The Fed, the White House and Congress Are Setting Up the Next Financial Bubble

Posted on October 16th, 2015

Financial help or Bombardmant from www.caglecartoons.com # 142648By Stephen Moore

My 13-year-old son told me at the dinner table the other day that Franklin Roosevelt was one of America’s “greatest presidents” because “he ended the Great Depression.” He’s usually a good student, so I checked where he got this tripe and sure enough the fairy tale was right there in his American history book.

Sure enough his text book tells kids that the New Deal ended the Great Depression and even saved capitalism. Of course the New Deal exacerbated the pain and financial devastation of a stock market crash, and unemployment lingered in double digits for a decade after Roosevelt was elected until the start of World War II.

We get this kind of rampant revisionism because the left writes the history books — which they are doing right now.

Here’s the latest story line: bailouts, trillions of dollars of government spending and debt, easy money, and re-regulation of Wall Street ended the 2008 Great Recession. The myth took on new life last week when Ben Bernanke took a bow in The Wall Street Journal for in his mind saving the economy with his $3 trillion of quantitative easing and zero interest rate policy. No, actually this is what created the crisis. Don’t be surprised if Mr. Bernanke receives a Nobel Peace Prize. Read More..

The Bankruptcy Of The Planet Accelerates – 24 Nations Are Currently Facing A Debt Crisis.

Posted on October 7th, 2015

Dominoes fallingBy Michael Snyder

There has been so much attention on Greece in recent months, but the truth is that Greece represents only a very tiny fraction of an unprecedented global debt bomb which threatens to explode at any moment.  As you are about to see, there are 24 nations that are currently facing a full-blown debt crisis, and there are 14 more that are rapidly heading toward one. 

Right now, the debt to GDP ratio for the entire planet is up to an all-time record high of 286 percent, and globally there is approximately 200 TRILLION dollars of debt on the books.  That breaks down to about $28,000 of debt for every man, woman and child on the entire planet.  And since close to half of the population of the world lives on less than 10 dollars a day, there is no way that all of this debt can ever be repaid.  The only “solution” under our current system is to kick the can down the road for as long as we can until this colossal debt pyramid finally collapses in upon itself.

As we are seeing in Greece, you can eventually accumulate so much debt that there is literally no way out.  The other European nations are attempting to find a way to give Greece a third bailout, but that is like paying one credit card with another credit card because virtually everyone in Europe is absolutely drowning in debt.

Even if some “permanent solution” could be crafted for Greece, that would only solve a very small fraction of the overall problem that we are facing.  The nations of the world have never been in this much debt before, and it gets worse with each passing day. Read More..

Bernanke: Wall Street Execs Should Have Gone to Jail for Crisis

Posted on October 6th, 2015

Mission Impossible by Luojie, China Daily, ChinaEDITOR’S COMMENT: Now, he tells us! Actually, while in office, Bernanke didn’t discourage anyone nor make any effort to hold government employees, bankers & brokers responsible for all the risky lending and government-induced housing financing, both of which helped create the so-called housing bubble. He was clearly not a bystander in this debacle and crisis. And, finally, let me remind you that the Federal reserve only watches out for its various large-bank owners.

By Newsmax

Former Federal Reserve Chairman Ben Bernanke says some Wall Street executives should have gone to jail for their roles in the financial crisis that gripped the country in 2008 and triggered the Great Recession.

Billions of dollars in fines have been levied against major banks and brokerage firms in the wake of the economic meltdown that was in large part triggered by reckless lending and shady securities dealings that blew up a housing bubble.

But in an interview with USA Today published Sunday, Bernanke said he thinks that in addition to the corporations, individuals should have been held more accountable.

“It would have been my preference to have more investigations of individual actions because obviously everything that went wrong or was illegal was done by some individual, not by an abstract firm,” Bernanke said.

Asked if someone should have gone to jail, the former Fed chairman replied, “Yeah, I think so.” He did not, however, name any individual he thought should have been prosecuted. Read More..

Congress Fiddles While the Economy Burns

Posted on September 16th, 2015

Unemployment from www.caglecartoons.com # 168487By Ron Paul

Reports that the official unemployment rate has fallen to 5.1 percent may appear to vindicate the policies of easy money, corporate bailouts, and increased government spending. However, even the mainstream media has acknowledged that the official numbers understate the true unemployment rate. This is because the government’s unemployment figures do not include the 94 million Americans who have given up looking for work or who have settled for part-time employment. John Williams of Shadow Government Statistics estimates the real unemployment rate is between 23 and 24 percent.

Disappointingly, but not surprisingly, few in Washington, D.C. acknowledge that America’s economic future is endangered by excessive spending, borrowing, taxing, and inflating. Instead, Congress continues to waste taxpayer money on futile attempts to run the economy, run our lives, and run the world.

For example, Congress spent the majority of last week trying to void the Iranian nuclear agreement. This effort was spearheaded by those who think the U.S. should waste trillions of dollars on another no-win Middle East war. Congressional war hawks ignore how America’s hyper-interventionist foreign policy feeds the growing rebellion against the dollar’s world reserve currency status. Of course, the main reason many are seeking an alternative to the dollar is their concern that, unless Congress stops creating — and the Federal Reserve stops monetizing — massive deficits, the U.S. will experience a Greek-like economic crisis.

Despite the clear need to reduce federal spending, many Republicans are trying to cut a deal with the Democrats to increase spending. These alleged conservatives are willing to lift the “sequestration” limits on welfare spending if President Obama and congressional democrats support lifting the “sequestration” limits on warfare spending. Read More..

BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days

Posted on August 25th, 2015

New York City 1920’s, financial-collapseBy Michael Snyder

On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday.  In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow.  Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent).

On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.

Our world has not seen a day quite like Monday in a very, very long time. Read More..

How Obama’s Poor Judgment Led to the Chinese Hack of OPM

Posted on July 29th, 2015

Hackers OPM security Chinese from www.caglecartoons.com # 166260By Paul Conway

The maxim that “personnel is policy” transcends partisan affiliations and political labels.

Every president, including President Barack Obama, has the authority to staff federal agencies with loyal political appointees.

Given the deep pool of experienced talent from which presidents can draw, philosophical alignment and management competence are not mutually exclusive.

Presidents place America at risk if they choose to ignore, or worse, fail to even weigh the competency of a potential appointee to both uphold and successfully manage the core responsibilities of the office or agency for which that appointee is considered.   

The sophisticated cyber attacks on the Office of Personnel Management (OPM), attributed to China by senior intelligence officials, are underscored by this fact.

The political appointment of Katherine Archuleta to OPM director was a devastating example of the poor personnel judgment exercised by President Obama. Read More..

The Big Picture

Posted on July 24th, 2015

Financial Crisis Signpost Showing Recession Speculation Leverage And BubbleBy Peter Schiff, President and CEO Euro Pacific Capital

The past four years or so have been extremely frustrating for investors like me who have structured their portfolios around the belief that the current experiments in central bank stimulus, the anti-business drift in Washington, and America’s  mediocre economy and unresolved debt issues would push down the value of the dollar, push up commodity prices, and favor assets in economies with relatively low debt levels and higher GDP growth. But since the beginning of 2011, the Dow Jones Industrial Average has rallied 67% while the rest of the world has been largely stuck in the mud. This dominance is reminiscent of the four years from the end of 1996 to the end of 2000, when the Dow rallied 54% while overseas markets languished. Although past performance is no guarantee of future results, a casual look back at how the U.S. out-performance trend played out the last time it had occurred should give investors much to think about.

The late 1990s was the original “Goldilocks” era of U.S. economic history, one in which all the inputs seemed to offer investors the best of all possible worlds. The Clinton Administration and the first Republican-controlled Congress in a generation had implemented policies that lowered taxes, eased business conditions, and encouraged business investment. But, more importantly, the Federal Reserve was led by Alan Greenspan, whose efforts to orchestrate smooth sailing on Wall Street led many to dub Mr. Greenspan “The Maestro.”

Towards the end of the 1990’s, Greenspan worked hard to insulate the markets from some of the more negative developments in global finance. These included the Asian Debt Crisis of 1997 and the Russian debt default of 1998. But the most telling policy move of the Greenspan Fed in the late 1990’s was its response to the rapid demise of hedge fund Long term Capital Management (LTCM), whose strategy of heavily leveraged arbitrage backfired spectacularly in 1998. Greenspan engineered a $3.6 billion bailout and forced sale of LTCM to a consortium of Wall Street firms. The intervention was an enormous relief to LTCM shareholders but, more importantly, it provided a precedent that the Fed had Wall Street’s back. Read More..

The ‘Mini Greece’ of the United States: Puerto Rico

Posted on July 17th, 2015

Flag of Puerto RicoBy Mike Gonzalez

The inability of Puerto Rican governments to live within their own means is, of course, the reason why the island finds itself with a $70 billion debt it can’t pay.

But as we apportion blame, let’s not forget the federal government’s role in creating our own “mini-Greece.”

From Franklin D. Roosevelt on down, we have made Puerto Rico a laboratory for liberal policies. It wasn’t just benign neglect on the part of Washington that has produced a crippling culture of dependence. Read More..

Stop Blaming Snowden, Start Questioning Obama

Posted on July 14th, 2015

Question Mark By Philippe Gastonne

Russia and China have cracked the top-secret cache of files stolen by the fugitive US whistleblower Edward Snowden, forcing MI6 to pull agents out of live operations in hostile countries, according to senior officials in Downing Street, the Home Office and the security services.

Western intelligence agencies say they have been forced into the rescue operations after Moscow gained access to more than 1m classified files held by the former American security contractor, who fled to seek protection from Vladimir Putin, the Russian president, after mounting one of the largest leaks in US history.

Senior government sources confirmed that China had also cracked the encrypted documents, which contain details of secret intelligence techniques and information that could allow British and American spies to be identified. – The Sunday Times (UK) Read More..

Obama Tells Another ‘Whopper’ — He Did Not Create 12.8 Million Jobs

Posted on July 9th, 2015

Obama Speaking of Jobs CreatedBy David Stockman

America is better off when President Barack Obama is out on the stump bloviating and boasting rather than in Washington actively doing harm.

But the whoppers he just told the students at the University of Wisconsin are beyond the pale.

Said our spinmeister-in-chief:

And the unemployment rate is now down to 5.3 percent. (Applause.) Keep in mind, when I came into office it was hovering around 10 percent. All told, we’ve now seen 64 straight months of private sector job growth, which is a new record — (applause) — new record — 12.8 million new jobs all told.

We are now 29 quarters from the pre-crisis peak and total non-farm labor hours utilized by the U.S. economy are no higher than they were in Q4 2007.

In other words, if you use a common unit of measure — labor hours rather than job slots which treat coal-miners and part-time pizza delivery boys alike — there have been no new units of employment at all. Read More..

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