Saturday, November 30, 2013
Weekend Chillout - An Eye on Gold
This week seems many had an eye on gold. To start the week the US eased sanctions on Iran, but only if they promised not to sell oil for gold, obviously because gold has no value. Then ending the week bitcoin launched an assault on the gold price, briefly exceeding it, before retreating.
Friday, November 29, 2013
Keiser Report: Elite Overdose
From RT
Published on Nov 28, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss elite overproduction as oligarchs, billionaires and multi-millionaires fight over the finite number of thrones available. They predict a near future in which a thousand billionaires disappear and in which too many 'elite hemorrhoids,' like Tony Blair, lead to revolution.
In the second half, Max interviews James Howard Kunstler of Kunstler.com about the financial hypertrophy of swindles and fraud in an economy in which the Strasbourg goose has Crohn's disease and markets have a whack attack on taper talk.
Published on Nov 28, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss elite overproduction as oligarchs, billionaires and multi-millionaires fight over the finite number of thrones available. They predict a near future in which a thousand billionaires disappear and in which too many 'elite hemorrhoids,' like Tony Blair, lead to revolution.
In the second half, Max interviews James Howard Kunstler of Kunstler.com about the financial hypertrophy of swindles and fraud in an economy in which the Strasbourg goose has Crohn's disease and markets have a whack attack on taper talk.
$1,000 Silver?
If a bitcoin can exceed a $1,000 per coin why can't silver exceed $1,000 per troy ounce?
Actually this is the first time I have heard a commentator discuss my long held view that silver will reach $1,000/oz and gold exceed $10,000/oz.
From SGTreport.com
Actually this is the first time I have heard a commentator discuss my long held view that silver will reach $1,000/oz and gold exceed $10,000/oz.
From SGTreport.com
Thursday, November 28, 2013
Ron Paul - Fed's Yellen Dangerous For The Economy
From Kitco NEWS
Published on Nov 26, 2013
What does former U.S. congressman Dr. Ron Paul think about Janet Yellen as the Fed Chair? Kitco News caught up with Paul at the Metals & Minerals Conference in San Francisco, where he is a keynote speaker, to discuss monetary policy, gold and the US dollar. "It's easy to be a critic if you don't believe they should exist"
Published on Nov 26, 2013
What does former U.S. congressman Dr. Ron Paul think about Janet Yellen as the Fed Chair? Kitco News caught up with Paul at the Metals & Minerals Conference in San Francisco, where he is a keynote speaker, to discuss monetary policy, gold and the US dollar. "It's easy to be a critic if you don't believe they should exist"
Wednesday, November 27, 2013
Keiser Report with Alasdair Macleod
From RT
Published on Nov 26, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss WTF in the UK as RBS slaughters SMEs and then robs their still warm corpses; while over in the PRC, the PBOC has thrown a whole bunch of STFU at US Treasuries. They discuss the implications of both oil being priced in yuan on the Shanghai futures exchange and Iran being prohibited from trading oil for gold under the P5+1 deal.
In the second half, Max interviews Alasdair Macleod of GoldMoney.com about 400 ounce London .995 gold bars being sent to Switzerland from Arab holders and melted down to 1 kilo .9999 bars, thus moving gold from the London standard, to the new better Chinese standard - suggesting we may be entering a post-petrodollar world. In which case, petrodollars could be flowing back into NY in pure dollar form to cause high inflation. And, finally, Max and Alasdair suggest that unless you rig gold markets, your forex and libor rigging won't work.
Published on Nov 26, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss WTF in the UK as RBS slaughters SMEs and then robs their still warm corpses; while over in the PRC, the PBOC has thrown a whole bunch of STFU at US Treasuries. They discuss the implications of both oil being priced in yuan on the Shanghai futures exchange and Iran being prohibited from trading oil for gold under the P5+1 deal.
In the second half, Max interviews Alasdair Macleod of GoldMoney.com about 400 ounce London .995 gold bars being sent to Switzerland from Arab holders and melted down to 1 kilo .9999 bars, thus moving gold from the London standard, to the new better Chinese standard - suggesting we may be entering a post-petrodollar world. In which case, petrodollars could be flowing back into NY in pure dollar form to cause high inflation. And, finally, Max and Alasdair suggest that unless you rig gold markets, your forex and libor rigging won't work.
Tuesday, November 26, 2013
If Gold is a Historical Relic why wont the US allow Iran to Trade Oil for Gold?
Article link
Iran’s accord with world powers to limit its nuclear program in exchange for as much as $7 billion in relief from sanctions left Presidents Barack Obama and Hassan Rouhani the task of selling the deal to critics.
By agreeing to curtail its nuclear activities, Iran won an easing of certain sanctions on oil, auto parts, gold and precious metals for six months. The deal, which is reversible, was announced early yesterday after five days of talks in Geneva. Without removing sanctions on oil exports, it releases some of Iran’s oil assets and allows it to keep exporting crude at current levels.
While Iran will be allowed to buy and sell precious metals, including gold, it will be barred from accepting them as payment for oil or any other sanctioned transaction, according to the officials. Iran sits on the world’s fourth-largest proven oil reserves.
Read more
Monday, November 25, 2013
Keiser Report: Gold, Silver, Bitcoin and Litecoin
From RT
Published on Nov 23, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss QE as the meals on wheels for over-leveraged, consum-oholic debt addicts with Ben Bernanke as the pusher with a story to tell which is that 'cheap money is good' for buying depreciating assets like cars and where 'gold slamdowns' are metered out to those who refuse to stay intoxicated on that cheap money. In the second half, Max interviews Barry Silbert of Second Market and BitcoinTrust.co about the future of bitcoin in terms of regulation, market dominance and how the transaction network will change the way people think of money.
Published on Nov 23, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss QE as the meals on wheels for over-leveraged, consum-oholic debt addicts with Ben Bernanke as the pusher with a story to tell which is that 'cheap money is good' for buying depreciating assets like cars and where 'gold slamdowns' are metered out to those who refuse to stay intoxicated on that cheap money. In the second half, Max interviews Barry Silbert of Second Market and BitcoinTrust.co about the future of bitcoin in terms of regulation, market dominance and how the transaction network will change the way people think of money.
42nd Largest Bank in the World considers a Bitcoin Card
I have had an interesting twitter discussion on bitcoin with one of Australia's big 4 banks, and 42nd in world ranking by assets, Westpac - here is the outcome:
@MoonSunTruth Hi, this is defiantly something that we are looking into! We’ll keep you posted with the details. ^EP
— Westpac (@WestpacNZ) November 24, 2013
The Kennedy Assassination - 50 Years Later
November 22, 2013, is the 50th anniversary of the assassination of President John F. Kennedy. The true story of JFK’s murder has never been officially admitted, although the conclusion that JFK was murdered by a plot involving the Secret Service, the CIA, and the Joint Chiefs of Staff has been well established by years of research, such as that provided by James W. Douglass in his book, JFK And The Unspeakable, published by Simon & Schuster in 2008. Ignore Douglass’ interest in the Trappist monk Thomas Merton and Merton’s prediction and focus on the heavily documented research that Douglass provides.
Or just turn to the contemporary films, taken by tourists watching JFK’s motorcade that are available on YouTube, which show clearly the Secret Service pulled from President Kennedy’s limo just prior to his assassination, and the Zapruder film that shows the killing shot to have come from President Kennedy’s right front, blowing off the back of his head, not from the rear as postulated in the Warren Commission Report, which would have pushed his head forward, not rearward.
I am not going to write about the assassination to the extent that the massive information permits. Those who want to know already know. Those who cannot face the music will never be able to confront the facts regardless of what I or anyone else writes or reveals.
To briefly review, the facts are conclusive that JFK was on terrible terms with the CIA and the Joint Chiefs. He had refused to support the CIA organized Bay of Pigs invasion of Cuba. He had rejected the Joint Chiefs’ “Operation Northwoods,” a plan to commit real and faked acts of violence against Americans, blame Castro and use the false flag events to bring regime change to Cuba. He had rejected the Joint Chiefs case that the Soviet Union should be attacked while the US held the advantage and before the Soviets could develop delivery systems for nuclear weapons. He had indicated that after his reelection he was going to pull US troops out of Vietnam and that he was going to break the CIA into a thousand pieces. He had aroused suspicion by working behind the scenes with Khrushchev to defuse the Cuban Missile Crisis, leading to claims that he was “soft on communism.” The CIA and Joint Chiefs’ belief that JFK was an unreliable ally in the war against communism spread into the Secret Service.
It has been established that the original autopsy of JFK’s fatal head wound was discarded and a faked one substituted in order to support the official story that Oswald shot JFK from behind. FBI director J. Edgar Hoover and President Johnson knew that Oswald was the CIA’s patsy, but they also understood, as did members of the Warren Commission, that to let the true story out would cause Americans to lose confidence in their own government at the height of the Cold War.
Robert Kennedy knew what had happened. He was on his way to being elected president and to holding the plotters accountable for the murder of his brother when the CIA assassinated him. A distinguished journalist, who was standing behind Robert Kennedy at the time of his assassination, told me that the killing shots came from behind past his ear. He submitted his report to the FBI and was never contacted.
Acoustic experts have conclusively demonstrated that more shots were fired than can be accounted for by Sirhan Sirhan’s pistol and that the sounds indicate two different calibers of firearms.
I never cease to be amazed by the gullibility of Americans, who know nothing about either event, but who confidently dismiss the factual evidence provided by experts and historians on the basis of their naive belief that “the government wouldn’t lie about such important events” or “someone would have talked.” What good would it do if someone talked when the gullible won’t believe hard evidence?
Secret Service pulled from JFK’s limo
http://www.lewrockwell.com/2013/11/james-huang/must-watch-video/
Zapruder film
http://www.youtube.com/watch?v=ufvmHYqfdbU
http://www.youtube.com/watch?v=1q91RZko5Gw
James W. Douglass, JFK and the Unspeakable, Simon & Schuster, 2008
Operation Northwoods: http://en.wikipedia.org/wiki/Operation_Northwoods
Sunday, November 24, 2013
Ever wish you could save and shop in a money of limited supply?
Well you can. You can save in the following three commodity monies, yet spend them just as you do now with your limitless fiat currency.
A debit card who's balance is denominated in barrels of oil:
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A debit card who's balance is denominated in ounces of gold:
.jpg)
A debit card who's balance can be recharged with Bitcoins:
A debit card who's balance is denominated in barrels of oil:
.jpg)
A debit card who's balance is denominated in ounces of gold:
.jpg)
A debit card who's balance can be recharged with Bitcoins:
Saturday, November 23, 2013
Weekend Chillout - Bits and Pieces
Well this week has been blown to bits with pieces on bitcoin. I have admission to make - after a couple of years of reading about bitcoin and coming to
understand somewhat the maths behind how the coins are "created" and
authenticated, I never really got the hype around why they were so much
better than any other currency. Until this week. This week I read a few
articles about merchant acceptance, the growing use in China and lastly
this article - combined they have finally sparked the light
bulb in my head, "now I get it" ~ god I am getting slow in my old age.
Bitcoin: The future, or a bubble waiting to burst?
194,993 BTC transaction worth $147m sparks mystery and speculation http://t.co/mdfQtTwOmQ
— CoinDesk (@coindesk) November 23, 2013From BBC Newsnight
Friday, November 22, 2013
Keiser Report: Bitcoin is Beautiful
From RT
Published on Nov 21, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss bitcoin barbarians at the gate as U.S. cedes dominance to China and as nations and people around the world reject U.S. made technology due to NSA spying. In the second half, Max interviews Karl Gray and Austin Craig about the documentary film, Life On Bitcoin, and about the latest in crypto-currencies, including Litecoin.
Published on Nov 21, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss bitcoin barbarians at the gate as U.S. cedes dominance to China and as nations and people around the world reject U.S. made technology due to NSA spying. In the second half, Max interviews Karl Gray and Austin Craig about the documentary film, Life On Bitcoin, and about the latest in crypto-currencies, including Litecoin.
Thursday, November 21, 2013
Death by Bitcoin
From Forbes.com
Article link
As Bitcoin becomes an increasingly popular form of digital cash, the cryptocurrency is being accepted in exchange for everything from socks to sushi to heroin. If one anarchist has his way, it’ll soon be used to buy murder, too.
Last month I received an encrypted email from someone calling himself by the pseudonym Kuwabatake Sanjuro, who pointed me towards his recent creation: The website Assassination Market, a crowdfunding service that lets anyone anonymously contribute bitcoins towards a bounty on the head of any government official–a kind of Kickstarter for political assassinations. According to Assassination Market’s rules, if someone on its hit list is killed–and yes, Sanjuro hopes that many targets will be–any hitman who can prove he or she was responsible receives the collected funds
....the largest current bounty on the site–targeting Ben Bernanke, chairman of the Federal Reserve and public enemy number one for many of Bitcoin’s anti-banking-system users. At Bitcoin’s current rapidly rising exchanges rate, that’s nearly $75,000 for Bernanke’s would-be killer.
Read more
Gold and Silver spill on FOMC mintues release
Gold and Silver have sold off in NY after market trading, with both Gold and Silver down over 2% due to perceived "bearish" news in the FOMC minutes from the Feds Oct meeting.
It seems that some brain dead algos have interrupted the following gibberish from the Fed as "bearish" even though the members of the board have committed to keep buying $85 billion worth ofcrap mortgage securities and treasuries per month.
Extract from the Oct FOMC Minutes:
It seems that some brain dead algos have interrupted the following gibberish from the Fed as "bearish" even though the members of the board have committed to keep buying $85 billion worth of
Extract from the Oct FOMC Minutes:
In their discussion of monetary policy for the period ahead, members generally noted that there had been little change in the economic outlook since the September meeting, and all members but one again judged that it would be appropriate for the Committee to await more evidence that progress toward its economic objectives would be sustained before adjusting the pace of asset purchases. In the view of one member, the cumulative improvement in the economy indicated that the continued easing of monetary policy at the current pace was no longer necessary. Many members stressed the data-dependent nature of the current asset purchase program, and some pointed out that, if economic conditions warranted, the Committee could decide to slow the pace of purchases at one of its next few meetings. A couple of members also commented that it would be important to continue laying the groundwork for such a reduction in pace through public statements and speeches, while emphasizing that the overall stance of monetary policy would remain highly accommodative as needed to meet the Committee's objectives.
At the conclusion of the discussion, the Committee decided to continue adding policy accommodation by purchasing additional MBS at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month and to maintain its existing reinvestment policies.
Jeff Christian reckons there's no gold or silver manipulation going on - yeah right!
From Cambridge House
Jeff Christian, the Managing Partner of CPM Group, chats with Vanessa Collette about gold and silver manipulation and the future prices of gold and silver.
Jeff Christian, the Managing Partner of CPM Group, chats with Vanessa Collette about gold and silver manipulation and the future prices of gold and silver.
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| click on image to access video |
Wednesday, November 20, 2013
Keiser Report: Art Market Melt-Up
From RT
Published on Nov 19, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the melt up in the art market as the very wealth scramble for safe havens from the taxpayers angry at the billions in free money they've been given. They also discuss financial irrigation, amputated gold and a special mince meat pie and Jamie stew for Christmas. In the second half, Max interviews Jim Rickards, author of Currency Wars, about central bank vaporware, straws in the dollar wind and about how Janet Yellen is to Ben Bernanke as Miley Cyrus is to Lady Gaga - ie trashier than the original.
Published on Nov 19, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the melt up in the art market as the very wealth scramble for safe havens from the taxpayers angry at the billions in free money they've been given. They also discuss financial irrigation, amputated gold and a special mince meat pie and Jamie stew for Christmas. In the second half, Max interviews Jim Rickards, author of Currency Wars, about central bank vaporware, straws in the dollar wind and about how Janet Yellen is to Ben Bernanke as Miley Cyrus is to Lady Gaga - ie trashier than the original.
Tuesday, November 19, 2013
Indonesian President Yudhoyono starts blowing out via his Twitter account over Australia Spying on him
So much for diplomatic channels (as translated by google translate):
U.S. & Australian acts very wounding strategic partnership with Indonesia, a fellow democratic country. * SBY *
I also regret the statement PM Australia who consider lightly tapping against Indonesia, without guilt. * SBY *
and lastly my favourite:
I also deplore the statement that pooh-pooh Australian PM wiretapping of Indonesia, without the guilt. * SBY *
U.S. & Australian acts very wounding strategic partnership with Indonesia, a fellow democratic country. * SBY *
I also regret the statement PM Australia who consider lightly tapping against Indonesia, without guilt. * SBY *
and lastly my favourite:
I also deplore the statement that pooh-pooh Australian PM wiretapping of Indonesia, without the guilt. * SBY *
Precious metals, a viable alternative currency?
Mon 18 Nov 13
Jim Sinclair, Chairman of the Independent Advisory Board at the Singapore Precious Metals Exchange explains why precious metals are an alternative to fiat currencies as the U.S. heads towards hyperinflation.
Jim Sinclair, Chairman of the Independent Advisory Board at the Singapore Precious Metals Exchange explains why precious metals are an alternative to fiat currencies as the U.S. heads towards hyperinflation.
Dr Stephen Leeb on Gold and China
Two New Yorkers Talking Economics and Gold
From Miles Franklin
Published on Nov 17, 2013
Andy Hoffman speaks to Jay Taylor from the Jay Taylor Radio Show on his weekly Podcast to discuss state of Europe and Japan, unemployment, QE, housing bubble, stock markets, inflation and deflation and debt.
Published on Nov 17, 2013
Andy Hoffman speaks to Jay Taylor from the Jay Taylor Radio Show on his weekly Podcast to discuss state of Europe and Japan, unemployment, QE, housing bubble, stock markets, inflation and deflation and debt.
Monday, November 18, 2013
Keiser Report: Deadly Money Printing Sins
From RT
Published on Nov 16, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss confessions and corruption, back doors and austerity. They look at Mark Carney's claim that house prices are rising because of expectations of higher wages and at David Cameron's calls for permanent austerity for the non-corporate class. Max suggests QE is being used not only to keep TBTF banks afloat but to keep whole bankers that would otherwise be vivisected. In the second half, Max interviews Cody Wilson about living in a trifecta of disruptive technologies as a citizen of the future in which bitcoin means a thousand silk roads and fanfare for the common man.
Published on Nov 16, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss confessions and corruption, back doors and austerity. They look at Mark Carney's claim that house prices are rising because of expectations of higher wages and at David Cameron's calls for permanent austerity for the non-corporate class. Max suggests QE is being used not only to keep TBTF banks afloat but to keep whole bankers that would otherwise be vivisected. In the second half, Max interviews Cody Wilson about living in a trifecta of disruptive technologies as a citizen of the future in which bitcoin means a thousand silk roads and fanfare for the common man.
Sunday, November 17, 2013
Jim Willie: Taper Propaganda Delivered Final Blow to Big US Banks, Liquidity Crisis Looms!
By Jim Willie, GoldenJackass.com
Janet Yellen appeared before the Senate Banking Committee on the approval process, more a production than a process. The veteran economist and banker was given respectful treatment. The good Senators do not wish to be subjected to smear campaigns (see Menendez of New Jersey) or to have their banker donations cut off, better described as relentless bribery toward policy control. After all, Wall Street firms wrote the Financial Regulatory Bill. She will be confirmed for the US Federal Reserve Chair post with some minor heckling by the Senators. Expect Corker (Tennessee), Vitter (Louisiana), and Rand Paul (Kentucky) to pitch in some salty commentary. Yellen fits the job description as an insider, with ample experience inside the Federal Reserve Board and the Council of Economic Advisors, with the correct tribal pedigree. She has carefully scripted her own commentary, with some tacit comprehension of the impossible task of fostering a strong enough economy to sustain itself toward spinning off adequate job growth. Yellen will continue the Zero Interest Rate Policy Forever and a day, since raising rates would kill the economic structure and financial lattice work. Yellen will continue the QE to Infinity, since interrupting the liquidity spigot would force a sudden collapse of the entire sovereign bond Ponzi Scheme, otherwise called the USTreasury Bond complex with its supporting Interest Rate Swap derivative flying buttresses, managed by the Exchange Stabilization Fund and the JPMorgan Chief Investment Office. Yellen has some blind spots, or else she sings the party line well. Expect continuity in monetary policy and the march toward a fascist state led by the financial elite helm, the criminal banker syndicate. She has an impressive record, despite being a Keynesian hack economist and purveyor of heretic doctrine at Univ California at Berkeley.
YELLEN THE REBEL, NOW BAGHOLDER
Some true irony must be cited as preface. To her credit, Yellen confronted Greenspan in 1996, opposing his policy that led to widespread irrational exuberrance. She pushed for for pre-emptive rate rises to choke inflation and wean the economy off cheap credit. She was correct, but was overruled by Mr Magoo, the knighted Sir Alan admiral heading toward the iceberg, whose other clandestine employers were the Queen of England and the Bank For Intl Settlements. After the Yellen warnings, the Greenspan Fed then began to make a series of fatal errors, leading to the 2000 tech telecom bubble and bust, followed by the housing & mortgage bubble and bust, both under the supposedly brilliant Greenspan helm. He was a bubble puffer and wrecking ball, deemed brilliant for his obfuscation and calm hand during the crises he himself created. He mesmerized the audience with his erudite babble. The US nation became addicted to ever lower real interest rates. Nobody called Yellen a dove in the 1990 decade. She is a dove by requirement now, since the system is broken and fully dependent on an even more massive torrent of free money. She is forbidden to terminate or shut the backdoor bailout of Wall Street banks, otherwise called Quantitative Easing.
A decade later, Yellen went on to oppose New York Fed chief William Dudley in December 2007 over the risks of subprime mortgage defaults. Thus she confronted the Goldman Sachs machine (Dudley from GSax), again slapped down. Yellen is on record as being on the opposing side of the table during those crucial months before the subprime housing crash. She tried to alert the Board toward the danger of a chain reaction through the shadow banking system. Ben Bernanke and the FOMC majority scoffed at her firmly stated admonitions that the subprime debacle was the tip of an iceberg. The eloquent Bernanke was wrong at the top of his voice, since the subprime debacle was to show itself, precisely as Yellen forewarned. They over-ruled her prudent wisdom. Yellen said, “I feel the presence of a 600-pound gorilla in the room, and that is the housing sector. The risk for further significant deterioration, with house prices falling and mortgage delinquencies rising, causes me appreciable angst.” The warning was given in June 2007, a full 15 months before the storm reached climax, but just prior to major mortgage cracks being revealed. During that time the Jackass was also making even more dire warnings. The Jackass warned of a chain reaction that would render the US banking system insolvent as a result of the busted housing bubble, which indeed happened. Bernanke went on to disprove his own PhD Economics thesis, since amplified liquidity does not treat successfully the prevalent insolvency after all, and the redemption of toxic bonds with the high volume liquidity does not set the economy on track for recovery after all. Revoke his Doctorate degree!
In the clash with Dudley directly, Yellen told him in no uncertain terms that he was supposed to be the official with his finger on the market pulse, the watchdog. She said, “The possibilities of a credit crunch developing and of the economy slipping into a recession seem all too real. At the time of our last meeting, I held out hope that the financial turmoil would gradually ebb and the economy might escape without serious damage. Subsequent developments have severely shaken that belief.” She was absolutely correct again, and regarded as insolent. The USEconomy was already in recession by then. As footnote, Robert Hetzel of the Richmond Fed wrote a powerful book entitled “The Great Recession” which accused the USFed itself of being the chief cause of the financial disaster that reached climax in 2008. He cited a far too tight FOMC which let the M2 money supply implode in early 2008. The disasters at Lehman, AIG, and Fannie Mae followed. So deep irony exists. The great financial bust might have been orchestrated.
Janet Yellen will take over at the US Federal Reserve after the damage is done, after the ZIRP is stuck in place forever, after the QE is stuck in place to infinity. No policy options exist anymore for Yellen to use, except to continue 0% and to continue bond monetization. They will cover the majority of USTreasury Bonds both in new issuance and in rollover, with well hidden monetization (sweet deal redemption) of wrecked toxic mortgage bonds held by Wall Street firms. Furthermore, they will continue the deeply hidden coverage of Interest Rate Swap contract derivative losses, which are already stacking up into the $trillions. The Taper Talk delivered the final blow to the big US banks, insolvent at the time. Now they are struggling with liquidity problems as a result of massive derivative losses that sap and drain their precious capital. The rise in bond yields caused tremendous damage. The Financial Regulatory Bill (aka Dodd-Frank Bill) will be suspended, just like the suspended FASB Rules on accounting practices in April 2009. The big US banks are to become bigger uglier darker zombies, more desperate too. The resistance to liquidate remains firm and steadfast with the utmost urgency and resistance.
The bagholder post will go to Yellen. Greenspan exited before the Lehman killjob and the Fannie Mae protection from fraud awareness. Bernanke has been a hack office mailroom boy managing over the Great American Weimar Experiment, with no good results. Ben is a loser, who is disproving his own doctorate thesis on stage live. The diminishing returns for QE are becoming clear and documented. As Lance Roberts of STA Wealth Mgmt shows in the simple chart below, it has taken $35.17 of government intervention to generate a single $1 of economic growth over the past five years. More importantly, the rate of diminishing returns is increasing. In other words, it is taking consistently more volume in intervention to create any incremental increase in economic growth. The Jackass contention is that the economic recession is going worse, hardly a recovery, with no growth whatsoever, since the great lie remains at least 5% on the price inflation deflator tool. See John Williams work, which shows the true CPI for inflation is around 7% to 9% every year. The True GDP growth rate is around minus 3% or minus 4%, based in reality.
Witness a fascinating aspect known to Ponzi Schemes. The volume must ramp up to keep the bubble stable. Eventually not enough volume can be lured into the bubble in support. In this case, the Exch Stabilization Fund team has the trusty highly leveraged Interest Rate Swap derivative machinery. The Jackass contends that the first fracture was seen in the IRSwap machinery in May 2012. The incident saw the emergence of the London Whale, replete with lies to explain the multi-$billion losses. The Taper Talk resulted in the TNX (10-yr TBond yield) rising from 1.65% in May to 2.95% in September, a staggering 130 basis point rise, sufficient to force deeper cracks and substantial functional damage in the IRSwap machinery. Consider that the machinery is no longer effectively performing its designed work, thus the need for Flash Trading in circle jerk manner among the Wall Street banks on the USTBond desks.
CRITIQUE OF SENATE STATEMENT BY YELLEN
Before the august body of mostly compromised and bribed senators, Yellen stated her position. It toes the line obediently. It tows the elite carriage also, complete with banker parasites as cargo. It assures continuation of the present destructive policy. It promises no change, no reform, no solution, only a path toward the cliff and into the abyss. Yellen stated,
“I consider it imperative that we do what we can to promote a very strong recovery. I do not see the program as continuing indefinitely. We are attempting to assess whether or not we have seen meaningful progress in the labor market. What the [Fed's policy] committee is looking for is signs we will have growth that is strong enough to promote continued progress.”
The first rebuttals must be made clearly, since done repeatedly by the Jackass without much of any echo from the economist community, or from the gold community for that matter. By promising to continue the current monetary policy of zero rates and bond monetization, until officials were confident a durable economic recovery was in place that could sustain job creation, she has in fact promised to continue on the present path until the systemic breakdown, until the body economic is sufficiently weak that it fractures and collapses. The reason is simple. The current monetary policy kills capital, and with wrecked capital comes weaker business performance, and inadequate internal dynamism to sustain the entire system. The reason is simple. The hyper monetary inflation, done by means of bond monetization, euphemistically called Quantitative Easing, results in a reaction of equal magnitude to protect institutions and individuals from the inflation with hedging activity. The reaction is motivated by investment in energy (or their deposits), in industrial metals (or their mines), in Gold & Silver (not their certificates), and in farmland (or foodstuff futures).
The consequence to the rampant inflation is a higher cost structure, which the economists and bankers refuse to discuss. The consequence is shrunken profitability for companies and businesses. The consequence is shutdown to business segments, with job losses. The consequence is retirement of capital equipment, their mothball, and their liquidation. So when Yellen and Bernanke talk of continuing QE and bond monetization until the USEconomy is strong enough to sustain growth, they are ignorant liars and economic heretics. They are poor students of capitalism and the corrosive effect of their mandated inflation. They are therefore on a collision course with systemic failure, economic breakdown, and USGovt debt default. They will perpetuate their destructive monetary policy, because they have no choice. They will perpetuate their destructive monetary policy until the systemic breakdown and debt default occur, which they will blame on the Chinese and Saudis for their USDollar abandonment. Yellen will preside over systemic failure.
Yellen claims that current policy benefits outweigh the costs. She must be referring to the unending outsized astounding benefits for big Wall Street banks. The QE initiative itself is a gigantic hidden backdoor bailout of Wall Street banks, which raises costs to Main Street businesses. To the many corporations and businesses, especially the small businesses, the QE is a plague. None of the amplified liquidity reaches Main Street, but the higher costs surely do. Yellen is a liar.
Yellen cites no timetable for ending ZIRP (the zero bound interest rate) or QE (the bond monetization, aka hyper monetary inflation). She is not in a position to end either policy, since both were tested during the Taper Talk trial balloon. Expect the ultra-low interest rate forever. Expect the bond monetization purchase initiative to ramp toward infinite volume. The pressures for the USFed to cover and redeem what foreign governments and prominent institutions (like banks and investment firms) sell in USTreasury Bonds will be tremendous. The foreign bond holders are diversifying and dumping. The USFed will become the buyer of last resort in a horrific flood of USTBonds coming home to sender. The present foreign bond holders will wish to convert them to Gold bullion. Expect the ZIRP & QE policies to continue until the systemic breakdown or until the USGovt debt default. Obviously there is no timetable, since it will drag on forever, if their wishes are met. But the markets and the opposition in the East will not be deterred. Yellen is stuck in a quagmire.
Yellen denies that the US stock market or US Housing markets are in a bubble. To begin with, even CNBC and Bloomberg talking heads comprehend that the bull market is stocks is the primary result of the USFed easy money policy. They are the dumbest guys in the room. A great deal of the free money is directed into stocks. Surely Yellen is aware of the Working Group for Financial Markets (aka Plunge Protection Team) and their work to support stocks, mainly financial stocks. Surely she is aware of the Flash Trading (aka Algorithm Computer Trading) schemes deployed regularly by Wall Street in rotation to maintain artificially high stock share prices. The US Housing market admittedly is not in a bubble. It is a market in charred ruins, maybe dead, not quite buried, surely comatose, but clearly not reviving. The only significant housing demand with broad shoulders comes from the Private Equity firms who are buying tranches of residential homes from the big banks. The banks are unloading their REO foreclosed homes to the next unwitting fool, the Private Equity firms. Two experienced Hat Trick Letter subscribers have assured that these firms are in for a nightmare, with troublesome tenants, sabotage, disrepair, gone to seed, and required bribes to evict, not to mention the challenge to find good paying tenants. They have direct experience in the Miami Metro and North Ohio regions. Yellen conveniently did not deny the USTreasury Bond market was in bubble territory. The USTBonds are the biggest asset bubble in human history, courtesy of the USFed and its crafty team of colluding central banks. Yellen is a liar.
Yellen boasts of diligence to spot risky financial behavior, as in heading off the next asset bubble. She might finally have such an unobstructed privilege. In the past, she warned Greenspan and Dudley, but to no avail. The asset bubbles continued, and they all broke. The damage is now at her feet. She cannot repair the damage without installing a Gold Standard and presiding over the liquidation of the big Wall Street money center banks. If Yellen is diligent, she will identify the current abuse of interest rate derivatives required to sustain the bond bubble. They constitute risky financial behavior. Yellen will be caught in a Catch-22. She will not be able to cite or to halt risky financial behavior, since it is required to sustain the USTBond bubble. She must defend the USTBond structure, which means defending its bubble nature on a repeated endless basis with full denial. She cannot pinprick the bond bubble she is hired to defend. Yellen is a liar.
Yellen promises to use policy to prick future asset bubbles. This is totally empty talk couched in propaganda of the most vacant variety. Her Wall Street masters will not permit any such pinprick. They are the asset bubble engineers in power, whose work will not be inhibited by any silly USFed errant boy or girl in the chair post. The asset bubble Yellen should be most concerned about is the $3.7 trillion balance sheet held by the USFed, loaded with toxic worthless crappola. Harken back to all the Collateralized Debt Obligations taken by the USFed, the leverage squared hokum paper with mortgage bond basis in the leverage, all worthless. The USFed gobbled up the worst assets at the highest prices from the onset. The claim by Yellen to be vigilant to asset bubbles is stupid talk, empty words to appease dumbass and corrupted Senators, as well as the dumbass and ignorant American public, notwithstanding the dumbass and clueless global observers. One must wonder if Yellen was watching when the USFed ran a trial balloon, during the springtime Taper Talk chapter. It was both a trial and a bluff, in order to gauge the effect of withdrawn hyper monetary inflation, to judge its extensive reach. The answer was universal. All global financial markets were affected, both in the industrial world and the emerging market world. You gotta laugh at the label of the Western mature nations, which shed their industry, having dispatched their factories to the East. The West is to become the De-Industrialized Third World. Yellen will not pinprick any future asset bubble. She will defend to the pathetic decrepit villainous demise the USTreasury Bond bubble, without ever referring to it as a bubble. The rest of the world will do exactly that, accuse the USGovt and USFed of sustaining and defending to the death the USTBond bubble. Yellen is a liar.
Yellen argues that higher capital and liquidity at the biggest US banks as a high priority. The recent maneuver by Citigroup makes this claim a lie, as they are fostering a bill through the USCongress that relaxes the capital requirements and puts aside the obstacles for the big US banks to participate and persist in derivative trading. The so-called Prop-Desk Rule is being discarded. If Yellen were sincere, she would argue that the FASB accounting rule suspension be put back in place, requiring the big US banks to declare fair market value, the mark to market value for their damaged goods, their impaired assets on balance sheets. Yellen will surely honor her pledge in keeping the liquidity ample for benefit to the biggest banks. So expect the new USFed Chair to relax capital requirements, while directing inflationary flow of funds into their coffers. It is too late anyway, since these big once powerful giant banks are dead insolvent zombie monsters Yellen is a liar.
PREVIEW OF A YELLEN FED
The Yellen position on monetary policy should be clear. It will show no change from the Bernanke Fed, only more frustration to fix anything or to alter any course. Yellen is a free money advocate. She has urged extreme measures like negative interest rates while supporting massive bond monetization. Expect a steady hand on the same destructive course. The Yellen Fed will print money forever in the errant hope to create jobs, but with true motive to bail out the big US banks behind our backs. Her past shows several confrontations against bad policy, all proving her to be correct. She will serve as a bagholder at a late stage, with no option to depart from the current monetary policy of zero bound rates forever and bond monetization to infinity. Her tenure will be pocked by frustration and marred by desperation, as the USDollar is being currently rejected, and the USTBond is currently being dumped.
In a speech given in March 2013 before the National Assn for Business Economics Policy Conference, Yellen made the absurd statement, “If it were positive to take interest rates into negative territory, I would be voting for that.” One is left to wonder how it would be decided, and by whom, that doing so would be positive, meaning to have benefit. Yellen has a solid career resume, if credit is given to the defenders of the current system. She holds the post of Vice Chair of the Board of Governors of the Federal Reserve System. Previously she served as head of the San Francisco Fed, and as head of the White House Council of Economic Advisers in the Clinton Admin. She is a Professor Emerita at the Berkeley Haas School of Business at the Univ of California. She continues the pedigree strain common to the USFed Chairman position over the last two decades, an ethnic syndicate job requirement methinks, with certain dietary dictums.
Yellen sees nothing dangerous, destructive, or harmful in the current Quantitative Easing initiatives held in place by the USFed. She pointed to potential costs of its asset purchases, which need to be monitored over time. She does not see anything that would lead her to advocate a curtailment of our purchase program. In other words, she sees no capital destruction effect from a rising cost structure in response to the extreme USDollar debasement at work in a corrosive manner. She errantly believes the ZIRP & QE policy will help foster a stronger recovery and keep inflation close to the longer-term target. Neither concept is correct. She cites vague policy risks, but does not elaborate. Doing so would surely cause hot debate, thus silence to be heard. She acknowledges the high cost that unemployed workers and their families are paying in this disappointingly slow recovery. She concluded, “There is the risk of longer-term damage to the labor market and the economy’s productive capacity. At present, I view the balance of risks as still calling for a highly accommodative monetary policy to support a stronger recovery and more-rapid growth in employment.” Pure delusion.
The current status noted, but not the risk of aggravation due to the USFed policy itself. The stated risk to productive capacity seems close to an admission by Yellen of capital destruction. The consensus is that a Yellen Fed will be looser with amplified free money and for a longer period. Any new USFed has no alternative, or else sudden collapse. To promise of continued zero bound with heavy bond monetization until the USEconomy recovers is a promise of its continuation until the systemic failure. No USFed chief in history has been better qualified than Yellen, as far as being a veteran system wonk, but be not encouraged. In glaring contrast, Alan Greenspan was a political speech writer for Richard Nixon. Sir Alan never truly earned a PhD in Economics, his parchment being an honorary degree from Columbia University. Greenspan did however author some excellent essays on the benefits of gold and its proper role at the center of the financial system, now proved correct. The irony is that Yellen will preside over the systemic failure that she herself warned about.
The USFed under Greenspan and Bernanke has had a history of creating bubbles and then pricking them, with an important hand in every crisis. The ongoing endless perpetual ZIRP & QE is their legacy, which has placed a noose around the neck of the nation. Systemic failure, dead ahead!! The Gold Trade Standard will rise from the ashes of the wrecked USTreasury Bond bubble, the greatest grandest beast in asset bubble history. The Jackass view is simple. Janet Yellen is set to take the bagholder post as the new USFed chair. She is stuck in the current monetary policy with no option to alter the course toward catastrophe. She has no workable options. Her acceptance for the job is testimony to pride, not ambition. One must be very curious what reward she and Bernanke were offered to manage the Weimar wagon train and centrifuge on the caboose.
Yellen cannot stop the Zero Interest Rate Policy, or else face an implosion to the USEconomy from rising rates. She cannot stop the Quantitative Easing policy either, or else face an implosion to the USTreasury Bond market from unwinding carry trade, diversification among foreign bond holders, and the lit fuse of derivatives. Yellen is bound to continue the amplified free money course, despite the growing risks and certain capital destruction. A key question is whether Yellen will slip in a comment that ZIRP & QE kills capital and thus inhibits the delusional recovery, the requirement to end the accommodative policy. The final question is whether Yellen will submit well to nasty deforming unflattering caricatures in the press. Of course she will. We humans are all funny looking.
Janet Yellen appeared before the Senate Banking Committee on the approval process, more a production than a process. The veteran economist and banker was given respectful treatment. The good Senators do not wish to be subjected to smear campaigns (see Menendez of New Jersey) or to have their banker donations cut off, better described as relentless bribery toward policy control. After all, Wall Street firms wrote the Financial Regulatory Bill. She will be confirmed for the US Federal Reserve Chair post with some minor heckling by the Senators. Expect Corker (Tennessee), Vitter (Louisiana), and Rand Paul (Kentucky) to pitch in some salty commentary. Yellen fits the job description as an insider, with ample experience inside the Federal Reserve Board and the Council of Economic Advisors, with the correct tribal pedigree. She has carefully scripted her own commentary, with some tacit comprehension of the impossible task of fostering a strong enough economy to sustain itself toward spinning off adequate job growth. Yellen will continue the Zero Interest Rate Policy Forever and a day, since raising rates would kill the economic structure and financial lattice work. Yellen will continue the QE to Infinity, since interrupting the liquidity spigot would force a sudden collapse of the entire sovereign bond Ponzi Scheme, otherwise called the USTreasury Bond complex with its supporting Interest Rate Swap derivative flying buttresses, managed by the Exchange Stabilization Fund and the JPMorgan Chief Investment Office. Yellen has some blind spots, or else she sings the party line well. Expect continuity in monetary policy and the march toward a fascist state led by the financial elite helm, the criminal banker syndicate. She has an impressive record, despite being a Keynesian hack economist and purveyor of heretic doctrine at Univ California at Berkeley.
YELLEN THE REBEL, NOW BAGHOLDER
Some true irony must be cited as preface. To her credit, Yellen confronted Greenspan in 1996, opposing his policy that led to widespread irrational exuberrance. She pushed for for pre-emptive rate rises to choke inflation and wean the economy off cheap credit. She was correct, but was overruled by Mr Magoo, the knighted Sir Alan admiral heading toward the iceberg, whose other clandestine employers were the Queen of England and the Bank For Intl Settlements. After the Yellen warnings, the Greenspan Fed then began to make a series of fatal errors, leading to the 2000 tech telecom bubble and bust, followed by the housing & mortgage bubble and bust, both under the supposedly brilliant Greenspan helm. He was a bubble puffer and wrecking ball, deemed brilliant for his obfuscation and calm hand during the crises he himself created. He mesmerized the audience with his erudite babble. The US nation became addicted to ever lower real interest rates. Nobody called Yellen a dove in the 1990 decade. She is a dove by requirement now, since the system is broken and fully dependent on an even more massive torrent of free money. She is forbidden to terminate or shut the backdoor bailout of Wall Street banks, otherwise called Quantitative Easing.
A decade later, Yellen went on to oppose New York Fed chief William Dudley in December 2007 over the risks of subprime mortgage defaults. Thus she confronted the Goldman Sachs machine (Dudley from GSax), again slapped down. Yellen is on record as being on the opposing side of the table during those crucial months before the subprime housing crash. She tried to alert the Board toward the danger of a chain reaction through the shadow banking system. Ben Bernanke and the FOMC majority scoffed at her firmly stated admonitions that the subprime debacle was the tip of an iceberg. The eloquent Bernanke was wrong at the top of his voice, since the subprime debacle was to show itself, precisely as Yellen forewarned. They over-ruled her prudent wisdom. Yellen said, “I feel the presence of a 600-pound gorilla in the room, and that is the housing sector. The risk for further significant deterioration, with house prices falling and mortgage delinquencies rising, causes me appreciable angst.” The warning was given in June 2007, a full 15 months before the storm reached climax, but just prior to major mortgage cracks being revealed. During that time the Jackass was also making even more dire warnings. The Jackass warned of a chain reaction that would render the US banking system insolvent as a result of the busted housing bubble, which indeed happened. Bernanke went on to disprove his own PhD Economics thesis, since amplified liquidity does not treat successfully the prevalent insolvency after all, and the redemption of toxic bonds with the high volume liquidity does not set the economy on track for recovery after all. Revoke his Doctorate degree!
In the clash with Dudley directly, Yellen told him in no uncertain terms that he was supposed to be the official with his finger on the market pulse, the watchdog. She said, “The possibilities of a credit crunch developing and of the economy slipping into a recession seem all too real. At the time of our last meeting, I held out hope that the financial turmoil would gradually ebb and the economy might escape without serious damage. Subsequent developments have severely shaken that belief.” She was absolutely correct again, and regarded as insolent. The USEconomy was already in recession by then. As footnote, Robert Hetzel of the Richmond Fed wrote a powerful book entitled “The Great Recession” which accused the USFed itself of being the chief cause of the financial disaster that reached climax in 2008. He cited a far too tight FOMC which let the M2 money supply implode in early 2008. The disasters at Lehman, AIG, and Fannie Mae followed. So deep irony exists. The great financial bust might have been orchestrated.
Janet Yellen will take over at the US Federal Reserve after the damage is done, after the ZIRP is stuck in place forever, after the QE is stuck in place to infinity. No policy options exist anymore for Yellen to use, except to continue 0% and to continue bond monetization. They will cover the majority of USTreasury Bonds both in new issuance and in rollover, with well hidden monetization (sweet deal redemption) of wrecked toxic mortgage bonds held by Wall Street firms. Furthermore, they will continue the deeply hidden coverage of Interest Rate Swap contract derivative losses, which are already stacking up into the $trillions. The Taper Talk delivered the final blow to the big US banks, insolvent at the time. Now they are struggling with liquidity problems as a result of massive derivative losses that sap and drain their precious capital. The rise in bond yields caused tremendous damage. The Financial Regulatory Bill (aka Dodd-Frank Bill) will be suspended, just like the suspended FASB Rules on accounting practices in April 2009. The big US banks are to become bigger uglier darker zombies, more desperate too. The resistance to liquidate remains firm and steadfast with the utmost urgency and resistance.
The bagholder post will go to Yellen. Greenspan exited before the Lehman killjob and the Fannie Mae protection from fraud awareness. Bernanke has been a hack office mailroom boy managing over the Great American Weimar Experiment, with no good results. Ben is a loser, who is disproving his own doctorate thesis on stage live. The diminishing returns for QE are becoming clear and documented. As Lance Roberts of STA Wealth Mgmt shows in the simple chart below, it has taken $35.17 of government intervention to generate a single $1 of economic growth over the past five years. More importantly, the rate of diminishing returns is increasing. In other words, it is taking consistently more volume in intervention to create any incremental increase in economic growth. The Jackass contention is that the economic recession is going worse, hardly a recovery, with no growth whatsoever, since the great lie remains at least 5% on the price inflation deflator tool. See John Williams work, which shows the true CPI for inflation is around 7% to 9% every year. The True GDP growth rate is around minus 3% or minus 4%, based in reality.
Witness a fascinating aspect known to Ponzi Schemes. The volume must ramp up to keep the bubble stable. Eventually not enough volume can be lured into the bubble in support. In this case, the Exch Stabilization Fund team has the trusty highly leveraged Interest Rate Swap derivative machinery. The Jackass contends that the first fracture was seen in the IRSwap machinery in May 2012. The incident saw the emergence of the London Whale, replete with lies to explain the multi-$billion losses. The Taper Talk resulted in the TNX (10-yr TBond yield) rising from 1.65% in May to 2.95% in September, a staggering 130 basis point rise, sufficient to force deeper cracks and substantial functional damage in the IRSwap machinery. Consider that the machinery is no longer effectively performing its designed work, thus the need for Flash Trading in circle jerk manner among the Wall Street banks on the USTBond desks.
CRITIQUE OF SENATE STATEMENT BY YELLEN
Before the august body of mostly compromised and bribed senators, Yellen stated her position. It toes the line obediently. It tows the elite carriage also, complete with banker parasites as cargo. It assures continuation of the present destructive policy. It promises no change, no reform, no solution, only a path toward the cliff and into the abyss. Yellen stated,
“I consider it imperative that we do what we can to promote a very strong recovery. I do not see the program as continuing indefinitely. We are attempting to assess whether or not we have seen meaningful progress in the labor market. What the [Fed's policy] committee is looking for is signs we will have growth that is strong enough to promote continued progress.”
The first rebuttals must be made clearly, since done repeatedly by the Jackass without much of any echo from the economist community, or from the gold community for that matter. By promising to continue the current monetary policy of zero rates and bond monetization, until officials were confident a durable economic recovery was in place that could sustain job creation, she has in fact promised to continue on the present path until the systemic breakdown, until the body economic is sufficiently weak that it fractures and collapses. The reason is simple. The current monetary policy kills capital, and with wrecked capital comes weaker business performance, and inadequate internal dynamism to sustain the entire system. The reason is simple. The hyper monetary inflation, done by means of bond monetization, euphemistically called Quantitative Easing, results in a reaction of equal magnitude to protect institutions and individuals from the inflation with hedging activity. The reaction is motivated by investment in energy (or their deposits), in industrial metals (or their mines), in Gold & Silver (not their certificates), and in farmland (or foodstuff futures).
The consequence to the rampant inflation is a higher cost structure, which the economists and bankers refuse to discuss. The consequence is shrunken profitability for companies and businesses. The consequence is shutdown to business segments, with job losses. The consequence is retirement of capital equipment, their mothball, and their liquidation. So when Yellen and Bernanke talk of continuing QE and bond monetization until the USEconomy is strong enough to sustain growth, they are ignorant liars and economic heretics. They are poor students of capitalism and the corrosive effect of their mandated inflation. They are therefore on a collision course with systemic failure, economic breakdown, and USGovt debt default. They will perpetuate their destructive monetary policy, because they have no choice. They will perpetuate their destructive monetary policy until the systemic breakdown and debt default occur, which they will blame on the Chinese and Saudis for their USDollar abandonment. Yellen will preside over systemic failure.
Yellen claims that current policy benefits outweigh the costs. She must be referring to the unending outsized astounding benefits for big Wall Street banks. The QE initiative itself is a gigantic hidden backdoor bailout of Wall Street banks, which raises costs to Main Street businesses. To the many corporations and businesses, especially the small businesses, the QE is a plague. None of the amplified liquidity reaches Main Street, but the higher costs surely do. Yellen is a liar.
Yellen cites no timetable for ending ZIRP (the zero bound interest rate) or QE (the bond monetization, aka hyper monetary inflation). She is not in a position to end either policy, since both were tested during the Taper Talk trial balloon. Expect the ultra-low interest rate forever. Expect the bond monetization purchase initiative to ramp toward infinite volume. The pressures for the USFed to cover and redeem what foreign governments and prominent institutions (like banks and investment firms) sell in USTreasury Bonds will be tremendous. The foreign bond holders are diversifying and dumping. The USFed will become the buyer of last resort in a horrific flood of USTBonds coming home to sender. The present foreign bond holders will wish to convert them to Gold bullion. Expect the ZIRP & QE policies to continue until the systemic breakdown or until the USGovt debt default. Obviously there is no timetable, since it will drag on forever, if their wishes are met. But the markets and the opposition in the East will not be deterred. Yellen is stuck in a quagmire.
Yellen denies that the US stock market or US Housing markets are in a bubble. To begin with, even CNBC and Bloomberg talking heads comprehend that the bull market is stocks is the primary result of the USFed easy money policy. They are the dumbest guys in the room. A great deal of the free money is directed into stocks. Surely Yellen is aware of the Working Group for Financial Markets (aka Plunge Protection Team) and their work to support stocks, mainly financial stocks. Surely she is aware of the Flash Trading (aka Algorithm Computer Trading) schemes deployed regularly by Wall Street in rotation to maintain artificially high stock share prices. The US Housing market admittedly is not in a bubble. It is a market in charred ruins, maybe dead, not quite buried, surely comatose, but clearly not reviving. The only significant housing demand with broad shoulders comes from the Private Equity firms who are buying tranches of residential homes from the big banks. The banks are unloading their REO foreclosed homes to the next unwitting fool, the Private Equity firms. Two experienced Hat Trick Letter subscribers have assured that these firms are in for a nightmare, with troublesome tenants, sabotage, disrepair, gone to seed, and required bribes to evict, not to mention the challenge to find good paying tenants. They have direct experience in the Miami Metro and North Ohio regions. Yellen conveniently did not deny the USTreasury Bond market was in bubble territory. The USTBonds are the biggest asset bubble in human history, courtesy of the USFed and its crafty team of colluding central banks. Yellen is a liar.
Yellen boasts of diligence to spot risky financial behavior, as in heading off the next asset bubble. She might finally have such an unobstructed privilege. In the past, she warned Greenspan and Dudley, but to no avail. The asset bubbles continued, and they all broke. The damage is now at her feet. She cannot repair the damage without installing a Gold Standard and presiding over the liquidation of the big Wall Street money center banks. If Yellen is diligent, she will identify the current abuse of interest rate derivatives required to sustain the bond bubble. They constitute risky financial behavior. Yellen will be caught in a Catch-22. She will not be able to cite or to halt risky financial behavior, since it is required to sustain the USTBond bubble. She must defend the USTBond structure, which means defending its bubble nature on a repeated endless basis with full denial. She cannot pinprick the bond bubble she is hired to defend. Yellen is a liar.
Yellen promises to use policy to prick future asset bubbles. This is totally empty talk couched in propaganda of the most vacant variety. Her Wall Street masters will not permit any such pinprick. They are the asset bubble engineers in power, whose work will not be inhibited by any silly USFed errant boy or girl in the chair post. The asset bubble Yellen should be most concerned about is the $3.7 trillion balance sheet held by the USFed, loaded with toxic worthless crappola. Harken back to all the Collateralized Debt Obligations taken by the USFed, the leverage squared hokum paper with mortgage bond basis in the leverage, all worthless. The USFed gobbled up the worst assets at the highest prices from the onset. The claim by Yellen to be vigilant to asset bubbles is stupid talk, empty words to appease dumbass and corrupted Senators, as well as the dumbass and ignorant American public, notwithstanding the dumbass and clueless global observers. One must wonder if Yellen was watching when the USFed ran a trial balloon, during the springtime Taper Talk chapter. It was both a trial and a bluff, in order to gauge the effect of withdrawn hyper monetary inflation, to judge its extensive reach. The answer was universal. All global financial markets were affected, both in the industrial world and the emerging market world. You gotta laugh at the label of the Western mature nations, which shed their industry, having dispatched their factories to the East. The West is to become the De-Industrialized Third World. Yellen will not pinprick any future asset bubble. She will defend to the pathetic decrepit villainous demise the USTreasury Bond bubble, without ever referring to it as a bubble. The rest of the world will do exactly that, accuse the USGovt and USFed of sustaining and defending to the death the USTBond bubble. Yellen is a liar.
Yellen argues that higher capital and liquidity at the biggest US banks as a high priority. The recent maneuver by Citigroup makes this claim a lie, as they are fostering a bill through the USCongress that relaxes the capital requirements and puts aside the obstacles for the big US banks to participate and persist in derivative trading. The so-called Prop-Desk Rule is being discarded. If Yellen were sincere, she would argue that the FASB accounting rule suspension be put back in place, requiring the big US banks to declare fair market value, the mark to market value for their damaged goods, their impaired assets on balance sheets. Yellen will surely honor her pledge in keeping the liquidity ample for benefit to the biggest banks. So expect the new USFed Chair to relax capital requirements, while directing inflationary flow of funds into their coffers. It is too late anyway, since these big once powerful giant banks are dead insolvent zombie monsters Yellen is a liar.
PREVIEW OF A YELLEN FED
The Yellen position on monetary policy should be clear. It will show no change from the Bernanke Fed, only more frustration to fix anything or to alter any course. Yellen is a free money advocate. She has urged extreme measures like negative interest rates while supporting massive bond monetization. Expect a steady hand on the same destructive course. The Yellen Fed will print money forever in the errant hope to create jobs, but with true motive to bail out the big US banks behind our backs. Her past shows several confrontations against bad policy, all proving her to be correct. She will serve as a bagholder at a late stage, with no option to depart from the current monetary policy of zero bound rates forever and bond monetization to infinity. Her tenure will be pocked by frustration and marred by desperation, as the USDollar is being currently rejected, and the USTBond is currently being dumped.
In a speech given in March 2013 before the National Assn for Business Economics Policy Conference, Yellen made the absurd statement, “If it were positive to take interest rates into negative territory, I would be voting for that.” One is left to wonder how it would be decided, and by whom, that doing so would be positive, meaning to have benefit. Yellen has a solid career resume, if credit is given to the defenders of the current system. She holds the post of Vice Chair of the Board of Governors of the Federal Reserve System. Previously she served as head of the San Francisco Fed, and as head of the White House Council of Economic Advisers in the Clinton Admin. She is a Professor Emerita at the Berkeley Haas School of Business at the Univ of California. She continues the pedigree strain common to the USFed Chairman position over the last two decades, an ethnic syndicate job requirement methinks, with certain dietary dictums.
Yellen sees nothing dangerous, destructive, or harmful in the current Quantitative Easing initiatives held in place by the USFed. She pointed to potential costs of its asset purchases, which need to be monitored over time. She does not see anything that would lead her to advocate a curtailment of our purchase program. In other words, she sees no capital destruction effect from a rising cost structure in response to the extreme USDollar debasement at work in a corrosive manner. She errantly believes the ZIRP & QE policy will help foster a stronger recovery and keep inflation close to the longer-term target. Neither concept is correct. She cites vague policy risks, but does not elaborate. Doing so would surely cause hot debate, thus silence to be heard. She acknowledges the high cost that unemployed workers and their families are paying in this disappointingly slow recovery. She concluded, “There is the risk of longer-term damage to the labor market and the economy’s productive capacity. At present, I view the balance of risks as still calling for a highly accommodative monetary policy to support a stronger recovery and more-rapid growth in employment.” Pure delusion.
The current status noted, but not the risk of aggravation due to the USFed policy itself. The stated risk to productive capacity seems close to an admission by Yellen of capital destruction. The consensus is that a Yellen Fed will be looser with amplified free money and for a longer period. Any new USFed has no alternative, or else sudden collapse. To promise of continued zero bound with heavy bond monetization until the USEconomy recovers is a promise of its continuation until the systemic failure. No USFed chief in history has been better qualified than Yellen, as far as being a veteran system wonk, but be not encouraged. In glaring contrast, Alan Greenspan was a political speech writer for Richard Nixon. Sir Alan never truly earned a PhD in Economics, his parchment being an honorary degree from Columbia University. Greenspan did however author some excellent essays on the benefits of gold and its proper role at the center of the financial system, now proved correct. The irony is that Yellen will preside over the systemic failure that she herself warned about.
The USFed under Greenspan and Bernanke has had a history of creating bubbles and then pricking them, with an important hand in every crisis. The ongoing endless perpetual ZIRP & QE is their legacy, which has placed a noose around the neck of the nation. Systemic failure, dead ahead!! The Gold Trade Standard will rise from the ashes of the wrecked USTreasury Bond bubble, the greatest grandest beast in asset bubble history. The Jackass view is simple. Janet Yellen is set to take the bagholder post as the new USFed chair. She is stuck in the current monetary policy with no option to alter the course toward catastrophe. She has no workable options. Her acceptance for the job is testimony to pride, not ambition. One must be very curious what reward she and Bernanke were offered to manage the Weimar wagon train and centrifuge on the caboose.
Yellen cannot stop the Zero Interest Rate Policy, or else face an implosion to the USEconomy from rising rates. She cannot stop the Quantitative Easing policy either, or else face an implosion to the USTreasury Bond market from unwinding carry trade, diversification among foreign bond holders, and the lit fuse of derivatives. Yellen is bound to continue the amplified free money course, despite the growing risks and certain capital destruction. A key question is whether Yellen will slip in a comment that ZIRP & QE kills capital and thus inhibits the delusional recovery, the requirement to end the accommodative policy. The final question is whether Yellen will submit well to nasty deforming unflattering caricatures in the press. Of course she will. We humans are all funny looking.
From Bloomberg
Weekend Chillout - Its not over till its over
This week Janet Yellen’s Senate confirmation testimony confirmed that QE is not over and won't be till it is over.
More of brilliant Aussie singer Deni Hines
More of brilliant Aussie singer Deni Hines
Keiser Report: Mud Pie of State Benefits
From RT
Published on Nov 14, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss people fighting for the last dregs of the mud pie of state benefits while a new Investor State emerges contactable only if you can find their unmanned customer service line. In the second half, Max interviews author and gold bug, Dominic Frisby about his new book - Life After the State. They look at polls suggesting the UK public wants more state intervention rather than less and also at the rise of the stateless currency - bitcoin.
Published on Nov 14, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss people fighting for the last dregs of the mud pie of state benefits while a new Investor State emerges contactable only if you can find their unmanned customer service line. In the second half, Max interviews author and gold bug, Dominic Frisby about his new book - Life After the State. They look at polls suggesting the UK public wants more state intervention rather than less and also at the rise of the stateless currency - bitcoin.
Saturday, November 16, 2013
Friday, November 15, 2013
Thursday, November 14, 2013
World Gold Council - Gold Demand Trends Q3 2013
The World Gold Council's Gold Demand Trends (GDT) is the leading industry resource for data and opinion on world-wide gold demand. Our quarterly publication examines demand trends by sector and geography. The most recent review of the third quarter of 2013 comprises three sections:
Executive summary:
This section of the report considers the main themes to have emerged in global gold demand in Q3 and throughout the year-to-date.
Global Gold Market: Third quarter 2013 review
Jewellery: The jewellery sector delivered another quarter of solid year-on-year growth as consumers across the globe, encouraged by lower average prices, showed an increasing demand for higher carat pieces.
Investment: Demand for bars and coins grew 6% to 304.2 tonnes, with growth mainly coming from Asia and the Middle East, including Turkey. Outflows from ETFs slowed to 119t.
Technology: Q3 was another period of robust demand for gold in the Technology sector. Demand related to the use of gold in electronics has shown the most resilience, aided by demand for tablets and smart phones.
Central Banks: Central banks continued to accumulate gold, albeit at a slower rate than the elevated levels seen in 2012. Year-to-date, global central bank gold reserves have increased by almost 300 tonnes.
Supply: The supply of gold in the third quarter fell by 3% from the same period in 2012. A sharp contraction in the supply of gold from recycling accounted for the decline as mine production increased by 4%.
Wednesday, November 13, 2013
Keiser Report: Troika Occupiers (ft. Peter Schiff)
From RT
Published on Nov 12, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss drinking the kool aid (never mind the cyanide) while the young and unemployed of Ireland are encouraged to emigrate by government economists determined to flatter their Troika stats. In the second half, Max interviews author and investor, Peter Schiff, about inflation in fraud as governments want a cut of financial crimes and the trickle down monetary policy ponzi scheme.
Published on Nov 12, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss drinking the kool aid (never mind the cyanide) while the young and unemployed of Ireland are encouraged to emigrate by government economists determined to flatter their Troika stats. In the second half, Max interviews author and investor, Peter Schiff, about inflation in fraud as governments want a cut of financial crimes and the trickle down monetary policy ponzi scheme.
Platinum Shortage Most in 14 Years
Article link
Platinum demand will exceed supply by the most since 1999 this year as more industrial purchases and investment outweigh slower buying by jewelers and carmakers, Johnson Matthey Plc (JMAT) said. Palladium’s shortfall will narrow as consumption falls faster than supply.
While car manufacturers will buy less platinum for the first time since 2009, more demand from chemical, electrical and glass industries and record investment will widen the shortage by 78 percent to 605,000 ounces, London-based Johnson Matthey said today in a report. Palladium’s deficit will narrow 36 percent to 740,000 ounces as less electrical, jewelry and investment demand outweighs the biggest ever purchases for metal used in catalytic converters and lower Russian stockpile sales.
The metals outperformed gold and silver this year on speculation improving economies will boost demand for materials used in car pollution control devices. Lower supply from South Africa because of mine strikes and cutbacks and falling sales from Russian government palladium inventories helped keep the commodities in a shortage since 2012. The deficits will probably continue next year, Johnson Matthey said. “We expect little or no serious recovery in South African supplies,” Alison Cowley, a market analyst at Johnson Matthey, said in an interview in London. For platinum, “we’re seeing good demand from most industrial applications...
Read more
Tuesday, November 12, 2013
Gerald Celente: France blocks Iran deal for Saudi arms sales
From RT
Published on Nov 12, 2013
Tehran has signed an agreement with the UN's atomic watchdog that gives it access to several of Iran's nuclear facilities, including the controversial Arak heavy water plant. But there was no progress in the latest round of talks on how to limit Iran's nuclear programme. France is widely blamed for stalling a breakthrough, while Israel lashed out at its allies for negotiating what it called a 'dangerous deal'. Gerald Celente, publisher from the Trends Journal, joined RT studio.
Published on Nov 12, 2013
Tehran has signed an agreement with the UN's atomic watchdog that gives it access to several of Iran's nuclear facilities, including the controversial Arak heavy water plant. But there was no progress in the latest round of talks on how to limit Iran's nuclear programme. France is widely blamed for stalling a breakthrough, while Israel lashed out at its allies for negotiating what it called a 'dangerous deal'. Gerald Celente, publisher from the Trends Journal, joined RT studio.
Texting & talking at 30,000 feet?
Wow only 12 years after 9/11 you will be able to make cell phone calls from a commercial airliner, even though you could have easily done so from flight 93 in 2001. Hmm.
Pink Star Diamond could fetch over $60 million in auction
Thu 07 Nov 13
Patti Wong, Chairman at Sotheby's Asia and Sotheby's Diamonds, says that the rare Pink Star diamond is "out of this world".
Could the NSA Prevent Tech Firms From Going Global?
Nov. 11 (Bloomberg) -- Egnyte co-founder and CEO Vineet Jain discusses
building a prism-proof cloud with Cory Johnson on Bloomberg Television's
"Bloomberg West."
Meltdown - The Secret History of the Global Financial Collapse
Just came across this 2010 documentary on the causes and results of the 2008 GFC, definitely worth watching.
Max Keiser on US/EU deal
From RT
Published on Nov 11, 2013
A single market for Europe and America means not just regulatory differences between the two sides will be removed - but it's claimed big business will also be able to overrule the will of governments. However, the EU is promised big benefits - of 119 billion euros annually.
Published on Nov 11, 2013
A single market for Europe and America means not just regulatory differences between the two sides will be removed - but it's claimed big business will also be able to overrule the will of governments. However, the EU is promised big benefits - of 119 billion euros annually.
Monday, November 11, 2013
Your Money Is Not Safe In US Banks
I take some issue with video, small US banks require the facilities offered by the "big" banks and hence all banks are interconnected. You really need to have your investment funds out of the banks - they pay you next to nothing for your deposits anyway, so why take the risk?
From GlobalResearchTV
From GlobalResearchTV
Leonard Melman - US economic recovery is the weakest since WW2
From Cambridge House
Published on Nov 9, 2013
Analyst Leonard Melman chats with Vanessa Collette about the state of the junior resource markets, what gold is (and isn't) doing and why the US recovery is so weak.
Published on Nov 9, 2013
Analyst Leonard Melman chats with Vanessa Collette about the state of the junior resource markets, what gold is (and isn't) doing and why the US recovery is so weak.
Is Silver Cheap Again?
With the Gold to Silver Ratio (GSR) heading back over 60:1 (gold is 60 times more expensive than silver) can we say silver is again "cheap" on a relative basis?
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