Dr. Marc Faber: Markets Are Manipulated By Clowns In Central Banks (VIDEO)

I had the good fortune to sit down with Dr. Marc Faber, Economist and Market Forecaster, publisher of GloomBoomDoom Report to discuss the current state of economic affairs from a global perspective. We touched on the failures and criminality that have become U.S. economic policy and how this is impacting the rest of the world. We also discussed how the Eastern world is rapidly taking over every aspect of commerce, finance and economics the world over. The economic situation we find ourselves is very delicate at this time. We have major economies, like the U.S. and Europe, that are either at a standstill or in a full blown recession/depression. It really depends on which set of numbers one uses as a guide. Most of the government statistics are either “massaged” or simply made up to fit the political agenda of the day. With this being the case, on a […] Read More

“Cornering The Earth” – How The Rothschilds “Controlled At Least One Third Of Global Wealth” Over 100 Years Ago

One week ago we presented the prophetic work of Alfred Owen Crozier who in 1912 penned “U.S. Money vs Corporation Currency” in which, together with 30 illustrations that captured Wall Street precisely as it would turn out some 103 later year, he explained why the the “Aldrich Plan” proposal, infamously crafted in secrecy by a small group of bankers and their bought politicians on Jekyll Island to establish a National Reserve Association, a money printing-predecessor to the Federal Reserve, would lead to untold pain, suffering ans war. The Aldrich Plan was defeated only to bring the Federal Reserve Act of 1913, and the most deadly 30-year period of warfare in human history. And while we urge everyone to read the Crozier’s book for its profound insight, and its painful reminder that even in the “New Normal” there is absolutely nothing new, as everything that has happened was foretold over […] Read More

The Definition Of An Unfree Market

Commentary by Guy Haselmann of Scotiabank Unfree A market economy is one based on supply and demand with little or no government control.   Dictionary site ‘Investopedia’ states that “a completely free market is an idealized form of a market economy where buyers and sellers are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.”  Toto, I don’t think we are in Kansas anymore. After the 2008 financial crisis, regulatory banking rules (i.e. macroprudential policies) conspired with zero (or negative) interest rates and asset purchases to exterminate the markets’ ability to freely calibrate clearing market prices based on supply and demand factors.   It is impossible for central banks to sustain controlling influence on market sentiment, investor behavior, correlations, and valuations, simply because effectiveness wanes over time.  As time passes, central bank stimulus stretches financial asset […] Read More

When Even Varoufakis Mocks The QE “Wizard”, The Game Is Almost Up

Last Wednesday, Mario Draghi and ECB chief economist Peter Praet had a clear message for critics of PSPP: we’ll keep printing money forever if we have to, but in the end, this is going to work. As skepticism grows regarding not only the soundness of the philosophy that underpins QE, but about whether the structure of the ECB’s asset purchase program is even viable, the central bank remains defiant to the end and indeed Praet doubled down on the rhetoric last week, noting that the ECB would “use all tools available” to ensure that “monetary dominance prevails.”  That kind of language may be good for morale in some circles, but a growing number of critics are suggesting that perhaps the world would be better off in terms of financial stability if the powers behind “monetary dominance” would let the market prevail for once so that some semblance of price […] Read More

CEO Of Rosneft Compares Oil Market Manipulation Which “Doesn’t Reflect Reality” To Gold Price Rigging

It was a little under two years ago when, when oil and gas prices were both surging, Obama decided to punish the evil speculators whose fault the rise of oil was when he announced he would “give the Commodity Futures Trading Commission authority to increase the amount of money that a trader must put up to back a trading position. The administration officials said such authority could help limit disruptions in energy markets.” Needless to say, Obama did not punish the world’s central banks for flooding the globe with excess liquidity, which by definition would end up in less than “productive” ventures such as barrels of oil. Over the weekend, it was the opposite, when instead of blaming speculators for soaring prices, none other than the CEO of Russia’s largest publicly-traded oil company, Rosneft, in not so many words, accused speculators of sending the price of oil plunging. Which […] Read More

The Truth About The Monetary Stimulus Illusion

Authored by Tadashi Nakamae of Nakamae International Economic Research, Perhaps economic policymakers, including Federal Reserve Chair Janet Yellen and the Bank for International Settlements, should take a closer look at Japan, China, and yes, the United States, when debating the limits of monetary stimulus and the dangerous nature of financial bubbles. The discussion is happening too late to be anything more than an intellectual exercise. Since its inception in 2008, easy monetary policy has created very few positive effects for the real economy—and has created considerable (and in some cases unforeseen) negative effects as well. The BIS warns of financial bubbles. Quantitative easing has already created asset price bubbles in the United States and elsewhere, and an investment bubble (this includes capital expenditure and real estate) in China and other emerging markets. Meanwhile, this policy has failed to have a positive impact on the real economy partly because central […] Read More

If Quantitative Easing Works, Why Has It Failed to Kick-Start Inflation?

Illustration by William Banzai QE Has Failed to Spark Inflation Quantitative easing (QE) was supposed to stimulate the economy and pull us out of deflation. But the third round of quantitative easing (“QE3″) in the U.S. failed to raise inflation expectations. And QE hasn’t worked in Japan, either. The Wall Street Journal noted in 2010: Nearly a decade after Japan’s central bank first experimented with the policy, the country remains mired in deflation, a general decline in wages and prices that has crippled its economy. The BOJ began doing quantitative easing in 2001. It had become clear that pushing interest rates down near zero for an extended period had failed to get the economy moving. After five years of gradually expanding its bond purchases, the bank dropped the effort in 2006. At first, it appeared the program had succeeded in stabilizing the economy and halting the slide in prices. […] Read More

The Rigging Triangle Exposed: The JPMorgan-British Petroleum-Bank Of England Cartel Full Frontal

The name Dick Usher is familiar to regular readers: he was the head of spot foreign exchange for JPMorgan, and the bank’s alleged chief FX market manipulator, who was promptly fired after it was revealed that JPM was the bank coordinating the biggest FX rigging scheme in history, as initially revealed in “Another JPMorganite Busted For “Bandits’ Club” Market Manipulation.” Subsequent revelations – which would have been impossible without the tremendous reporting of Bloomberg’s Liam Vaughan – showed that JPM was not alone: as recent legal actions confirmed, virtually every single bank was also a keen FX rigging participant. However, the undisputed ringleader was always America’s largest bank, which would make sense: having a virtually unlimited balance sheet, JPM could outlast practically any margin call, and make money while its far smaller peers were closed out of trades… and existence. But while the past year revealed that FX rigging […] Read More

The American People Are Utterly Clueless About What Is Going To Happen As We Enter 2015

Submitted by Michael Snyder via The Economic Collapse blog, The American people are feeling really good right about now.  For example, Gallup’s economic confidence index has hit the highest level that we have seen since the last recession.  In addition, nearly half of all Americans believe that 2015 will be a better year than 2014 was, and only about 10 percent believe that it will be a worse year.  And a lot of people are generally feeling quite good about the people that have been leading our nation.  According to Gallup, once again this year Hillary Clinton is the most admired woman in America and Barack Obama is the most admired man in America.  I don’t know what that says about our nation, but it can’t be good.  Unfortunately, when things seem to be going well common sense tends to go out the window.  A couple days ago, the […] Read More