The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label bill gross. Show all posts
Showing posts with label bill gross. Show all posts

Monday, September 5, 2016

As central banks funnel fiat wealth to the 1%, gold is becoming the opposite trade to funnel wealth to the 99%

Last week, the world's 'Bond King' Bill Gross continued his message where he proclaimed that stocks and bonds were invariably crap, and that the only true wealth protection right now is in gold and silver.  And at the heart of this clarion call is the fact that he believes the central banks are now in an unavoidable abyss where they not only have to continue to print massive amounts of new money, but also buy up every possible paper asset simply to keep the system going.

But in doing this, the central banks have also had to reverse a trend they were following last year when a large portion of them were out buying physical gold on the open market.  And since the majority of them are now net sellers of the metal at the same time they are net buyers of paper assets, it is creating a unique dichotomy where instead of simply using their policies to funnel wealth to the 1%, they are also opening the opportunity to funnel wealth down to the other 99%.

Not only is gold an auspicious color, culturally, on the mainland, but the People‚Äôs Bank of China has long been a major hoarder of its bullion form. Less so, though, as central bankers from Beijing to Brasilia cut gold purchases - by 40% in the second quarter alone. 
While monetary authorities still hold almost 33,000 metric tons of the precious metal, that marks the third consecutive quarterly drop and the longest streak in five years.
And yet, the gold price is rising - up 24% so far this year - even as the biggest buyers back away. What gives? For central banks, waning demand seems partly technical in nature. Weak global exports mean China and other major nations have recorded fewer cash inflows of the kind that normally drive gold purchases. The bigger question, though, is whether G20 leaders are internalizing the three reasons why negativity about the global outlook is driving gold. 
One, of course, is genuine concern about a global financial system still working through the trauma of 2008. Bond guru Bill Gross is making the rounds to explain the second: how central banks, including the Federal Reserve, “all have mastered the art of market manipulation” at the same time the Ph.D. economists on which they rely for advice “have lost their way.” In other words, lingering fear from 2008 and too much money chasing too few investments are combining to pump up safe-haven assets, and excessively so. - Barrons
Central banks are now selling physical assets to protect the new fiat money they are printing which is then being used to buy overvalued paper assets that invariably profit the 1%.  But in doing this they have kept the price of gold down where it can be affordably purchased by the 99%, and where the masses outside the ponzi paper scheme can have a choice and option to both protect and grow their wealth as the bank's failing policies come to a climax.

Monday, June 13, 2016

Former Fed President announces at conference that all his rich friends are hoarding cash

Thanks to the power of the internet and youtube, virtually anything post-1990 can be found in some capacity within the ether.  And for those who did just a small amount of digging, they know that the last two Federal Reserve Chairman admitted they were clueless regarding the housing bubble and stock markets crashes of 2007 and 08.


Yet one regional Fed President did forecast the collapse, but was regularly ignored by his peers.  And now with Richard Fisher out of the halls of central bank power, he is once again warning of a crash, and said two weeks ago at the Strategic Investment Conference that he is not the only one believing that it is coming.
faltering-economy

Read more on this article here...

Friday, February 10, 2012

PIMCO makes huge bet that Fed will monetize MBS

The world's largest bond insurer PIMCO has decided that not only will the Fed eventually monetize Mortgage Backed Securities (MBS), but will have no choice in the action.  They believe it so much that they have borrowed $88 billion to buy MBS's above what they currently control.

That's putting your money where your mouth is for sure.

...has meant one thing and one thing only: betting on the Fed monetizing Mortgage Backed Securities or bust. Well, in January he just took it to a whole new level. The fund has now borrowed a record $88 billion, or -35% of its AUM, in cash (shows how much he things of the dollar) and used the proceeds (together with dumping European sovereign bonds from 18% to 11% of AUM) to bet on MBS which now stood at a whopping 50% of the entire portfolio - the highest since July 2009 when QE1 was in full force. However, in absolute dollar terms, due to the growth of the fund's AUM, the actual bet on MBS has never been bigger, and at $125 billion, represents the biggest notional bet ever made by PIMCO. Treasury holdings of just over $100 billion with an effective duration of 6.33 complete the epic bet that the fund has now put on QE3. - Zerohedge