The last time the Fed tried to exit a period of massive balance sheet expansion coupled with ZIRP - back in 1937 - its strategy completely failed. The Fed tightening in H1’37 was followed in H2’37 by a severe recession and a 49% collapse in the Dow Jones. This is the ghost of 1937 and it is about to make a repeat appearance.
"Cornering The Earth" - How The Rothschilds "Controlled At Least One Third Of Global Wealth" Over 100 Years AgoSubmitted by Tyler Durden on 06/14/2015 14:22 -0400
"Let us control the money of a nation, and we care not who makes its laws"
- the maxim of the house of Rothschild and is the foundation principle of European banks (source).
Keynesian policy of manipulating economic “aggregates” through countercyclical macro-measures appeared to work when balance sheets were not stretched to the brink. The glaringly obvious result of such policies, gross capital consumption through malinvestments epitomized through a serial bubble economy, did not discourage our money masters. The best and brightest even suggest bubbles are the only remedy to what they believe is some sort of secular stagnation. Just as drugs, the abuser must increase the dosage to feel the same high and spend accordingly.
Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.
When in a hole, stop digging. But when in a bubble, keep blowing. Our ruling and wealthy elite are worried that they are stuck in their own ponzi scheme or bubble and are suffering from the general problem of all ponzis and bubbles – how to get out.
Central banking has truly taken over the entire planet. At this point, the only major nation on the globe that does not have a central bank is North Korea. Yes, there are some small island countries such as the Federated States of Micronesia that do not have a central bank, but even if you count them, more than 99.9% of the population of the world still lives in a country that has a central bank. The global elite dominate us because we allow them to dominate us. Their debt-based system greatly enriches them while it enslaves the remainder of the planet. We need to expose their evil system and the dark agenda behind it while we still have time.
Financial markets in the United States and around the world are all waiting with “bated breath” for when the Federal Reserve modifies its “easy money” policy and starts to raise interest rates. No one, however, asks a simple question: Why is the American central bank in the interest rate setting business?
Our current money system began in 1971. It survived consumer price inflation of almost 14% a year in 1980. But Paul Volcker was already on the job, raising interest rates to bring inflation under control. And it survived the “credit crunch” of 2008-09. Ben Bernanke dropped the price of credit to almost zero, by slashing short-term interest rates and buying trillions of dollars of government bonds. But the next crisis could be very different…
There will be a tipping point where the advantage to be gained by badly impacting the dollar and positioning the yuan as new reserve currency will be greater than the disadvantage suffered by a collapse in the value of the dollar. The tipping point is closer than many believe.
An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great DepressionSubmitted by George Washington on 06/05/2015 10:39 -0400
Underneath the Propaganda, the Economy Is In BAD Shape …
As the afternoon session opened overnight in China, stocks were crashing 6-7% (after dropping over 10% and soaring over 15% in the 5 days prior). With record and exponentially growing margin trading one can only imagine the vast majority of new account-holding housewives were stopped out of various positions. Which makes us wonder, just who the mysterious buyer of last resort was that lifted Chinese stocks ever-so-linearly all the way back to unchanged (and in fact green for Shanghai). We suspect you know the answer, and sure enough, just as Bloomberg notes, who cares about China's economy when stocks are rising this much? Simply put, this is bread-and-circuses distraction for the masses of Chinese facing the harsh economic reality of a post debt-fueled bubble bursting.
The current asset bubble depends on a number of perceptions that could easily be put to the test by unexpected developments. There is a widespread consensus on a number of issues. This includes the belief that the economy will strengthen, that the emergence of “price inflation” is practically impossible, that “QE” will always guarantee rising asset prices, and that central banks have everything under control. Now we learn that in addition to this, a surprisingly large number of traders has no experience beyond the ZIRP & QE era of recent years. Meanwhile, the market’s underpinnings in terms of liquidity exhibit numerous weaknesses.
Once again it's all about Greece, with the latest iteration of a "Greek deal is imminent" rumor making the rounds and, just like yesterday, sending futures in the green, just a little over an hour after the increasingly more illiquid E-mini future has slid 0.7%. The EUR, where the bulk of Virtu headline kneejerk reacting algos are to be found, has surged over 100 pips overnight on more hope and optimism.
Will global QE carry on forever...the next month may give out some clues..will it be Junemaggedon after we had May-hem??