Clearly if Western governments were ‘merely’ drowning in debt-to-GDP ratios of roughly 100%, then theycould still argue that attempting to manage these debt-loads was legitimate rather than treasonous. However, Germany’s government (debt-to-GDP of 188%) can no longer make that claim. Nor can:
"The Fed is out of control," exclaims David Stockman - perhaps best known for architecting Reagan's economic turnaround known as 'Morning in America' - adding that "people don't want to hear the reality and the truth that we're facing." Policymakers are "taking our economy in a direction that is dangerous, that is not sustainable, and is likely to fully undermine everything that's been built up and created by the American people over decades and decades." The Fed, Stockman concludes, "is a rogue institution," and their actions have led us to "one of the scariest moments in our history... it's a festering time-bomb and we're not sure when it will explode."
Paul Krugman may (or may not) know a lot of economic theory and is a very clever writer, but you should never ever trust him to recount tales of battles between Keynesians and other schools of thought. His misrememberings in this realm are so astounding that they would impress Brian Williams.
"Spectacular Developments" In Austria: Bail-In Arrives After €7.6 Billion Bad Bank Capital Hole "Discovered"Submitted by Tyler Durden on 03/01/2015 20:59 -0400
Slowly, all the lies of the "recovery", all the skeletons in the closet, and all the bodies swept under the rug are emerging. Moments ago, Austrian ORF reported that there have been "spectacular developments" in the case of the Hypo Alpe Adria bad bank, also known as the Heta Asset Resolution, where an outside audit of Heta's balance sheet exposed a capital hole of up to 7.6 billion euros ($8.51 billion) which the government was not prepared to fill, the Austrian Financial Market Authority said. The punchline: "The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta - or "bailed in" - under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden."
We’ve tried medication. We’ve tried prayer. We’ve tried heavy drinking – all in an effort to understand how our crazy money system works. And where it leads. You’d think it would be easy. It’s just Central Banking 101, no? Well, no. It is squirrelly... and diabolically subtle. We doubt anyone understands it – especially those who are supposed to control it.
PIIGS Go To War: Spain, Portugal Slam Tsipras' Accusations Of "Conspiracy Plot" To Overthrow Greek GovernmentSubmitted by Tyler Durden on 03/01/2015 16:25 -0400
Yesterday Tsipras made clear his displeasure with the betrayal of what were formerly his socio-economic equals quite well-known, when he accused Spain and Portugal on Saturday of leading a conservative conspiracy to topple his anti-austerity government, saying they feared their own radical forces before elections this year. As Reuters reports, in a speech to his Syriza party, Tsipras turned on Madrid and Lisbon, accusing them of taking a hard line in negotiations which led to the euro zone extending the bailout programme last week for four months. And the inevitable response: both nations are now demanding that the EU "arbitrate" and respond to Tsipras' allegations, in the process essentially validating his accusations.
"...we are failing to deliver on our obligations as Americans, that is undeniable. We are allowing the political class to plunder our wealth, negate our freedoms and desecrate our Constitution. Sadly we have become the immoral populace our founding fathers warned all future generations not to become... The duty and obligation is ours and so too then are the failures and successes of our society. We are 15 years in to what is absolute denial regarding the competence of our nation’s policymakers. Yet here we sit, silent and indifferent to our own demise; so completely antithetical to the character of a true American."
If not the economy or fundamentals, and if not the Fed, which as we know is still on sabbatical after its massive QE1-2-Twist-3 $3 trillion liquidity injection, just what has pushed stocks up to jawdropping all time highs? Here, courtesy of Deutsche Bank, is the answer...
Previously, the Obama administration attempted unsuccessfully to ban the AR-15. That didn’t work, so now Obama is going after the ammunition. This is yet another example of the war on preppers that is going on all over the nation. Whether you are a gun owner or not, this assault on our constitutional rights should disturb you greatly.
This is what Europe has become: savers - those who diligently put away the fruits of their labor - are now forced to pay, using banks as an intermediary, and subsidize the the debtor: spenders, who live beyond their means, and who in increasingly more frequent situations are now paid to take out even more debt! Call it monetary socialism, or just call it what it is: the New Paranormal.
"Monetary Policy Is Bankrupt" Dr. Lacy Hunt Warns "Bonds, Not Stocks, Are A Good Economic Indicator"Submitted by Tyler Durden on 02/27/2015 19:35 -0400
"While the wealth effect is a theoretical possibility, it is not supported by economic fact. The stock market is not a good guide to the economy, but...the bond market is a very good economic indicator. When bond yields are very low and declining it’s an indication that the same is happening to inflation and that economic activity is weak. The bond yields are not here for any fluke of reason. They are here because business conditions in the US and abroad are quite poor."
Over the past decade, there has been one area of the country which has experienced a massive economic boom. Thanks to wildly out of control government spending, the Washington D.C. region is absolutely swimming in cash. In fact, at this point the state of Maryland has the most millionaires per capita in the entire nation and it isn’t even close.
One week ago, when reporting on the latest bizarre plan presented by the Pentagon, namely providing Syrian rebels (but only the moderate ones, not the jihadists like al Nusra, or, well, ISIS) with B-1B Bomber air support in their attacks on ISIS, when we wrote that this "means in the coming weeks and months look forward to a surge in false flag "attacks" blamed on the Assad regime, aiming to give Obama validation to expand the "War against ISIS" to include Syria's regime as well." We didn't have long to wait: in an entirely unsourced Time article written today by Aryn Baker, the Middle East Bureau Chief, the stage for the second attempt at invading Assad regime is finally set.
Fill In The Blank: "Greece will achieve economic success when ____"