The American Public: A Tough Soldier Or A Chicken Hawk Cowering In A Cubicle?

Submitted by Mike Krieger of Liberty Blitzkrieg blog, You gotta love the American public sometimes. For a mass of people so easily terrified by guys in caves funded and armed by our intelligence services and “allies” in the Persian Gulf, the same public talks with such armchair bravado when it comes to launching bombs from drones and sending other people’s children to die. Makes you wonder though, which one is it? Is the American public actually the tough guy soldier it pretends to be when cheering overseas military interventions, or is it really a scared, propagandized, coward hiding in one of our nation’s endless cubicle rows? Unfortunately, based on recent opinion polls demonstrating approval for military action against ISIS, it appears to be the latter. The former is merely a front put on by that terrified, economically insecure, silently suffering automaton. I really wish this weren’t the case. “ISIS as the new enemy” is a meme that has made me […] Read More

The Fed Has A Big Surprise Waiting For You

Submitted by Raul Ilargi Meijer via The Automatic Earth blog, Risdon Tillery Greenwich House day care, New York May 1944 The topic of potential interest rate hikes by central banks is no longer ever far from any serious mind interested in finance. Still, the consensus remains that it will take a while longer, it will take place in a very gradual fashion, and it will all be telegraphed through forward guidance to anyone who feels they have a need or a right to know. Sounds like complacency, doesn’t it? Now, it seems obvious that the Bank of Japan and the ECB are not about to hike rates tomorrow morning. In Europe, dozens of national politicians wouldn’t accept it, and in Japan, it would mean an early end to many things including Shinzo Abe. But the Bank of England and the Fed are another story. Though if the Yes side […] Read More

Re-Authorizing Ex-Im Bank (Or The Easiest Way To Make A 500x Return On Investment)

Submitted by Simon Black via Sovereign Man blog, What’s the easiest way to make a 500x return on investment? You might be inclined to say, “Buy silver” or “invest in a successful startup while it’s still a privately held company.” But if you’re a major Fortune 500 company, you generate a 500x return on investment by buying off politicians. A prime example of this is H.R. 4950: Protecting American Jobs and Exports Act, which aims to reauthorize the US Export-Import Bank for another seven years. First, some background. The little-known Export Import bank in the Land of the Free (Ex-Im Bank) was created during the Great Depression by Presidential executive order under FDR. Few people have ever even heard of this bank, let alone have a clue what it does. Officially, Ex-Im Bank is a banking corporation organized under the laws of the District of Columbia, and its capital […] Read More

2014: America’s Poor Have Never Been Deeper In Debt

Ever since the Lehman bankruptcy, one of the main reasons given by the perpetual apologists about why i) the so-called “recovery” has been the worst in US history and ii) the Fed has been “forced” to conduct 6 years of wealth transferring policies, boosting the stock market to all-time highs and creating a record wealth split in US society between the super-rich and everyone else (one that surpasses even that seen during the roaring 20s) is that the US consumer, scarred by the economic crash, has been rushing to deleverage and dump as much debt as possible. There are two problems with that story: First, as we first pointed out in 2012, US households are not deleveraging, they are defaulting, a huge difference which goes to motive and intent, and shows that instead of actively paying down debt households are instead loading up on as much debt as they […] Read More

The Scarlet Absence Of A Letter Of Credit

Submitted by Mark St.Cyr, If there’s one thing we all know about banks and bankers: they love to tell tales in public of how much they value their customers. However, what you’ll never hear them profess in private: is how much they trust them. Although one may think that’s unseemly, believe it or not there is another entity banks hold at an even lower tier. Other banks. One of the known facts people remember about the melt down in 2008 (as opposed to general public) was when the banks no longer trusted each other, and what they earlier claimed was “collateral” wasn’t actually worth what it was stated to be. Credit default spreads (CDS) were supposedly the insurance to negate valuation concerns. But when the banks felt CDS weren’t worth the paper they were written on, not only did they operate in a fashion reminiscent of cutting their noses […] Read More

2014: David Stockman On ‘The QE Follies’: Bernanke’s Swell Gift To The Big Four Banks

Submitted by David Stockman via Contra Corner blog, I recently pointed out that the Fed’s 5-year campaign to drive the 30-year mortgage rate from 6.5% to 3.3% had accomplished nothing except to touch off another of those pointless “refi” booms which enable homeowners to swap an existing mortgage for a new one carrying a significantly lower interest rate and monthly service cost. Such debt churning exercises have been sponsored repeatedly by the Fed since the S&L debacle of the late 1980s. I further noted that this time the Fed had really outdone itself: During some periods upwards of 80% of new originations were not money purchase mortgages to finance a new home, the declared purpose of interest rate repression, but just refi’s of existing debt. By resorting to this maneuver to leave more money in the pocket of borrowers each month, our monetary central planners undoubtedly hoped that America’s […] Read More

2014: David Stockman’s “Born Again Jobs Scam”: The Ugly Truth Behind “Jobs Friday”

Submitted by David Stockman via his Contra Corner blog, The mainstream recovery narrative has an astounding “recency bias”. According to all the CNBC talking heads, the 192,000 NFP jobs gain reported on Friday constituted another “strong” report card. Well, let’s see. Approximately 75 months ago (December 2007) at the cyclical peak before the so-called Great Recession, the BLS reported 138.4 million NFP jobs. When the hosanna chorus broke into song last Friday, the reported figure was 137.9 million NFP jobs. By the lights of old-fashioned subtraction, therefore, we are still 500k jobs short—notwithstanding $3.5 trillion of money printing in the interim. The truth is, all the ballyhooed “new jobs” celebrated on bubblevision month-after-month have actually been “born again” jobs. That is, jobs which were created during the Fed’s 2002-2007 bubble inflation; lost in the aftermath of the September 2008 meltdown; and then “recovered” during the renewed bubble inflation now underway. Stated differently, back when the NFP jobs count first clocked in at 137.9 million in the […] Read More

What is Time?

‘TIME’ – AS GIVEN TO ME FROM OUR FATHER IN HEAVEN. By N Molloy This was given to me after I was shown an event which was on another timeline operating on their Jan 4 2005. It ended as an Armageddon type scenario. But it didn’t show in our timeframe for that date. However something of that nature may still happen to bring the two realities into alignment. I’m still working on the relationship of one timeline to another. I’ve seen supposedly extinct timelines re-animate when hope was revived for their remanifestation. It’s obviously complicated and all I can do is write what happened and learn from hindsight or more information as it happens. Time proceeds from a central spot within the universe. Forward time emanates from the mind and thoughts of God, as He thinks and creates and it pushes all events forward as He creates them – […] Read More

1978: How to Build a Universe That Doesn’t Fall Apart Two Days Later

by Philip K. Dick, 1978 First, before I begin to bore you with the usual sort of things science fiction writers say in speeches, let me bring you official greetings from Disneyland. I consider myself a spokesperson for Disneyland because I live just a few miles from it—and, as if that were not enough, I once had the honor of being interviewed there by Paris TV. For several weeks after the interview, I was really ill and confined to bed. I think it was the whirling teacups that did it. Elizabeth Antebi, who was the producer of the film, wanted to have me whirling around in one of the giant teacups while discussing the rise of fascism with Norman Spinrad… an old friend of mine who writes excellent science fiction. We also discussed Watergate, but we did that on the deck of Captain Hook‘s pirate ship. Little children wearing […] Read More