|Ready or not, QE3 is here, and the long-term effects of this
reckless money printing by the Federal Reserve are going to be
I don’t know how many years we still have, but you can assume that central banks, as the ECB stated just recently, will do everything necessary to prevent a collapse of the system. That means they will even finance bankrupt governments, they will finance bankrupt banks, they will finance every bankrupt entity that is important to the system.
That means they debase our paper currencies further and further, and in an accelerating way. This is very bullish news for all of the gold holders of course. A good year or so ago, gold had accelerated into a sort of a climax peak above $1,900. It has taken almost a year to correct that sharp advance.
Felix Zulauf AUDIO INTERVIEW @ KingWorldNews.com
In two weeks the Greek economy will once again suffer the consequences of European indentured servitude when it two main labor unions will grind the system to a halt with a general strike against planned austerity measures on September 26. Spain, however, can't wait, and is already out in the streets (video of today's protest can be found at BBC). From Al Jazeera: "Thousands of Spanish anti-austerity protesters have taken to the streets of Madrid to rally against government cuts aimed at cutting the public deficit. The demonstrators assembled in groups at noon on Saturday along the central streets of the capital city in a protest against spending cuts and tax rises. The developments came as Luis de Guindos, economy minister, said that Spain's borrowing costs still do not reflect the country's economic and fiscal adjustment, despite their recent easing." The key word uttered that makes this whole protest a moot point: "referendum" - silly Europeans don't seem to get quite yet that Democracy has been dead for decades, supplanted by kleptofascist globalization with just enough handouts for the lower and middle classes (usually in terms of welfare promises) to keep everyone happy. Actually make that silly Americans and Asians too.
Dr. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor has been reacting to the announcement Thursday of a third round of quantitative easing by the Federal Reserve.
He sees the Fed’s action as ludicrous, leading to higher asset prices benefiting the wealthy while the man on the street faces higher cost of living and more job losses. He likens big government to a cancer taking away people’s freedom and says the US is facing a fiscal Grand Canyon with never ending deficits.
Speaking to CNBC‘s Worldwide Exchange today, Faber said: “This time it’s not only QE3, it is unlimited QE going on forever,” with the Fed buying mortgage- backed securities and continuing operation Twist.
What are the consequences of QE forever?
“Asset prices will go up and the money will flow to the Mayfair Economy,” he said, defining the latter as an “economy of the rich people whose assets prices go up and whose net worth increases” without any trickle down benefit to the real economy.
Read More @ LewRockwell.com
Yesterday, when we first presented our calculation of what the Fed’s balance sheet would look like through the end of 2013, some were confused why we assumed that the Fed would continue monetizing the long-end beyond the end of 2012. Simple: in its statement, the FOMC said that “If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.” Therefore, the only question is by what point the labor market would have improved sufficiently to satisfy the Fed with its “improvement” (all else equal, which however – and here’s looking at you inflation – will not be). Conservatively, we assumed that it would take at the lest until December 2014 for unemployment to cross the Fed’s “all clear threshold.” As it turns out we were optimistic. Bank of America’s Priya Misra has just released an analysis which is identical to ours in all other respects, except for when the latest QE version would end. BofA’s take: “We do not believe there will be “substantial” improvement in the labor market for the next 1.5-2 years and foresee the Fed buying Treasuries after the end of Operation Twist.” What does this mean for total Fed purchases? Again, simple. Add $1 trillion to the Zero Hedge total of $4TRN. In other words, Bank of America just predicted at least 2 years and change of constant monetization, which would send the Fed’s balance sheet to grand total of just over $5,000,000,000,000 as the Fed adds another $2.2 trillion MBS and Treasury notional to the current total of $2.8 trillion.
Read More @ Zero Hedge
Here are some common-sense rules for such a "new market":
- Every offer and bid will be left up for 15 minutes and cannot be withdrawn until 15 minutes has passed.
- Every security--stock or option--must be held for a minimum of one hour.
- Every trade must be placed by a human being.
- No equivalent of the ES/E-Mini contract--the futures contract for the S&P 500--will be allowed. The E-Mini contract is the favorite tool of the Federal Reserve's proxies, the Plunge Protection Team and other offically sanctioned manipulators, as a relatively modest sum of money can buy a boatload of contracts that ramp up the market.
- All bids, offers and trades will be transparently displayed in a form and media freely available to all traders with a standard PC and Internet connection.
- Any violation of #3 will cause the trader and the firm he/she works for to be banned from trading on the exchange for life--one strike, you're out.
Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
I'm PayPal Verified
More bank runs in Spain/Spanish housing contracts another 14.4%/USA consumer prices soar/Retail Sales in USA weak/
Max Keiser and Stacy Herbert discuss Jamie Dimon’s collateral transformation desk feeding the multitude of banksters with five quadrillion in infinitely leveraged toxic derivatives and two Treasury bills of a bankrupt nation. In the second half of the show, Max Keiser talks to Joshua Mellors of SocialJusticeFirst.com about financial suicides and the government and banking policies that cause it.
After three full days of fairly intense Summiteering, I have reams of notes I could share with you, given sufficient time. As I don’t have that time, I’ll try to summarize just a few of the key points.
In no particular order…
- The data confirms that the global economy remains in deep trouble. Not
just “a little”‘ trouble, or “some” trouble – but trouble of the sort
that comes along only every few generations. You know, WWII-level
trouble – the sort of stories you’ll someday regale your
Of course, this rather dire view comes as no surprise to most dear readers. It should come as no surprise to anyone, at least anyone paying even the slightest attention to the steady flow of bad economic news.
In Carlsbad, we heard any number of perspectives on just how long this crisis might last (another ten years is well within the range of possibilities) or how bad things might get (Doug-Casey bad).
Read More @ CaseyResearch.com
by Andrew Trotman, The Telegraph:
The UK’s central bank is to sell off £5, £10, £20 and £50 notes that appear to be completely normal.
However, due to their condition and serial numbers, they will be sold for hundreds of pounds. One £50 note has a guide price of £300 to £400.
The notes up for auction are special because they have not been in circulation and have matching, low serial numbers, thisismoney.co.uk reported. Last week it was revealed that the BoE has started to issue notes with a new signature, which will eventually replace those currently in circulation.
A spokesman for the BoE said that bank notes signed by Chris Salmon, who is the new Chief Cashier, have been appearing in the banking system since September 12. Older notes, signed by former Chief Cashier Andrew Bailey will be removed from circulation as they become unfit to use.
It is the cashier’s signature on the bank note that renders the BoE liable to honour the note, which is really an IOU.
Read More @ Telegraph.co.uk
Bernanke Secretly Gives away Sixteen Trillion Dollars
“The first ever GAO (Government Accountability Office) audit of the US Federal Reserve was recently carried out due to the Ron Paul/Alan Grayson Amendment to the Dodd-Frank bill passed in 2010. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, while leading the charge for an audit in the Senate, watered down the original language of house bill (HR1207) so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and others, opposed the audit.
What the audit revealed was incredible: between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments by giving them US$16,000,000,000,000.00 – that’s 16 TRILLION dollars.” Richard Mills
It gets worse, much worse, in fact it’s downright incestuous.Let’s do a follow up and see who, besides *foreign banks and corporations from Scotland to South Korea, received a large chunk of that money.
* Banks like JP Morgan benefited from the foreign bailouts – they are some of the largest creditors of the bailed out countries. Instead of having to write off their foreign losses the US Federal Reserve bailouts enabled them to be paid in full.
Read More @ AheadOfTheHerd.com
Historically, the most terrible things – war, genocide, and slavery – have resulted not from disobedience, but from obedience.
- Howard Zinn
We cannot defend freedom abroad by deserting it at home.
- Edward R. Murrow
Talent hits a target no one else can hit; Genius hits a target no one else can see.
- Arthur Schopenhauer
I think 4Q12 and then 2013 will in many ways be the polar opposite of what we have seen thus far in 2012. As you all know, this year is a presidential election year in the U.S., which means predictably that the incumbent president does everything in his power (which these days is pretty much everything) to get reelected. As with everything else in life, there is no free lunch and there will inevitably be painful payback next year as the necessities of being returned to power fade momentarily. This is sort of obvious. What I find much more interesting is the actual global macroeconomic backdrop combined with what Central Planners have done as of late. Since late 2011 the Central Planners of the world began trying out a new strategy. Delay and jawbone, or propagandize and pray. In other words, when things started looking dicey all of these naked emperors (particularly in the EU) would call a meeting and threaten to take “drastic action” or some nonsense like that.
Read More @ LibertyBlitzkreig.com
Silver is mined year-round at a fairly constant rate across the globe. Thus it is somewhat counterintuitive that this metal would exhibit marked seasonal tendencies tied to the calendar. But it sure does. Unlike the agricultural commodities, silver’s seasonality is driven by fluctuations in demand rather than supply. And silver is just entering its strongest time of the year, which is very bullish for it and its miners’ stocks.
The primary driver of silver price action is gold. The vast majority of the time with few exceptions, silver’s fortunes are closely slaved to gold’s. Investors and speculators are only likely to plow capital into silver and drive up its price rapidly when gold is thriving. Gold strength naturally stokes greed for the highly-speculative white metal. And later when gold corrects, traders are quick to abandon silver in sympathy.
Today’s secular silver bull was born way back in November 2001, when silver traded near $4 per ounce (and gold under $275). Since then, silver has catapulted a breathtaking 1105% higher at best as of its latest major high in April 2011! The gains prudent contrarians like our subscribers have won in this sector have been epic beyond belief. But traders can’t forget gold truly is the key to thriving in silver.
Read More @ SilverSeek.com
In Southeast Asia, nestled in the South China Sea, lies Malaysia. Just slightly larger than New Mexico and established in 1963, Malaysia is not typically the first location that comes to mind when thinking of international intrigue. Nevertheless, that is exactly where this Ian Fleming style story of international finance takes place—a story that at its heart is another piece of the tale of the death of the U.S. dollar.
As reported by Reuters:
Iran is using a little-known port off the East Malaysia coast to hide millions of barrels of oil from Western sanctions, according to shipping data, industry sources and officials.The U.S. has levied sanctions against Iran for the better part of 30 years, initially as a response to the Islamic revolution of 1979. U.S. President Barack Obama’s recent tightening of sanctions is ostensibly in response to Iran’s growing nuclear capability and fears it will develop nuclear weapons. A number of nations have joined the U.S. in imposing sanctions against Iran ranging from banning of sales of military weapons to Iran to banning companies from doing business with Iran.
Read More @ WealthCycles.com
We warned early this year in “Arab Spring Turns To Winter” and numerous other articles that the Obama Administration initiative to put the full-force of America’s military and diplomatic clout behind leveraging “Arab Spring” protests to transform the Middle East into progressive democracies would lead to a disaster for the United States. The deaths of four diplomatic personnel during coordinated attacks by Sunni Muslim Jihadists on American Embassies in Cairo, Egypt and Benghazi, Libya confirms that U.S. policy has been the change agent that converted stable dictatorial regimes into impoverished hell-holes. Run by murderous tribal thugs, their only common interest is hatred of America as the Great Satan.
It was well known that the eleven year anniversary of the “911” terrorist attack on the United States would present an excellent opportunity to stage a highly visible attack on an American soft target. Middle Eastern papers were running inflammatory headlines and articles, such as Al Jazeera’s lead picture of a bound and blindfolded Arab under the headline: “Iraq Execution Spree under the Spotlight.”
In Cairo, approximately 3,000 Islamist supporters of the Salafist Sunni Muslim movement gathered at the US embassy in supposed protest against the amateur English language film, which had recently been dubbed into Arabic.
Read More @ TestosteronePit.com
Apart from Mitt Romney’s ridiculous slur against President Obama after the slaying of U.S. Ambassador Chris Stevens, Americans should focus on the state of affairs suggested by the following questions: When was the last time a Chinese diplomat was killed or even roughed up by an angry mob? When did you last hear about a Chinese embassy being burned down or pillaged?
From Morocco and Tunisia to Libya, Egypt, Yemen and Iraq, anti-American crowds have taken to the streets. The outpouring of hatred is symptomatic of the fact that across much of North Africa, the Middle East and Central Asia, American policy is in tatters—probably more than ever before. The region is strewn with the wreckage of failed U.S. ambitions and disastrous American plans.
Incredibly, even as the U.S. surveys the shambles that Libya has become, there are still American officials pushing for the United States to intervene in Syria’s bloody civil war. (In fact, for months now, the U.S. and some of its Arab allies have been clandestinely doing just that.) Even the prime minister of Israel, supposedly America’s most valuable ally in the region, makes political points by sticking his finger in President Obama’s eye.
Read More @ TruthDig.com
This excellent interview tells the truth about the reasons for the Muslim protests – Its about NATO bombing and the backing of Saudi Jihadists.
RT finally asks the question the western media won’t: If these are anti-American protests why are UK and Germany embassies being targeted. The answer is quite simple – Its because their involvement with NATO, the backing of Saudi Salafist Jihadists and the bombing of Muslims around the the world.
With gold on the move once again, today John Embry told King World News, “I’m still of the mind that we will be in record territory before year end.” Embry also said, “We did our bit by buying another $392 million worth of gold for the Sprott Physical Gold Trust.” Embry spoke about silver, “I’m wildly bullish on silver. I don’t think the physical market has ever been this tight.”
Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: “I think the action is positive, but at the same time I’m infuriated by the continued interference with the markets by the powers that be. There is tremendous manipulation going on in both gold and silver right now. Two days before the QE announcement they dropped the price of silver about $1.50 in a nanosecond.”
Embry continues @ KingWorldNews.com
Let The Pumping Begin!
US-Backed Terrorist “Blowback”
Jobs and Inflation
Median Household Income Has Fallen
NDAA’s Military Detention Blocked Permanently
Opting Out of Banking System
Flu Shot Worsens H1N1 Symptoms
Pop! Spain is Cooked
Obama’s Middle East Policy Is in Ruins
Gold & Silver and Inflation
Social Security and Disability Payments Hit Annual Records
US and China Secretly Testing GMO Rice on Children
House Approves Warrantless Spy Powers