Economy

Prelude to a Crash

The Fed’s easy money policies have pushed margin debt on the New York Stock Exchange (NYSE) to record levels laying the groundwork for a severe correction or another violent market crash.
Buying equities on margin, that is, with loads of borrowed cash, is a sign of excessive risk taking the likes of which invariably takes place whenever the Central Bank creates subsidies for speculation by keeping interest rates pegged below the rate of inflation or by pumping trillions of dollars into the bloated financial system through misguided liquidity programs like QE.

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Enough Is Enough: Fraud-ridden Banks Are Not L.A.’s Only Option

Mega-banks might be too big to fail. According to U.S. Attorney General Eric Holder, they might even be too big to prosecute. But they are not too big to abandon as depositories for government funds.
If North Dakota can bypass Wall Street with its own bank and declare its financial independence, so can the City of Los Angeles. And so can the County. And so can the State of California.

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The International Banking Cartel

A look at the International Banking Cartel led by the Bank for International Settlement (in Basel, Switzerland) known as the bank of central banks (58 central banks) and The US Federal reserve System. Also a look at banking tycoons: from the Rothschild family in Europe to JP Morgan and others in the US. How banks not only control governments but also appoint politicians through huge campaign donations. Governments at the service of the major banks, the best example: the Obama administration and the history’s biggest bail out of the same institutions that caused the Great Recession.

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Why Is The Fed Tapering?

Manipulation of the gold price is a foregone conclusion. The question is: why is the Fed tapering? The official reason is that the recovery is now strong enough not to need the stimulus. There are two problems with the official explanation. One is that the purpose of QE has always been to support the prices of the debt-related derivatives on the balance sheets of the banks too big to fail. The other is that the Fed has enough economists and statisticians to know that the recovery is a statistical artifact of deflating GDP with an understated measure of inflation. No other indicator–employment, labor force participation, real median family income, real retail sales, or new construction–indicates economic recovery.

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Hate the Super Rich?

Hate the super rich because their greed is ungodly. If true democracy is to be restored, then Americans need to be much more than dissatisfied. They need to get more emotional. They need to hate. Then they must convert that hatred into political demands and actions.

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How Economists and Policymakers Murdered Our Economy

If and when uncertainty spreads to the dollar, the real crisis will arrive, likely followed by high inflation, exchange controls, pension confiscations, and resurrected illegality of owning gold and silver. Capitalist greed aided and abetted by economists and policymakers will have destroyed America.

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Are We On The Verge Of A Massive Emerging Markets Currency Collapse?

A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets. But now that the Fed has decided to begin “the taper”, investors see it as a sign to pull the “hot money” out of emerging markets as rapidly as possible. This is causing currencies to collapse and interest rates to soar all over the planet. Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far.

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Global stock sell-off highlights financial parasitism

The banks and corporations have not used the handouts from governments and central banks for productive investment—to rebuild crumbling infrastructures or expand the productive forces. The Financial Times reported Friday that US capital spending is expected to grow this year at its slowest pace in four years. And it is estimated that American non-financial companies are currently sitting on a cash hoard of $1.5 trillion.

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N is for Neo-Serfdom, O for Offshore Banking

Instead of an ownership society, we are evolving into a society of mortgage debtors, corporate debtors and government debtors. And as far as the supposed savings (“financial ownership”) are concerned, John C. Bogle has observed that instead of the economy being dominated by individual investors , it is being financialized into “an intermediation society dominated by professional money managers and corporations.” This trend “has not been accompanied by the development of an ethical, regulatory and legal environment … The ownership society is over. The agency (or intermediation) society is not working as it should.”

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UK’s long-term youth unemployment hits record high

According to the statistics from the Labour Force Survey (LFS), the number of under-25s without a job for a year or more increased from 266,000 in 2012 to 282,000 in September 2013, The Daily Mirror reported on Saturday.

Last year’s figure is just under the 285,000 recorded in 1993, when John Major was British Prime Minister.

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Could We Afford a Universal Basic Income?

That the funds the government already spends on antipoverty programs, if cashed out, would be more enough to raise everyone above the official poverty line. For example, in recent Congressional testimony, Robert Rector of the Heritage Foundation presents data that suggest that the cash equivalent of total means-tested government spending is enough to raise the incomes of all low-income households to double the poverty level.

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