Investment/Trends

General Solicitation Ban Lifted Today – Three Things You Must Know

"It’s official- startups can now publicly advertise that they are seeking investments, but it does come with additional responsibilities of which all entrepreneurs must be aware. In nine out of ten conversations with startups on RockThePost (a startup investing marketplace I co-founded), entrepreneurs were not aware of what it means to generally solicit or the implications tied to doing so set forth by the Securities and Exchange Commission (SEC). Among them, a potential consequence of failing to follow the regulations is being banned from fundraising for a year. Even if unintentional, acting against promulgated rules could lead to a death sentence for your startup." Continue reading →

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Ex-World Bank Counsel: Lawlessness when USD Loses Reserve Status

"Karen Hudes, a former 20 year employee of the World Bank, contends the U.S. credit rating is on very dubious ground. Hudes says, 'This is actually an underhanded move because they know the U.S. dollar is going to lose its status as an international currency.' What would that look like to the man on the street? Hudes predicts, 'Prices would change on a daily basis. They would double. The number of families that would be employed would be in the minority . . . there would be lawlessness.' Join Greg Hunter as he goes One-on-One with former World Bank lawyer Karen Hudes." Continue reading →

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The Larger the Deficit, the Greater the Default

"There will be a day of reckoning, of course. There always is. But a majority of voters at that time will be sure to see to it that previous lenders will suffer the losses. There will be a Great Default. The lenders will cry: 'But you promised.' And the borrowers will cry: 'That’s life in the land of Keynes. In the long run, we’re all dead. You go first.' The big losers will be the suckers who lent Uncle Sam the money. The biggest lenders are those who trust the federal government to pay their retirement bills, including medical bills. Those who believe in the welfare state will be the biggest losers. They have believed in something for nothing. They will get left with a pile of IOUs and a note: 'Sorry, Charlie.'" Continue reading →

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Peter Schiff Was Right – ‘Taper’ Edition

"When Ben Bernanke announced that the Federal Reserve's Open Market Committee was going to continue its monetary expansion program it calls Quantitative Easing, almost everyone in the financial media was taken by complete surprise. According to the mainstream media, the non-taper 'surprised almost everyone out there.' Well it did not surprise me, nor anyone who had been paying attention to what I had been saying. As I said repeatedly over the past several months, the Fed knows that the appearance of economic health would evaporate if its stimulus were withdrawn, or even diminished." Continue reading →

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“The Fed Made It Possible For Many People To Leak It”

"Zero Hedge is publishing information from a tipster who explained how easy it was to get information into traders about the Fed monetary policy statement before it was officially released. This really sounds very similar to what happened at the BLS in the old days (the 1980s). I outlined how that went down, here. We are talking about big time money here, people made millions on the leaked information. They will also be tough to catch, especially if they used throw away phones. If no direct connection can be made between a leaker and a trader, then all a trader has to do is stick to his story that he bought on some kind of technical trading activity and who will be able to prove otherwise?" Continue reading →

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Quantitative Easing Worked For The Weimar Republic For A Little While Too

"Like any addict, the Fed is promising that they can quit at any time, but this month they refused to even start tapering their money printing a little bit. The behavior of the Fed is so shameful that even CNBC is comparing it to a drug addict at this point. Sadly, what very few people seem to understand is that what the Fed is doing is going to absolutely destroy confidence in our currency and in our financial system in the long-term. Yeah, many investors have been raking in huge gobs of cash right now, but in the long run this is going to be bad for everybody. We have now entered a money printing spiral from which there is no easy exit." Continue reading →

Continue ReadingQuantitative Easing Worked For The Weimar Republic For A Little While Too

Autonomy of the Federal Reserve Is Praised by Media

"With the 100th birthday celebration of the FED coming in late December, the media have begun serving as the FED’s 'Amen corner.' This Associated Press article on Janet Yellen is typical. Her main qualification is said to be her independence of the President. Is she liberal? Yes. Is she a dove on inflation? Yes. No matter. No other institution of our government gets a free ride the way the Board of Governors of the FED does. No other agency with its URL ending in .gov has such autonomy. No, not even the CIA. The CIA still must be funded by Congress. The FED funds Congress." Continue reading →

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The Big-Picture Economy, Part 3: Scarcity, Risk and Debt

"Scarcity of credit is the source of sound risk assessment and the discipline of aligning interest rates to risk and inflation. Manipulating rates to near-zero and opening the credit floodgates has incentivized everything sound economic policy avoids: moral hazard, speculation, leverage and reliance on marginal credit expansion for profits and 'growth.' 'Growth' that depends on manipulated interest rates and easy credit is a sand castle awaiting the rising tide; its destruction is assured." Continue reading →

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Some traders got Fed ‘no taper’ decision news early

"The Federal Reserve says it is contacting news organizations to discuss the rules surrounding lock up procedures and the release of market moving information from the Federal Reserve's headquarters in Washington. But the leading expert on millisecond level trading says he is focusing his attention on a certain type of news organization – those that offer so-called 'low latency' services to feed market moving data at high speeds directly into computerized trading systems. A key question is whether or not any organization transmitted information out of the lockup room and into its own computer system before 2 p.m." Continue reading →

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