without any transactions over a specified period of time.

Georgia’s Disposition of Unclaimed Properties Act sets the threshold as low as one year.

In other words, if you have a checking account in Georgia that you haven’t touched in twelve months, the state government is going to grab it.

So much for setting aside money for a rainy day and having the discipline to never touch it.

If you’ve locked away money for your children’s savings or unforeseen emergencies, your government might be sharpening its knives ready to dig in.

And just like central bank policies punish savers with interest rates that don’t come close to keeping up with inflation, these policies provide disincentives for people to be responsible and save money.

It’s just another example of how the entire system is rigged against the individual… and all the more reason to divorce oneself from it. Physical gold, anyone?

Death of the Dollar

World War II: The Unknown War — Paul Craig Roberts

The author of this article sounds like he writes sensationalistic Tom Clancy-like war novels.  Instead, he's a former Assistant Secretary of the US Treasury.

Indian, Chinese Central Banks on track to absorb 90% of Gold mine output

Federal Agencies with Guns: Weather Service, Social Security, Railroad Retirement Board

Paul Craig Roberts - China Threatens To Wipe Out The U.S.

Former Soros Associate Warns, “How Would They Stop Putin?”

Monday, June 9, 2014

Little by little, we went insane

Massive Financial Earthquake & Destruction Of The U.S. Dollar

This Will Bring The Entire Global Ponzi Scheme To Its Knees

The IMF Gets It Wrong (Again)

Venezuela Hookers Now Make More As FX Traders

One of the major themes of these blogs is the debasement of USDollars.  The overarching meme is ALL fiat currencies are being debased relative to tangible assets, including precious metals, on a long-term basis.  And they are being debauched on a relative basis to each other.  So occasionally, the dollar does maintain its strength relative to other (socialist, i.e. poor) countries.  See Venezuela and Cuba.

Gazprom signs agreements to switch from dollars to euros

The Lies Grow More Audacious — Paul Craig Roberts

Sunday, June 8, 2014

Clothing Naked Experts

Western Banks Scramble As China's "Rehypothecation Evaporation" Goes Global

My take:  rehypothecation means physical inventory has been grossly overstated that will be ultimately bullish long-term, but may be bearish short-term as market participants question the credibility of said inventory levels.

It also aligns perfectly with a global push to suppress prices of tangible assets in order to obfuscate currency debasement of all fiat sovereign currencies.

The Madness of Crowds

Everything Popular Is Wrong: Malinvestment and Consumers

The Clinton Surplus Myth

Skyrocketing Chinese Late Payments & A Global Meltdown

I agree with Pento's logic on sovereign bond yields at or near record lows due to the bond markets forecasting anemic economic growth.  But I disagree with his mainstream idea that the later stages of Clinton's presidency yielding budget surpluses.  Yes, the economy was growing, but the US government still ran deficits--and surpluses were only possible due to accounting and the pilfering of social security.  In other words, if the US were truly running surpluses during the 1998-2001 years, the national debt would not have increased during those years.  Yet, it did.

I will provide details on Clinton's alleged budget surpluses in the next blog.

Rome, The United States & The Path To Destruction,_The_United_States_%26_The_Path_To_Destruction.html

Saturday, June 7, 2014

There is No Tradeoff Between Inflation and Unemployment

90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi

The US is tightening the noose on its own neck with every economic sanction against Russia, because it is accelerating the decline of the USDollar as the global reserve currency.  Obama and Congress don't understand the boomerang effects of a globally-linked financial and trade system.  But then again, neither do our top economists and bankers.

Friday, June 6, 2014

The World Is Headed For A Massive & Terrifying Collapse

One Ton Gold Shipment Into Hong Kong Revealed To Contain Just Worthless Metal

Former Greek PM Admits To Talks On New Reserve Currency

Jim Rickards has been right all along about the IMF Special Drawing Rights.  That's also why I've been following him for years.

Gold Market is not “Fixed”, it’s Rigged

This Will End In Disaster - It’s Just A Matter Of Time

Asian gold strategy clarifying

Ecuador to Goldman Sachs: We win, you lose

The title of this article is misleading.  I disagree with Ecuador on their gold swap with Goldman Sachs.  Ecuador is betting that gold prices will decline by 2017.  They will lose big because gold prices will have soared by then, in my opinion.

Besides, plenty of clients have lost big when swapping assets with Goldman Sachs.  This deal will be no different.

Detroit Cuts Off Water To Thousands Unable To Pay Their Bills

Thursday, June 5, 2014

Wednesday, June 4, 2014

The New World Order And The Rise Of The East

Do You Have A Plan B? "This Is Not A Consequence-Free Environment"

Steve Liesman: "Debt Is The Bridge From Working Hard To Playing Hard In America"

Steve Liesman is CNBC's banking cartel shill of the lowest order.

Barclays Manipulated Gold as Soon as It Stopped Manipulating Libor

Readers should be aware of a few subtexts here.  Yes, the manipulation of gold prices is now out in the open (and no, gold bugs are not conspiracy theorists), as is the manipulation of LIBOR (and all markets, including the US Treasury bond market in the form of overt QE).  Us skeptics were right all along.

The more nuanced take-away message of Barclays manipulating gold and interest-rate markets is that they are not the only bank manipulating markets.  Not even close.  In fact, they may be one of the smaller players.

BNP Paribas is certainly not the only bank dealing with terrorist organizations or money launderers.  Not even close.  HSBC was notably fined for laundering money for organized crime and drug cartels.

What is the common thread amongst these banks exposed in criminal activities?  They are all non-US banks.  What are the chances of 100% compliance from every US bank regarding market manipulations?  Zero.  In other words, these foreign crooked bankers keep company with US banks.  The global financial system--is global in nature, after all.

This is nothing more than scapegoating of foreign banks, while protecting domestic banks in their financial crimes-in-progress.  It is a nuanced form of trade and currency wars all wrapped up in fines paid from the perps to the regulators in order to maintain a seat in the arena of financial boondoggles.

The banks (and bullion banks) act as proxies for sovereign governments in any case, so it's not in the governments' best interests to have these banks fail.  Governments need to manipulate markets in order to mask the structural problems in our global financial system.  So while they will scapegoat a few banks to maintain a semblance of enforcement, they need to take care of their complicit bankers.

Regulators aren't shaking down banks--they are partners in crime.  What money authorities are doing is stealing from the masses by diluting fiat currencies and masking the debasement with market interventions.

The Farce Continues: ISM Still Has No Idea Why Its Computers Malfunctioned, And Much More...

Eric Holder Announces Task Force to Focus on “Domestic Terrorists”

The Stunning Truth About The FCA Gold Market Investigation

Key Metric Hits Same Level As Prior To The Great Depression