The Fed And LIBOR - The Biggest Manipulator Of Them All
The
Fed does everything it can to keep LIBOR low. The Fed cannot affect
LIBOR directly, but in general LIBOR trades in line with Fed Funds. You
can see that historically as Fed Funds was changed, LIBOR responded
appropriately. That all started to break down in 2007
and re-ignited in the late summer of 2008 and peaked after Lehman and
AIG. The Fed was blatantly clear that it wanted borrowing costs to go
down. They had the obvious tool of reducing Fed Funds to virtually
zero, but when LIBOR didn't follow, the Fed took further action. The Fed has done a lot and trying to control LIBOR as a key borrowing rate is one of the things they have worked on, both directly and indirectly.
The
Fed does everything it can to keep LIBOR low. The Fed cannot affect
LIBOR directly, but in general LIBOR trades in line with Fed Funds. You
can see that historically as Fed Funds was changed, LIBOR responded
appropriately. That all started to break down in 2007
and re-ignited in the late summer of 2008 and peaked after Lehman and
AIG. The Fed was blatantly clear that it wanted borrowing costs to go
down. They had the obvious tool of reducing Fed Funds to virtually
zero, but when LIBOR didn't follow, the Fed took further action. The Fed has done a lot and trying to control LIBOR as a key borrowing rate is one of the things they have worked on, both directly and indirectly.
by Jerry Bowyer, Forbes:
Let’s start with a shocking, but true premise: If you are a patriotic
American, you believe that there are circumstances under which it is
right to take up arms against your own government. That statement feels
wrong to me. It reeks of militia and McVeigh and toothless loons holed
up with guns in cabins in order to avoid paying income taxes.
But the fact remains that the rationale for the existence of the nation known as the United States of America, which first appeared in print 236 years ago today, is entirely dependent on the premise that there are indeed times “…when in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another…” and that such times may require the first group of people to “…mutually pledge to each other [their] Lives, [their] Fortunes and [their] sacred Honor.” And that having dissolved those political bands with another people, the newly liberated people (“…and that as Free and Independent States, they have full Power to levy War…”) may, among other things, protect themselves from a tyrannical power which engages in “…a long train of abuses and usurpations, pursuing invariably the same Object [which] evinces a design to reduce them under absolute Despotism…”
Let’s start with a shocking, but true premise: If you are a patriotic
American, you believe that there are circumstances under which it is
right to take up arms against your own government. That statement feels
wrong to me. It reeks of militia and McVeigh and toothless loons holed
up with guns in cabins in order to avoid paying income taxes.But the fact remains that the rationale for the existence of the nation known as the United States of America, which first appeared in print 236 years ago today, is entirely dependent on the premise that there are indeed times “…when in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another…” and that such times may require the first group of people to “…mutually pledge to each other [their] Lives, [their] Fortunes and [their] sacred Honor.” And that having dissolved those political bands with another people, the newly liberated people (“…and that as Free and Independent States, they have full Power to levy War…”) may, among other things, protect themselves from a tyrannical power which engages in “…a long train of abuses and usurpations, pursuing invariably the same Object [which] evinces a design to reduce them under absolute Despotism…”
When Americans Understood the Declaration of Independence
by Thomas J. DiLorenzo, Lew Rockwell.com:
The Fourth of July was not always a national celebration of the
militarization of American society and of the federal government’s
never-ending quest for world domination (disguised as “defending our
interests abroad”). Americans did not always attend church services on
the Sunday before the Fourth of July to “honor” their “military heroes”
and pray that they may kill many more human beings in other countries
that have done them no harm. Americans once actually read and understood
the Declaration of Independence for what it was: a declaration of
secession from the British empire and a roadmap for opposing a highly
centralized, militaristic empire of the sort the U.S. government has
become.The Declaration of Independence was the ultimate secessionist or states’ rights document. “Governments are instituted among men,” Thomas Jefferson wrote, for the sole purpose of securing God-given, “unalienable” rights to life, liberty, and the pursuit of happiness. Moreover, governments derive “their just powers from the consent of the governed” and nowhere else. And “whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government . . .”
The way in which “the People” were to express their consent (or lack thereof) was through state and local political organizations. Hence, in the final paragraph of the Declaration of Independence Jefferson wrote that: “We . . . the Representatives of the united States of America . . . are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do.”
Read More @ LewRockwell.com
by Bill Frezza, Forbes:
Why do we still celebrate Independence Day? Is it a lingering habit, a
mindless bit of nostalgia, a time to indulge in fireworks and barbecues,
devoid of any deeper meaning? Can anyone honestly argue that our nation
still honors the values, or practices the principles, for which our
Founders fought?Today, most Americans have been trained to be embarrassed by the “extremist” individualist ethos that made the protection of liberty the primary purpose of government. They have been taught to apologize for the shortcomings of the “rich white men” who led the revolution. A majority of Americans now subscribe to an expansive view of government as both great provider and beneficent leveler. Its primary purpose is to redress unequal or unhappy outcomes, regardless of their source, through wealth redistribution on a scale so vast that it mocks the concept “private property.”
As for the causes of revolution, we’ve lost sight of them, too. King George III was a champion of laissez-faire compared to the modern cradle-to-grave entitlement state. The swollen capital city named after the man who won our freedom now claims the prize for erecting “a Multitude of new offices” bent on sending out “Swarms of officers to harass our people and eat out their substance.” If there is a field of endeavor that the federal government does not yet regulate, subsidize, or penalize, just wait. A new law is only a “crisis” away.
Read More @ Forbes.com
With the ‘Independence Day’ holiday in the States, Wall Street is
quiet and families across the nation are gathering to “celebrate”
something. Though we’d bet if you were to ask ‘em what exactly it is
that they are celebrating, most could not rightly answer.
Meanwhile, around the world it’s business as usual as governments
circle the wagons in preparation for the economic storm which likely
cannot be stopped. In this clip from earlier today, NWO puppet and Prime Minister David Cameron fields questions from MPs in the House of Commons about the LIBOR banking corruption scandal, the onset of food price inflation and the crisis in the European Union.
from UKParliament:
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Dynamic Thinkes Are Few and Far Between
Eric De Groot at Eric De Groot - 5 hours ago
I'm a huge proponent of following the message of the market, but it usually
takes a dynamic thinker to read it. In world where inane chatter has
become the baseline of comparison, Jim, Dan, et. al. are some of the best
dynamic thinkers I know. Yesterday Jim suggested that the The Rig Is Up.
He might as well have written that confidence just took square kick...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]
Happy "What is Left of our Independence" Day
Trader Dan at Trader Dan's Market Views - 5 hours ago
To all my American readers - after this week's convoluted reasoning from
the Chief Justice of the Supreme Court, I wonder what really is going to be
left of our Independence.
Just be careful not to breath too deep of a sigh - the EPA is liable to
come a knocking on your door fining you for emitting excessive amounts of
that nasty pollutant, otherwise referred to as Carbon Dioxide.
If you happen to have the misfortune of residing in New York City, no sense
in trying to drown your sorrows in a nice big giant cup of Mountain Dew.
Nanny Bloomberg has seen to that.
I keep waiting for t... more »
Bonds Will Be A Terrible Place To Be
Admin at Jim Rogers Blog - 6 hours ago
If debt continues to rise and money printing comes back stronger, bonds
will be a terrible place to be. - *in ETF Trends*
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
from Silver Vigilante:
In the wake of European oil embargo on Iran, Tehran has renewed
prospects of closing the strategic Strait of Hormuz, the vital oil
shipping route. The move is considered a bluff more so than a serious
threat at the current juncture. This has sent gold and silver up on the
last day of trading before the July 4th holiday.
“If we completely go under the sanctions, we will not let a single oil drop pass through the Hormuz Strait,” Arsala Fathipour, head of the Iranian parliament’s economic commission, told the semiofficial Iranian Students News Agency.
The Strait of Hormuz is an oil-way for a sixth of the world’s oil production, including crude extracted from Saudi Arabia. The U.S. Navy would view any impediment of the passageway as an act of war. Mainstream pundits and other analysts dismiss Iran’s threats to close down the strait as political oratory. Nevertheless, the US has strategically moved “significant military reinforcements” into the Persian Gulf.
Read More @ Silver Vigilante
In the wake of European oil embargo on Iran, Tehran has renewed
prospects of closing the strategic Strait of Hormuz, the vital oil
shipping route. The move is considered a bluff more so than a serious
threat at the current juncture. This has sent gold and silver up on the
last day of trading before the July 4th holiday.“If we completely go under the sanctions, we will not let a single oil drop pass through the Hormuz Strait,” Arsala Fathipour, head of the Iranian parliament’s economic commission, told the semiofficial Iranian Students News Agency.
The Strait of Hormuz is an oil-way for a sixth of the world’s oil production, including crude extracted from Saudi Arabia. The U.S. Navy would view any impediment of the passageway as an act of war. Mainstream pundits and other analysts dismiss Iran’s threats to close down the strait as political oratory. Nevertheless, the US has strategically moved “significant military reinforcements” into the Persian Gulf.
Read More @ Silver Vigilante
Zombie Apocalypse: ‘I’m a eat you’: Crazed naked man high on bath salts threatens to eat police officers as they try to arrest him on golf course
[Ed. Note: As we've previously written: God help us if the PTB can figure out a way to get entire city populations to ingest this stuff through the water or air. Add in a total economic collapse and suddenly you won't be watching 'The Walking Dead' on AMC, you'll be living it. Think we're kidding? Check out this bit of Zombie-related predictive programming from the CDC's own website: Zombie Pandemic. And here's yet another Zombie-style attack, this time in China]
by Vanessa Allen, dailymail.co.uk:
A ‘zombie cannibal’ was tasered by police after he charged at them wielding a golf club.Karl Laventure, 21, was believed to be high on bath salts when he tried to attack the officers in Lilburn, Georgia.
And after they had managed to subdue him he began threatening to eat them.
Laventure appeared out of some woods and was seen running naked around a golf range near Atlanta, swinging a club around his head and screaming.
Police said that it took several officers to subdue the man who had ‘super-human strength’.
‘He came running at us out of the woodline,’ officer Ross Hancock told local station WSBTV.
At first, they tried using pepper spray to stop him, but that left him undeterred.
‘He didn’t even wipe his eyes, he just kept them open,’ Mr Hancock said of the pepper spray. They then turned to their Tasers and though that momentarily shocked Laventure to the ground, it did not stop him.
Read More @ dailymail.co.uk
by Steve Watson, Prison Planet:
The global Anti-Counterfeiting Trade Agreement (ACTA),
arguably the most draconian internet control legislation penned thus
far, has been overwhelmingly rejected by European lawmakers following
months of protests and activism undertaken by thousands across the
continent.
In January of this year, twenty-two of the 27 EU states joined other countries, including the United States and Japan, in signing on to ACTA. However, it has yet to be ratified anywhere and strong protests in Europe have caused other countries, such as Australia to delay consideration of the treaty.
In the past few months, the legislation has been dealt blow after blow with no less than five powerful EU committees, as well as member states, officially rejecting the treaty.
This morning, the European Parliament voted 478 against, 39 in favour, with 165 abstentions, effectively killing the legislation in its current form and ensuring for the first time that an international trade agreement cannot be ratified into law in the EU.
Read More @ PrisonPlanet.com
With Spanish bond spreads over 30bps wider from their open
this morning, EURUSD has just broken its 200-hour moving average
trading back close to 1.2500 for the first time since the summit. While
this is an 75% retracement of the EUphoria, broad
equity markets are only modestly off their highs (we assume on rate cut
hopes - which is likely helping driven EUR down a little) - and yet
corporate and financial credit spreads are at two-day lows. Hope fades
even in equity markets where once we dig into the individual indices
that most are down modestly (though Spain and Italy are down around 1%). We also note that Bunds have outperformed Treasuries by 20bps
from the initial risk-transfer spike on Friday morning - though TSYs
are closed today as Bund yields dropped 10bps from open to close today.
On a side-note, Spanish 5Y CDS briefly traded wider than Ireland 5Y CDS
today for the first time in two years.
The global Anti-Counterfeiting Trade Agreement (ACTA),
arguably the most draconian internet control legislation penned thus
far, has been overwhelmingly rejected by European lawmakers following
months of protests and activism undertaken by thousands across the
continent.In January of this year, twenty-two of the 27 EU states joined other countries, including the United States and Japan, in signing on to ACTA. However, it has yet to be ratified anywhere and strong protests in Europe have caused other countries, such as Australia to delay consideration of the treaty.
In the past few months, the legislation has been dealt blow after blow with no less than five powerful EU committees, as well as member states, officially rejecting the treaty.
This morning, the European Parliament voted 478 against, 39 in favour, with 165 abstentions, effectively killing the legislation in its current form and ensuring for the first time that an international trade agreement cannot be ratified into law in the EU.
Read More @ PrisonPlanet.com
EURUSD Retraces 75% of EUphoria As Credit Underperforms Stocks
With Spanish bond spreads over 30bps wider from their open
this morning, EURUSD has just broken its 200-hour moving average
trading back close to 1.2500 for the first time since the summit. While
this is an 75% retracement of the EUphoria, broad
equity markets are only modestly off their highs (we assume on rate cut
hopes - which is likely helping driven EUR down a little) - and yet
corporate and financial credit spreads are at two-day lows. Hope fades
even in equity markets where once we dig into the individual indices
that most are down modestly (though Spain and Italy are down around 1%). We also note that Bunds have outperformed Treasuries by 20bps
from the initial risk-transfer spike on Friday morning - though TSYs
are closed today as Bund yields dropped 10bps from open to close today.
On a side-note, Spanish 5Y CDS briefly traded wider than Ireland 5Y CDS
today for the first time in two years.
from Zero Hedge:
The
growth in Emerging Market ‘External Liquidity’ recently was only ever
slower in the quarters either side of the crash in 2008. This
is a very worrying sign. EM nations are highly dependent on ‘external’
capital inflows (to smooth current account deficits) and have
empirically been exposed to the ‘sudden stop’ nature of these inflows.
It appears that Europe’s banking crisis and deleveraging is indeed
having a critical impact on EM nations – which may oddly mean
domestic policy adjustments will be necessary (raising rates to
encourage capital inflows) that will further exacerbate the problems as
global growth slows. This brings to mind our recent comments
on the shadow banking system and the drop in deposits among traditional
risk-hungry EM funding banks – as we note that the more deposit-free
the banking system, the slower the funds will flow. The newer the debt- and asset-inflation-based ‘capitalism’, the faster it is impacted at the margin – and it appears many EM nations are being affected rather rapidly.
Read More @ Zero Hedge.com
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The
growth in Emerging Market ‘External Liquidity’ recently was only ever
slower in the quarters either side of the crash in 2008. This
is a very worrying sign. EM nations are highly dependent on ‘external’
capital inflows (to smooth current account deficits) and have
empirically been exposed to the ‘sudden stop’ nature of these inflows.
It appears that Europe’s banking crisis and deleveraging is indeed
having a critical impact on EM nations – which may oddly mean
domestic policy adjustments will be necessary (raising rates to
encourage capital inflows) that will further exacerbate the problems as
global growth slows. This brings to mind our recent comments
on the shadow banking system and the drop in deposits among traditional
risk-hungry EM funding banks – as we note that the more deposit-free
the banking system, the slower the funds will flow. The newer the debt- and asset-inflation-based ‘capitalism’, the faster it is impacted at the margin – and it appears many EM nations are being affected rather rapidly.Read More @ Zero Hedge.com
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