Former White House Official Warns Nuclear Threat To The World Has Returned

http://kingworldnews.com/former-white-house-official-warns-nuclear-threat-to-the-world-has-returned/

So these things (geopolitical dangers) are real but there’s a much bigger issue at stake and that is this whole post-war international economic order having been based on the U.S. dollar and U.S. policies that were predicated on the assumption that they served everybody's interests.  What China and Russia are now saying is, 'They don’t serve our interests anymore.'

It’s really apt that the British decided to join the new emerging market BRIC Bank — the new institution that China and Russia are creating to act as a substitute or a new version of a combined World Bank/IMF structure.  It’s the infrastructure bank for emerging markets.  This is another way that they (Russia and China) challenge the supremacy of the United States.

And it was fascinating to see the White House slap-down the British quite forcefully — their closest ally — and say, ‘You shouldn’t have done that.’  This has raised all kinds of questions because the British view is:  'If this institution is going to be funneling big amounts of money into emerging market infrastructure, which clearly needs to be built, then are we smarter to be on the inside where we can keep an eye on what’s going on, or on the outside where we don’t know?'

The American view is, ‘We don’t condone any participation.’  And I think the rest of the world, including America’s allies, are going to say, ‘Well, actually this is better than war, right?  It’s better to work with them in the context of building the world economy, than to stay out of that dialogue and instead intensify the business of sending troops to borders.'

This is the situation that markets need to get a grip on and I think that leads to all kinds of questions about things that matter to the listeners of your broadcast and that is markets like gold.  For instance, China and Russia have been big accumulators of gold in anticipation of a day when they step forward and say, ‘Our currency is more backed by real gold than the American dollar,’ which is another piece of the same puzzle.  So I think that’ the big picture here.” 

Former White House Official Warns Of Terrifying Cyprus-Style Global Endgame

The conflict over equities vs. fixed-income is becoming increasingly precarious.  Stocks offer a decent hedge against currency debasement (there are several bullish factors already mentioned ad nauseum in previous blog entries).  For instance, in the case of extreme hyperinflation, the dollar may collapse in value, even if equities soar nominally (but perversely decline in inflation-adjusted terms).  Traditionally, equities also offer higher returns, even if they come with higher risk than bonds.  So the financial authorities are encouraging investors to chase higher returns by taking on more risk, which is so wrong on many layers it's too daunting to even categorize here.

Stock indices continually reach all-time highs, even if underlying economies are either collapsing or fail to reach escape velocity.  Marketing capitalization has decoupled from economic fundamentals, and surely that gap will close.

On the other hand, bonds offer little upside as zero-interest-rate policies remain firmly in place.  ZIRP is necessary, if destructive longer-term.  They are necessary to keep the over-indebted western economies from imploding, but destructive because they deepen the debt burdens with more debt.  Upon further examination, the risk/return profile of sovereign bonds becomes even more pernicious.  Real (inflation-adjusted) returns on bonds are even less attractive in the context of insolvent governments borrowing funds from investors and offering negative yields.  In other words, investors are risking their funds and being punished with negative yields by taking on that risk.  The numerous bond risks (e.g. inflation, currency, higher interest rates, default, liquidity, etc.) loom ever larger with more money printing.  Yes, QE has ended, but the printing press continues unabated with foreign currency swaps, and ever-expanding US Treasury borrowing.  And should borrowing needs surge, QE will resume.

Lunacy has swept across capital markets, specifically fixed-income.  The Japanese government bond market is a train wreck waiting to happen.  But what are the alternatives, especially with bail-in measures put in place, increasing the likelihood of mandated confiscation of savings accounts--both bank deposits and investment money market funds?

http://kingworldnews.com/former-white-house-official-warns-terrifying-cyprus-style-global-endgame/

Former White House Official Warns The World Is Dangerously Close To Collapse

http://kingworldnews.com/former-white-house-official-warns-world-dangerously-close-collapse/

Former White House Official Says U.S. Already At War With Russia & China

http://kingworldnews.com/former-white-house-official-says-u-s-already-war-russia-china/

Ex-White House Official - Gold, Capital Controls & Inflation

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/22_Ex-White_House_Official_-_Gold,_Capital_Controls_%26_Inflation.html

Former White House Official Discusses Gold Manipulation

This is absolutely nuts.  A former White House official and former member of the U.S. President’s Working Group on Financial Markets (aka "Plunge Protection Team") <click here> exposes the government and Fed manipulation in financial markets, specifically gold.

Of course, the average person won't understand this--or even worse--understands it, but won't care or won't take action.  I do--and so should you.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/7_Former_White_House_Official_Discusses_Gold_Manipulation.html