B-Dud Explains The Fed’s Economic Coup—–Or Why Every Asset Price Which Influences Monetary Policy Transmission Is Now Manipulated

Keynesian economists are annoying enough when they are pitching inflated financial assets on Wall Street or the supposed curative powers of fiscal deficits on Capitol Hill. But they become positively dangerous when they populate the Eccles Building and usurp control of the nation’s capital and money markets lock, stock and barrel in the name of “monetary accommodation”.

Needless to say, the Fed is presently over-run with Keynesian money printers led by Janet Yellen and Stanley Fischer. Both of these famous PhDs are actually proponents of a primitive macroeconomic doctrine that should be called “bathtub economics”.  In their wisdom, these doctors of economics have simply postulated that the nation’s economic output “should” be at aggregate levels which far exceed current production, and that the resulting shortfall from “potential” output, incomes and jobs is due to insufficient “aggregate demand”. Continue reading

Elephant, Meet China

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Lewis Wickes Hine Newsies Gus Hodges, 11, and brother Julius, 5, Norfolk VA Jun 1911

Oh man, I wanted to keep this short, what I wanted to say looked so straight-forward. But then, in this convoluted world of pretense, is anything ever anymore? Please allow me to start off with something I wrote yesterday in Oil, Gold And Now Stocks? concerning the nonsense spouted by New York Fed President Bill Dudley, who claimed that money not spent by Americans on gas would actually boost the economy if -and that’s still an if – they spent it on anything else. I said they’d still have the same amount of money to spend, so how can it be a boost? Sure, you can say that a lot of the oil is imported, which would transfer profits abroad, but then so are most of the trinkets people can may buy at WalMart with their gas savings. .

Today Zero Hedge’s Tyler Durden turns that theme into not one, but two different posts. First this morning, ‘Central Bankers’ Say The Darndest Things – Bill Dudley Edition, and then just now the second take on the topic, with a very good explanation of what it is Dudley, perhaps the second-most important man in the American financial world – if he’s not numero uno-, gets so wrong, intentionally or not. Continue reading

Don’t Bet on $70 Oil Lasting Long

Submitted by Bill Bonner – Chairman, Bonner & Partners

Again, we quote our old friend.

Mr. Market has been puttin’ the hurtin’ on gold bulls.

Yesterday, he went after the gold shorts. Gold rose $42.60 – or 3.6%. That’s proportionally equal to a move of 640 points on the Dow.

But today our sympathies go to poor Vladimir Putin and Nicolás Maduro. In Russia, the ruble is falling and growth is grinding to a halt. In Venezuela, the whole economy is falling apart. The proximate cause of this hurtin’ is a fall in the price of oil.

Yesterday, US crude oil rose $2.85 – or 4.3% – to $69 a barrel, its largest daily gain since August 2012. But it’s still down 32% from its 52-week high, set in June.

Outside of the big oil exporting countries and the US shale-oil business this big drop in prices is widely seen as good news. Continue reading

US Debt Reaches $18 Trillion; Surges 70% In ‘Recovery’ of President Obama

Submitted by Mark O’Byrne  –  Founding Partner of  GoldCore

Total U.S. national debt hit a new record high overnight at over $18 trillion as the Obama administration continues to pile debt onto the back of the U.S. taxpayer at a rate that would have made George W. Bush look positively prudent.


US national debt limit vs gold

With the U.S. national debt or government debt now at over a staggering $18 trillion, it means that each household in the U.S. now carries the burden of $124,000 in national debt alone – or $56,378 per individual. This does not include the massive private debt or household debt burden – people’s  mortgages, personal loans, credit card debt, student loans, car loans and other household debt.

When Obama took office in 2009, the national debt had surged to $10.6 trillion up from $3 trillion at the beginning of Bush’s tenure in 2001.
The total U.S. debt has increased by 70% under Obama, from $10.625 trillion on January 21, 2009 to over $18.005 trillion today

In short, the federal government has borrowed, and spent, nearly $7.5 trillion more since President Obama took office than it has collected in taxes.

Obama’s policies have continued to favour Wall Street and corporate interests over Main Street. Continue reading

US resorts to Illegality To Protect Failed Policies

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Paul Craig Roberts & Dave Kranzler

In a blatant and massive market intervention, the price of gold was smashed on Friday. Right after the Comex opened on Friday morning 7,008 paper gold contracts representing 20 tonnes of gold were dumped in the New York Comex futures market at 8:50 a.m. EST. At 12:35 a.m. EST 10,324 contracts representing 30 tonnes of gold were dropped on the Comex futures market:

Screen shot 2014-12-01 at 3.15.28 PM

No relevant news or events occurred that would have triggered this sudden sell-off in gold. Furthermore, none of the other markets experienced any unusual movement (stocks, bonds, currencies).

The intervention in the gold market occurred on the Friday after the U.S. had observed its Thanksgiving Day holiday. It is one of the lowest volume trading days of the year on the Comex. Continue reading

Ferguson

Submitted by James Howard Kunstler  –  www.kunstler.com

The climactic uproar in Ferguson, Mo., a week ago took a zany turn when the “we want peace” message of Michael Brown’s family rotated 180 degrees to the imperative command, “burn this bitch down,” hollered repeatedly by stepfather Louis Head outside the grand jury headquarters as the decision was announced. The assembled crowd dutifully obliged and burned down many of the businesses that the local population depends on for routine commerce.

The scripted quality of these events seemed as formally predictable as an 1856 minstrel show, and the parallel is worth reflecting on because the nation appears determined to explode again in some kind of a civil war — bearing in mind Karl Marx’s advisory that “history repeats, first as tragedy, then farce.” As is the case with many show-biz extravaganza’s of our time the script had many authors. Continue reading