Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created. During testimony this week, she made “central bank independence” sound like it was the holy grail. Even though every other government function is debated politically in this country, Janet Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people. Does any other government agency ever dare to make that claim? If the Fed is doing everything correctly, why should Yellen be alarmed? What does she have to hide?
It may signal that the ECB and Eurozone are set to embark on a gold accumulation programme. More likely, it is simply a way to bolster confidence in the euro due to increasing doubts about the viability of the single currency.
With the world's oldest central bank - Sweden's Riksbank - taking the plunge into negative rates, there have been 19 'eases' by central banks this year, Morgan Stanley warns of "ghosts of the 1930s." With competitive 'easing' stoking fears of international currency wars, The Telegraph notes however that looser monetary policy is not the order of the day everywhere in the world, and herein lies potential danger for the world economy.
"That misconduct happens isn’t shocking. What is: When the FDA finds scientific fraud or misconduct, the agency doesn’t notify the public, the medical establishment, or even the scientific community that the results of a medical experiment are not to be trusted. On the contrary. For more than a decade, the FDA has shown a pattern of burying the details of misconduct. As a result, nobody ever finds out which data is bogus, which experiments are tainted, and which drugs might be on the market under false pretenses."
Questions to assist in creating a working inventory of mind, body, and equipment for living in dangerous or uncertain timesSubmitted by hedgeless_horseman on 02/18/2015 15:33 -0400
Do I know how to beg...effectively?
Do I know how to barter...effectively?
How good of a liar am I...really?
The world has begun to devolve into two distinct factions. The imperialist actions of the American Empire in the Middle East and Ukraine have pushed Russia, China, India, Brazil, and Iran closer together regarding trade deals; transacting commerce without using the USD; oil and gas pipelines; and military cooperation. Totalitarian regimes are known for using foreign threats to distract the populace from domestic suffering. As a matter of fact, all regimes use this tactic. When the global economy rips apart at the seams due to the debt saturation, world leaders will attempt to blame other countries for their dire circumstances. Foreign enemies are good for business. Ask our Nobel Peace Prize winning President. War is inevitable.
- Greek defense minister says Greece has Plan B if EU rigid on deal (Reuters)
- Germany rejects Greek claim for World War Two reparations (Reuters)
- Greece to Seek $11.3 Billion in Financing to Avoid Funding Crunch (BBG)
- Lazard Sees $113 Billion Greek Debt Cut as ‘Reasonable’ (BBG)
- U.S. Navy Considers Setting Up Ship Base in Australia (BBG)
- Dalio’s Bridgewater Fund Said to Rise 8.3% in January (BBG)
- As U.S. Exits, China Takes On Afghanistan Role (WSJ)
- EU money funds cut exposure to bank debt (FT)
- China Inflation Drops to Five-Year Low in January (WSJ)
- Oil-Price Rebound Predicted (WSJ)
The NYT Exposes The Criminal Money-Laundering Underworld Supporting Manhattan's Luxury Housing BubbleSubmitted by Tyler Durden on 02/07/2015 16:02 -0400
“We like the money,” said Raymond Baker, the president of Global Financial Integrity, a Washington nonprofit that tracks the illicit flow of money. “It’s that simple. We like the money that comes into our accounts, and we are not nearly as judgmental about it as we should be”... Mayor Michael R. Bloomberg said on his weekly radio program in 2013, shortly before leaving office: “If we could get every billionaire around the world to move here, it would be a godsend.”
At the end of the day, the issue here is one of freedom, and freedom is the freedom to choose – even if we make a bad choice. The argument that I must vaccinate my children for the good of the community is not only scientifically questionable, it is an unethical precept. It is the argument all dictators and totalitarians have used. “Comrade, you must work tirelessly for the good of the collective. You must give up your money and property for the good of the collective, and now … you must allow us to inject your children with what we deem is good for the collective.” If American’s don’t stand up against this, then we are lost. Because we have lost ownership of ourselves. Our bodies are no longer solely ours – we and our children are able to be commandeered for the “greater good.”
In Part 1, we described the world’s economy as one that is based on energy. The design of the system is such that the economy can only grow; shrinkage tends to cause collapse. If this view of the situation is correct, then we need an ever-rising amount of inexpensive energy to keep the system going. We have gone from trying to grow the world economy on oil, to trying to grow the world economy on coal. Both of these approaches have “hit walls”. Now we have practically nowhere to go.
US Trade Deficit Soars In December As Strong Dollar Hurts Exports, Downward Q4 GDP Revisions ImminentSubmitted by Tyler Durden on 02/05/2015 09:51 -0400
And so after that epic 5.0% Q3 GDP print, driven largely by Obamacare, the payback begins, and the annualized Q4 GDP print, which came in at nearly half the previous quarter run rate, or 2.6%, is about to tumble by another ~0.5% following the just released trade data for December which saw a 17.1% surge in the US trade deficit from $39 billion (revised to $39.8 billion) to a whopping $46.6 billion in December, the widest deficit since 2012, as US exports declined 0.8% to 4194.9Bn from $196.4 Bn, while imports rose notably from $236.2Bn to $241.4Bn in the month before. All of this brought to you courtesy of the soaring USD. This was also the biggest miss to expectations of $38.0 billion since July of 2008. If this does not force policymakers to reassess the impact of the soaring dollar on US trade, nothing will.
- Arab World Unites to Condemn ‘Barbaric’ Death of Jordanian Pilot (BBG)
- Jordan hangs two Iraqi militants in response to pilot's death (Reuters)
- As Oil Prices Climb, Some Harbor Doubts (WSJ)
- Taiwan plane cartwheels into river after take-off, killing at least 19 (Reuters)
- Seven dead as commuter train hits car near New York City (Reuters)
- Apollo’s 600% Profit on Oil Company Leaves Rivals Behind (BBG)
- Greece's rock-star finance minister Yanis Varoufakis defies ECB's drachma threats (Telegraph)
- Who Doubts Yellen's Policies? Summers for One (BBG)
- Samsung, Apple Back in Dead Heat for Global Smartphone Dominance (WSJ)
- Islamic State purportedly sets new deadline for hostage swap (Reuters)
- Turkey's $7.9 Billion Mystery Money That's Simply Vanished (BBG)
- How a Two-Tier Economy Is Reshaping the U.S. Marketplace (WSJ)
- U.S. Prisons Grapple With Aging Population (WSJ)
- Hasenstab Sees $3 Billion Vanish in Ukraine as One Big Bet Sours (BBG) - maybe he should BTFD, pardon, "invest" in Belarus next?
- Belarus May Seek Debt Restructuring in 2015, President Says (BBG)
Meet The Extreme Super Rich: A List Of The 80 People Who Own As Much As The World’s Poorest 3.6 BillionSubmitted by Tyler Durden on 01/28/2015 16:31 -0400
"Eighty people hold the same amount of wealth as the world’s 3.6 billion poorest people, according to an analysis just released from Oxfam. The report from the global anti-poverty organization finds that since 2009, the wealth of those 80 richest has doubled in nominal terms — while the wealth of the poorest 50 percent of the world’s population has fallen." There you have it. The reason the wealth of the richest has doubled since 2009, is because “it’s not a recession, it’s a robbery.” Central bank and government policy has done this, it is no accident.