Here It Comes: We’re Being Set Up For Higher Interest Rates, A Major Recession And A Giant Stock Market Crash

Since Donald Trump’s victory on election night we have seen the worst bond crash in 15 years.  Global bond investors have seen trillions of dollars of wealth wiped out since November 8th, and analysts are warning of another tough week ahead.  The general consensus in the investing community is that a Trump administration will mean much higher inflation, and as a result investors are already starting to demand higher interest rates.  Unfortunately for all of us, history has shown that higher interest rates always cause an economic slowdown.  And this makes perfect sense, because economic activity naturally slows down when it becomes more expensive to borrow money.  The Obama administration had already set up the next president for a major recession anyway, but now this bond crash threatens to bring it on sooner rather than later. For those that are not familiar with the bond market, when yields go […] Read More

Why The Federal Reserve Should Be Audited

Submitted by John Crudele via NYPost.com, It is time for a comprehensive audit of Janet Yellen ’s Federal Reserve – and not just for the reasons presidential candidate Rand Paul and others have given. The Fed needs to be audited to see if its ruling body has broken the law by manipulating financial markets that are outside its jurisdiction. A thorough investigation of the Fed will show once and for all if its former chief Ben Bernanke and current Chairwoman Yellen should go to jail. I know, that’s a bold statement coming as it does on Sept. 1, 2015, with Wall Street still in half-bloom. But it won’t be so preposterous some day in the future if the stock market suffers a full-blown economy-busting collapse and Congress and everyone else are looking for scalps. The Fed should be audited as a brokerage firm would be — its financial holdings, […] Read More

“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming”

Ali and Frazier, Laurel and Hardy, Mayweather and Pacquiao, Liesman and Santelli, and now Schiff and Maloney. Peter and Mike join clash of the titan-like to discuss their investment strategies and expose the charts the government doesn’t want you to seeas “people like Bernanke are taken seriously still and the people that did predict [the crisis] are dismissed as lunatics half the time.” The wide-reaching conversation covers everything from gold and stocks to The Fed and The Dollar – Bernanke “took the coward’s way out because all he did was exacerbate the problems to postpone the day of reckoning.” The air is coming out of the bubble, they warn, “Bernanke and Greenspan have absolutely destroyed America. People don’t realize what is coming…” Full interview here: Full transcript below: Mike: I was in Puerto Rico a little while back and Peter Schiff invited me over to his house and we […] Read More

This Is Why They Are Militarizing: ‘The World Will Become Baltimore When People Realize They Cannot Acquire Basic Resources’

No matter the negative economic news or weak corporate earnings, stock markets continue to reach news highs and mainstream media pundits tow the party line. But how is this possible, given that tens of millions are out of the workforce, on food stamps and completely broke? The answer, according to Gregory Mannarino, is quite simple. The world’s central banks and governments have been left with no other option. They are throwing absolutely everything they can at the problem in an effort to keep the system propped up for as long as possible. But as Mannarino notes in his recent interview with Greg Hunter’s USA Watchdog, it’s nothing more than a setup that will leave most of the world’s population, especially the middle class in first-world countries, totally wiped out and impoverished. The end result will be nothing short of widespread civil unrest, violence and bloodshed as people begin to […] 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

Nothing Has Changed – And That’s The Problem

Submitted by Charles Hugh-Smith of OfTwoMinds blog, Playing monetary games has done nothing to eliminate moral hazard. If we step back and look at the past six years since the global financial meltdown of 2008, we see that in terms of financial and political power, nothing has changed–and that’s the problem. If nothing has changed structurally, then none of the problems that caused the meltdown have truly been addressed. All that’s changed is the vast expansion of monetary games has masked the dysfunctional reality that the same old vested interests that had a death-grip on wealth and power in 2008 have tightened their death-grip in the past six years. Here’s the problem facing every nation and trading bloc: 1. Vested interests institutionalized moral hazard, separating their gains from the consequences of taking risks. This is also known as privatized gains, socialized losses: vested interests reaped the gains from risky […] Read More

The Experiment that Will Blow Up the World

Submitted by Pater Tenebrarum via Acting-Man blog, The BoJ Goes Even Crazier It has been clear for a while now that the lunatics are running the asylum in Japan, so perhaps one shouldn’t be too surprised by what happened overnight. Bloomberg informs us that “Kuroda Jolts Markets With Assault on Deflation Mindset”. The policy hasn’t worked so far, in fact, it demonstrably hasn’t worked in Japan in a quarter of a century. Therefore, according to the Keynesian mindset, we need more of it. Mr. Kuroda therefore delivered a surprise spiking of the punchbowl that immediately impoverished Japan’s consumers further by causing a sharp decline in the yen: “Today’s decision to expand Japan’s monetary stimulus may be regarded as shock treatment in the central bank’s effort to affect confidence levels. Bank of Japan Governor Haruhiko Kuroda’s remedy to reflate the world’s third-largest economy through influencing expectations saw the yen sliding and […] Read More

Gold And What The High Priests Of Funny Money Don’t Want You To Know

Steve Forbes has had enough of the Federal Reserve and its “sinning” policies to undermine the dollar. In this brief interview with Birch Gold Group, the publisher and CEO of Forbes, Inc. exposes the damage that the central bank has created, “Bernanke was a disaster…has totally mucked up the credit markets.” Blasting Janet Yellen “who needs to go to re-education camp,” Forbes explains why he believes so strongly in the gold standard, and the one single scenario under which he would ever sell his gold.     Rachel Mills for Birch Gold Group (BGG): I am so glad to be talking with Steve Forbes, here at FreedomFest. My name is Rachel with Birch Gold Group. Can you talk a little bit about the Federal Reserve printing money these days. And the Federal Reserve recently announced that they have decided to stop printing money by October. Do you think that […] Read More