Money For Nothing – Page 28

Here’s Why Bernanke is Clueless…

Post author:The Freedom Watch Staff
Post published:June 24, 2013
Post category:Network Archives

"The only place to hide last week was in cash – all thanks to the Fed. Last Wednesday, it updated its forecast, saying it expects economic growth to improve. If its forecast is correct, the Fed expects to conclude its bond purchase program, known as QE, by mid-2014. But there’s a big problem with the Fed’s forecast… The Fed basically said it will end its bond purchase program if its economic forecast becomes a reality. The market is reacting as if the Fed will be right this time. That’s a huge assumption to make because the Fed’s forecast is almost always wrong." Continue reading →

Bond Market Sell-Off Causes Stress in $2 Trillion ETF industry

Post author:The Freedom Watch Staff
Post published:June 21, 2013
Post category:Network Archives

"A wave of selling caused many exchange traded funds to tumble below the value of their underlying assets as a bond market sell-off caused stress in the $2 trillion ETF industry. Emerging-markets ETFs were among the worst affected, as investors took fright that the end of Federal Reserve monetary easing would lead to outflows from developing countries. The selling also caused disruptions in the plumbing behind several ETFs. Citigroup stopped accepting orders to redeem underlying assets from ETF issuers, after one trading desk reached its allocated risk limits. State Street said it would stop accepting cash redemption orders for municipal bond products from dealers." Continue reading →

Bill Bonner: All Hell Breaks Loose!

Post author:The Freedom Watch Staff
Post published:June 21, 2013
Post category:Network Archives

"The Dow fell -353 points. Gold lost $87 an ounce. What does this tell us? It shouts a warning: Ben Bernanke is losing control. He desperately wants inflation. He's getting deflation instead. He wants low interest rates; yet rates are rising. Bernanke is now getting the worst kind of deflation – sluggish price increases against a backdrop of rising interest rates. This is the exact opposite of what the Fed wants... and needs. Its strategy is to hold interest rates down while it pushes up consumer and asset prices. Instead, the debt gets heavier as yields rise. Backs ache. Legs buckle. Nerves crack." Continue reading →

Don’t Get Fooled Again — It’s Time to Dump Bonds Now

Post author:The Freedom Watch Staff
Post published:June 21, 2013
Post category:Network Archives

"The bond-market bust was a long time coming, if you’ve read my columns this year and last. But some investors — even big-time mutual fund managers — got caught flat-footed. Why? Just like real estate in the 2000s and tech stocks in the late 1990s, those bull markets were artificially extended for years, and those who got out early lost out on some of the biggest gains. But make no mistake. The real problem is what I’ve been harping on for several months: The bond market is a gigantic bubble, having been wildly inflated by too much cheap, easy money from the world’s central banks." Continue reading →

Ron Paul’s Choice for Fed Chairman James Grant on Gold & Silver’s Latest Sell-Off

Post author:The Freedom Watch Staff
Post published:June 20, 2013
Post category:Network Archives

"As gold & silver prices tumble to 2.5-year lows in a wake of panic selling following a disappointing Fed Outlook & statement by Bernanke, as well as less-than-ideal Chinese economic data, Kitco News speaks with James Grant, editor of "Grant's Interest Rate Observer" about the carnage in gold & silver markets. In a previous interview, (then U.S. Congressman) Dr. Ron Paul told Kitco News that he would appoint Grant as Fed chairman; hear what Grant would do differently than Bernanke to help the US economy. Kitco News, June 20, 2013." Continue reading →

Central Bank Injects Cash After China Money Rates Jump to Records

Post author:The Freedom Watch Staff
Post published:June 20, 2013
Post category:Network Archives

"The People’s Bank of China added 50 billion yuan ($8.2 billion) to the financial system today after a cash squeeze drove money-market rates to record highs. The sum was supplied to a single lender through 'targeted liquidity operations' and more banks were in talks to obtain financing. A PBOC press official said he was unaware of the matter. Bank of China Ltd. announced on its microblog that it made all payments on time today and has never had a capital default. A spokesman for Industrial & Commercial Bank of China Ltd. declined to comment on whether the lender received any financing from the central bank." Continue reading →

They Think You’re Naïve…

Post author:The Freedom Watch Staff
Post published:June 18, 2013
Post category:Network Archives

"When it comes to the financial markets, Bernanke is, without a question, the most powerful man in the world. On May 22, he suggested that the Fed may soon reduce the size of its money-printing program, known as QE. Since then, the market has experienced a small meltdown. More than $2.5 trillion has already been erased from the value of global equities. Some analysts think the Fed announcing the end of QE would be a good thing. They think it would indicate the Fed is confident the economy is strong enough to operate without stimulus. The only problem is the Fed is thinking about ending QE for a reason that has nothing to do with healthy economic growth." Continue reading →

Obama Says Bernanke Has Been at Fed ‘Longer Than He Wanted’

Post author:The Freedom Watch Staff
Post published:June 18, 2013
Post category:Network Archives

"President Barack Obama said Federal Reserve Chairman Ben S. Bernanke has stayed in his post 'longer than he wanted,' one of the clearest signals the central bank chief will leave when his current term expires next year. 'Ben Bernanke’s done an outstanding job,' Obama said in an interview with Charlie Rose that aired yesterday on PBS, when asked about nominating him for another term subject to Senate approval. 'He’s already stayed a lot longer than he wanted or he was supposed to.'" Continue reading →

Bond bubble threatens financial system, Bank of England director warns

Post author:The Freedom Watch Staff
Post published:June 17, 2013
Post category:Network Archives

"A key Bank of England policymaker has warned of the risks to global financial stability when 'the biggest bond bubble in history' bursts. In a wide-ranging testimony to MPs, Andy Haldane, Bank of England director of financial stability, admitted the central bank's new financial policy committee is taking too long to force banks to hold more capital and appeared to criticise the bank's culture under outgoing governor Sir Mervyn King. Haldane told the Treasury select committee that the bursting of the bond bubble – created by central banks forcing down bond yields by pumping electronic money into the economy – was a risk 'I feel acutely right now'." Continue reading →

On This Day in 1933

Post author:The Freedom Watch Staff
Post published:June 15, 2013
Post category:Network Archives

"You were considered a hoarder and a slacker if you still resisted turning over your gold to the government. Roosevelt had only been in office for 101 days and while there was broad bipartisan support for inflationary policies in Congress, it’s safe to say that most of those who voted for FDR never expected him to confiscate private holdings of gold coins, bullion, and certificates. Roosevelt called the measure a temporary one (it wasn’t), and he followed it up by invalidating gold clauses in private contracts that obligated payment in gold dollars, which had the effect of devaluing the assets of bond and contract holders." Continue reading →