As the market panic demonstrates, central banks are stuck on a treadmill of money printing
Oh what a tangled web central bankers weave when they practice to deceive… Last night’s panic in Tokyo, where the Nikkei dropped a stomach churning 7 per cent, demonstrates just how difficult it’s going to be for the world’s central banks to exit their loose money policies.
It’s not even as if Ben Bernanke, chairman of the [...]
This is on CNN, no less:
Stocks have had a stellar year so far. In fact, the rally has gotten so heated that some investors are making bets on a big crash.
Universa Investments, which spends hundreds of millions of dollars a year buying crash protection, has attracted a record amount of money into its fund this quarter.
“People are starting to recognize that these market moves are unnatural and distorted,” said Universa [...]
by Phoenix Capital Research
Japan’s Nikkei, after rallying over 70% since November, just collapsed 11% in less than two days. Looking at the chart, it’s pretty clear where this thing is heading: the same as the NASDAQ in 2000.
This is the problem with economic policy that focuses on pushing stocks higher: eventually the collapsing economy comes home to roost and stocks implode. We saw this in 2000 and 2008. We’re currently [...]
Jim Rickerts View.
Stock market returns are high because of buy-backs. The shares are retired, the company does not have to pay out dividends and the yield goes up.
We are in a liquidity trap. No-one is embracing stocks, they are choosing to save.
Gold is not down. The dollar is up.
And more in this Keyser report with guest Jim Rickerts.
A liquidity trap is a situation described in Keynesian economics in which injections of cash into [...]
Wow, it took over one day before the Fed came out to do damage control on Bernanke’s Congressional double speak Wednesday that set the markets on a correction.
Fed’s Bullard Wants Faster Inflation Before Tapering QE
“Before I am in favor of tapering I would like to see some assurance that inflation is going to move back towards target,” he said.
U.S inflation fell to a two-year low of 1.1 percent earlier this [...]
Abby Martin talks to Dr. John Trumpbour, research director at Harvard Law School’s labor and work life program, about the theory of the clash of civilizations, the idea that a culture or war is inevitable and inherent in the relationship between the East and West; Hollywood’s homogenization of US culture and Harvard’s perpetuation of the ruling class.
by Charles Hugh-Smith
About the claim that central banks will never let asset bubbles pop ever again–their track record of permanently inflating asset bubbles leaves much to be desired.
The problem with trying to solve all our structural problems by injecting “free money” liquidity into financial Elites is that all the money sloshing around seeks a high-yield home, and in doing so it inflates bubbles that inevitably pop with devastating consequences.
As noted [...]
Today’s AM fix was USD 1,385.25, EUR 1,068.95 and GBP 917.81 per ounce.
Yesterday’s AM fix was USD 1,386.00, EUR 1,074.92 and GBP 919.16 per ounce.
Gold climbed $24.80 or 1.78% yesterday to $1,392.00/oz and silver finished up 0.16%.
After a volatile and momentous week for global markets, gold and silver look set to finish higher in all currencies and have their best week in a month.
Cross Currency Table – (Bloomberg)
Holdings in [...]
The interviewer’s talking about how Obama’s term will be up in 2016 so its the beginning of the end for him. Maxine Waters says “Well, I don’t know about that…
“The president has put together an organization with data the likes of which we’ve never seen before,,,” And goes on to talk about how powerful that information is…
Its only 1 1/2 min long but what she says outright and what she [...]
Whole Foods Market announced today at Natural Products Expo West that, by 2018, all products in its U.S. and Canadian stores1 must be labeled to indicate whether they contain genetically modified organisms (GMOs)2. Whole Foods Market is the first national grocery chain to set a deadline for full GMO transparency.
ALERT!… USDA Forces Whole Foods To Accept Monsanto!
In the wake of a 12-year battle to keep Monsanto’s Genetically Engineered (GE) [...]
Bass On Japan’s Turbo QE: “It Won’t Be Enough”
If JGB investors ‘believe’ as Richard Koo earlier noted, in the BoJ’s new actions and Abenomics (to double the monetary base and generate inflation), then, Kyle Bass explains, a rational investor is likely to sell a portion if not all of them. The BoJ only has JPY10 trillion cushion (after the JPY60 trillion deficit) to soak up this ‘rational investor paradox’ selling and this [...]
The best kept secrets of the Dollar. Is the whole US economy a farce?
The footage obtained by the Daily Mirror reveals how, after beheading the soldier, they hatched a plot to ambush and murder the first police officers to come to his aid
Woolwich attack: Watch shocking video of suspect with bloodied hands wielding knives issue warning
The video, obtained by ITV News, shows a bloodied man after the brutal attack in the street
mirror.co.uk (1 day ago)
Police appeal for calm after Woolwich machete attack
Metropolitan Police [...]
Just got this very reliable financial intel.
Get ready to short Japanese equities and expect another real-estate bubble burst.
Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.
the key part of the video, for ease of viewing:
The USDJPY has is trying to break the 103 barrier again after the BoJ meeting and Cabinet Secretary Suga commented the “BoJ should continue to steadily strive to reach inflation targets [...]
From Dividend Growth Stock Investing:
“The most powerful force in the Universe is compound interest” – Albert Einstein
Einstein was amazed at the effect compounding interest could have on an individuals wealth. Had Einstein come across dividend growth stocks, the super compounders of investing, he would have truly been blown away.
Dividend growth stocks offer investors a compounding effect beyond any other type of investment. There are not just one, not just two [...]
“Central bankers claim that they aren’t starting a currency war,” wrote market expert Ed Yardeni. “They deny that their policies are aimed at the competitive devaluation of their currencies. Let’s call it competitive ultra-easing.”
The Federal Reserve has famously been keeping rates low since the financial crisis. In recent months, the Bank of Japan has made stunning calls to devalue its own currency.
In recent weeks, many of the world’s other central banks have been cutting rates [...]
Richard Russell on May 17, 2013:
“The CPI is manipulated, and I believe gold is being manipulated as well. The Fed’s QE4ever is inflating everything — school tuition, haircuts, food, gas, insurance, medicine. They’ve already “rearranged” the CPI, so what’s left for them to do to keep us from knowing about inflation? Oh yes, it’s gold, so c’mon, Bernanke, keep the lid on gold. Slam it in after-market trading in the thin [...]
The attorney general distanced himself from one controversial media snooping case. But according to NBC, he’s deeply tied to another one.
The growing furor over the Obama administration’s secret investigation of journalists took a sharp turn Thursday with the revelation that Attorney General Eric Holder had personally authorized a controversial search warrant targeting a Fox News reporter.
Holder signed off on the search warrant for James Rosen, Fox’s chief Washington correspondent, that [...]
Trading in gold using the Chinese currency has tripled in Hong Kong this year as the yuan’s rally to a 19-year high helps limit risks for jewelers.
Average daily volume was 6.5 billion yuan ($1.1 billion) in the first five months of this year, compared with 1.8 billion yuan for the same period in 2012, according to the Chinese Gold & Silver Exchange Society, the city’s century-old bullion house. That exceeds the 4.9 billion yuan [...]
LONDON BRIDGE UNDERGROUND STATION CLOSED AFTER MAN WITH AXE SPOTTED — REPORTS
Pictures coming in:
PHOTO: Armed police officers respond to disturbance at London Bridge station -
@mpoppel: BREAKING — Police statement: Incident involving ‘suspicious vehicle’ on M6 motorway in UK
@mpoppel: Southern Rail says London Bridge station closed due to a ‘disturbance’ at the station
@NewsBreaker: DEVELOPING: @ChrissyPC: “A guy with an axe was on my train” #londonbridge
BREAKING…..M6 Motorway closed both ways….suspicious vehicle
NEW YORK (TheStreet) — About 44% of homeowners with mortgages cannot afford to sell their homes, according to a recent blog post from real estate company Zillow.
Despite a recovery in prices, over a quarter of homeowners with mortgage loans still owe more than their homes are worth. “But another 18.2 percent of homeowners with mortgages, while not technically underwater, likely do not have enough equity to afford to move,” according [...]
Greece was supposed to get it’s debt to GDP ratio to 100% by 2012, then 100% by 2013, then 110% by 2014. Now Jeroen Dijsselbloem, president of the Eurogroup finance ministers, says Greece May Get Still More Time to meet fiscal targets.
Read more at http://globaleconomicanalysis.blogspot.com/2013/05/greek-debt-unchanged-since-2010-eu-to.html#0fxdrwrrtQP6P8wJ.99
Over the past two decades, corporate America has become obsessed with “shareholder value.”
This narrow measure of company performance, which evolved into a religion in the 1990s, holds that what’s good for a company’s stock price is also what’s good for the company, the company’s customers and employees, and the economy.
So, today, the performance of companies and CEOs are judged primarily by their stock prices.
Capitalizing on this theme, Bloomberg has put together a list [...]
“We have a message for Attorney General Holder over athttp://huffingtonpost.com,” read a message from the Huffington Post political Twitter account earlier this evening.
The website’s home page is one big splash calling for Eric Holder’s exit from the Obama administration, suggesting that the news reported earlier by NBC News was the final straw for liberals who are critical of Obama’s attorney general.
President Barack Obama announced drastic changes to the United States’ counterterrorism operations Thursday, reforming the rules that guide America’s drone program while also expediting the release of Guantanamo Bay detainees. The president spoke at the National Defense University in Washington, DC Thursday afternoon to discuss those two issues in particular, weighing in on a pair of topics that have increasingly attracted criticism to the Obama administration since his first term [...]
In a memo that was circulated to the network’s employees on Thursday, Fox News President Roger Ailes pushed back against what he called the Obama administration’s “attempt to intimidate Fox News.”
Ailes was forcefully responding to new revelations surrounding a 2009 leak investigation, in which the Justice Department obtained a search warrant to view personal communications from Fox News reporter James Rosen.
In the search warrant, an FBI agent labeled Rosen as a “co-conspirator” in [...]
Sky News Newsdesk ‏@SkyNewsBreak
: DEVELOPING: UK fighter jets escorting a Pakistan Intl. Airlines passenger plane being diverted from Manchester to Stansted -
Gregor Peter‏@L0gg0l19 s
Stansted Airport is place for hijacked planes #PIA709
Gregor Peter‏@L0gg0l5 min
PAKISTAN AIRLINES FLIGHT 709 FROM LAHORE TO MANCHESTER SQUAWKS 7700 EMERGENCY CODE — @flightradar24
Ben Marsh‏@benmarsh1 m
Looks like flight #PIA709 has been moved away from the passenger terminals :| https://twitter.com/benmarsh/status/337920902949904384/photo/1
Karl Totton‏@KarlT8255 s
#PIA709 Essex Police says an incident occurred onboard Pakistani [...]
London Gold Market Report
from Adrian Ash, BullionVault
Fri 24 May, 08:45 EST
Gold “Trying to Build Base” as Retail Demand Counters More ETF Selling
The GOLD PRICE fell $10 per ounce after reaching almost $1400 for the 5th time this week in London trade Friday morning.
Silver held tight around $22.50 per ounce, managing only one-third of gold’s 2.0% gain for the week.
After yesterday’s 7% plunge Japan’s stock market bounced, but other Asian equities fell, [...]
8.2 earthquake, Sea of Okhotsk. May 24 15:44 at epicenter (8m ago, depth 619km)
2013-05-24 05:44:49 UTC
2013-05-24 15:44:49 UTC+10:00 at epicenter
2013-05-24 01:44:49 UTC-04:00 system time
54.870°N 153.334°E depth=601.8km (373.9mi)
359km (223mi) WSW of Esso, Russia
379km (235mi) WNW of Yelizovo, Russia
396km (246mi) NW of Vilyuchinsk, Russia
403km (250mi) WNW of Petropavlovsk-Kamchatskiy, Russia
2375km (1476mi) NNE of Tokyo, Japan
No Tsunami Warning Whew…
I don’t think we’re done yet
This is the worst case of hyperinflation in recorded world history…and no it’s not Zimbabwe, which is a distant second.
1. Hungary 1946
Inflation at its peak reached a staggering figure of 13.6 quadrillion % per month! That’s 13, 600, 000, 000, 000, 000%. The largest denomination bill was a 100 Quintillion note. Prices ended up doubling every 15 hours at the time.
See the top 10 list @
Over the past few weeks, attention in financial markets has once again turned to the prospect of the Federal Reserve tapering back its monetary stimulus, spurred on by public speeches from Fed presidents and articles from WSJ reporter Jon Hilsenrath, who is viewed as close to the central bank.
As concerns that the Fed may begin exiting the bond market this year have risen, investors have unloaded bonds, causing a swift [...]
BREAKING: People and vehicles are in the water after the I-5 Bridge over Skagit River in WA state has collapsed
2 hrs or so north of Seattle, over the Skagit River. Tweets coming in–
SKAGIT COUNTY, Wash. – —
Both north and southbound lanes of Interstate 5 Skagit River Bridge collapsed Thursday evening, said officials with the Washington State Patrol.
The collapse happened between south of Burlington and north of Mount Vernon.
According to the State Patrol, people and [...]
by Chris Powell, GATA:
Dear Friend of GATA and Gold:
In his market letter for May, commodities fund manager John Butler of Amphora Capital in London describes the rationales and mechanisms of surreptitious currency market intervention by central banks, rationales and mechanisms that will be familiar to anyone who follows the gold market with even the slightest skepticism.
Drawing on a long conversation he had years ago with his professor of international economics in [...]
by Elizabeth Harrington, CNS News:
House Minority Leader Nancy Pelosi (D-Calif.) said Thursday during a press conference on Capitol Hill that the buck doesn’t stop with President Barack Obama on the Internal Revenue Service (IRS) scandal, because he cannot “know about everything that is going on in every agency of government.”
“Well, the president doesn’t know about everything that is going on in every agency of government,” Pelosi said in response to a [...]
from Zero Hedge:
What may come as a surprise to most, is that as of this week’s H.4.1 update, the amount of ten-year equivalents held by the Fedincreased to $1.583 trillion from $1.576 trillion in the prior week, which reduces the amount available to the private sector to $3.637 trillion from $3.668 trillion in the prior week. And also, thanks to maturities, and purchase by the Fed from the secondary market, there [...]