Diversify Your Assets

Marc Faber Blog - 48 minutes ago

My advice would be to diversify heavily and have money in other jurisdictions than the United States, in other assets than US assets. In say Asia, Asian equities, Asian real estate. And I would have some m...

 

 

 

 

Alasdair Macleod: The destructive power of weak money

 

 

 

Fed managing 'orderly' rise in gold, Rickards tells Schall

Dear Friend of GATA and Gold:
The international currency wars will end in devaluation against gold, market analyst James G. Rickards tells the German journalist Lars Schall in an outstanding interview posted this week.

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GATA's Murphy, GoldMoney's Turk, and DEG's Boehringer take questions

Mike Krieger On The UN Power Grab 

Submitted by Tyler Durden on 06/09/2011 13:48 -0400

"The primary trend I see in the markets is the destruction of the purchasing power of all fiat currencies, with the U.S. dollar having the most to lose as the world’s reserve currency. Nothing throws a population into more of a tizzy than a destroyed currency. Similarly, nothing provides a more fertile ground for power hungry control freaks to take over your lives than economic chaos. What has really started getting my attention in the last several months is how the UN seems to be trying to position itself as a “world government” savior of sorts. First, the UN decided it would be a good idea to launch a war in Libya and Obama decided the U.S. would get involved without ever asking Congress for an authorization of force (which according to George Friedman of Stratfor is a first). What is so pathetic is where are the fake liberals in America? Where are the anti-war protests? We are so successfully divided in the fake Republican/Democrat, Red/Blue, Yankees/Mets paradigm of stupidity that the “left” in this country won’t criticize Obama for starting a new war because he is “their guy.” This is pathetic and dangerous because guess what will happen when we get a Republican thug as president that uses the precedents Obama has set to shed even more blood all over the world. Who will protest then and who will care? " 

 

 

 

 

 

Flow Of Funds Update: Aborted Attempt To Hand Over Releveraging From Government To Business Sector? 

Submitted by Tyler Durden on 06/09/2011 13:30 -0400

We have complete the cursory first run of the just released quarterly Flow of Funds (Z.1) updated for Q1 2011. While we will present the far more important breakdown of the shadow economy, we first focused on the key asset and liability data covering the household, corporate and government sectors, which presented few surprises. In summary, total household net worth increased by $1 trillion from $57.1 trillion to $58.1 trillion in the 3 months ended March 31, 2011. This the highest level of household net worth since Q2 2008 when it stood at $60 trillion, and still down substantially from the all time high of $65.7 trillion in the summary of 2007, or the peak of the credit bubble. Looking at the asset components we see once again just why Bernanke is so focused on pumping up the Russell 2000: the stock market (through holdings of corporate equities, mutual fund shares, and pension fund reserves), accounted for $1.2 trillion of the $1.0 trillion increase. This paper profit was offset by a $349 billion drop in mortgage equity, which declined to $18.1 trillion, the lowest in almost a decade. Additionally, household deposits increased to the peak level of $8 trillion once again, which is explainable since household liabilities declined with a drop in both mortgage ($68 billion) and consumer ($31 billion) debt. In a nutshell the consumer continues to delever. But probably the most surprising move was the substantial drop in the positive contribution to total debt from state and government debt. Coming in at $9.6 trillion, total government debt outstanding, rose by the lowest amount since Q2 of 2008, courtesy of a modest increase in Federal Government debt of $184 billion and an actual decline in state and local government debt of $18 billion. 

 

 

 

 

 

$13 Billion Year 30 Year Reopening Prices At 4.238%, 4 bps Tail 

Submitted by Tyler Durden on 06/09/2011 13:14 -0400

Today's $13 billion in 30 Year bonds (Cusip QQ4) priced at a disappointing 4.238%, with a nearly 4 basis point tail to the when issued which was trading at 4.19%, which resulted in spooking the bond market briefly and causing some LT curve jitters. The Bid To Cover was 2.63, a bounce from the May 2.43, though below the LTM average of 2.68. The internals were relatively normal: Indirects taking down a below average 38.4%, Directs purchasing 9.3% of the auction, and Dealers left holding the bag, even if only for 2 weeks, with 52.3% of the auction. The Indirect bidder hit rate raised a few red flags coming in at a rather high 77.3%, although besides the surprisingly big tail, the auction once again came in as expected, which is to be expected: after all dealers will flip the bulk of it back to the Fed at the next two 17-30 year POMO. 

 

 

 

 

 

Is The Debt Problem As Bad As They Say 

On the rare occasion that I’m bored, I like to watch 24-hour news television for entertainment. It’s hilarious watching the talking heads spin out of control in apoplectic fits when they’re essentially arguing the same point; they might be from different parties, but they’re merely battling over small details of the same government-sponsored solution. Recently I caught one of these talking head financial experts on TV arguing about debt levels in the United States. He was saying that the US debt doesn’t matter all that much because the US government has so many assets to offset its debt. For example, he suggested that things like the highway system, national parks, and strategic petroleum reserve would more than offset America’s liabilities, so the looming national debt isn’t such a big deal after all. He couldn’t have been more wrong. 

 

 

 

 

 

German Federal Constitutional Court To Challenge Greek Bailout, Claims Action Is Unconstitutional 

Submitted by Tyler Durden on 06/09/2011 11:50 -0400

Just like last year when the first bailout of Greece was met with significant opposition by German constitutional professors, the constitutionality of the upcoming bailout #2 is about to be questioned. Only this time it does not come from powerless academic but from the very top: the Federal Constitutional Court. From Frankfurter Allgemeine (google translated): "The federal government has to explain how the measures are compatible with the Basic Law....The government will have to justify before the court how the measures conform to the stabilization of the European currency with the Basic Law, and possibly with European law. It was originally envisaged in the Second Senate to negotiate in private. But this stance has apparently changed in the course of the discussions." As expected, the fine legal print is once again about to throw a major monkey wrench in the ongoing usurpation of constitutional right by the banking syndicate.

Dealers Scramble To Cut Treasury Exposure Ahead Of QE2 End, Flip Record 75% Of Just Issued 7 Year Allocation To The Fed 

Submitted by Tyler Durden on 06/09/2011 11:28 -0400

For those who care what is happening behind the scenes even as everyone continues to predict there will be no snags associated with the transition from a QE2 to a non-QE2 world, should look at this brief analysis. On May 26 the Treasury issued $29 billion in 7 Year bonds (Cusip QQ6)- the auction was considered a smashing success by all with the Bid To Cover coming at a record high 3.24 Bid To Cover, and pricing 2 bps inside of the When Issued: an indication of massive demand. Dealers were allocated $11.4 billion and as Stone McCarthy reported: "The $62.3 billion Dealer bid was up from $54.7 billion last month and it was the largest Dealer bid since February 2010." So far so good right? Here is what happened next. On June 1, barely a day after the bonds had settled, Dealers shipped $5.393 billion right back to the Fed (making who knows how much in "fees" in the process) in that day's POMO. And today, just a week after the last 7 year targeting POMO, Dealers sold another $3.168 billion to Brian Sack. Total tally: $8.561 billion monetized by the New York Fed in less than two weeks following the auction. Simply stated: the Dealers' unprecedented interest  in the auction... was transitory. Just two weeks later, the Dealers have flipped back 75% of their entire position in the latest 7 Year On The Run bond. And this is the kind of sleight of hand that allows the Treasury to represent success after success in bond auctions, only to allow the Fed to do the backdoor switcheroo literally hours later, and compensate the conning Dealers for fooling the marks: in this case US taxpayers, naive believers that there is actual interest in US Paper, and of course China and other foreign investors who bought $13.8 billion of the same auction. What happens when Dealers are unable to flip up to 75% of any given bond back to the Fed in under two weeks: stay tuned and find out in precisely 3 weeks.





Eighteen terrible signs the collapse of America is accelerating
"Frustration is starting to boil over, and it is only going to get worse..." 





UPDATE on Police State | “SWAT” Team Breaks Down Door, Detains Man for Wife’s Defaulted Student Loans

Posted by: 4closureFraud

Post date: 06/09/2011 - 11:28

Post Includes Police State Search Warrant on Student Loan “Default”

 

 

 

 

 

 

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