As we head towards the end of 2013, and the aptly anointed, year of Fed induced equity bubbles, economists, investors, and umpteen talking heads are all preparing to give their economic predictions for 2014. However, as we have seen many times over the years, some prognosticators have a much better track record than others, and it is these individuals which we will be focusing upon to hear their educated and insightful thoughts for the coming year.
On Dec. 18, as Federal Reserve Chairman Ben Bernanke prepares to pass the torch to underling Janet Yellen, the man responsible for QE 4EVA has initiated a small taper on the central banks bond buying program, and will remove $10 billion monthly from their toxic asset purchases.
*FED TAPERS QE TO $75 BLN MONTHLY PACE, STARTING IN JANUARY
*FED SAYS `FURTHER MEASURED STEPS’ POSSIBLE ON TAPERING
*FED: EXCEPTIONALLY LOW RATES UNTIL JOBLESS FALLS WELL PAST 6.5%
On Dec. 9, Major Ed Dames, former military intelligence officer and pre-eminent expert in the field of Remote Viewing, was a guest on the Coast to Coast AM radio show to talk about what he sees for America and the rest of the world in 2014. During the program, Dr. Doom, as Dames is often referred to, stated that 2014 will give the West a confluence of several serious events, leading up to a massive economic recession, and the end of the U.S. dominated petro-dollar.
There is an old adage that infers that a right not practiced eventually makes that right invalid. This illogical argument is normally used in the instances of the right to bear arms as most Americans have rarely carried sidearms in public view over the past 60 years.
However, another important right for our time that has been downplayed in the public eye as the Federal government has grown in power, is the 10th Amendment, or right of the states to nullify laws created by the government that are not theirs to impose according to the Constitution. And in the state of South Carolina, the legislature is now imposing their 10th Amendment right to nullify Obamacare as being unconstitutional under the auspices that states cannot be compelled to enforce Federal law per legal precedence.
At a time when Wall Street is experiencing the greatest accumulation of wealth in the history of mankind, just across the road in urban New York City, homeless children being left on the street is at the greatest numbers seen since the time of the Great Depression in the 1930′s.
According to the New York Times, the last time there was this many homeless children in New York City was during the days of the Great Depression. And the number of homeless children in the United States overall recently set a new all-time record.
As I mentioned yesterday, there are now 1.2 million public school kids in America that are homeless, and that number has gone up by about 72 percent since the start of the last recession. As Americans, we like to think of ourselves as “the wealthiest nation on the planet”, and yet the number of young kids that don’t even have a roof over their heads at night just keeps skyrocketing. There truly are “two Americas” today, and unfortunately most Americans that live in “good America” don’t seem to really care too much about the extreme suffering that is going on in “bad America”. In the end, what kind of price will we all pay for neglecting the most vulnerable members of our society? –Economic Collapse Blog
On Dec. 6, billionaire and asset manager Eric Sprott spoke on the current economic climate surrounding nations and central banks, and how the insolvency of governments is creating the biggest fear for the global financial system.
"King World News: What is your greatest fear going forward? What’s your worry?
Eric Sprott: My greatest fear is that government’s are broke. It’s so obvious, I mean, that’s the easiest call in the world. And to think that 1000 economists have signed up for this (The Inform Act), including 15 Nobel prize winning economists, is just tantamount to recognition of what the elephant in the room is."
Irish Finance Minister Michael Noonan confirmed that bank bail-ins will be used throughout Europe during a major conference of financial leaders on Dec. 3. In a meeting known as ‘The Future of Banking in Europe’, ministers from countries throughout the Eurozone voted on a number of programs that could be implemented to stave off the next round of bank crises, with direct confiscation of depositor accounts overwhelmingly finding approval.
On Nov. 27, just one day before America celebrates its annual Thanksgiving holiday, Bitcoin smashed through the $1000 USD barrier to have an inter-day value of $1020 USD. This steady climb of more than $500 USD since its volatile shakedown one week ago, is continuing to validate the popularity and strength that a stateless digital currency provides.
Within the past two days, two major events took place for Bitcoin that are pushing the crypto-currency more and more into the mainstream of acceptance. First, as the U.S. prepares for Black Friday and the holiday shopping frenzy, leading retailer Target issued a press release stating they will be accepting bitcoins for purchases of their products through the GYFT gift card platform.
The office of mayor in nearly every city in the world is manned by an official who is voted into office by the people they are expected to represent. Quite often however, like in the case of New York City’s Michael Bloomberg, these officials prove through their actions that their allegiance lies in the forwarding of personal agendas, or in many cases, pandering to those in power in the corporate world.
The most astonishing however, are those elected officials who outwardly make their allegiances known, and virtually spit in the faces of the common men and women who put them into office. Such is the case with London Mayor Boris Johnson, who recently wrote an op-ed for the British media where he stated that we should all be ‘thankful for the super-rich’, and instead of challenging them on their corrupt activities that siphon the wealth from the people and middle classes, we should hold them in some false idolatry as the benefactors of society who pay for, and keep the welfare flowing.
The quickest way to change the minds of investors when it comes to the viability of Bitcoin is to have the digital currency suddenly be accepted in the mainstream. That day has arrived in of all places Cyprus, where the the largest university in the Eurozone nation has officially announced that they will begin accepting Bitcoin as payment for the purchasing of tuition for their students.
A little over a year ago, China finalized anagreementwith Russia where they would be allowed to purchase as much oil as they desired from the global energy titan, and pay in currencies other than the Petrodollar. On Nov. 21, the 2nd largest global economy fired a new shot across America’s bow, and stands of the precipice of allowing oil to be bought on the futures market in Yuan, creating a direct conflict with dollar domination, and officially ending the petrodollar’s monopoly as the world’s sole reserve currency.
The Arab Spring provided a taste of what happens to sovereign leaders when the people reach a tipping point and have nothing left to lose. But in the West, assassinations are most often done through killings for hire. And whether assassinations are paid for by a Federally backed agency (CIA), or through the myriad of contract mercenaries like the former company Blackwater, more often than not, the ones ordering the killing are never touched in an investigation, or even along the money trail.
But perhaps there is now a third option, and that is the public funding of assassinations. In a new discovery found on a ‘dark web’ portal in the digital world of Bit Torrent, anonymous donors can offer bitcoin in a sort of ‘crowdfunding’ mechanism to hire killers to take out politicians, world leaders, and even, the head of the Federal Reserve.
Quantitative Easing has reached its 2013 goals with more than a month to spare. On Nov. 18, the Dow crossed over 16000 for the very first time, and the S&P 500 achieved 1800 as each exchange set new intraday records for stock prices.
The only numbers that matter today are 16000, 4000 and 1800: those are the Fed’s closing targets for the Dow Jones, the Nasdaq and the S&P. Following last night’s Chinese euphoria which saw the Shanghai Composite surge by 2.87%, or up 61.4 to just under 2,200 on renewed hopes for Chinese reform by 2020, the Fed’s price targets should all be quite easily achievable. –Zerohedge
In late 2008, and a little ways past the start of the Great Recession, the Federal Reserve decided to introduce a new form of money printing known as Quantitative Easing. In this new scheme to increase liquidity and attempt to stimulate the economy, the Fed began buying toxic assets from banks , while at the same time, allowing financial institutions to borrow money at near zero interest. This combination was expected to ease the consequences of the 2007-2008 credit crisis, and to allow for banks to begin capital investments to both corporations and small businesses.
However, in the four years that this program has been operational, and with the central bank trying four different QE models, the results of their efforts are in, and their effects on the economy have proven to be an utter failure.
The bursting of the 2007 housing bubble occurred because of many factors, but a primary reason for the collapse was due to the inability of Americans to afford the cost of rising mortgage payments. When the crash occurred, the average amount of household income being spent on mortgages and rents was at or above 40%, and it led to a wave of foreclosures that are still haunting the market to this day.
Yet thanks to Federal Reserve policies of Quantitative Easing, and the drive to re-create the housing bubble once again, history is now repeating itself as consumer costs for a residence, both in home ownership and in rents, are reaching that magical number of 40% just six years after the last crisis.
The 'community organizing' machine, otherwise known as the 21st century brownshirts, is trying hard to make Americans overlook the travesty that is Obamacare. So to appeal to hippies and millennials, Obama's new marketing tool in the state of Oregon is focusing on how psychedelic health care can be, and using a parody of the LSD generation as the persuader.
I guess it is no wonder that the study showing American adults having an IQ below an AVERAGE human might actually be true if this is how the government believes you can be manipulated into purchasing their corrupt insurance scheme.
This week, the Las Vegas based company, Robocoin, will be opening up five Bitcoin ATM machines that will have the capability of exchanging Canadian dollars for Bitcoins, and Bitcoins for Loonies. The move is huge for the emergence of Bitcoin as it continues to extend into the mainstream, and offer an alternative for consumers as distrust of the U.S. dollar and world’s reserve currency grows.
On Oct. 28, economist and former head trader for the Royal Bank of Scotland (RBS) issued a update on the state of the global financial system in which he declared that that every country is in a currency war frenzy, and that all institutions in the Western banking system are defaulting right now.
"What I am now going to state is going to shock you, the reason that every one in the west in involved in currency debasement/ currency manipulation is this: THE ENTIRE WESTERN BANKING SYSTEM IS DEFAULTING!!!! Yes you read that correctly, the west can no longer pay the piper and now they are going to debase their currencies in order to walk away form their debt obligations, making it easier for them to pay off their debt..."
A proverb from a wise book once stated, the love of money is the root of many evils. In the secular financial world, that same axiom is transposed into a secular understanding that reads, the control of money is the control of many evils.
Which is why many Americans across the country are beginning to experience the consequences of trust and reliance upon government agencies and financial institutions when it came to their retirement. In new programs being implemented across several states, underfunded pension funds are being re-evaluated due to the substantial losses incurred by reckless fund managers, and it is the recipients, not the pension fund managers, who are being taxed and penalized with massive payback demands for money they may have received above their monthly allotments.
Ever since the government agreed to raise the debt ceiling and give President Obama unlimited access to borrow money until February of next year, currencies around the world have reacted strongly on the expectation of an expansion to the U.S. money supply. Besides the Euro, Yen, and even the Yuan strengthening in the past 2 weeks, two other alternative measures have seen increased value, these being gold and Bitcoin.
Three days after President Obama fired up the debt machine to borrow $300 billion America cannot afford, economist Mark Faber sat in on CNBC’s Squawkbox to provide an assessment of the economy, and the future asset bubble the U.S. will become in the aftermath of Congress’s vote for unlimited debt ceiling. In his interview on Oct. 21, Faber announced that the Fed has cornered itself into a position where it has no possible exit strategy, and that QE-4-EVA is here to stay.
It is appearing more than more that the transfer of economic power from the United States to China is coming swifter than anyone suspected. In a stunning move on Oct. 18, a Chinese conglomerate purchased the Headquarters of Chase Manhattan bank (JP Morgan Chase), and its underground structures that include the world’s largest bank vault.
First there was Cyprus, where upwards of 60% of all bank deposits were confiscated to bail out private bank insolvency. Then came new initiatives by several countries, including Canada, New Zealand the the ECB, to take depositor funds and use them to bail out financial institutions during the next economic or monetary crisis.
And on Oct, 14, we have the IMF proposing a new 10% tax on all European depositors to help bail out the increasing sovereign debts that have only expanded in the Euro Zone since the credit crisis of 2008.
It has been a little over a week since the Obama administration leaked the news that the President intends to nominate Janet Yellen to replace Ben Bernanke as the head of the world’s largest central bank, and just yesterday, former Congressman Ron Paul weighed in on the announcement. As the chief firebrand against the Fed during his tenure in office, Paul’s assessment that Yellen is a virtual clone of the previous two central bankers is quite appropriate, and he states on Yellen’s nomination, ‘the possibility that the Fed itself could be responsible for the booms and busts of the business cycle would never enter her head’.
As the government shutdown moves into its second week, and the debt ceiling deadline grows ever closer, Congress is offering a new kick the can solution to fund the government for six weeks in an attempt to buy more time to resolve the budget and borrowing issues that have stifled the country. On Oct. 10, Speaker of the House John Boehner held a press conference to offer a new resolution that would provide clean funding to the government to cover debt obligations through Nov. 22, and to provide more time for the stalemated parties to come to an agreement on several major issues.
You want to know why the Democrats and President Obama are vehemently fighting against a shutdown or overhaul of Obamacare? Just ask Big Brother, who it appears now will be one of the primary recipients of new and inclusive information that will feed your activities into NSA and law enforcement databases, and remove another layer of privacy from the lives of every American.
As the pressures mount on day 3 of the government shutdown, President Obama is proving which masters he truly works for, and on the flip side, which agencies he refuses to answer to. Just 2 days after going on air to tell the American people that he is willing to call in Congressional leadership to hammer out a solution, the President backtracked after meeting with the heads of Will Street, and is now stating emphatically that he has chosen not to negotiate at all with Congress.
And due to these turn of events, one has to ask then, who is the real power over President Obama?
There is a rather significant segment of the population that is coming to the conclusion that the current government shutdown is actually good for the American people. Besides the obvious benefits to us from thousands of furloughs being made to the staff personnel of agencies like the IRS and EPA that intrude on individuals and small businesses, it now appears that the kingpin of privacy invasion is not immune to the shutdown, with over 70% of their employees provided with a temporary vacation.
Since 2008, the Municipal Bond markets have been decimated by a combination of lower returns and the potential for cities to go bankrupt. In fact, in June of this year, over $13.5 billion wasremovedfrom the Muni market, making this decline the second largest on record.
So in an attempt to get necessary cash to pay for both needed and discretionary projects, municipalities are looking at voluntary donations through online places such as Crowdfunding and Kickstarter. In Central Falls, RI for example, the city placed a fundraising project on Crowdfunding to try to pay for five no garbage cans in a park that is quickly becoming inundated with trash and debris.
It did not take long, but the first financial abuses in Obamacare are being reported on Sept. 25 in a new investigation conducted by the Treasury Inspector General for Tax Administration. In the report, a healthcare slush fund controlled by the Internal Revenue Service (IRS) is missing $67 million that the agency is unable to account for, and is a disturbing start to the multi-billion dollar program that has yet to even have its first patient processed.
On Sept. 25, trends forecaster Gerald Celente did an interview with Greg Hunter on the USA Watchdog webcast. In the interview, Celente spoke about the delayed war in Syria, and why the Fed chose to not initiate a tapering of their bond buying program during the recent FOMC meeting earlier this month. Celente also stated that the primary reason that the Fed held off tapering now was due to how interest rates reacted from just the rumors of a potential taper, and that it will most likely come early next year after the Christmas retail season is complete.
President Obama picked a good company man when he appointed Jack Lew to replace Timothy Geithner as the newest Secretary of the Treasury. And like the former head of America’s purse strings did during his time in office, Lew is choosing to use intimidation and threats over negotiation and fiscal planning in regards to the upcoming debt ceiling crisis.
Treasury now estimates that extraordinary measures will be exhausted no later than October 17. We estimate that, at that point, Treasury would have only approximately $30 billion to meet our country’s commitments. This amount would be far short of net expenditures on certain days, which can be as high as $60 billion. If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history.
Earlier this month, areportcame out that the NSA has full access to most smartphone operating systems through a backdoor programmed into their platforms during their creation. And while most users of Apple, RIM, and Samsung devices either knew about this intrusion, or relatively don’t care, the New York Police Department wants to be sure you are in synch with the surveillance state. On Sept. 18, the NYPD issued a letter calling for all Apple users to make sure to upgrade to the new iOS7 operating system, and the police even resorted to standing in front of Apple stores while shoppers purchased the new iPhone 5′s to make sure everyone got the message.
As the Western financial and banking systems fall steadily towards insolvency and a new credit crisis, the United Kingdom is turning towards Islam as a way to infuse new capital and new programs to stave off their own course of bankruptcy. By accepting Sharia law and the potential restriction of democratic freedoms, the UK appears willing to give up much of its financial sovereignty to be a major player in the world of Islamic finance.
The core definition of fascism is the melding of government and corporations, where laws and decisions are made to benefit banking and industrial entities over that of the people. And five years after the U.S. government voted to use taxpayer money to bailout out insolvent financial institutions, coupled with central bank QE policy which has benefited Wall Street over Main Street, 70% of Americans now believe our government has become a fascist ideologue in a recent poll.
Back in April of this year, the Obama administration instituted achangein how GDP is measured, increasing the number reported by more than 3%. This occurred after the economy had retracted for the prior 2 quarters, and at a time when the national debt was climbing to over 105% of annual GDP.
So as not to be outdone, it appears that the Eurozone has caught on to this idea of manipulating their own GDP numbers in an attempt to make state economies look much better than the vast recession most of the Eurozone is experiencing.