QUOTES OF THE DAY

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Posted on 25th February 2015 by Administrator in Economy |Politics |Social Issues

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“I swore never to be silent whenever and wherever human beings endure suffering and humiliation. We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented…There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest…Because I remember, I have the duty to reject despair.”

Elie Wiesel (and never retreat into hate, so that we become what we hate)
“He did not care for the lying at first. He hated it. Then later he had come to like it. It was part of being an insider, but it was a very corrupting business.”

Ernest Hemingway, For Whom the Bell Tolls
“I cannot believe it, they are going to do it all over again. All the fraudulent securities, the wanton bubbles in paper, the watered stocks, the wildly overvalued IPOs, the lies and double dealing, the financial deception, the mispriced risks, the abuse of language, the widespread corruption of public policy, and then the inevitable, sickening crunch. Never have so many sacrificed so much, for such an underserving, careless few.”

Jesse


RECOVERY SELFIE

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Posted on 21st February 2015 by Administrator in Economy |Politics |Social Issues

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“We are now in the sixth year of The Recovery™.

There really is no recovery for most people, with over half of all public school students in the US now living at the poverty level. One of the great obstacles to the recovery is that the financial elite in the US has absolutely no rational idea of the depths of the problems and issues with which they are dealing. And at the end of the day, they do not care.

They are taking selfies in the mouth of the abyss.”

Via Jesse


Taibbi: A Whistleblower’s Horror Story – Infàmia e Disgrazia

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Posted on 18th February 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

“Crush humanity out of shape once more, under similar hammers, and it will twist itself into the same tortured forms. Sow the same seed of rapacious license and oppression over again, and it will surely yield the same fruit according to its kind.”

Charles Dickens, A Tale of Two Cities

“Flagrant evils cure themselves by being flagrant.”

John Henry Newman

If a whistleblower reveals benign ‘secrets’ of government actions to a domestic reporter in the time honored tradition, they may be prosecuted as ‘enemies of the state’ under the abusive misuse of the Espionage Act.

And if they tell the truth about a massive fraud involving one of the privileged financial institutions, they may find themselves involved in a cruel farce of officially sanctioned retribution in the judicial system.

This story is almost incredible, of how an appellate judge overturned the verdict of a jury of this man’s peers, and then another Court turned this man over to officially sanctioned retribution, on an almost absurd rationale, for daring to tell truth to power about Countrywide Financial.

Deceit and theft by the privileged is excused and protected, while honesty and innocence are severely punished. And the great mass of official journalists are silent, so we hear the news about this in a rock ‘n roll magazine.

Rolling Stone
A Whistleblower’s Horror Story
By Matt Taibbi
18 February 2015

Two years ago this month, Winston was being celebrated in the news as a hero. He’d blown the whistle on Countrywide Financial, the bent mortgage lender that one could plausibly argue nearly blew up the global economy in the last decade with its reckless subprime lending practices.

He described Countrywide’s crazy plan to give anyone who could breathe a mortgage in a memorable January, 2013 episode of Frontline called “The Untouchables,” a show that caught the eyes of several influential politicians in Washington. The documentary inspired Senate hearings and even the crafting of new legislation to combat too-big-to-jail corruption in the financial world.

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REVERSE SISYPHUS

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Posted on 17th February 2015 by Administrator in Economy |Politics |Social Issues

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“In Greek mythology Sisyphus (Greek: Σίσυφος) was the king of Ephyra. He was punished by the gods for his chronic deceitfulness by being compelled to roll an immense boulder up a steep hill, only to watch it roll back down, over and over again.”

In the modern mythology of bizarre economics, austerity can be described as ‘the Reverse Sisyphus.’

The victims of systemic bank fraud and widespread cheating and manipulation of markets and laws are forced to pay the price, in an endless cycle of booms and busts, for the deceitfulness and injustice of the powerful financial interests and their privileged friends.


QUOTE OF THE DAY

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Posted on 14th February 2015 by Administrator in Economy |Politics |Social Issues

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“This is a hot money bubble. The Wall Street wiseguys had the opportunity for a new high and they have taken it, consequences be damned. The political animals will look the other way, as long as the campaign handouts keep coming, and justice is especially blind given the right career incentives.

The strong dollar may be painful for the real economy, but the benefit is that it attracts foreign investment in paper, and gives the Banks and the hedge funds the ability to buy up assets on the cheap. It increased the consolidation in commercial business, especially in the healthcare field which is ripe for the plucking.

It helps to inflate dollar denominated financial assets. It is a boon to Wall Street.

The Fed does not have to tighten interest rates to put some reins on this. They have always had the discretion to raise margin requirements and a variety of other tools as the primary bank regulator for which they volunteered after the last crisis in which they were instrumental.

The Fed and the regulators and Wall Street are wholly responsible for this. We are caught in a boom and bust cycle thanks to the distortions from an oversized financial sector and a corrupt political system and the acquiescence of the media and the professional classes.

It will end badly. Make no mistake. When it does, everyone will be amazed because ‘no one saw it coming.’

Serial policy errors. But it is swelling the net worth of the one percent, and so nothing will be said.

But in the meantime, we’re flying!”

Jesse


Currency Wars

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Posted on 13th February 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

“As a delaying tactic, U.S. foreign exchange operations were often successful. They raised the potential costs of speculation and provided cover for unwanted, temporary, and ultimately reversible dollar flows. They delayed the drain of the U.S. gold stock. But to the extent that these devises substituted for more fundamental and necessary adjustments and postponed the inevitable collapse of Bretton Woods, they were a failure.”

Robert Wenzel, Cleveland Fed Accidentally Links to Paper Highly Critical of US Currency Market Interventions to Support Bretton Woods

When I said, and it already seems so long ago, that we had broken out with a higher high a few weeks ago, I cautioned that the markets had not suddenly become honest and transparent. and so caution was still advised.

And indeed, the breakout was stuffed, by the usual routine of dumping large amount of futures contracts at the market in thin trading hours, often on the open of the NY trading.

This is the currency war. This is the struggle we are seeing for the nations of the world to find a new way of arranging their international trading relationships. This is the fruit of Triffin’s Dilemma, which suggests that at some point if a single country manages the world’s reserve currency, eventually they will come to an impasse between their domestic interests and the interests of the rest of the world.

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QUOTE OF THE DAY

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Posted on 11th February 2015 by Administrator in Economy |Politics |Social Issues

“There is a vision to remake the world’s economy according to the neo-liberal agenda, and to rule it with an ‘iron rod’ wielded by the US. It would be under the control, described as benevolent guidance, of an oligarchy of the self-proclaimed wisest and most powerful of the multinational elite. The key goal now is to subdue any effective competition, and to gain the full cooperation of the other major powers. They are testing their model of a confederation of nations under central control in Europe.”

Jesse

INSIDERS FLEEING BECAUSE EVERYTHING IS SO F#$KING AWESOME

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Posted on 8th February 2015 by Administrator in Economy |Politics |Social Issues

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Stocks are currently valued on a PE basis and Price to Cash Flow basis at higher levels than the 2000 and 2007 peaks. The losses exceeded 50% after those peaks. Someone should tell all the corporate executives that are selling their own stocks as if there is no tomorrow that everything is awesome. Obama and the MSM tell me so. These corporate executives are using shareholder cash to buy back their stock at all-time high prices, while at the same time they are selling their own stock. This is called integrity and high ethical standards in the world we live in. So it goes.

Guest Post by Jesse

US Equities: Rich Valuations, Insiders Selling

Maybe stocks are rather fully valued in expectations of The Recovery™.

Happy days are here again.

For some.

Central Banker’s Joke

Q. How many monetary policy errors does it take to destroy the world’s greatest middle class?

A. How many do you need?


SCARED SHITLESS

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Posted on 28th January 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

I see where the Chinese RMB has broken into the top five of world currencies for payments.

There seems to be a vacuum in the world economy. And it is probably being created by the black holes of economic policy and monetary thought that are centered in Washington, New York, Berlin, Tokyo, and London.

Speaking of lukewarm, ambiguous shit, here is the ‘money shot’ from the Fed statement today:

“This assessment will take into account:

  1. a wide range of information, including measures of labor market conditions,
  2. indicators of inflation pressures and inflation expectations, and
  3. readings on financial and international developments.”

The individual reactions to the statement depended on which one of these three measures you chose to focus.

If it was number 1, the report seemed hawkish, because earlier the Fed referred to ‘labor market conditions have improved further, with strong job gains and a lower unemployment rate.’ Between that and rosy expectations for GDP, and some see the Fed moving as early as June.

If it was number 2, the statement was dovish. Inflation is hardly an issue, with disinflation and downright deflation being more of an issue. And certainly the dollar needs no help from interest rates.

And if it was number 3, you joined the mad rush into Treasuries, taking the 30 Year down to a record low. It holds out the fear/hope of international troubles with the dollar being waved as a safe haven.

By the end of the day it was the fear trade that prevailed in stocks and bonds.

And you might wonder that gold did not participate in the safe haven move. And unless you have been listening to what I have been saying here, you will not understand it. The Western central banks are loathe to allow gold and silver to run free, because it would hamper their fiat financial engineering.

That they will collapse on their own is probably a good bet. But they are more than willing to expend their energies on hiding their mistakes, rather than fixing the real problems.

No wonder the vast portion of the world that is not an ‘attendant nation’ to the New American Century is recoiling in disgust from the antics that the Fed and its Banks have been playing with the dollar.

In summary, to paraphrase Samuel Johnson, ‘The Fed is an ass.’

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QUOTES OF THE DAY

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Posted on 25th January 2015 by Administrator in Economy |Politics |Social Issues

“One of the privileges of the great is to witness catastrophes from a terrace.”

Jean Giraudoux

“There is a vision to remake the world’s economy according to the neo-liberal agenda, and to rule it with an ‘iron rod’ wielded by the US. It would be under the control, described as benevolent guidance, of an oligarchy of the self-proclaimed wisest and most powerful of the multinational elite. The key goal now is to subdue Russia and the Mideast, and to gain the full cooperation of China. They are attempting to implement their model of a confederation under central control in Europe.”

Jesse