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Economic collapse and price controls on commodities!

Right now there is price manipulation happening in virtually all markets!! Stocks, bonds, commodities, etc. There is a very big unintended consequence of the artificial suppression of commodity prices that I want you to think about. We all now are seeing how the price of gold and silver on the comex is no where near what costs to acquire the physical. That is because the premium (or the markup from [...]

‘OBAMACARE’ PRICE SHOCK FOR PETS

MIAMI (CBSMiami) — Pet owners listen up: You may want to start saving more money for veterinarian care this year. The reason goes all the way back to Washington and an unintended consequence from medical reform.

Dog owner Lori Heiselman was surprised where her veterinarian posted a warning on Facebook.

The notice read: “Because medical equipment and supplies will be going up in cost, that extra expense will have to passed on [...]

Japan’s Chain Of Events: Stagnation -> Monetization -> Devaluation -> Stabilization -> Retaliation -> Hyperinflation

from Zerohedge:

As the world’s equity markets prepare to rally on the back of yet more central bank printing as Japan’s Shinzo Abe takes the helm with a 2% inflation target, to be announced momentarily, and a central bank entirely in his pocket, The Telegraph’s Ambrose Evans-Pritchard suggests a rather concerning analog for the last time a Japanese minister attempted to salvage his deflation/depression strewn nation: the 1930s ‘brilliant rescue’ by Korekiyo Takahashi, who [...]

Cyprus: A GDP of EUR18bn in 2011, its banking system has ‘assets’ of EUR150bn

from Zerohedge:

As Greek bonds go from unintended consequence strength to strength, helped by a EU planned buyback, so Cypriot bonds have been monkey-hammered in the last week or so (and dramatically so today) as the IMF withholds support, demanding a haircut is imposed. As Speigel notes, Cyprus did its part on Wednesday night by passing a 2013 budget with far-reaching austerity measures, yet the would-be creditors (providing the bailout funding) [...]

A controversial post every housing bull should read

From PeakProsperity:

Everyone interested in real estate is asking the same question: Is the bottom in, or is this just another “green shoots” recovery that will soon wilt?

Let’s start by reviewing the fundamental forces currently affecting real estate valuations.

There are two ways to expand the pool of qualified home buyers, and they both rely on expanding leverage: A) lower the down payment from 20% cash to 3%, and B) lower the [...]

Left-Wing Websites Reject Obama Ads, Say Campaign Undercutting Them By Working With GOOGLEAOL

Don’t expect any ads for President Obama across the top of Prospect.org, the online incarnation of liberal monthly magazine the American Prospect. However warmly editors there may feel about him, it is blocking ads from his campaign as part of a pricing dispute that has pitted many political Web sites — on both the left and right — against their ideological allies.

The standoff is an unintended consequence of a broad [...]

FOOD FIGHT: Left-Wing Websites Reject Obama Ads, Say Campaign Undercutting Them By Working With GOOGLEAOL

Don’t expect any ads for President Obama across the top of Prospect.org, the online incarnation of liberal monthly magazine the American Prospect. However warmly editors there may feel about him, it is blocking ads from his campaign as part of a pricing dispute that has pitted many political Web sites — on both the left and right — against their ideological allies.

The standoff is an unintended consequence of a broad [...]

Spain: a Bank Run Combined with a Sovereign Debt Crisis

by Phoenix Capital Research

 

Regarding the recent coordinated central bank moves, the key take-away point is that the ECB and US Federal Reserve attempted “shock and awe” tactics with their latest announcements by throwing out words such as “unlimited” and “open-ended.”

 

The implication here was that the Central Banks would do everything they could to prop up the financial markets. However, as has been the case with every Central Bank intervention, there are unintended consequences.

 

The [...]

Draghi’s Bazooka Fired Blanks

by Phoenix Capital Research

 

Regarding the recent Central Bank coordinated intervention, the key take-away point is that the ECB and US Federal Reserve attempted “shock and awe” tactics with their latest announcements by throwing out words such as “unlimited” and “open-ended.”

 

The implication here was that the Central Banks would do everything they could to prop up the financial markets. However, as has been the case with every Central Bank intervention, there are unintended consequences.

 

The [...]

Ron Paul on unlimited QE: ‘To me, it is so astounding that it does not collapse the markets. [Bernanke] said, ‘We are in very big trouble. We are going to do something unprecedented…’

Ron Paul: “Country Should Panic Over Fed’s Decision”

What took Ben Bernanke sixty minutes of mumbling about tools, word-twisting, and data-manipulating to kinda-sorta admit – that in fact he is lost; Ron Paul eloquently expresses in 25 seconds in this Bloomberg TV clip. Noting that “we are creating money out of thin air,” Paul sums up Bernanke’s position perfectly “We’ve Lost Control!”

 

 

25-second quick clip

Full 5 minute clip – must watch! from Mal-investment to Bernanke’s [...]

Jim Grant: “The Fed Owns The Stock Market”

The dulcet tones of Jim Grant provided much food for thought on Tom Keene’s Bloomberg Radio show this morning. While the interest rate observer did not change his tack on the extreme experimentation of world’s central banks, he did have some new perspective on the incredible moral hazard (or unintended consequence) that is being created. One of his main criticisms is theincredible arrogance and conceit of a central banking system [...]

Athens News: Greece will provide EUR250mm in emergency funds to its ailing electricity providers to prevent a California-style energy crisis.

While Greece has had its fair-share of EURs funneled to it and through it over the course of the last year or two, it appears they have now created their first ‘internal’ bailout as things go from bad to worse. As Athens News reports, Greece will provide EUR250mm in emergency funds to its ailing electricity providers to prevent a California-style energy crisis. This liquidity injection to the country’s power utlities was yet [...]

Jim Grant explains how Central Banks are Waging War on Supply and Demand

Published on Apr 26, 2012 by CapitalAccount

Follow us @
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Welcome to Capital Account. Last month, the federal reserve bank of new york invited some of its critics, including our guest, to, as he put it “unburden themselves of their criticisms.” The text of his remarks was published in the March 23rd issue of Grant’s, and it is most certainly worth reading for those who are wise enough to subscribe. There are a number [...]

Sell-Siders all over babbling about record corporate profits, and nary a peep about near-record (and possibly beyond record, by now) debt:

 

Robust Corporate Bond Issuance Is Approaching Weekly Record

And it was near 2 trillion of corporate debt back in 2011, so who knows how much higher that figure is as of now -

Law of Unintended Consequences: Corporate Borrowing Binge

So far in 2011, syndicated loan volume has increased a whopping 56% compared to 2010, according to Dealogic. The total of $1.76 trillion is the highest single-year sum since the pre-financial crisis days of [...]

The China Baby That Grew Up & Nobody Noticed

China, in 1990 had 168 miles of paved Interstate.
China today has 53,000 miles of paved Interstate.
China in 1990 had 5 1/2 million cars.
China today has 200 million vehicles on the road.
It takes 121,600 gallons of oil to pave 1 mile of road.
By comparrison the U.S. has 47,000 miles of paved interstate.

Same goes for their crude oil imports, which hit a record high of 23.41 million metric tons this past January, up [...]

Words and Phrases We Hope Not To See Or Hear In 2012

Via Peter Tchir of TF Market Advisors,

Rather than making some predictions, here is a list of words and phrases that were popular in 2011 that just annoy me.  It would be nice if they become less popular in 2012, but I predict they will remain in use.

 

Bazooka

No self-respecting videogame would have a “bazooka” as the ultimate weapon.  Bazookas just aren’t that powerful.  Maybe Europe needs to search for a “nuclear” option, [...]

More acts of desperation by European banks:

From Bloomberg:

European banks, under pressure from regulators to bolster capital, are selling some of their fastest-growing businesses to competitors from outside the region — at the expense of future profit and economic growth.

Spain’s Banco Santander SA (SAN), Belgium’s KBC Groep NV (KBC) and Germany’s Deutsche Bank AG are accelerating plans to exit profitable operations outside their home markets. Santander, which said in October it needs to plug a 5.2 billion-euro [...]

REPORT: Obamacare Will Punish Older Workers

WASHINGTON — Older adults of the same age and income with similar medical histories would pay sharply different amounts for private health insurance due to what appears to be an unintended consequence of the new health care law.

Aware of the problem, the administration says it is exploring options to address a potential disparity that could mean added controversy for President Barack Obama’s health care [...]

Memo to Bernanke: It’s Called Blowback, Baby

by Charles Hugh Smith from Of Two Minds

Memo to Bernanke: It’s Called Blowback, Baby

The covert manipulation of the domestic economy has set up ideal conditions for massive domestic blowback against the responsible agencies such as the Federal Reserve.

Broadly speaking, “blowback” is the unintended consequence to the civilian population of secret government operations. It is typically used to describe the consequences of overseas covert operations:

Blowback:

The term [...]

Fed policy complicated by new FDIC regime

Here is a quick note from BofA’s Brian Smedley explaining again how the Fed is now completely cornered (even more than before).

Fed policy complicated by new FDIC regime

One of the main problems highlighted by the FDIC policy change is the unintended consequence that regulatory reform has on monetary policy. The new FDIC assessment regime, while intended to better protect taxpayers from large bank failures in the [...]

BACKLASH: Airlines skirt big tarmac delay fines by just canceling flights

John Hughes/BloombergNewark International Airport in this May 2010 file photo.

By all accounts, the Federal Aviation Administration’s “tarmac rule” has dramatically reduced the number of passengers who are stuck inside an aircraft on the ground for three hours or more.

Violations of the rule, which went into effect last April, can cost airlines $27,500 per passenger, or $2.75 million for a planeload of 100 people going nowhere fast. [...]

Revealing The Unintended Consequences Of US Central Planning

Among the ‘myths’ debunked are:

* Cash for Clunkers was good for economy and the environment
* The inflation tax generated by government intervention
* Foreign oil dependence

And much more lunacy that would make Stalin proud. Worth the 10 minutes.

Anything that appears to be an ‘unintended consequence’ is merely a consequences they don’t care enough about to control via manipulation. Precious [...]

All the money printing, skyrocketing deficits, ballooning OTC derivatives, POMO’s, nationalizations, etc. emerging from the depths of the 2008 credit crisis…

by RobotTrader

Created UNINTENDED CONSEQUENCES.

1. Skyrocketing energy prices?

Nope.

In fact, natural gas is now trading at world record lows when adjusted for inflation.  Resulting in one of the biggest ETF bear markets in history.

2. Collapsing bond market?

Nope.

Willing debt enablers are clamoring for even more of our U.S. Fiatsco-based Treasuries, driving yields down to new 45-year lows.

Basically its a “now, more than ever” attitude towards AAA-rated, gilt-edged, U.S. debt.

3. Galloping gold [...]