Yearly Archives: 2014

On The Fed’s (Tentative) End to Bond Purchases in October

"The current plan is that–so long as the economy doesn’t crash–the Fed will taper to $25 billion in August, then $15 billion in September, and then wipe out the remaining $15 billion in October. Here’s a chart showing the behavior of the S&P500 versus the monetary base. It used to be the case that the stock market bounced around with little relation to the Fed’s asset purchases. But since early 2009 and the introduction of QE programs, the stock market and the Fed’s bond buying have moved in virtual lockstep. Let me ask you this: Do you think the S&P should be hitting all-time highs because of how great the underlying economic fundamentals have been the last few years?" Continue reading →

Continue ReadingOn The Fed’s (Tentative) End to Bond Purchases in October

Federal Reserve likely to end QE stimulus program in October

"The Federal Reserve is set to end its economic stimulus program in October, bringing to an end the controversial five-year-old scheme even as officials said there were signs that the US economy was still in trouble. Officials have been winding down their monthly purchases of Treasury bonds and mortgage-backed securities since January, but had not set an end date for the scheme. Controversial from the outset, QE was designed to keep long-term interest rates down and encourage investors to back stocks or corporate debt in order to stimulate the economy. Stock markets have hit record highs under QE yet the unemployment rate remains high and there are continuing signs of weakness." Continue reading →

Continue ReadingFederal Reserve likely to end QE stimulus program in October

Corporate Bonds Are The IEDs Of Monetary Central Planning

"The Fed’s sustained, heavy-handed financial repression has generated the greatest ever scramble for yield, and it is now entering its seventh year. Consequently, speculators and bond fund managers are all in the same side of the boat. And all but the most intrepid traders are scared to death to short the Fed, fearing that any day it might uncork yet another round of bond market repression. So we have basically a highly artificial one-way market in corporate bonds—both investment grade and high yield. Very recently yields in the latter touched an all-time low of 4.87%, meaning that after inflation and taxes there is virtually no room for losses on securities that are called 'junk bonds' for a reason." Continue reading →

Continue ReadingCorporate Bonds Are The IEDs Of Monetary Central Planning

My Email Debate with a Columnist Who Wants Feds To Arrest Cancer Patients

Kansas Star columnist Mary Sanchez wants the federal government to arrest suffering cancer patients using marijuana for pain relief and lock them up in cages. Granted, she’s not likely to admit it, but I think I stand on pretty solid ground making that assumption because she hates nullification. She said so in a recent column…

Continue ReadingMy Email Debate with a Columnist Who Wants Feds To Arrest Cancer Patients

Gerald Celente on Marijuana Legalization and OccupyPeace

"We're initiating a project called OccupyPeace.us. And it's based on three words: No foreign entanglements. Those are the three words spoken by the Founding Fathers of this country. We want to rebuild America and the way we want to do it is we're working to build an OccupyPeace movement based on no foreign entanglements and we're working to push the United States more in line with a direct democracy like Switzerland. You want to go to war? Let the people vote. You want a defense budget? Let the people vote on it. You want to bail out the banks? Let the people vote. If we can bank online we can vote online. It could be more open than any other system in the world." Continue reading →

Continue ReadingGerald Celente on Marijuana Legalization and OccupyPeace

23 and Counting: New York Nullifies Unconstitutional Federal Marijuana Ban

ALBANY, NY – New York officially became the twenty-third state to effectively nullify the federal ban on medical marijuana after Gov. Cuomo signed historic legislation into law allowing for sick patients to access cannabis as a treatment option last Monday. Program Bill 57 passed through the New York state legislature on Jun. 20. The law…

Continue Reading23 and Counting: New York Nullifies Unconstitutional Federal Marijuana Ban

Bulgarian Pres. Blames ‘Lack Of Faith In Institutions’ For Bank Runs

"Bulgarians’ lack of faith in institutions sparked runs on two banks and triggered the worst financial crisis in 17 years, the nation’s president said. 'Let me make this very clear: there is no banking crisis in my country, but there is a crisis of confidence,' Rosen Plevneliev said today. With low trust in institutions, rumors, attempts at destabilization and speculative attacks can 'create a panic,' the president said. The central bank blames an 'organized attack' of 'criminal actions' for the run on First Investment Bank. Corporate Commercial Bank lost deposits because of a dispute between a majority shareholder and a large depositor, Capital newspaper reported June 18, citing unidentified people." Continue reading →

Continue ReadingBulgarian Pres. Blames ‘Lack Of Faith In Institutions’ For Bank Runs

The Curious Case Of The Bulgarian Bank Runs

"Because of the extent of the fraud, BNB say that nationalizing CorpBank is not an option – it describes it as 'a bottomless barrel'. The Bulgarian Finance Ministry estimates that the cost of the deposit guarantee will raise the public deficit from 1.8% of gdp to 3%, putting it at the Maastricht treaty limit. This will be seen as a considerable disappointment in Brussels, which in the recent European Semester report advised the Bulgarian government not to allow the deficit to rise any further. And it raises considerable questions about the capability of the BNB to supervise banks effectively. Only a month ago CorpBank was given a clean bill of health. Now it is bankrupt because of a major fraud." Continue reading →

Continue ReadingThe Curious Case Of The Bulgarian Bank Runs

German Gold Stays in New York in Rebuff to Euro Doubters

"Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire $141 billion gold reserve home from New York and London. Now, after the Free Democratic Party, which flirted with bringing the gold home, dropped out of Chancellor Angela Merkel’s coalition and was replaced by the Social Democrats, the government has concluded that stashing half its bullion abroad is prudent after all. Ending talk of repatriating the world’s second-biggest gold reserves is a rebuff to critics including the anti-euro Alternative for Germany party, which says all the gold should return to Frankfurt so it can’t be impounded to blackmail Germany." Continue reading →

Continue ReadingGerman Gold Stays in New York in Rebuff to Euro Doubters