- Do you think Bernanke is stupid? He knows QE does not work. The logical end to massive amounts of money printing is hyper-inflation and monetary collapse. What the PTB are feeding the sheeple are fraudulent economic statistics and the meme that Wall Street is doing well, so economy is ok, since Wall Street is an indicator of economic health. This is BS!
- Bernanke says there is no inflation. Right, pigs can fly! Unless you don’t eat and drive (and dead), no inflation exists. Even cotton prices are going ballistic. The snakes control the propaganda MSM and create diversions, for eg: ‘terrorism’, TSA naked body scanners, molestation… The snakes ship young men in their prime to be slaughtered in fraudulent foreign wars. The more protests and opposition by the sheeple, the greater the ‘terrorism’, ‘they are all out to kill you’, ‘sign up for wars to fight for liberty’…. propaganda and diversionary tactics.
- What is the hidden agenda? A global currency crisis leading to the destruction of all major fiat currencies and paving the way for a New Monetary World Order, One World Currency, Global Supra-National Central Bank and New Luciferian World Order. Subtlety and deception people!
Bernanke Seeks New “International Monetary System”, Accuses China of Currency Intervention, Warns of Rising Unemployment and “End of Tepid US Recovery
In speeches before a European Central Bank conference in Frankfurt, Ben Bernanke went on an unprecedented attack, accusing China of throwing a monkey wrench into the global recovery, blaming China for slow global growth and a potential “End to the Tepid U.S. Recovery”.
He also said “The current international monetary has a structural flaw” calling on the “global community, over time, to devise an international monetary system that more consistently aligns the interests of individual countries with the interests of the global economy as a whole.”
Finally, he put up a misguided defense of Quantitative Easing that is sure to not go over well in the global community. If Bernanke was trying to spook the markets, provoke China, cause a currency war, and get Congress to launch an extremely foolish set of tariffs, he would have been hard pressed to deliver a more powerful speech.
Rebalancing the Global Recovery
The text of one speech in Frankfort is on the Federal Reserve Website Emerging from the Crisis: Where Do We Stand? It’s not worth a read as it contains none of the above fireworks. His speech Rebalancing the Global Recovery is the one to read. Here are a few snips.
Improving the International System
The current international monetary system is not working as well as it should. Currency undervaluation by surplus countries is inhibiting needed international adjustment and creating spillover effects that would not exist if exchange rates better reflected market fundamentals.
As currently constituted, the international monetary system has a structural flaw: It lacks a mechanism, market based or otherwise, to induce needed adjustments by surplus countries, which can result in persistent imbalances. This problem is not new. For example, in the somewhat different context of the gold standard in the period prior to the Great Depression, the United States and France ran large current account surpluses, accompanied by large inflows of gold. However, in defiance of the so-called rules of the game of the international gold standard, neither country allowed the higher gold reserves to feed through to their domestic money supplies and price levels, with the result that the real exchange rate in each country remained persistently undervalued. These policies created deflationary pressures in deficit countries that were losing gold, which helped bring on the Great Depression.3 The gold standard was meant to ensure economic and financial stability, but failures of international coordination undermined these very goals. Although the parallels are certainly far from perfect, and I am certainly not predicting a new Depression, some of the lessons from that grim period are applicable today.4 In particular, for large, systemically important countries with persistent current account surpluses, the pursuit of export-led growth cannot ultimately succeed if the implications of that strategy for global growth and stability are not taken into account.
Thus, it would be desirable for the global community, over time, to devise an international monetary system that more consistently aligns the interests of individual countries with the interests of the global economy as a whole. In particular, such a system would provide more effective checks on the tendency for countries to run large and persistent external imbalances, whether surpluses or deficits. Changes to accomplish these goals will take considerable time, effort, and coordination to implement. In the meantime, without such a system in place, the countries of the world must recognize their collective responsibility for bringing about the rebalancing required to preserve global economic stability and prosperity. I hope that policymakers in all countries can work together cooperatively to achieve a stronger, more sustainable, and more balanced global economy.
Preaching to the World
Bernanke is a man who could not find his ass with both hands and a roadmap when it comes to spotting the housing bubble, the recession, and levels of unemployment, yet he preaches to the world as if he has all the answers.
He is so hellbent on preventing deflation that he cannot see anything else. It would help if he even understood what it was. It sure would help if he could understand that rising prices without rising wages will crucify the average citizen. But he is a blind, stubborn, academic wonk with no real world experience or common sense. I would love to debate him any day of the week.
The one thing I agree with Bernanke on is in regards to the term Quantitative Easing. We should simply call “Printing Money” or “Monetizing the National Debt”. The former has the advantage in that most of the population would have a chance at understanding the term.
In regards to China, it bears repeating that what China is doing is no more manipulative that what the Fed is doing. In fact, a good case could be made that China’s buildup of excess reserves has its origins in the housing bubble the Greenspan and Bernanke Fed blew.
His defense of 2% inflation targeting is beyond idiotic. The last thing 14 million unemployed people need is rising prices.
The other thing I agree with Bernanke on is the need for a “new” monetary system. The thing is, what’s needed is not entirely new. We need a gold standard and the end of fractional reserve banking.
In his speech, Bernanke blamed gold for causing the great depression. Nothing could be further than the truth. It was a runup in excessive credit accompanied by micromanagement of interest rates by the Fed that kicked off the Great Depression.
- What is really happening is the conquest of countries by Illuminist banksters. All the ‘news’ about how the privately owned central banks are trying to help the countries and provide bailout money is propaganda. This is conquest via fraudulent finance. You cannot solve a debt problem with more debts ie bailouts. National sovereignties are being dismantled and the countries are made debt slaves to Luciferian banksters. (See: Van Rompuy Declares National Sovereignty Dead ) The privately owned Illuminist central bank cartel creates money out of thin air and lends it to governments with interest. It is legalized counterfeiting!
- Ask yourself this: why should citizens be made to pay for the mistakes of these banks. These bailouts are about bailing out British, German and French banks which loan money to banks in the PIIGS! This is not about helping the PIIGS’ citizens. This is about getting the sheeple to pay the debts (owed by banksters) to the Illuminist banksters. Let the banks go bankrupt! As for the banksters/bond holders who made the mistake of lending the money, they have to bear the consequences. Do you really believe that the Illuminist banksters, with their multi million/billion dollar bonuses will starve in the streets? It is all a SCAM !!!!
European Central Bank tightens screw on Ireland, Portugal and Spain
The European Central Bank (ECB) has issued a clear warning that it will press ahead with plans to raise interest rates and withdraw lending support for banks despite the eurozone debt crisis, even if this risks pushing Ireland, Portugal and Spain into deeper trouble.
“The central bank must guard against the danger that the necessary measures in a crisis period evolve into a dependency as conditions normalise,” said Jean-Claude Trichet, the ECB’s president.
Luxembourg’s ECB governor, Yves Mersch, echoed the warnings, saying the bank could not continue “cleaning up” in crises. “If rates are low for too long, this leads to a higher risk appetite. We will pay the price if we fail to confront these inevitable dangers,” he said.
More than 98pc of Spanish mortgages are priced off the floating Euribor rate. Any ECB rate rise would be devastating given that there is already a glut of 1.5m homes coming on to the market, according to consultants RR de Acuna.
The ECB warnings came as a troika of officials from the ECB, the Commission, and the International Monetary Fund began a fact-finding mission in Dublin, examining books to determine whether Ireland is strong enough prop up its banking system. Finance minister Brian Lenihan admitted that Dublin was considering “substantial contingency capital” to boost banks, but denied that this would burden the Irish state.
Dublin insists that there is no threat to Ireland’s 12.5pc corporation tax rate but Mary Lou McDonald from Sinn Féin said the country was essentially under foreign occupation. “Officials from the EU and IMF and any other vultures circling around this country should be told to get lost.”
Central bank governor Patrick Honohan said a rescue would amount to “tens of billions”. The Irish state is funded until June but this is proving no defence against a run on the banking system.
The euro recovered against the dollar and Europe’s bourses rallied on hopes that the Irish crisis has been contained, but Fitch Ratings said there was still “considerable uncertainty” about the fate of Irish bank debt and bondholder losses. Credit default swaps on Irish, Greek, Portuguese and Spanish debt continued to hover at high levels yesterday amid confusion over the contagion risk.
- The municipal bond market is imploding! Who in their right mind will lend money to municipal with no hope of getting repaid?
The Fear Factor in the Muni Bond Market
Is the great municipal bond apocalypse finally upon us? The panicky-looking dip in municipal bond demand this week makes it look imminent. According to Reuters data, cities and states canceled $3 billion in planned bond sales, or more than 10 percent of the $24.4 billion of issues in the pipeline.
At the same time, prices have been falling rapidly, with investors demanding roughly half a percentage point more in yield than they did earlier this month because they perceive that risk has risen significantly in the past two weeks.
Add to this that municipal bond funds have shown themselves averse to pouring more money into the bonds, and it is no wonder at all that many traders are wondering whether the bottom is finally falling out from the municipal market. Municipal bonds, after all, represent the relative health of America’s cities and states, and in these recessionary times there are fair concerns about whether all can meet their obligations — particularly strapped California.
And add to all of this that Chris Whalen, the founder of Institutional Risk Analytics, predicted that California would default on its debt, as would many other cities and states — and no bailouts would be forthcoming. It may not be the end, however — yet. According to Chris Mauro, director of municipal research for RBC Capital Markets, municipal bonds are not crashing right now.
What municipal bonds always had going for them were low default rates and solid credits. A study by Fitch Ratings once pegged the long-term default rate for the bonds as 0.25 percent. Because cities and states rarely defaulted on their debt, municipal bonds won a reputation as a safe haven for investors even in recessions. That much has not changed — somewhat incredibly, considering that the financial crisis has struck so deep and that the municipal bond market is so large (Roubini Global Economics estimates its size at $2.7 trillion).
Mr. Mauro argues instead that municipal bonds are being buffeted by what analysts call technical issues: a big imbalance between supply (and lots of it) and demand (currently not so hot).
“I don’t deny there are some significant issues relating to the health of state and local governments,” Mr. Mauro said. But right now, he said, “the fiscal problems at the state and local level won’t be apparent to everyone until we see what next year’s budget proposals have in store.”
- Pay attention to 3:10 onwards !!
- The Illuminist banksters are caught in their naked shorting of silver. Let us make them pay a trillion dollars for their fraud and crime. Because they have held down the price of silver to a ridiculously low-level, major shortages are appearing worldwide. Make show you have physical gold/silver because they are real money.
Widespread Silver Bar Shortages
18 November – As of today, there are no longer any regular wholesale supplies of the 1 ounce through 100 ounce silver rounds and bars available for immediate delivery. It may be possible to locate incidental quantities of some product, but most wholesalers are now promising two to four weeks delivery to allow time for the silver to be fabricated.
As a result of the shortages, premiums have started to rise. So far, the increases have been modest, on the order of 0.5-2%. However, if the shortage grows, expect to see further and larger premium increases in the coming weeks. We could see a repeat of the late 2008 gold and silver buying frenzy, where product availability got as slow as 1-4 months after payment.
At the COMEX close yesterday, registered (dealer) silver inventories fell below 50 million ounces. Even if you include the eligible (investor) silver inventories in the COMEX bonded warehouses, which are not available to fulfill COMEX deliveries unless the investor specifically chooses to do so, there were barely 107 million ounces to fulfill around 725 million ounces of contractual obligations. COMEX silver inventories are now down more than 10% from mid-June even while the amount of silver owed has soared!
As the price of silver almost continuously rose from $17.98 on August 23 to $29.36 mid-day on November 9 (a 63% increase), the COMEX had not changed its minimum requirements for leveraged accounts. It would be a normal process to periodically bump us the minimum amounts for margin accounts as prices rise, but this was not done until November 9, when the margin requirement was increased from $5,000 per contract to $6,500.
On November 16, the COMEX further raised the silver contract margin requirement to $7,250—even though the price of silver had been dropping since November 9! What is suspicious is that a lot of “insiders” were liquidating their silver positions starting the afternoon of November 15. Is it possible that they may have received advance notice of the coming change in the minimum margin account requirement and sold in anticipation of lower prices the next day?
The next round of gold and silver options expiration occurs on Tuesday, November 23. The attempt to suppress gold and silver prices upon the release of the US jobs and unemployment report on November 5 was almost a complete failure. Unless something is done to knock down gold and silver prices before November 23, a lot of call options will be exercised, which would further increase the demand for physical precious metals.
I suspect, as do many others, that the two rounds of increasing gold and silver margin requirements were timed for no other reason other than to try to help hold down prices through November 23.
Don’t be surprised if supplies of other low premium physical silver products, especially US 90% Silver Coin, dry up, with those premiums also starting to rise. If you are looking to acquire some physical silver, I suggest you act sooner rather than later.