Archive for category Finance
November 10, 2014
A funny thing happened on the way to the ‘end’ of the multi-trillion dollar bond buying program known as QE – the Fed chronicles. Aside from the shift to a globalization of QE via the European Central Bank (ECB) and Bank of Japan (BOJ) as I wrote about earlier, what lingers in the air of “post-taper” time is an absence of absence. For QE is not over. Instead, in the United States, the process has simply morphed from being predominantly executed by the Federal Reserve (Fed) to being executed by its major private bank members. Fed Chair, Janet Yellen, has failed to point this out in any of her speeches about the labor force, inflation, or inequality.
The financial system has failed and remains a threat to us all. Only cheap money and the artificial inflation of asset values can make it appear temporarily healthy. Yet, the Fed (and the Obama Administration) continue to perpetuate the illusion that making the cost of (printed) money zero by any means has had a positive effect on the population at large, when in fact, all that has occurred is a pass-the-debt-ponzi-scheme co-engineered by the Fed and big US bank beneficiaries. That debt, caught in the crossfires of this central-private bank arrangement, is still doing nothing for American citizens or the broader national or global economy.
The Fed is already the largest hedge fund in the world, with a book of $4.5 trillion of assets. These will plummet in value if rates rise. Cue the banks that are gearing up their own (still small in comparison, but give them time) role in this big bamboozle. By doing so, they too are amassing additional risk with respect to interest rates rising, on top of all their other risk that counts on leveraging cheap money.
Only the naïve could possibly believe that the Fed and its key banks haven’t been in regular communication about this US Treasury security shell game. Yet, aside from a few politicians, such as former Congressman Ron Paul, Congressman Sherrod Brown and Senators Bernie Sanders and Elizabeth Warren, the notion that Fed policy has helped bankers, rather than other people, remains largely divorced from bi-partisan political discussion.
Adding more fuel to the central-private bank collusion fire, is the fact that the Fed is a paying client of the JPM Chase. The banking behemoth is bagging fees for holding and executing transactions on the $1.7 trillion New York Fed’s QE mortgage portfolio, as brilliantly exposed by Pam Martens and Russ Martens.
Continue Reading At: NomiPrins.com
November 8, 2014
Could it really be this simple?
November 6, 2014
Ellen Hodgson Brown, J.D., is author of the recently published Public Banking Solution, but also the incisive and well documented The Web Of Debt – The Shocking Truth About Our Money System And How We Can Break Free. Her latter work is what will be covered lightly here.
For most of the modern world, money has been a staple of everyday life. A great deal of our daily functions revolve around this much used, but poorly understood economic tool.
In recent years, the monetary system has grown to untold levels. With inflation running rampant, student loan debts reaching preposterous levels, and quantitative easing in the fold, it’s no wonder that the ‘too-big-too-fail’ economic system seems to be cracking bit by bit.
Most [if not all] of the above issues stem from our inherent corrupt money system. The birth of this financial control grid is covered in extensive and mind-blowing detail in Brown’s Web Of Debt book.
Pulling no punches, this historic piece has got gall. Not afraid to name names, and branching through centuries of historical data, Brown’s work showcases what the financial, political, and elite minds of these times were pondering.
This particular piece also offers data/ideas on some of the vital issues we face and how we might overcome said issues.
From the inception to the private, and heinous Federal Reserve, up to current times, the reader will get ample evidence of the financial mishaps/crimes that are taking place. This is important, because much of the populace is unaware of these dealings.
If you wish to know the truth about our financial monetary system, the truth about its wide-ranging and sinister history, and ways in which to enrich your knowledge on this esoteric subject, then this book is definitely for you.
Other Suggested Reading
The Secrets Of Federal Reserve by Eustance Mullins
All The Presidents’ Bankers by Nomi Prins
November 6, 2014
November 2, 2014
October 31, 2014
“A reader lives a thousand lives before he dies, said Jojen. The man who never reads lives only one”
– George R.R. Martin, A Dance With Dragons
There were a variety of pieces on the newstream this week.
For starters, we find Dr. Mercola covering the ever-present issue of antibiotics in large-scale agriculture.
This issues is not only extremely under-reported by the rigged mainstream media, but its also important because of the effects that antibiotics are having on our foods. Past studies have even eluded to there being a 50% chance of you purchasing meat that contains drug-resistant bacteria.
Something families can do if they are worried about the above, is eating organically grass-fed beef, eat/juice fresh fruits and vegetables, while also making sure you are filtering your local water making sure to get rid of the toxin fluoride and other chemicals.
With that in mind, the piece below by Mrs. Sarich showcases more evidence as to why organic foods are superior to genetically modified foods.
A disturbing pattern we have seen is Big Pharma dodging responsibility and engaging in their corrupt ways. Below, Ethan A. Huff details the current attempt of Big Pharma to skirt responsibility regarding Ebola.
Continuing our focus on those undermining common sense, the article below covers the current push by the Susan G. Komen Foundation to promote carcinogen-laden chemicals in a duplicitous way.
Financial issues affect everyone in a variety of ways. The overly systemic issues are covered quite thoroughly by Nomi Prins in her latest article.
That’s it for now.
Make sure you to have a great weekend and spend time with family/friends. Take care.
By: Nomi Prins
October 28, 2014
The recent spike in global political-financial volatility that was temporarily soothed by ECB covered bond buying reveals another crack in the six-year-old throw-money-at-the-banks strategies of politicians and central bankers. The premise of using banks as credit portals to transport public funds from the government to citizens is as inefficient as it is not happening. The power elite may exude belabored moans about slow growth and rising inequality in speeches and press releases, but they continue to find ways to provide liquidity, sustenance and comfort to financial institutions, not to populations.
The very fact – that without excessive artificial stimulation or the promise of it – more hell breaks loose – is one that government heads neither admit, nor appear to discuss. But the truth is that the global financial system has already failed. Big banks have been propped up, and their capital bases rejuvenated, by various means of external intervention, not their own business models.
Last week, the Federal Reserve released its latest 2015 stress test scenarios. They don’t even exceed the parameters of what actually took place during the 2008-2009-crisis period. This makes them, though statistically viable, completely irrelevant in an inevitable full-scale meltdown of greater magnitude. This Sunday, the ECB announced that 25 banks failed their tests, none of which were the biggest banks (that received the most help). These tests are the equivalent of SAT exams for which students provide the questions and answers, and a few get thrown under the bus for cheating to make it all look legit.
Regardless of the outcome of the next set of tests, it’s the very need for them that should be examined. If we had a more controllable, stable, accountable and transparent system (let alone one not in constant litigation and crime-committing mode) neither the pretense of well-thought-out stress tests making a difference in crisis preparation, nor the administering of them, would be necessary as a soothing tool. But we don’t. We have an unreformed (legally and morally) international banking system still laden with risk and losses, whose major players control more assets than ever before, with our help.
The biggest banks, and the US and European markets, are now floating on more than $7 trillion of Fed and ECB intervention with little to show for it on the ground and more to come. To put that into perspective – consider that the top 100 global hedge funds manage about $1.5 trillion in assets. The Fed’s book has ballooned to $4.5 trillion and the ECB’s book stands at $2.7 trillion – a figure ECB President, Mario Draghi considers too low. Thus, to sustain the illusion of international systemic health, the Fed and the ECB are each, as well as collectively, larger than the top 100 global hedge funds combined.
Providing ‘liquidity crack’ to the financial system has required heightened international government and central bank coordination to maintain an illusion of stability, but not true stability. The definition of instability is this epic support network. It is more dangerous than in past financial crises precisely because of its size and level of political backing.
During the Panic of 1907, President Teddy Roosevelt’s Treasury Secretary, Cortelyou announced the first US bank bailout in the country’s history. Though not a member of the government, financier J.P. Morgan was chosen by Roosevelt to deploy $25 million from the Treasury. He and a team of associates decided which banks would live or die with this federal money and some private (or customers’) capital thrown in.
The Federal Reserve was established in 1913 to back the private banking system in advance from requiring future such government injections of capital. After World War I, a Laissez Faire policy toward finance and speculation, but not alcohol, marked the 1920s. before the financial system crumbled under the weight of its own recklessness again. So on October 24, 1929, the Big Six bankers convened at the Morgan Bank at noon (for 20 minutes) to form a plan to ‘save’ the ailing markets by injecting their own (well, their customer’s) capital. It didn’t work. What transpired instead was the Great Depression.
After the Crash of 1929, markets rallied, and then lost 90% of their value. Liquidity froze. Credit for the masses was as unavailable, as was real money. The combined will of President FDR and the key bankers of the day worked to bolster people’s confidence in the system that had crushed them – by reforming it, by making the biggest banks smaller, by separating bet-taking arms from those in which people could store, and borrow money from, safely. Political and financial leaderships collaboratively ushered in the reform measures of the Glass-Steagall Act. As I note in my most recent book, All the Presidents’ Bankers, this Act was not merely a piece of legislation passed in spirited bi-partisan fashion, but it was also a means to stabilize a system for participants at the top, middle and bottom of it. Stability itself was the political and financial goal.
Through World War II, the Cold War, and Vietnam, and until the dissolution of the gold standard, the financial system remained fairly stable, with banks handling their own risks, which were separate from the funds of citizens. No capital injections or bailouts were required until the mid-1970s Penn Central debacle. But with the bailout floodgates reopened, big banks launched a frenzied drive for Middle East petro-dollar profits to use as capital for a hot new area of speculation, Third World loans.
By the 1980s, the Latin American Debt crisis resulted, and with it, the magnitude of federally backed bank bailouts based on Washington alliances, ballooned. When the 1994 Mexican Peso Crisis hit, bank losses were ‘handled’ by President Clinton’s Treasury Secretary (and former Goldman Sachs co-CEO) Robert Rubin and his Asst. Treasury Secretary, Larry Summers via congressionally approved aid.
Afterwards, the repeal of the Glass Steagall Act, the mega-merging of financial players, the explosion of the derivatives market, and the rise of global ‘competition’ amongst government supported gambling firms, lead to increased speculative complexity and instability, and the recent and ongoing 2008 financial crisis.