What Could Possibly Go Wrong

Who Will Head the Fed? It Doesn’t Matter

"As leaders in the developed Western world become more authoritarian and move to confiscate wealth, most markets will actually respond very positively. Seems illogical, I know. But the facts of the matter are this: In times of war and potential confiscation of assets, stocks can become safe havens as money is pulled out of sovereign bond markets to be invested elsewhere. Commodities can take flight as investors begin to hoard tangible assets and portable wealth, and the real bull markets in precious metals truly unfold. My top recommendation right now: You can largely ignore the central bankers. Instead, keep both eyes on the leaders in Washington and Europe." Continue reading →

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Monetary Madness

"In the Forked Tongue category, wannabe Fed chief Janet Yellen has now eclipsed Fed Chairman Bernanke for the first prize. In her testimony before Congress this week, she says little or nothing about the 2008 debt crisis, federal deficits, European debacles, fiscal cliffs or any others which were among her predecessor’s favorite excuses for the unprecedented money printing she vows to pursue. Nor does she talk much about a weak economy. Instead, her new rationale is that, although the economy has improved, it hasn’t quite improved 'enough.'" Continue reading →

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The strangest bull market ever

"This bull market is really odd. The Dow and S&P 500 are near all-time highs. The Nasdaq is inching closer to 4,000 for the first time since the tech bubble did its best weasel impersonation and popped in 2000. Twitter (TWTR) surged on its first day of trading, despite the fact that it is not yet profitable. Snapchat has reportedly turned down offers to sell out to Facebook (FB) for $3 billion. This is a company that is not even generating sales yet. How are all those hot 'pre-revenue' Internet companies from 15 years ago doing? Are they still monetizing eyeballs? It looks like bears remain in hibernation and the bulls are ... wait for the Rage Against the Machine reference ... still on parade." Continue reading →

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Yellen Signals Continued QE Undeterred by Bubble Risk

"'I don’t see evidence at this point, in major sectors of asset prices, misalignments,' she said during her confirmation hearing to be the next Fed chairman. 'Although there is limited evidence of reach for yield, we don’t see a broad buildup in leverage, where the development of risks that I think at this stage poses a risk to financial stability.' Yellen signaled her determination to use bond buying to strengthen the economy and drive down the nation’s 7.3% unemployment rate. As benchmark U.S. stock indexes rose to records, she sought to dispel concerns from senators that the central bank’s policy is pumping up the values of equities and housing to an extent that jeopardizes market stability." Continue reading →

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The UK Recovery that Isn’t … the Market Recovery that Is

"What central bankers do is print money – digitally these days – and then transfer those digits to financial firms. Now the money finds its way into the financial economy, including, most importantly, the bond and stock markets. Once the money has swelled the financial markets, the 'real' economy should benefit. And then once companies are feeling better about a 'recovery' they will finally start to hire. This convoluted chain of events is simply illogical. It would be much simpler just to GIVE people money if central bankers really wanted stimulate job growth and create prosperity. But that's not what is happening because the object of central banking is to create money and maintain control of it." Continue reading →

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A Propaganda War

"We’ve long imagined that only the state and its central bankers can issue money. The Bitcoin protocol directly challenges that notion. Most importantly, unlike similar inventions before it, Bitcoin can only be stifled. It can never be stopped. Its importance is unequivocal. As Bitcoin continues to spread globally, we, as a community, must grapple with a very challenging and unsettling question of principle: should Bitcoin actively engage the apparatus of state? Bitcoin is getting political. Parties are forming. unSystem, through its Dark Wallet, has ostensibly drawn a line in the sand. There is much at stake. A battle is now on for the protocol and the hearts and minds of we, the 99%." Continue reading →

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Peter Schiff & Max Keiser talk of greatest Ponzi of our time

"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." Continue reading →

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Bill Bonner: Is QE Broken?

"Forget about tapering off. Instead, think of tapering on. How about this as a possibility? With no more ginned-up earnings from ultra-low interest expenses… no boost to top-line revenues from rising consumer spending… and no pricing power – corporate America’s earnings begin to fall. QE or no QE, stock prices fall. The Fed panics. It will be confronted with dropping asset prices and disinflationary (possibly deflationary) consumer prices. It will have to find a way to modify QE so that it does put dollars directly into the economy. Second, this new push – if it comes – may well send stocks soaring again. There’s nothing like free money to make investors happy. Third, the entire project is doomed." Continue reading →

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ObamaLoans Up by Almost 3 to 1

"The official goal of the Health Care and Education Reconciliation Act was to make college more affordable. How? By making loans to students. The effect has been to lure millions of students into long-term debt for the purchase of liberal arts degrees that do not lead to high-income jobs. ObamaLoans took loan-making decisions away from banks and placed this into the hands of federal employees at the Department of Education — bureaucrats with job tenure. The amount of student debt owed to the U.S. government in 2009 was $120 billion. Today, it is $675 billion. In July 2010, ObamaCare was passed. That’s when the loans began to multiply." Continue reading →

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