When a leading nominee for President gets something exactly right, we should applaud them for it. In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct. Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama. The funny thing is that the Federal Reserve is not even part of the federal government. It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago. It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.
WTI crude prices are up almost 6% this morning with April (the new front-month) trading above $33.50 - testing post-DOE plunge stops. The irony of the ramp is that it comes amid terrible global PMIs (demand), a report from IEA of oil staying in glut for longer than expected (supply), and warnings from Abu Dhabi's biggest bank that $20 oil is possible. Oh well, we are sure the algos know what they are doing... despite veterans of the 1980s oil glut warning it could take 7 to 10 years to emerge from the current slump.
This is Fact, Not Conspiracy.
It looks like the board-game company sees the writing on the wall and is preparing the children of today for the new world order – a cashless society.
As the One Bank strips humanity bare of all its wealth, these Owners make it harder and harder for themselves to continue to hide.
This time is different...
"The world has fundamentally shifted over the last decade, especially since we’ve emerged from the Great Recession... But the professional class has been very slow to understand what is going on, not just quantitatively but qualitatively in a new generational configuration that I call the Fourth Turning. They don’t accept the new normal. They keep insisting, just two or three years out there on the horizon, that the old normal will return – in GDP growth, in housing starts, in global trade. But it doesn’t return."
- Yellen's dilemma: A downturn with no easy response (Reuters)
- Clinton, Sanders clash over Obama as they vie for minority votes (Reuters)
- Risk Grows of Markets Sparking Recession (WSJ)
- Global Stock Rout Eases Amid Oil Advance as German Bonds Decline (BBG)
- U.S. Benchmark Yield Will Be at Record Low in March at This Rate (BBG)
- Oil Prices Rally on Hopes of Production Cuts (WSJ)
Following a week of crazy volatility, overnight exhausted markets took a breather.
Central Banks Are the PROBLEM, Not the Solution ... the DISEASE, Not the Cure
- Global Stocks Bounce Back After Market Selloff; Asia Stumbles (WSJ)
- New Hampshire Bucks the Establishment to Back Trump and Sanders (BBG)
- Trump shows his U.S. presidential bid is no mere publicity stunt (Reuters)
- Clinton Is Outdone by a Competitor Once Considered a Fringe Candidate (WSJ)
- Deutsche Bank Jumps as Lender Said to Consider Bond Buyback (BBG)
- Bank Executives Leading Surge of Insider Buying Amid Stock Rout (BBG)
Simply put, either large cap Financials are cheap, or the entire U.S. equity market is still overpriced. Their precipitous decline year to date means markets fear they are both the transmission mechanism for a global slowdown/recession to come and a primary victim of that event.
Venezuela's central bank has begun negotiations with the suddenly troubled Deutsche Bank to carry out gold swaps "to improve the liquidity of its foreign reserves as it faces heavy debt payments this year", payments which it won't be able to fund unless it manages to "liquify" its gold. "One of the sources said the central bank has taken an unspecified amount of gold out of the country so that it can be certified, which is required for gold that is used in such swaps."
A multi-decade Credit Bubble is coming to an end. The past seven years has amounted to an incredible blow-off top and the ongoing worldwide collapse in financial stocks provides powerful support for the bursting global Bubble thesis. Few are yet willing to accept the harsh reality that the world has sunk back into crisis as mal-investment, over-investment and associated wealth destruction remain largely concealed so long as financial asset inflation persists. This is true as well for wealth redistribution. The unfolding adjustment process will deflate asset prices so as to converge more closely with deteriorating underlying economic fundamentals.
The Central Banks have turned us into dispensible members of the Suicide Squad