This page has been archived and commenting is disabled.
Four Financial Farces… All of Which Will End in Disaster
At this
point the news out of the financial world is more insane than… well, anything.
Farce #1: Japan Can Bail Out… Anything.
First off,
Japan, which has a debt to GDP ratio of 200%, is bailing out Europe, which has
a smaller, but equally disturbing debt problem. Yes, one broke country (Japan)
is now trying to bail out an entire economic union, despite the fact that it
HASN’T succeeded in managing its OWN finances or economy in over 20 years.
Indeed, the
idea that Japan could bail out ANYONE when it’s failed to create any
substantial economic growth despite spending TRILLIONS of Yen should give you
an idea of just how out of control the entire financial system has become. We
are literally in the end game now. Unless martians come down and start bailing
out Earth, the great Sovereign Default will be in full effect within the next
six months.
Farce #2: Inflation is at 1%
Meanwhile,
Ben Bernanke claims that inflation in the US is 1%. President Obama has to
maintain that this is a fact with a straight face next week when he meets with
French President Nicolas Sarkozy who is witnessing food riots in Algeria due to
soaring food prices.
The Fed has
claimed inflation is under control for months now, proving that its members
must not eat food, drive cars, OR know how to read. Indeed, in order to ignore
rising prices in the US, you would literally have to not shop for groceries,
not pump gas in your car, not read the newspaper, and not have access to the Internet
or any financial news outlet.
I sincerely
hope that the Fed is not run by folks who fit this description, but after
reading the next farce, I’m not so sure.
Farce #3: QE is Working
Various Fed
officials have stepped forward to claim that its Quantitative Easing program
has worked. Correct me if I’m wrong, but I thought the whole purpose of QE was
to lower interest rates.
How then do
you explain the following?
As you can
see, interest rates have soared since the Fed implemented QE 2. It’s not like
QE has helped the US economy either: food stamp usage has hit new records since
it began.
And yet, the
Fed claims that QE is not only working but we need more of it. However, even
that farce pales compared to the next and final financial farce of today’s
essay.
Farce #4: The Folks Managing the Fed’s QE
Efforts Have NO Investing Experience
Then of
course, there’s the recent revelation that the Fed’s monetary policies
involving the purchasing of TRILLIONS of US Treasuries is in the hands of folks
aged 26, 29, and 34, NONE of whom have any investing experience what-so-ever.
And they’re
in charge of buying up TRILLIONS in US Debt.
Here’s a pic
of them at work. Warning, the following image, when coupled with the
significance of these folks’ responsibilities, may cause a severe mental
breakdown.
If, at this
point, it’s not clear that the entire financial system is not a disaster
waiting to happen, then I don’t know what else to say. Indeed, our entire
system is built on fraud and managed by folks who don’t know what they’re
doing. And if you think they’ll get us steer us to safety, consider that around
the globe we’re already beginning to see signs of systemic collapse.
Good
Investing!
Graham
Summers
PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.
I call it The Financial Crisis “Round Two” Survival
Kit. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).
Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.
You can
access this Report at the link above.
- advertisements -
You are correct, other parts of the world are showing the break down of the financial system. And when it gets to the US it will be a tsunami of debt and margin calls that our country can't fix or support.
Could the U.S. Dollar rise 50%?
""It looks like the DXY (Dollar Index) is tracing out a long-term pennant or wedge, with price moving up and bouncing repeatedly off resistance around 90. The abrupt retreats could be interpreted as the result of frenzied intervention. If this wedge pattern holds, then price will compress into an increasingly tighter range and then explode upward once 92 is decisively breached.""
Read more..
http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/01/could-us-dollar-rise-50.html
john taylor is calling for a rise this spring
What continually amazes me is the idea that the Fed is incompetent, doesn't know what it is doing etc. Nothing could be further from the truth.
Wasn't that your man Ben that stood up and said the housing problem was "contained"? If he failed to see that is there any way we could trust him on anything else?
Easy for you to say. Perhaps you do not live under unknown fixed-ideas that twist your perceptions and thoughts, thus preventing seeing the obvious.
Being an outlier has its price. Ask Cassandra.
You are probably right. But it is possible they are both errand boys AND useful idiots. Most of them have the proper training...
These guys are incompetent when accountability comes calling ("I know nothing," "Who could have foreseen that economic train would have crashed when it drove off a cliff? I thought the laws of gravity were suspended in the 'new era'.") and hypercompetent when the profit and bonuses come rolling in. Since so much of finance law seems to involve "intent" to... defraud, etc. then one only has to maintain complete idiocy to avoid criminal prosecution
At least the blue shirt guy isn't holding up his middle finger................
The purpose of qe is to end the china peg and warn mercantilists that they had better play fair, or they are next in line for food riots. We spend 14 percent of income on food. Fifty percent food inflation causes some sacrifice in the usa. It topples the communist government in china. Depeg, or we destroy the communist one party rule and china breaks into four pieces as a bonus.
Yes, because the US always 'plays fair', right?
BB and the banksters conducting covert economic war? That's funny. I'll bet the Chinese are scared shitless of Blythe Masters. These incompetents will fail. The communist government will not fail. They'll grease the tracks of their tanks with the inards of their populace. See Tianamen Square footage for proof.
Perhaps China will sell us back all their Treasury bonds first?
The purpose of QE is to debase the U.S. currency in an attempt to avoid a debt restructuring. While it won't work it may indeed create trade wars for which the U.S. is poorly positioned.
Can anyone tell me if Bernanke and the FED can navigate through these?
Watch for the cliff. It's straight ahead and its well hidden. It's not speed that kills it's the impact. (That's the true meaning of hard landing.)
http://www.youtube.com/watch?v=6NLIAVMDtu4
Oracle,
I think the Black Swans are known, just some have not landed yet.
The cliff you talk about ... are we approaching the bottom (for a sudden death smashup) or are we approaching the top (for a bit of smooth sailing)?
Yes - if this is Chairman Ben's objective, he would be wise to recall the unintended consequence of Chairman Mao's campaign against the sparrow....
http://sparrow.elte.hu/mao.htm
Oh come on.
The guy on the right is showing the guy on the left a big green juicy booger that he lifted off the Magic 8 Ball they share and is droning on about how he can't wait till he gets made a partner at Goldilocks and has his own mouse-pad.
And you say he's no investment experience.
Pshaw...
"gets made a partner at Goldilocks"
is that like becoming a 'made' man in the mob?
LOL... that guy is really saying get ready to be screwed with more taxes, on your food, petrol, your house, carbon emission, heck for scratching your left ass cheek. Yes It is coming soon!!!
Alot of people think we are doomed, but there are still great ways to make money. We are gunna need it for the taxes these criminals are gunna start charging for.
I subscribe to the guy from australia and his FFT economic newsletter at http://www.forecastfortomorrow.com that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.
His oil calls are insane, and I have been making good money with them. He is well worth a look, if you want to keep two steps ahead of the sheeple out there.
I am worried about my financial future. Is anyone else nervous out there?
pretty logical because food, gas... are luxery goods which you don't need in life so a tax of about 50% on those is justified.
Remember: THE FED AND THE BANKS NEED TO BE REPAID FOR ALL THEIR HARD WORK.
No he's saying "I'm going to stick my finger about this far up the middle class taxpayers ass"
In that case, are you sure he isn't pointing to his left elbow?
http://www.gnosticliberationfront.com/you_are_all_slaves.htm#you%20are%2...
slave screams he spends his life learning conformity
slave screams he claims he has his own identity
slave screams he's going to cause the system to fall
slave screams but he's glad to be chained to that wall
don't open your eyes you won't like what you see
the blind have been blessed with security
don't open your eyes take it from me
I have found
you can find
happiness in slavery
-TR