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 qe. Show all posts
Showing posts with label qe. Show all posts

Wednesday, March 29, 2017

Rising inflation could be the catalyst to finally send gold price beyond ability for market manipulation

At long last real inflation has emerged in the U.S. economy, with even the Federal Reserve acknowledging it between the lines as they rush to enact up to four interest rate hikes before year's end.  And for gold investors who have suffered through central bank and Wall Street manipulation of the metal's price since the advent of ZIRP and QE, inflation is the best friend of gold and silver and likely to be the catalyst for the next strong leg up in this Bull Market.

Gold is poised to rally to levels last seen four years ago as rising inflation and negative real interest rates combine to boost demand, according to Incrementum AG, which says that the precious metal may be in the early stages of a bull market. 
Prices may climb to $1,400 to $1,500 an ounce this year, said Ronald-Peter Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101.5 million). Spot bullion -- which was at $1,249 on Wednesday -- last traded at $1,400 in September 2013. 
Gold has climbed this year as investors weigh risks that President Donald Trump won’t be able to implement his agenda, adding to uncertainty surrounding European elections and the Brexit process. Against that backdrop, investors are on alert for signs of faster inflation, with the Federal Reserve’s preferred gauge jumping recently to near the bank’s target. Policy makers raised rates this month, and kept forecasts showing two more hikes in 2017. - Bloomberg

Monday, July 4, 2016

What if instead of buying bonds, the Fed and other central banks monetized gold?

The only individuals who actually believe that zero percent interest rates, massive money printing (quantitative easing), and bond buying have worked since the Credit Crisis of 2008 are the mainstream stock hawkers on CNBC, and the central banks who have placed their reputations on the line in support of their monetary policies.  But for economic and financial analysts who look at the real data, and not on broken models used to support their already believed failed premises, central bank interventions have harmed the overall economy far more than it has helped in the long run.

So following the Brexit vote, the potential breakup of the EU, and financial institutions in Italy and Germany teetering on collapse, it should come as no surprise that the Fed and the ECB are rushing in the discuss the creation of new and even bigger money printing schemes, and the same bond buying that accomplished little more than siphoning the wealth of their countries into the hands of the few.

But what if the Fed and ECB did something different this time?  Back in April, an analyst with the world's largest Bond insurer proposed that instead of buying bonds this next time, the central banks chose to buy and monetize gold, and at a price so high that it would actually be beneficial to sovereign nations who own the precious metal, and of course to the smart people who have been accumulating it over the past decade.

Bassman says that the Fed should "emulate a past success by making a public offer to purchase a significantly large quantity of gold bullion at a substantially greater price than today’s free-market level, perhaps $5,000 an ounce? It would be operationally simple as holders could transact directly at regional Federal offices or via authorized precious metal assayers." 
What would the outcome of such as "QE for the goldbugs" look like? His summary assessment: 
A massive Fed gold purchase program would differ from past efforts at monetary expansion. Via QE, the transmission mechanism was wholly contained within the financial system; fiat currency was used to buy fiat assets which then settled on bank balance sheets. Since QE is arcane to most people outside of Wall Street, and NIRP seems just bizarre to most non-academics, these policies have had little impact on inflationary expectations. Global consumers are more familiar with gold than the banking system, thus this avenue of monetary expansion might finally lift the anchor on inflationary expectations and their associated spending habits. 
The USD may initially weaken versus fiat currencies, but other central banks could soon buy gold as well, similar to the paths of QE and NIRP. The impactful twist of a gold purchase program is that it increases the price of a widely recognized “store of value,” a view little diminished despite the fact the U.S. relinquished the gold standard in 1971. This is a vivid contrast to the relatively invisible inflation of financial assets with its perverse side effect of widening the income gap. - Zerohedge
Besides allowing central banks with gold to receive funds to help payoff debt obligations, it would also allow countries who got rid of their gold decades before to start accumulating it once again, perhaps in preparation for a return to the gold standard in their currencies when the Great Reset eventually happens in the global monetary system.

Either way, all signals are pointing towards ownership of gold, both in the hands of individuals and in the hands of sovereign nations and central banks.  And the only obstacle will be how likely are central bankers to be willing to admit their failures in the current credit based Keynesian system, and if they are willing to really do everything that is necessary to escape the monetary crisis that is now upon us, rather than whitewashing it with more debt as they did in 2011.

Wednesday, June 29, 2016

Following Brexit, expectations for new rounds of QE could see gold have more $100 per day moves

The overall effects of the UK voting to leave the European Union have yet to be fully determined, but so far they have actually been little more than a barometer to the global changes taking place in which people are rejecting globalism and desiring to take back local sovereignty within their countries.

However, central banks are probably ecstatic for the Brexit event since it will soon be used as the excuse they needed to begin new rounds of quantitative easing (QE) after refusing to acknowledge just how bad economic conditions truly are.

“The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said. 
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.” - Marc Faber, Bloomberg News
When the news of the Brexit vote hit the airwaves on late Thursday/early Friday, gold instantly shot up $100 per ounce to its highest gain in a single day in history, and back to its highest levels in three years.  And when you couple in the fact that many of the big name investors and hedge funds were buying gold in exorbitant amounts prior to the vote in the UK, the indicators backing a resurgence of gold go far beyond Brexit, and signal deteriorating conditions in the monetary and economic arenas.
“This is going to be a huge crisis. Alan Greenspan was on CNBC saying this is the worst thing he has seen in his career. He’s not talking about what has already happened. He’s talking about what is ABOUT to happen. He understands how screwed up the economy is because he helped screw it up. . . . One of these days, you are going to see gold moving up at $100 clips routinely when people really perceive the dangers in the fiat world and come to grips with how much money these central banks are going to PRINT…” - Silver Doctors

Saturday, June 11, 2016

One of the world's top market strategists calls for gold to skyrocket as Fed backed into a corner

Michael Belkin, one of the world's top market strategists who consults for the highest net worth money mangers in the U.S., Europe, and Asia, spoke in an interview where he is forecasting gold to skyrocket well past its all-time high because the Fed is backed into a corner where they will soon look towards new quantitative easing, rather than the hiking of rates.

In his 20 minute interview, Belkin believes that gold is barely into the first inning of its new bill run, and reaching its 2011 levels of $1940 should be just the start of where it eventually ascend to.

Why Gold & Silver Will Skyrocket To New All-Time Highs 
Michael Belkin: “Yellen is going to reverse course and people are going to be flooding out of the U.S. dollar, which was just a momentum play that has faded and isn’t working anymore.  So gold is going to get a currency-kicker and eventually a QE-kicker.  We are only in inning number one (of a nine inning game).  And back to the all-time highs for gold and silver, that may sound ridiculous but I think that’s just the first target.” - King World News

Thursday, April 21, 2016

World's largest bond insurer economist suggests central banks should use QE to buy and monetize gold

Quantitative easing (QE) has been the primary tool, along with zero percent interest rates, for central banks to increase liquidity and to try to stimulate the economy over the past four years.  And with that money expansion they have purchased sovereign bonds, municipal bonds, mortgage bonds, and even stocks.

But the one thing they haven't bought is gold, which ironically is the most sound form of money available.

Yet as these central banks run out of assets to purchase, as seen by the incredible deflation that began to surface in nearly all assets in the middle of last year, an economist with the world's largest bond insurer has suggested that it is time for central banks to not only buy gold, but to also monetize it in their QE purchases.

In "Rumpelstiltskin at the Fed", Bassman goes down the well-trodden path of proposing Fed asset purchases as the last ditch panacea for the US economy, however instead of buying bonds, or stocks, or crude oil, Bassman has a truly original idea: "the Fed should unleash a massive Fed gold purchase program that could echo a Depression-era effort that effectively boosted the U.S. economy." 
Bassman says that the Fed should "emulate a past success by making a public offer to purchase a significantly large quantity of gold bullion at a substantially greater price than today’s free-market level, perhaps $5,000 an ounce? It would be operationally simple as holders could transact directly at regional Federal offices or via authorized precious metal assayers." 
What would the outcome of such as "QE for the goldbugs" look like? His summary assessment: 
A massive Fed gold purchase program would differ from past efforts at monetary expansion. Via QE, the transmission mechanism was wholly contained within the financial system; fiat currency was used to buy fiat assets which then settled on bank balance sheets. Since QE is arcane to most people outside of Wall Street, and NIRP seems just bizarre to most non-academics, these policies have had little impact on inflationary expectations. Global consumers are more familiar with gold than the banking system, thus this avenue of monetary expansion might finally lift the anchor on inflationary expectations and their associated spending habits. 
The USD may initially weaken versus fiat currencies, but other central banks could soon buy gold as well, similar to the paths of QE and NIRP. The impactful twist of a gold purchase program is that it increases the price of a widely recognized “store of value,” a view little diminished despite the fact the U.S. relinquished the gold standard in 1971. This is a vivid contrast to the relatively invisible inflation of financial assets with its perverse side effect of widening the income gap. - Zerohedge

Friday, March 11, 2016

ECB head Mario Draghi validates that markets are tied to interventions, not fundamentals

On March 10 the European Central Bank (ECB) issued its highly anticipated policy announcement, and the shift from simply watching market action from the shadows is now over.  This is because ECB head Mario Draghi rocked the financial world with a Euro denominated bazooka, and proved once again that markets no longer function on fundamentals, but instead on credit based interventions.
Although not quite going full tilt into negative interest rates, the ECB did lower rates at its primary lending facility to zero from 0.05%, and dropped its deposit rate 10 bps to -0.40 which is an indication the central bank wants Europe’s financial institutions to borrow and spend rather than borrow and save.

Read more on this article here...

Monday, February 29, 2016

Got Karatbars? Is the Fed purposely trying to collapse the system to allow a return to the gold standard

One of the current memes going around our culture is to ask if someone is 'smarter than a 5th grader' when a person or institution's opinions, analysis, or views are so illogical that one has to question the educational level of the speaker.  And in our current financial system, that is in complete opposition to how individuals are forced to deal with debt and money, there has always been alot of head shaking when central banks say they must create more debt to be able to deal with their current debt.


But what if the move starting in the 1990's to accelerate the creation of debt worldwide was on purpose, and for the exact reason to both collapse the system and allow for the re-emergence of a gold standard?  This is exactly what was proposed during the 1960's in a Nobel Prize winning paper that offered a theory that the world should go to a completely fiat monetary system in order to expand the money supply to astronomical levels where the money could be used to create technologies, infrastructures, and growth that couldn't be achieved under a limited gold backed system.  Then when debt levels and loss of confidence in that fiat money had reached its apex, a collapse would occur which would allow nations to more easily return to the gold standard, with the added benefit of 40-50 years of construction, innovation, and infrastructures already having been built.

Think this is crazy or insane?  Well according to precious metals analyst and economist Bix Weir, a regional Fed office has been following this blueprint now for decades.

So, can the financial powers keep manipulating the U.S. dollar forever? Weir say, “I think they can, they have and they will as long as it is in the United States’ advantage.  It’s been our advantage to run this un-backed fiat system.  We have been the world’s reserve currency for a long time.  Now, we are the largest debtor nation in the world.  Now, we have all these problems with currencies.  It’s turning into a place where it is no longer to our advantage.  With the click of a mouse, we can end this game.” 
It won’t just be a debt default, and Weir explains, “It will be a default on our monetary system. Yes, it is a default on our debt, but it won’t be just the U.S.  It will be everybody, and it will be blamed on the banks.  They have set it up that way.  They gave the banks enough rope to hang themselves.  What it’s going to do is get rid of all this debt.  The biggest problem in the world now is debt.  Some people are going to be very mad at the U.S.  People are going to be very nationalistic, and it’s already started in the U.S. with Trump.  We will become nationalistic, and we will shut our borders when this crash happens.  This is the only way to get rid of the mess, and you and I know this mess is completely out of control. . . .There is no way out, and the idea was to never pay the debt.” 
Weir also adds, “I talk about this a lot, and this comes directly from the Federal Reserve Bank of Boston, and it comes from a 1960’s Nobel Prize winning paper, and it says the only way to get back to a gold standard is to print money in the largest amounts as you can—to infinity and collapse the system, and then go back to the gold standard. That’s what they’ve been doing.” - USA Watchdog
Perhaps it is critical that we look at the past seven years of zero interest rates and tens of trillions in quantitative easing to realize that there was a method to this madness.  By this, the Fed had to ensure that most of the new money didn't trickle down to the general economy to cause massive price inflation, while at the same time funding projects that would use this fiat currency in ways that would leave a legacy for both America and the world when the financial system finally shuttered and collapsed under its own 'debt weight' (yes pun intended).

China in particular has done this to perfection, using the fact that both Europe and the United States were creating tens of trillions of dollars and euros in new debt to print their own excess money supply in Yuan which they used to update and modernize nearly the entire country with infrastructure and technology that will remain when the global financial system fails.

Either way, central banks appear to know that the current monetary and financial systems are doomed to fail, and perhaps because this was their intention from the beginning.  And as we come closer and closer to that day of reckoning, where the trigger point comes when a critical mass of people lose complete confidence in fiat money, central banks know that the system that will come out of the collapse will be a return to the form of money that functioned very well prior to this for over 5000 years.

So if it is not a question of when or what the new monetary system will be when it takes eventually takes place, how can you protect yourself and your wealth that is denominated in the same fiat currencies that are expected to fail only to be replaced by a gold standard?

You can protect your wealth with a company called Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Thursday, February 18, 2016

New Monopoly game may be signalling bankers ‘ultimate’ goal

Is it on purpose, or just simple coincidence that the newest version of the classic game Monopoly comes out at a time when academics and central bankers are calling in unison for the end of cash?  Because the new Monopoly: Ultimate Banking version is one that is played without cash, and is completely electronic where property, wealth, and taxation is controlled from a central point using a form of debit card as the interface.
Monopoly Ultimate Banking
After nearly a decade of zero interest rates and tens of trillions in quantitative easing, the economy as a whole has not recovered, and is in fact far worse in many sectors than just before the 2008 credit collapse.  And as we have seen in Japan, Switzerland, and Sweden so far, and are not far away from negative interest rates being implemented in the rest of Europe and the United States, the compliment to fulfilling these last resort programs is the ability to regulate all money through a bank, and through electronic systems.
Read more on this article here...

Monday, October 12, 2015

Got Karatbars? Bank of America now changing tune and forecasting gold breakout in 2016

The Fed deciding back in September not to raise interest rates is proving to be a watershed moment for the markets as the most recent economic data has validated their choice to hold off on raising rates for the foreseeable future.  And instead of simply jawboning that interest rate hikes are coming, which has been their M.O. for almost a year now, chances are more likely that the U.S. central bank will be forced to implement a new round of quantitative easing in the face of a new recession that is probably already in our midst.

And in a rather interesting turn of events, Bank of America over the weekend just put out a new forecast in which they not only project will be beneficial towards gold, but does the unthinkable and is questioning the Fed's credibility to be able to deal with the economic turmoil that is coming.

Neither deflation nor inequality has hindered the bull market on Wall Street in recent years. On the contrary, QE policies to end deflation & spark employment have been very beneficial to asset prices. But now: 
The perception of unfair globalization, gilded elites & inauthentic politicians is leading to a rise in both populist politicians (Trump, Sanders, Corbyn) and parties (SNP, Syriza, Podemos, National Front) and… 
…calls for the Fed to raise rates to boost the elderly’s return from saving are becoming louder… 
…and the fragile improvement on Main Street is threatened by a stalled global economy in 2015. 
If the secular reality of deflation & inequality is intensified by recession & rising unemployment, investors should expect a massive policy shift in 2016. Seven years after the west went “all-in” on QE & ZIRP, the US/Japan/Europe would shift toward fiscal stimulus via government spending on infrastructure or more aggressive income redistribution. And seven years after China went “all-in” on fiscal stimulus, a shift toward QE/rates/FX to support activity would be likely in the east. 
And finally, getting to the point of this post, this is how Hartnett says investors should trade this "massive policy shift": 
…buy TIPs, gold, commodities, Main Street not Wall Street, China small cap 
This new policy mix (which would be in response to recession & Quantitative Failure) would be most positive for TIPS/gold/commodities, for Main Street rather than Wall Street plays (e.g. mass retailers versus luxury), and for Chinese small cap. These are the assets bears should accumulate if markets head to new lows. - Zerohedge
Interestingly as well, this assessment about gold was corroborated by Australia's largest investment bank over the weekend.
Finally, we most certainly agree that the catalyst to unleash the "endgame" cycle will be some "combination of a major accident in several asset classes and/or sharp global slowdown." But long before that even, keep an eye on gold: having provided a tremendous buying opportunity for the past 4 years because for some idiotic reason "conventional wisdom" decided that central banks are in control, have credibility and can fix a problem they created and make worse with each passing day, soon the global monetary debasement genie will be out of the bottle, and not even the entire BIS trading floor will be able to suppress the price of paper (as physical gold has not only decoupled from paper prices but long since departed on a one-way trip to China) for much longer.


So with interest rates not expected to be raised until at least 2017 by some forecasters, and the likelihood of a new and more massive QE program being the only alternative in the face of a new recession, how is the best way to protect your wealth from a new paradigm of dollar devaluation, and the chance that the U.S. currency may lose even more ground against the rise of a new gold backed global reserve?


The answer lies in a company called Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Sunday, October 11, 2015

Group of 30 global central banks admit QE failed and did nothing for economies

It must be finally getting crunch time for the primary central banks around the world because on Oct. 10, the G30 group of global money printers admitted in a detailed report that the tens of trillions of dollars, euros, yen, and other currencies they have infused into the system has done absolutely nothing for local economies, and instead has accomplished what alternative economists stated would happen from the very beginning…
Create asset bubbles, un-payable debt, and assure that there would be no sustainable growth.
In addition to their ‘coming to Jesus’ moment, which may have occurred in September when the Fed found themselves unable to raise interest rates even a quarter point, the group of central banks are seeking to blame sovereign governments for failing to direct their printed monies where they would be most appropriate, and are deflecting their own failures elsewhere despite the fact that central banks like the Fed and ECB are outside of government controls to begin with.

Read more on this article here...

Thursday, September 24, 2015

Stock market and corporate earnings might have been final straw for Fed’s rate decision

Since the Fed made its shocking no-call last week on its decision whether to raise interest rates, analysts have been not only questioning the true state of the economy, but also have been insinuating that the central bank’s credibility may be completely shot.  But as we look at new data coming out on corporate earnings, especially those on the S&P 500, their declines year over year (yoy) coupled with global and domestic stock markets being in sudden free fall may have been the reasons why 11 months of interest rate rhetoric was instantly thrown out the window.
Profit growth for the S&P 500 companies is at its weakest point since 2009. That’s because, in fact, there isn’t any profit growth.
S&P 500 earnings for the first half of the year are expected to show a 0.7% contraction compared to a year ago, according to numbers from FactSet research. Growth in the first quarter was a meager 1.1%, but the second quarter is more than offsetting that, expected to contract at a 2.2% rate, FactSet estimates. The last time the S&P 500 saw a year-over-year decline for the first half of a year was 2009, when earnings positively cratered at the depths of the global recession, down 30.9%. - Wall Street Journal via Zerohedge


Read more on this article here...

Thursday, August 27, 2015

Black Monday: No matter the spin, markets built on Fed policy instead of economy

In the past we have written about, and shown the charts of what has happened in the stock markets since 2008 after the Fed began their policies of near zero interest rates, and massive quantitative easing.  In fact, it was a case of simple analysis to realize that the rise and fall of the equity markets over the past seven years have been intrinsically tied to infusions of new money printing, where stocks always declined when the spigots were turned off by the central bank.



Which leads us to now to the day of reckoning, or what happens in every instance of monetary expansion.  Over the past three weeks, equity markets around the world have been accelerating downward based on a number of factors.  First, the ability of new debt to increase GDP has now gone beyond the point of diminishing returns and would require an ever expanding rate of money printing just to squeeze out a single dollar of nominal growth.  Thus beginning in China, then traversing over into Europe and the U.S. during a daily market cycle, market declines and bad economic data are showing the cracks in the global financial system which are in part the same fundamental flaws that led to the 2008 crash.

Read more on this article here...

Monday, November 24, 2014

Both Japan and the U.S. can thank Paul Krugman now for their road to collapse

Economist Paul Krugman is a well known follower of Keynesian economics, and the belief that governments should constantly stimulate the economy and free markets with debt based printed money.  His work in the field of study has won him a Nobel Prize, but since anyone from terrorists to community organizers regularly win this award simply for breathing, that in itself is no longer a worthy accomplishment or title to hold.

But unfortunately for Japan, and soon to be for the rest of the world, Krugman’s chaotic beliefs are no longer limited to the U.S. mainland as it has recently been discovered that he took his horrific doctrines on the road and are the primary catalyst behind Prime Minister Shinzo Abe’s decision to monetize the entire government budget, and collapse the Yen onto the ultimate path of hyper-inflation.


Read more on this article here...

Japanese vassal state to the U.S. part two: Operation Tokyo Twist

In a previous article we showed how the U.S. is using the declining Yen currency to prop up and protect both the dollar and the stock markets, and in this essay we will see another aspect of how America and Wall Street is siphoning the last remaining assets from the Japanese people to supplement the lost liquidity that occurred after the Federal Reserve ended QE3.

In a term coined by statistician and well known analyst Dr. Jim Willie, the U.S. is raiding Japanese pension funds through a joint mechanism he calls, Operation Tokyo Twist.  The crux of this scheme is for Prime Minister Abe to take the last remaining solid reserve in the Japanese financial system… which is their pension fund, and use the money to purchase U.S. Treasuries and replace the pensions with newly printed Yen from their central bank.

In essence, Japan will take over buying U.S. bonds for the Fed by liquidating the government account holding Japanese pensions and replacing them with devalued fiat currency printed out of thin air.


Read more on this article here...

Tuesday, October 14, 2014

Fed President cites need for QE4 even before QE3 is finished

If there ever was validated proof that the entire financial system was reliant upon, and held together solely by central bank money printing, today was absolute confirmation.  On Oct. 14, San Francisco Fed President John Williams stated that a new round of QE (4, 5, 6?) would be needed once again should inflation benchmarks not be reached in the economy in the coming weeks.  And most notably, with oil, stock, and bond prices collapsing at incredible speeds, any form of Quantitative Easing needed to address asset deflation would make the bailouts of 2008 appear to be like the spare change one might give a beggar on a street corner in Manhattan.



Read more on this article here...

Jim Willie: If the Fed ends Zero Interest rates it will destroy the big banks

2014 has been the year of the Federal Reserve acting like the European Central Bank head Mario Draghi in that they have talked alot about ending QE and their Zero Interest Rate policies (ZIRP), but heading into the end of the year the Fed has done neither.  And the primary reason for this according to statistician and founder the Hat Trick Newsletter Dr. Jim Willie, is that the big banks have become so reliant upon ZIRP that to remove it would mean the utter destruction of these primary institutions.
In an hour long interview on Oct. 12 with Elijah Johnson of Finance and Liberty, Dr. Willie laid out the two consequences that would take place should the Fed end ZIRP, and why these alone would be enough to destroy the JP Morgans and Goldman Sachs of the U.S. financial system.
Read more on this article here...

Monday, September 15, 2014

Mises economist shows that the Fed will never be able to raise interest rates

Several months into Fed Chairman Janet Yellen’s term as head of the U.S. central bank, the controlling monetary body has been implementing a slow but steady form of pullbacks to their Quantitative Easing (QE) program.  And despite the Fed attempting not one, not two, not three, but four different forms of dollar monetization since the credit crisis of 2008, the one area they have not touched in the past six years are the near zero interest rates used to control the borrowing and flow of money in the Western banking system.
 
However, even with growing concerns and scuttlebutt by several Fed Presidents that interest rates need to be raised to shore up the dollar, Mises economist David Howden broke down the consequences of such a course of action and showed that the ramifications for interest on the national debt would become so outrageous, it is now past the point of no return and the Fed cannot afford in the slightest to ever raise interest rates again.
 
 
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Tuesday, February 4, 2014

QE was simply another form of bailout for insolvent banks

On Feb. 3, economist and statistician Rob Kirby was a guest on Greg Hunter’s USA Watchdog network.  During the 39 minute interview, Kirby blows the door wide open on the true purpose for Quantitative Easing 3(QE3), and says that empirical data shows that the entire scheme was created to provide another trillion dollar bailout of the banks, which were officially insolvent from their collection of worthless Mortgage Backed Security (MBS) holdings.


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Friday, November 15, 2013

It’s official: Quantitative Easing is a failure

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.



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Thursday, October 24, 2013

Dollar continues to tank as gold and Bitcoin gain big

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.



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