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What Happened The Last Time The Fed's Balance Sheet Hit 25% Of GDP
Ever since the Fed launched its unprecedented, unsterilized debt monetization rampage known as quantitative easing, coupled with seven years zero interest rates, there has been much confusion about how the Fed will achieve two gargantuan tasks: i) hike rates, and ii) reduce the amount of holdings on its balance sheet. The quandary, according to conventional wisdom, is magnified because something like this "has never been done before."
Conventional wisdom is wrong: something like this has been done before; the reason why nobody wants to talk about it is because it ended in epic disaster.
The chart below shows the Fed's balance sheet expressed as a % of GDP: it has grown from its long-term "normal" 5% to just over 25%.
Never before has this happened, right? Wrong.
As the following chart below shows, the Fed's response to the first (not to be confused with the current) great depression was, drumroll, identical.
Whereas the Fed's balance sheet expressed as a % of GDP was humming along nicely largely at just over 5% in the period ever since the Fed was created in 1913, things got promptly out of control when the Great Depression hit in 1929. At that point the Fed's balance sheet grew from 5% to just shy of 25% at its peak. Maybe there is a reason why some call the current period the second great depression...
More to the point, last night we showed that the first Great Depression period is comparable to the current time period not only in being a mirror image of the Fed's balance sheet, but also of interest rates, which by necessity had to be virtually zero in a time when the Fed was monetizing assets to stimulate aggregate demand. And so they were... until 1937, when the Fed hiked rates.
As we showed yesterday, what happened next was that a little over a year after the Fed hiked rates for the first time, the Dow Jones tumbled, plunged by 50% in March 1938 (the S&P500 in its current form would not appear for another 20 years).
But that was the topic of last night's post. What we want to emphasize here is what happened after. Because as the market crashed and the economy collapsed yet again in the last such acute episode of the Great Depression, something far more historic than a simple market collapse took place.
In other words, from the first rate hike by a Fed whose balance sheet as a % of GDP was nearly identical to the current one, to the start of World War II: less than three years.
We truly hope this time its different, although judging by today's dramatic return of the nuclear arms race and the countless war zones across the middle east and Africa, slowly all the increasingly militarized geopolitical events are falling into place.
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Idiot politicians never learn a damn thing from history, and we are the ones condemned to repeat it...
Great! Fightin' the krauts and nips again.
this time it's (totally fucking) different...
for the first time in US history the largest segment of our working population is 55+ while all younger groupings are declining...
this is the last act of a very bad play...we should all be asking for a refund.
http://econimica.blogspot.com/2015/06/random-thoughts-as-we-circle-drain.html
http://econimica.blogspot.com/2015/05/2008-was-tremorwhy-main-event-is-still.html
Yep... The "Germans bombed Pearl Harbor" then all hell broke lose.
(Animal House)
The Germans were accused of all sorts of things
https://www.youtube.com/watch?v=68V1-2OGeYw
That is interesting because guess what boys and girls? Jade Helm started yesterday (yes, they bumped it up a month)!
Yes we had a party. I hope they don't go running through my property in the dead of night without night goggles. I take my designation "Pocket Insurgency" seriously.
Miffed
Hmmmm.
What happened the last time we had 30 million illegals collecting welfare,and camping out wherever they damn well please?
what this article fails to highlight is that the Fed's b/s hit 25% AFTER ww2 was over, and only went parabolic after the war started (implying monetary financing of war materials). we went to 25% twice as fast this time and without a global war. i've typed this before--until i was blue in the fingers--but this time is different: this monetization is the death rattle of the western nanny states. what comes after this may well be another global war, but with our national accounts in such a sorry state, it will be a war we fight from the back foot. but, it could just as easily be a war amongst ourselves--instead of the classical euro nonsense--as the ideologies which ahve brought us to this precipice are entrenched and unwilling to concede an inch of their privledges.
what is scarey is the back foot is quit the arsenal of high tech killing devices being commandered by zioneocons. hmmm, not so good of a warm fuzzy fucking sinking shit thought...
Nowadays, since everything is moving faster... i would say 3 weeks at most. Maybe 3 days. Noth three years.
yellen interest rate announcement tomorrow.
The fed will only raise rates once all goyim serfs are deep in debt.
It's called history, bitchez!
The dollar is king. And you people just can't handle the truth. Deal with it, gold bugs.
The Fed is so unoriginal.
'yellen interest rate announcement tomorrow.'
Those interested in having sex (casual only) with Mr. Yellen are encouraged to attend this 'meet-up' seminar. She will be taking a vote on the 'Yellen Interest Rate', in hopes of future encounters. An instruction sheet will be provided that details the finer arts of preparation for being 'pegged' by her/him. Don't be worried, though, as no nudity or activity will take place this time (you are encouraged to research the graphics of this practice on your locally-provided internet porn site, in preparation for the September 2015 'kickoff' event'. YOU just MIGHT be 'a chosen one', and we encourage you to prepare soon!).
Sincerely,
Benjamin ('I DID IT TOO, AND ENJOYED EVERY SECOND') Shalom Bernanke
(Special appearance by L'il Timmah 'Turbo-tax' Geithner... HURRY, SEATS are gonna go FAST... including YOURS!)
P.S.
Alan (the maestro) Greenspan MIGHT make a 'special appearance' as well, to help out Mr Yellen with her speech.
Everything is well in place for one hell of a civil war right here in America. The only caveat is we now have the ability to change our identity, our sex, race or just about anything else. It will make it much easier to be on the winning side now.
Yes, you are correct. Cyberattack by the Chinese, and suddenly EBT cards stop working. 80% of Washington DC is black. We'll have to withdraw troops from somewhere just to put down that rebellion. World calls us racist for self-defense. The next president tries self-deportation of illegals. California and New Mexico are majority latino. They secede. Not to mention all the Muslims lying in wait, dormant until activated. Nevermind the throngs of people brainwashed into thinking they're own country is evil, and that every outside attack is deserved. Not to mention the 1% leeching everything away. And the Chinese and Saudi 1% moving in. Think they're going to start waving the American flag? We have about 10 different 5th columns in this country right now, and when the shit hits the fan, I absolutely predict a civil war.
@ alphametalist,
If I'm looking at this 'chart 4' correctly, I am getting a totally different take on this.
It appears that the FED used the planned deflation to stock up on 'assets' during the period from 1931 through about February 1940. Naturally, FED assets were 'gold' and 'silver' back then (or promises to pay back lent currency in the same). 1933 is a critical juncture when the so-called 'parabolic rise' began, actually, and is (coincidentally?) when that Fabian Socialist Roosevelt outlawed private ownership of GOLD (thus allowing the FED to start printing fiat currency in order to stock up on metals; using the deflationary spirals (continuous periods of 'credit-tightening' by the FED-allied 'member banks' that were left AFTER the closure of most of the smaller and independent ones that 'suffered' the 'bank run' cycles from 1929-1932).
The FED had to nominally back this fiat currency DURING the war years (hence the drop in assets versus the continuance of the rise of the 'balance-sheet' of fiat paper currency (THE BLUE LINE, for those who haven't seen through the official B.S.).
This 'parabolic rise' seems to have almost FLAT-LINED right about AUGUST 1945, and the FED was seemingly forced into a corner, selling OFF the assets in order to try to back the sheer volume of currency that had been printed (hence the declining FED ASSETS versus the 'balance sheet' up through 1959 (where the chart ends).
I'd say that the FED had decided that a 23% amount of 'assets' was sufficient to kick-start the buildup to the entrance of the United States into WWII; with an 18-month lead time. The 'Lend-Lease' Act took place right when the FIRST DROP in ASSETS happened to occur.
Those who do not study history are doomed to repeat it.
The WAR was pre-planned at least 10 years in advance BY THE GLOBALIST BANKERS (including the foriegn-owned members of the Federal Reserve System), and this chart is only ONE OF MANY that tends to prove it.
ALL WARS are BANKERS' WARS.
FUCK the inflation; FULL SPEED AHEAD!
Claymore policy covers it.
https://en.wikipedia.org/wiki/M18_Claymore_mine
"They got MacLeoded"
Why did Hitler hate the Jews?
https://www.youtube.com/watch?v=H5nzjkmtCOc
why did Hitler hate the jews you ask? Cause he was a waiter.
https://www.youtube.com/watch?v=ep-xgd_eETE
Not a big deal as before.
Don't think grunts will be in trenches they have to dig by hand.
With drones, missiles, robots, chemical and biological weapons and for the nations, nukes, most will be fought behind some kind of a monitor with a joystick. An 80 year old can do that.
That way people don't have to 'work' in killing, murdering and pillaging although raping is still done the old fashioned way.
There is a huge sickness descending on this planet. We either are guiding ourselves to fit a prophecy or the prophecy is going to happen anyway regardless of what is done.
All I know there are no peace makers in NATO and the closest one I can see to being a "peace maker' is Putin, regardless what the general population wants to believe.
Xi Jinping.
You are right, Putin has been the one practising restraint despite the rest of the world's efforts to goad him into a brawl.
Reminds me of this video . . .
https://www.youtube.com/watch?v=djTbzxQQzKQ
[most will be fought behind some kind of a monitor with a joystick.
An 80 year old can do that.]
Just so everyone realizes that Chinese kids are a lot handier
with a videogame joystick than 80 year old Americans
There was a world war and then the debt was dealt with...
The last time the US was in excess of 100% debt to GDP...here's what happened...balanced budget and GDP more than doubled. That will not happen again.
’46-’59 (14yrs)
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-32-how-we.html
oh, they learn alright - at least the oligarchs do. This is the wash rinse repeat that occurs overthe span of decades.
gold and silver are the only real lifeboats in these times
I hope you are right re: gold and silver, but it's time we recognize this ship may go down with all hands on board.
You're quite correct about & gold not being the guaranteed sanctuary that so many think . Many Jews were very wealthy and yet ended up in concentration camps . The former wealth they had ,going to the Nazi party .
No one knows exactly how this coming apocalypse will play out exactly. So at best ,we are making educated guesses & praying it works out in our favor !
Um, 6 million, wasn't it?
6 million.
Yeah.
NYT, 6 million Jews, circa 1929.
On and on, and on and on, and ON and ON, AND ON AND ON... the lies and obfsucations continue.
HOW MANY GENTILES did STALIN 'purge' from 1929 to 1940 AND ONWARDS?
Yeah... THIS one isn't even MENTIONED. Estimates range from 15,000,000 to 45,000,000, but since birth records aren't readily available (because they weren't 'WEALTHY') no one REALLY knows.
But the GERMANS... they got 'many' Jews (in the case that 'many' means more than ONE). Hitler was a really ruthless M.F. when it came to eradicating the Rothschild Family (and their minions), but the '6 million' thing is SO MUCH BULLSHIT! I suppose they 'pulled babies from the incubators, and left them to die', as well...
In memory of the Americanized Kike Khazarim and Ashkenazim ("Yids' kids") that sacrificed their lives (or, NOT!) so that the bankers can continue their wars and lies (and those who spread this disinformation)
https://www.youtube.com/watch?v=riwxbh_n_WM
The former wealth... the NAZI party... Switzerland... the FED... HISTORICAL TRANSFERS... BOY! The NAZIS did a number on FRANCE, didn't they? LOTS and LOTS of Jews were there in 1940... an 'equal-opportunity' war raider, I see... did you know that there were 'many' Jews (about SIX MILLIONS; or, maybe, MORE THAN ONE) in FRANCE ALONE?
yeah there are a couple hundred examples of this "six million" number getting bandied about, going clear back into the 19th century if i'm not mistaken.
i'm sure it's just a coincidence. a really, really... really... big coincidence.
Many Japanese folks in the US of A were wealthy before they were put in concentration camps right here in the US during WW II. Much of their wealth was confiscated or disappeared into black holes too while they were in the camps. No ovens, just wealth stolen and years of their lives taken.
The game of confiscating wealth from hapless minorities to the wealthy hands of the majority is played everywhere it's just not so well publicized in some places, especially those who boast so much about their freedom. To the oligarchs we all are viewed as Japanese on their property during WWII.
SquidPuppets - re. Your 1st two sentences. That's why I gave the first comment "Oh those politicians just won't learn.", the dreaded down-vote. That's not what's going on.
The politicians are not paid to learn in a Bankster driven oligarchy. They are payed (or threatened) to do as they are told by their Bankster owners. The Banksters, having played this scenario out, over and over again, over the centuries, certainly know how the story goes, plot twists and all.
The Sparks Of The Tempest rage a hundred years on... (or in the case of the FED, 102 years; approaching their demise):
https://www.youtube.com/watch?v=cnijc9wNpV4
FUCK YEAH! 'KANSAS' is fracking PRESCIENT!
10,000 years, NOTHING was learned!
(I suggest you turn the volume up for this one)
The Grexit - part 1: The never ending story
The Grexit part 2: It's Happening This Weekend.... For Reals This Time
The Grexit - part 3: The epic saga continues
The Grexit part 4: Germany Strikes Back
The Grexit - part 5: Greece pivots
The Grexit - part 6: Enter the IMF Dragon
The Gexit - part 7: Loan sharknado
The Grexit - part 8: the bankers dozen
The Grexit - part 9: the bailout begins
The Grexit - part 10: atms the new frontier
The Grexit - part 11: Drachma fever
The Grexit - part 12: fiat wallpaper blues
The Grexit - part 13: drackma park
The Grexit - part 14: terminator euro II
Indeed.....
You and Banzai should Collaborate.....
The Grexit - part 15: 'FLIP THIS NATION!' (boadcasted worldwide on PMSNBCSN. See your local listings for showtimes.)
"We learn from history that we do not learn from history."
- Hegel
History is seldom pretty or kind. Why would we want to learn from or remember that?
who's serving the kool aid???????
1935, 1940, and 1946. Bailing out the 0.01% is old trick.
Actually they are the ones who repeat it...we just get to suffer the consequences of their repeat.
There isn't any payday in learning anything. Only selling something.
FORWARD SOVIET!
Bernanke was supposedly "chosen" as he was a "scholar" of the events and central bank policies of the "first" great depression era.
Is doing the same thing that was done in the past and expecting a different or better outcome = "scholar"? Monkeys train very quickly on "repetitive tasks"
Macros don't count anyMOAR. What ever that fat cunt yellen wants, the market does.
MOAR ATFHs tomorrow!!!!! Yellen talks nothing and the markets ramp.
This has got to stop. I don't think the US will come out victorious this time. Not an ounce of passion in our millenials to fight for a cause.
Please to name a relevant cause. Thank you.
Technology to enable homesteads on ungoverned Mars is worth fighting for.
Well, those damned Martians are dead anyways, so what the hell! I think we should use their ancient homes and cities for target practice. It'll keep our troops on their toes, you know. OUR TECHNOLOGY rules the day! A REWARD for EVERYONE who takes part, and 'shiny medals' for ALL, as well! There are no 'losers'. There are only WINNERS!
Ray Bradbury was pretty good.
https://www.youtube.com/watch?v=XCOV-ht0Ifc
It's as real as the Apollo moon landings, you know.
https://www.youtube.com/watch?v=ONhilhZlBpo
Booze, broads and blow.
FUCK YOU LARRY. Maybe the Millennials know better than their idiot parents "Boomers" and great grandparents "The Greatest Generation" the fucking fools let this shit happen. What do they know? That the game is rigged and no amount of bailing your retirement out is going to make the world better at our laborious expense.
Eat copper clad lead bitch, Seniority first.
Let's be reminded the Millennials witnessed 2 major market crashes, Tech and Housing, and watched the DOW whipsaw 3 tops and 2 bottoms before graduating college if they managed to finish school with a mortgage year after year tuition hikes 5-8% before 2008 before getting laid off from what ever job they may have had. Only to watch the DOW irrationally rocket into heinous heights while currency fuckery abounds. Meanwhile metal markets get the pimp hand from the FED while people pay for negative interest bonds. WHAT THE FUCK ARE YOU SMOKING? this isn't any Generation's fault under 36 years of age.
You made this shitbox of a bed , so sleep in it.
Boomers didn't make the shitbox you are witnessing. The overlords made the shitbox. They may be of a similar age (but even that is debatable given the few who seem to control it all).
If you're so willing to call your parents idiots then fuck off and die you little rat bastard piece of shit.
As for eating lead, you would very unlikely know very little about it. Very little.
Your diatribe of the past decade has been lived by all but the very few--and to classify them as "boomers" is laughable at best.
You're a fuck.
As a Boomer, I have to respectfully disagree. The Republic came with civic responsibilities that almost everyone shirked, shirking responsiblities. But it goes back further. 1913 when the seeds of disaster were planted.
and u blew up ur own argument
We've been economically divided. I was poor and nervous when I left college too. If I were to sit and wallow in it, I would have been poor and nervous today - ready to blame anyone for anything (except me of course). I worked as temporary labor mixing cement and other various menial jobs until I found one I liked that also liked me. Then I saved money - worked really hard, sacrificed as much as possible to distance myself from being poor and nervous.
If we all just get to the business of working to distance ourselves from being poor/insecure/nervous then one day we would be able to look back and be thankful rather than just blame each other for this quagmire we are in.
We just need to look at ourselves and fix the screw ups, get on with life - and stop blaming someone else for our own problems - until the black helicopters and black shirts show up - then I will use the language of war to defend myself - I would hope that we all would do the same.
As a Boomer, some of us have tried, even bought a talk show radio station. The automatons are constantly blasting us with propaganda about how great Free Shit America is.
For the younger crowd, there are plenty of things to crusade over in this target rich environment. It's worse than ever and all anyone wants to do is blame it on their parents.
FSA has devolved into a sub-standard country, and it's all our fault. All of us.
Oh Yeah it was partially my fault when I was 6 watching the nightly news seeing the anchor QQ about the 1987 stock market crash.
It was partially my fault when I was freshly graduated HS and the tech bubble burst.
It was half my fault when I was in college and the house market that I couldn't afford being a broke student crashed.
It was mostly my fault when the financial crash of 2008 happened, but I had no house or stocks to worry about.
It was fully my fault the dollar imploded 2015? because I refused to save fiat currency, get a car loan and invest in the stock market and shorted Keynesian economics with precious metals.
I am your worst nightmare.
Uhhh.. we're going on the 3rd possible Boomer President. *Drops the fucking mic in your cereal bowl*
"Overlords" the boomers knew this and wasted their movement dropping acid and fucking each other rather than fucking up the establishment.
Good job! The boomers enjoyed the ride more than most the last decade, diatribe that.
amen! so sick of this nation's eat-the-young solutions. i haven't the faintest notion of why my kids are responsibile for your decades and decades of boomer and boomer parent horseshit! please take some fricking responsibility for the mess you have made!
well well, it takes a village and a few have other thoughts than the majority. no matter what age you or i are, just don't fight the fuckers wars. this is a result of a repeat of rome ready to burn. i guess we can't choose our date of birth. just think about saving ryan on normandy beach. and they wanted to go. fuck that, fighting for the petro dalla, no thanks...
own your shit or it owns you... eventually...
the cycle is much shorter than many grasp...
and heck yeah with your comment, alpha...
I'm pissed, but I have the stones to blame the right bunch-o-dickheads...
all my idiot dope smokin' boomer contemporaries thought I was a real downer when I was bitching about the downside of being stupid, clueless, fat and happy... now - not so much...
effing boomer parents and their kids - dumb as rocks, generally...
So Hitler invaded Poland because he was enraged that the US Fed had enlarged its balance sheet to over 20% of GDP? Sorry, I just don't see it.
So Hitler invaded Poland because USA needed to sell goods to both parties of the WAR - GERMANY and USSR
What happened first? Checkoslovakia Or Polland? Blame Great Britain
first.
What happened first was somebody had The Archduke shot to stop the oil train running from Bahgdad to Berlin.
Then, over on this side of the pond, Woodrow Wilson, who just got reelected, promissing no entry into war, had an unsceduled sitdown with a rep from the ZinoBanksters where they discussed Woody's pedophillia and how it might go public and so we joined in the slaughter.
Its always the pedophillia that gets them everytime!
What about the part where Russia invaded the eastern part of Poland while the Germans invaded the western part?
People tend to forget that part of history.
https://en.wikipedia.org/wiki/Soviet_invasion_of_Poland
Stalin wanted a buffer between him and Hitler.Because of his anialation of the Russian officer corps in
the 30's it made no difference anyway..
Winny - Stalin thought he and Adolph were buds and was shocked into disbelief for days after the start of Barbarosa. Look into it.
Read the Chief Culprit or about "Icebreaker" by Viktor Suvorov (a pen name). Stalin was ready to invade Germany when the Germans preempted him. At the time Stalin ordered many of his men and most of his material to be placed right along the new border in what was Poland and other places they had just taken over (Bessarabia, Lithuania, etc.). This was clearly offensive positioning and intended as such. Only this can explain what happened (e.g., why massive piles of ammunition were captured in the open fields; why trains with the wrong gauge loaded with tanks were sitting in stockyards pointing west that had the wrong gauge to operate in the USSR; why thousands of airplanes were positioned miles away from the new borders; why Russian tanks and planes on the border alone outnumdered what the Germans had; why Stalin had more paratroopers than all the armies of the world combined; etc. etcetera). Also, it explains why Stalin waited for Germany to attack Poland first even though the agreement was to attack at the same time (i.e., he wanted them to look bad and the aggressor not himself before he made his run at Germany and what was left of Europe). In short, you have bought the false propaganda hook line and sinker. Also, every general and "Nazi leader" during the Nuremberg show trails after the war to a man were perplexed that the Americans and British were asking them why they attacked Russia. It was obvious to them, and confirmed after the attack by what they found. Also, after the "fall of the Soviet Union", various secret documents confirm it and certain memoirs of Russian generals confirm it (e.g., Zhukov, who was responsible for the overall stockpiling and pre-invasion preps).
https://en.wikipedia.org/wiki/Molotov%E2%80%93Ribbentrop_Pact
Poland had been a part of Russia before it became an independent country at the end of WWI. Thanks to the Treaty of Versailles, a big chuck of German territory was awarded to Poland to weaken Germany. Per instructions from London and Paris, Poland carried out large scale genocide against millions of former Germans and former Russians. Your history books are full of shit. Now you will have a much better understanding why Hitler and Stalin divided Poland back to the original configuration.
Indeed...
"The Law of Unintended Consequences" at work...
" Sorry, I just don't see it."
Perhaps you should research Hitler's financiers ...maybe that would shed light,
To some extent, banks have replaced the Fed's last asset purchase program's impact. It's stealth QE. The situation is worse than it appears if one only looks at the Fed's balance sheet.
-- Eric Dubin, Managing Editor, The News Doctors
Sorry for the double post. I accidently hit the submit button twice and it appears that posts can't be deleted by the author.
most especially when someone comments to you, such as this. In this case, Wombat, your wings are clipped. ;0
<p>Since nobody else has posted it yet, All Wars Are Bankers Wars. Spend less than an hour watching the documentaries on this topic and there's no way a sane person can refute the evidence of history.</p>
There is one side benefit to WWIII: it will likely be so horrific, and with no clear winner, that the world may decide to 'never' go to war again. The peace may even last a generation or two.
The "War to end all wars" was the 1914-1918 one. We all know how that prediction turned out.
Yeah but you're overlooking something. The first one was confined to Europe. The second one was broader in scope, but still left huge areas of the globe untouched by the fighting, like north america or india.
The third will be truly global, with every nation on earth affected. With a billion casualties as a direct result of the war, 2-3 billion casualties due to secondary effects, the complete destruction of every economy on earth due to the fallout of the war, and so on and so on, we will finally have a true 'world' war. I expect very few governments will remain standing after the event. People will simply be too busy rebuilding to do anything else.
imagine a transnational "brotherhood" that pledged, just before fighting commenced - to kill, with extreme prejudice, those leaders, those bankers and lobbyists and pundits, who were calling loudest for war...
Does the Brotherhood exist?
That reads like pretense from an entry level agent provocateur.
wendigo - Mostly Europe, but ever hear of Lawrence of Arabia? War was fought in the ME, aka SW Asia, also in German East Africa and a few other places.
Fuckin pricks.
You can lead a PIG to the Trough and he'll gorge 'till his heart's content.
betcher ass!!!
great article - important stuff and easy for economic-idiots like me to digest.
Now I would be willing to wager that after the market crashed - some wealthy folks bought up a whole bunch of stock, and real estate, and pawned gold and furs... am I right?
Mr. Potter did.
When the con collapses, war is a great distraction.
'There was one?'
~Cruiser~
Yeah it's all shaping up for a WW again. Only it will be with "limited" nuclear weapons that won't directly affect the metroples and hence it's still bullish real estate. The arms and technology sectors will benefit too, and of course commodities will be consumed, but it won't get reflected on the prices because it's not supposed to. The dollar-is-king mode will be challenged by gold but the later will be made pretty much illegal in the west. George Sorass and Warren Buffeast can, however, aid in diversifying your portfolios though a combination of propriatary default swaps and insider technology/mass-retailer investment vehicles after payment of royalties to the Ziocon State, of course.
EMP
The Chinese are a practical people.
The Bilderberger nihilist central planners want to destroy everything and depopulate the Earth and massacre 6 Billion people. This is their big chance. Of course, the carbon foot print of WWIII will be huge so the stragglers are hesitating.
Murica must die. It is that simple. And Murica shall die. It is going to happen as soon as other countries stop accepting products of their labor and sweat to be paid in paper.
But don't despair. It is a high time that liberal abomination called Murica die. For too long have Murica been exporting its liberal disease and corrution throughout the world, and for too long have Murica been living like a parasite on the world. But that is coming to an end at long last. The world neeads an honest economic system; certainly doesn't need more Western corruption, and Murica has nothing to offer but degenerations, frauds and corruptions. There is nothing to mourn or regret about Murican's passing. Murica is a fucking abomination... a horror show ffs. Everything ends somewhere, and Murica's end cannot come fast enough. We shall all be much happier without so-called West: without Murican parasitism, liberal Western corruption and ever present military aggressions. And you get to cut off that liberal tumor and "your" Negro parasites, so what exactly do you have to be uneasy about? Something is dying which is not even to your liking, and something new shall be born. What that newborn is going to be is up to you to decide; it can be something well worth fighting for.
this guy sounds like hitler.
to the end of the plank one step at a time(blindfolded). I see said the blind old oligarch sociopath to his seeing eye dog at the busy interesection...
Fed Schmed I'm more interested in the FBI investigating FIFA and the St Louis Cardinals. I mean come on people, WAKE UP these are THE huge issues of the day. For the love of God, and for our childrens sake, I pray JustUs will be done.
Sure trillions of dollars have been funneled of to a small group of people through war, through medicine, through Wall St. Sure politicians are bought and paid for. Sure DEA agents partied on the drug cartels dime. Sure the Banks commit fraud and launder money every day. Thats not important!!! That shouldn't matter!!! What I really need to know is did someone or some country bribe FIFA for the chance to host the worlds cup. Did someone from the St Louis Cardinals back into the Houston Astros data base.
If we can't get the answers to these most important questions, than I fear for not only our nation but the world.
By the way isn't the Cardinals hacking the Astros like Joe Biden teaching Stephen Hawking quantum physics?
At the risk of teaching grandma how to suck eggs, it is often useful to use the HTML mark of </sarc> at the end of such a good post, don't cha' know.
Greenie on ya!
NM - pendantic. No nessacito. It was clear as day.
Shallow, also.
https://www.youtube.com/watch?v=ctf260qnDeU
Economist Jim Rickards points out that we had a financial crisis in 1914 and 1939 at the beginning of both wars. This discussion of the ailing economy of 1939 shows what Rickards is talking about.
The weak economy required the Fed from 1933 on to print money of up to 25% of GDP like today, and hold interest rates down also like today.
The knockout blow to the US causing the 30s Depression was the Feds theft of America’s gold from 1928 thru 1933 and sending it to fund Hitler
US House Banking Chairman Louis McFadden called on congress in a speech from the congressional record to join him in the arrest of the Fed for theft and treason.
Congress was scared sh*tless to join him and left him alone to be assassinated two years later on their third attempt.
To this day we have disinformation specialists NYT economist Paul Krugman and Ben Bernanke stating the cause of the 30s Depression was the fact that we just didn't print enough money
even though we were on a gold standard and you can't print gold. Just more deception and disinformation from today's United States of Deception.
Even on alternative sites, this truth has not gotten the recognition it deserves. Most American's believe the Fed is a government agency benefiting them and no one seems to know the cause of the 30s Depression.
The bank runs of 32-33 were caused by this gold theft from American depositors. Amazing that 80 years later this truth is still not out and a great American hero was killed trying to stop
this theft and treason and the cowards in congress let it all happen because they knew that the European-owners of the Fed murder their opponents like they did to chairman McFadden.
A sample quote from McFadden’s famous speech that got him killed.
"On April 27, 1932, the Fed outfit sent $750,000 belonging to American bank depositors in gold to Germany. A week later another $300,000 in gold was shipped to Germany.
About the middle of May $12,000,000 in gold was shipped to Germany by the Fed.
Almost every week there is a shipment of gold to Germany. These shipments are not made for profit on the exchange since the German marks are below parity with the dollar.”
See chairman McFadden’s full speech from the congressional record.
The Federal Reserve: An Astounding Exposure 1934
The knockout blow to today’s US economy has been a slow inflation caused by Fed counterfeiting of the global dollar since going completely off the gold standard in 1971 – related to the 97% depreciation since 1914 and 80% of it since 1971 back when nations could redeem gold for dollars.
Prior to 1933, the general public could redeem dollars for gold but since the Fed gold theft of 1928-33, America’s wealth went to
fund Hitler by way of the European-owned Fed through their Wall St and Washington Masonic, Zionist and Jesuit agents.
Nice post. RIP someday US House Banking Chairman Louis McFadden.
I wonder if anyone at Boomberg or the WSJ these days knows what it takes to serilize these transactions?
Me thinks nyet.
- Ned
Here is a nice little video to help you visualize the number of people killed in WW2 by year, by country and by category.
https://vimeo.com/128373915
It confirms we still live in the Dark Age that requires millions upon millions to die for profit.
The video sums up the history of wars with the past 70 years have been the most peaceful in all history with the number of war casualties dropping to relatively small levels as compared with previous times and as a percentage of the world's population. I will sum it up as not a period of peace that has prevailed but a period of complacency. This means that the next big one will be beyond imagining in terms of casualties. I actually imagine it as a great "cleansing" of sorts, one that is long overdue. Think of it like this. If I were planning a prophetic end to the human race (every religion has one) what better way to set the stage for it than to get everyone fat and happy without a care in the world all at the same time. Looking at it like this, the human species collectively is pretty much ripe for harvesting.
One other thing I fault the video for was the failure to account for the collective deaths of the native population to North America as a result of European occupation. Prior to Columbus the best estimates hold that there were some 50 - 55 million native Americans living throughout North America. By 1900 that number had been reduced to some 5 million as a result of disease and war. This amounts to perhaps the largest wholesale genocide of any indigenous people ever in the history of mankind as a percentage of population and as an absolute. In my readings, I discovered that in the little known second book by Hitler known as "Hitler's Second Book" for lack of any other title, Hitler actually describes the westward expansion of the US as his role model for the German expansion and conquest of greater Europe. When one thinks of it, the parallels are uncanny.
According to Bank of America Merrill Lynch:
http://personal.crocodoc.com/AwP30H2
The Fed and income inequality
Don’t stop ‘til you get it on
Critics of the Fed argue that by stimulating asset markets easy Fed policy is benefiting upper income families, but not helping people who do not own assets. In reality, the biggest impact of easy Fed policy is to speed the drop in the share of the population that are unemployed and hence have zero labor income—the most pernicious instance of inequality. The Fed cannot fix the long-run trend toward income inequality, but it can reverse the recession-induced increase by ensuring a full recovery in the job market, normal wage growth and then—and only then—a return to normal interest rates.
Reverse Robin Hood
Critics of Fed policy have offered an ever evolving list of complaints: the Fed is risking runaway inflation, a collapse in the dollar, massive asset bubbles, and damaging people on interest income. The latest: the Fed is causing income inequality. Fed has caused a big stimulus to asset markets, but no real stimulus to the economy. Hence, the only beneficiaries of Fed policy have been upper income families with large asset holdings, leaving the average Joe behind. The Fed should normalize policy ASAP.
Ben blogs back
The latest counter argument comes from Ben Bernanke’s blog and several papers from Brookings. Bernanke points out that widening inequality is a very long-run trend and the impact of monetary policy is small and ambiguous. Easy policy does stimulate asset markets, favoring the rich, but this is more than offset by the stimulus to the labor market. Easy policy also benefits the middle class by raising asset values for the 60% of families that own their own home. Finally, by pushing up inflation Fed policy benefits debtors—lowering real repayment costs—over creditors, and debtors tend to have lower income than creditors.
Cutting off your nose to spite your face
In our view, if anything, Bernanke is being too generous to his critics. There are two big stories at play. First, monetary policy doesn’t push the economy back to full employment by magic; it does it by stimulating asset markets, bank lending and confidence. Hence, monetary policy cannot stimulate growth without rewarding asset holders. (By contrast, fiscal policy can target low income people.) Moreover, in each business cycle, the profit share of income surges at the start of the recovery and then fades in the second half of the recovery as the unemployment rate drops and workers acquire wage negotiating power (Chart 1). Advocates of an early Fed exit are in effect telling the Fed: “stop trying to get the economy to the second stage of the business cycle recovery when profit growth slows and wages accelerate.”
The second even bigger story here is that there is no better way to reverse a cyclical deterioration in income distribution than to quickly restore full employment. Unemployed people by definition have no labor income and rely purely on government help or investment income. Hence, in most cases, unemployment pushes workers into the bottom of the income distribution. Thus, the main cause of the cyclical increase in income inequality was not that wages were weak relative to investment income, but rather that the unemployment rate surged from 4.4% in mid-2007 to a peak of 10.0% in October 2009. The reversal back to 5.4% means 4.6% of people actively looking for a job are no longer earning zero labor income.
Taking this a step further, the cyclical drop in the unemployment rate—as always—has disproportionately benefited disadvantaged groups (Table 1). The unemployment rate for teens has dropped more than for prime age workers, rates for Blacks and Hispanics have dropped more than for Whites and Asians, and rates for people with a high school degree or less have dropped more than those with a college diploma. The share of workers in part-time jobs has dropped and the share of long-term unemployed has also dropped. These disadvantaged groups are still worse off than the average person, but the gap has shrunk back toward more normal levels. Why would the Fed want to abort this process?
The author of The Great Red Dragon (1889) tried to tell folks what was going on and warn them, like ZH is doing now. Can you just imagine the labor and cost of producing that book with each individual character put in place by hand! But the war came anyway, and like now, few cared. History sure does repeat, especially when the sociopaths use the old books as their playbook. And most ignore them.
Socialism is a con game - it just creates more debt as it raises taxes.
http://www.teapartytribune.com/2015/06/11/socialism-increases-debts-as-t...
And Stimulus has NEVER worked:
http://www.teapartytribune.com/2015/05/18/keynesian-beauty-contest-revea...
Dear Mr. Putin
You will probably never read this, but I will write it anyway.
I do not know you. All I know is what I read about the events happening in the world today. I have to be careful as there is so much bias and lies out there it is difficult to discern what is accurate or not.
I want you to be aware, not everyone in the West thinks you are as evil as some governments would have us think.
From that insurgency in Kiev to the downing of a passenger plane, it was blamed on you. I am not suggesting you are an angel, no one is. However it came to light that you or Russia was not the guilty party, although many people here think you are.
I see news reports that quote you as referring to the West as 'my friends', even when they are trying their best to undermine you and Russia. You keep warning of the hurt people in the Ukraine are feeling or will feel if they do not stop this madness. Apparently you let the people of Crimea decide through a referendum whether they wish to join Russia or not and they decided. All these things I see as positive.
I think you really do not want war. I think you are all too aware of what evil war is.
There are people on both sides who want war and I see it building here in the west.
Mr. Putin, hang in there my friend. I know and realize when there is a crescendo clamoring for feigned justice it is difficult to ignore, but today the world and the human race needs a peace maker and I see you may be the person who can make it possible.
Otherwise humanity will end up on square one, if we survive.
Regards
Ichabod
Total bullshit article.The Fed are our protectors. They got our back and will totes not fuck us over. Just need those deadbeats to pay their taxes.
kirk kerkorian
http://www.reviewjournal.com/business/casinos-gaming/billionaire-las-vegas-mogul-kirk-kerkorian-dies-los-angeles
According to the International Monetary Fund:
http://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf
Causes and Consequences of Income Inequality: A Global Perspective
EXECUTIVE SUMMARY
We should measure the health of our society not at its apex, but at its base.” Andrew Jackson
Widening income inequality is the defining challenge of our time. In advanced economies, the gap between the rich and poor is at its highest level in decades. Inequality trends have been more mixed in emerging markets and developing countries (EMDCsf), with some countries experiencing declining inequality, but pervasive inequities in access to education, health care, and finance remain. Not surprisingly then, the extent of inequality, its drivers, and what to do about it have become some of the most hotly debated issues by policymakers and researchers alike. Against this background, the objective of this paper is two-fold.
First, we show why policymakers need to focus on the poor and the middle class. Earlier IMF work has shown that income inequality matters for growth and its sustainability. Our analysis suggests that the income distribution itself matters for growth as well. Specifically, if the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. In contrast, an increase in the income share of the bottom 20 percent (the poor) is associated with higher GDP growth. The poor and the middle class matter the most for growth via a number of interrelated economic, social, and political channels.
Second, we investigate what explains the divergent trends in inequality developments across advanced economies and EMDCs, with a particular focus on the poor and the middle class. While most existing studies have focused on advanced countries and looked at the drivers of the Gini coefficient and the income of the rich, this study explores a more diverse group of countries and pays particular attention to the income shares of the poor and the middle class—the main engines of growth. Our analysis suggests that
- Technological progress and the resulting rise in the skill premium (positives for growth and productivity) and the decline of some labor market institutions have contributed to inequality in both advanced economies and EMDCs. Globalization has played a smaller but reinforcing role. Interestingly, we find that rising skill premium is associated with widening income disparities in advanced countries, while financial deepening is associated with rising inequality in EMDCs, suggesting scope for policies that promote financial inclusion.
- Policies that focus on the poor and the middle class can mitigate inequality. Irrespective of the level of economic development, better access to education and health care and well-targeted social policies, while ensuring that labor market institutions do not excessively penalize the poor, can help raise the income share for the poor and the middle class.
- There is no one-size-fits-all approach to tackling inequality. The nature of appropriate policies depends on the underlying drivers and country-specific policy and institutional settings. In advanced economies, policies should focus on reforms to increase human capital and skills, coupled with making tax systems more progressive. In EMDCs, ensuring financial deepening is accompanied with greater financial inclusion and creating incentives for lowering informality would be important. More generally, complementarities between growth and income equality objectives suggest that policies aimed at raising average living standards can also influence the distribution of income and ensure a more inclusive prosperity.
According to Natixis:
http://cib.natixis.com/flushdoc.aspx?id=85583
Public debt ratios must be reduced, but how?
The high level of public debt is a permanent threat to growth: if interest rates rise, rapid tax increases or government spending cuts would be needed, with the risk of creating tax distortions and reducing potential growth. This threat may also drive private economic agents to build up precautionary savings.
It would therefore be very positive to reduce public debt ratios, but how?
- By keeping long-term interest rates lower than nominal growth, although this reduces the public debt ratio extremely slowly. In addition, it is dangerous from a financial stability point of view and may generate negative incentive effects;
- By monetising the public debt, i.e. by transferring it to the central bank’s balance sheet, and by cancelling it (actually or de facto); but one must then accept the risks linked to chronic excess monetary creation;
- By considerably extending the maturity of the public debt, by replacing it with bonds with a very long maturity (50 years, 100 years, perpetuity), by taking advantage of the very low level of long-term interest rates. This would considerably reduce the interest rate risk weighing on the public debt. The criticism often levelled against this method is that it shifts the burden of repayment to future generations;
- A more original approach: by cancelling the part of the public debt held by residents; there is then de facto neutrality: on the one hand, the residents receive interest on the government bonds they hold and, on the other hand, they pay taxes that finance the interest on these bonds. The cancellation of the debt eliminates both the interest on the debt held domestically and the taxes that finance it, resulting in macroeconomic profitability. The redistributive effects of this debt cancellation will still have to be corrected, which is possible. We obviously know that this possibility will never be used.
WAR on your own government, the so called - Domestic Traitors - specifically mentioned in your Constitution.
Not that I am an economist or a believer in current fed policy, but the analysis of the post 1929 fed balance sheet can only be put in the context of the current situation by including nominal gdp, before and after, in the analysis. Absent the massive decline in nomimal gdp, which didn't occur in the current period, for a number of structural and policy reasons, a comparison of the two periods is not informative.
Not that I am an economist or a believer in current fed policy, but the analysis of the post 1929 fed balance sheet can only be put in the context of the current situation by including nominal gdp, before and after, in the analysis. Absent the massive decline in nomimal gdp, which didn't occur in the current period, for a number of structural and policy reasons, a comparison of the two periods is not informative. Although, in each situation the endgame from a percentage of GDP are similar, timing of policy response and trajectory of nominal GDP are quite different.
IF only FED assets were really 25% of GDP. GDP is overstated by 30%. The charts on this data are beyond stunning and the fed numbers as well as the government numbers as published simply can be nothing more than a fabrication:
http://mcm-ct.com/blog/imaginary-numbers-part-2-the-shattering-mirror-of...
http://mcm-ct.com/imaginary-numbers-charts/
Here is part 1 explaining the basic fabrication techniques:
http://mcm-ct.com/blog/imaginary-numbers-the-ultra-deceptive-nature-of-c...
if you think GDP is overstated now wait until they start giving it the new dblplusgood seasonal adjustment!
all gov stats are phony.
The globalists have to get Hitlery in the Oval Orifice, that way they will have the U.S. military at their disposal 24/7, 365.
War is a Racket
US and A is need for a the first nuclear war
WW II was the first nuclear war. The next one will be the second.
History never repeats, it never rhymes, (those quotes sound good but are inherently simplistic) and it should never be used to make a prediction about financial markets that have metamorphosed, in 10 years, from what they were to what Gregor Samsa is.
Those secure in the opinion that the past repeats have disregarded all the knowledge accumulated in Chaos Theory. A big mistake.
Under Chaos Theory, the probability is that things could be even worse than history.
Where is Hilter when you need him?