My Dear Extended Family,
This is definitely the weekend of discontent. The amount of confusion in the community may well be at a spiritual level. It is as if readers have forgotten the message of more than ten years. The problem is in semantics, the meaning of words. So again for the multi thousandth time, let’s review as simply stated as possible.
Definitions:
Inflation is the increase of money supply.
Deflation is the failure of debt, both public and private.
QE is the non-economic purchasing of debt by a central bank and the funding of the same by other central banks rendering chart near meaningless. Non economic because the normal motivation for the purchase, appreciation or short covering, it not the motivating factor.
Premise:
Because of the size and condition of Western world debt deflation or the failure of debt, both private and public, cannot be permitted without replacing the lost funds back into the financial system or funding the gains on the defunct OTC derivatives held within the financial system.
Conclusion:
Increasingly difficult business conditions cannot be entertained because the problem is based on a balance sheet weakness situation now hidden from view by the decision of the FASB, the gatekeepers of accounting. The FASB allows financial institutions to value their complex OTC derivatives at what they decide, not market to true value, what something is worth to another at balance sheet closing time. Failure to produce an ebullient economic recovery demands the ultimate stimulus, QE, which is debt monetization on steroids, to prevent a collapse of the financial sector.
Therefore looking back to 2010 when the illustration of three stages of the skier was offered to you reflects the above prediction of how the economy and central bank’s activity will unfold. There is absolutely no change in the series of events that will pan out as predicted.
Deflation as outlined above is the key element in the analysis. Default on sovereign debt and losses such as the 2 billion estimated blown by Morgan is the form of deflation in the analysis.
The following will occur exactly as outlined in 2010.
Jim Sinclair’s Commentary
For more weekend clarification:
A simple rebut of the one euro to one dollar crowd.
If a major corporation with subsidiaries equal in number to the member countries of the European Union, some profitable others losers, was to eliminate one to three of the major losers, would the corporation be worth more or less? The answer is fundamentally the same or more at the time of action.
Therefore if the euro was to shake off two of its weakest members would it be worth more or less? The answer fundamentally is the same or more.
This insults the one euro to one dollar school popular with MSM and MOPE, but it might be wise for that school to consider.
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by Be Informed, SHTFPlan:
I have become personally so disenchanted with the way people fail to prep. People still don’t understand how important it is to put away. I have gotten into arguments over this and had cretins call me a fool because I put away food, water, and supplies. I thought about this and the frustration that other preppers have with this laid back idiotic attitude that there is no need for preparation. There are good people that just can’t/won’t start preparing. They have the money to do so, but just don’t want to. Many have only seen what happens to non-preppers on TV, but it still doesn’t make an impact. Read More @ SHTFPlan.com
Editor’s
Note: You have no doubt had your own set of issues dealing with friends
and family members that simply don’t see the writing on the wall. The
following article may serve to assist you in convincing those who simply
don’t know, don’t want to know, don’t care, or have never even thought
to contemplate. Some of the scenarios outlined below may be frightening,
as they should be, because when it hits the fan millions of people will
be thrown into desperation with no hope of a solution. Be Informed
provides a variety of point-by-point details that may (and hopefully
will) convince the non-prepared individual to at least insulate
themselves with the basic necessities. The consequences for not doing
so, as you’ll see, are severe and often deadly.
I have become personally so disenchanted with the way people fail to prep. People still don’t understand how important it is to put away. I have gotten into arguments over this and had cretins call me a fool because I put away food, water, and supplies. I thought about this and the frustration that other preppers have with this laid back idiotic attitude that there is no need for preparation. There are good people that just can’t/won’t start preparing. They have the money to do so, but just don’t want to. Many have only seen what happens to non-preppers on TV, but it still doesn’t make an impact. Read More @ SHTFPlan.com
The Endgame: “Greeks feel hopeless”
from Testosterone Pit.com:
On Thursday, rumors that Greece would have a government goosed the stock markets in Europe. While everybody was out to lunch in Frankfurt, the DAX ran up 110 points, before it settled down a bit. In Athens, the ATHEX, which appears to be on a multi-year trajectory toward zero, jumped 4.2% and the bank index 13%. But on Friday, when it became clear that the rumor was just another rumor, the ATHEX resumed its downward trajectory. And Greeks went to bed without a new government.
During the May 6 election, Greek voters demolished the former top two political parties—the conservative New Democracy and socialist PASOK—that had divvyied up the spoils for decades and that had gotten Greece into its morass. In their outrage, Greeks voted for every alternative in sight, from the radical left to the Neo-Nazis on the right—in the process clobbering those who’d signed the reform memorandum that the Troika had handed them in exchange for hundreds of billions of bailout euros. Neither New Democracy with 18.9% nor PASOK with 13.2% had the votes to govern. And by Friday, all efforts had failed to form a coalition government of whatever kind.
Read More @ TestosteronePit.com
On Thursday, rumors that Greece would have a government goosed the stock markets in Europe. While everybody was out to lunch in Frankfurt, the DAX ran up 110 points, before it settled down a bit. In Athens, the ATHEX, which appears to be on a multi-year trajectory toward zero, jumped 4.2% and the bank index 13%. But on Friday, when it became clear that the rumor was just another rumor, the ATHEX resumed its downward trajectory. And Greeks went to bed without a new government.
During the May 6 election, Greek voters demolished the former top two political parties—the conservative New Democracy and socialist PASOK—that had divvyied up the spoils for decades and that had gotten Greece into its morass. In their outrage, Greeks voted for every alternative in sight, from the radical left to the Neo-Nazis on the right—in the process clobbering those who’d signed the reform memorandum that the Troika had handed them in exchange for hundreds of billions of bailout euros. Neither New Democracy with 18.9% nor PASOK with 13.2% had the votes to govern. And by Friday, all efforts had failed to form a coalition government of whatever kind.
Read More @ TestosteronePit.com
by Andy Sutton, Sutton-Associates.net:
Since the housing bubble burst spectacularly in late 2007, many analysts have been actively seeking out the next likely explosion. Rest assured, it will be related to debt in some way. US Treasuries, credit cards, and potentially another disaster on Wall Street thanks to over-leveraging have all been mentioned as potential leading candidates. However, there is another bubble out there and it too is debt related. This one, in my opinion, has far greater consequences because it involves a group that is the least financially able to deal with the ramifications. I’m talking about student loans and the massive bubble that has been expanding for at least the past decade.
Read More @ Sutton-Associates.net
Since the housing bubble burst spectacularly in late 2007, many analysts have been actively seeking out the next likely explosion. Rest assured, it will be related to debt in some way. US Treasuries, credit cards, and potentially another disaster on Wall Street thanks to over-leveraging have all been mentioned as potential leading candidates. However, there is another bubble out there and it too is debt related. This one, in my opinion, has far greater consequences because it involves a group that is the least financially able to deal with the ramifications. I’m talking about student loans and the massive bubble that has been expanding for at least the past decade.
Read More @ Sutton-Associates.net
We Can Witness A Crash, Like In 1987
Admin at Marc Faber Blog - 4 hours ago
“If it moves and makes a high above 1,422, the second half of the year
could witness a crash, like in 1987.” - *in Bloomberg *
*
*
*Related, Nasdaq, Dow Jones, S&P 500 Index*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Untitled
Admin at Jim Rogers Blog - 4 hours ago
The average age of farmers in America is 58 years old. In Japan, the
average age is 66. In Australia, it’s 58. Hundreds of thousands of Indian
farmers commit suicide every year. It’s a disastrous business. In the U.K.,
the highest rate of suicide is in agriculture. It’s been a horrible
business for 30 years. Prices have to go up – have go to up a lot – or
we’re not going to have any food at any price. - *in Forbes *
*
*
Related: Potash (POT), Mosaic (MOS), John Deere (DE)
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently fea... more »
Tavakoli: JPMorgan May Be a Trading Accident Waiting To Happen
from TheAlexJonesChannel:
Mike Adams talks with Arnie Gundersen, the chief engineer of energy consulting company Fairewinds Associates and a former nuclear power industry executive. Mr. Gundersen continues to warn about the cataclysmic potential of the damaged Fukushima nuclear plant and is now warning about serious problems at the San Onofre nuclear plant in San Diego.
Mike Adams talks with Arnie Gundersen, the chief engineer of energy consulting company Fairewinds Associates and a former nuclear power industry executive. Mr. Gundersen continues to warn about the cataclysmic potential of the damaged Fukushima nuclear plant and is now warning about serious problems at the San Onofre nuclear plant in San Diego.
from KingWorldNews:
Today Michael Pento told KWN why “this summer is going to be disastrous for equity prices.” Pento, of Pento Portfolio Strategies, also stated he believes JP Morgan, the Fed and gold are headed for a major showdown. But first, when asked about the JP Morgan debacle, Pento responded, “I blame the Fed, like I do for much of the world’s ailments. The Fed buys a bond from JP Morgan, yielding say 2% on the 10-Year, and then they expect the bank, JP Morgan, to accept 25 basis points from the Federal Reserve. Now, they have to beat earnings by a penny, so what do they do?”
Pento continues @ KingWorldNews.com
Today Michael Pento told KWN why “this summer is going to be disastrous for equity prices.” Pento, of Pento Portfolio Strategies, also stated he believes JP Morgan, the Fed and gold are headed for a major showdown. But first, when asked about the JP Morgan debacle, Pento responded, “I blame the Fed, like I do for much of the world’s ailments. The Fed buys a bond from JP Morgan, yielding say 2% on the 10-Year, and then they expect the bank, JP Morgan, to accept 25 basis points from the Federal Reserve. Now, they have to beat earnings by a penny, so what do they do?”
Pento continues @ KingWorldNews.com
by Juan Cole, OilPrice.com:
Secretary of State Hillary Clinton said in India on Monday that New Delhi can reduce its oil imports from Iran further, pressuring that country to fall in line with unilateral US sanctions and Washington’s virtual blockade on the sale of Iranian petroleum. India, however, pushed back, saying it would maintain its trade ties with Iran. Prime Minister Manmohan Singh offered an offset to his disappointing message to Clinton, however, pledging that he would open up ownership of retail businesses to foreign firms (at the moment retailers have to be 51% Indian-owned). US retail corporations are eager to get into the Indian market. I apologize for citing the tabloid Daily Mail here, but actually its story is much better and more thorough than most American outlets, who don’t mention that Singh told the Secretary of State “no” on Iran. The USA Today actually spoke about Iran’s “nuclear arms program” (which Secretary of Defense Leon Panetta says does not exist).
Also yesterday, a major Iranian trade delegation was in India, seeking to boost Iranian imports from India to $6 billion a year. Some Indian firms are afraid, but many see a rare opportunity here to expand their exports to Iran, filling the vacuum created by the increasing US and European Union trade boycott with that country. Those that are oriented in their trade to domestic markets or the rest of Asia might be especially bold in this regard.
Read More @ OilPrice.com
Secretary of State Hillary Clinton said in India on Monday that New Delhi can reduce its oil imports from Iran further, pressuring that country to fall in line with unilateral US sanctions and Washington’s virtual blockade on the sale of Iranian petroleum. India, however, pushed back, saying it would maintain its trade ties with Iran. Prime Minister Manmohan Singh offered an offset to his disappointing message to Clinton, however, pledging that he would open up ownership of retail businesses to foreign firms (at the moment retailers have to be 51% Indian-owned). US retail corporations are eager to get into the Indian market. I apologize for citing the tabloid Daily Mail here, but actually its story is much better and more thorough than most American outlets, who don’t mention that Singh told the Secretary of State “no” on Iran. The USA Today actually spoke about Iran’s “nuclear arms program” (which Secretary of Defense Leon Panetta says does not exist).
Also yesterday, a major Iranian trade delegation was in India, seeking to boost Iranian imports from India to $6 billion a year. Some Indian firms are afraid, but many see a rare opportunity here to expand their exports to Iran, filling the vacuum created by the increasing US and European Union trade boycott with that country. Those that are oriented in their trade to domestic markets or the rest of Asia might be especially bold in this regard.
Read More @ OilPrice.com
from Patrick McGeehan, NYTimes.com:
The high price of oil is not the only effect of commodity inflation hitting the streets of New York. A surge in the value of copper, iron and other metals has fueled a wave of thefts from sidewalks, roadways and rail yards in the last few months.
On Wednesday alone, the New York police arrested three men for stealing hunks of cast iron — grates made to protect tree roots and manhole covers weighing as much as 300 pounds. The arrests followed reports of the disappearance of dozens of the grates and covers across the city and came on top of a continuing spree of thefts of copper wire from utility cables.
“It’s about money,” said Kevin Rafferty, president of Dublin Scrap Metal in Newark. “The economy’s tough, and people are looking to sell whatever they can find to sell.”
Read More @ NYTimes.com
The high price of oil is not the only effect of commodity inflation hitting the streets of New York. A surge in the value of copper, iron and other metals has fueled a wave of thefts from sidewalks, roadways and rail yards in the last few months.
On Wednesday alone, the New York police arrested three men for stealing hunks of cast iron — grates made to protect tree roots and manhole covers weighing as much as 300 pounds. The arrests followed reports of the disappearance of dozens of the grates and covers across the city and came on top of a continuing spree of thefts of copper wire from utility cables.
“It’s about money,” said Kevin Rafferty, president of Dublin Scrap Metal in Newark. “The economy’s tough, and people are looking to sell whatever they can find to sell.”
Read More @ NYTimes.com
by Jeff Nielson, Bullion Bulls Canada:
If ever we needed proof of the saturation-level brainwashing to which the Western masses are now subjected (and to which they have succumbed), there is no clearer evidence than the U.S. Treasuries market.
The U.S. economy has never been less-solvent in its entire history, meaning that U.S. Treasuries have never been less valuable. The new supply of U.S. Treasuries grossly exceeds any level of paper the U.S. has ever pumped into global markets before, meaning that Treasuries have never been less valuable. And yet we see (alleged) buyers being permanently willing to pay (by far) the highest prices in history for these mountainous stacks of paper.
Read More @ BullionBullsCanada.com
If ever we needed proof of the saturation-level brainwashing to which the Western masses are now subjected (and to which they have succumbed), there is no clearer evidence than the U.S. Treasuries market.
The U.S. economy has never been less-solvent in its entire history, meaning that U.S. Treasuries have never been less valuable. The new supply of U.S. Treasuries grossly exceeds any level of paper the U.S. has ever pumped into global markets before, meaning that Treasuries have never been less valuable. And yet we see (alleged) buyers being permanently willing to pay (by far) the highest prices in history for these mountainous stacks of paper.
Read More @ BullionBullsCanada.com
from Silver Vigilante:
Max Keiser spoke to approximately 100 people in an appearance that was scantily advertised. He covered topics such as prosecution of criminal bankers, a new global currency, gold and silver as security, and the internationalization of one’s life.
“So, did you know that in China they hang bankers?” Keiser began his set.
Keiser spoke for approximately 45 minutes before turning the event over for Question and Answers which lasted approximately another hour.
Read More @ SilverVigilante.com
Max Keiser spoke to approximately 100 people in an appearance that was scantily advertised. He covered topics such as prosecution of criminal bankers, a new global currency, gold and silver as security, and the internationalization of one’s life.
“So, did you know that in China they hang bankers?” Keiser began his set.
Keiser spoke for approximately 45 minutes before turning the event over for Question and Answers which lasted approximately another hour.
Read More @ SilverVigilante.com
by James E. Miller, Mises.ca:
Unbelievable.
That is the only way to express this author’s utter bewilderment that former Federal Reserve chairman Alan Greenspan is still given an outlet to speak his mind. Actually, I am surprised Mr. Greenspan has the audacity to show his face, let alone speak, in public after the economic destruction he is responsible for.
It was because of Greenspan, of course, that the world economy is still muddling its way along with painfully high unemployment. His decision to prop up the stock market with money printing under any and every threat of a downtick in growth, also known as the Greenspan Put, created an environment of easy credit, reckless spending, and along with the federal government’s initiatives to encourage home ownership, the foundation from which a housing bubble could emerge.
It was moral hazard bolstering on a massive scale. Wall Street quickly learned (and the lesson sadly continues today) that the Federal Reserve stands ready to inflate should the Dow begin to plummet by any significant amount.
Read More @ Mises.ca
Unbelievable.
That is the only way to express this author’s utter bewilderment that former Federal Reserve chairman Alan Greenspan is still given an outlet to speak his mind. Actually, I am surprised Mr. Greenspan has the audacity to show his face, let alone speak, in public after the economic destruction he is responsible for.
It was because of Greenspan, of course, that the world economy is still muddling its way along with painfully high unemployment. His decision to prop up the stock market with money printing under any and every threat of a downtick in growth, also known as the Greenspan Put, created an environment of easy credit, reckless spending, and along with the federal government’s initiatives to encourage home ownership, the foundation from which a housing bubble could emerge.
It was moral hazard bolstering on a massive scale. Wall Street quickly learned (and the lesson sadly continues today) that the Federal Reserve stands ready to inflate should the Dow begin to plummet by any significant amount.
Read More @ Mises.ca
by Richard (Rick) Mills, Ahead of the Herd:
As a general rule, the most successful man in life is the man who has the best information
Many have called for very high levels of inflation possibly leading to hyperinflation. Their reasoning is that over printing of the US dollar will cause the dollar to weaken and inflation to set in – more money chasing the same amount, or less, of goods causes prices to rise. A rise in gold and silver (and commodities prices), would be the result.
The called for massive inflation hasn’t yet happened, yes there’s been more than a modest rise in the real price of goods (much more then the government measured Consumer Price Index), but treasury yields and home prices are at record lows, jobs have languished and credit has stalled. These are not the conditions one would expect to see in a highly inflationary environment.
This brings up two questions:
Read More @ AheadOfTheHerd.com
As a general rule, the most successful man in life is the man who has the best information
Many have called for very high levels of inflation possibly leading to hyperinflation. Their reasoning is that over printing of the US dollar will cause the dollar to weaken and inflation to set in – more money chasing the same amount, or less, of goods causes prices to rise. A rise in gold and silver (and commodities prices), would be the result.
The called for massive inflation hasn’t yet happened, yes there’s been more than a modest rise in the real price of goods (much more then the government measured Consumer Price Index), but treasury yields and home prices are at record lows, jobs have languished and credit has stalled. These are not the conditions one would expect to see in a highly inflationary environment.
This brings up two questions:
Read More @ AheadOfTheHerd.com
by Daniel Wagner, AP via Finance.Yahoo.com:
JPMorgan Chase faced intense criticism Friday for claiming that a surprise $2 billion loss by one of its trading groups was the result of a sloppy but well-intentioned strategy to manage financial risk.
More than three years after the financial industry almost collapsed, the colossal misfire was cited as proof that big banks still do not understand the threats posed by their own speculation.
“It just shows they can’t manage risk — and if JPMorgan can’t, no one can,” said Simon Johnson, the former chief economist for the International Monetary Fund.
Read More @ Finance.Yahoo.com
JPMorgan Chase faced intense criticism Friday for claiming that a surprise $2 billion loss by one of its trading groups was the result of a sloppy but well-intentioned strategy to manage financial risk.
More than three years after the financial industry almost collapsed, the colossal misfire was cited as proof that big banks still do not understand the threats posed by their own speculation.
“It just shows they can’t manage risk — and if JPMorgan can’t, no one can,” said Simon Johnson, the former chief economist for the International Monetary Fund.
Read More @ Finance.Yahoo.com
from The Indian Express:
Apart from being colorful and loud, Indians are also world famous for their love for gold. So much so that they have a special festival ‘Akshaya Tritiya’ dedicated to gold buying only. People in India’s western states celebrated ‘Akshaya Tritiya’ with fervour and enthusiasm despite the steep rise in its price.
Watch the Video @ www.indianexpress.com
Apart from being colorful and loud, Indians are also world famous for their love for gold. So much so that they have a special festival ‘Akshaya Tritiya’ dedicated to gold buying only. People in India’s western states celebrated ‘Akshaya Tritiya’ with fervour and enthusiasm despite the steep rise in its price.
Watch the Video @ www.indianexpress.com
by Ethan A. Huff, Natural News:
A Freedom of Information Act(FOIA) request filed by Friends of the Earth (FoE), Physicians for Social Responsibility (PSR), and the Nuclear Information and Resource Center (NIRS) has unearthed a shocking series of new evidence proving a deliberate, global cover-up of the true severity of the Fukushima Daiichi nuclear disaster. And the unfortunate reality is that the mainstream media continues to blatantly ignore this colossal scandal.
Private emails, meeting transcripts and other key documents reveal that both the Obama White House and the United States Nuclear Regulatory Commission(NRC) were well aware of just how bad things really were with Fukushima from the early days of the disaster, but did nothing to warn the public about it. In fact, NRC and the White House purposely did not warn Americans about a massive radiation plume that struck the West Coast just days after the massive earthquake and tsunami hit Japan’s eastern coast.
Read More @ NaturalNews.com
from DayTradeShow:
from RTAmerica :
The Obama administration has the worst track record when it comes to prosecuting whistle blowers. Obama once claimed he’d work hard to have a transparent government, but many have faced retaliation for revealing controversial government information. Sibel Edmonds, who is a whistleblower, waited 340 days for FBI clearance of her memoir but finally released it on her own.
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A Freedom of Information Act(FOIA) request filed by Friends of the Earth (FoE), Physicians for Social Responsibility (PSR), and the Nuclear Information and Resource Center (NIRS) has unearthed a shocking series of new evidence proving a deliberate, global cover-up of the true severity of the Fukushima Daiichi nuclear disaster. And the unfortunate reality is that the mainstream media continues to blatantly ignore this colossal scandal.
Private emails, meeting transcripts and other key documents reveal that both the Obama White House and the United States Nuclear Regulatory Commission(NRC) were well aware of just how bad things really were with Fukushima from the early days of the disaster, but did nothing to warn the public about it. In fact, NRC and the White House purposely did not warn Americans about a massive radiation plume that struck the West Coast just days after the massive earthquake and tsunami hit Japan’s eastern coast.
Read More @ NaturalNews.com
from DayTradeShow:
from RTAmerica :
The Obama administration has the worst track record when it comes to prosecuting whistle blowers. Obama once claimed he’d work hard to have a transparent government, but many have faced retaliation for revealing controversial government information. Sibel Edmonds, who is a whistleblower, waited 340 days for FBI clearance of her memoir but finally released it on her own.
by Greg Canavan , DailyReckoning.com.au:
US investment bank JP Morgan has dusted $2 billion on synthetic derivative positions since March 31. According to the company, the Chief Investment Office’s ‘hedging’ strategy gone wrong will result in a net income loss of around $800 million for the corporate division.
Back in April, Bloomberg reported that:
US investment bank JP Morgan has dusted $2 billion on synthetic derivative positions since March 31. According to the company, the Chief Investment Office’s ‘hedging’ strategy gone wrong will result in a net income loss of around $800 million for the corporate division.
Back in April, Bloomberg reported that:
‘JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon has transformed the bank’s chief investment office in the past five years, increasing the size and risk of its speculative bets, according to five former executives with direct knowledge of the changes.
‘Achilles Macris, hired in 2006 as the CIO’s top executive in London, led an expansion into corporate and mortgage-debt investments with a mandate to generate profits for the New York-based bank, three of the former employees said. Dimon, 56, closely supervised the shift from the CIO’s previous focus on protecting JPMorgan from risks inherent in its banking business, such as interest-rate and currency movements, they said.
‘Some of Macris’s bets are now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets, the former executives said, based on knowledge gleaned from people inside the bank and dealers at other firms.’
Read More @ DailyReckoning.com.au
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