http://www.zerohedge.com/fullrss2.xml/wp-login.php/sites/default/files/images/user5/imageroot/2011/09/sites/default/files/images/user3303/imageroot/2012/02/sites/default/files/images/user5/imageroot/2011/09/sites/default/files/images/user5/imageroot/news en As Ferguson Trembles Ahead Of Night #2, Obama Pivots Back To Immigration Reform - Live Feed http://www.zerohedge.com/news/2014-11-25/ferguson-trembles-ahead-night-2-obama-pivots-back-immigration-reform-live-feed <p><strong>Having rather dramatically failed to quell the emotions of America&#39;s unemployed youth last night,</strong> as all across the nation, it appears Michael Brown&#39;s father&#39;s emotional outburst to &quot;burn this bitch down&quot; trumped the President&#39;s appeal that &quot;protests should be peaceful,&quot; <strong>Obama is pivoting rapidly to another raging success - Immigration Reform.</strong></p> <p>President Obama is due to speak at 535ET (plan accordingly)</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="//www.youtube.com/embed/bSKkvs3weGA" width="560"></iframe></p> <p>*&nbsp; *&nbsp; *</p> <p><u><strong>Of course, we suspect he will be forced to address the collapse of his nation&#39;s morale</strong></u></p> <p>With 2,200 National Guard in Ferguson, and police forces across the nation likely on double-alert, <strong>we wonder if tonight&#39;s address will be more threats (of arrest and martial law) than promises (of national dialog)</strong>. Perhaps Al Sharpton&#39;s earlier analogy to last night&#39;s actions as merely Round 1 in a long fight was not so helpful after all...</p> <p>Some highlights from last night&#39;s Ferguson address</p> <p><a href="http://www.zerohedge.com/news/2014-11-24/some-folks-are-protesting-president-obama-delivers-statement"><em><img height="276" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141124_obo_0.jpg" style="margin-left: 0px; margin-right: 0px;" width="500" /></em></a></p> <p>&nbsp;</p> <ul> <li><strong>*OBAMA SAYS GRAND JURY DECISION MUST BE ACCEPTED</strong></li> <li><strong>*OBAMA SAYS THERE WILL BE SOME &#39;NEGATIVE REACTION&#39;</strong></li> <li><strong>*OBAMA SAYS PROTESTS OF DECISION SHOULD BE PEACEFUL</strong></li> <li><strong>*OBAMA SAYS &#39;THIS IS AN ISSUE FOR AMERICA&#39;</strong></li> <li><strong>*OBAMA SAYS SITUATION IN FERGUSON SPEAKS TO &#39;BROADER ISSUES&#39;</strong></li> </ul> <p>*&nbsp; *&nbsp; *</p> <p>Some Ferguson/Police humor</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_Obama1.jpg"><img height="580" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_Obama1.jpg" width="578" /></a></p> <p>Too soon?</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="722" height="521" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141125_Obama2.jpg?1416953529" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/ferguson-trembles-ahead-night-2-obama-pivots-back-immigration-reform-live-feed#comments Martial Law President Obama Tue, 25 Nov 2014 22:29:16 +0000 Tyler Durden 498271 at http://www.zerohedge.com On This Day, 138 Years Ago, The Idea Of QE Was Born http://www.zerohedge.com/news/2014-11-25/day-138-years-ago-idea-qe-was-born <p><em>From Art Cashin</em></p> <p>On this day in 1876, a group of influential, yet irate, Americans met in Indianapolis. Their primary purpose was to send a message to Washington on how to get the economy moving again. America at the time was going through a difficult and unusual period. Several months earlier, the stock market had begun to plunge violently. Soon there were layoffs and business closings and the economy was having a tough time getting back in gear. And for months now, strange things were happening, the money supply seemed not to be growing, real estate values were stagnant to slipping, and commodity prices were heading lower. (How unusual.)</p> <p>So this group decided that what was needed was re-inflation (put more money in everyone's hands, you see). The method they proposed was to issue more and more money. Cynics called them "The Greenback Party". And on this day, the Greenbacks challenged Washington by running an independent for President of the United States. His name was Peter Cooper. He lost but several associate whackos were elected to Congress.</p> <p>To celebrate stop by the "Printing Press Lounge". (It's down the block from the Fed.) Tell the bartender to open the tap and just keep pouring it out till you say stop. Reassure the guy next to you (while you can still talk) that now we have more enlightened people in Washington. Try not to spill your drink if he falls off the stool laughing.</p> <p>There wasn’t much raucous laughter on Wall Street Monday, but the bulls were beaming with smiles as they managed to continue their string of bull runs.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/Fed%20octopus.jpg" width="471" height="704" /></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="471" height="704" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Fed%20octopus.jpg?1416948250" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/day-138-years-ago-idea-qe-was-born#comments Art Cashin Money Supply Real estate Tue, 25 Nov 2014 21:59:36 +0000 Tyler Durden 498270 at http://www.zerohedge.com 2,200 National Guard Troops To Be Deployed In Ferguson Tonight, Up From 700 http://www.zerohedge.com/news/2014-11-25/2200-national-guard-troops-be-deployed-ferguson-tonight <p>While last night's events in <a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/ZH%20traffic.png">Ferguson </a>raised many eyebrows over the decision to release the Jury decision late into the night, and even more tempers, as rampant destruction and looting quickly became the means by locals express their indignation with the US judicial system, some say they could have been worse. Still, just to make sure the second night of the Ferguson protests is not a replica of what happened yesterday, moment ago Missouri governor Jay Nixon announced he would dispatch a massive 2,200 national guard troops, up from 700 on Monday night: a presence that is set to make the city resembles an all out warzone. One can only hope the similarities end there.</p> <p><a href="http://hosted.ap.org/dynamic/stories/U/US_FERGUSON_NATIONAL_GUARD?SITE=AP&amp;SECTION=HOME&amp;TEMPLATE=DEFAULT&amp;CTIME=2014-11-25-16-24-21"></a><em><a href="http://hosted.ap.org/dynamic/stories/U/US_FERGUSON_NATIONAL_GUARD?SITE=AP&amp;SECTION=HOME&amp;TEMPLATE=DEFAULT&amp;CTIME=2014-11-25-16-24-21">From AP</a>:</em></p> <p class="ap-story-p">Missouri Gov. Jay Nixon says <strong>more than 2,200 National Guardsmen will be in place in the region near Ferguson on Tuesday </strong>night in the event of more violence.</p> <p class="ap-story-p">He said Tuesday that hundreds more will be deployed to Ferguson, where fires and looting erupted Monday night after word that a grand jury decided not to indict a white police officer who fatally shot 18-year-old Michael Brown.</p> <p class="ap-story-p">The rest will be in a position to respond rapidly, if needed.</p> <p class="ap-story-p"><strong>Nixon says 700 guardsmen were in the area on Monday night</strong>, when more than a dozen buildings were set on fire and otherwise vandalized.</p> <p class="ap-story-p">Ferguson's mayor said earlier in the day that the National Guard wasn't deployed quickly enough as violent protests broke out.</p> <script src="//platform.twitter.com/widgets.js"></script><div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="275" height="183" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/natl%20guard.jpg?1416951468" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/2200-national-guard-troops-be-deployed-ferguson-tonight#comments Tue, 25 Nov 2014 21:28:06 +0000 Tyler Durden 498269 at http://www.zerohedge.com Texas Tea & Treasury Yields Tumble As Trannies Top The Day http://www.zerohedge.com/news/2014-11-25/texas-tea-treasury-yields-tumble-trannies-top-day <p><strong>Never in the history of US equity markets has the S&amp;P 500 closed above its 5-day moving average for 28 days in a row... until today.</strong> While most indices tracked sideways in a very narrow range today, Trannies outperformed (helped by weaker oil, but even when oil rallied intraday Trannies rallied too). VIX tracked back below 12.5 with an <strong>inverted term structure for the 5th day</strong> in a row. The<strong> USD lost ground for the 2nd day</strong> in a row, driven by EUR strength (with notable AUD weakness extending). Silver rallied as gold flatlined and <strong>copper tumbled</strong> after US GDP beat. However, the two big themes today were the <u><strong>collapse in oil prices</strong></u> (as rumors/news ahead of OPEC sent volatility soaring) to a $73 handle - the lowest close since 2010; and the <strong><u>plunge in Treasury yields</u></strong> (with a very stroing 5Y auction and big block trade in TLT suggesting short-covering). Finally, <strong>AAPL broke above a $700 billion market cap briefly</strong> today but was unable to hold it.</p> <p>&nbsp;</p> <p>28 days and counting... will the S&amp;P ever be allowed to break its 5DMA</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD1_0.jpg" style="width: 600px; height: 443px;" /></a></p> <p>&nbsp;</p> <p>On the day, Trannies led the way... though they finally started to get the joke of what collapsing oil prices means into the close... Russell 2000 was rescued at the very last minuet to close barely green, S&amp;P red...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD10.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD10_0.jpg" style="width: 600px; height: 380px;" /></a></p> <p>&nbsp;</p> <p>We thought this was interesting, YTD performance of some of the crazier momo names...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD4.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD4_0.jpg" style="width: 600px; height: 578px;" /></a></p> <p>&nbsp;</p> <p>USDJPY and stocks lost some correlation late on...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD11.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD11_0.jpg" style="width: 600px; height: 357px;" /></a></p> <p>&nbsp;</p> <p>The disconnect between stocks and bonds is becoming irrationallerer...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD5.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD5_0.jpg" style="width: 600px; height: 343px;" /></a></p> <p>&nbsp;</p> <p>and HY energy credit names were hit hard today as stocks decoupled from credit after Europe closed...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD12.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD12_0.jpg" style="width: 600px; height: 335px;" /></a></p> <p>&nbsp;</p> <p>FX markets were dominated by a 2nd day of USD weakness/EUR strength but AUD weakness is also notable...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD3.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD3_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>But bonds were notably strong today with 30Y back under 3.00% and 7Y back under 2% - back at one-month lows... (2Y move is a roll so just look at today&#39;s action)</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD8.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD8_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>With a notable block trade popping up on TLT suggesting someone was forced to cover shorts... (note there was a big block sell in TBT at the same time)</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD2_0.jpg" /></a></p> <p>&nbsp;</p> <p>Silver rallied strongly, gold was flat but copper and crude oil was smacked hard today...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD7.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD7_0.jpg" style="width: 600px; height: 483px;" /></a></p> <p>&nbsp;</p> <p>As Crude dumped, pumped, and dumped on OPEC rumors...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD6.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD6_0.jpg" style="width: 600px; height: 451px;" /></a></p> <p>&nbsp;</p> <p>Trannies just can&#39;t make up its mind if low oil is good for them or not...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD14.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD14_0.jpg" style="width: 600px; height: 316px;" /></a></p> <p>&nbsp;</p> <p><em>Charts: Bloomberg</em></p> <p><strong>Bonus Chart: AAPL hits $700 billion market cap briefly as XOM and MSFT fight for their positions...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD9.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD9_0.jpg" style="width: 600px; height: 314px;" /></a></p> <p>&nbsp;</p> <p><strong>Bonus Bonus Chart: For those that enjoy it, we came very close to signalling another Hindenburg Omen today and we know what happened last time...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD13.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_EOD13_0.jpg" style="width: 600px; height: 509px;" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1170" height="669" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141125_EOD5.jpg?1416948146" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/texas-tea-treasury-yields-tumble-trannies-top-day#comments Copper Crude Crude Oil Equity Markets Momo OPEC Russell 2000 Volatility YTD Performance Tue, 25 Nov 2014 21:04:23 +0000 Tyler Durden 498268 at http://www.zerohedge.com Guest Post: The Federal Reserve Is At The Heart Of The Debt Enslavement System That Dominates Our Lives http://www.zerohedge.com/news/2014-11-25/federal-reserve-heart-debt-enslavement-system-dominates-our-lives <p><em>Submitted by <a href="http://theeconomiccollapseblog.com/archives/the-federal-reserve-is-at-the-heart-of-the-debt-enslavement-system-that-dominates-our-lives">Michael Snyder of The Economic Collapse blog</a>,</em></p> <p>From the dawn of history, elites have always attempted to enslave humanity.&nbsp; Yes, there have certainly been times when those in power have slaughtered vast numbers of people, but normally those in power find it much more beneficial to profit from the labor of those that they are able to subjugate.&nbsp; If you are forced to build a pyramid, or pay a third of your crops in tribute, or hand over nearly half of your paycheck in taxes, that enriches those in power at your expense.&nbsp; You become a &ldquo;human resource&rdquo; that is being exploited to serve the interests of others.&nbsp; <strong>Today, some forms of slavery have been outlawed, but one of the most insidious forms is more pervasive than ever.&nbsp; It is called debt, and virtually every major decision of our lives involves more of it.&nbsp;</strong> For example, at the very beginning of our adult lives we are pushed to go to college, and Americans have piled up more than 1.2 trillion dollars of <a href="http://theeconomiccollapseblog.com/archives/tag/student-loan-debt" title="student loan debt">student loan debt</a> at this point.&nbsp; When we buy homes, most Americans get mortgages that they can barely afford, and when we buy vehicles most Americans now stretch their loans out over five or six years.&nbsp; When we get married, that often means even more debt.&nbsp; And of course no society on Earth has ever piled up more credit card debt than we have.&nbsp; Almost all of us are in bondage to debt at this point, and as we slowly pay off that debt over the years we will greatly enrich the elitists that tricked us into going into so much debt in the first place.&nbsp; <strong>At the apex of this debt enslavement system is the Federal Reserve.&nbsp; As you will see below, it is an institution that is designed to produce as much debt as possible.</strong></p> <p><strong>There are many people out there that believe that the Federal Reserve is an &ldquo;agency&rdquo; of the federal government.&nbsp; But that is not true at all.&nbsp;</strong> The Federal Reserve is an unelected, unaccountable central banking cartel, and it has argued in federal court that it is &ldquo;<a href="http://www.wlf.org/Upload/legalstudies/legalopinionletter/102309Fleschert_LOL.pdf" target="_blank" title="&quot;not an agency&quot;">not an agency</a>&rdquo; of the federal government and therefore not subject to the Freedom of Information Act.&nbsp; The 12 regional Federal Reserve banks are organized &ldquo;<a href="http://www.federalreserveeducation.org/faq/topics/fed_basics.cfm" target="_blank" title="much like private corporations">much like private corporations</a>&ldquo;, and they actually&nbsp;<a href="http://www.federalreserveeducation.org/faq/topics/fed_basics.cfm" target="_blank" title="issue shares of stock">issue shares of stock</a> to the &ldquo;member banks&rdquo; that own them.&nbsp; 100 percent of the shareholders of the Federal Reserve are <a href="http://www.globalresearch.ca/who-owns-the-federal-reserve" target="_blank" title="private banks">private banks</a>.&nbsp; The U.S. government owns zero shares.</p> <p><strong>Many people also assume that the federal government &ldquo;issues money&rdquo;, but that is not true at all either.&nbsp; Under our current system, what the federal government actually does is borrow money that the Federal Reserve creates out of thin air.&nbsp;</strong> The big banks, the ultra-wealthy and other countries purchase the debt that is created, and we end up as debt servants to them.&nbsp; For a detailed explanation of how this works, please see my previous article entitled &ldquo;<a href="http://theeconomiccollapseblog.com/archives/where-does-money-come-from-the-giant-federal-reserve-scam-that-most-americans-do-not-understand" title="Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand">Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand</a>&ldquo;.&nbsp; When it is all said and done, the elite end up holding the debt instruments and we end up being collectively responsible for the endlessly growing mountain of debt.&nbsp; Our politicians always promise to get the debt under control, but there is never enough money to both fund the government and pay the interest on the constantly expanding debt.&nbsp; So it always becomes necessary to borrow even more money.&nbsp; When it was created back in 1913, the Federal Reserve system was designed to create <a href="http://themostimportantnews.com/archives/the-federal-reserve-systematically-transfers-wealth-from-the-taxpayers-to-the-ultra-wealthy-elite" target="_blank" title="a perpetual government debt spiral">a perpetual government debt spiral</a> from which it would never be possible to escape, and that is precisely what has happened.</p> <p><strong>Just look at the chart that I have posted below.&nbsp; Forty years ago, the U.S. national debt was less than half a trillion dollars.&nbsp; Today, it has exploded up to nearly 18 trillion dollars&hellip;</strong></p> <p><a href="http://theeconomiccollapseblog.com/archives/the-federal-reserve-is-at-the-heart-of-the-debt-enslavement-system-that-dominates-our-lives/national-debt-4" rel="attachment wp-att-8033"><img alt="National Debt" class="aligncenter size-large wp-image-8033" src="http://theeconomiccollapseblog.com/wp-content/uploads/2014/11/National-Debt-425x282.png" style="width: 600px; height: 398px;" /></a></p> <p>But the national debt is only part of the story.&nbsp; The big banks which control the Federal Reserve also seek to individually dominate our lives with debt.&nbsp; We have become a &ldquo;buy now, pay later&rdquo; society and the results have been absolutely catastrophic.&nbsp; 40 years ago, the total amount of debt in our system was just a shade over 2 trillion dollars.&nbsp; Today it is <strong>over 57 trillion dollars</strong>&hellip;</p> <p><a href="http://theeconomiccollapseblog.com/archives/the-federal-reserve-is-at-the-heart-of-the-debt-enslavement-system-that-dominates-our-lives/total-debt-5" rel="attachment wp-att-8032"><img alt="Total Debt" class="aligncenter size-large wp-image-8032" src="http://theeconomiccollapseblog.com/wp-content/uploads/2014/11/Total-Debt-425x282.png" style="width: 600px; height: 398px;" /></a></p> <p><strong>The big banks do not loan you money because they want to help you achieve &ldquo;the American Dream&rdquo;.&nbsp; The elitists loan you money because it will make them wealthier.&nbsp;</strong> For example, if you only make the minimum payment on a credit card each month, you will end up paying back several times as much money as you originally borrowed.&nbsp; It is a very insidious form of debt enslavement that most Americans simply do not understand.</p> <p>Meanwhile, the Federal Reserve is also systematically destroying the wealth that you already have.&nbsp; If you try to buck the system and actually save money, the purchasing power of that money is continually being eroded by the Federal Reserve&rsquo;s inflationary policies.&nbsp; The following chart comes directly from the Federal Reserve and it shows how the value of the U.S. dollar has plummeted over the past 40 years&hellip;</p> <p><a href="http://theeconomiccollapseblog.com/archives/the-federal-reserve-is-at-the-heart-of-the-debt-enslavement-system-that-dominates-our-lives/purchasing-power-of-the-dollar-3" rel="attachment wp-att-8031"><img alt="Purchasing Power Of The Dollar" class="aligncenter size-large wp-image-8031" src="http://theeconomiccollapseblog.com/wp-content/uploads/2014/11/Purchasing-Power-Of-The-Dollar-425x282.png" style="width: 600px; height: 398px;" /></a></p> <p><strong>Overall, the U.S. dollar has lost approximately 98 percent of its value since the Fed was first established in 1913.</strong></p> <p>Most people seem to assume that if we could just send the &ldquo;right politicians&rdquo; to Washington D.C. that we could get our economy back on the right track.</p> <p>What those people do not understand is that our system is fundamentally broken.&nbsp; We are trapped in a perpetual debt spiral that is destined to end in a horrifying collapse.&nbsp; Just &ldquo;tweaking&rdquo; a few things here or there and adjusting tax rates a bit is not going to fix anything.&nbsp; The vast majority of the &ldquo;economic solutions&rdquo; that our politicians talk about are basically equivalent to rearranging the deck chairs on the Titanic.</p> <p><strong>And of course the elite don&rsquo;t want the rest of us to truly understand what is going on.&nbsp; Just think about it.&nbsp; Even though the Federal Reserve is one of the most important institutions in our society, and even though it is at the very heart of our economic system, our kids are taught next to nothing about the Fed in school.&nbsp; The vast majority of them have absolutely no idea where money comes from.</strong></p> <p>Isn&rsquo;t that pathetic?</p> <p>But the elite know that if we did understand what they were doing to us that most of us would start to get very upset.&nbsp; Henry Ford, the founder of Ford Motor Company, once said the following&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.&rdquo;</p> </blockquote> <p><strong>The truth sets people free, so let us do what we can to wake our fellow Americans up to this insidious debt enslavement system which dominates our society.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="302" height="302" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141125_fed.jpg?1416943079" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/federal-reserve-heart-debt-enslavement-system-dominates-our-lives#comments Federal Reserve Ford Freedom of Information Act Guest Post National Debt Purchasing Power Washington D.C. Tue, 25 Nov 2014 20:55:00 +0000 Tyler Durden 498267 at http://www.zerohedge.com FT's Tett: Gold “Tangible” and “Clear”; People “Unnerved” About “Money” in “Bottomless Cyber Space” http://www.zerohedge.com/news/2014-11-25/fts-tett-gold-%E2%80%9Ctangible%E2%80%9D-and-%E2%80%9Cclear%E2%80%9D-people-%E2%80%9Cunnerved%E2%80%9D-about-%E2%80%9Cmoney%E2%80%9D-%E2%80%9Cbottomless-cyb <p><strong><a href="https://www.goldcore.com/Goldcore_blog/FT_s_Tett_Gold_Tangible_and_Clear_People_Unnerved_About_Money_in_Bottomless_Cyber_Space">FT's Tett: Gold “Tangible” and “Clear”; People “Unnerved” About “Money” in “Bottomless Cyber Space”</a></strong></p> <p>Gillian Tett, markets and finance commentator and an Assistant Editor and former U.S. Managing Editor of the Financial Times, looked at the increasing concerns about money today and the benefits of gold in an important article on Friday.</p> <p><a href="http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart1_25-11-14.png" /></a><br /> <em><strong>Gillian Tett, FT Assistant Editor</strong></em></p> <p>The article’s introduction pointedly states:</p> <p><strong>“Ordinary people are unnerved about how money works in a bottomless cyber space. Gold seems tangible, clear and timeless”</strong></p> <p>She refers to numerous examples of how finite gold is taking a more prominent place in the public consciousness as a monetary asset and as money.</p> <p>She mentions the Swiss gold referendum which will take place on Sunday and how at least a very large minority of the Swiss population prefer gold-backed currency to fiat. She also mentions Rand Paul of the U.S. Republican party who favours greater use of gold as currency.</p> <p>She makes some important points regarding gold being tangible and finite in a world of trillion dollar central bank experiments and a risky “ethereal” or intangible cyberspace:</p> <p><em><strong>“Most ordinary people have no idea what central banks are really doing, with their trillion-dollar experiments. They are unnerved about how money works in a bottomless cyber space. But the beauty of gold is that it seems tangible, clear and finite. It also seems timeless, creating an impression of permanent, intrinsic value.</strong></em></p> <p><em><strong>Of course, this image is – ironically – also an illusion. You cannot actually do anything practical with gold (as you can, say, with a lump of coal). Its value, like that of fiat currency, depends on social convention. But culture, as Greenspan now recognises, is a very powerful thing – especially in a world of finance that is rushing more deeply into ethereal cyberspace every day.”</strong></em></p> <p>We have long made the point that owning all your assets - whether they be investments, savings, deposits, crypto currencies or even gold in a digital format with dependency on a single company and its websites, platforms, I.T., applications, the internet and electricity is imprudent.&nbsp;</p> <p>This rise in interest in gold among the public is based on the fact that monetary affairs are completely beyond the control of average citizens.</p> <p>Before the crisis of 2008, it seemed irrelevant to the average working person. Years of austerity are now causing average people to look more closely at the system only to find it incomprehensible and unstable. The growing divide between the super-rich and everybody else is leading them to conclude that the current system is shambolic and simply not working.</p> <p>We find it very encouraging that Tett should put gold back on the agenda of such a widely read financial publication as the Financial Times. It may herald the start of a more balanced discussion of gold.</p> <p>This seems possible, given recent developments, such as the ECB's recent suggestion that they may buy gold in an EU QE or with the Dutch central banks repatriation of a large amount of it's sovereign gold and, of course, the recent statements of Alan Greenspan himself.</p> <p>The backdrop to her article was her recent interview with Alan Greenspan at the CFR whose comments reverberated around the gold blogosphere but was largely ignored by the mainstream media.</p> <p><a href="http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart2_25-11-14.png" /></a><br /> <em><strong>Alan Greenspan, Ex Fed Chairman</strong></em></p> <p>Greenspan, who chaired the Federal Reserve from 1987 till 2006 stated in this interview at the Council on Foreign Relations that <em><strong>“gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.”</strong></em></p> <p>Coming from the most influential central banker in recent history this was regarded as quite the admission.&nbsp;</p> <p>In Greenspan's early career he was an advocate of the gold standard. But during his long tenure at the Fed he was a practitioner of loose monetary policies - the very policies that a gold standard is designed to curtail.</p> <p>Many now regard Greenspan as a primary, though perhaps unwitting, architect of today's monetary turmoil. Tett refers to a comment by a former colleague of Mr. Greenspan - dismissing his elevation of gold on the basis of his poor performance in the run up to the crisis.</p> <p>While we agree that Greenspan's legacy is a tarnished one, we also recall his statement to <a href="https://www.youtube.com/watch?v=d1GcwYq-9j4"><span style="text-decoration: underline;">Marc Faber</span></a> at the New Orleans Investment Conference last month where he said "I never said the central bank is independent."</p> <p>At that conference he also stated that the Federal Reserve was sitting on <em><strong>"a pile of tinder"</strong></em> and that gold would go <em><strong>"measurably higher."</strong></em></p> <p>Tett has a record of unbiased analysis and commentary regarding the gold markets. In 2011 she suggested that it would be "foolish to simply deride or ignore" the Gold Anti-Trust Action Committee (GATA).&nbsp;</p> <p>GATA's contention of manipulation of the gold markets have now been borne out.</p> <p>Tett is highly respected both in journalism but also in financial and economic circles. In her previous roles, she was U.S. Managing Editor and oversaw global coverage of the financial markets. In March 2009 she was Journalist of the Year at the British Press Awards. In June 2009 her book Fool’s Gold won Financial Book of the Year at the inaugural Spear’s Book Awards.</p> <p>In 2007 she was awarded the Wincott prize, the premier British award for financial journalism, for her capital markets coverage. She was British Business Journalist of the Year in 2008.&nbsp;</p> <p>Tett’s important FT article can be read in full on the FT <a href="http://www.ft.com/intl/cms/s/0/4526301c-7042-11e4-bc6a-00144feabdc0.html#axzz3K4lgkcbv"><span style="text-decoration: underline;">here</span></a> or for those without a subscription it can be read <a href="http://www.bdlive.co.za/opinion/columnists/2014/11/24/greenspan-unequivocal-on-pitfalls-of-quantitative-easing"><span style="text-decoration: underline;">here. </span></a>&nbsp;</p> <p><strong>Get Breaking News and Updates On Gold Markets <em><a href="http://info.goldcore.com/goldcore_email_subscription_preferences"><span style="text-decoration: underline;">Here</span></a></em></strong></p> <p><strong><em><span style="text-decoration: underline;"><br /></span></em></strong></p> <p><strong>MARKET UPDATE</strong><br /> Today’s AM fix was USD 1,202.25, EUR 966.59 and GBP 767.04 per ounce.<br /> Yesterday’s AM fix was USD 1,196.00, EUR 964.67 and GBP 764.51 &nbsp;per ounce.</p> <p>Gold dipped 0.2% in light trading yesterday &nbsp;to close just above $1,196 as rising global equities reduced demand for safe havens. The other precious metals also closed lower, with silver slipping 0.1% while platinum and palladium gave up 1.7% and 0.4%, respectively.<br /> <a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart3_25-11-14.png"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart3_25-11-14.png" /></a><br /> <em><strong>EUR in USD - YTD 2014 (Thomson Reuters)</strong></em></p> <p>The dollar was firm ahead of U.S. economic data (GDP and consumer confidence), and the market awaits the Swiss referendum on central bank gold reserves for more trading cues on Sunday. A yes vote will lead to fireworks in the gold market and higher prices.</p> <p><strong>HSBC</strong>, commenting on the Swiss vote, says: "The impact of a ‘yes’ vote could quickly translate into prices and <strong>take gold as much as $50/oz higher</strong>. The impact on gold of a “yes” vote on the gold market could be notable. On a basic level, a ‘yes’ vote would require the SNB to increase bullion stocks. But it would also be a strong signal in support of the utility of gold and may help galvanize the bullion market, which has seen steep declines since the beginning of 2013.</p> <p>Bullion prices were also lifted by news that China's net gold imports from conduit Hong Kong rose to 77.628 tonnes in October from 68.641 tonnes in September, as the world's largest gold buyer saw strong demand for jewellery and <a href="https://www.goldcore.com/products_services/storage"><span style="text-decoration: underline;">bullion coins and bars</span></a>.</p> <p>Holdings in gold-backed ETP’s rose 1.6 metric tons to 1,617.8 tons as of yesterday, gaining for a second session, while still close to a five-year low, according to Bloomberg data.<br /> Silver for immediate delivery advanced 1.4% to $16.7237 an ounce, rising for a fourth day in the longest run of gains since June 26. Platinum climbed 1.4% to $1,221.63 an ounce. Palladium gained 0.5% to $796.25 an ounce.</p> <p><a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_25-11-14.png"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_25-11-14.png" /></a><br /> <em><strong>Silver in USD - 2 Years (Thomson Reuters)</strong></em></p> <p><strong>Sales of gold American Eagle coins from the U.S. Mint </strong>have already outstripped last November's total with nearly another week of the month to go, standing at 53,000 oz this month compared to 48,000 oz in November last year.</p> <p><a href="https://www.goldcore.com/products_services/bullion"><span style="text-decoration: underline;">Silver Amrican Eagle</span></a><strong> </strong> <strong>sales</strong> are at 3.096 million oz, up from 2.3 million oz in November last year and on track for a record year of sales.<br /> China’s gold demand remains very robust as seen in Shanghai Gold Exchange (SGE) deliveries and Hong Kong gold exports to China .&nbsp;</p> <p>China's net gold imports from main conduit Hong Kong rose to 77.628 tonnes in October from 68.641 tonnes in September as the world's biggest consumer saw strong demand for jewellery and bars. Total imports from Hong Kong to the mainland rose to 111.409 tonnes last month from 91.745 tonnes in September, according to data e-mailed to Reuters by the Hong Kong Census and Statistics Department.</p> <p> <strong>Essential Guide to <a href="http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland">Storing Gold and Silver In Switzerland</a></strong></p> <p><a href="https://www.goldcore.com">www.GoldCore.com</a></p> http://www.zerohedge.com/news/2014-11-25/fts-tett-gold-%E2%80%9Ctangible%E2%80%9D-and-%E2%80%9Cclear%E2%80%9D-people-%E2%80%9Cunnerved%E2%80%9D-about-%E2%80%9Cmoney%E2%80%9D-%E2%80%9Cbottomless-cyb#comments Alan Greenspan Capital Markets Central Banks China Consumer Confidence Federal Reserve Hong Kong Marc Faber New Orleans Precious Metals Reuters Switzerland Tue, 25 Nov 2014 20:39:38 +0000 GoldCore 498254 at http://www.zerohedge.com Forget Ferguson, 244 Teenagers Have Been Shot In Chicago Since Michael Brown Died http://www.zerohedge.com/news/2014-11-25/forget-ferguson-244-teenagers-have-been-shot-chicago-michael-brown-died <p>While the events down in Ferguson play out, <strong>back in Chicagoland, <a href="http://heyjackass.com/">HeyJackass reports</a> that the same old bullshit continues day in and day out with nary a peep</strong>. In the 107 days since officer Darren Wilson shot and killed 18 year old Michael Brown – 12:03pm, Saturday, August 9th – the following stupidity has taken place in Chicago:</p> <ul> <li><strong>155 homicides (74% black males)</strong></li> <li><strong>725 shot &amp; wounded</strong></li> <li>Six (6) 18 year olds killed: Kawantis Montgomery, Kamaal Burton, Tony McIntos, Alexandra Burgos, Rayvon Little, Johnathan Cartwright</li> <li>59 18 year olds shot &amp; wounded</li> <li>29 teenagers (13-19) killed</li> <li><strong>244 teenagers (13-19) shot and wounded</strong></li> <li><strong>10 shot (5 killed) by the CPD</strong></li> </ul> <p>Brutal, yet incredibly asinine and absurd to say the least.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_chi1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_chi1.jpg" width="318" height="289" /></a></p> <p>&nbsp;</p> <p><strong>So what is it about these stats that hasn’t caused people to lose their collective shit?</strong></p> <p>After all, there have been plenty of opportunities to march, chant, throw shit, break stuff, come up with a hashtag, etc… in the past few months, not only in Chicago, but all over the nation. So where is the national media? The cable news talking heads? <strong>The race pimpin’ super duo of Jesse and Al? The professional agitators and social justice warriors? The exploiting politicians?</strong> Almost 900 shootings and homicides in the past three months and not one is worthy of their attention.</p> <p>Someone from ‘round these parts once said <span style="text-decoration: underline;"><strong>“never let a crisis go to waste”. Apparently these stats aren’t crisis-y enough.</strong></span></p> <p>*&nbsp; *&nbsp; *</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_jackass.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_jackass_0.jpg" width="600" height="729" /></a></p> <p><a href="http://heyjackass.com/"><span style="text-decoration: underline;"><strong>Click here for full Chicago breakdown</strong></span></a></p> <p>&nbsp;</p> <p><a href="http://heyjackass.com/"><em>Source: HeyJackass</em></a></p> http://www.zerohedge.com/news/2014-11-25/forget-ferguson-244-teenagers-have-been-shot-chicago-michael-brown-died#comments Tue, 25 Nov 2014 20:29:54 +0000 Tyler Durden 498266 at http://www.zerohedge.com Caption Contest: Kerry Confusion Edition http://www.zerohedge.com/news/2014-11-25/caption-contest-kerry-confusion-edition <p><em>"Isolated?"</em></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_kerry.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_kerry_0.jpg" width="600" height="441" /></a></p> <p>&nbsp;</p> <p><em>Source: @Haaretz</em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="581" height="427" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141125_kerry.jpg?1416946166" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/caption-contest-kerry-confusion-edition#comments Tue, 25 Nov 2014 20:09:36 +0000 Tyler Durden 498265 at http://www.zerohedge.com Hacked US Documents Said To Reveal Extent Of Undisclosed US "Lethal Aid" For Ukraine Army http://www.zerohedge.com/news/2014-11-25/hacked-us-documents-said-reveal-extent-undisclosed-us-lethal-aid-ukraine-army <p>It has been half a year since it was first revealed that the US has been sending <em><strong>non-lethal </strong></em>aid to the Ukraine: recall that it was in <a href="http://www.usatoday.com/story/news/nation/2014/06/05/us-sending-advisers-gear-to-ukraine-/10046845/">early June </a>when Obama announced he had approved $5 million in body armor, night vision goggles and additional communications equipment for the Ukrainian military.</p> <p>Since then the topic of whether or not to arm the Ukraine army in its civil war against the separatist eastern region has been a hot topic as recently as today, <a href="http://www.voanews.com/content/merits-of-giving-ukraine-lethal-aid-debated/2533302.html">when VOA reported </a>that "U.S. Vice President Joe Biden has condemned what he calls Russia’s “aggression” in Ukraine, <strong>but stopped short of saying the United States will provide Ukraine with lethal aid... </strong>the White House nominee to fill the number two position at the State Department has said the United States should consider giving Ukraine lethal military equipment."</p> <p>However, as lately has been a recurrent theme, the Obama administration may not have been exactly forthright with the public or the facts. At least that is the conclusion based on hacked <a href="http://cyber-berkut.org/en/">documents released earlier today </a>by the Ukrainian hackers group CyberBerkut, which reveal that despite assurances to the contrary, the US has in fact been providing substantial lethal aid to Ukraine's armed forces.</p> <p>As <a href="http://sputniknews.com/world/20141125/1015143794.html">Sputniknews reports</a>, "according to the hackers, the information was obtained during the visit of US Vice President Joe Biden to Ukraine last week, when they were able to access confidential State Department documents via a mobile device of a US delegation member."</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"After examination of&nbsp;just a several files there is the impression that the Ukrainian army is the branch of&nbsp;US Armed Forces. The volume of&nbsp;US financial assistance amazes with&nbsp;its scale. They also show the highest level of&nbsp;degradation of&nbsp;the Ukrainian Armed Forces. Besides, thousands of&nbsp;dollars go on&nbsp;personal accounts of&nbsp;military personnel and used by&nbsp;certain officers in&nbsp;personal needs. What will the American taxpayers say?" the statement published on&nbsp;the official <a href="http://cyber-berkut.org/en/" target="_blank">CyberBerkut web page</a> said.</p> </blockquote> <p>Sorry, but the American taxpayers are too busy with other more pressing matters, than policing how their government spends their money.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Other documents published by&nbsp;the hackers indicate that Washington is ready to&nbsp;supply Ukraine with "<strong>400 units of&nbsp;sniper rifles, 2,000 units of&nbsp;assault rifles, 720 hand grenade launchers, nearly 200 mortars and more than&nbsp;70,000 shells for&nbsp;them, 150 stingers and 420 anti-tank missiles</strong>."</p> </blockquote> <p>The leaked documents presented below have not been verified so take them with a grain of salt, although it is worth recalling that it was a hacked leak of Victoria Nulan's conversation in February 2014 that revealed that extent of behind the scenes meddling by the US State Dept in Ukraine's internal affairs just ahead of the presidential coup.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015142983.png" width="574" height="771" /></p> <p>The Naval Command asks US to sponsor Ukrainian officers during military exercises headed by the Pentagon on the Ukraine territory</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.1.PNG"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.1_0.PNG" width="574" height="782" /></a></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.2.PNG"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.2_0.PNG" width="574" height="797" /></a></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.3.PNG"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/2.3_0.PNG" width="574" height="784" /></a></p> <p>Document allegedly showing an order which has the US Dept of Defense "donating" tens of millions for Ukraine purchases of US defensive equipment.</p> <p>&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144088.png" width="575" height="757" /></p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144244_0.png" width="574" height="316" /></p> <p>The Army Academy Named After Hetman Petro Sagaydachnyi asks to cover exercise expenditures for meals and incidentals of eleven officers and one civilian</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144398.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144398_0.png" width="574" height="730" /></a></p> <p>&nbsp;</p> <p>These documents below show the signatures of Barak Obama and John Kerry. The United States will provide Ukrainian Armed Forces with counter-mortar radars</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144477.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144477_0.png" width="574" height="720" /></a></p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144488_0.png" width="574" height="556" /></p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015144501_0.png" width="574" height="510" /></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145187.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145187.png" width="554" height="781" /></a></p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145204.png" width="552" height="511" /></p> <p>400 sniper-rifles, 2,000 assault-rifles, 720 hand-held grenade launchers, 200 mortars with more than 70,000 mines, 150 stingers, 420 antitank missiles and so on</p> <p>&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145408_0.png" width="574" height="403" /></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145414.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/1015145414_0.png" width="574" height="405" /></a></p> <p>Ukraine's Naval Forces receive equipment for 150 combat divers</p> <p>* * *</p> <p><em>The following pdf is said to contain the full list of US military aid to Ukraine (<a href="http://cyber-berkut.org/docs/5.pdf">link</a>)<br /></em></p> <p><em><br /></em></p> <p><iframe src="https://www.scribd.com/embeds/248209057/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-k1vJSBRXh82gEWBD69Fl&amp;show_recommendations=false" width="100%" height="600" frameborder="0" scrolling="no"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="275" height="183" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/ukraine%20army%202.jpg?1416943309" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/hacked-us-documents-said-reveal-extent-undisclosed-us-lethal-aid-ukraine-army#comments Joe Biden Obama Administration Ukraine White House Tue, 25 Nov 2014 19:46:35 +0000 Tyler Durden 498264 at http://www.zerohedge.com Another Keynesian Debt Boondoggle: How Brussels Plans To Turn $26 Billion Into $390 Billion http://www.zerohedge.com/news/2014-11-25/another-keynesian-debt-boondoggle-how-brussels-plans-turn-26-billion-390-billion <p><a href="http://davidstockmanscontracorner.com/another-keynesian-debt-boondoggle-how-brussels-plans-to-turn-26-billion-into-390-billion/"><em>Submitted by David Stockman via Contra Corner blog</em></a>,</p> <p><strong>The desperation and fraud of the&nbsp;Keynesian policy apparatus gets more stunning by the day. </strong>Apparently, the pettifoggers in Brussels will soon&nbsp;be announcing a new $400 billion bazooka to blast the euro-economy out of its lethargy. This massive new &ldquo;stimulus&rdquo; is&nbsp;supposed to spur all manner of infrastructure and private investment that is purportedly&nbsp;bottled-up for want of cheap capital in the private markets.</p> <p><u><strong>Are they kidding?</strong></u> Thanks to the Draghi Put (&ldquo;whatever it takes&rdquo;)&nbsp;and the hedge fund gamblers who have&nbsp;gone all-in front running the promised ECB bond-buying campaign, this very morning&nbsp;the corrupt and bankrupt government of Spain can borrow all the money it could possibly need for infrastructure at hardly 2.0% for ten years. And any healthy German exporter or machinery maker can borrow at a small spread off the German 10-year bond which is trading at&nbsp;73 basis points. For all intents and purposes, sovereigns of any stripe and reasonably healthy businesses in most parts of Europe can access capital at&nbsp;central bank repressed rates which are tantamount to free money.</p> <p><strong>And, yet,&nbsp;these fools want to bring coals to Newcastle. </strong>Well, its actually worse than that because not only does Newcastle not need any coal, but the impending &ldquo;Juncker Plan&rdquo; doesn&rsquo;t include any new coal, anyway!</p> <p><strong><u>In fact,&nbsp;not a penny of the&nbsp;$400 billion is&nbsp;new EU cash: Its&nbsp;all about&nbsp;leverage and sleight-of-hand.</u></strong> Thus, having apparently failed to notice that most of the sovereigns which comprise the EU are already bankrupt, the Brussels bureaucrats plan to conjure this new &ldquo;stimulus&rdquo;&nbsp;money at a 15:1 leverage ratio.&nbsp;That is to say,&nbsp;the actual&nbsp;&ldquo;capital&rdquo;&nbsp;under-pinning approximately $375 billion in new EU borrowings amounts to only $26 billion.</p> <p>But wait. The EU is self-evidently broke&mdash;that&rsquo;s why its dunning Mr. Cameron and even its Greek supplicants for back taxes&mdash;so where is it going to get the $26 billion of &ldquo;capital&rdquo;? Needless to say, an empty treasury has never stopped Keynesian bureaucrats from dispensing the magic elixir of &ldquo;stimulus&rdquo; money.</p> <p><strong><u>Thus, it turns out that $20 billion of the Juncker Plan &ldquo;capital&rdquo; will consist of member state &ldquo;guarantees&rdquo;, not cash in hand. </u></strong>And the remaining $6 billion will consist of already existing European Investment Bank (EIB)&nbsp;funds&mdash;&ndash;money that is available only because the EIB&rsquo;s&nbsp; balance sheet&nbsp;is&nbsp;also &ldquo;guaranteed&rdquo; by the same bankrupt member-states which don&rsquo;t have another nickel to send to Brussels in the first place.</p> <p><strong>This is called a circle jerk in less polite company. </strong>And a pointless one at that.</p> <p>According to the attached&nbsp;Bloomberg story, the $400 billion pot of stimulus will be used for &ldquo;seeding investment in infrastructure&rdquo;&nbsp; and&nbsp;&ldquo;to share the risks of new projects with private investors&rdquo;.</p> <p>Let&rsquo;s see.&nbsp; <strong>Can even the duplicitous apparatchiks in Brussels believe that the continent is parched for public infrastructure and that this explains Europe&rsquo;s stagnation?</strong> After all, the peripheral countries are not only buried in debt, but also have been inundated over the past two decades&nbsp;with&nbsp;every manner of highways, public transit and other public facilities that EU funds and their own bloated&nbsp;government budgets could buy.</p> <p>Spain has world class roads going&nbsp;everywhere&nbsp;on the Peninsula, for example, but its problem is want of loaded trucks to utilize them. The same is true in Italy, which has splendid roads, rails, airports and seaports from the Alps to the tip of the&nbsp;boot, but a private economy that is suffocating in taxes, regulation and corruption. Nor can it be gainsaid that France&rsquo;s high-speed rail system, Germany&rsquo;s autobahns or Holland&rsquo;s canals and dykes have been neglected.</p> <p>Indeed, to a substantial degree Europe&rsquo;s sovereign debt crisis is owing to the fact that under the tutelage of its Keynesian policy apparatus, it has been absolutely profligate in&nbsp;building infrastructure owned by the public or subsidized in behalf of crony capitalist &ldquo;partners&rdquo;. So why at this&nbsp;late stage of the game does Brussels feel compelled to launch a&nbsp;giant financial shell&nbsp;game designed to generate even more unaffordable infrastructure?</p> <p>The&nbsp;same question holds for private investment.&nbsp;The very idea that the European economies are &ldquo;under-invested&rdquo; in private production capacity is truly laughable.&nbsp;What actually&nbsp;occurred after the mid-1990s, as the single market and single currency went into full swing, was a tsunami of private borrowing and investment.</p> <p><em><strong>Between 1996 and 2011, for example, euro bank loans to the private sector nearly tripled, rising at a 7.0% compound rate and leaping from&nbsp;55% of&nbsp;GDP&nbsp;to 95% during the period.&nbsp;</strong> </em>Nor does that include the additional trillions which were raised in the euro and dollar bond markets by business&rsquo; located in the EC.</p> <p><img alt="Historical Data Chart" id="ctl00_ContentPlaceHolder1_ctl00_ChartUC1_ImageChart" src="http://www.tradingeconomics.com/charts/euro-area-loans-to-private-sector.png?s=emu%2cevolvloatoprisec&amp;d1=19960101&amp;d2=20141231" style="height: 275px; width: 601px;" /></p> <p>The plateauing since then is self-evidently not owing to the scarcity of capital or borrowers being rationed out of the market by punitively high interest rates. No, the problem is that there are few&nbsp;credit worthy&nbsp;borrowers left who actually need funds for projects that will generate profitable returns.</p> <p><img alt="Historical Data Chart" id="ctl00_ContentPlaceHolder1_ctl00_ChartUC1_ImageChart" src="http://www.tradingeconomics.com/charts/euro-area-interbank-rate.png?s=emu%2cevolvintrat&amp;d1=20080101&amp;d2=20141231" style="height: 275px; width: 601px;" /></p> <p><strong>In short, the &ldquo;Juncker Plan&rdquo; is just another installment of the state-driven financialization that has been 180 degrees off-target, and has actually compounded Europe&rsquo;s economic malaise. </strong>The real problem is statist economics&mdash;-that is, welfare state subsidies for&nbsp;inefficiency and non-production,&nbsp;dirigisme and financialization.</p> <p>Europe has high unemployment, vanishing growth and crushing debts because its all-in&nbsp;labor costs are too high owing to&nbsp;government labor&nbsp;mandates, brutal rates of payroll taxation,&nbsp;coddled unions and subsidized idleness.&nbsp;Likewise, business enterprise, productivity and innovation is thwarted by a triple layer of local, national and EU regulation and nanny-state interference that puts the red capitalists of Beijing to shame.</p> <p><u><strong>Stated differently, what is left of European capitalism needs to be liberated from the dead hand of the state.</strong></u> But the crisis of growth, employment and debt that&nbsp;today&rsquo;s insidious&nbsp;regime of statist Keynesian economics has generated, ironically, is pushing the EC in just the opposite direction. That is, to even more interventionist&nbsp;obstacles to prosperity&mdash;- arising from the even more rigid,&nbsp;remote and destructive levels of centralization in the&nbsp;Brussels bureaucracies.</p> <p>Needless to say, this latest&nbsp;$400 billion shell game is just another monument to the Keynesian paint-by-the numbers affliction that is corroding capitalist prosperity everywhere in the world. When the state tries to micromanage the economy through fiscal maneuvers and central bank intervention it ends up confusing sustainable generation of&nbsp;real wealth with transient&nbsp;headline numbers in the GDP accounts. Indeed, the former can not be generated or targeted by the state at all; it is an unplanable&nbsp;outcome produced by millions of producers, consumers, savers,&nbsp;investors, innovators and entrepreneurs in the real main street economy.</p> <p>Long ago, Keynes himself pointed out, perhaps inadvertently,&nbsp;the <strong>profound difference between GDP and wealth</strong>. If we merely want a higher GDP print - which measures spending, not wealth - governments should handout spoons so that millions of citizens&nbsp;can dig holes and millions more refill them.&nbsp;<strong>It would appear that the statesmen of Brussels are fixing to try the modern day equivalent of just that.</strong></p> <p><a href="http://www.bloomberg.com/news/2014-11-23/how-the-eu-plans-to-turn-26-billion-into-390-billion.html"><em><strong><span class="author">By Rebecca Christie at Bloomberg News</span></strong></em></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>he European Union is planning a 21 billion-euro ($26 billion) fund to share the risks of new projects with private investors, two EU officials said.</p> <p>&nbsp;</p> <p>The new entity is designed to have an impact of about 15 times its size, making it the anchor of the EU&rsquo;s 300 billion-euro investment program, according to the officials, who asked not to be named because the plans aren&rsquo;t final. European Commission President <a href="http://topics.bloomberg.com/jean--claude-juncker/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Jean-Claude Juncker</span></span></a> is due to announce the three-year initiative this week.</p> <p>&nbsp;</p> <p>The commission will pledge as much as 16 billion euros in guarantees for the vehicle, which will also include 5 billion euros from the <a href="http://topics.bloomberg.com/european-investment-bank/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">European Investment Bank</span></span></a>, the officials said. Loans, lending guarantees and stakes in equity and debt will be part of its toolbox, with the goal to jumpstart private risk-taking so that stalled projects can get off the ground.</p> <p>&nbsp;</p> <p>Juncker&rsquo;s investment plan aims to combine EU resources and regulatory changes &ldquo;to crowd in more private investment in order to make real investments a reality,&rdquo; EU Vice President <a href="http://topics.bloomberg.com/jyrki-katainen/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Jyrki Katainen</span></span></a> said on Nov. 14 in Bratislava. The plan is one element of the EU&rsquo;s economic strategy and &ldquo;not a magic wand with which we will be able to miraculously invest ourselves out of a difficult economic climate,&rdquo; he said.</p> <p>&nbsp;</p> <p><a href="http://topics.bloomberg.com/europe/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Europe</span></span></a> is struggling to spur economic growth as it emerges only slowly from waves of crisis. The 18-nation euro area is forecast to see growth of just 0.8 percent this year, according to EU forecasts, while the region&rsquo;s unemployment rate of 11.5 percent masks rates of about 25 percent in <a href="http://topics.bloomberg.com/greece/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Greece</span></span></a> and in <a href="http://topics.bloomberg.com/spain/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Spain</span></span></a>.</p> <h2>&lsquo;What We Must&rsquo;</h2> <p>The euro is on course for a fifth monthly decline after European Central Bank President <a href="http://topics.bloomberg.com/mario-draghi/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Mario Draghi</span></span></a> said last week that ECB officials &ldquo;will do what we must&rdquo; to spur inflation. The single currency was little changed at $1.2404 against the <a href="http://topics.bloomberg.com/u.s.-dollar/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">U.S. dollar</span></span></a> at 7:38 a.m. in <a href="http://topics.bloomberg.com/london/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">London</span></span></a> after declining 1.2 percent on Nov. 21.</p> <p>&nbsp;</p> <p>While the Juncker proposal involves seeding investment in infrastructure and other fields, the 21 billion-euro sum with a proposed leverage rate of 15 times risks disappointing markets.</p> <p>&nbsp;</p> <p>Even with additional funds of 30 billion euros and a more modest leverage rate of 10 times, &ldquo;the plan may not be credible as a start,&rdquo; Royal Bank of Scotland Plc analysts including <a href="http://topics.bloomberg.com/alberto-gallo/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Alberto Gallo</span></span></a> said Nov. 18. All the same, if the <a href="http://topics.bloomberg.com/european-central-bank/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">European Central Bank</span></span></a> became involved in joint action with the EIB, &ldquo;it could be a game changer for Europe,&rdquo; they said.</p> <h2>Broad Range</h2> <p>The fund is designed to make use of existing resources and not require any new cash infusions from member nations, the EU officials said. The EIB will house the fund, which will have its own management and be able take on a broad range of roles. It will be able to operate with fewer restrictions than earlier initiatives, like a project-bond program that is only available to cross-border ventures.</p> <p>&nbsp;</p> <p>The EU is preparing a list of projects alongside that could take shape quickly. Because the fund will be able to bear some of the risk of starting projects, it may offer a way around national budget constraints and private-sector reluctance to take on new risk, according to the officials.</p> <p>&nbsp;</p> <p>&ldquo;We need a step change in efforts to tackle the obstacles hampering private investment and to optimize the use of public investment in Europe,&rdquo; <a href="http://topics.bloomberg.com/emma-marcegaglia/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Emma Marcegaglia</span></span></a>, president of the BusinessEurope federation of employer groups, said on Nov. 21.</p> <p>&nbsp;</p> <p>The group released a <a href="http://www.businesseurope.eu/Content/Default.asp?PageID=568&amp;DocID=33551" rel="external" target="_blank" title="Open Web Site"><span style="text-decoration: underline;"><span style="color: #0066cc;">report</span></span></a> on investment in Europe calling for the EU to lower national barriers, improve regulation and lower the costs of doing business inside the 28-nation bloc.</p> </blockquote> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="452" height="365" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141125_eumagic.jpg?1416929451" /> </div> </div> </div> http://www.zerohedge.com/news/2014-11-25/another-keynesian-debt-boondoggle-how-brussels-plans-turn-26-billion-390-billion#comments Bloomberg News Bond Corruption European Central Bank European Union France Free Money Front Running Germany Greece Italy Keynesian economics Main Street Reality Royal Bank of Scotland Sovereign Debt Sovereigns Unemployment Tue, 25 Nov 2014 19:22:50 +0000 Tyler Durden 498263 at http://www.zerohedge.com